MIS Decision Making System

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What is a system?

The systems approach emerged as scientists and philosophers identified commonthemes in the approach to managing and organizing complex systems. Four majorconcepts underlie the systems approach:

Specialization: A system is divided into smaller components allowing morespecialized concentration on each component.

Grouping: To avoid generating greater complexity with increasing specialization, itbecomes necessary to group related disciplines or sub-disciplines.

Coordination: As the components and subcomponents of a system are grouped, it isnecessary to coordinate the interactions among groups.

Emergent properties: Dividing a system into subsystems (groups of component partswithin the system), requires recognizing and understanding the "emergent properties"

of a system; that is, recognizing why the system as a whole is greater than the sum ofits parts. For example, two forest stands may contain the same tree species, but thespatial arrangement and size structure of the individual trees will create differenthabitats for wildlife species. In this case, an emergent property of each stand is thewildlife habitat.

The systems approach considers two basic components: elements and processes.ELEMENTS are measurable things that can be linked together. They are also calledobjects, events, patterns, or structures. PROCESSES change elements from oneform to another. They may also be called activities, relations, or functions. In asystem the elements or processes are grouped in order to reduce the complexity ofthe system for conceptual or applied purposes. Depending on the system's design,groups and the interfaces between groups can be either elements or processes.Because elements or processes are grouped, there is variation within each group.Understanding the nature of this variation is central to the application of systemstheory to problem-solving.


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An Information System (IS) is the system of persons, datarecords and activities that process the data andinformation in a given organization, including manual

processes orautomated processes. Usually the term isused erroneously as a synonym for computer-basedinformation systems, which is only the Informationtechnologies component of an Information System. Thecomputer-based information systems are the field of

study forInformation technologies (IT); however theseshould hardly be treated apart from the biggerInformation System that they are always involved in.
http://en.wikipedia.org/wiki/Systemhttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Processhttp://en.wikipedia.org/wiki/Informationhttp://en.wikipedia.org/wiki/Manualhttp://en.wikipedia.org/wiki/Automatedhttp://en.wikipedia.org/wiki/Information_technologieshttp://en.wikipedia.org/wiki/Information_technologieshttp://en.wikipedia.org/wiki/Information_technologieshttp://en.wikipedia.org/wiki/Information_technologieshttp://en.wikipedia.org/wiki/Information_technologieshttp://en.wikipedia.org/wiki/Information_technologieshttp://en.wikipedia.org/wiki/Automatedhttp://en.wikipedia.org/wiki/Manualhttp://en.wikipedia.org/wiki/Informationhttp://en.wikipedia.org/wiki/Processhttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/System


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Management Information Systems (MIS), sometimes referred to asInformation Management and Systems, is the discipline covering theapplication of people, technologies, and procedures collectively calledinformation systems to solving business problems. ManagementInformation Systems are distinct from regular information systems in that

they are used to analyze other information systems applied in operationalactivities in the organization.[1] Academically, the term is commonly used torefer to the group of information management methods tied to theautomation or support of human decision making, e.g. Decision SupportSystems, Expert systems, and Executive information systems.

Definition

'MIS' is a planned system of collecting, storing and disseminating data in theform of information needed to carry out the functions of management.

The terms MIS and information system are often confused. Informationsystems include systems that are not intended for decision making. MIS issometimes referred to, in a restrictive sense, as information technologymanagement. That area of study should not be confused with computerscience. IT service management is a practitioner-focused discipline. MIS

has also some

differences with Enterprise Resource Planning (ERP) asERP incorporates elements that are not necessarily focused on decisionsupport.

