Information Technology for Managers

1. Information Technology for Managers
(22MBA302)
Module 1
Introduction to MIS
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Introduction
MIS is a system that gathers, processes, and disseminates
information in an organization.
It involves the people, processes, and technology needed to
manage and analyse data, facilitating decision-making and
other critical functions.
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The primary purpose of MIS is to provide timely, accurate, and
relevant information to support managerial decision-making at
various levels of an organization.
It helps in planning, controlling, and making informed choices
to achieve organizational goals.
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MIS comprises several key components, including hardware
(computers and servers), software (applications and
databases), data (information and knowledge), procedures
(standardized processes), and people (users and
administrators).
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MIS serves various functions within an organization, such as data
collection, storage, processing, retrieval, and
dissemination.
It also aids in report generation, data analysis, and forecasting.
MIS is designed to support decision-making at different levels of
management, including operational, tactical, and strategic.
It provides specific data for day-to-day operations, insights for
mid-level management, and long-term strategic planning.
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The benefits of MIS : Improved decision-making, increased
efficiency and productivity, better communication within
the organization, enhanced data security, and a competitive
edge in the market.
MIS is used in various industries and sectors, including finance,
healthcare, manufacturing, education, and government.
It supports functions such as inventory management, human
resources, sales, and customer relationship management.
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MIS is constantly evolving, with emerging trends like big data
analytics, artificial intelligence, cloud computing, and
mobile technologies playing an increasingly significant role in
enhancing the capabilities of MIS systems.
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Concept of Management Information System
MIS is a holistic approach to managing and leveraging
information to support decision-making, improve efficiency,
and achieve an organization's goals.
It combines technology, processes, and people to ensure that
information is collected, processed, and disseminated
effectively throughout the organization.
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Roles of Management Information System
Data Collection and Storage: Collects, stores, and manages
data from various sources.
Data Processing and Analysis: Processes data to convert it
into meaningful information.
Information Dissemination: Disseminate information to the
relevant personnel within the organization. This includes
creating and distributing reports, dashboards, and alerts to
support decision-making.
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Decision Support: Decision support by offering relevant
information to managers and executives. It assists in making
decisions from day-to-day operational decisions to strategic
planning.
Strategic Planning and Forecasting: Supports strategic planning
by providing historical data, current performance metrics, and
trend analysis. This helps in forecasting future trends and
making long-term decisions.
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Resource Allocation: Assists in resource allocation by
providing insights into the utilization of resources, such as
finances, human resources, and inventory. It ensures that
resources are allocated efficiently.
Performance Monitoring: Monitors and tracks the performance
of various departments and processes. Key performance
indicators (KPIs) and metrics are often used to assess and
evaluate performance.
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Automation of Routine Tasks: MIS automates routine and
repetitive tasks, reducing the need for manual data entry and
processing.
Integration of Business Functions: MIS integrates data and
processes across different functions and departments.
Enhancing Communication: MIS facilitates communication by
providing a centralized platform for sharing information. This
improves communication between various levels of
management and different departments.
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Security and Data Protection: MIS plays a crucial role in
securing sensitive and confidential information. It implements
security measures, access controls, and data encryption to
protect the integrity and confidentiality of data.
Cost Control: MIS assists in monitoring and controlling costs by
providing insights into expenses and budget management. It
helps in identifying areas where cost reductions or optimization
are possible.
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Feedback and Continuous Improvement: MIS systems provide
feedback on the effectiveness of various processes and
functions. This feedback is used for continuous improvement
and making necessary adjustments.
User Training and Support: MIS often includes user training and
support to ensure that employees can effectively use the system
and access the information they need.
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Strategic Alignment: An effective MIS system is aligned with the
organization's strategic goals and objectives. It ensures that
information and technology support the predominant mission of
the organization.
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Impacts of Management Information System
Improved Decision-Making: MIS provides timely, accurate, and
relevant information to decision-makers at all levels of an
organization. This leads to better-informed decisions, resulting in
increased efficiency and competitiveness.
Enhanced Efficiency: Automation of routine tasks, streamlined
processes, and quick access to information through MIS increase
operational efficiency. This, in turn, reduces manual errors and
resource wastage.
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Strategic Planning and Forecasting: MIS helps organizations in
long-term strategic planning by providing historical data, trend
analysis, and insights into market conditions. It aids in
forecasting future trends and making well-informed strategic
decisions.
Better Resource Allocation: MIS assists in resource allocation by
providing insights into the utilization of resources such as
finances, human resources, and inventory. This ensures that
resources are allocated efficiently to achieve organizational
goals.
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Cost Reduction: Through improved efficiency, resource allocation,
and process optimization, MIS can help organizations identify cost
reduction opportunities and reduce operational expenses.
Competitive Advantage: Organizations that effectively use MIS
often gain a competitive edge. They can respond quickly to market
changes, make data-driven decisions, and provide better
customer service.
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Customer satisfaction: MIS systems can be integrated with
customer relationship Management (CRM) software, enabling
organizations to better understand and serve their customers.
This leads to increased customer satisfaction and loyalty.
Data Security and Compliance: MIS systems include security
measures and access controls to protect sensitive data. This
ensures data integrity and confidentiality, helping organizations
comply with regulatory requirements.
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Feedback and Continuous Improvement: MIS systems offer
feedback on the effectiveness of various processes and
functions, allowing organizations to make continuous
improvements and adapt to changing conditions.
Global Reach: With the advent of the internet and cloud-based
MIS solutions, organizations can access and manage
information from anywhere in the world, enabling them to
operate on a global scale.
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Innovation and Technology Adoption: The use of MIS
encourages organizations to stay current with technology trends.
They are more likely to adopt new technologies and stay
innovative.
Economic Growth and Development: On a macroeconomic
level, the widespread use of MIS can contribute to economic
growth and development by enhancing the efficiency and
competitiveness of industries and sectors.
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Workforce Productivity: MIS systems can empower employees
by providing the tools and information they need to perform their
jobs effectively. This leads to increased workforce productivity.
Streamlined Communication: MIS promotes better
communication and collaboration within the organization by
providing a centralized platform for sharing information. This
reduces storage and enhances teamwork.
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Environmental Impact: By optimizing processes and reducing the
need for physical paperwork, MIS can have a positive
environmental impact by reducing paper waste and energy
consumption.
