RIFT VALLEY UNIVERSITY

DEPARTMENT OF BUSINESS ADMINISTRATION (MBA)

COURSE: MANAGEMENT INFORMATION SYSTEM

INDIVIDUAL ASSIGNMENT

TITLE: INFORMATION SYSTEM USED IN HOSPITAL INDUSTRY IN ETHIOPIA

NAME:

ID NO: RVUBBGBAMR/0030/15

SUBMITTED TO: - Gosa Lema (Ass. Prof)

MARCH, 2024

BALE ROBE, ETHIOPIA

Contents
RIFT VALLEY UNIVERSITY...................................................................................................................1
1. Introduction.............................................................................................................................................2
1.1 Types of information system used in organization......................................................................3
1.2.1 Executive Support System (ESS)..................................................................................................4
1.2.2 Management Information System (MIS).....................................................................................4
1.2.3 Decision Support System (DSS)...................................................................................................4
1.2.4 Knowledge Management System (KMS).....................................................................................5
1.2.5 Transaction Processing System (TPS)..........................................................................................5
1.2.6 Office Automation System (OAS)................................................................................................6
1.2.7 Management Information System..............................................................................................6
1.3 information system used in Hospital industry in Ethiopia.................................................................7
Conclusion.................................................................................................................................................10
1. Introduction
The implementation of the information system in the development of the business is most
necessary now days. For most business, there are varieties of requirements for information. In
every organization different level of management need different type of information for
development of business. For example, senior management needs information to help with
their business planning. Middle management needs more detailed information to monitor and
control business activity. The employees at lower management need information to help them to
perform their duties.

In this global world information systems are playing important role in any organizations to meet
their strategic goals. For the development of the business it very important to have good
information system in each department of organization such as accounting, finance, marketing
and human resource department to perform business operations. In addition, the technical terms
of information system refers to the interaction between algorithmic process and the technology.
The meaning of the information system is not just the technology used by organization, but also
it refers the way in which organization uses the technology for their business process.

Information system is sets of interrelated component that collect process and store information to
company’s management in decision making. Companies that are using up to date information
system to evaluate internal and external information are gaining advantage over the firm. For
example, a sophisticated information system helps companies to monitor employees, to keep
manager and employee to coordinates activities among divisions. Furthermore good information
system provides the facilities of direct communication between firm and suppliers,
manufacturers, dealers and marketers. Using Information system together, they can create a
valuable chain in organization. An information system enables companies to store, retrieve and
control valuable information. In upcoming years, the use of good information system in
organization will be no longer an option. It will be compulsory in development and success of
business. There are various kind of information are available, which can be implement in
organization for the development of the business. The main kinds of information system use in
businesses are Executive Support System (ESS), Management Information System
(MIS), Decision Support System (DSS), Knowledge Management System (KMS), Transaction
Processing System (TPS) and Office Automation System (OAS). The different level of
management in organization needs different level of information system.
1.1 Types of information system used in organization
A hospital information system (HIS) is an element of health informatics that focuses mainly on
the administrational needs of hospitals. In many implementations, a HIS is a comprehensive,
integrated information system designed to manage all the aspects of a hospital's operation, such
as medical, administrative, financial, and legal issues and the corresponding processing of
services. Hospital information system is also known as hospital management software (HMS)
or hospital management system.

Hospital information systems provide a common source of information about a patient's health
history, and doctors schedule timing. The system has to keep data in a secure place and controls
who can reach the data in certain circumstances. These systems enhance the ability of health care
professionals to coordinate care by providing a patient's health information and visit history at
the place and time that it is needed. Patient's laboratory test information also includes visual
results such as X-ray, which may be reachable by professionals. HIS provide internal and
external communication among health care providers. Portable devices such as smart
phones and tablet computers may be used at the bedside.

Hospital information systems are often composed of one or several software components with
specialty-specific extensions, as well as of a large variety of sub-systems in medical specialties
from a multi-vendor market. Specialized implementations name for example laboratory
information system (LIS), Policy and Procedure Management System, radiology information
system (RIS) or picture archiving and communication system (PACS).[citation needed]

Potential benefits of hospital information systems include:

 Efficient and accurate administration of finance, diet of patient, engineering, and distribution
of medical aid. It helps to view a broad picture of hospital growth
 Improved monitoring of drug usage, and study of effectiveness. This leads to the reduction of
adverse drug interactions while promoting more appropriate pharmaceutical utilization.
 Enhances information integrity, reduces transcription errors, and reduces duplication of
information entries.
1.2.1 Executive Support System (ESS)
The Executive support system helps to senior management to decide business strategic plan and
to make decision based on strategy. ESS helps to gather and analyses the internal and external
information used in businesses. ESS is a like instrumental panel in air craft cockpit which is
showing the status of all the key business activities to senior management team of organization.
ESS typically involves lots of data analysis and modeling tools to help in strategic decision
making. In addition, some ESS provides the analysis tool that predicts a series of performance
outcomes overtime using input data. This type of ESS is useful to executive staff, it provides
possible outcomes and quick reference to statistics and numbers needed for decision-making.
Now days there are software wanders who offer pre design Executives support system packages
suitable to one particular organization. They also provide the facilities to customize the
Executive support system to meet needs of particular organization.

