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Mis presentation

  1. 1. Information Systems for Managers Smitha Ramachandran Units 5 – 6
  2. 2. Management Information Systems (MIS ) <ul><li>Defined as an integrated system of man and machine for providing the information to support the operations, the management and the decision-making function in the organization </li></ul><ul><li>Deals with information that is systematically and routinely collected in accordance with a well-defined set of rules </li></ul><ul><li>Information provided by an MIS assists managers in planning, organizing, staffing,coordinating,directing and controlling the operations of an organization </li></ul>Unit:5
  3. 3. Connective Actions Planning Control Operations Plan & Targets Management Control Systems <ul><li>MIS is concerned with planning and control </li></ul><ul><li>Has large amount of data as its integral part that is stored and managed by a data base management system </li></ul>
  4. 4. Features <ul><li>Must be capable of handling voluminous data. The data and transactions must be validated </li></ul><ul><li>Must be able to perform operations on the data irrespective of the complexity of the operations </li></ul><ul><li>Should facilitate quick search and retrieval of information. Must support mass storage of data and information </li></ul><ul><li>Information must be communicated to the receipt in time </li></ul>
  5. 5. IS uses in Functional Areas <ul><li>Finance and Accounting </li></ul><ul><ul><li>To forecast revenue and business activity </li></ul></ul><ul><ul><li>To determine the best sources and uses of funds </li></ul></ul><ul><ul><li>To manage cash and other financial resources and analyzing investment </li></ul></ul><ul><ul><li>To check the financial health of an organization </li></ul></ul><ul><li>Sales and Marketing </li></ul><ul><ul><li>Product Analysis : Used to develop new goods and services </li></ul></ul><ul><ul><li>Site Analysis: to determine the best location for production and distribution facilities </li></ul></ul><ul><ul><li>Promotion Analysis: to determine the best advertising and sales approaches </li></ul></ul><ul><ul><li>Price Analysis: to set product prices to get the highest total revenues </li></ul></ul>Contd…
  6. 6. <ul><li>Manufacturing </li></ul><ul><ul><li>To process customer orders </li></ul></ul><ul><ul><li>Develop production schedules </li></ul></ul><ul><ul><li>Control inventory </li></ul></ul><ul><ul><li>Monitor product quality </li></ul></ul><ul><li>Service industry </li></ul><ul><ul><li>To serve the customer better and maximize their profit </li></ul></ul><ul><li>Banks and other investment firms </li></ul><ul><ul><li>To make good investments and sanction sound loans </li></ul></ul>Contd…
  7. 7. Framework of Business Planning and Control <ul><li>An organization </li></ul><ul><ul><li>must respond to market forces, competition, to environmental and technological changes </li></ul></ul><ul><ul><li>Must do long term planning </li></ul></ul><ul><li>Different Methodologies for Strategic Planning are available </li></ul><ul><li>According to the model suggested by Robert Anthony Strategic Planning plays an important role in planning and control system </li></ul>
  8. 8. Strategic Planning Management Control Operation Control Planning and Control Systems <ul><li>Strategic Planning: the process of the organization, determining the possible shift in objectives, deciding on the resources used to attain their objectives and the policies that govern the acquisition, use and disposition of there resources </li></ul><ul><li>Management Control: the process by which managers assure that the resources are obtained and used effectively and efficiently to attain the objectives of the organization </li></ul><ul><li>Operational Control: the process of assuming that specific task are carried out effectively and efficiently </li></ul>
  9. 9. Planning and Control Activities in Different Functional Areas Strategic Planning Management Control Operational Control Production Location of new factory Determine the product mix Scheduling specific jobs on specific machines in a shift Marketing Entering the export market Media Planning for advertising expenditure Planning sales contacts to be made in the next week Finance Raising capital by issuing new shares Determining maximum levels of credit for customers Determining what action to take against on payment by a specific customer Personal Deciding on changes to be made in the organization Structure Determining who will be promoted to fill a vacated post at middle or lower level,in the organization Determining which workers will be on each shift
  10. 10. Anthony’s Framework: Differences in Information Required for three types of Planning and Control Process Information characteristic Strategic planning Management Control Operational Control Volume Low Intermediate High Levels of Aggregation High Intermediate Low Frequency of use of particular type of data Low Intermediate High Currency Requirement Low Intermediate High Accuracy Low Intermediate High Scope Wide Intermediate High Source Significant amount from external sources Mostly Internal Entirely internal Predictability with user Low Fairly high Very high Variability with user High Intermediate Low Distance of user from sources within organization Fair Fairly close close
