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Management ( &) Information Systems Management essentials & Levels of management Management essentials & Levels of management What do information systems do? What do information systems do? MIS as an evolving concept MIS as an evolving concept MIS and Organizational Fit MIS and Organizational Fit MIS as a Discipline MIS as a Discipline
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Management Information System - MISManagement Information System - MIS
bybyAshish Ukidve Ashish Ukidve
M.E , CSSLP, CISA ( USA)M.E , CSSLP, CISA ( USA)ISO 27001 LAISO 27001 LA
MIS in today’s environmentMIS in today’s environment Today MIS must be seen w.r.t. IT systems as all Today MIS must be seen w.r.t. IT systems as all
business is done thru ITbusiness is done thru IT Data when processed gives InformationData when processed gives Information It is useful for managing data or informationIt is useful for managing data or information For understanding MIS we have to understand For understanding MIS we have to understand
Information Systems and how they are developed or Information Systems and how they are developed or acquiredacquired
Management ( &) Information SystemsManagement ( &) Information Systems
Management essentials & Levels of management Management essentials & Levels of management What do information systems do?What do information systems do?MIS as an evolving conceptMIS as an evolving conceptMIS and Organizational FitMIS and Organizational FitMIS as a DisciplineMIS as a Discipline
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Management: What is management?Management: What is management?PlanningPlanningOrganizingOrganizingLeadingLeadingControllingControlling
Management essentials….Management essentials….
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PlanningPlanning
Goal settingGoal settingEnvironmental scanningEnvironmental scanningForecastingForecastingData collectionData collection
Management essentials….Management essentials….
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OrganizingOrganizingStaffingStaffingCoordinatingCoordinatingDelegatingDelegatingUnderstandingUnderstandingProcedures/ PoliciesProcedures/ Policies
Management essentials….Management essentials….
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Management essentials….Management essentials….
LeadingLeadingAuthorityAuthorityMotivatingMotivatingDirecting: Delegation of responsibilities activatingDirecting: Delegation of responsibilities activatingSupervisingSupervisingNegotiationNegotiationPersuadingPersuadingDue DiligenceDue Diligence
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Management essentials….Management essentials….
Controlling: Resources- Money (capital), Controlling: Resources- Money (capital), manpower (people), materials, machines, manpower (people), materials, machines, movement (Distribution, flow), and Informationmovement (Distribution, flow), and Information
MeasuringMeasuringEvaluatingEvaluatingReportingReportingCorrective actionCorrective actionFeed backFeed back
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Communicating: Goals/Objectives, standards Communicating: Goals/Objectives, standards of desirabilityof desirability
InformingInformingPersuadingPersuadingNegotiationNegotiationCorrective actionCorrective actionListeningListening
Management essentials….Management essentials….
Organisational LevelsOrganisational Levels
Four organizational levelsFour organizational levelsOperational personnelOperational personnelLower managementLower managementMiddle managementMiddle managementTop managementTop management
Responsibilities, decision-making styles, and Responsibilities, decision-making styles, and information system requirements vary information system requirements vary depending on where you are positioneddepending on where you are positioned
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MIS Raw Material- DATAMIS Raw Material- DATA
Information: What is information?Information: What is information? Raw material - DATARaw material - DATA
Stored factsStored factsinactive (they exist)inactive (they exist)technology basedtechnology basedgathered from various placesgathered from various places
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Information: What is information?Information: What is information? Processed data - transformed form dataProcessed data - transformed form data
meaningfulmeaningful Has perceived valueHas perceived value Has Surprise valueHas Surprise value Has news valueHas news value Presented as factsPresented as facts Domain based - business based Domain based - business based ModelModel
entity entity attributeattribute relationshiprelationship
Reduces Uncertainty?Reduces Uncertainty? Provides Competitive EdgeProvides Competitive Edge …………. Adds Value to business operations & decisions. Adds Value to business operations & decisions
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Information: What is information?Information: What is information?
Information is data that has been processed into a Information is data that has been processed into a form that is meaningful to the recipient (USER) form that is meaningful to the recipient (USER) and is of real or perceived value in current or and is of real or perceived value in current or prospective actions or decisions.prospective actions or decisions.