1.2.2 Management Information System (MIS)

A management information system is a system or process that provides the information
necessary to manage organization effectively. MIS is planned system of collecting; processing
and storing Management information system is mainly concern with the internal source of
information in organization. Management information system analyzes data captured from
transaction processing system and creates reports based for decision making. The report generate
by MIS will be used by middle management and operational supervisor. MIS is very useful to
generate reports for example, financial statements, inventory status report, performance report
for routine or non routine processes. It is very important to manage the flow of information in
organization for the future development of the business. The Management information system
helps to big organization to manage the information interchanging between different departments
such as store and distribution center.

1.2.3 Decision Support System (DSS)

Decision Support Systems (DSS) are specifically design to help management for decision
making in situation where there is uncertainty about possible outcomes of those decision. It is
important to implement decision support system in business because it supports business and
organizational decision making activities. The properly designed decision support system is an
interactive software based system intended to help decision maker to compile useful information
from raw data. Decision support system helps to enhance the abilities of decision maker or group
of decision maker to make decision in favor of company’s development. Furthermore, Decision
 support systems are call of computerized information system that supports decision making
activities. The decision support system can be classified in to five different types which are:

1. Communication driven DSS

2. Data driven DSS
3. Document driven DSS
4. Knowledge driven DSS
5. Model driven DSS

The above different types of decision support system are used to make decision based on
different situation. The implementation of Decision support system in business helps to make
effective decision in order to make business development.

1.2.4 Knowledge Management System (KMS)

Knowledge Management system helps businesses to create and share information. This types of

system used in organization where employee creates knowledge and expertise which can then be

shared by other people in organization to create commercial opportunities. The examples of the

knowledge management systems are Firms of Lawyers associated with organization,

Accountants and management consultants Knowledge system generally built around which

allows efficient categorization and distributions of knowledge. Knowledge Management system

enables employee to have ready access of organization’s documents’ based of fact. Now days, it

not an optional to use knowledge management System for an organization whether it is public or

private big or small. Knowledge management system provides aid to organization to creating,

sharing and processing knowledge.

1.2.5 Transaction Processing System (TPS)

Transaction processing system used to process routine transaction efficiently and accurately. One

organization may have more than one transaction processing systems for example billing system

to print invoice for customer, payroll and text calculation system, raw material requirements

calculations system, Stock control system, Transaction processing system helps to manage data
that must be in consistent state. In addition, the daily transaction done by the Transaction

processing system can help to upper level management to make decision for the future business.

For example, by analyzing customer transaction data management can identify the customer’s

purchasing behaviors. TPS also help to maintain relationship with customers based on

transaction. There are many super markets which are using transaction processing system to

maintain their daily transaction.

1.2.6 Office Automation System (OAS)

Office automation systems are systems that help to improve the productivity of employee who
are responsible to process data and information. There are many office automation system exist
in market which can be easily implement in organization to improve the productivity of
employee. The examples of the well know office automation system are Microsoft office,
Microsoft works and more. OAS helps in optimizing or automating existing office procedure.
Most of companies are using office automation system to create data sheet, reports, and
statements. The well known Office automation system used by most of organizations is
Microsoft Package including MS Office, PowerPoint, and Excel.

In nutshell, now days the revolutionary change in the area of information technology has
changed the way of business in each industry. Complete computer based information systems
provides the support to organization to maintain internal and external source of information. In
addition, to overcome cut throat competition to it very important for each organization either to
implement computer based information system or to adopt existing computer based information
system package. The use of information system gives advantage to each level of management in
organization to plan strategy and decision making. The use of Computer based information
system will not be optional anymore in future. It will be compulsory for organization to
implement information system for business development.

1.2.7 Management Information System

Small-business managers and owners rely on an industry-specific management information
system, or MIS, to get current and historical operational performance data, such as sales and
inventories data. Periodically, the MIS can create prescheduled reports, which company
management can use in strategic, tactical and operational planning and operations. For
example, an MIS report may be a pie chart that illustrates product sales volume by territory or
a graph that illustrates the percentage increase or decrease in a product's sales over time.

Small-business managers and owners also rely on the MIS to conduct “what-if” ad hoc
analyses. For example, a manager might use the system to determine the potential effect on
shipping schedules if monthly sales doubled.

