INFORMATION SYSTEM / TECHNOLOGY FOR

MANAGERS

Prepared By Darshan Bhattarai

ABSTRACTS

Basic IT

Information Technology

How IT Effects business

MIS

Objectives of MIS

MIS Sub-systems

Organization System and MIS

MIS and Decision Making

Components of Decision Making and MIS

MIS and its CHALLENGES

BEFORE WE BEGIN

The mouse isn’t fragile

Typing ability is helpful but not necessary for managerial works

You cannot destroy your computer by pressing any KEYS!!

Have patience, stroking multiple times won’t make your work faster.

Virus doesn’t get in from dusts around you… They are

software/programs…

Following the right steps, even data deleted from your computers

recycle bin can be brought back, but follow the measures.

A Computer just follows your orders so be the master, don’t be the

slave!!!

Relax, enjoy and learn with no deadlines…..

REMEMBER ---

Inexperience is not an indication of you intelligence !!

INFORMATION TECHNOLOGY

Information Technology involves the processing of information by a computer.

Usually this means the use of hardware, software, services, and the

supporting infrastructure to manage and deliver information.

IT has changed our daily personal lives radically over recent years

The use of mobile phones to make calls and send text messages,

The use of social networking sites for community related services,

The use of websites to book cheap flights and

The use of ATM machines for banking are all an integral part our society

today.

Clearly the business environment has been hugely impacted by these

developments and practically every company has had to adapt IT in some

form in order to compete effectively and have comparative advantage.

E-Business can be defined as the application of IT to business processes; i.e.

the process of doing business with trading partners electronically. This

includes, for example, processing business transactions electronically,

integrating business processes electronically and transferring payments

electronically and delivering services electronically

BASIC TERMINOLOGIES OF IT

Hardware- Hardware can be defined as IT-related machinery and

equipment.

Software - Software can be defined as the set of instructions for the

computer - it dictates what is to be done.

Operating System - The Operating System (O/S) is the first

program (set of instructions) to come to life when the computer is switched

on.

Networks - A network is a group or a number of people or things linked

or connected together, either physically or by association.

Email - Email allows you to send text messages across a network, either

an internal network or an external one like the Internet.

The Internet - The Internet is a computer network made up of

thousands of networks worldwide. No one knows exactly how many

computers are connected to the Internet. It is certain, however, that these

number in the millions.

HOW IT EFFECTS BUSINESS

IT can give your company a significant competitive advantage; the other side of this coin is that if you fail to embrace technology in your business, your competitors will get ahead.

Moreover an eBusiness approach consolidates a company's position in the market, opening up new business opportunities and improving profit margins.

Competitiveness: eBusiness offers a reliable, cost effective and involuntary means

of doing business. Routine tasks can be automated and customers, if they wish, can avail of a 24-hour service.

More players will enter the market as technology enables firms to penetrate overseas, this represents both an opportunity and a threat.

New technologies can change the face of your business; look at the Irish airline industry and consider how the internet has changed the entire business model in this market.

HOW IT EFFECTS BUSINESS (CONTD..)

Security: Information Technology can give companies a competitive

advantage. However, this can mean that customers, suppliers, contractors, and business partners are routinely allowed access to critical business data and to the systems that process and store the information. Consequently, companies must have a security program. The three fundamentals of a security program are

Confidentiality - only authorized parties can read the details of the transaction

Integrity - unauthorized modifications of the transaction will be detected

Availability - systems are reliable and recoverable

There are many areas that a company may address as part of a security program and these include:

Regular Backups and Recovery;

Anti Virus Protection;

Disaster Recovery;

Audit Logs and Monitoring of unusual activity

Authorized User Access utilizing password control.

HOW IT EFFECTS BUSINESS (CONTD..)

Cost Benefits Lower transaction expenses are a reality and labor costs associated with

administration can be slashed.

Supply costs can be reduced. The extensive availability of Internet-based information means that companies have a wider choice of suppliers and by extension, there is more competitive pricing.

Publication and distribution fees fall. Publishing a brochure online enables a vast number of people to access it, while also allowing the company to update the information on an ongoing basis.

The role of the Middleman becomes less important as companies can sell direct to the customer.

Marketing Websites help to build brand awareness offering new avenues of promotion.

Customer loyalty deepens because web based purchasing affords customers the opportunity to communicate with the company.

Conversely, a web site also allows the firm to offer better service to consumers.

MANAGEMENT INFORMATION SYSTEM

MIS refers broadly to a computer-based system that

provides managers with the tools for organizing,

evaluating and efficiently running their departments.

However MIS doesn’t Solely mean a computing

System.

The three sub-components

Management, Information and System

- together bring out the focus clearly &

effectively.