Flexibility and Adaptability: MIS systems can be tailored to meet
an organization's specific needs and can be adapted as the
organization evolves. This flexibility allows for scalability and
future growth.
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MIS & its users
1. Top Management:
• Executives: Senior executives, such as CEOs, CFOs, and
CIOs, use MIS for strategic decision-making. They rely on MIS
reports and analytics to set the overall direction of the
organization.
• Board of Directors: Board members use MIS to monitor the
organization's performance and assess the fulfillment of
strategic goals
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2. Middle Management:
• Managers and Department Heads: Middle managers use
MIS for tactical decision-making. They rely on data and
reports to plan and control their department's operations.
• Project Managers: Project managers use MIS to track
project progress, allocate resources, and ensure projects are
on schedule and within budget.
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3. Operational Management:
• Supervisors: Supervisors at the operational level use MIS
for day-to-day decision-making. They rely on real-time data
to manage teams, resources, and processes.
• Inventory Managers: These managers use MIS to monitor
inventory levels, track demand, and optimize stock levels.
• Human Resources Managers: HR managers use MIS to
manage employee data, payroll, recruitment, and
performance evaluations.
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4. Knowledge Workers:
• Analysts: Business analysts and data analysts use MIS to
perform data analysis, generate insights, and create reports
that support decision-making.
• Researchers: Researchers may use MIS to access data and
information for their research projects.
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5. External Users:
• Customers: Some organizations provide access to certain
MIS features or data to customers. Eg: Customers may use a
web portal to track their orders or access account
information.
• Suppliers: MIS can be used to facilitate communication and
data sharing with suppliers, optimizing the supply chain.
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6. IT Professionals:
• System Administrators: IT professionals manage and
maintain the MIS infrastructure, ensuring data security and
system performance.
• Database Administrators: DBAs manage the databases
within MIS, ensuring data integrity and availability.
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7. End Users:
• General Employees: They use the system to perform tasks,
access reports, and manage their work responsibilities.
• Sales Representatives: Sales teams use MIS to track leads,
manage customer relationships, and access sales data.
• Marketing Teams: Market research, campaign analysis, and
customer segmentation.
• Finance Teams: Financial reporting, budgeting, and
expense tracking.
• Customer Service Representatives: Customer data, track
service requests, and provide support.
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Components of an IS
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Figure . Components of IS (Source: Subudhi, 2013).

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Hardware: Hardware components are the physical devices that
make up the information system. Eg: Computers, servers,
network infrastructure, storage devices, input/output devices
(e.g., keyboards, monitors, printers), and mobile devices.
Software: Software includes the programs and applications that
run on the hardware. It comprises system software (like
operating systems) and application software (such as word
processors, databases, and custom business applications).
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Data: Data is the raw, unprocessed facts and figures that are
collected, stored, and processed by the information system. It
can be structured (in databases) or unstructured (like text
documents, images, and multimedia files).
Procedures: Procedures refer to the set of rules, guidelines, and
processes that govern how the system operates. These
procedures include data entry methods, security protocols,
backup and recovery processes, and workflow instructions.
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People: People are an integral component of an information
system. Eg: Data entry clerks, managers, system administrators,
and IT professionals who design, develop, and maintain.
Communication Networks: Information systems often rely on
communication networks to transmit data and facilitate data
exchange. This component includes the infrastructure, such as
wired or wireless networks, routers, switches, and
communication protocols.
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Database Management System (DBMS): A DBMS is a software
component specifically designed to manage and organize data in
a structured manner. It allows for data storage, retrieval, and
manipulation.
Feedback: Feedback mechanisms in the system collect
information on its performance and user interaction. This
information can be used to make improvements or modifications
to the system.
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Control Procedures: Control procedures ensure the security and
integrity of the data and the system. This includes access
controls, authentication, encryption, and data backup
procedures.
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Management as Control systems
Planning, organizing, staffing, directing and controlling are the
various steps in the management process.
All steps prior to a control are necessary but are not necessarily
self assuring the results unless it is followed by a strong control
mechanism.
Management experts have viewed these steps as management
control system.
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Control, is the process through which managers assure that
actual activities conform to the planned activities, Leading to
the achievement of the stated common goals.
The control process measures a progress towards those goals,
and enables the manager to detect, the deviations from the
original plan in time to take corrective actions before it is too late.
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Eg: Performance Management

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The management is a systematic effort to set the performance
standards.
In line with the performance objectives, to design the information
feedback systems,
To compare the actual performance with these predetermined
standards, to identify the deviations from the standards,
To measure its significance and to take corrective actions in case
of significant deviations.
This systematic effort is undertaken through the management
control system.
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MIS support to Organization Effectiveness
Data-Driven Decision-Making: MIS provides to the organizations
with accurate, timely, and relevant data that decision-makers can
use to make informed and data-driven decisions. This leads to
better choices in resource allocation, strategy development, and
operational improvements.
Strategic Planning: MIS helps organizations in strategic planning
by providing historical and current data that can be used to
analyze trends, identify opportunities, and assess threats. This
allows for the development of well-informed, long-term
strategies.
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Performance Monitoring: MIS enables organizations to track key
performance indicators (KPIs) and monitor progress toward
goals and objectives in real-time. It helps identify areas where
performance is falling short and where corrective actions are
needed.
Efficiency and Productivity: By streamlining processes,
automating routine tasks, and reducing manual data entry, MIS
can enhance efficiency and productivity within an organization.
This leads to cost savings and improved resource utilization.
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Improved Communication: MIS facilitates the efficient flow of
information within an organization. It ensures that relevant data
is shared among different departments, teams, and management
levels, which promotes collaboration and coordination.
Integration of Business Functions: MIS often integrates various
business functions, such as finance, marketing, sales, and
operations, into a unified system. This integration allows for a
holistic view of the organization and improves decision-making
across functions.
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Forecasting and Planning: MIS supports forecasting and
scenario analysis, which helps organizations anticipate future
trends, market changes, and potential issues. This proactive
approach allows for better planning and preparedness.
Customer Relationship Management (CRM): Many
organizations use MIS to manage customer relationships
effectively. This includes collecting and analyzing customer data
to provide better products, services, and personalized
experiences.
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Inventory and Supply Chain Management: MIS can help
organizations to optimize inventory levels, track shipments, and
manage their supply chains more efficiently. This leads to
reduced costs and improved customer service.
