Management information system


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  • Data can take many forms, including traditional alphanumeric data- numbers alphabetical and other characters- text data -sentences and paragraphs used in written communication, image data – graphic shapes and figures & audio data- human voice and other sounds.
  • Def: Information as data that have been converted into a meaningful and useful context for specific end users. Thus subjected to value added process (data processing or information processing) From aggregated, manipulated and organized- calculating, comparing, sorting, classifying and summarizing Content analysed and evaluated Placed in proper context for a human user.
  • Field – grouping charactes representing characteristic of person, place, thing or event- name field Record- collection of interrelated fields- name field, social security no, department field etc. File- collection of interrelated records- payroll file Database- An integrated collection of interrelated records or files- personnel data base- payroll, performance review, carrer development etc
  • Strategies are Cost leadership, Differentiation, Innovation, Growth, Alliance and other strategies.
  • Valuable asset-no. 9. Enhance productivity, stimulate innovative development and improve customer relations.
  • To define problems and opportunities and develop solutions Studying a problem and formulating a solution involve the following
  • Symptom- Sales of a company’s products are declining Problem- Sales persons are loosing orders because they cannot get current information on product prices & availability Opportunity- Increase sales significantly if sales persons could receive instant responses to requests for price quotations & product availability
  • Peter Senge- Management consultant & author
  • Management information system

    1. 1. Management Information System
    2. 2. Need of Business in IT Support of strategic advantage Support of managerial decision making Support of Business operations
    3. 3. Fundamental reasons for use of IT <ul><li>Support of business operations </li></ul><ul><ul><li>Eg:- Retail stores to record customer purchases, keep track of inventory,employees pay, buy new merchandise & evaluate sales trends. </li></ul></ul><ul><li>Support of managerial decision making </li></ul><ul><ul><li>Eg:- Decisions - lines of merchandise - added or discontinued, or kind of investment they require- after analysis. </li></ul></ul><ul><li>Support of strategic competitive advantage </li></ul><ul><ul><li>Require innovative use of information technology eg:-computerized touch-screen catalog ordering system, telephone ordering system, Internet-based computer shopping network-ease of ordering-comparative advantage over competitors. </li></ul></ul>
    4. 4. <ul><li>The rapid pace of change in today’s business environment-IS & IT vital components that help keep an enterprise on target to meet its business goals. </li></ul><ul><li>Internetworking of computing </li></ul><ul><li>Internetworking the enterprise </li></ul><ul><li>Globalization,BPR, & using IT for competitive advantage. </li></ul><ul><li>These are the major reasons for businesses needing IT. </li></ul>
    5. 5. Types of Information Systems Transaction Processing Systems Process Control Systems Enterprise Collaboration Systems Operations Support Systems Management Information Systems Decision Support Systems Executive Information Systems Management Support Systems Information Systems
    6. 6. Operations Support Systems <ul><li>Role is to efficiently process business transactions, control industrial processes, support enterprise communications and collaboration, and update corporate databases </li></ul><ul><li>Examples </li></ul><ul><ul><li>Transaction Processing Systems – record and process data from business transactions in one of two ways – batch process and real-time process </li></ul></ul><ul><ul><li>Process Control Systems – monitor and control physical processes such as in petroleum refining </li></ul></ul><ul><ul><li>Enterprise Collaboration Systems – enhance team and workgroup communications and productivity </li></ul></ul>
    7. 7. Management Support Systems <ul><li>Focus on providing information and support for effective decision making by management </li></ul><ul><li>Examples </li></ul><ul><ul><li>Management Information Systems – provide information in forms of reports and displays to managers and other professionals </li></ul></ul><ul><ul><li>Decision Support Systems – gives direct computer support during the decision making process </li></ul></ul><ul><ul><li>Executive Information Systems – provide critical information from a wide variety of internal and external sources in an easy to use displays </li></ul></ul>
