Management Information Systems - Andhra Pradesh...Supply Chain Management (SCM) systems Manage firm’s relationships with suppliers Share information about Orders, production, inventory

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Management Information Systems

(MIS)

By

M V S V Kiranmai, Asst.Prof (C) ,

CSE Dept, JNTU Kakinada

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process of achieving an

organization’s goals and

objectives by making use of

resources of men, materials,

machines, money, methods,

messages and moments.

Managemen

t

MIS - M V S V Kiranmai, Asst.Prof (C) , CSE Dept, JNTUK

Data, Information and Systems

Data

A “given thing,” or raw fact

a number, a statement, or a picture

Represents something in the real world

The raw materials in the production of information

Information

Data that have meaning within a context

Data after manipulation

3 MIS - M V S V Kiranmai, Asst.Prof (C) , CSE Dept, JNTUK

System: A set of components that work together to achieve a common goal

Subsystem: A part of a system where the products of more than one system are combined to reach an ultimate goal

Closed system: Stand-alone system that has no contact with other systems

Open system: System that interfaces with other systems

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Data, Information and Systems contd..

MIS - M V S V Kiranmai, Asst.Prof (C) , CSE Dept,

JNTUK

Systems thinking (Synergy):

Creates a framework for problem solving and decision

making.

Keeps managers focused on overall goals and operations of

business.

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Benefits of Human-Computer Synergy

Synergy

- When combined resources produce output that exceeds the

sum of the outputs of the same resources employed separately

Allows human thought to be translated into efficient processing of

large amounts of data


JNTUK

Information Systems

Why Do People Need Information?

Individuals - Entertainment and enlightenment

Businesses - Decision making, problem solving and control

Information system:

Set of interrelated components

Collect, process, store, and distribute information

Support decision making, coordination, and control


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Information

Systems


JNTUK

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Components of an Information System


Data Processing

Four Stages

Input: Data is collected and entered into computer.

Data processing: Data is manipulated into information using

mathematical, statistical, and other tools.

Output: Information is displayed or presented.

Storage: Data and information are maintained for later use.


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1. Enterprise Systems(ES)

Collects data from different divisions of the firm ,firm functions

Stores data in single central data repository for use in firm’s

internal business activities

Resolves problem of fragmented, redundant data sets and

systems

Enable:

Coordination of daily activities

Efficient response to customer orders (production, inventory)

Provide valuable information for improving management

decision making

Types of Information Systems


2. Management Information Systems (MIS)

Combines computer science, management science, operations

research and practical orientation with behavioral issues

Provide answers to routine questions with predefined procedure

for answering them

Typically have little analytic capability

Serve all levels of management

Provide reports on firm’s current performance, based on data

from TPS

Provide answers to routine questions with predefined procedure

for answering them

Typically have little analytic capability

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Technology


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3. Customer Relationship Management systems (CRM)

Provide information to coordinate all of the business processes

that deal with customers in sales, marketing, and service to

optimize revenue, customer satisfaction, and customer retention

Integrate firm’s customer-related processes and consolidate

customer information from multiple communication channels


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4. Supply Chain Management (SCM) systems

Manage firm’s relationships with suppliers

Share information about

Orders, production, inventory levels, delivery of products and

services

Goal:

Right amount of products to destination with least amount of

time and lowest cost


Management Information Systems

(MIS)

MIS provides managers with information and support for effective

decision making, and provides feedback on daily operations

Output, or reports, are usually generated through accumulation of

transaction processing data

Each MIS is an integrated collection of subsystems, which are

typically organized along functional lines within an organization

14 MIS - M V S V Kiranmai, Asst.Prof (C) , CSE Dept,

JNTUK

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AIM of MIS


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Information change in MIS


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Domains of MIS


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Characteristics of Management Information

System

Provides reports with fixed and standard formats (Hard-

copy and soft-copy reports)

Uses internal data stored in the computer system

End users can develop custom reports

Requires formal requests from users


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Management Information Systems for

Competitive Advantage

Provides support to managers as they work to achieve corporate

goals

Enables managers to compare results to established company goals

and identify problem areas and opportunities for improvement


JNTUK

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PORTER’S COMPETITIVE FORCES MODEL


Management Information Systems for Competitive Advantage (Contd…)

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Information systems department:

• Formal organizational unit responsible for information

technology services

• Often headed by Chief Information Officer (CIO)

Other senior positions include

Chief Security Officer (CSO),

Chief Knowledge Officer (CKO),

Chief Privacy Officer (CPO)

• Programmers

• Systems analysts

• Information systems managers

The Information Systems Function in

Business


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• End users

• Representatives of other departments for whom applications are

developed

• Increasing role in system design, development

• IT Governance:

• Strategies and policies for using IT in the organization

• Decision rights

• Accountability

• Organization of information systems function

• Centralized, decentralized, etc.