Compliance and Risk Management: MIS systems can assist
organizations in monitoring regulatory compliance and managing
risks. This is especially crucial in industries with strict
regulations, such as healthcare and finance.
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Employee Performance and Engagement: MIS can support
human resource functions by tracking employee performance,
facilitating talent management, and improving engagement
through data-driven HR initiatives.
Competitive Advantage: Organizations that effectively use MIS
can gain a competitive advantage by responding quickly to
market changes, identifying emerging trends, and delivering
superior customer experiences.
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Cost Control: MIS helps organizations identify cost-saving
opportunities by analyzing data related to expenses, operational
inefficiencies, and resource utilization.
Feedback Loop: MIS provides a feedback loop for organizations,
allowing them to continuously monitor and adjust their operations
and strategies to align with changing conditions and customer
preferences.
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Innovation and Adaptation: MIS can support innovation by
providing insights into market demands and opportunities for
new product development or service improvement.
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Use of MIS
MIS for
• E- business
• Digital Firms
• E-Commerce,
• E – Communication
• E-Collaborations
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MIS for E- business
MIS are integral part for the success of e-businesses, which are
organizations that conduct their operations primarily or entirely
over the internet.
MIS for e-business plays a crucial role in managing and leveraging
digital data and technology to achieve business objectives.
MIS plays a fundamental role in the success of e-businesses
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Eg: Amazon, Alibaba Group,
eBay, Shopify, Flipkart etc

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Data Collection and Analysis: MIS gathers and analyzes
data from various online sources, including websites, social
media, customer interactions, and transaction records. This
data is used to understand customer behavior, track sales,
and assess the performance of online assets.
E-commerce Support: MIS systems are critical for managing
e-commerce operations. They handle online sales, payment
processing, order fulfillment, and inventory management.
They also ensure the security of online transactions.
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Customer Relationship Management (e-CRM): MIS supports e-
CRM by capturing and analyzing customer data. This information
helps in personalizing marketing, improving customer support,
and building long-term relationships with online customers.
Web Analytics: MIS tools provide web analytics capabilities,
allowing e-businesses to track website traffic, user behavior, and
the effectiveness of online marketing campaigns. This data helps
in optimizing the user experience and online marketing
strategies.
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Inventory and Supply Chain Management: MIS helps e-
businesses to manage inventory levels and streamline supply
chain operations by tracking product availability, demand, and
supplier relationships.
Marketing Automation: MIS can automate marketing activities,
such as email campaigns, social media posts, and personalized
product recommendations, based on customer data and
behavior.
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Mobile and App Integration: As mobile devices and apps
become increasingly important in e-business, MIS systems must
integrate with mobile platforms to provide a seamless user
experience.
Performance Monitoring: MIS tracks key performance indicators
(KPIs) specific to e-business, such as website traffic, conversion
rates, bounce rates, and customer acquisition costs.
Cloud Computing: Many e-businesses leverage cloud-based MIS
solutions to store data, access software, and scale their
operations as needed.
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Social Media Management: MIS can help e-businesses manage
their presence on social media platforms, monitor mentions, and
engage with customers.
Content Management: E-businesses often require content
management systems (CMS) as part of their MIS to update
website content, product listings, and other digital assets.
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Customer Feedback and Reviews: MIS systems can collect and
analyze customer feedback and reviews, helping e-businesses
understand customer sentiment and make improvements.
Business Intelligence: MIS tools provide e-businesses with
business intelligence capabilities, including data visualization,
reporting, and data mining to gain insights from their online data.
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MIS for Digital Firms
Digital firms are specialized information systems that cater to
organizations whose core business models and operations are
heavily reliant on digital technologies and data.
Digital firms, often referred to as "born digital" or "digital-native"
companies, leverage digital assets and technology to deliver
their products and services.
Eg: Google, Facebook (Meta Platform), Adobe, IBM,Oracle, SAP
etc
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Digital Business Models: MIS for digital firms support business
models built around digital platforms, online services, or digital
products. These systems facilitate the management of digital
content, e-commerce transactions, and data-driven services.
Data Analytics: Digital firms heavily rely on data analytics to gain
insights into customer behavior, market trends, and user
engagement. MIS collects and processes data for analysis,
enabling data-driven decision-making.
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Customer Engagement: MIS in digital firms supports customer
engagement by providing data on user interactions, preferences,
and feedback. This information is crucial for personalizing
experiences and enhancing customer satisfaction.
E-commerce and Payment Processing: Digital firms often
engage in e-commerce activities. MIS systems manage online
sales, secure payment processing, and oversee order fulfillment.
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Content Management: Digital firms frequently rely on Content
Management Systems (CMS) within their MIS to maintain and
update digital content, including blogs, videos, and other digital
assets.
Mobile Integration: Many digital firms have a strong mobile
presence. MIS should integrate with mobile platforms, ensuring
that the user experience is consistent and user-friendly across
various devices.
Cloud Computing: Digital firms often employ cloud-based MIS
solutions to store data, access software, and scale their
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Security and Data Protection: MIS in digital firms is responsible
for ensuring the security of online transactions, customer data,
and intellectual property. Strong security measures are essential
to maintain trust with customers and protect sensitive
information.
Social Media and Community Management: Digital firms
frequently use social media platforms for marketing and
engagement. MIS tools help manage social media accounts,
monitor mentions, and engage with the online community.
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Performance Monitoring: Digital firms rely on MIS to track key
performance indicators (KPIs) specific to their digital operations,
such as user acquisition costs, customer lifetime value, and
conversion rates.
Big Data and Machine Learning: MIS systems for digital firms
often incorporate big data and machine learning capabilities to
handle large volumes of data and extract valuable insights.
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Internet of Things (IoT): Some digital firms operate in IoT
domains and rely on MIS to collect, analyze, and act upon data
generated by connected devices.
Business Intelligence: MIS tools provide digital firms with
business intelligence capabilities, including data visualization,
reporting, and data mining to gain insights from their digital data.
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MIS for E-Commerce
MIS play a pivotal role in the success of e-commerce
businesses. MIS are essential for managing and optimizing
various aspects of online retail operations.
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Order Management: MIS facilitates order processing, tracking,
and fulfillment. It helps e-commerce businesses efficiently
manage and monitor the entire order lifecycle, from order
placement to delivery.
Inventory Management: MIS tracks inventory levels in real-time,
ensuring that products are available when customers want to
purchase them. This helps prevent overstocking and
understocking issues.