1.3 information system used in Hospital industry in Ethiopia

It is common to think of information systems as the means to manage information or data. Yet,
when used in a service like healthcare, the system should be considered as the use of computers
as the means to facilitate the delivery of the service. Healthcare is a business activity consisting
of various types of transactions (procedures). The computerized system is made up of hardware
and software to acquire, store, transmit, analyze and present information. The capability of
information technology is leveraged to facilitate service delivery by relying on the ability of the
computer to:

 provide information as an input when a task is to be performed,

 retain data produced as an outcome of the performance of the task,
 enable automation by transferring information to and from machines,
 provide information on the progress of operations (transactions, tasks) ,
 enable the sharing of data and
 Enhancing and enabling communications.

Therefore, information systems are not just concerned with enabling the recording of
information, but its use encompass the greater function of facilitating the delivery of services at
operations level as well as its use later for strategic management and research .

What information system is used in the hospitality industry?

In the hotel industry PoS is the most common form of information systems used. This system
keeps track of merchandise sales that occur in a hotel restaurant, coffee shop, bar or gift shop.
Front office of a hotel and the housekeeping department also use various versionsIn Information
systems computer systems play a major role to collect datas related to hotel’s business operations
in the hotel industry refer to. Information systems contain all computerized used to gather data
continuously both for use internally and externally. Information technology has influenced in a
tremendous way in human life for last few decades. It also play a crucial role in the hotel industry
as they support management, planning overall operations of the hotels as well as policy making.
Some of the information systems that are commonly used in the hospitality industry include:
 Transaction Processing System: This system involves in business transactions include the
retrieval, modification and collection of transactional data. It also processes data generated
about and by transactions in the hotel. These systems increases labor efficiency as they ensure
that the data collected is accurate and timely. It is mainly used by managers in the hotel
industry.
 The Point of Sale (PoS) System: In the Hospital industry PoS is the most common form of
information systems used. This system keeps track of merchandise sales that occur in a hotel
restaurant, coffee shop, bar or gift shop. Front office of a hotel and the housekeeping
department also uses various versions. These systems incorporate computers, registers and
any peripheral equipment that make be established on a computer network. This system is
important as it keeps track of payroll, labor and sales, as well as generates records which may
be useful for accounting purposes. Security departments of the Hospital industry also have
their own PoS system.
 Management Information Systems For proper management of staff and the facilities these
systems provide information required by the hotel .This system can be used to analyze and
facilitate operational and strategic activities. It is used functionally in areas such as security,
maintenance and financial controls, housekeeping and accounting.
 Property Management Systems (PMS) Coordination of the operational duties of the staff at
the front office, sales and planning, this software application is used. Automation of important
functions such as guest booking, guest information, online reservations, as well as sales and
marketing, property management systems is used.
 Decisions Support Systems Decision-making process is supported by decision support
systems. Based on the operational model of the hotel establishment each hotel creates a
decisions support system.This system is important as it ensures the hotel operations functional
and decisions are made in a timely manner.
 Operations Management Information Systems: Operational systems management
information systems facilitate the day to day running of the business of healthcare. The
administrative and managerial approaches are quite similar in all the systems involved in
healthcare. However in terms of objectives and methods, patient care and wellness services
 follow their own paradigms. In modern patient care practice, clinical care providers includes
doctors, nurses, allied health personnel and other professionals adopt a universally accepted
principles, concepts and methods. Patient care is usually provided in facilities that includes
hospitals, clinics and daycare units. Wellness services are concerned with the general
population who are well. Services are provided at the community (usually by government
agencies) and at service facilities. The operational managerial function is facilitated by a
separate information system. It often called the Enterprise Resource Planning System which
is perhaps a misnomer, because it is not only about resources nor is it confined to planning.
Rather, it concerns itself with all aspects of management. It is designed for a facility (like a
hospital) rather than an enterprise. The planning involved is the planning of operations rather
than strategic.
 Strategic Management Information Systems: Strategic management is concerned with
how to ensure that business survives, continue to improve and possibly expand. It uses
research and strategic tactics. Data accumulated during operations (from the operational
management system database) is analyzed to determine the current status and trends
(achievements vs failures). This is compared with status and trends of similar organizations.
Opportunities arising from new knowledge or technology are appraised and used to make
corrections and plan improvements. This is an area where an analytical database or a data
warehouse would be useful.
Conclusion
There are different types of information Systems used in business organizations. Transaction
processing systems designed to records the daily routine transactions necessary to the conduct of
the business. Office automation systems designed to support office tasks. Process control
systems designed to Monitor and control industrial or physical processes. Management
information system (MIS) basically concerned with converting data from internal sources into
information which is then communicated to managers at all the levels, in all functions to make
timely and effective decisions for planning, directing and controlling the activities for which they
are responsible .Decision support systems designed to help manager in decision making that
needs modeling, formulation, calculating, comparing, selecting the best option or predict the
scenarios .Executive information systems provides senior managers with a system to assist in
taking strategic and tactical decisions . Expert system program designed to emulate human
reasoning . This study attempts to clarify the role of each type of information systems in business
organizations.