    8. 8. Other Classifications <ul><li>Expert Systems – provide expert advice for operational chores like equipment diagnostics </li></ul><ul><li>Knowledge Management Systems – support the creation, organization, and distribution of business knowledge to employees and managers </li></ul><ul><li>Functional Information Systems – focus on operational and managerial applications in support of basic business functions such as accounting </li></ul><ul><li>Cross Functional/Integrated Information Systems – </li></ul>
    11. 11. Cont………….. <ul><li>Providing Information system for all levels of mgmt DM is thus not easy task </li></ul><ul><li>Conceptually several major types of IS needed </li></ul><ul><li>MIS,DSS,ESS </li></ul><ul><li>Developing such mgmt support systems has been one of the primary thrusts of the business use of IT </li></ul>
    12. 12. System- Definition <ul><li>Simply defined as an orderly grouping of interrelated or interacting elements linked together according to a plan to achieve a specific objective . </li></ul><ul><ul><li>Eg:- Biological system- Human body </li></ul></ul><ul><ul><li>Technological system- Oil refinery </li></ul></ul><ul><ul><li>Socioeconomic system- Business Orgn. </li></ul></ul>
    13. 13. Characteristics of system <ul><li>Organization - Hierarchal relationship </li></ul><ul><li>Interaction- Purchasing with production, advt-sales </li></ul><ul><li>Interdependence-o/p of subsystem to be I/p of another system </li></ul><ul><li>Integration-holism, how linked together, synergic effect </li></ul><ul><li>Central objective - real &stated </li></ul><ul><li>Boundary </li></ul><ul><li>Adaptive nature </li></ul><ul><ul><ul><li>Dynamic & cybernetic </li></ul></ul></ul>
    14. 14. FinanaciaFinanacial Institutions Fiana contro a Management Information System Economic Resources People,Money, material, Machine, Land, Facilities,Energy, Information Organizational Processes: Market, Develop,Produce and deliver products and servicessupport customers other processes Goods and services: Products Services Payments Contributions Information Other effects
    15. 15. IS Model Control of system Performance Input of data resources Processing data into information Output of information Products Storage of Data Resources End users & IS specialists Data & Knowledge bases Programs & Procedures Communications media & n/w support Machines & media People resources Data Resources Hardware resources Software resources Network resources
    16. 16. Information system resources <ul><li>An information system model expresses a fundamental conceptual framework for the major components and activities of information systems. </li></ul><ul><li>An information system depends on the resources of people, hardware, software, data & networks to perform input,processing, output, storage, and control activities that convert data resources into information products. </li></ul>
    17. 17. Information System Model <ul><li>Expresses a fundamental conceptual framework for the major components and activities of IS </li></ul><ul><li>Highlights the relationships among the components and activities of Information Systems </li></ul><ul><li>Provides a framework that emphasizes 4 major concepts that can be applied to all types of Information systems </li></ul><ul><ul><li>People, h/w, s/w, n/w and data – 5 basic resources of IS </li></ul></ul><ul><ul><li>People resources – end users and IS specialists h/w resource – machines and media s/w resource – programmes and procedures n/w resource – communications media and network support data resource – data and knowledge bases </li></ul></ul><ul><ul><li>Data resources – information processing activities – variety of information products for end users </li></ul></ul><ul><ul><li>Information processing – system activities of I/P, Processing, O/P, Storage and Control </li></ul></ul>
    18. 18. People Resource <ul><li>End Users – use info. system/uses info. it produces </li></ul><ul><ul><li>Customers </li></ul></ul><ul><ul><li>Sales persons </li></ul></ul><ul><ul><li>Engineers </li></ul></ul><ul><ul><li>Clerks & accountants </li></ul></ul><ul><ul><li>Managers </li></ul></ul><ul><ul><li>Knowledge workers </li></ul></ul><ul><li>Is Specialists- develop & operate IS </li></ul><ul><ul><li>System Analysts </li></ul></ul><ul><ul><li>System Developers </li></ul></ul><ul><ul><li>System Operators </li></ul></ul><ul><ul><li>Other managerial, clerical & technical personnel </li></ul></ul>
    19. 19. Hardware Resource <ul><li>Machines </li></ul><ul><ul><li>Computers </li></ul></ul><ul><ul><li>Other equipments </li></ul></ul><ul><ul><ul><li>Video monitors </li></ul></ul></ul><ul><ul><ul><li>Magnetic disk drives </li></ul></ul></ul><ul><ul><ul><li>Printers </li></ul></ul></ul><ul><ul><ul><li>Optical scanners </li></ul></ul></ul><ul><li>All data media </li></ul><ul><ul><li>Floppy disks, magnetic tapes, optical disc, plastic cards and paper forms </li></ul></ul><ul><li>H/W in computer based IS – computer systems and computer peripherals </li></ul>
