Management Information System


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Management Information System

  1. 1. Management Information System
  2. 2. Trends in Business and Management <ul><li>Blurring of industry boundaries </li></ul><ul><li>Deregulation of industries </li></ul><ul><li>Faster pace of business </li></ul><ul><li>Increasing foreign competition </li></ul><ul><li>Global Business Community </li></ul><ul><li>An Information Society </li></ul><ul><li>Increasing complexity of management </li></ul><ul><li>Interdependence of organization units </li></ul><ul><li>Improvement in productivity </li></ul><ul><li>Availability of computers of end users </li></ul><ul><li>Recognition of information as a resource </li></ul>
  3. 3. Strategic Planning Top Mgmt. Mgmt. Control & Tactical Planning Middle Mgmt. Operational Planning & Control Operational Mgmt. Transaction Processing Operational Personnel Well defined Structured Problems Data requirement Poorly defined or undefined Kind of Problems Unstructured Management Hierarchy & Information Flow
  4. 4. Strategic Planning Goals, Policies, Guidelines, Objectives Management Control & Tactical Planning Acquisition of resources, tactics, Plant location, product Establishment & monitoring of budget. Operational Planning & Control Effective & Efficient use of existing facilities & resources
  5. 5. Important Activities in Business <ul><li>Problem Solving </li></ul><ul><li>Decision Making </li></ul><ul><ul><li>Methods of Decision Making </li></ul></ul><ul><ul><ul><li>Matrix Pairs of conditions and actions </li></ul></ul></ul><ul><ul><ul><li>Decision Tables Section from set of actions conditions in the form of rule. </li></ul></ul></ul><ul><ul><ul><li>Flowchart </li></ul></ul></ul><ul><ul><ul><li>Decision Tree Selection of Path </li></ul></ul></ul><ul><ul><ul><li>Pseudo Code If-Then form </li></ul></ul></ul>
  6. 6. Some Optimization Techniques for Decision Making <ul><li>System of equation </li></ul><ul><li>Linear programming </li></ul><ul><li>Integer programming </li></ul><ul><li>Dynamic programming </li></ul><ul><li>Queuing models </li></ul><ul><li>Inventory models </li></ul><ul><li>Capital budgeting analysis </li></ul><ul><li>Break-even analysis </li></ul>
  7. 7. Statistical Techniques <ul><li>Sampling </li></ul><ul><li>Probability distributors </li></ul><ul><li>Regression and correlation analysis </li></ul><ul><li>Testing of hypothesis </li></ul>
  8. 8. Components of Problem Solving Process Decision Making Process Choice Selection Process Problem Solving Process Gather intelligence about Problem Develop alternative Select an alternative Implement the solution Monitor situation & results
  9. 9. IS and Problem Solving Stages Gather intelligence about Problem Develop alternative Select an alternative Implement the solution Monitor situation & results Existing Information System (TPS, MIS) Expert Systems Engineering Systems Graphic Systems Spread Sheet Programs Statistical Packages Financial Management Packages Project Management Software Personal Database Application Existing & New Information System
  10. 10. Information System <ul><li>An Information System is a set of people, data and procedures that work together to provide useful information. </li></ul>
  11. 11. Vision of Role of IS <ul><li>Information Technology Vision </li></ul><ul><li>Strategic Business Vision </li></ul>BUSINESS VISION Business Environment Hardware Software Data Data Communication Creating new business opportunities; New Products New Services Enter New Industry Improved performance in current industry Information System Capability enables Business Vision Combined knowledge of Business Environment & Information System
  12. 12. Activities in Information System Input of Data Processing Procedures Reports Document Database Sales Analysis Sales history Inventory Report Customer History Sales Details Payment Details Sales Returns Adjustments Customer Data Sales Data Inventory Data
  13. 13. Information Systems should inform Managers not overwhelm them: Seven types of Information for Top Managers (imp) Comfort Information Achievement levels for Performance Measurement Status Information or Progress Information Current Problems, Crisis, Opportunities Warning Information Signals of changes affecting firm Planning information Description of major developments & programs due to being in future Internal operation information Key indicators of organizations & individuals performance External Intelligence Competion & industry changes: Financial, Political, Economical shifts Externally distributed information Information chief executive wishes to review before its release to stockholders, news media etc.