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Security:

Policies, procedures and technical measures used to prevent

unauthorized access, alteration, theft, or physical damage to

information systems

Systems are vulnerable:

Accessibility of networks

Hardware problems (breakdowns, configuration errors,

damage from improper use or crime)

Software problems (programming errors, installation

errors, unauthorized changes)

Disasters

Use of networks/computers outside of firm’s control

Loss and theft of portable devices


Consideration

s:

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Disaster recovery planning:

Devises plans for restoration of disrupted services

Authentication

Password systems

Tokens

Smart cards

Biometric authentication


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e-Commerce :

Use of the Internet and Web to transact business

digitally enabled transactions

Direct interaction with user

the total amount and quality of information available to all

market participants

Products and services can be customized to individual

preferences


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Types of e-Commerce

• Business-to-Consumer (B2C)

• Business-to-Business (B2B)

• Consumer-to-Consumer (C2C)

• Mobile Commerce (m-Commerce)


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m-Commerce

Represents small fraction of total e-commerce transactions

Revenue has been steadily growing

Services are

Location-based services

Banking and financial services

Wireless advertising and retailing

Games and entertainment


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Business value of improved decision making

Improving hundreds of thousands of “small” decisions adds up to

large annual value for the business

Types of decisions:

Unstructured: Decision maker must provide judgment,

evaluation, and insight to solve problem

Structured: Repetitive and routine; involve definite procedure for

handling so they do not have to be treated each time as new

Semistructured: Only part of problem has clear-cut answer

provided by accepted procedure

Decision Making and Information Systems


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The 4 stages of the decision making process

1. Intelligence

Discovering, identifying, and understanding the problems

occurring in the organization

2. Design

Identifying and exploring solutions to the problem

3. Choice

Choosing among solution alternatives

4. Implementation

Making chosen alternative work and continuing to monitor

how well solution is working


JNTUK

Decision Making and Information Systems (contd..)

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Senior managers:

Make many unstructured decisions

E.g. Should we enter a new market?

Middle managers:

Make more structured decisions but these may include

unstructured components

E.g. Why is order fulfillment report showing decline in XYZ

branch?

Operational managers, rank and file employees

Monitor day to day business performance

Make fairly structured decisions

Use MIS

E.g. Does customer meet criteria for credit?


Decision Making and Information Systems – People aspect

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Automation

MIS- Computer Based Information System

Increases efficiency

Replaces manual tasks


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• can be achieved by using following approaches

1. direct method

2. parallel method

3. modular method

4. phase in method


Implementation of MIS

• Installation and operational

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Direct Approach

• Direct installation of the new system with immediate

discontinuance of the old existing system

• useful when these factors are considered.

1. The new system does no replace the existing system.

2. Old system is regarded absolutely of no value

3. New system is compact and simple.

4. The design of the new system is inexpensive with

more advantages and less risk involved.


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Parallel Approach

• The selected new system is installed and operated

with current system.

• expensive because of duplicating facilities and

personal to maintain both the systems.

• a target date must be fixed when the operations of old

system cease and new one will operate on its own.


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Modular Approach

• “Pilot approach”

• the implementation of a system in the Organization

on a piece-meal basis.

Advantages :

1. The risk of systems failure is localized

2. The major problem can be easily identified and

corrected before further implementation.

3. Operating personal can be trained before system is

installed in a location.


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Phase-in-Implementation

- similar to modular method but it differs because of

segmentation of system, not the organization.

Advantages

1. the rate of changes in a given Organization can be totally

minimized

2. the data processing resource can be acquired gradually

over a period of time.

Disadvantages

1. limited applicability

2. more costs incurred to develop interface with old system.


Some of these reasons for employee resistance may include:

loss of authority or control

loss of status or social standing

lack of faith in their ability to learn new skills

feeling of change overload (too much too soon)

lack of trust in or dislike of managers

loss of job security

loss of family or personal time

feeling that the organization is not entitled to the extra effort


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Impact of MIS on any organization:

improves the performance and productivity of the organization.

helps in the management of marketing, finance, production and

improves the skills of the employees.

helps the employees to monitor the various department functions.

gives the reports regarding progress, achievements and the errors

in the day to day functioning.

used to control the various operations involved in the smooth

functioning of the organization.

helps to improve the discipline of the employees.

helps to regulate the operation which complicates the day to day

functioning.


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Thank You

M V S V Kiranmai,

Asst.Prof (C) , CSE Dept,

JNTU Kakinada

Email: [email protected]

Documents

Management Information Systems - Andhra Pradesh...Supply Chain Management (SCM) systems Manage firm’s relationships with suppliers Share information about Orders, production, inventory