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Management Information System
Trends in Business and Management Blurring of industry boundaries Deregulation of industries Faster pace of business Increasing foreign competition Global Business Community An Information Society Increasing complexity of management Interdependence of organization units Improvement in productivity Availability of computers of end users Recognition of information as a resource
Strategic Planning
Top Mgmt.
Mgmt. Control & Tactical Planning
Middle Mgmt.
Operational Planning & Control
Operational Mgmt.
Transaction ProcessingOperational Personnel
Well defined Structured Problems
Dat
a re
quire
men
t
Poorly defined or undefined
Kind of Problems
Unstructured
Management Hierarchy & Information Flow
Strategic Planning Goals, Policies, Guidelines, Objectives
Management Control & Tactical Planning
Acquisition of resources, tactics, Plant location, product Establishment & monitoring of budget.
Operational Planning & Control
Effective & Efficient use of existing facilities & resources
Important Activities in Business Problem Solving
Decision Making Methods of Decision Making
Matrix Pairs of conditions and actions
Decision Tables Section from set of actions conditions in the form of rule.
Flowchart Decision Tree Selection of Path Pseudo Code If-Then form
Some Optimization Techniques for Decision Making System of equation Linear programming Integer programming Dynamic programming Queuing models Inventory models Capital budgeting analysis Break-even analysis
Statistical Techniques
Sampling Probability distributors Regression and correlation analysis Testing of hypothesis
Components of Problem Solving Process
Gather intelligence
about Problem
Develop alternative
Select an alternative
Implement the solution
Monitor situation &
results
Decision Making Process
Choice Selection Process
Problem Solving Process
IS and Problem Solving Stages
Gather intelligence
about Problem
Develop alternative
Select an alternative
Implement the solution
Monitor situation &
results
Existing Information
System (TPS, MIS)
Expert Systems
Engineering Systems
Graphic Systems
Spread Sheet Programs
Statistical Packages
Financial Management
Packages
Project Management
Software
Personal Database
Application
Existing & New
Information System
Information System
An Information System is a set of people, data and procedures that work together to provide useful information.
Vision of Role of IS
Information Technology Vision Strategic Business Vision
BUSINESS VISION
Business Environment
Hardware Software DataData
Communication
Creating new businessopportunities;New ProductsNew Services
Enter New Industry
Improved performance in current industryInformation System
Capability enables Business Vision
Combined knowledge of Business Environment & Information System
Activities in Information System
Input of DataProcessing Procedures
Reports
DocumentDatabase
Sales AnalysisSales historyInventory ReportCustomer History
Sales DetailsPayment DetailsSales ReturnsAdjustments
Customer DataSales DataInventory Data
Information Systems should inform Managers not overwhelm them:
Seven types of Information for Top Managers (imp)
Comfort Information Achievement levels for Performance Measurement
Status Information or Progress Information
Current Problems, Crisis, Opportunities
Warning Information Signals of changes affecting firm
Planning information Description of major developments & programs due to being in future
Internal operation information
Key indicators of organizations & individuals performance
External Intelligence Competion & industry changes: Financial, Political, Economical shifts
Externally distributed information
Information chief executive wishes to review before its release to stockholders, news media etc.
Different Types of IS (studied fr
ERP notes only) Transaction Processing System
Process data about transaction. Management Information System
Provides information for decision support where information requirement can be identified in advance.
Decision Support System Assist managers with unique strategy decisions
that are relatively unstructured.
Different Types of IS
Executive Support System Assists Top-level executives in acquiring & using
information needed to run the organization. Work-group Support System
Assists and supports managers, staff and employees in carrying out day-to-day activities.
Expert System Use of computer programs to store facts & rules
to mimic the decision of human expert.
Benefits of IS (imp)
Gain in Productivity Increase in efficiency of the task. More work completed with same or fewer resources.
Improvement in Effectiveness Doing the right thing. Utilization of resources to produce desirable results of high
quality. Gain in Competitive Advantage
Selecting & implementing strategies that changes the way a firm competes.
Improved performance in comparison of market competitors using chosen criteria (e.g. market share, industry dominance, industry ranking, etc.).
Value Addition by IS (imp)
Facilitates Business Process
in Operations management &
Strategic Planning
Enhance Product characteristics & product delivery
Increasing Process Quality &
Product Quality though
improvement & innovation
QUALITY
PROCESS PRODUCT
Information System Application
ESS TPSES DSS
WGS MS
Information System environment
Information System Application
DATAH/W S/W
Communication
InformationSystem
Human Resources
Mgmt Organization Structure
Customer
Competition SuppliesRegulatory Agencies
Management Information Differ by Level in the Organization
Comfort Information Status Information Warning Information Planning Information Internal Operation Information
External Intelligence Externally Distributed Information
Factual Details Exception Reports Financial Accounting Information
Management Accounting Information
Internally Oriented Information
Proportion of Information Types Needed
Top Management& Executives
Operating &Lower LevelManagers
Common Type of MIS Output
Printed Output Visual Output Graphic Output Secondary Storage Output Microfilm Output Audio Response Output Plotter Output
Problems in Development of MIS Major Problems
Lack of Top Mgmt involvement in planning and Design phase.
Cost & Complexity of using a Database Management System.