    20. 20. <ul><li>Hardware Resources </li></ul><ul><ul><li>Machines , such as computers and other devices, and media , such as paper, disks </li></ul></ul><ul><ul><ul><li>Computer Systems cpu containing micro processors and a variety of interconnected peripheral devices Eg:- the personal computer (desktop), midrange computer systems, large mainframe cs, or laptop </li></ul></ul></ul><ul><ul><ul><li>Computer peripherals such as keyboard& mouse for input of data &commands, monitor, scanner, printer for output of info. magnetic/ optical disks for storage of data resources. </li></ul></ul></ul>
    21. 21. Software Resources <ul><li>All sets of info. processing instructions </li></ul><ul><li>Programmes- operating instructions </li></ul><ul><li>Procedures-info.processing instructions </li></ul><ul><li>System software </li></ul><ul><ul><li>System management software eg: OS, </li></ul></ul><ul><ul><li>System development software eg: interpreters, compilers </li></ul></ul><ul><li>Application software </li></ul><ul><ul><li>General purpose application software eg: MS Word, MS Excel </li></ul></ul><ul><ul><li>Application specific software eg: student information system </li></ul></ul>
    22. 22. Data Resources <ul><li>Data constitute valuable organizational resources – managers & IS professionals </li></ul><ul><li>Data resource management technologies </li></ul><ul><li>Data resources/Data Storage </li></ul><ul><ul><li>Databases – hold processed and organized data </li></ul></ul><ul><ul><li>Knowledge bases – hold knowledge in a variety of forms such as facts, rules, and case examples of successful business practices </li></ul></ul>
    23. 23. Data Versus Information 1200 100 West Charles Mann 79154 TM Shoes Monthly Sales Report for West Region Sales Rep : Charles Mann Emp No. 79154 Item Qty Sold Price TM Shoes 1200 $100
    24. 24. Attributes of Information Quality
    25. 25. Data Versus Information <ul><li>Datum(s), data (p) </li></ul><ul><li>Valuable organizational resources </li></ul><ul><li>raw facts/ observations typically about physical phenomena/ business transactions </li></ul><ul><li>Objective measurement of the attributes of entities </li></ul><ul><li>Forms – alphanumeric - text data - image data - audio data </li></ul><ul><li>Information – processed, converted form. </li></ul><ul><li>For specific end users </li></ul><ul><li>Data  value added process </li></ul><ul><li>Apply facts, principles, knowledge, experience & intuitions. </li></ul><ul><li>Meaningful and useful form, placed in a proper context </li></ul><ul><li>Form – aggregated, manipulated and organised </li></ul><ul><li>Content is analysed and evaluated </li></ul>
    26. 26. Logical Data Elements Name Field Payroll Record Payroll File Personnel Database
    27. 27. Network Resources <ul><li>Network Resources </li></ul><ul><ul><li>Communication media – Twisted pair wire, coaxial cable, fiber-optic cable and microwave, cellular, and satellite wireless technologies </li></ul></ul><ul><ul><li>Network support – people and all of the hardware, software, and data technologies that directly support the operation and use of a communication network. </li></ul></ul><ul><ul><ul><li>Computers </li></ul></ul></ul><ul><ul><ul><li>Communication processors- modems, internetwork processors </li></ul></ul></ul><ul><ul><ul><li>Communication control software-network operating systems &internet browser packages </li></ul></ul></ul>
    28. 28. IS Activities <ul><li>Input - capturing and preparing data eg: optical scanning of bar-coded tags on merchandise </li></ul><ul><li>Processing eg: calculating employee pay, taxes and other payroll deductions </li></ul><ul><li>Output eg: producing reports and displays about sales performance </li></ul><ul><li>Storage eg: maintaining records on customers, employees and products </li></ul><ul><li>Control eg: generating audible signals to indicate proper entry of data </li></ul>
    29. 29. SM Executives & Directors TM Business Unit Managers & self-directed teams OM Operating Managers &SDT <ul><li>Decisions </li></ul>Information Structured SS US Information characteristics Ad Hoc Unscheduled Summarized Infrequent Forward Looking External Wide Scope Pre-specified Scheduled Detailed Frequent Historical Internal Narrow Focus Decision Structure
    30. 30. Difference Strategic Tactical Operational unstructured semistructured structured Situation pro. cannot be specified in advance situation-procedures –specified in advance Info-summarized, ad hoc, unscheduled, forecasts, and External intelligence-planning & policy making reports Pre specified internal reports-emphasis-detailed current &historical data comparisons.
