Table of contents Course Overview f()s of mngmnt Levels of management

IT09 L24: MANAGEMENT INFORMATIONSYSTEMS

Viju P PoonthottamAsst. Professor

Dept. of Information TechnologyMES CE Kuttippuram

February 12, 2014

Table of contents Course Overview f()s of mngmnt Levels of management

Table of contents

Table of contents

Course Overview

f()s of mngmnt

Levels of management

Table of contents Course Overview f()s of mngmnt Levels of management

Course Overview

• Information systems

• An overview of computer hardware and software components

• Application of information systems to functional ,Tactical,Strategic area of Management.

• Information systems planning

Table of contents Course Overview f()s of mngmnt Levels of management

MIS

• Any system that helps the manager to achieve his goals orcreate bussiness advantage.

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functions of management

• POLC

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functions of management- POLC

• Planning

• Organizing

• Leading

• Controlling

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Planning

• Deciding what to do

• Evaluating the organisations resources and environment andestablishing a set of organisational goals.

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Organizing

• Art of how to achieve goals

• Organisational structures

• Acquiring and training personnel.

• Establishing communication network.

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Leading

• Directing and motivating employees to achieve theorganisational goals.

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Controlling

• Enables the managers to determine ,if the organisationsperformance is on target.

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Resposibility

• Resposible for adopting to changes in the internal andexternal environmentNew competitorKey manager suddenly quits.

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Managerial Functions

Figure: Managerial Functions

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Managerial Roles

• I I D

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Managerial Roles

• Interpersonal

• Informational

• Decisional

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Interpersonal

• Figurehead Roles - Ceremonial duties

• Leader Role - Hiring , Training , Motivatiing

• Liaison Role - Contact outside the vertical chain.

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Informational

• Managers have formal acees to information from verticallyevery internal staff as well as extensive external information.

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Decisional Role

• Entrepreneurial Role - Constantly looking for a new idea.

• Distrurbance Handler - When internal and external disputeseffect the operations manager should act.

• Resource allocator - Manager determine who will getwhat.(Money,Time ,Manpower)

• Negotiator Rule - Represents the organisation in bargain withotheres

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Managerial Performance

• Ability to distinguish between efficiency and effectiveness

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Managerial Roles

Figure: Managerial Roles

Table of contents Course Overview f()s of mngmnt Levels of management

• Top

• Middle

• First-Line Management

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Top management –Duties

• Organisation’s Senior Executives

• Establishing the goals of the orga.

• Intract with representitives of the external environment likeFinancial Instituton.

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Middle Management –Duties

• Resposible for allocating resources so that the objectives ofthe top management are accomplished.

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First line supervisors –Duties

• First line supervisors are responsible for supervising day to dayoperations .

• They typically supervise functions such as order,stockchecking , manitenance.

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The Activities of the organisation

• Operational

• Tactical

• Strategic Planning

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Activities of an Organisation

Figure: Activities of an organisation

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Operational

• Operations are day to day activities of the firm that involveacquirng and consuming resources , First line supervisors mustidentify, collect and register all transactions that result inacquiring expending these resources.

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Tactical

• They review the operational activities to make sure that theorganisation is meeting its goals and not wasting its resources.

• Managers responsible for control, have to decide how toallocate resources to achieve bussiness objectives

• Data that can be used to predict future trends help managersmake these resource allocation decisions.

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strategic planning.

• Top Managers carries out strategic planning.

• Through managers responsible operational & Tactical decisionmaking , they need to set the organisation’s long range goals.

• Eg:-Whether to introduce a new product ,Built new physicalplant

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A FRAMEWORK FOR INFORMATION SYSTEMS

• OPERATIONAL SYSTEMS

• Tactical systems

• Strategic Planning Systems

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OPERATIONAL SYSTEMS

characteristics.

• Repetitiveness.

• Predictability.

• Emphasis on the past

• Detailed nature.

• Internal origin

• Structured form

• Great accuracy

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Tactical systems

• tactical system provide middle level managers with theinformation they need to monitor and control operations andto allocate their resources effectivly

• summary reports

• exception report

• ad hoc reports - need quickly,that may never be needed again

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Tactical systems - charactristics.

• Periodic nature

• Unexpected findings

• Comparative nature

• Summary form

• Both internal and external sources

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Strategic Planning Systems

• Ad hoc basis

• Unexpected information

• Predictive nature

• Summary form

• External data

• Unstructured format

• Subjectivity.

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SYSTEM CONCEPTS

• A system is an integrated set of components,or entities,thatinteract to achieve a particular function or goal

• System have characteristics such as boundaries,outputs andinputs,methds of converting inputs to outputs ,and systeminterfaces

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• System Boundaries:

• System and Subsystem

• Outputs and Inputs

• Subsystem Interface and Inetrface Problems:

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SYSTEMS AND THEIR ENVRONMENT

• Open System

• Closed System

•

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Open System

• Open systems operate in an external environment andexchange informatons and material with that environment

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Closed System

• Self contained

• Does not exchange information with its environment

• No feedback

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System Feedback

• Feedback is an indicator of current performance rates whencompared to a set of standards.

• Positive Feedback

• Negative Feedback

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System Feedback

Figure: Activities of an organisation

Table of contents Course Overview f()s of mngmnt Levels of management

System Entropy

• System entropy corresponds to a state that occures withoutmaintenance

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System Stress and Change

• Systems may change over time , Changes may create Stress.

• Eg.

• Increase Sales

• Reduce Cost

• Unmonitered Input.

