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By-Dr. Aparna Singh
Assistant Professor
DSPSR
 Management
◦ Involves all aspects of
 Planning
 Organising
 Staffing
 Budgeting
 Co-ordinating
 Controlling
 Information coming from both External & Internal Sources
as a result of processing huge amount of rapidly changing
data with respect to
◦ Human Resource : Capabilities, Experiences, Challenges, Morale,
Engagement with jobs, pay & perks
◦ Operation: inventory status, (Think of JIT) production rate-
present, expected & future, state of equipment, quality assurance.
◦ Technology: Present, future, new products, future needs, changing
customer needs and technological possibilities
◦ Finance and Accounts: Revenue, sales, profits, Receivables,
Amount payable, Cash Flow, Market Capital, Equity Price etc.
◦ Environment- External & Internal, Political Conditions, Economic
State, Social needs, technological influences
◦ Market : Customer preferences, Competitor's moves, Vendor’s
moods and responses
◦ Anything other that manager might consider relevant
 Computers
 Software
 Networking
 Holistic, logical and also Creative approach
 Fast, Responsive, Analytical, always available
to support decision making
 An 'MIS' is a planned system of the collecting,
processing, storing and disseminating data in
the form of information needed to carry out
the functions of management.
 MIS refers broadly to a computer-based
system that provides managers with the tools
for organizing, evaluating and efficiently
running their departments.
 Objectives
◦ Support managerial work.
◦ Support decision making.
ESSENTIAL
REQUIREMNETS FOR
AN EFFECTIVE MIS
QUALIFIED SYSTEM
AND MANAGEMENT
STAFF
SYSTEM AND
COMPUTER
EXPERTS
MANAGEMENT
EXPERTS
FUTURISTIC
PERSPECTIVE
SUPPORT OF TOP
MANAGEMENT
COMMON
DATABASE
CONTROL AND
MAINTAINANCE OF
MIS
Essential Requirement of an Effective MIS:
(i) Qualified System and Management Staff: The prerequisite of an effective MIS is
that it should be managed by qualified officers. These officers should have a mutual
understanding about the roles and responsibilities of each other. Understand clearly the
view of their fellow officers. For this, each organization should have two categories of
officers:
(a) System and Computer Experts who in addition to their expertise in their
subject area , they should also be capable of understanding management concepts to
facilitate the understanding of problems asked by concern. They should also be
clear about the process of decision making and information requirements for
planning.
(b)Management experts who should also understand quite-clearly the
concepts and operations of a computer. This basic knowledge of computer
will be useful will place them in a comfortable position, while working with
systems, technicians in designing or otherwise, of the information system.
(ii) Futuristic Perspective: An effective MIS should be capable of meeting the future
requirements of its executives as well. This capability can be achieved by regular
monitoring and updating the MIS.
(iii) Support of Top Management: For a management information
system to be effective, it must receive the full support of top
management. The Reasons for this are :
(a) Subordinate managers are usually lethargic about activities
which do not receive the support of their superiors.
(b) The resources involved in computer based information system
are larger and are growing larger and larger in view of importance
gained by management information system.
(iv) Common Database: It is an integrated collection of data and
information which is utilized by several information subsystems of an
organization. A common database may be defined as a super file which
consolidates and integrates data records formerly stored in a separate
data file. Such a database can be organized as an integrated collection of
data records into a single super file or it can be organized as an integrated
collection of several data file.
(v) Control and maintenance of MIS: Control of the MIS means the
operation of the system as it was designed to operate. Sometimes, users
develop their own procedures or short cut methods to use the system
 Data Capturing
 Data Storage
 Data Processing, analysis, forecasting,
identifying trends
 Information retrieval
 Information dissemination
 Fulfilling other relevant functional
requirements
 Rapidly Changing Environment
 Huge amount of Data and Information
 Constraint of Time and Need for Speed
 MIS analyses, stores, helps in retrieval,
presents information automatically in
routine formats and assists in scanning
need based specific inputs, dissemination
of data in helpful ways to all those who
need it.
 Management is decision making
 The manager is a decision maker
 Now fast changing, complex environment
 Factors affecting decision making
o Technology/Information/Computers
o Structural Complexity/Competition
o International Markets/Political Stability
o Consumerism/Changes, Fluctuations
data processing and management
information
Customer
Management
Customer
Order
Processing
System
orders
deliv. note
invoice
database
Management
Information
System
Data:
icustomers
iproducts
iprices
iorders
iinvoices
1. STRATEGIC
SUPPORT
2. MANAGEMENT
BY OBJECTIVES
3. DATA
PROCESSING
• Aid in decision making.
• Better planning and control.
• Core competencies.
• Quick reflexes.
• Enhance supply chain management.
Business transaction processing systems accumulate vast
amounts of data.
Information systems use that data to produce
management information for:
 Senior managers – for strategic management
 Middle Managers – for tactical planning and control.
 Operational Staff – for day to day decision making in
the production process
Decision making levels in
the management
hierarchy
control
feedback
strategic
tactical
operationa
l
Anthony’s
triangle
 Monitor the strategic performance of the organization
and its overall direction in the political, economic, and
competitive business environment
 Unstructured Decisions
oNot possible to specify in advance most of the decision
procedures to follow
oDecision maker must provide judgement, evaluation
and insights to a novel, important and nonroutine-
type decision
 Require more summarized, ad hoc, unscheduled reports,
forecasts, and external intelligence to support their
more unstructured planning and policy-making
responsibilities
Strategic Management
Responsible for major marketing, organisational and
investment decisions
Informed by management information on:
 Organisational performance (sales).