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Customer Relationship Management (CRM): MIS systems
collect and analyze customer data to provide insights into
customer behavior, preferences, and purchase history. This
information allows e-commerce businesses to tailor marketing
efforts and enhance customer experiences.
E-commerce Platforms: MIS integrates with e-commerce
platforms to manage product listings, pricing, and online store
functionality. It ensures that the online store is up-to-date and
user-friendly.
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Payment Processing: MIS handles payment processing securely,
including managing payment gateways and encryption to protect
customer financial information.
Security and Fraud Prevention: MIS is responsible for protecting
the e-commerce website and customer data against cyber
threats, including fraud prevention measures.
Web Analytics: MIS provides web analytics capabilities to track
website traffic, user behavior, and the effectiveness of online
marketing efforts. This data helps optimize the website and
marketing strategies.
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Marketing Automation: MIS supports marketing automation,
including email campaigns, personalized product
recommendations, and targeted advertising based on customer
data.
Supply Chain and Vendor Management: MIS assists in
managing relationships with suppliers and logistics partners. It
helps optimize the supply chain and reduce operational costs.
Returns and Refunds: MIS helps manage the returns and
refunds process, including tracking returned items and issuing
refunds to customers.
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Customer Support: MIS systems often include customer support
tools, enabling e-commerce businesses to manage customer
inquiries, complaints, and support requests efficiently.
Personalization: MIS can use customer data to personalize the
shopping experience, displaying product recommendations and
content tailored to individual preferences.
Performance Monitoring: MIS tracks key performance indicators
(KPIs) specific to e-commerce, such as conversion rates,
shopping cart rejection rates, and customer acquisition costs.
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Content Management: E-commerce websites require content
management systems (CMS) within MIS to update product
listings, images, and other digital assets.
Business Intelligence: MIS provides e-commerce businesses
with business intelligence capabilities, including data
visualization, reporting, and data mining to gain insights from
their online data.
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MIS for E – Communication
MIS play a significant role in supporting and optimizing e-
communication, which includes various digital communication
technologies and platforms used by organizations for internal
and external communication.
It include any combination of the following:
• Email
• Instant messaging
• Video calls
• Phone calls
• Blogs
• Text messages
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• Online chat rooms and
forums
• Social media platforms
like Twitter and Facebook
• Video conferencing tools
like Skype and Zoom

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Email and Messaging Platforms: MIS systems support email
and messaging platforms for efficient and secure internal and
external communication. They often include features for email
archiving, categorization, and search capabilities.
Video Conferencing and Webinars: MIS facilitates video
conferencing and webinar tools for virtual meetings,
presentations, and collaborative communication among
employees and external partners.
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Unified Communication: MIS integrates various communication
channels, such as voice, video, chat, and email, into a unified
platform, providing a seamless communication experience.
Document Management: MIS helps manage digital documents,
including version control, access permissions, and document
sharing, to support collaborative e-communication.
Knowledge Management: MIS systems can include knowledge
management features to store and organize information, making
it easily accessible to employees for efficient communication and
problem-solving.
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Intranet and Extranet: MIS supports the development and
management of intranet and extranet platforms, which facilitate
internal communication and collaboration within the organization
and with external partners.
Social Media and Collaboration Tools: Many MIS systems
include social media and collaboration tools that enable
employees to share information, collaborate on projects, and
engage with customers and partners through social channels.
Calendar and Scheduling: MIS systems often include calendar
and scheduling features to help employees coordinate meetings
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Security and Authentication: MIS ensures the security of e-
communication platforms, including user authentication and
encryption to protect sensitive information.
Performance Monitoring: MIS tracks key performance indicators
(KPIs) related to e-communication, such as response times, user
engagement, and communication efficiency.
Compliance and Legal Requirements: MIS helps organizations
comply with data protection and communication-related
regulations by storing, managing, and securing e-communication
data.
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Email Marketing and Campaign Management: For marketing
purposes, MIS systems support email marketing and campaign
management tools, allowing organizations to send targeted
email campaigns to customers.
Customer Support and Help Desk: MIS includes tools for
managing customer inquiries, support tickets, and problem
resolution through digital communication channels.
Integration with CRM: Integration with Customer Relationship
Management systems allows organizations to manage customer
communication history and interactions for better relationship
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Business Intelligence and Analytics: MIS systems offer
business intelligence and analytics capabilities to gain insights
from e-communication data, helping organizations make data-
driven decisions and improve communication strategies.
Mobile Integration: Given the importance of mobile
communication, MIS systems ensure that communication tools
and platforms are accessible and user-friendly on mobile
devices.
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MIS for E-Collaborations
MIS play a vital role in facilitating and optimizing e-collaboration.
E-Collaborations which refers to the use of digital tools and
technologies to enable individuals and teams to work together
more efficiently and effectively, regardless of their physical
location.
Figure : Model of E-Collaboration (Source Qureshi et al.,2005). TSN, DMS-JSSATEB

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Cont…
Collaboration Platforms: MIS includes collaboration platforms
and tools, such as project management software, virtual
workspaces, and document sharing platforms, to support teams
in working together on projects and tasks.
Document and File Sharing: MIS systems provide secure and
organized document and file sharing capabilities, allowing teams
to store, access, and collaborate on documents, spreadsheets,
and other digital assets.
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Real-Time Communication: MIS supports real-time
communication tools, such as chat, video conferencing, and
instant messaging, enabling team members to communicate and
collaborate instantly, regardless of their physical locations.
Email and Messaging: MIS includes email and messaging
systems for asynchronous communication, including formal and
informal discussions, announcements, and updates.
Task and Project Management: MIS platforms often offer task
and project management features to help teams plan, track, and
manage projects, tasks, and deadlines.
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Access Control and Permissions: MIS ensures that access to
collaborative spaces and documents is controlled and
permission-based to protect sensitive information and manage
user roles.
Collaborative Editing: Some MIS systems support collaborative
editing of documents in real-time, allowing multiple users to work
on the same document simultaneously.
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Social Collaboration: MIS systems can include social
collaboration features, such as discussion forums, social media-
like features, and community-building tools, to foster a sense of
community among team members.
Mobile Integration: Given the prevalence of remote work and
mobile devices, MIS ensures that collaboration tools and
platforms are accessible and user-friendly on mobile devices.
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Security and Data Protection: MIS systems are responsible for
the security of collaboration tools and data, including user
authentication, encryption, and compliance with data protection
regulations.