    31. 31. Competetive Strategic concepts. <ul><li>A firm can survive and succeed in the long run- if it successfully develops strategies to confront </li></ul><ul><li>Five competitive forces that shape the structure of the competition in its industry. </li></ul><ul><ul><li>1.Rivalry of competitors within its industry </li></ul></ul><ul><ul><li>2.Threat of new entrants </li></ul></ul><ul><ul><li>3.Threat of substitutes </li></ul></ul><ul><ul><li>4.Bargaining power of customers </li></ul></ul><ul><ul><li>5.Bargaining power of suppliers. </li></ul></ul>
    32. 32. Rivalry among Existing Competitors Bargaining Power of Customers Bargaining Power of Suppliers Threat of Substitute Products or Services Threat of New Entrants
    33. 33. Strategic uses of Information Technology <ul><li>Using Internet technologies </li></ul><ul><li>Improving Business Processes </li></ul><ul><li>Promoting Business Innovation </li></ul><ul><li>Locking in Customers and suppliers </li></ul><ul><li>Creating switching costs </li></ul><ul><li>Raising Barriers to entry </li></ul><ul><li>Leveraging a Strategic IT Platform </li></ul><ul><li>Developing a Strategic Information Base. </li></ul><ul><li>Transcend communication barriers </li></ul>
    34. 34. How to use Internet technology <ul><li>Continually assess the strategic position of its applications </li></ul><ul><li>A strategic positioning matrix helps a Co. optimize the strategic impact of Internet technologies for electronic business and commerce applications. matrix </li></ul>
    35. 35. High Low High External Drivers Customer connectivity/competition/ technology Internal Drivers E-business processes/collaboration/cost containment Global Market penetration Product and service transformation Cost and efficiency improvements Performance Improvement in Business Effectiveness
    36. 36. The Value Chain <ul><li>Views a firm as a series, chain, or network of activities that add value to its products and services. </li></ul><ul><ul><li>Improved administrative coordination </li></ul></ul><ul><ul><li>Training </li></ul></ul><ul><ul><li>Joint design of products and processes </li></ul></ul><ul><ul><li>Improved procurement processes </li></ul></ul><ul><ul><li>JIT inventory </li></ul></ul><ul><ul><li>Order processing systems </li></ul></ul>
    37. 37. Value Chain (continued)
    38. 38. Systems Approach to Problem Solving <ul><li>Uses systems orientation </li></ul><ul><li>interrelated activities </li></ul>
    39. 39. <ul><li>1. Recognize and define a problem or opportunity using systems thinking </li></ul><ul><li>2. Develop and evaluate alternative system solutions </li></ul><ul><li>3. Select the system solution that best meets your requirement </li></ul><ul><li>4. Design the selected system solution </li></ul><ul><li>5. Implement and evaluate the success of the designed system </li></ul><ul><li>How it help develop solutions to business problems? </li></ul>
    40. 40. Define the problem Develop alternative solutions Select the solution Design the solution Implement the solution
    41. 41. 1. Defining problems and Opportunities <ul><li>First step- Identify problems & solutions </li></ul><ul><li>Problem- A basic condition that is causing undesirable results </li></ul><ul><li>Symptoms- separate from problem are merely signals of an underlying cause or problem </li></ul><ul><li>Opportunity- a basic condition that presents the potential for desirable results </li></ul>
    42. 42. <ul><li>Using systems thinking to understand a problem/opportunity is one of the important aspects of the systems approach </li></ul><ul><li>Peter Senge calls- fifth discipline </li></ul><ul><li>Senge argues mastering ST is vital to personal fulfillment & business success in a world of constant change. </li></ul><ul><li>The essence of ST is seeing the forests and the trees in any situation by: </li></ul>
    43. 43. <ul><li>Seeing interrelationships among systems rather than linear cause-and – effect chains whenever events occur </li></ul><ul><li>Seeing processes of change among systems rather than discrete “snapshots” of change,whenever changes occur. </li></ul><ul><li>Practice- find systems,subsystems& their components of systems in any situation you are studying, this ensures imp. factors and their interrelationships are considered. Systems context, systemic view of a situation </li></ul>