 Organisational finance.
 Competitors
 Trends in the economy and society.
 Allocate resources and monitor the performance of their
organizational subunits, including departments,
divisions, process teams, and other workgroups
 Semistructured Decisions
oSome decision procedures can be prespecified, but not
enough to lead to a definite recommended decision
oOnly part of the decision has a clear-cut answer
provided by an accepted procedure
 Require information from both the operational level and
the strategic level to support their semistructured
decision making responsibilities
Tactical Management
Implementing company policy at departmental level
and dealing with issues as they arise.
Informed by management information on:
 Departmental performance (sales).
 Departmental finance.
 Operational metrics.
 Direct the use of resources and the performance of
tasks according to procedures and established budgets
and schedules
 Structured Decisions
oThe procedures to follow when a decision is needed
can be specified in advance
oInvolves a repetitive and routine-type decision where
there is a definite procedure to follow
 Require more prespecified internal reports emphasizing
detailed current and historical data comparisons that
support day-to-day operations
Operational Staff
The level where the day to day activities of the
company occur
Informed by management information on:
 Specific cases and events that need attention.
• Senior managers:
• Make many unstructured decisions
• E.g. Should we enter a new market?
• Middle managers:
• Make more structured decisions but these may include unstructured
components
• E.g. Why is order fulfillment report showing decline in Minneapolis?
• Operational managers, rank and file employees
• Make more structured decisions
• E.g. Does customer meet criteria for credit?
Senior managers, middle managers, operational managers, and employees have different types of decisions
and information requirements.
MIS Growth and
Development
 Development Of Computing Power
 Development Of Management Thinking And Practices
 Growth Of Internet
 Transformation From Isolated Markets To Global
World
 Development Of Operational Practices
 Growth Of E-banking Possibilities
 Change In Work Environment, Explosion Of Data,
Severe Competition,
 Ever Increasing Need For Faster And More Accurate
Decision Making
 Explosion Of E-commerce Riding On Internet & E
Banking Possibilities
 Primarily For Data Storage & Processing
 Computers Were Installed In Computer Center
Or In Electronic Data Processing Department
 Usage Revolved Around Accounting, Record
Keeping And Attendance, Pay Roll Etc.
 Shift from Data to Information
 Focus shifted from Bare Data to analysis
 Logical thinking
 Planned systematic Steps
 Development of MIS
Right Info in right time to the right
people.
 Facilitated Real time Demand
and Use of Computers for
Decision Making- Ex What if
analysis.
 PC-XT
 PC-AT
 PC-086
 PC-186
 PC-286
 PC-386
 PC-486
 Pentium 1 to
IV
 Factors Responsible for the development of MIS are
numerous and have been a prime concern for many
Researchers and Practitioners. Both Internal and
external factors must be taken into account when
trying to understand and organization’s criteria for
deciding about technology.
FACTORS AFFECTING
GROWTH AND
DEVELOPMENT OF
MIS
INTERNAL FACTORS EXTERNAL FACTORS
•Technology suppliers, the degree of innovativeness of
the industry, the requirements imposed by major
customers and external markets and overall levels of
competition and technology sophistication in the
industry.
Industry level
•National policies also affect the organization that
indirectly affects the subsystems of the organization.
National policies
• Technology in terms of exposure and organizational
learning ultimately affects its future in developing
technology
PAST EXPERIENCE WITH TECHNOLOGY
• An organization’s characteristic like size, influence the
adoption of MIS application in organization. They have
more appropriate systems developed for larger firms
whereas they have ready made and less expensive
systems.
ORGANIZATIONAL CHARACTERISTICS
• Organization’s strategy reflects its action with market
and technology, which ultimately modify its experience
and consequently its overall characteristics and
capabilities
ORGANIZATIONAL PURSUED STRATEGY
Short
Name
Full Form Focus on
EDP Electronic Data Processing Data
OAS Office Automation System Office Communication
MIS Management Information
System
Information
DSS Decision Support System What If Analysis
KBS Knowledge Based System Consultancy
ESS Executive Support System Support To Top Level
Management
ES Expert System Automation Of
Operations
AI Artificial Intelligence Self Learning And
Thinking System
TPS OAS MIS DSS KBS ESS ES AI
Location of MIS in the
Organization – Concept and
Design.
 Information technology and organizations
influence each other
◦ Relationship influenced by organization’s
 Structure
 Business processes
 Politics
 Culture
 Environment
 Management decisions
This complex two-way
relationship is mediated
by many factors, not the
least of which are the
decisions made—or not
made—by managers.
Other factors mediating
the relationship include
the organizational
culture, structure,
politics, business
processes, and
environment.
THE TWO-WAY RELATIONSHIP BETWEEN ORGANIZATIONS AND INFORMATION TECHNOLOGY
All organizations are
composed of individual
routines and behaviors, a
collection of which make
up a business process. A
collection of business
processes make up the
business firm. New
information system
applications require that
individual routines and
business processes
change to achieve high
levels of organizational
performance.