Performance Monitoring: MIS tracks key performance indicators
(KPIs) related to e-collaboration, such as response times, project
completion rates, and overall team productivity.
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Business Intelligence and Analytics: MIS offers business
intelligence and analytics capabilities to gain insights from e-
collaboration data, helping organizations make data-driven
decisions and improve collaboration strategies.
Integration with Other Systems: MIS systems often integrate
with other business systems, such as Customer Relationship
Management (CRM) or Enterprise Resource Planning (ERP), to
ensure a seamless flow of information and collaboration across
the organization.
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Real Time Enterprise
Real-time enterprise (RTE) is a business systems design concept
that helps organizations automate processes across systems,
media, and enterprise boundaries.
"RTE refers to a concept in business and technology that predicts
an organization that operates with a heightened level of
responsiveness and agility by leveraging real-time data and
technologies.
In a Real-Time Enterprise, data and information flow seamlessly
and instantly across the organization, enabling rapid decision-
making and adaptive responses to changing conditions.
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Users of RTE
Amazon: Uses real-time data analytics for dynamic pricing, inventory
management, and order fulfillment in their e-commerce operations.
Netflix: Utilizes real-time data to personalize content recommendations
for users based on their viewing behaviors.
Uber: Leverages real-time data to manage ride requests, driver
allocation, and surge pricing based on demand fluctuations.
Airbnb: Employs real-time analytics to match accommodation seekers
with available listings, ensuring timely bookings and efficient property
management.
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Immediate Data Access: In an RTE, data is accessible in real-
time, allowing employees at all levels to make decisions based
on the most up-to-date information. This includes real-time
access to customer data, inventory levels, financial metrics, and
operational data.
Integration of Systems: RTEs integrate various systems and
data sources, ensuring that information flows smoothly across
different departments and functions. This integration may involve
Enterprise Resource Planning (ERP) systems, Customer
Relationship Management (CRM) software, Internet of Things
(IoT) devices, and more.
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Advanced Analytics: RTEs make extensive use of advanced
analytics, including real-time data analytics and predictive
modeling, to gain insights and make informed decisions. Big
data and machine learning technologies are often employed to
process and analyze vast amounts of data in real-time.
Automated Processes: Many routine and repetitive tasks are
automated in a Real-Time Enterprise. Eg: supply chain
processes, inventory management, and customer support may
rely on automated systems that respond instantly to changing
conditions.
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Cont…
Digital Transformation: RTEs often embrace digital
transformation initiatives, adopting technologies like cloud
computing, edge computing, and mobile apps to enhance the
agility and flexibility of the organization.
Customer-Centric: RTEs prioritize a customer-centric approach
by leveraging real-time customer data to personalize
interactions, improve customer service, and respond quickly to
customer needs and feedback.
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Supply Chain Optimization: Real-time data and insights are
used to optimize the supply chain. This includes demand
forecasting, inventory management, and real-time tracking of
shipments and deliveries.
Continuous Monitoring: RTEs continuously monitor their
operations and performance. This includes real-time monitoring
of system health, network traffic, security threats, and quality
control.
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Responsive Decision-Making: In a Real-Time Enterprise,
decision-making is not bound by traditional hierarchies or
delayed by lengthy approval processes. Front-line employees
often have the authority to make rapid decisions based on real-
time data.
Risk Management: Real-time data and analytics are used to
identify and mitigate risks promptly. This includes financial risks,
cybersecurity threats, and compliance issues.
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Agility and Flexibility: RTEs are highly adaptable and responsive
to changing market conditions, customer preferences, and
emerging opportunities. They can quickly pivot their strategies
and operations as needed.
Communication and Collaboration: Communication and
collaboration tools are integrated with real-time data, allowing
teams to work together seamlessly and make decisions
collaboratively.
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Applications of MIS
• Strategic Business Planning,
• Concept of Corporate planning,
• Essentiality of strategic Planning,
• Balance Score card,
• Score Card & Dash Board,
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MIS: Strategic Business Planning
MIS play a crucial role in supporting and enhancing strategic
business planning.
These systems provide the data, tools, and insights necessary for
organizations to develop, execute, and monitor their strategic
plans effectively.
MIS contributes to strategic business planning as:
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Data Collection and Analysis: This data includes financial
information, market trends, customer data, competitor analysis,
and more. MIS assists in transforming this data into actionable
insights.
Environmental Scanning: MIS systems continuously monitor the
business environment, providing data on market dynamics,
industry trends, regulatory changes, and emerging opportunities
or threats. This information is vital for assessing the external
factors that can impact the strategic plan.
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SWOT Analysis: MIS supports the identification of an
organization's strengths, weaknesses, opportunities, and threats
(SWOT analysis). This analysis helps in understanding the
internal and external factors that can influence strategic
decisions.
Market Research: MIS can facilitate market research and data
collection, allowing organizations to gather information about
customer preferences, market segments, and emerging market
trends.
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Competitor Analysis: MIS systems enable the collection and
analysis of data related to competitors' strategies, market share,
customer reviews, and pricing. This information helps in making
informed competitive decisions.
Performance Metrics: MIS provides key performance indicators
(KPIs) and metrics that help measure the effectiveness of
strategic initiatives. These metrics serve as benchmarks for
evaluating the progress of the plan.
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Scenario Analysis: MIS supports scenario planning by allowing
organizations to create and evaluate different scenarios based
on varying assumptions. This helps in assessing the potential
outcomes and risks associated with different strategic choices.
Budgeting and Resource Allocation: MIS aids in the financial
aspect of strategic planning by providing tools for budgeting,
forecasting, and resource allocation. It helps organizations
determine the financial feasibility of their strategic initiatives.
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Forecasting: MIS systems can perform forecasting to project
future trends, demand, and financial performance, aiding in long-
term strategic planning.
Performance Reporting: MIS generates reports and dashboards
that provide insights into how the organization is performing
against its strategic goals. These reports help in tracking
progress and making adjustments as needed.
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Communication and Collaboration: MIS facilitates
communication and collaboration among various departments
and teams involved in strategic planning. It ensures that relevant
information is shared to align efforts.
Risk Management: MIS identifies and helps manage potential
risks associated with the strategic plan, enabling organizations to
develop risk mitigation strategies.
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Feedback and Learning: MIS supports a feedback loop where
organizations can learn from the outcomes of their strategic
initiatives and make continuous improvements to their planning
processes.