Professor Alan Lee states that "...research in the information systems fieldexamines more than just the technological system, or just the social system,or even the two side by side; in addition, it investigates the phenomena thatemerge when the two interact."
http://en.wikipedia.org/wiki/Information_systemshttp://en.wikipedia.org/wiki/Management_information_systemshttp://en.wikipedia.org/wiki/Decision_Support_Systemhttp://en.wikipedia.org/wiki/Decision_Support_Systemhttp://en.wikipedia.org/wiki/Expert_systemhttp://en.wikipedia.org/wiki/Executive_information_systemhttp://en.wikipedia.org/wiki/Information_systemhttp://en.wikipedia.org/wiki/Information_technology_managementhttp://en.wikipedia.org/wiki/Information_technology_managementhttp://en.wikipedia.org/wiki/Computer_sciencehttp://en.wikipedia.org/wiki/Computer_sciencehttp://en.wikipedia.org/wiki/IT_service_managementhttp://en.wikipedia.org/wiki/Enterprise_Resource_Planninghttp://en.wikipedia.org/wiki/Enterprise_Resource_Planninghttp://en.wikipedia.org/wiki/IT_service_managementhttp://en.wikipedia.org/wiki/Computer_sciencehttp://en.wikipedia.org/wiki/Computer_sciencehttp://en.wikipedia.org/wiki/Information_technology_managementhttp://en.wikipedia.org/wiki/Information_technology_managementhttp://en.wikipedia.org/wiki/Information_systemhttp://en.wikipedia.org/wiki/Executive_information_systemhttp://en.wikipedia.org/wiki/Expert_systemhttp://en.wikipedia.org/wiki/Decision_Support_Systemhttp://en.wikipedia.org/wiki/Decision_Support_Systemhttp://en.wikipedia.org/wiki/Management_information_systemshttp://en.wikipedia.org/wiki/Information_systems


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Users of Information Systems:

Knowledge Workers

The role of individuals in which they use

information in any form as part of their job

function or in the course of performing a

process, whether operational or strategic.Also referred to as information consumer, or

customer. Accountable for work results

created as a result of use of information and

for adhering to any policies governing thesecurity, privacy, and confidentiality of the

information used.


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Information Resource

Management (IRM)

Information Resource Management is the conceptthat information is a major corporate resourceand must be managed using the same basicprinciples used to manage other assets. Thisincludes the effective management and controlof data/information as a shared resource toimprove the availability, accessibility andutilization of data/information within government,

a ministry or a program. Data administration andrecords management are key functions ofinformation resource management.


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Open System

An open system is a state of a system, in which asystem continuously interacts with its environment. Opensystems are those that maintain their state and exhibitthe characteristics of openness previously mentioned.

Open systems contrast with closed systems. Systemsare rarely ever either open or closed but open to someand closed to other influences. [1]. Basic characteristicsof an open system are environment, input, throughputand output. And some control systems with feedback.

The definition of a "system" is often arbitrary; a systemmay be defined as the region of space under study beingcharacterized by a collection of components orelementsrelated in some way.
http://en.wikipedia.org/wiki/Systemhttp://en.wikipedia.org/wiki/Closed_systemhttp://en.wikipedia.org/wiki/Open_system_%28systems_theory%29http://en.wikipedia.org/wiki/Systemhttp://en.wiktionary.org/wiki/elementhttp://en.wiktionary.org/wiki/elementhttp://en.wikipedia.org/wiki/Systemhttp://en.wikipedia.org/wiki/Open_system_%28systems_theory%29http://en.wikipedia.org/wiki/Closed_systemhttp://en.wikipedia.org/wiki/System


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Boundary of a System

A system is composed ofinteracting parts that operate together toachieve some objective or purpose. a system is intended to"absorb" inputs, process them in some way and produce outputs

outputs are defined by goals, objectives or common purposesIn order to understand the relationship between inputs, outputs andprocesses, you need to understand the environment in which all of thisoccurs.The environment represents everything that is important tounderstanding the functioning of the system, but is not part of thesystem.

The environment it is that part of the world that can be ignored in theanalysis except for its interaction with the system. It includes: competition,people, technology, capital, raw materials, data, regulation andopportunities.

Theboundary defines the difference between the environment and the

system; the correct boundary is a function of the problem underconsideration.


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Simons Model for Decision Making

Simmons decision-making model there are four phases

1) Intelligence phase

2) Design phase

3) Choice phase

4) Implementation phase

Initially the problem comes and we are in the intelligence phase thinking of the problem as itcomes and then we try to find out what the solution to the given problem and then we move todesign phase. In the design phase the way and method to solve the problem is thought and weactually try analyze the problem, we try to find the algorithms and the way that can actually solvethe problem and hence we use the genetic algorithm to find the solution to the given problem.After finding the method which is to be applied to the given problem we move to choice phaseand here the actual work of finding the best algorithm come .Here we try to find the best algorithmfrom the given set of algorithm we have the option of choosing the algorithms such as "ACO"algorithm which is called the ant colony optimization algorithm or we have the choice of finding thealgorithm such as Simulated annealing (SA) is a related global optimization technique thattraverses the search space by testing random mutations on an individual solution. A mutation thatincreases fitness is always accepted. A mutation that lowers fitness is accepted probabilistically

based on the difference in fitness and a decreasing temperature parameter. In SA parlance, onespeaks of seeking the lowest energy instead of the maximum fitness. SA can also be used withina standard GA algorithm by starting with a relatively high rate of mutation and decreasing it overtime along a given schedule. After deciding that genetic algorithm is the most suitable algorithmfor the programming we move to the next step which is the implementation phase here the realimplemeation of the slotuin is done we implemet the solution to the given problem by using thegeneteic algorithm according to the given problem.