FIGURE 3-4
ROUTINES, BUSINESS PROCESSES, AND FIRMS
The services a firm is capable of providing to its customers, suppliers, and employees are a
direct function of its IT infrastructure. Ideally, this infrastructure should support the firm’s
business and information systems strategy. New information technologies have a powerful
impact on business and IT strategies, as well as the services that can be provided to
customers.
FIGURE 5-1
CONNECTION BETWEEN THE FIRM, IT INFRASTRUCTURE, AND BUSINESS CAPABILITIES
As a part of financial department
DP organization under a separate
direction (MIS)
DP organization as separate company
Location of MIS in a business organization
Different business organizations follow different procedures in locating
an information center in the organization. Three forms of organization of
MIS/ Data Processing (DP) set-up are generally known. These are as
follows:
1) As a part of financial department: In this case, DP personnel headed
by a DP manager are placed under the charge of the financial
controller or the chief accounts officer. This is so because
historically financial applications were the first to be computerized
and systematized.
2) DP organization under a separate direction (MIS). Sometimes other names such
as direction (management services) or director(data processing) are also used. In
this form of organization the DP Manager or the Director of MIS enjoys a status
equal to the Financial Controller or the Chief Accounts Officer or any other chief
of the functional divisions. This kind of organization is adopted by companies, who
recognize data processing and systems designs as important functional areas.
3) DP organization as separate company. This kind of organization, followed largely
by consultancy units or subsidiaries of conglomerate of companies, is useful for the
speedy and rapid growth of systems design and other related processing activities
both with respect to internal application as well as external consultancy.
1. Support the Business Process : Treats inputs as a request from the customer and
outputs as services to customer. Supports current operations and use the system to
influence further way of working.
2. Support Operation of a Business Organization: MIS supports operations of a
business organization by giving timely information, maintenance and enhancement
which provides flexibility in the operation of organizations.
3. To Support Decision Making: MIS supports the decision making by employee in
their daily operations. MIS also supports managers in decision making to meet the
goals and objectives of the organization. Different mathematical models and IT
tools are used for the purpose evolving strategies to meet competitive needs.
4. Strategies for an Organization: Today each business is running in a competitive
market. MIS supports the organization to evolve appropriate strategies for the
business to assented in a competitive environment.
MIS for a Business Organization :
 A Transaction is any business-related
exchange such as payments to employees,
sales to customers.
 A Transaction Processing System (TPS), is an
organised collection of people, procedures,
software, databases and devices used to
record completed business transactions.
 Transaction processing systems
◦ Serve operational managers and staff
◦ Perform and record daily routine transactions
necessary to conduct business
 Examples: sales order entry, payroll, shipping
◦ Allow managers to monitor status of operations
and relations with external environment
◦ Serve predefined, structured goals and decision
making
 One of the first business systems to be
computerised was the payroll system. The
primary inputs for a payroll TPS are the
number of employee hours worked during
the week and pay rate – The primary
output consists of pay cheques.
 Consider what would happen if an
organisation had to function without a TPS
for even one day…. How many employees
would be paid?? & if paid how many of
them would be correct??

 Transaction Processing systems are used for
routine, repetitive and ordinary business
transactions, but transactions that are critical
to the daily function of that business.
Example of a Transaction Prcessing System
 EIS system is very fast. It is capable of accessing both internal
as well as external data.
 EIS basically provides various online options with which the
report analysis can be done in detail.
 EIS provides its users with drill down facility and reporting
tools.
 EIS can also be used to make decision just like Decision
Support System.
 EIS helps management to monitor performance of the
organization and thus helps organization to achieve its goals
and objectives in the long run. With the introduction of
Artificial Intelligence, EIS has lost its importance to a little
extent.
1) DRILL DOWN
 The investigation of information in detail. For e.g. an executive may notice a
 decline in corporate sales by region or by any means.
2) CRITICAL SUCCESS FACTORS (CSFs)
 The factors those are most critical to the success of an organization. Such factors
 can be strategic, managerial, or operational and are derived mainly from three
 resources like organizational, industrial and environmental.
3) STATUS ACCESS
 A rapid access to current information, provided by a computer. It may require
 daily or even hourly operational tracking and reporting. In extreme cases, real
 time reporting may be required.
4) ANALYSIS
 Analytic capabilities are available in EIS that use mathematical formulas to
 derive an optimal solution directly or to predict a certain result, mainly in solving
 structured problems.
5) EXCEPTION REPORTING
 It is based on the concept of management by exception. That means in
 exception reporting, the executive's attention is called only to cases with a very bad
or very good performance.
6) USE OF COLORS AND AUDIO
 Typically, critical items are reported not only numerically but also in color. For
 example,
 GREEN for OK
 YELLOW for WARNING
 RED for DANGER, that means the performance outside the preset boundaries of
the plan
 Some systems are equipped with audio signals to alert the user with arriving
information
 USER INTERFACE: User Interface allows the users to communicate with the
EIS. User interface must be easy to use and understand. Users should not be
required to understand the complex query languages and other mathematical or
statistical formulas.
 HARDWARE: Hardware refers to devices by which users give input, data
processing and the output is received. Users may give input via keyboard and
mouse and CPU may be used for processing and output may be received on
monitor or from printer.
 SOFTWARE: Software is required for various calculations, providing graphical
view to the management, storing data in the form of Information, etc. Software
allows user to get information in the form it is actually required.