Inadequate pre-system planning. Recruiting qualified computer specialists. Inadequate strategy for extending MIS to other
part of the company.
Problems in Development of MIS Moderate Problems
Cost of proposed computed application outweigh their economic benefit.
Integrating the computer with the rest of the company. Availability of computer programs and operating
systems. Employee resistance towards the MIS Planning what job to automate; availability of
instructional material Proposed computer application are too time
consuming to automate Management resistance towards MIS
Problems in Development of MIS Minor Problems
Management acceptance of the computer Role of System Analysts/Designers not clearly
defined. Reliability of computers and related equipment. Management of computer and related equipment.
Guidelines for overcoming problems (try to give opposite statemnts of benefts) Ensure that MIS is truly modified to meet user
objectives, not just self serving interest of MIS staff. MIS staff should insist on the meaningful
involvement by management and corporate management as well.
Ensure that the user involvement in agreed upon before any work on MIS takes place.
Ensure that user both understands and accepts full responsibility & commitment towards the ultimate success of the MIS project.
Guidelines for overcoming problems Ensure that user involvement is active and not
passive, and maintained throughout the development of MIS
Ensure that schedules are realistic and accurately reflect not only the MIS staff ability, but also that of the user to participate in the development of MIS
Ensure that MIS staff understands the importance of observing commitments & maintaining quality.
Guidelines for overcoming problems Ensure that user management is constantly
informed about the MIS projects, that the communication channels are kept open at all the times.
Involve Top Management from an overall standpoint in the planning phase as well as succeeding phases of the MIS project.
Provide adequate pre-system planning that focuses on getting started on MIS project
Get appropriate functional managers & their personnel involved in the detailed aspects of the MIS project
Consideration of IS in Strategic PlanningInformation Systems
Capabilities, Applications, Personnel, Hardware,
Software, Data, Communication
No consideration of Strategic Impact:
IS & Plans are separate
Used to implement Strategic Plans:
Considered after plans are
formulated
Considered in formulation of
Strategic Plans:Considered before formulation of plan
is completed.
IS for Corporate Strategy
Determination of strategies by corporate executives
Need of Information System in identified
IS plan is formulated to assist in implementing the Organization Strategy.
IS for Corporate Strategy: Areas The industry in which the firm now competes
New Product or Service Improved Production economies Improved Delivery capabilities
New Markets the firm can enter Geographic expansion of market Expansion into new market segments
Industries in which the firm can begin competing Offer services & products in industry to which firm has been
supplier Create new industry
The elements with which firm interacts or that influence it Customers, Suppliers, Regulators, Competitors
Integrated Information System System that has module for each
functional subsystem of the enterprise & implement all the management activities within each module.
Integrated IS framework
Model Base
DBMSApplica
-tionSoftware
Private Data
Private Data
Private Data
DBMS
Subsystem Software Modules
Strategic Planning
Management Control
Operation Control
Transaction Control
Major Modules of a Information System Project Feasibility Study
Determines the appropriateness of making a system change Introductory investigation Structured analysis Structures System Design Equipment Selection
Major Modules of a Information System Project … System Implementation:
Provides the user with a fully operational system Training of Personnel Structured Programming & Compiling Structured Walkthroughs & Testing Parallel Operations for checking the new system Final Conversion to new system
Periodic Review: Ensures that the system continues to meet
users needs effectively.
Characteristics of a well designed MIS Acceptability
Relates to approval of MIS by personnel who will use it. To improve acceptability user should participate in the
development of MIS. Design Making ability
Refers to the capability of MIS to produce timely, pertinent information, facilitating the decision making process of organization personnel, at the lowest cost.
Economy Centers on keeping costs low by capturing control
information in the MIS as near to the source as possible.
Characteristics of a well designed MIS Flexibility
Focuses on the capability of MIS to adopt to changing environmental conditions likewise, organization personnel must be prepared to adjust their operations to changing conditions.
Reliability Refers to the consistency of MIS to control operations. A high degree of reliability can be designed into the system
by incorporating good control. Simplicity
Stresses the capability of the MIS to provide a straight-line flow from one operation to the next, thereby avoiding needless backtracking and duplication.
The System Life Cycle
Inception Preliminary Survey
Feasibility Study Existing Procedures Alternative System estimates
System Analysis Details of present procedures
The System Life Cycle
Requirement Analysis User Needs – Collection of Data on volumes,
input/outputs, files, boundary settings Design
Ideal System unconstrained revision to make ideal acceptable
Specifications Processing logic, File Design, Input/Output,
Programming requirement, Manual Procedures
The System Life Cycle
Programming & Testing Unit Tests, Combined Module Tests,
Acceptance Tests
Training, Conversion & Installation Operation Maintenance & Enhancements
Tools for a S/w Project
Data Collection Tools: Observation Interviews Questionnaires Comparisons Seminars Presentations
References
Information Systems for Modern Management – 3ed Robert G Murdic, Joel E Ross, James R Colggett – PHI
Management Information System Gerald V Post, David L Anderson – TMH
Management Information System Mc-Lead
Management Information System Kroonke – Macmillan Publishing
Management Information System Senn
Analysis & design of Information System Senn
Software Engineering – 3ed Pressman