Management Information System 4

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Management Information System 4

  1. 1. Amity School of Business Jitendra TomarAmity School of Business, Amity University, UP 09911331317 0120 4392875 jtomar@amity.edu MIS - Orator
  2. 2. Amity School of Business • Organizations, Management & Information. • Information Technology Infrastructure.• Managing and Organizing Support Systems for the Firm. • Building Information Systems in the Digital Firm. • Managing Information Systems in the Digital Firm. MIS - Curriculum
  3. 3. Amity School of BusinessWhy Plan?• According to International Data Group (IDC), the US spent $485.866 billion dollars on IT every year, and the entire world spent $1.074 trillion per year.• Also, Morgan Stanley reported that IT spending constituted 51% of the world’s total capital equipment spending.• But the pity, the Standish Group (a research and consulting firm) estimates that 28% of all IS development projects are abandoned before completion.• Much of this waste of resources is due to lack of proper planning.• Professional success of managers also depends upon the ability to help plan ISs, that requires tools for assessing business processes, creating and articulating a business vision, and applying the knowledge about ISs to recommend what technology is needed. Planning Information System
  4. 4. Amity School of BusinessWhat is Planning?• Planning is an Explicit statement given by the management where organization wishes to foresee itself in some time in future.• A Plan is an action statement, which formally articulates the actions we feel are necessary to achieve our goals.• Plans lead to actions, actions produce results, and part of planning is learning from results.• The planning process is followed by implementation, which is monitored by control measures, which provide feedback for planning. Planning Information System
  5. 5. Amity School of BusinessPlanning - ActivitiesThe ideas form the background of Planning, which comprise of the following events:• Defining an organization’s goals and objectives,• Determining the resources needed to attain those objectives,• Creating the policies that will govern the acquisition, use, and distribution of those resources,• Providing for any changes in objectives that may be needed along the way.These activities will help the organization in• Achievement of the goals.• Measuring real-world progress against the plan.• Implementing changes in the plan (if any) Planning Information System
  6. 6. Amity School of BusinessPlanning - ActivitiesThe fundamental planning processes consists of:• Team building, modeling, and consensus,• Evaluating what an organization has accomplished and the resources they have acquired,• Analyzing their business, economic, political, and societal environments,• Anticipating and evaluating the impact of future developments,• Building a shared vision and deciding on what goals they want to achieve,• Deciding what actions to take to achieve their goals. Planning Information System
  7. 7. Amity School of BusinessPlanning – At Different Management Levels.• Strategic Planning − Deals with the development of an organization’s mission, goals, strategies, and policies. − Variety of techniques like team building, scenario modeling, and consensus creating, are used to develop shared vision. − Planning sessions frequently include answering strategic visioning questions such as understanding the customer, customer value, competition, and value chain.• Tactical Planning. − Involves the setting of objectives and the development of procedures, rules, schedules, and budgets.• Operational Planning − It is done on a short-term basis to implement and control day-to- day operations like project planning and production scheduling. Planning Information System
  8. 8. Amity School of BusinessPlanning – Different Approaches.There are various approaches in planning. The three most common are:• Bottom-Up Approach. – When the management believe in the adage “if it ain’t broke, don’t fix it”, then the approach to planning is usually based on an organizations’ response to needs and problems. – Because the problems are usually first experienced and articulated in lower levels of management, this approach is called so. – Managers aim to respond to concerns by integrating several sub objectives into larger objective. – It is mainly driven by middle level managers. Planning Information System
  9. 9. Amity School of BusinessPlanning – Different Approaches. – The assumption is that the organizational problems are, essentially, aggregates of small problems; thus solutions to these small problems will also satisfy organizational needs. – This approach does not allow a broad view of organizational needs & opportunities and is reactive rather than proactive. – Although this approach may result in ISs that seem to serve specific units well, it usually is not conducive to enterprise wide integration of systems. – It leads to establishment of De-Centralized Architecture. – Senior managers have to wait for needs to make themselves known, rather than seizing business opportunities. Planning Information System
  10. 10. Amity School of BusinessPlanning – Different Approaches.• Top-Down Approach. – A belief that operations can always be improved, even if all is well now, usually has top managers setting goals and objectives that filter down through the entire organization. This philosophy hence is known as Top Down Approach of planning. – In this, the managers state clear objectives for the entire organization, usually for the long term. – These objectives are then broken into sub-objectives for various divisions and groups in the organization and allocate resources for the various units. – The assumption is that solving the ‘big” long term problems will also satisfy the “small” short term problems. Planning Information System
  11. 11. Amity School of BusinessPlanning – Different Approaches. – Even isolated short term problems are addressed in the context of a larger process. – It is called “holistic” planning because it focuses on big picture and sometimes also considered as goal-driven planning. – Since it is driven by senior managers, it leaves significant control in the hands of these managers, rather than in the hands of lower-level managers. – This planning approach also results in highly integrated ISs, spanning the entire organization or major parts of it. – It leads to centralized architecture of Information Technology and IS. Planning Information System
  12. 12. Amity School of BusinessPlanning – Different Approaches.• Planning by Critical Success Factor. – This approach focuses on planning for the factors critical for success. – These factors are identified through primary research. – In the realm of IS, planners interview executives to see how information technology can promote their goals, – The executives are asked to pin point the most critical factors to their success, such as delivery time of manufactured items, length of time to prepare certain reports, availability of information combined from several disparate sources, and online availability of external information. Planning Information System
  13. 13. Amity School of BusinessPlanning – Different Approaches. – The underlying concept is that the whole is the sum of individual parts: the success of the organization is the sum of the successes of individual business units. E.g.: More production time could effect the supply chain management. – Individual business units inside the organizations have their own critical variables and if implemented effectively, the organization on the whole is said to have no problem and efficiency of the organization will increase. Planning Information System
