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Data, Decision Making, MIS Planning and Design
1. Data and Information, MIS, Decision
Making and role of MIS, Planning for
MIS; System Development
Methodologies; Conceptual and
detailed designs of MIS
2. Qualitative v/s Quantitative
Qualitative data is descriptive information
(it describes something)
Quantitative data, is numerical information
(numbers).
3. Example: What do we know
about Dog?
Qualitative:
•He is brown and black
•He has long hair
•He has lots of energy
Quantitative:
•Discrete:
•He has 4 legs
•He has 2 brothers
•Continuous:
•He weighs 25.5 kg
•He is 565 mm tall
4. Simply speaking data is raw facts and
figures, which has no meaning. After
processing, the data, it becomes a
meaningful information.
Data processing Information
5. What is Information?
Data arranged in certain order and form which is useful to the
recipient is called Information.
Processed data is information.
Information depends on data to provide an output.
Information is specific in nature and has a logical meaning.
For example: the weight of students are 60, 70, 57, 41, 36, 44, 53..
………. What is average weight?
.. The average weight is 51.57
The answer 51.57 is meaningful data for recipient, which
represent as information.
6. Once the information is processed, one
gets the knowledge.
Information processing Knowledge
7.
8. Types of Information Systems
1. Transaction Processing System (TPS)
2. Management Information System (MIS)
3. Executive Information System (EIS)/Executive
Support System (ESS)
4. Decision Support System (DSS)
5. Expert System (ES)
6. Communication Support System (CSS)
7. Office Support System (OSS)/Office
Automation System (OAS)
9. M I S
1. Management – is the process of planning and regulating the
activates of an enterprise.
To analyses the management process, it is better to know
what the manager does. Functions of management are –
A. Planning B. Organizing C. Staffing D. Direction
E. Co-Ordination F. Control
2. Information – consists of data that have been retrieved,
processed or otherwise used for informative purposes.
3. Systems – is a set of element joined together for a common
purpose.
10. Definition
(Management Information System) An
information system that integrates
data from all the departments, it
serves and provides, operations and
management with the information
they require.
11. Sources for Management Information
System
Corporate
databases
of
internal
data
Databases
of
external
data
Databases
of
valid
transactions
Operational
databases
Transaction
processing
systems
Management
information
systems
Decision
support
systems
Executive
support
systems
Expert
systems
Business
transactions
Input and
error list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled
reports
Employees
Corporate
intranet
Application
databases
12. Outputs of a Management Information System
Scheduled reports
Produced periodically, or on a schedule (daily, weekly, monthly)
Daily Sales Detail Report
Prepared: 08/10/xx
Order
#
Customer
ID
Sales Rep
ID
Ship
Date Quantity Item # Amount
P12453 C89321 CAR 08/12/96 144 P1234 $3,214
P12453 C89321 CAR 08/12/96 288 P3214 $5,660
P12453 C03214 GWA 08/13/96 12 P4902 $1,224
P12455 C52313 SAK 08/12/96 24 P4012 $2,448
P12456 C34123 JMW 08J/13/96 144 P3214 $720
13. Key-indicator report
Summarizes the previous day’s critical activities.
Typically available at the beginning of each day
Daily Sales Key Indicator Report
This
Month
Last
Month
Last
Year
Total Orders Month to Date $1,808 $1,694 $1,014
Forecasted Sales for the Month $2,406 $2,224 $2,608
14. Demand report
Gives certain information at a manager’s
request
Daily Sales by Sales Rep Summary Report
Prepared: 08/10/xx
Sales Rep ID Amount
CAR $42,345
GWA $38,950
SAK $22,100
JWN $12,350
15. Exception report
Automatically produced when a situation is unusual or
requires management action
Daily Sales Exception Report – ORDERS OVER $10,000
Prepared: 08/10/xx
Order
#
Customer
ID
Sales
Rep ID
Ship
Date Quantit
y
Item # Amount
P12453 C89321 CAR 08/12/96 144 P1234 $13,214
P12453 C89321 CAR 08/12/96 288 P3214 $15,660
P12453 C03214 GWA 08/13/96 12 P4902 $11,224
16. Drill down Reports
Provide detailed data about a situation.
Earnings by Quarter (Millions)
Actual Forecast Variance
2ND Qtr 1999 $12.6 $11.8 6.8%
1st Qtr 1999 $10.8 $10.7 0.9%
4th Qtr 1998 $14.3 $14.5 -1.4%
3rd Qtr 1998 $12.8 $13.3 -3.0%
17. Functional Aspects
MIS is an integrated collection of
functional information systems,
each supporting particular
functional are as.
19. Role of MIS
1. It helps in minimizing risk in decision-making
2. It processes the data and derives information out of them.
3. It provides information about the various aspects of business.
4. It helps the executives to avail the information regarding the
functional areas quickly.
5. The database helps in conducting research. The data stored are
used as secondary data.
6. It provides sound information regarding the financial health of
business organization.
7. It helps in preparing corporate report.
8. It helps the HRD manager in finding out the requirement of the
human resource, their wages and salary, performance appraisal,
training, promotion, absenteeism and employee’s turnover,
which
20. Advantages of MIS
1. Facilitates Planning
2. Minimizes Information Overload
3. MIS Encourages Decentralization
4. Brings Coordination
5. Makes Control Easier
21. Decision Making
DM is often defined as transformation of information into action.