 TELECOMMUNICATION: In today’s world the most important thing is
communication. Users may require transferring information from one point to
another point. The information might be a little confidential in nature. The secrecy
of the information should be well maintained.
 MANUFACTURING: It determines whether a process is running
correctly or not. It helps in ensuring proper quality control of finished
goods. It measures the actual process time and compares with the standard
time required for the process. It provides management with daily
production report, daily consumption report, safety stock report, economic
order quantity, etc.
 FINANCIAL: Every organization needs to ensure financial activities are
running sound. EIS may help to analyze whether payment has been
realized from creditors within stipulated period of time. It can help
management in managing various other sources of finance.
 ACCOUNTING: It helps in proper accounting and disbursement of
accounting functions
ADVANTAGES:
 EIS is easy for use and saves time of the top level management of the
organization.
 EIS provide access to timely information in a rapid manner.
 EIS provides extensive online analysis tools.
 EIS can easily be given a DSS support.
DISADVANTAGES:
 Functions are limited, can not perform complex calculations
 Hard to quantify benefits and to justify implementation of an EIS
 Executives may encounter information overload
 System may become slow, large, and hard to manage
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 Systems specifically designed to support
unstructured and semi-structured decisions of
senior management
 Major features
◦ Drill down
◦ Integration of data from multiple internal sources
◦ Integration of data from external sources
◦ Availability of modeling tools with little required
training
◦ Environmental scanning tools
◦ Often used at lower levels of management
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 Ability to analyze, compare, and highlight
trends
 Graphical interface enables users to review data
more quickly and with more insight, speeding
decision making.
 Timeliness and availability of data enables more
timely decision making, helping businesses
move toward a “sense-and-respond” strategy.
 Increases upper management span of control,
better monitoring
 ESS based on enterprise-wide data can be used
for decentralization of decision making or
increase management centralization.
 Used By the top level personnel in any
organisation
 Not intended to help in routine operation
management or in mid level decision. It is
meant for helping in Strategic Decision
making.
Decision
Support
System
MIS
Managem
ent
Informati
on
system TPS
Transacti
on
Processin
g System
KBS
Knowled
ge Based
System
Executive
Support
System
(ESS)
 Deals with Certain as well as uncertain
environment
 Helps top level managers in taking important
Strategic Decisions for the Company
 It is not to deal with routine activities but
draws information from them
 The requirements are normally non routine
type, summarised and deal with trends,
predictions for future and risk estimation for
various options.
 A Decision Support System (DSS), is an organised
collection of people, procedures, software,
databases and devices used to support problem-
specific decision making.
 The focus of a DSS is on decision making
effectiveness.
 A DSS helps a manager “do the right thing”
 DSS are used when the problem is complex and the
information needed to make the best decision is
difficult to obtain and use.
 A DSS operates from a managerial perspective and
it recognises that different managerial styles and
decision types require different systems.
Decision Support System
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A DSS is a computer system at the
management level of an organization
that combines data, sophisticated
analytical models, and user-friendly
software to support semistructured and
unstructured decision making.
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 DSS database
◦ collection of current or historical data and possibly
some external data
◦ may be small dataset downloaded from corporate
mainframes to a PC
◦ may be a massive data warehouse
 DSS software system contains the software tools for data
analysis, with models, data mining, and other analytical
tools
◦ collection of mathematical models (statistical models,
linear programming, forecasting, sensitivity analysis
models)
◦ OLAP or datamining tools
 DSS user interface controls the interaction between the
user and the tools
◦ graphical, flexible, and easy to use (e.g., Wizards)
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Intelligence
Design
Choice
Implementation
Is there a
problem?
What are the
alternatives?
Which should you
choose?
Is the choice
working?
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 In the intelligence phase
◦ produce more timely data
◦ increase the use of quantitative data
◦ make more data available
 In the design phase
◦ generate more alternatives
◦ generate more accurate alternatives
 In the choice phase
◦ make faster decisions
◦ sometimes rank the choices
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 DSS offer users flexibility, adaptability, and a quick
response (usually interactive)
 DSS allow users to initiate and control the input
and output
 DSS operate with little or no assistance from
professional programmers
 DSS provide support for decisions and problems
whose solutions cannot be specified in advance
 DSS use sophisticated analysis and modeling tools
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 Model-driven DSS are primarily standalone systems
that use some type of quantitative model to perform
“what-if” and other types of analysis.
 Data-driven DSS are systems that analyze large pools
of data collected stored in a data warehouse; these
systems permit managers to extract useful
relationships that are hidden in the data. Two
techniques are used
◦ On-line analytical processing (OLAP)
◦ Datamining as knowledge discovery (search for
hidden patterns)
 Web-based DSS exist for both types (customer decision
support systems)
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 Most widely used tool for decision support
because it is widely accessible to both
experienced and inexperienced users
 Features of spreadsheets that support DSS
construction
◦ Pivot tables for OLAP
◦ Data tables for sensitivity analysis (what-if)
◦ Preprogrammed functions enable the use
of many mathematical models
◦ Built in IF-THEN function
◦ Ability to use Visual Basic for Applications
◦ Charts,
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 A CDSS is a special type of DSS designed to
support the buying decisions of an existing or
potential customer. Most current CDSS are Web
based
 Support exists for both the individual consumer
(B2C) and businesses (B2B)
 Complexity of products and sophistication of
the buyer often determine the nature of a CDSS
 Examples of model driven CDSSs
◦ Bankrate (www.bankrate.com )
◦ Vanguard (www.vanguard.com); see planning
and education
 Examples of data driven CDSSs
◦ PriceGrabber ( www.pricegrabber.com)
◦ Buying tires (www.tirerack.com)
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 A GIS is a DSS for decision aid for map-related
decisions
 Typical GIS contains
◦ Database of quantitative and qualitative data
◦ Database of maps
◦ Program to display information on maps
 Applications of GIS
◦ Identifying the best site to locate a branch office
◦ Targeting pockets of potential customers
◦ Repositioning promotions and advertising
◦ Tracking the spread of disease or crime
 Expert Systems give the computer the ability
to make suggestions and act like an expert in
a particular field.