Integration of Data Sources: MIS integrates data from different
sources, ensuring that decision-makers have a holistic view of
the organization and its environment.
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MIS: Concept of Corporate planning
The concept of Corporate Planning is a systematic and integrated
approach to managing and aligning an organization's resources,
capabilities, and activities with its long-term goals and objectives.
MIS play a significant role in supporting corporate planning by
providing the necessary data and tools for decision-makers to
formulate, execute, and monitor the corporate strategy.
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Cont…
Data Collection and Analysis: This information is critical for
decision-makers to assess the current state of the organization
and understand its internal and external environments.
Strategic Information: This may include data on market trends,
competitor analysis, customer behavior, and financial
performance.
Environmental Scanning: This helps corporate planners stay
informed about changes in the market, industry regulations, and
emerging trends.
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Scenario Analysis: MIS supports scenario planning, allowing
organizations to create and analyze different scenarios based on
various assumptions. This helps in assessing potential outcomes
and risks associated with different corporate strategies.
Performance Metrics: MIS systems offer key performance
indicators (KPIs) and metrics that measure the effectiveness of
corporate strategies and objectives. These metrics serve as
benchmarks for evaluating progress and making informed
decisions.
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Budgeting and Resource Allocation: MIS assists in budgeting,
financial forecasting, and resource allocation, helping
organizations determine the financial feasibility of their corporate
strategies and allocate resources accordingly.
Communication and Collaboration: MIS systems facilitate
communication and collaboration among different departments
and teams involved in corporate planning. They ensure that
relevant information is shared, and efforts are aligned with the
corporate strategy.
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Cont…
Performance Reporting: MIS generates reports and dashboards
that provide insights into how the organization is performing
against its strategic objectives. These reports help in tracking
progress and making adjustments as needed.
Risk Management: MIS identifies potential risks associated with
the corporate strategy and helps organizations develop risk
mitigation strategies. This ensures that decision-makers are
aware of potential challenges and can take proactive measures
to address them.
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Feedback and Learning: MIS supports a feedback loop in
corporate planning, allowing organizations to learn from the
outcomes of their strategic initiatives and make continuous
improvements to their planning processes.
Security and Data Governance: MIS systems maintain data
security and data governance practices to protect sensitive
information and ensure compliance with regulations, particularly
concerning financial and strategic data.
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MIS: Essentiality of strategic Planning
MIS plays a crucial role in supporting and facilitating the strategic
planning process within an organization.
Strategic planning is crucial for organizations for several reasons:
Direction and Focus: It sets a clear direction and establishes
priorities for the organization. It helps align everyone towards
common goals, ensuring efforts are concentrated on what truly
matters.
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Cont…
Resource Allocation: It assists in effective allocation of resources
be it financial, human, or technological, by prioritizing initiatives
that align with the organization's long-term objectives.
Adaptation to Change: In today's dynamic business environment,
strategic planning helps organizations anticipate and adapt to
changes in the market, technology, regulations, and consumer
behavior.
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Risk Management: It allows for a proactive approach in
identifying potential risks and challenges, enabling organizations
to develop contingency plans and mitigate these risks before
they escalate.
Performance Measurement: It provides a framework for setting
measurable goals and performance indicators, allowing
organizations to track progress and evaluate the success of their
strategies.
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Innovation and Growth: Strategic planning encourages
innovation by fostering a culture of exploration and
experimentation, promoting new ideas aligned with the
organization's long-term vision.
Communication and Alignment: It facilitates communication and
alignment across different levels of the organization, ensuring
everyone understands their role in achieving the overarching
objectives.
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Competitive Advantage: By understanding their strengths,
weaknesses, opportunities, and threats, organizations can
leverage their strengths and capitalize on opportunities, gaining
a competitive edge in the market.
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How MIS is supports strategic planning
• Data Gathering and Analysis:
• Environmental Scanning:
• Data-Based Decision-Making:
• Scenario Analysis:
• Performance Metrics:
• Communication and Collaboration:
• Budgeting and Resource Allocation:
• Performance Reporting:
• Risk Management:
• Feedback and Learning:.
• Integration of Data Sources:
• Security and Data Governance:
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MIS: Balance Score card
The Balanced Scorecard is a strategic performance management
framework that organizations use to monitor and manage their
strategic objectives.
MIS can play a significant role in implementing and maintaining the
Balanced Scorecard by providing the necessary data, tracking
metrics, and supporting decision-making.
The Balanced Scorecard is a strategic planning and management
tool used by organizations to translate their vision and strategy
into actionable objectives and measures across four key
perspectives:
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Cont…
TSN, DMS-JSSATEB
Source : Wevalgo
revenue
growth, cost
reduction,
profitability,
and return on
investment
customer service,
product quality,
customer retention,
and market
responsiveness
measures of
efficiency,
productivity,
quality
improvement,
key business
operations
employee
training, skill
development,
employee
satisfaction,
and
technological
advancement.

116. 116
Cont…
Financial Perspective: This perspective looks at financial goals
and performance indicators that directly contribute to the
organization's bottom line. It includes metrics like revenue
growth, cost reduction, profitability, and return on investment.
Customer Perspective: This perspective focuses on customer
satisfaction, loyalty, and market share. It involves metrics related
to customer service, product quality, customer retention, and
market responsiveness.
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Internal Business Processes Perspective: Here, the focus is on
the internal processes critical to delivering value to customers
and achieving financial goals. Metrics in this perspective might
include measures of efficiency, productivity, quality improvement,
and innovation within key business operations.
Learning and Growth Perspective: This perspective
concentrates on the organization's ability to innovate, grow, and
learn for the future. It involves metrics related to employee
training, skill development, employee satisfaction, and
technological advancement.
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Need for Balanced Scorecard
The key idea behind the Balanced Scorecard is to provide a
holistic view of an organization's performance by incorporating a
balanced set of measures across these four perspectives.
It helps organizations in several ways:
Clarity and Focus: It aligns strategic objectives across different
aspects of the organization, ensuring that all areas are working
towards the same strategic goals.
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Performance Measurement: It provides a framework for
measuring performance in multiple dimensions, beyond just
financial metrics, to assess overall organizational health.
Strategy Communication: It facilitates communication of the
strategic vision and objectives throughout the organization,
ensuring everyone understands their role in achieving the
organization's goals.