  14. 14. Different Types of IS (studied fr ERP notes only ) <ul><li>Transaction Processing System </li></ul><ul><ul><li>Process data about transaction. </li></ul></ul><ul><li>Management Information System </li></ul><ul><ul><li>Provides information for decision support where information requirement can be identified in advance. </li></ul></ul><ul><li>Decision Support System </li></ul><ul><ul><li>Assist managers with unique strategy decisions that are relatively unstructured. </li></ul></ul>
  15. 15. Different Types of IS <ul><li>Executive Support System </li></ul><ul><ul><li>Assists Top-level executives in acquiring & using information needed to run the organization. </li></ul></ul><ul><li>Work-group Support System </li></ul><ul><ul><li>Assists and supports managers, staff and employees in carrying out day-to-day activities. </li></ul></ul><ul><li>Expert System </li></ul><ul><ul><li>Use of computer programs to store facts & rules to mimic the decision of human expert. </li></ul></ul>
  16. 16. Benefits of IS (imp) <ul><li>Gain in Productivity </li></ul><ul><ul><li>Increase in efficiency of the task. </li></ul></ul><ul><ul><li>More work completed with same or fewer resources. </li></ul></ul><ul><li>Improvement in Effectiveness </li></ul><ul><ul><li>Doing the right thing. </li></ul></ul><ul><ul><li>Utilization of resources to produce desirable results of high quality. </li></ul></ul><ul><li>Gain in Competitive Advantage </li></ul><ul><ul><li>Selecting & implementing strategies that changes the way a firm competes. </li></ul></ul><ul><ul><li>Improved performance in comparison of market competitors using chosen criteria (e.g. market share, industry dominance, industry ranking, etc.). </li></ul></ul>
  17. 17. Value Addition by IS (imp) Facilitates Business Process in Operations management & Strategic Planning Enhance Product characteristics & product delivery Increasing Process Quality & Product Quality though improvement & innovation QUALITY PROCESS PRODUCT
  18. 18. Information System Application Information System environment Information System Application DATA H/W S/W Communication Information System Human Resources Mgmt Organization Structure Customer Competition Supplies Regulatory Agencies ESS TPS ES DSS WGS MS
  19. 19. Management Information Differ by Level in the Organization Comfort Information Status Information Warning Information Planning Information Internal Operation Information External Intelligence Externally Distributed Information Factual Details Exception Reports Financial Accounting Information Management Accounting Information Internally Oriented Information Proportion of Information Types Needed Top Management & Executives Operating & Lower Level Managers
  20. 20. Common Type of MIS Output <ul><li>Printed Output </li></ul><ul><li>Visual Output </li></ul><ul><li>Graphic Output </li></ul><ul><li>Secondary Storage Output </li></ul><ul><li>Microfilm Output </li></ul><ul><li>Audio Response Output </li></ul><ul><li>Plotter Output </li></ul>
  21. 21. Problems in Development of MIS <ul><li>Major Problems </li></ul><ul><ul><li>Lack of Top Mgmt involvement in planning and Design phase. </li></ul></ul><ul><ul><li>Cost & Complexity of using a Database Management System. </li></ul></ul><ul><ul><li>Inadequate pre-system planning. </li></ul></ul><ul><ul><li>Recruiting qualified computer specialists. </li></ul></ul><ul><ul><li>Inadequate strategy for extending MIS to other part of the company. </li></ul></ul>
  22. 22. Problems in Development of MIS <ul><li>Moderate Problems </li></ul><ul><ul><li>Cost of proposed computed application outweigh their economic benefit. </li></ul></ul><ul><ul><li>Integrating the computer with the rest of the company. </li></ul></ul><ul><ul><li>Availability of computer programs and operating systems. </li></ul></ul><ul><ul><li>Employee resistance towards the MIS </li></ul></ul><ul><ul><li>Planning what job to automate; availability of instructional material </li></ul></ul><ul><ul><li>Proposed computer application are too time consuming to automate </li></ul></ul><ul><ul><li>Management resistance towards MIS </li></ul></ul>