  11. 11. Simon’s Framework <ul><li>Broken down the process of decision making into three stages </li></ul><ul><ul><li>Intelligence : stage in which decision maker recognizes that there is a problem or opportunity that requires him to make a decision </li></ul></ul><ul><ul><li>Design : decision maker determines the alternatives that are available to him to resolve the problem </li></ul></ul><ul><ul><li>Choice : finalizes from the alternatives. The selection process requires feasibility analysis or cost-benefit analysis </li></ul></ul>
  12. 12. The three major classes of decisions with Simon’s framework <ul><li>Programmed decisions: </li></ul><ul><ul><li>All stages are handled by following a preset well-defined procedure </li></ul></ul><ul><ul><li>Decisions are repetitive and routine that arise often </li></ul></ul><ul><ul><li>Mathematical model can be made in their entirety </li></ul></ul><ul><ul><li>Eg: inventory-ordering decisions </li></ul></ul><ul><li>Non-programmed decision: </li></ul><ul><ul><li>Difficult to structure in logical-mathematical terms </li></ul></ul><ul><ul><li>Cannot be handled by following preset or well-defined procedures </li></ul></ul><ul><ul><li>Not repetitive in nature and require fresh intelligence,design and choice phases to be executed </li></ul></ul><ul><ul><li>Eg: setting up of a factory or new product </li></ul></ul><ul><li>Semi-programmed decision: </li></ul><ul><ul><li>At least one or maximum of two can be handled by preset well-defined procedures </li></ul></ul>
  13. 13. Zani’s model for MIS design <ul><li>Important determinants in the MIS design: </li></ul><ul><ul><li>Opportunities and risk </li></ul></ul><ul><ul><li>Company strategy </li></ul></ul><ul><ul><li>Company structure </li></ul></ul><ul><ul><li>Management and decision-making process </li></ul></ul><ul><ul><li>Available technology </li></ul></ul><ul><ul><li>Available information sources </li></ul></ul>
  14. 14. Factors Facilitating Implementation of MIS <ul><li>Involvement of top management in the computerization effort, in defining the purpose and goals of computers within the organization </li></ul><ul><li>Selection of an EDP manager who has political skills to involve managers in choosing application areas, identifying information needs and designing reports </li></ul><ul><li>A computer staff, who has interdisciplinary skills in computers, management and operations management </li></ul><ul><li>A balanced expenditure in hardware and software </li></ul>
  15. 15. Organization and IS: A 2-way relationship <ul><li>An organization is an open system that adjust according to the changing environment </li></ul><ul><li>While designing MIS for an organization the requirements to be kept in mind: </li></ul><ul><ul><li>MIS should be designed viewing organization as a system </li></ul></ul><ul><ul><li>Should give weightage to human side of the organization and its culture </li></ul></ul><ul><ul><li>Should give reports to main decision maker </li></ul></ul><ul><ul><li>Should give control information to the higher management, if organization follow hierarchy with a high degree of centralization </li></ul></ul><ul><ul><li>should give functional design if the organization is structure on a functional basis </li></ul></ul><ul><ul><li>If the organization works on a standard system where rules, policies, systems and procedures have been laid down, then these becomes part of MIS </li></ul></ul>
  16. 16. Unit 6: Information Systems Economics <ul><li>Data </li></ul><ul><ul><li>Raw material </li></ul></ul><ul><li>Information </li></ul><ul><ul><li>Processed data </li></ul></ul><ul><ul><li>Defied as data that have been put into a meaningful and useful context and communicated to a recipient who uses it to make decisions. It reduces uncertainty, reveals additional alternatives or helps eliminate irrelevant or poor ones </li></ul></ul>
  17. 17. Data-Information-Knowledge
  18. 18. Desired characteristics of Information <ul><li>Accurate </li></ul><ul><li>Complete </li></ul><ul><li>Economical </li></ul><ul><li>Flexibility </li></ul><ul><li>Reliable and verifiable </li></ul><ul><li>Relevant </li></ul><ul><li>Simple </li></ul><ul><li>Timely </li></ul><ul><li>Accessible and Secure </li></ul>
  19. 19. Generate Manipulate Synthesize Sort store Retrieve Store Destroy Utilize Data Life Cycle
  20. 20. IS: Success and Failures <ul><li>A project is success </li></ul><ul><ul><li>If it is completed within time and budget </li></ul></ul><ul><ul><li>It must meet needs of its users and organization </li></ul></ul><ul><li>Over a period of time the success and failure factors identified are: </li></ul><ul><li>Project scope: should be stable and well understood </li></ul><ul><li>An MIS project that aims for BPR are of high-risk but at the same time have high potential for </li></ul><ul><li>major benefits </li></ul><ul><li>Technology development platform and development language exposure </li></ul><ul><li>Support from the management </li></ul><ul><li>Objective of MIS must be in tune with that of the organization </li></ul><ul><li>System should be user friendly and the response time should be reasonable </li></ul><ul><li>MIS should be developed with a clear objective and that must be documented before the implementation </li></ul><ul><li>Data policy should be formulated </li></ul><ul><li>Quality control plan must be in place </li></ul><ul><li>concerned people must be adequately trained </li></ul><ul><li>System should be properly documented so that attrition does not affect MIS adversely </li></ul>
  21. 21. Thank You