Strategic Alignment: It helps in aligning day-to-day activities and
initiatives with the long-term strategic objectives, guiding
decision-making at all levels.
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How MIS Helps in designing the Balanced Scorecard:
• Data Collection and Integration:
• Performance Metrics: Financial Perspective, Customer
Perspective, Internal Process Perspective, Learning and Growth
Perspective
• Data Visualization:
• Performance Reporting:
• Data Analysis:
• Feedback and Continuous Improvement:
• Scenario Analysis:
• Strategic Decision-Making:
• Performance Benchmarking:
• Security and Data Governance:
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Score Card & Dash Board
Scorecards and dashboards are essential components of MIS that
help organizations to monitor and visualize KPIs, metrics, and
other critical data to support decision-making.
Scorecard: A scorecard in MIS is a structured performance
measurement tool that provides a snapshot of an organization's
performance against predetermined goals and objectives.
It typically includes a set of KPIs and metrics organized into
different perspectives, such as financial, customer, internal
processes, and learning and growth.
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Key features of a scorecard in MIS:
Structured Format: A scorecard follows a structured format with
predefined KPIs and metrics aligned with an organization's
strategic objectives.
Perspectives: KPIs are categorized into different perspectives,
helping organizations assess performance holistically,
considering financial, customer, internal process, and
organizational growth aspects.
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Scoring: Each KPI or metric on a scorecard is assigned a score or
rating, indicating whether performance aligns with targets or falls
short.
Historical Data: Scorecards may include historical data to track
performance trends over time, enabling organizations to identify
patterns and assess progress.
Strategic Alignment: KPIs on a scorecard are directly linked to an
organization's strategic goals, ensuring that performance is
aligned with the overarching strategy.
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Dashboard:
Dashboard is a visual representation of data and information
presented in a single, interactive interface.
Dashboards provide real-time or near-real-time insights into an
organization's performance, often utilizing various visual
elements like charts, graphs, tables, and key indicators.
Key features of an MIS dashboard include:
Visual Representation: Dashboards use visual elements to
present data and information in an easily digestible and user-
friendly format, making it quick and spontaneous for users to
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Customizability: Dashboards are often customizable, allowing
users to choose which KPIs and metrics they want to display and
how they want to visualize them.
Real-Time Data: Dashboards can provide real-time or near-real-
time data, granting immediate visibility into current performance
and trends.
Interactivity: Many MIS dashboards are interactive, allowing
users to drill down into data, change settings, and explore data
in more detail, fostering deeper understanding.
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Data Integration: Dashboards can integrate data from various
sources, such as databases, spreadsheets, and external
systems, providing a consolidated view of performance.
Alerts and Notifications: Some dashboards incorporate alerting
features that notify users when specific thresholds or targets are
exceeded or not met, ensuring timely responses to critical
events.
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Key Differences among Score card and Dashboard
Structure: Scorecards have a predefined structure with a fixed set
of KPIs, while dashboards offer more flexibility and
customization options.
Real-Time vs. Periodic: Dashboards are often designed for real-
time or near-real-time data, while scorecards may be based on
periodic reporting.
Interactivity: Dashboards are interactive and allow users to
explore data, while scorecards are more static in nature.
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Security Challenges in E- Enterprises
E-enterprises, which operate primarily in the digital mode,
Face several unique security challenges that stem from their
reliance on technology and online platforms.
These security challenges can have significant implications for the
confidentiality, integrity, and availability of digital assets.
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Cyber attacks and Data Breaches:
E-enterprises are prime targets for cyber attacks, including data
breaches, phishing, ransomware, and Distributed Denial of
Service (DDoS) attacks.
These attacks can result in the theft of sensitive customer and
business data, financial losses, and damage to the
organization's reputation.
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Identity Theft and Fraud: Identity theft and online fraud are major
concerns in e-enterprises.
Cybercriminals may steal user credentials, manipulate account
information, or engage in fraudulent activities, impacting both the
enterprise and its customers.
Phishing and Social Engineering: Phishing attacks target
employees and customers through deceptive emails, messages,
or websites. Social engineering techniques manipulate
individuals into revealing sensitive information, such as login
credentials or financial details.
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Data Privacy and Compliance: E-enterprises must comply with
data protection regulations, such as the General Data Protection
Regulation (GDPR) and the California Consumer Privacy Act
(CCPA).
Ensuring data privacy and compliance with these laws can be
challenging, especially when dealing with customer data.
Legal and Regulatory Challenges: Navigating the complex legal
and regulatory landscape, especially concerning international e-
commerce, can be challenging. Ensuring compliance is a key
concern.
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Third-Party Risks: E-enterprises often rely on third-party vendors
and partners for various services.
However, these external relationships can introduce security risks,
as weakness in third-party systems may be exploited by
attackers.
Mobile Device Security: As e-enterprises embrace mobile
technology, securing mobile devices becomes crucial.
Mobile devices can be lost or stolen, and mobile apps may have
susceptibility that can be exploited.
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Insider Threats: Insider threats, whether unintentional or
malicious, can pose significant security risks.
Employees, contractors, or partners may compromise security
intentionally or inadvertently, leading to data breaches.
Cloud Security: E-enterprises frequently use cloud services for
storage, computing, and application hosting.
Ensuring the security of data and applications in the cloud is vital,
and misconfigurations can lead to data exposure.
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IoT Security: The Internet of Things (IoT) devices used by e-
enterprises, such as smart sensors and connected devices, can
introduce weak points.
If not adequately secured, they can be exploited to gain
unauthorized access.
E-commerce Fraud: E-enterprises engaged in online retail face e-
commerce fraud, including chargebacks, payment fraud, and
fraudulent customer accounts.
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Supply Chain Susceptibilities: The digital supply chain can be
compromised through cyberattacks, leading to the compromise
of products or services.
Ensuring the security of the supply chain is crucial for product
integrity.
Data Loss and Backup: The risk of data loss in e-enterprises is
high due to technical failures, human errors, or cyberattacks.
Ensuring regular data backups and disaster recovery plans are in
place is essential.
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Patch Management: E-enterprises must keep their software and
systems up to date to protect against known weaknesses.
Failing to patch systems can leave them exposed to exploitation.
Security Awareness and Training: Employees and users need
training and awareness programs to recognize security threats,
follow best practices, and avoid falling victim to social
engineering attacks.
