Mis chapter 1 mis

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  • 1. MIS ByDr. Rajgouda Patil, MBA, Ph.D

2. A Business - MISSupplieSales rMaterialCustomerWarehouseProduction AccountsQuality 3. BRINGING THE ORGANIZATION TOGETHER ERP The organization before ERP 4. BRINGING THE ORGANIZATION TOGETHER ERP bringing the organization together 5. HISTORIC DEVELOPMENT 6. HISTORIC DEVELOPMENT 7. MISChapter I Manager Information System 8. I. MANAGEMENT INFORMATION SYSTEMS A. Management: What is management? B. Information: What is information? C. Systems: What are systems? 10 9. MANAGEMENT INFORMATION SYSTEMSA. Management: What is management?Management is group of individuals who does : 1. Planning - Goal setting, Environmental scanning, Forecasting and Data collection 2. Organizing - Staffing, Coordinating, Delegating, Understanding, Procedures/ Policies 3. Leading- Authority, Motivating, Directing ( Delegation of responsibilities ) activating, Supervising, Negotiation and Persuading 4. Controlling - Controlling: Resources- Money (capital), manpower (people), materials, machines, movement (Distribution, flow), and Information. Measuring, Evaluating , Reporting, corrective action and feed back 5. Communicating: Goals/Objectives, standards of desirability. Informing, Persuading, Negotiation, Corrective action, Listening 11 10. MANAGEMENT INFORMATION SYSTEMSB. Information: What is information? A definition: Information is data that has been processed into a form thatis meaningful to the recipient (USER) and is of real or perceived value incurrent or prospective actions or decisions. 1. Data (raw material)- Alpha-numeric and Symbolic : Stored facts, inactive (theyexist), technology based and gathered from various places 2. Processed data :meaningful, perceived value, motivating action, HAS SURPRISEVALUE, HAS NEWS VALUE, Presented facts, active (it enables doing), businessbased (Domain based) and transformed form data 3. Model : entity, attribute and relationship 4. Reduces Uncertainty 5. Reduces Equivocal (ambiguity) 6. Knowledge/Power 7. Send/Receive Messages12 11. MANAGEMENT INFORMATION SYSTEMSC. Systems Concepts: What are systems? physical system is a set of components (subsystems or elementary parts)that operate together to achieve a common objective (or multipleobjective).1. Input-process-output an orderly arrangement of interdependent ideas or constructs (ABSTRACT SYSTEM)2. a set of elements which operate together to accomplish an objective (PHYSICAL SYSTEM) 12. Transforming Data Into Information Data InputsInformation Outputs Query ResponseExternalInternal CaptureDataData Decision Outcome Manipulation Expert-System Advice Storage Transaction Document Provision of Access at User Location ReportOrganization Information System 14Environment 13. DATA, INFORMATION, AND SYSTEMS Generating Information Computer-based ISs take data as raw material, process it,and produce information as output.15 14. MIS Data vs. Information Data A given, or 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 in relationships Data after manipulation Data Analyses: Example: customer survey Reading through data collected from a customer survey with questions in variouscategories would be time-consuming and not very helpful. When manipulated, the surveys may provide useful information.16 15. MIS Information in Context 16. Meaning of MIS1. An organized approach to the study of the information needs of an organizations management at every level in making operational, tactical, and strategic decisions. Its objective is to design and implement procedures, processes, and routines that provide suitably detailed reports in an accurate, consistent, and timely manner.2 .In a management information system, modern, computerized systems continuously gather relevant data, both from inside and outside an organization. This data is then processed, integrated, and stored in a centralized database (or data warehouse) where it is constantly updated and made available to all who have the authority to access it, in a form that suits their purpose. 17. Meaning of MIS3. MIS is the system, which makes available the right information to the: Right Person At Right Place At right time In the right format/form At right cost. 18. Definition of MIS Lucey, defines MIS asa system to covert data from internal and external sources into information to communicate that information in an appropriate form to managers at all levels, in all functions to make timely and effective decisions for planning, directing and controlling the activities for which they are responsible 19. TYPES OF MISThere are as many types (and subtypes) of managementinformation systems as there are business functions. Some of themost popular types of MIS are as follows: --Customer relationship management--Marketing, particularly target marketing efforts, directed atspecific groups of potential customers or selling niche products--Financial management--Strategic plan development--Inventory management systems--Optimal investing strategy creation--Projected sales volume--Projected operating expenses and cost control Other types of MIS systems calculate projected tax revenue forgovernments; statistical evaluations of all types for business,researchers and universities; scientific purposes in alldisciplines; and cost/benefit relationships for decision-makingpurposes. 