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Transforming Data Into Information
Data InputsData Inputs Information OutputsInformation Outputs
Capture
Manipulation
Storage
Provision of Accessat User Location
ExternalData
InternalData
Information System
Query Response
Decision Outcome
Expert-System Advice
Transaction Document
Report
OrganizationEnvironment
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Systems Concepts Systems Concepts Definition … Definition …
input-process-output an orderly arrangement of interdependent ideas input-process-output an orderly arrangement of interdependent ideas or constructs (ABSTRACT SYSTEM)or constructs (ABSTRACT SYSTEM)
a set of elements which operate together to accomplish an objective a set of elements which operate together to accomplish an objective (PHYSICAL SYSTEM)(PHYSICAL SYSTEM) Network: An Integrated environment for a specific set of tasks Network: An Integrated environment for a specific set of tasks General Model of a System: Input, process and output.General Model of a System: Input, process and output.
The features which define and delineate a system form its The features which define and delineate a system form its boundary. The system is inside the boundary and the boundary. The system is inside the boundary and the environment is outside the boundary.environment is outside the boundary.
a system is composed of subsystemsa system is composed of subsystems The interconnections and interactions between the subsystems are the The interconnections and interactions between the subsystems are the
INTERFACES.INTERFACES.
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SystemSystem
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System: Black Box or General View
System
EnvironmentEnvironment
Inputs Outputs
Constraints
Objectives
.
.
.
.
.
.
.
.
.
.
.
.
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A System and its Subsystems
EnvironmentSystem
Interconnection
Subsystems(components)
Constraints
Inputs Outputs Objectives
System Boundary
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Systems ApproachSystems Approach
Systems Approach:Systems Approach:Identify & establish the objective of the systemIdentify & establish the objective of the systemConsider the totality of its relationships with its Consider the totality of its relationships with its
environmentenvironmentCan not ignore the importance of the Can not ignore the importance of the
environment internal or external environment internal or external
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Systems ApproachSystems Approach
Identify its components and their interactions.Identify its components and their interactions.examples:examples:
Human ResourcesHuman Resources skills inventory systemskills inventory system managerial promotion systemmanagerial promotion system should they be separate or linked?should they be separate or linked?
Brokerage houseBrokerage house central client orcentral client or individual broker systemindividual broker system
TPS that has a very long response timeTPS that has a very long response time
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Systems ApproachSystems ApproachEffectiveness: the extend to which a systems achieves Effectiveness: the extend to which a systems achieves
its objectivesits objectivesEfficiency: consumption of inputs relative to outputsEfficiency: consumption of inputs relative to outputsUsability: the ability of the uses to use the systemUsability: the ability of the uses to use the systemSatisfaction: A subjective measure of "like" or usability Satisfaction: A subjective measure of "like" or usability
or effectiveness or effectiveness
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Systems TypesSystems Types
Deterministic versus probabilisticDeterministic versus probabilisticDeterministic: The interaction between the Deterministic: The interaction between the
parts or subsystems is known for certain;parts or subsystems is known for certain;example: a computer program which performs example: a computer program which performs
exactly to a set of instructionsexactly to a set of instructionsProbabilistic: A system that can be described Probabilistic: A system that can be described
in terms of probable behavior (a certain degree in terms of probable behavior (a certain degree of error);of error);
examples: An inventory system, a five year old examples: An inventory system, a five year old (who does not follow a certain set of instructions).(who does not follow a certain set of instructions).