 The unique value of expert systems is that
they allow organisations to capture and use
the wisdom of experts and specialists.
 Expert systems can be applied to almost any
field.
 Expert Systems run through Inference Engine
that depends on
◦ Knowledge Base
◦ Explanation Interface
◦ Knowledge Acquisition Mode
◦ Logic like, “ If- Then- Unless”
 Banking System to process small as well as big
loans, to establish credit worthiness and other
aspects related to loans.
 Insurance: to decide on the insurance premium
depending on the client’s profile.
 Medical Diagnosis: Example X Ray of chest,
Comparison of spots on chest x ray with a large
data base and to identify to most possible reason
for the problem
 Engineered Systems: Computers, Automobiles,
Air Conditioners
 Process and other large Industries: Oil Refineries,
Iron and Steel Making, Power Generation
 Best Answer: *A good example of application of expert systems in
banking area is expert systems for mortgages. Loan departments
are interested in expert systems for mortgages because of the
growing cost of labour which makes the handling and acceptance of
relatively small loans less profitable. They also see in the application
of expert systems a possibility for standardised, efficient handling of
mortgage loan, and appreciate that for the acceptance of mortgages
there are hard and fast rules which do not always exist with other
types of loans.
EXPERT SYSTEMS:
One of the largest area of applications of artificial intelligence is in
expert sytems, or knowledge based systems as they are often
known. This type of system seeks to exploit the specialised skills or
information held by of a group of people on specific areas. It can be
thought of as a computerised consulting service. It can also be
called an information guidance sytem. Such systems are used for
prospecting medical diagnosis or as educational aids. They are also
used in engineering and manufacture in the control of robots where
they inter-relate with vision systems. The initial attempts to apply
artificial intelligence to generalised problems made limited progress
as we have seen but it was soon realised that more significant
progress could be made if the field of interest was restricted.
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 DSS Philosophy
◦ provide integrated tools,
data, models and
language to users
 DSS Systems Analysis
◦ establish what tools are
needed in the decision
process
 Design
◦ iterative process
 MIS Philosophy
◦ provide structured
information to end users
 MIS Systems Analysis
◦ identify information
requirements up front
 Design
◦ deliver system based on
frozen requirements
 A group decision support system (GDSS) is an interactive
computer based system that facilitates a number of decision-
makers (working together in a group) in finding solutions to
problems that are unstructured in nature. They are designed in
such a way that they take input from multiple users interacting
simultaneously with the systems to arrive at a decision as a
group.
 The tools and techniques provided by group decision support
system improve the quality and effectiveness of the group
meetings. Groupware and web-based tools for electronic
meetings and videoconferencing also support some of the
group decision making process, but their main function is to
make communication possible between the decision makers.
 In a group decision support system (GDSS) electronic
meeting, each participant is provided with a computer. The
computers are connected to each other, to the facilitator’s
computer and to the file server. A projection screen is available
at the front of the room. The facilitator and the participants can
both project digital text and images onto this screen.
 A group decision support system (GDSS) meeting comprises
different phases, such as idea generation, discussion, voting,
vote counting and so on. The facilitator manages and controls
the execution of these phases. The use of various software
tools in the meeting is also controlled by the facilitator.
 Hardware: It includes electronic hardware like computer, equipment used
for networking, electronic display boards and audio visual equipment. It
also includes the conference facility, including the physical setup – the
room, the tables and the chairs – laid out in such a manner that they can
support group discussion and teamwork.
 Software Tools: It includes various tools and techniques, such as electronic
questionnaires, electronic brainstorming tools, idea organizers, tools for
setting priority, policy formation tool, etc. The use of these software tools
in a group meeting helps the group decision makers to plan, organize ideas,
gather information, establish priorities, take decisions and to document the
meeting proceedings. As a result, meetings become more productive.
 People: It compromises the members participating in the meeting, a trained
facilitator who helps with the proceedings of the meeting, and an expert
staff to support the hardware and software. The GDSS components
together provide a favorable environment for carrying out group meetings.
 Ease of Use: It consists of an interactive interface that makes working with GDSS
simple and easy.
 Better Decision Making: It provides the conference room setting and various
software tools that facilitate users at different locations to make decisions as a
group resulting in better decisions.
 Emphasis on Semi-structured and Unstructured Decisions: It provides
important information that assists middle and higher level management in making
semi-structured and unstructured decisions.