  23. 23. Problems in Development of MIS <ul><li>Minor Problems </li></ul><ul><ul><li>Management acceptance of the computer </li></ul></ul><ul><ul><li>Role of System Analysts/Designers not clearly defined. </li></ul></ul><ul><ul><li>Reliability of computers and related equipment. </li></ul></ul><ul><ul><li>Management of computer and related equipment. </li></ul></ul>
  24. 24. Guidelines for overcoming problems (try to give opposite statemnts of benefts) <ul><li>Ensure that MIS is truly modified to meet user objectives, not just self serving interest of MIS staff. </li></ul><ul><li>MIS staff should insist on the meaningful involvement by management and corporate management as well. </li></ul><ul><li>Ensure that the user involvement in agreed upon before any work on MIS takes place. </li></ul><ul><li>Ensure that user both understands and accepts full responsibility & commitment towards the ultimate success of the MIS project. </li></ul>
  25. 25. Guidelines for overcoming problems <ul><li>Ensure that user involvement is active and not passive, and maintained throughout the development of MIS </li></ul><ul><li>Ensure that schedules are realistic and accurately reflect not only the MIS staff ability, but also that of the user to participate in the development of MIS </li></ul><ul><li>Ensure that MIS staff understands the importance of observing commitments & maintaining quality. </li></ul>
  26. 26. Guidelines for overcoming problems <ul><li>Ensure that user management is constantly informed about the MIS projects, that the communication channels are kept open at all the times. </li></ul><ul><li>Involve Top Management from an overall standpoint in the planning phase as well as succeeding phases of the MIS project. </li></ul><ul><li>Provide adequate pre-system planning that focuses on getting started on MIS project </li></ul><ul><li>Get appropriate functional managers & their personnel involved in the detailed aspects of the MIS project </li></ul>
  27. 27. Consideration of IS in Strategic Planning Information Systems Capabilities, Applications, Personnel, Hardware, Software, Data, Communication No consideration of Strategic Impact: IS & Plans are separate Used to implement Strategic Plans: Considered after plans are formulated Considered in formulation of Strategic Plans: Considered before formulation of plan is completed .
  28. 28. IS for Corporate Strategy <ul><li>Determination of strategies by corporate executives </li></ul><ul><li>Need of Information System in identified </li></ul><ul><li>IS plan is formulated to assist in implementing the Organization Strategy. </li></ul>
  29. 29. IS for Corporate Strategy: Areas <ul><li>The industry in which the firm now competes </li></ul><ul><ul><li>New Product or Service </li></ul></ul><ul><ul><li>Improved Production economies </li></ul></ul><ul><ul><li>Improved Delivery capabilities </li></ul></ul><ul><li>New Markets the firm can enter </li></ul><ul><ul><li>Geographic expansion of market </li></ul></ul><ul><ul><li>Expansion into new market segments </li></ul></ul><ul><li>Industries in which the firm can begin competing </li></ul><ul><ul><li>Offer services & products in industry to which firm has been supplier </li></ul></ul><ul><ul><li>Create new industry </li></ul></ul><ul><li>The elements with which firm interacts or that influence it </li></ul><ul><ul><li>Customers, Suppliers, Regulators, Competitors </li></ul></ul>
  30. 30. Integrated Information System <ul><li>System that has module for each functional subsystem of the enterprise & implement all the management activities within each module. </li></ul>
  31. 31. Integrated IS framework Model Base DBMS Applica -tion Software Private Data Private Data Private Data DBMS Subsystem Software Modules Strategic Planning Management Control Operation Control Transaction Control
  32. 32. Major Modules of a Information System Project <ul><li>Feasibility Study </li></ul><ul><li>Determines the appropriateness of making a system change </li></ul><ul><ul><li>Introductory investigation </li></ul></ul><ul><ul><li>Structured analysis </li></ul></ul><ul><ul><li>Structures System Design </li></ul></ul><ul><ul><li>Equipment Selection </li></ul></ul>