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SYSTEM INTERDEPENDENCE
BUSINESSBUSINESS StrategyStrategy RulesRules ProceduresProcedures
ORGANIZATION ORGANIZATION INFORMATION SYSTEMINFORMATION SYSTEM
INTERDEPENDENCEINTERDEPENDENCE
SOFTWARSOFTWAREE
HARDWARHARDWAREE
DATABASDATABASEE
TELE-TELE-COMMUNICATIOCOMMUNICATIO
NSNS
Information System ComponentsInformation System ComponentsHardware – Servers, PCs, laptops, routers,
UPS etcSoftware – Application software, system
software etcData – data associated with real life eventsProcedures – logic to process data to
generate informationPeople – to operate procedures either on
computer or manually and also to consume the information generated
Business Information SystemsBusiness Information Systems
Characteristics of business information Characteristics of business information systems - systems - 4 main characteristics affect a business 4 main characteristics affect a business information system’s complexityinformation system’s complexity
Relationships with other systemsRelationships with other systemsBoundariesBoundariesSpecialized business needsSpecialized business needsSize of the companySize of the company
Information System ComponentsInformation System Components
Companies are classified based on their main activities:Production-oriented (industrial) companies that
manufacture & sell goodsService companies that mainly offer information,
services, or sell goods made by othersCombined industrial & service companies
Systems Development Life CycleSystems Development Life Cycle
Systems planningSystems analysisSystems designSystems implementationSystems operation and support
Systems Development Life Cycle…Systems Development Life Cycle… Systems planning
Preliminary investigation report Systems analysis
System requirements document Systems design
System design specification Systems implementation
Complete functioning information system Systems operation and support
Operational information system
Systems PlanningSystems Planning
Purpose – identify problem’s nature/scopeSystems request – begins the process &
describes desired changes/improvementsSystems planning – includes preliminary
investigation or feasibility studyEnd product – preliminary investigation report
Systems AnalysisSystems Analysis
Purpose is to learn exactly how the current system operates
Fact-finding or requirements determination is used to define all functions of the current system
This is done by interviewing people, collecting and studying documents and forms handled in a company
Writing down procedures along with diagrammatic representations
System Development OptionsSystem Development Options
OptionsDevelop a system in-housePurchase a commercial packageOutsource the developmentModify an existing systemStop development
The end product for this phase is the systems requirements document
Systems DesignSystems Design Purpose is to satisfy all documented requirementsPurpose is to satisfy all documented requirements Identify all outputs, inputs, files, manual procedures, & Identify all outputs, inputs, files, manual procedures, &
application programsapplication programs Avoid misunderstanding through manager and user Avoid misunderstanding through manager and user
involvementinvolvement End product is system design specification consisting of End product is system design specification consisting of
Tables designTables design Screen / dialogue boxes designScreen / dialogue boxes design Report / query designReport / query design Validation rules designValidation rules design Processing logic designProcessing logic design Deployment design Deployment design OthersOthers
Systems ImplementationSystems ImplementationConstruct/deliver information system Prepares functioning, documented systemWrite, test, document application programsUser and manager approval obtainedFile conversion / data conversion occursUsers, managers, IS staff trained to operate
and support the systemPost-implementation evaluation performed
Systems operation and supportSystems operation and support
New system supports business operationsNew system supports business operationsMaintenance changes correct errors or meet Maintenance changes correct errors or meet
requirementsrequirementsEnhancements increase system capabilityEnhancements increase system capabilityAfter several years of operation, systems After several years of operation, systems
MAY need extensive changes MAY need extensive changes Systems development life cycle ends with Systems development life cycle ends with
system replacementsystem replacement
Today’s Indian IndustryToday’s Indian Industry
Manufacturing Manufacturing TradingTradingBanking, Finance & InsuranceBanking, Finance & InsuranceServiceServiceAgriculture & agriculture productsAgriculture & agriculture productsGovt Sector – Pure Govt and Govt companiesGovt Sector – Pure Govt and Govt companies
Information System ApplicationsInformation System Applications
Called as Business ApplicationsCalled as Business ApplicationsThey can be stand-alone or integratedThey can be stand-alone or integratedThey can be distributed or centralisedThey can be distributed or centralisedThey can be non-web-based or web-basedThey can be non-web-based or web-basedThey can be text based or GUI basedThey can be text based or GUI basedThey can be custom-built or ready-made as a They can be custom-built or ready-made as a