 Specific and General Support: The facilitator controls the different phases of the
group decision support system meeting (idea generation, discussion, voting and
vote counting etc.) what is displayed on the central screen and the type of ranking
and voting that takes place, etc. In addition, the facilitator also provides general
support to the group and helps them to use the system.
 Supports all Phases of the Decision Making: It can support all the four phases of
decision making, viz intelligence, design, choice and implementation.
 Supports Positive Group Behavior: In a group meeting, as participants can share
their ideas more openly without the fear of being criticized, they display more
positive group behavior towards the subject matter of the meeting.
 Electronic Questionnaire: The information generated using the questionnaires
helps the organizers of the meeting to identify the issues that need immediate
attention, thereby enabling the organizers to create a meeting plan in advance.
 Electronic Brainstorming Tools: It allows the participants to simultaneously
contribute their ideas on the subject matter of the meeting. As identity of each
participant remains secret, individuals participate in the meeting without the fear of
criticism.
 Idea Organizer: It helps in bringing together, evaluating and categorizing the
ideas that are produced during the brainstorming activity.
 Tools for Setting Priority: It includes a collection of techniques, such as simple
voting, ranking in order and some weighted techniques that are used for voting and
setting priorities in a group meeting.
 Policy Formation Tool: It provides necessary support for converting the wordings
of policy statements into an agreement.

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UNIT 3 PPT MIS.pptx

  • 2.
  • 3.
  • 4.  Management ◦ Involves all aspects of  Planning  Organising  Staffing  Budgeting  Co-ordinating  Controlling
  • 5.  Information coming from both External & Internal Sources as a result of processing huge amount of rapidly changing data with respect to ◦ Human Resource : Capabilities, Experiences, Challenges, Morale, Engagement with jobs, pay & perks ◦ Operation: inventory status, (Think of JIT) production rate- present, expected & future, state of equipment, quality assurance. ◦ Technology: Present, future, new products, future needs, changing customer needs and technological possibilities ◦ Finance and Accounts: Revenue, sales, profits, Receivables, Amount payable, Cash Flow, Market Capital, Equity Price etc. ◦ Environment- External & Internal, Political Conditions, Economic State, Social needs, technological influences ◦ Market : Customer preferences, Competitor's moves, Vendor’s moods and responses ◦ Anything other that manager might consider relevant
  • 6.  Computers  Software  Networking  Holistic, logical and also Creative approach  Fast, Responsive, Analytical, always available to support decision making
  • 7.
  • 8.  An 'MIS' is a planned system of the collecting, processing, storing and disseminating data in the form of information needed to carry out the functions of management.  MIS refers broadly to a computer-based system that provides managers with the tools for organizing, evaluating and efficiently running their departments.  Objectives ◦ Support managerial work. ◦ Support decision making.
  • 9. ESSENTIAL REQUIREMNETS FOR AN EFFECTIVE MIS QUALIFIED SYSTEM AND MANAGEMENT STAFF SYSTEM AND COMPUTER EXPERTS MANAGEMENT EXPERTS FUTURISTIC PERSPECTIVE SUPPORT OF TOP MANAGEMENT COMMON DATABASE CONTROL AND MAINTAINANCE OF MIS
  • 10. Essential Requirement of an Effective MIS: (i) Qualified System and Management Staff: The prerequisite of an effective MIS is that it should be managed by qualified officers. These officers should have a mutual understanding about the roles and responsibilities of each other. Understand clearly the view of their fellow officers. For this, each organization should have two categories of officers: (a) System and Computer Experts who in addition to their expertise in their subject area , they should also be capable of understanding management concepts to facilitate the understanding of problems asked by concern. They should also be clear about the process of decision making and information requirements for planning. (b)Management experts who should also understand quite-clearly the concepts and operations of a computer. This basic knowledge of computer will be useful will place them in a comfortable position, while working with systems, technicians in designing or otherwise, of the information system. (ii) Futuristic Perspective: An effective MIS should be capable of meeting the future requirements of its executives as well. This capability can be achieved by regular monitoring and updating the MIS.
  • 11. (iii) Support of Top Management: For a management information system to be effective, it must receive the full support of top management. The Reasons for this are : (a) Subordinate managers are usually lethargic about activities which do not receive the support of their superiors. (b) The resources involved in computer based information system are larger and are growing larger and larger in view of importance gained by management information system. (iv) Common Database: It is an integrated collection of data and information which is utilized by several information subsystems of an organization. A common database may be defined as a super file which consolidates and integrates data records formerly stored in a separate data file. Such a database can be organized as an integrated collection of data records into a single super file or it can be organized as an integrated collection of several data file. (v) Control and maintenance of MIS: Control of the MIS means the operation of the system as it was designed to operate. Sometimes, users develop their own procedures or short cut methods to use the system
  • 12.  Data Capturing  Data Storage  Data Processing, analysis, forecasting, identifying trends  Information retrieval  Information dissemination  Fulfilling other relevant functional requirements
  • 13.
  • 14.  Rapidly Changing Environment  Huge amount of Data and Information  Constraint of Time and Need for Speed  MIS analyses, stores, helps in retrieval, presents information automatically in routine formats and assists in scanning need based specific inputs, dissemination of data in helpful ways to all those who need it.
  • 15.
  • 16.