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Impacts of Information Technology on society
Information technology has had a profound impact on society,
transforming various aspects of our daily lives, the way we work,
communicate, learn, and conduct business.
These impacts can be both positive and negative.
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Positive Impacts:
Improved Communication: Information technology has
revolutionized communication, making it faster and more
accessible.
Email, instant messaging, video calls, and social media have
connected people across the globe, enhancing personal and
professional communication.
Access to Information: The internet has made a vast amount of
information readily available to anyone with a connection.
This has democratized knowledge and education, allowing people
to access a wealth of resources and learn about virtually any
topic.
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Efficiency and Productivity: Information technology has
automated many tasks, streamlining processes and increasing
efficiency in various industries.
This has led to greater productivity and reduced costs.
E-commerce and Online Shopping: Online shopping and e-
commerce have made it convenient for consumers to purchase
products and services from the comfort of their homes, leading
to a significant shift in retail and the way businesses operate.
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Healthcare Advancements: Information technology has improved
healthcare delivery through electronic health records (EHRs),
telemedicine, and data analytics.
Patients can access medical information, schedule appointments,
and receive remote care.
Education and E-Learning: Online education platforms and e-
learning tools have expanded access to education and training.
People can learn new skills and earn degrees remotely, breaking
down geographical barriers.
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Remote Work: Technology has facilitated remote work, allowing
individuals to work from anywhere with an internet connection.
This has increased flexibility for employees and reduced the need
for physical office spaces.
Entertainment and Media: The digital transformation of the
entertainment industry has led to streaming services, online
gaming, and social media platforms, offering a wide array of
content and interactive experiences.
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Environmental Benefits: Information technology has enabled the
development of energy-efficient technologies and sustainable
practices, reducing the environmental footprint of various
industries.
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Negative Impacts
Privacy Concerns: The collection and sharing of personal data
online have raised significant privacy concerns.
Data breaches and misuse of personal information can lead to
identity theft and other privacy violations.
Cybersecurity Threats: The increasing reliance on technology
has given rise to cyber threats, including malware, ransomware,
and hacking.
These can result in data breaches, financial losses, and damage
to critical infrastructure.
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Digital Divide: Not everyone has equal access to information
technology, creating a digital divide between those with access
to the internet and digital tools and those without.
This can leads inequalities in education, employment, and access
to information.
Social Isolation: While technology connects people virtually, it
can also contribute to social isolation and a reduction in face-to-
face interactions.
Overuse of technology can lead to negative mental health effects.
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Job Displacement: Automation and artificial intelligence have the
potential to replace certain jobs, leading to concerns about
unemployment and the need for workforce reskilling.
Information Overload: The abundance of information available
online can be overwhelming, making it difficult for individuals to
filter and process relevant information effectively.
Cyberbullying and Online Harassment: The anonymity of the
internet has facilitated cyberbullying and online harassment,
posing risks to mental and emotional well-being.
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Electronic Waste: The rapid obsolescence of technology leads to
electronic waste disposal issues and environmental concerns
related to the disposal of outdated devices.
Ethical Concerns: Information technology raises ethical dilemmas
related to issues such as surveillance, data ownership, AI ethics,
and the impact of technology on society.
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Questions
• What is information technology? Explain the impact of IT on
quality our life.
• What is IT? Explain how IT changes our personal ?
Professional lives with appropriate examples.
• Define MIS. Explain the role of IT in modern business
environment
• What is Information Technology? Explain the role of IT in
Today‟s business.
• What are the fundamental concepts underlying Management
Information Systems ?
• How does MIS contribute to the overall functioning of an
organization, and what roles does it play?
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148. 148
Cont…
• Discuss the positive and negative impacts of MIS on
organizational performance.
• How has MIS transformed decision-making processes within
businesses?
• Who are the primary users of MIS within an organization, and
what information do they typically seek?
• How does MIS cater to the diverse needs of different
organizational stakeholders?
• Outline the key components of an Information System (IS) and
their respective functions.
• How do these components work together to support the overall
information needs of an organization?
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149. 149
Cont…
• Explain the concept of Management Control Systems in the
context of MIS.
• How does MIS serve as a tool for management control within
an organization?
• In what ways does MIS contribute to enhancing organizational
effectiveness?
• Provide examples of how MIS has been successfully used to
improve efficiency and productivity.
• Explore the role of MIS in E-Commerce, E-Communication, and
E-Collaborations.
• How does MIS enable Real-Time Enterprise operations in the
digital era?
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150. 150
Cont…
• Define the role of MIS in Strategic Business Planning and
Corporate Planning.
• Why is strategic planning essential for the success of an
organization, and how does MIS facilitate this process?
• Explain the concepts of the Balanced Scorecard and how it
relates to MIS.
• How do Score Cards and Dashboards assist in monitoring and
measuring organizational performance?
• Identify and discuss the major security challenges faced by E-
Enterprises.
• How can MIS contribute to mitigating and managing security
risks in digital environments?
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151. 151
Cont…
• Discuss the broader societal impacts of Information Technology.
• In what ways does MIS contribute to or influence societal
changes brought about by Information Technology?
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152. 152
Reference
• Subudhi, R. N. (2013). Knowledge Management and the Changing Need of IT Applications. Ed.
Roy, AK:„Information and Knowledge Management: Tools, Techniques and Practices‟, New India
Publishing Agency, New Delhi.
• Qureshi, S., Liu, M., & Vogel, D. (2005, January). A grounded theory analysis of e-collaboration
effects for distributed project management. In Proceedings of the 38th Annual Hawaii
International Conference on System Sciences (pp. 264c-264c). IEEE.
• https://www.wevalgo.com/know-how/operational-excellence/performance-
management/balanced-scorecard
• “Management Information Systems”, Kenneth J Laudon, Jane P. Laudon, Pearson/PHI, 11/e,
2010.
• “Management Information Systems”, W. S. Jawadekar, Tata McGraw Hill Edition, 5/e, 2017.
• Management Information Systems, S. Sadagopan, PHI, 1/e, 2005.
• Introduction to Information System, James A. O‟ Brien, Tata McGraw Hill, 12 th Edition, 2007.
• Management Information Systems, Iffy Oz, Thomson Course Technology, 3/e, 2003.
• Management Information System, CSV Murthy, HPH, 3/e.
• Corporate Information Strategy and Management, Lynda M Apple Gate, Robert D Austin et al,
Tata McGraw Hill, 7th Edition.
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