The quality of decisions will largely depend upon the nature and
type of information provide for taking the decisions.
Decision is an act of choosing an optimum alternative from a set
of available alternatives in the influence of the information pool
regarding the environment of the decision.
“Decision making is the study of identifying and choosing
alternatives based on the values and preferences of the decision-
maker.
George R Terry, “DM is the selection based on certain criteria from
two or more alternatives”.
22. Process of Decision Making
Definition of the
Problem
Collection of data
Follow-up Actions
Formulation of a
model
Evaluation
Framing a Decision
23. Decisions at various levels of
Management
Strategic
Management
Tactical
Management
Operational
Management
24. Decisions/Role of MIS in Decision-
making
Customer queries
handling
Work group
performance
Analysis
R&D planning
Production
Scheduling
Capital Budgeting Product Planning
Inventory Control Allocating Budgets Financial Structure
Planning
Unstructured or
Non-Prog. Dec.
Semi-Structured
Structured or
Programmed
Decisions
Operational
Control
Management
Control
Strategic Planning
25. The Role of Management Information
Systems in Decision Making
Information Access
Data Collection
Collaboration
Interpretation
Presentation
26. Components of Management
Information Systems
1. People – End users and IS Specialist (System analysts, software
developers, system operators etc..
2. Hardware – Computer Systems and Computer Peripherals (Keyboard or
electronic mouse for input of data and commands etc..
3. Software – System software and Application Software (Sales analysis
program, a word processing program
4. Data –
5. Network – Communications Media and Network Infrastructure
27. Planning for MIS
Plan for development and implementation is basic
necessity.
In MIS the information is recognize as a major
resources like capital, time and capacity.
If this resource is to be managed well, it calls upon
the management to plan for it and control it for the
appropriate use in the organization.
Open system-Railway systems.
29. Steps in developing MIS
Identification of the stage of information system in the
organization.
Identification of the application of organizational IS.
Evolution of each of this application based on the established
evolution criteria.
Establishing a priority ranking for these applications.
Determining the optimum architecture of IS for serving the
top priority applications.
Ex- ATM
30. Strategy for Plan achievement
Designer has to take a number of strategic decisions for
the achievement of the MIS goals and objectives.
1. Development Strategy: Online, batch, or real time
technology platform.
2. System Development Strategy: Approaches to system
development like operational V/s functional, distributed V/s
decentralized etc.
3. Resources for System Development: Internal V/s
external, customized V/s use of packages
4. Manpower Composition: Analyst, programmer skills.
31. System Development Methodologies
What is a Methodology?
A methodology is the physical implementation of the
logical life cycle that incorporates (1) Step-by-step
activities for each phase, (2) Individual and group roles
to be played in each activity, (3) Deliverables and quality
standards for each activity, and (4) Tools and techniques
to be used for each activity.
" a standard process followed by an organization to
conduct all the steps necessary to analyze, design,
implement, and maintain information systems"
33. Structured methodologies
It views every software system as having some inputs,
which are converted into the desired outputs by the
software system.
Focus is on flow, use and transformation of data in an
information system.
Involves creating graphical representations such as data
flow diagrams and charts
Data are tracked from sources, through intermediate
steps and to final destinations
The central theme of structured system development is
based on the data will determine the program structure.
34. Tools for Structured Development
Methodologies
1. Data flow diagrams(DFD): A DFD is graphical
representation of the flow of data through an
information system.
2. Decision trees: They are simple knowledge
representation and they classify examples Into a
finite number of classes, the nodes are labelled
with attribute names, the edges are labelled
with possible values for this attribute and leaves
labelled with different classes.
35. Object-Oriented System
It focuses attention not on the function performed by
the program but instead on the data that are to be
manipulated by the program.
The system is viewed as a collection of objects.
The system state is decentralized among the objects and
each object manages its own state information.
The main components of object-oriented design are:
Objects: correspond to real world entities.
Messages: communication with objects.
Classes: templates for defining families of objects.
36. Example:
Customer order is an object made up of following
information inputs:
1. Customer address
2. Product name and quality ordered
3. Delivery schedule
4. Customer sales tax number
5. Terms of payment
6. Mode of transport
7. Price and discount, Additional charges
37. MIS DESIGN
Systems design is the process or art of
defining the architecture, components,
modules, interfaces and data for a system to
satisfy the specified requirements.
39. CONCEPTUAL DESIGN
It is concerned with the specifications of major
features of the system that would meet the objectives.
It is like blueprint.
It covers the total organizational MIS.
40. Stages of conceptual design
Define the problem.
Set system objectives.
Establish system constraints
Determine the information needs.
Determine the information sources.
Develop the alternatives and choose the best.
Document the conceptual system design
document.
41. DETAILED DESIGNS OF MIS
It takes the conceptual design blueprint and produces
the program specifications, physical file or data base.
MIS and the operating procedures are being adjusted to
each other and staff learn and relearn the system.
This provides a solution by translating the system
requirements into the ways of putting them to work.