20. BENEFITS OF MISThe benefits of MIS systems to businesses, governments,scientists, universities, students, nonprofits and all otherentities are diversified. Some examples of the most oftenrealized benefits include the following: --Implementation of Management by Objectives (MBO)techniques: MIS allows all participants, both managementand staff, to view, analyze, and interpret useful data to setgoals and objectives. --Generates competitive advantages: Businesses succeed orfail based on how they face competitive challenges. MIS, ifimplemented properly, provides a wealth of information toallow management to construct effective plans to meet, andbeat, their competition. --Fast reaction to market changes: The victory often goes tothe quick, not necessarily the best. MIS can deliver facts, dataand trends to businesses with lightning speed. Having thisinformation allows companies to react quickly to marketchanges, regardless of the type (positive or negative) ofvolatility. 21. Need, Purpose and Objective of MIS Decision making Problem Solving Controlling Getting competitive edge 22. Contemporary (modern) Approaches to MISContemporary MIS systems involve one or more computers, working in concert, to achieve thestated goals of an organization. The function is always the same, but the desired resultsfluctuate with the specific goals and needs of individual organizations. Since the universallanguage of commerce is numbers, using the incredible speed of computers, MIS systemsachieve their function amazingly well. Technical Approach: It includes mathematical and normative Rely on physical technology and formal capabilities of systems Computer science, management science and operation research contributes significantly. Behavioral Approach: Depends on Developer consider- behavioral aspects political science, psychology,sociology and organizational behavior. Socio-Technical Approach.- it include both technical as well as behavioral approaches.The most important features of contemporary MIS systems involve flexibility and reasonablecost. In the world of business, it matters little what industry you are in, how large or small thecompany may be and how computer savvy the management is. There are MIS systems that areeasy to use, affordably priced and immensely reliable available to all businesses. 23. CLASS 2: CHAPTER I - PART II 24. CLASS 2: CHAPTER I - PART II 1. Characteristics of MIS 2. Information as Strategic resource 3. Use of Information for competitive advantages 4. MIS as an instrument for the Organizational Change 25. CHARACTERISTICS OF MISI. Management-oriented: The basic objective of MIS is to provide information support to the management in theorganization for decision making. So an effective MIS should start its journey from appraisal of management needs,mission and goal of the business organization. It may be individual or collective goals of an organization. The MIS issuch that it serves all the levels of management in an organization i.e. top, middle and lower level.II. Management directed: When MIS is management-oriented, it should be directed by the management because itis the management who tells their needs and requirements more effectively than anybody else. Manager should guidethe MIS professionals not only at the stage of planning but also on development, review and implementation stages sothat effective system should be the end product of the whole exercise in making an effective MIS.III. Integrated: It means a comprehensive or complete view of all the sub systems in the organization of a company.Development of information must be integrated so that all the operational and functional information sub systemsshould be worked together as a single entity. This integration is necessary because it leads to retrieval of moremeaningful and useful information.IV. Common data flows: The integration of different sub systems will lead to a common data flow which will furtherhelp in avoiding duplicity and redundancy in data collection, storage and processing. For example, the customerorders are the basis for many activities in an organization viz. billing, sales for cashing, etc. Data is collected by asystem analyst from its original source only one time. Then he utilizes the data with minimum number of processingprocedures and uses the information for production output documents and reports in small numbers and eliminatesthe undesirable data. This will lead to elimination of duplication that simplify the