    44. 44. 2. DEVELOPING ALTERNATIVE SOLUTIONS <ul><li>Several different ways to solve problem /pursue opportunity. </li></ul><ul><li>Jumping from problem definition to a single not good idea </li></ul><ul><ul><li>Limits options </li></ul></ul><ul><ul><li>Robs the chance to consider the advantages & disadvantages of several alternatives. </li></ul></ul>
    45. 45. <ul><li>Sources of alternative solutions </li></ul><ul><ul><li>Experience, </li></ul></ul><ul><ul><li>solutions that have worked, or at least been considered in the past should be reconsidered, </li></ul></ul><ul><ul><li>advice of others,including recommendations of consultants and the suggestions of expert systems, </li></ul></ul><ul><ul><li>intuition & ingenuity for creative solutions </li></ul></ul><ul><ul><li>DS software ie, simulation process & </li></ul></ul><ul><ul><li>doing nothing. </li></ul></ul>
    46. 46. 3. Evaluating alternative solutions <ul><li>Alternative solutions evaluated to identify best solution </li></ul><ul><li>Goal of evaluation is to determine how well each alternative solution meets your business and personal requirements </li></ul><ul><ul><li>Requirements are key characteristics and capabilities that one feel is necessary for personal or business success </li></ul></ul>
    47. 47. <ul><li>Criteria may be ranked or weighted, based on their importance in meeting one’s requirements. Eg:- In sales related information problems criteria may be startup costs,operating costs,ease of use,and reliability. </li></ul><ul><li>Finally each alternative solution may be evaluated based on how well it meets your evaluation criteria. </li></ul>
    48. 48. 4. Selecting the best solution <ul><li>Once all AS evaluated,selecting the best solution begins. </li></ul><ul><li>Alternative solutions can be compared to each other because they have been evaluated using the same criteria. </li></ul><ul><ul><li>Eg:- 2 alternatives screened and ranked and selected or rejected based on individual criteria or overall scores. </li></ul></ul><ul><li>Possible that one might not always select the top-ranked alternative for reasons like unforeseen budget constraints,political developments,or legal challenges. </li></ul><ul><li>Doing nothing. </li></ul>
    49. 49. 5. Designing and Implementing a Solution <ul><li>Once solution selected , it must be designed and implemented. </li></ul><ul><li>Help- other business end users & technical staff to develop design specifications & Implementation plan </li></ul>
    50. 50. Design specification <ul><li>Describe the detailed characteristics and capabilities of the people,hardware, software & data resources and information system activities needed by a new system </li></ul><ul><ul><li>Eg:- Computer based sales support system </li></ul></ul><ul><ul><li>Types and sources of computer h/w,s/w to be acquired for the sales rep. </li></ul></ul><ul><ul><li>Operating procedures for the new sales support system </li></ul></ul>
    51. 51. Implementation Plan <ul><li>Specifies the resources,activities and timing needed for proper implementation </li></ul><ul><ul><li>Training of sales reps and other personnel </li></ul></ul><ul><ul><li>Conversion procedures and timetables for final implementation </li></ul></ul>
    52. 52. 6. Post implementation review. <ul><li>Final step </li></ul><ul><li>Implementation solution can fail to solve the problem for which it was developed as even well- designed solutions can be confounded by real world. </li></ul><ul><li>post implementation review process- results of implementation monitored and evaluated. </li></ul><ul><li>Success of a solution-reviewed after it is implemented. </li></ul>
    53. 53. <ul><li>The focus of this step is to determine if the implemented solution has indeed helped the firm and selected subsystems meet their system objectives. </li></ul><ul><li>If not systems approach cycle back to a previous step and find workable solution. </li></ul>