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Bounded Rationality

We are, to some extent, rational beings in that we will try to logicallyunderstand things and make sensible choices. However, the worldis large and complex, and we do not have the capacity tounderstand everything. We also have a limited time in which tomake decisions. We are also limited by the schemas we have andother decisional limitations. As a result, our decisions are not fully

thought through and we can only be rational within limits such astime and cognitive capability. Herbert Simon indicated that therewere thus two major causes of bounded rationality:

Limitations of the human mind

The structure within which the mind operates

This impacts decision models that assume us to be fully rational. For

example when calculating expected utility, you may be surprised tofind that people do not make the best choices. perfectly rationaldecisions are often not feasible in practice due to the finitecomputational resources available for making them.
http://changingminds.org/explanations/theories/schema.htmhttp://changingminds.org/explanations/theories/schema.htm


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Programmable and Non-

programmable DecisionsDecision processes can either be programmable or non-programmable. Programmabledecision processes can be specified with a set of rules and/or procedures and will have certainpredefined outcomes. For example when a light switch is pressed the outcome is either the lightcomes on or goes off. Other possible outcomes include the light is off and does not come of or ison and does not go off. These are simple programmable processes.

Non-programmable decision processes involve no predefined rules or procedures and situationsthat are always changing. These non-programmable decision processes are qualitative in natureand are hard to specify. The higher up an organisations hierarchy decision processes occur themore non-programmable the decision processes will be encountered.

Programmable decision processes tend to be found within management information systemswhere an algorithm can be written to enable some form of choices to be made. For example acustomer accounts system could be programmed to increase a customers credit limit from thehistory that the computer holds on the customer. A non-programmable decision process in thisexample could be to increase the credit limit because the customer has become the owner of thecompany that has the customer accounts system. This type of decision even though simpleenough (if customer is new boss then increase limit) it would be discarded on the outset ofimplementation as being too obscure to contemplate. It is this unpredictability that is hard toprogram. However, semi-structured decision process can be programmed. These processes canbe found in despatch, production scheduling and forecasting systems for example. The reasonwhy these three can be programmed is that they each use a large database of historical data soas to be able to make decisions such as period 12 sales over the last 10 years have been hightherefore next period 12 sales will also be high. By using complex mathematical models semi-structured decision process systems can be easily built.


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Types of MIS Reports

Product Performance Report - Displays the sales performance for any productfor any selected period. User can drill down to executive-wise and customer-wise sales for the selected product.

Member Performance Report - Displays the sales performance against targetsfor any executive or territory for any selected period. User can drill down to lower territories/executives and downto customer-wise sales for the selected executive.

Customer-wise Sales Report - Displays the sales for various products for theselected customer for any selected period. User can drill down to the details of aspecific order.

Collections Report - Displays the collection performance against targets forany executive or territory for any selected period. User can drill down to lower territories/executives and down tocustomer-wise collections for the selectedexecutive.

Channel Stock Report - Displays the product-wise stock (as entered in the callreport) with the selected channel name closest to the selected date.

Prospect Analysis Report - Analyse the list of prospects for any product, based

on a selected prospect status.

Call Reports - Access any of the earlier call reports of any executive, for a selecteddate.

Expenses Report - Each executive can access the details of conveyanceexpenses for any selected period (as entered in the call report).


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The Need to study MIS1. To control the creation and growth of records Despite decades of using various non-paperstorage media, the amount of paper in our offices continues to escalate. An effective recordsinformation system addresses both creation control (limits the generation of records or copies not

required to operate the business) and records retention (a system for destroying useless recordsor retiring inactive records), thus stabilizing the growth of records in all formats.