  14. 14. Amity School of BusinessInformation System Planning.• Nowadays, ISs are often the core of business processes, and sometimes the generator of new revenue.• Not only IS managers have to plan their activities, but now many organizations integrate there IS planning into their overall organizational strategic planning.• The IT & IS planning process leads to development of strategies and business models for new e-business and e- commerce platforms, processes, products, and services.• Then company can develop IT strategies and an IT architecture that supports building and implementing their newly planned business applications. Planning Information System
  15. 15. Amity School of BusinessInformation System Planning.The IT & IS planning process has three major components:• Strategy Development – Developing business strategies that support a company’s business vision. – E.g.: Using Information Technology to create innovative e-business systems that focus on customer and business value.• Resource Management – Developing strategic plans for managing or outsourcing a company’s IT resources, including IS personnel, hardware, software, data, and network resource.• Technology Architecture – Making strategic IT choices that reflect an Information Technology Architecture designed to support a company’s e- business and other business/IT initiatives. Planning Information System
  16. 16. Amity School of BusinessIS Planning – Bit more.Pre-requisites in IS planning - Top level management must:• Recognize IT as an indispensable resource.• Understand that IT is a complex resource.• Regard IT as owned by the entire organization.• Regard IS as a source for gaining strategic goals.• View IS as a tool to control power.Important foresee in IS planning• Flexibility.• Compatibility.• Connectivity.• Scalability.• Standardization.• Total cost of ownership. Planning Information System
  17. 17. Amity School of BusinessIS & IT Organization.• The organizational structure for the IS & IT function within a company and the distribution of IS specialists are designed to meet the changing strategies of a business.• The form of the IT organization depends on the managerial philosophy and IT strategies formulated during the strategic planning process.• Depending upon the requirement, company implement – – Centralized, – Decentralized, or – Distributed Architecture. Planning Information System
  18. 18. Amity School of BusinessIS & IT Organization.Centralized Architecture:• All application & data are usually stored on company’s single mainframe.• Advantage – It allows top level management & the IS department a high degree of control , making it easy to – Maintain standards of H/W, S/W, procedures & operations. – Controlled access to information.• Disadvantage – Is its inflexibility. – Different offices and remote sites have different information needs. Few sites are not completely satisfied. Planning Information System
  19. 19. Amity School of BusinessIS & IT Organization.De-Centralized Architecture:• Allows departments & remote sites a large degree of independence in organizing & utilizing there IS.• Each unit with in an organization has its own local IS department to establish an infrastructure & to select H/W & S/W to satisfy the information needs, without considering other units.• In fully decentralized architectures, the systems of independent units are not linked to each other or to organizational head quarter.• Disadvantage – Variety on independent systems makes it difficult to share application and data. – It is also more expensive in terms of maintenance & service contracts with many vendors. Planning Information System
  20. 20. Amity School of BusinessImplementing IT – Where About.• Implementation is a process that carries out the plans for changes in business/IT strategies and applications that were developed in the planning process.• Despite the technical and logistical challenges associated with large-scale system integration projects; the essential elements in all successful implementations is people.• Implementing new business/IT strategies requires managing the effects of major changes in key organizational dimensions such as business processes, organizational structures, managerial roles, employee work assignments, and stakeholder relationships that arise from the deployment of new business information systems. Implementing IS
  21. 21. Amity School of BusinessImplementing IT – Where About. Resistance in implementation User Resistance to sharing knowledge 20% Lack of Need Cost 53% Immaturity of Technology 15% Immaturity of Knowledge Management Industry 9% 3% Implementing IS
  22. 22. Amity School of BusinessInformation System – Development Aspects.• When the system approach to problem solving is applied to the development of information systems solution to business problems, it is called information system development or application development.• The System Approach to problem solving uses systems orientation to define problems and opportunities and develop solutions. Formulating a solution involves the following activities: • Recognize and define a problem or opportunity using systematic thinking. • Develop and evaluate alternative system solutions. • Select the system solution that best meets your requirement. • Design the selected system solution. • Implement and evaluate the success of the designed system. Developing IS
  23. 23. Amity School of BusinessSystem Development Life Cycle• SDLC is a multi-step process for the development of information systems solutions using systems approach. (1) Systems Investigation (2) Systems Analysis (3) Systems Design (4) Systems Implementation (5) System Maintenance Developing IS
  24. 24. Amity School of BusinessSystem Development Life Cycle.(Phase-1) Understanding the Business Problem or Opportunity• System Investigation (Feasibility Study) – Determine how to address IS / IT opportunities and priorities. – Conduct a feasibility study to determine whether a new or improved IS system is a feasible solution. – Develop a project management plan and obtain management approval.(Phase-2) Develop an information system solution• System Analysis (Functional Requirements) – Analyze the information needs of employees, customers, and other business stakeholders. – Develop the functional requirements of a system that can meet business priorities and the needs of all stakeholders. Developing IS
  25. 25. Amity School of BusinessSystem Development Life Cycle.• System Design (System Specifications) – Develop specifications for the hardware, software, people, network and data resources, and the information products that will satisfy the functional requirements of the proposed business information system.(Phase-3) Implement the information system solution• System Implementation (Operational System) – Acquire (or develop) hardware and software. – Test the system, and train people to operate and use it. – Convert to the new business system. – Manage the effects of system changes on end users.• System Maintenance (Improved System) – Use a post implementation review process to monitor, evaluate, and modify the business system as needed. Developing IS

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