  33. 33. Major Modules of a Information System Project … <ul><li>System Implementation: </li></ul><ul><li>Provides the user with a fully operational system </li></ul><ul><ul><li>Training of Personnel </li></ul></ul><ul><ul><li>Structured Programming & Compiling </li></ul></ul><ul><ul><li>Structured Walkthroughs & Testing </li></ul></ul><ul><ul><li>Parallel Operations for checking the new system </li></ul></ul><ul><ul><li>Final Conversion to new system </li></ul></ul><ul><li>Periodic Review: </li></ul><ul><li>Ensures that the system continues to meet users needs effectively. </li></ul>
  34. 34. Characteristics of a well designed MIS <ul><li>Acceptability </li></ul><ul><ul><li>Relates to approval of MIS by personnel who will use it. </li></ul></ul><ul><ul><li>To improve acceptability user should participate in the development of MIS. </li></ul></ul><ul><li>Design Making ability </li></ul><ul><ul><li>Refers to the capability of MIS to produce timely, pertinent information, facilitating the decision making process of organization personnel, at the lowest cost. </li></ul></ul><ul><li>Economy </li></ul><ul><ul><li>Centers on keeping costs low by capturing control information in the MIS as near to the source as possible. </li></ul></ul>
  35. 35. Characteristics of a well designed MIS <ul><li>Flexibility </li></ul><ul><ul><li>Focuses on the capability of MIS to adopt to changing environmental conditions likewise, organization personnel must be prepared to adjust their operations to changing conditions. </li></ul></ul><ul><li>Reliability </li></ul><ul><ul><li>Refers to the consistency of MIS to control operations. </li></ul></ul><ul><ul><li>A high degree of reliability can be designed into the system by incorporating good control. </li></ul></ul><ul><li>Simplicity </li></ul><ul><ul><li>Stresses the capability of the MIS to provide a straight-line flow from one operation to the next, thereby avoiding needless backtracking and duplication. </li></ul></ul>
  36. 36. The System Life Cycle <ul><li>Inception </li></ul><ul><ul><li>Preliminary Survey </li></ul></ul><ul><li>Feasibility Study </li></ul><ul><ul><li>Existing Procedures Alternative System estimates </li></ul></ul><ul><li>System Analysis </li></ul><ul><ul><li>Details of present procedures </li></ul></ul>
  37. 37. The System Life Cycle <ul><li>Requirement Analysis </li></ul><ul><ul><li>User Needs – Collection of Data on volumes, input/outputs, files, boundary settings </li></ul></ul><ul><li>Design </li></ul><ul><ul><li>Ideal System unconstrained revision to make ideal acceptable </li></ul></ul><ul><li>Specifications </li></ul><ul><ul><li>Processing logic, File Design, Input/Output, Programming requirement, Manual Procedures </li></ul></ul>
  38. 38. The System Life Cycle <ul><li>Programming & Testing </li></ul><ul><ul><li>Unit Tests, Combined Module Tests, Acceptance Tests </li></ul></ul><ul><li>Training, Conversion & Installation Operation </li></ul><ul><ul><li>Maintenance & Enhancements </li></ul></ul>
  39. 39. Tools for a S/w Project <ul><li>Data Collection Tools: </li></ul><ul><ul><li>Observation </li></ul></ul><ul><ul><li>Interviews </li></ul></ul><ul><ul><li>Questionnaires </li></ul></ul><ul><ul><li>Comparisons </li></ul></ul><ul><ul><li>Seminars </li></ul></ul><ul><ul><li>Presentations </li></ul></ul>
  40. 40. References <ul><li>Information Systems for Modern Management – 3ed </li></ul><ul><ul><li>Robert G Murdic, Joel E Ross, James R Colggett – PHI </li></ul></ul><ul><li>Management Information System </li></ul><ul><ul><li>Gerald V Post, David L Anderson – TMH </li></ul></ul><ul><li>Management Information System </li></ul><ul><ul><li>Mc-Lead </li></ul></ul><ul><li>Management Information System </li></ul><ul><ul><li>Kroonke – Macmillan Publishing </li></ul></ul><ul><li>Management Information System </li></ul><ul><ul><li>Senn </li></ul></ul><ul><li>Analysis & design of Information System </li></ul><ul><ul><li>Senn </li></ul></ul><ul><li>Software Engineering – 3ed </li></ul><ul><ul><li>Pressman </li></ul></ul>