  • 17.  Management is decision making  The manager is a decision maker  Now fast changing, complex environment  Factors affecting decision making o Technology/Information/Computers o Structural Complexity/Competition o International Markets/Political Stability o Consumerism/Changes, Fluctuations
  • 18.
  • 19. data processing and management information Customer Management Customer Order Processing System orders deliv. note invoice database Management Information System Data: icustomers iproducts iprices iorders iinvoices
  • 20. 1. STRATEGIC SUPPORT 2. MANAGEMENT BY OBJECTIVES 3. DATA PROCESSING
  • 21. • Aid in decision making. • Better planning and control. • Core competencies. • Quick reflexes. • Enhance supply chain management.
  • 22.
  • 23. Business transaction processing systems accumulate vast amounts of data. Information systems use that data to produce management information for:  Senior managers – for strategic management  Middle Managers – for tactical planning and control.  Operational Staff – for day to day decision making in the production process
  • 24. Decision making levels in the management hierarchy control feedback strategic tactical operationa l Anthony’s triangle
  • 25.  Monitor the strategic performance of the organization and its overall direction in the political, economic, and competitive business environment  Unstructured Decisions oNot possible to specify in advance most of the decision procedures to follow oDecision maker must provide judgement, evaluation and insights to a novel, important and nonroutine- type decision  Require more summarized, ad hoc, unscheduled reports, forecasts, and external intelligence to support their more unstructured planning and policy-making responsibilities
  • 26. Strategic Management Responsible for major marketing, organisational and investment decisions Informed by management information on:  Organisational performance (sales).  Organisational finance.  Competitors  Trends in the economy and society.
  • 27.  Allocate resources and monitor the performance of their organizational subunits, including departments, divisions, process teams, and other workgroups  Semistructured Decisions oSome decision procedures can be prespecified, but not enough to lead to a definite recommended decision oOnly part of the decision has a clear-cut answer provided by an accepted procedure  Require information from both the operational level and the strategic level to support their semistructured decision making responsibilities
  • 28. Tactical Management Implementing company policy at departmental level and dealing with issues as they arise. Informed by management information on:  Departmental performance (sales).  Departmental finance.  Operational metrics.
  • 29.  Direct the use of resources and the performance of tasks according to procedures and established budgets and schedules  Structured Decisions oThe procedures to follow when a decision is needed can be specified in advance oInvolves a repetitive and routine-type decision where there is a definite procedure to follow  Require more prespecified internal reports emphasizing detailed current and historical data comparisons that support day-to-day operations
  • 30. Operational Staff The level where the day to day activities of the company occur Informed by management information on:  Specific cases and events that need attention.
  • 31. • Senior managers: • Make many unstructured decisions • E.g. Should we enter a new market? • Middle managers: • Make more structured decisions but these may include unstructured components • E.g. Why is order fulfillment report showing decline in Minneapolis? • Operational managers, rank and file employees • Make more structured decisions • E.g. Does customer meet criteria for credit?
  • 32. Senior managers, middle managers, operational managers, and employees have different types of decisions and information requirements.
  • 34.  Development Of Computing Power  Development Of Management Thinking And Practices  Growth Of Internet  Transformation From Isolated Markets To Global World  Development Of Operational Practices  Growth Of E-banking Possibilities  Change In Work Environment, Explosion Of Data, Severe Competition,  Ever Increasing Need For Faster And More Accurate Decision Making  Explosion Of E-commerce Riding On Internet & E Banking Possibilities
  • 35.  Primarily For Data Storage & Processing  Computers Were Installed In Computer Center Or In Electronic Data Processing Department  Usage Revolved Around Accounting, Record Keeping And Attendance, Pay Roll Etc.
  • 36.  Shift from Data to Information  Focus shifted from Bare Data to analysis  Logical thinking  Planned systematic Steps  Development of MIS Right Info in right time to the right people.
  • 37.  Facilitated Real time Demand and Use of Computers for Decision Making- Ex What if analysis.  PC-XT  PC-AT  PC-086  PC-186  PC-286  PC-386  PC-486  Pentium 1 to IV
  • 38.  Factors Responsible for the development of MIS are numerous and have been a prime concern for many Researchers and Practitioners. Both Internal and external factors must be taken into account when trying to understand and organization’s criteria for deciding about technology. FACTORS AFFECTING GROWTH AND DEVELOPMENT OF MIS INTERNAL FACTORS EXTERNAL FACTORS
  • 39. •Technology suppliers, the degree of innovativeness of the industry, the requirements imposed by major customers and external markets and overall levels of competition and technology sophistication in the industry. Industry level •National policies also affect the organization that indirectly affects the subsystems of the organization. National policies
  • 40. • Technology in terms of exposure and organizational learning ultimately affects its future in developing technology PAST EXPERIENCE WITH TECHNOLOGY • An organization’s characteristic like size, influence the adoption of MIS application in organization. They have more appropriate systems developed for larger firms whereas they have ready made and less expensive systems. ORGANIZATIONAL CHARACTERISTICS • Organization’s strategy reflects its action with market and technology, which ultimately modify its experience and consequently its overall characteristics and capabilities ORGANIZATIONAL PURSUED STRATEGY
  • 41. Short Name Full Form Focus on EDP Electronic Data Processing Data OAS Office Automation System Office Communication MIS Management Information System Information DSS Decision Support System What If Analysis KBS Knowledge Based System Consultancy ESS Executive Support System Support To Top Level Management ES Expert System Automation Of Operations AI Artificial Intelligence Self Learning And Thinking System
  • 42. TPS OAS MIS DSS KBS ESS ES AI
  • 43. Location of MIS in the Organization – Concept and Design.