System emphasizing a fair degree of integration and a

holistic view;

Information stressing on processed data in the context

in which it is used by end users;

Management focusing on the ultimate use of such

information systems for managerial decision making.

MANAGEMENT INFORMATION SYSTEM

OBJECTIVES OF MIS

Facilitate the decision-making process

Collects information in a systematic and a routine

manner.

Provide requisite information at each level of

management to carry out their functions.

Highlighting the critical factors to be closely

monitored

Provide a system of people, procedures, query

facilities for collecting, storing, retrieving and

transmitting information.

MANAGEMENT INFORMATION SYSTEM

MIS Subsystems

STRATEGIC

PLANNING

MANAGEMENT

CONTROL

OPERATIONAL

CONTROL

TRANSACTION

PROCESSING

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MAJOR FUNCTIONAL

SUBSYSTEM

USES

Marketing Information System Sales forecasting, Sales planning, Sales

analysis

Manufacturing Information System Production planning & scheduling, cost

control analysis

Personnel Information System Salary Admin, Planning HR requirement,

performance analysis

Accounting Information System Financial Analysis, cost analysis,

Capital planning, etc.

Logistics Information System Planning & control of Purchasing,

inventories, distribution.

Information Processing System Planning of Information System, cost –

effectiveness analysis

Top Management System Strategic Planning, resource allocation

STEPS FOR DESIGNING MIS

MIS AND DECISION MAKING

Decision making is an integral part of the functioning of any organization.

To facilitate decision making in this ever-competitive world it is imperative that managers have the right information at the right time to bridge the gap between need and expectation.

To facilitate better flow of information adequate Management Information Systems (MIS) is the need of the hour.

Thus it is important to have an understanding of the MIS followed in an organization by all levels of management in order to take effective decisions.

Management information systems give decision-

makers the data they need to fulfill their

responsibilities.

Such systems provide background, current data

and trend analysis so the manager has data

available on all aspects of the business.

Managers using management information systems

can improve business performance since they have

detailed information on their business environment

and their decisions reflect the company position in

the marketplace.

MIS AND DECISION MAKING

COMPONENTS OF DECISION MAKING

Data Managers have to be informed about their business in general

and about their area of responsibility in particular. Management information systems give the manager access to key data about his department and about the company in general. If the manager needs reference information for a bid or for regulatory purposes, management information systems are a good source.

Decisions Decisions are only as valid as the information on which they are

based. Management information systems improve manager decision-making, because they provide information that is accurate, timely, relevant and complete. Self-checking and cross-checking features in management information systems reduce errors, and IT professionals design the systems to offer a complete picture of a situation or highlight that specific information is missing. Companies that use management information systems ensure that all managers work from the same set of data and make their decisions based on identical information.

Trends

A key part of management's responsibilities is preparing forecasts

for strategic planning and budgets. A manager can look for trends

by asking the systems to project past performance patterns into

the future. MIS have sophisticated mathematical analysis tools

that can evaluate relationships and calculate probable future

trends.

Scenarios

Management information systems can evaluate different

possibilities and let managers examine scenarios. What-if

scenarios are a powerful tool that helps managers decide on the

best strategy for the company. Management information systems

calculate what happens based on their collection of data on how

the company operations performed in the past. Managers can

with this knowledge they can develop the optimal strategy for the

company.

COMPONENTS OF DECISION MAKING IN MIS

MIS AND ITS CHALLENGES (TECHNICALLY)

Some of the distinguishing challenges that the people face while planning, using or approving management information systems are:

MIS requires a wide variety of knowledge areas including accounting, finance, marketing and manufacturing. Therefore having both technical and practical experience in these subjects is very useful.

Both technology and technology-related products are emerging at very high pace. Consequently no one can possibly be proficient in all new technologies and therefore compromises has to be made.

MIS problems are difficult to define. Some times a situation may be seen as a problem but in fact it may be just a cause of a problem.

There is a lack of sympathetic relationship between MIS personnel and users and management and MIS personnel because employees are more loyal to their profession rather than needs of the organizations.

MANAGERIAL LITERACY

Though technology receives most of the credit, managers play an intricate role when dealing with MIS.

Managerial literacy in both technology and information determine how effective strategies will be when implemented.

A technology-literate manager will know how and when to apply technology, meaning that she will know what to purchase to execute certain processes and the most appropriate time to make the purchase.

An information-literate manager is able to define what information is needed and how to access it, can convert it from information to business intelligence, and can make the best decision based on the information.

INFORMATION MANAGEMENT

STRATEGIES

Promoting the understanding of information importance in the organization

Improving the organization of existing information

“Informatization” of the process

Information support to human activity

Language development (taxonomies and coding systems)

Using meta-information

Use of templates and patterns

Creation of information model

System development

Process improvement through IT

Information design

Optimal mix of information channels

Standardization and simplification

Intelligent use of Low Technology