productproduct
Some Business ApplicationsSome Business ApplicationsFunction oriented applications e.g. Purchase, Function oriented applications e.g. Purchase,
inventory processing, sales & distribution inventory processing, sales & distribution systems, share accounting, banking etcsystems, share accounting, banking etc
Integrated systems such as ERP e.g. SAP, Integrated systems such as ERP e.g. SAP, BaaN, JDE, Oracle FinancialsBaaN, JDE, Oracle Financials
Customer support such as TalismaCustomer support such as TalismaInsurance such as GenesisInsurance such as GenesisCentralised banking such as Finacle, Flexcube Centralised banking such as Finacle, Flexcube
etcetc
What a system does?What a system does? A system captures data – either off-line or on-lineA system captures data – either off-line or on-line This data is stored in a databaseThis data is stored in a database The data is processed either immediately or in batch The data is processed either immediately or in batch
modemode The result of processing may be for final human The result of processing may be for final human
consumption or fed to other applicationconsumption or fed to other application The data from transaction systems (or operations The data from transaction systems (or operations
systems) is uploaded in a batch mode to Data systems) is uploaded in a batch mode to Data Warehouse SystemsWarehouse Systems
DSS are built around Data Warehouse SystemsDSS are built around Data Warehouse Systems
Purchase to Pay CyclePurchase to Pay CycleGet Purchase requisition from depts - systemGet Purchase requisition from depts - systemCollate all requisitions – semi-systemCollate all requisitions – semi-systemCall quotations / tenders - manualCall quotations / tenders - manualEvaluate vendors - manualEvaluate vendors - manualSelect vendor - manualSelect vendor - manualPrepare & place purchase order – systemPrepare & place purchase order – systemDelivery of goods – manualDelivery of goods – manualGRNGRN
Purchase to pay cycle…Purchase to pay cycle…
Quality control – manualQuality control – manualApproval – systemApproval – systemSupplier submits bill/s – systemSupplier submits bill/s – systemApprove bills – systemApprove bills – systemPrepare and pay supplier – semi-systemPrepare and pay supplier – semi-systemClosure of cycleClosure of cycle
Sales & distributionSales & distribution
InquiryInquiry - Customer makes an enquiry about - Customer makes an enquiry about a product / productsa product / products
QuotationQuotation - - A quotation presents the A quotation presents the customer with a legally binding offer for customer with a legally binding offer for delivering a product or providing a service delivering a product or providing a service within certain fixed conditions. This offer is within certain fixed conditions. This offer is legally binding for the company within a legally binding for the company within a specified time period.specified time period.
Sales & distribution…Sales & distribution… Sales OrderSales Order - A Sales Order consists of one or several - A Sales Order consists of one or several
items containing the quantity of the material or service items containing the quantity of the material or service specified for the order. The total quantity can be specified for the order. The total quantity can be subdivided into schedule lines which contain different subdivided into schedule lines which contain different partial quantities and the relevant delivery dates.partial quantities and the relevant delivery dates.
DeliveryDelivery - Sales and distribution document for - Sales and distribution document for processing a delivery of goods. The delivery serves as a processing a delivery of goods. The delivery serves as a basis for : Planning material requirements, Picking, basis for : Planning material requirements, Picking, Creating shipping documents, Creating shipping units, Creating shipping documents, Creating shipping units, Transportation, Billing.Transportation, Billing.
GoodsGoods IssueIssue - A reduction in stock on hand in the - A reduction in stock on hand in the warehouse/stores warehouse/stores
Sales & distribution…Sales & distribution…BillingBilling - Creation of commercial invoice is - Creation of commercial invoice is
done as intermediate document (It is required done as intermediate document (It is required for preparation of Excise Invoice and posting for preparation of Excise Invoice and posting into account). This is to be based on Delivery into account). This is to be based on Delivery document. document.
ExciseExcise InvoiceInvoice - In order to generate an Excise - In order to generate an Excise Invoice number and update excise accounts, Invoice number and update excise accounts, the Excise Invoice will be created with the Excise Invoice will be created with reference to the billing document, by reference to the billing document, by specifying the date and the billing document specifying the date and the billing document number. number.
Payment Card ProcessPayment Card Process
and/or
IssuerAcquirer
Merchant
Cardholderuses card to
buy from
is a member of
is a member of
provides processing services to
issues cards to
may or may not be the same as
Typical system modulesTypical system modules
?? Questions ???? Questions ??