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Deal with Stress

• Training

• Change Subsystem activities

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HOW A SYSTEM WORKS

• Divide into Subsystems.

• Ensure subsystems to achieve objectives.

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An Information System as a System

• major purpose of an information system is to convert datainto information

• In a business context, an information system is a subsystem ofthe business system

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An Information System as a System

• oparational information system of an organization provideinformation on the day-to-day activities of a business

• eg:- processing sales orders or checking credit

• tactical systems -that lets management allocate resourceseffectively to archive business objectives

• strategic planning systems - information systems that supportthe strategic plans of the business

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Information System - Elements

• hardware

• software

• personnel databases

• procedures to accomplish its objectives

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Information System - SubSystems

• Operational systems

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Information System - Outputs and Inputs

• An information system, like any other system, receives inputsof data and instructions, process the data according to theinstructions, and produces outputs

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Information System -Hierarchy of Subsystems

• The subsystems within an information system can beorganized into a hierarchy to represent their functions withinthe overall system

• Each subsystem performs a specialized function

• one subsystem may record sales transactions as input,another subsystem may check customer creditand another may check inventory availability

Table of contents Course Overview f()s of mngmnt Levels of management

Information System -System Feedback

• An information system provides system feedback to a managerabout day-to-day activities and about deviations from plannedactivity

• The information systems providing feedback that can be usedto allocate resources effectively, such as inventory andpersonnel, are called tactical systems

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Information System -Subsystem Interfaces

• the outputs of one subsystem become the inputs into the next

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Information System -Internal Controls

• Good information system also have internal standards to makesure that data are processed accurately.

• Input controls,for example,ensure that input data are validbefore they are processed

• password

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Effect of the Systems Approach on Information SystemDesign

• The Structure of an Enterprise

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USING THE SYSTEM APPROACH IN PROBLEMSOLVING

• Define the problem.

• Gather data describing the problem.

• Identify alternative solutions.

• Evaluate these alternatives.

• Select and implement the best alternative.

• Follow up to determine whether the solution is working

Table of contents Course Overview f()s of mngmnt Levels of management

Define the Problem

• .The first step in the systems approach to problem solving isto define the problem

• if the wrong problem is identified, the entire effort to changethe system will be off track

• problems that are identified may be symptoms of the realproblem

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Gather Data Describing the Problem

• The owner may study the environment, current standards,management, input resources, and internal procedures to gainan understanding of the problem

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Identify alternative solutions

owner needs to identify some alternatives responses

• Alternative 1 : Investigate alternative manufacturers

• Alternative 2 : Decrease the cost of sales by introducingonline sales etc

• Alternative 3 : Differentiate the dealerships product byoffering support services

•

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Evaluates the alternatives

• The owner evaluates the extent to which each alternativesenables the organization to achieve its objectives

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Select and Implement the Best Alternative

• Select and Implement the Best Alternative

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Follow Up to Determine Whether the Solution isWorking

• Follow Up to Determine Whether the Solution is Working

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HOW INFORMATION TECHNOLOGY SUPPORTSBUSINESS ACTIVITIES

• One of the first challenges managers face is understandinghow they can use information technology to support businessactivities

• Porter and Millars concept of the value chain helps explainwhich business activities can be analyzed and transformedthrough the use of information technology

• The value chain divide a companys activities into valueactivities, the distinct activities it must perform to do business

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Value activities consist

• primary activities

• support activities

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Primary activities - LOOMS

include

• Inbound logistics - delivery and handling of incoming materials

• operations - manufacturing related functions

• outbound logistics - order processing and shipping goods andservices to customers

• marketing - advertising,promotion,and sales force management

• service - support repair and maintenance of its goods andservices

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Support activities - POTH

• include the resources that support the primary activities of thebusiness

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Support activities - POTH

• Purchasing - Online links to suppliers

• Organisation - Office Automation

• Technology - Computer aided design and manufacturing

• Human resources - Skill database

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Support activities

Figure: Support activities

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interorganisational systems( IOSs)

• Information systems that link suppliers and buyers,manufactures and distributors, and distributors and buyers

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USING INFORMATION TECHNOLOGY FORCOMPETITIVE ADVANTAGE

• New developments in information technology,such astelecommunications,computer aided design,and officeautomation,have created unprecedented opportunities.

••

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Industry level effect

• Products and services : Information technology can changethe nature of products and services by altering the productdevelopment cycle or by increasing the speed of distribution

• eg :- If a textbook publisher uses word processing andcomputer based typesetting to generate publications

• Production economics : Can modify the production aspects

• Markets: Consumers have become increasingly computerliterate ATM etc

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Firm level effect

• At the firm level, the competitive forces facing the firmdetermine the effect of information technology.

• Five competitive forces influence the probability of an industry

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Five competitive forces- Firm level

• buyers

• suppliers

• substitute products

• new entrants

• rivals

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Strategy Level

• Low cost leadership - Low cost leadership refers to the abilityto reduce costs or to improve productivity without incurringadditional costsEg:- If a commercial bank can process thousands of demanddeposit transactions per day at 2 Rs per transaction

• Product differentiation - It is achieved by adding value orunique features to a product to improve its quality & services.A good example of product differentiation is giving customerelectronic access to an online service network

• Market Specialization The third competitive strategy porterdescribe is market specialization, which is achieved byconcentrating on a particular product niche. Eg: ElectronicLibrary

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Reference

• Management Information System - The Managers viewRobert SchultheisMary Sumner

Table of contents Course Overview f()s of mngmnt Levels of management

Contact

• vijupoonthottam@yahoo.co.in