2. To reduce operating costs Recordkeeping requires administrative dollars for filing equipment,space in offices, and staffing to maintain an organized filing system (or to search for lost recordswhen there is no organized system).It costs considerably less per linear foot of records to storeinactive records in a Data Records Center versus in the office. [Multiply that by 30% to 50% of therecords in an office that doesn't have a records management program in place], and there is anopportunity to effect some cost savings in space and equipment, and an opportunity to utilize staffmore productively - just by implementing a records management program.

3. To improve efficiency and productivity Time spent searching for missing or misfiled recordsis non-productive. A good records management program (e.g. a document system) can help anyorganization upgrade its recordkeeping systems so that information retrieval is enhanced, withcorresponding improvements in office efficiency and productivity. A well designed and operatedfiling system with an effective index can facilitate retrieval and deliver information to users asquickly as they need it.Moreover, a well managed information system acting as a corporate assetenables organizations to objectively evaluate their use of information and accurately lay out aroadmap for improvements that optimize business returns.

4. To assimilate new records management technologies A good records managementprogram provides an organization with the capability to assimilate new technologies and takeadvantage of their many benefits. Investments in new computer systems whether this is financial,business or otherwise, don't solve filing problems unless current manual recordkeeping orbookkeeping systems are analyzed (and occasionally, overhauled) before automation is applied.

5. To ensure regulatory compliance In terms of recordkeeping requirements, China is a heavilyregulated country. These laws can create major compliance problems for businesses andgovernment agencies since they can be difficult to locate, interpret and apply. The only way anorganization can be reasonably sure that it is in full compliance with laws and regulations is byoperating a good management information system which takes responsibility for regulatorycompliance, while working closely with the local authorities. Failure to comply with laws andregulations could result in severe fines, penalties or other legal consequences.


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6. To minimize litigation risks Business organizations implement managementinformation systems and programs in order to reduce the risks associated with litigationand potential penalties. This can be equally true in Government agencies. For example, aconsistently applied records management program can reduce the liabilities associatedwith document disposal by providing for their systematic, routine disposal in the normalcourse of business.

7. To safeguard vital information Every organization, public or private, needs acomprehensive program for protecting its vital records and information from catastrophe ordisaster, because every organization is vulnerable to loss. Operated as part of a goodmanagement information system, vital records programs preserve the integrity andconfidentiality of the most important records and safeguard the vital information assetsaccording to a "Plan" to protect the records. This is especially the case for financialinformation whereby ERP (Enterprise Resource Planning) systems are being deployed inlarge companies.

8. To support better management decision making In today's business environment, the

manager that has the relevant data first often wins, either by making the decision ahead ofthe competition, or by making a better, more informed decision. A good managementinformation system can help ensure that managers and executives have the informationthey need when they need it.

By implementing an enterprise-wide file organization, including indexing and retrievalcapability, managers can obtain and assemble pertinent information quickly for currentdecisions and future business planning purposes. Likewise, implementing a good ERPsystem to take account of all the business processes both financial and operational willgive an organization more advantages than one who was operating a manual basedsystem.9. To preserve the corporate memory An organization's files, records and financial datacontain its institutional memory, an irreplaceable asset that is often overlooked. Everybusiness day, you create the records, which could become background data for futuremanagement decisions and planning.

10. To foster professionalism in running the business A business office with files,documents and financial data askew, stacked on top of file cabinets and in boxeseverywhere, creates a poor working environment. The perceptions of customers and the

public, and "image" and "morale" of the staff, though hard to quantify in cost-benefit terms,may be among the best reasons to establish a good management information system.


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Just In Time

Just-in-time, pioneered by Taiichi Ohno in Japan at the Toyota carassembly plants in the early 1970s, is a manufacturing organizationphilosophy. JIT cuts waste by supplying parts only when theassembly process requires them. At the heart of JIT lies thekanban, the Japanese word for card. This kanban card is sent to thewarehouse to reorder a standard quantity of parts as and when they

have been used up in the assembly/manufacturing process. JITrequires precision, as the right parts must arrive "just-in-time" at theright position (work station at the assembly line). It is used primarilyforhigh-volume repetitive flow manufacturing processes.Through the arrival of Internet and Supply Chain Planningsoftware, companies have in the mean time extended Just-in-timemanufacturing externally, by demanding from their suppliers todeliver inventory to the factory only when it's needed for assembly,making JIT manufacturing, ordering and delivery processes evenspeedier, more flexible and more efficient. In this way IntegratedSupply Networks (Demand Networks) or Electronic Supply Chainsare being formed.

Documents

MIS Decision Making System