  • 44.
  • 45.  Information technology and organizations influence each other ◦ Relationship influenced by organization’s  Structure  Business processes  Politics  Culture  Environment  Management decisions
  • 46. This complex two-way relationship is mediated by many factors, not the least of which are the decisions made—or not made—by managers. Other factors mediating the relationship include the organizational culture, structure, politics, business processes, and environment. THE TWO-WAY RELATIONSHIP BETWEEN ORGANIZATIONS AND INFORMATION TECHNOLOGY
  • 47. All organizations are composed of individual routines and behaviors, a collection of which make up a business process. A collection of business processes make up the business firm. New information system applications require that individual routines and business processes change to achieve high levels of organizational performance. FIGURE 3-4 ROUTINES, BUSINESS PROCESSES, AND FIRMS
  • 48. The services a firm is capable of providing to its customers, suppliers, and employees are a direct function of its IT infrastructure. Ideally, this infrastructure should support the firm’s business and information systems strategy. New information technologies have a powerful impact on business and IT strategies, as well as the services that can be provided to customers. FIGURE 5-1 CONNECTION BETWEEN THE FIRM, IT INFRASTRUCTURE, AND BUSINESS CAPABILITIES
  • 49. As a part of financial department DP organization under a separate direction (MIS) DP organization as separate company Location of MIS in a business organization Different business organizations follow different procedures in locating an information center in the organization. Three forms of organization of MIS/ Data Processing (DP) set-up are generally known. These are as follows:
  • 50. 1) As a part of financial department: In this case, DP personnel headed by a DP manager are placed under the charge of the financial controller or the chief accounts officer. This is so because historically financial applications were the first to be computerized and systematized. 2) DP organization under a separate direction (MIS). Sometimes other names such as direction (management services) or director(data processing) are also used. In this form of organization the DP Manager or the Director of MIS enjoys a status equal to the Financial Controller or the Chief Accounts Officer or any other chief of the functional divisions. This kind of organization is adopted by companies, who recognize data processing and systems designs as important functional areas. 3) DP organization as separate company. This kind of organization, followed largely by consultancy units or subsidiaries of conglomerate of companies, is useful for the speedy and rapid growth of systems design and other related processing activities both with respect to internal application as well as external consultancy.
  • 51. 1. Support the Business Process : Treats inputs as a request from the customer and outputs as services to customer. Supports current operations and use the system to influence further way of working. 2. Support Operation of a Business Organization: MIS supports operations of a business organization by giving timely information, maintenance and enhancement which provides flexibility in the operation of organizations. 3. To Support Decision Making: MIS supports the decision making by employee in their daily operations. MIS also supports managers in decision making to meet the goals and objectives of the organization. Different mathematical models and IT tools are used for the purpose evolving strategies to meet competitive needs. 4. Strategies for an Organization: Today each business is running in a competitive market. MIS supports the organization to evolve appropriate strategies for the business to assented in a competitive environment. MIS for a Business Organization :
  • 52.  A Transaction is any business-related exchange such as payments to employees, sales to customers.  A Transaction Processing System (TPS), is an organised collection of people, procedures, software, databases and devices used to record completed business transactions.
  • 53.  Transaction processing systems ◦ Serve operational managers and staff ◦ Perform and record daily routine transactions necessary to conduct business  Examples: sales order entry, payroll, shipping ◦ Allow managers to monitor status of operations and relations with external environment ◦ Serve predefined, structured goals and decision making
  • 54.  One of the first business systems to be computerised was the payroll system. The primary inputs for a payroll TPS are the number of employee hours worked during the week and pay rate – The primary output consists of pay cheques.  Consider what would happen if an organisation had to function without a TPS for even one day…. How many employees would be paid?? & if paid how many of them would be correct?? 
  • 55.  Transaction Processing systems are used for routine, repetitive and ordinary business transactions, but transactions that are critical to the daily function of that business.
  • 56. Example of a Transaction Prcessing System
  • 57.  EIS system is very fast. It is capable of accessing both internal as well as external data.  EIS basically provides various online options with which the report analysis can be done in detail.  EIS provides its users with drill down facility and reporting tools.  EIS can also be used to make decision just like Decision Support System.  EIS helps management to monitor performance of the organization and thus helps organization to achieve its goals and objectives in the long run. With the introduction of Artificial Intelligence, EIS has lost its importance to a little extent.
  • 58. 1) DRILL DOWN  The investigation of information in detail. For e.g. an executive may notice a  decline in corporate sales by region or by any means. 2) CRITICAL SUCCESS FACTORS (CSFs)  The factors those are most critical to the success of an organization. Such factors  can be strategic, managerial, or operational and are derived mainly from three  resources like organizational, industrial and environmental. 3) STATUS ACCESS  A rapid access to current information, provided by a computer. It may require  daily or even hourly operational tracking and reporting. In extreme cases, real  time reporting may be required. 4) ANALYSIS  Analytic capabilities are available in EIS that use mathematical formulas to  derive an optimal solution directly or to predict a certain result, mainly in solving  structured problems.
  • 59. 5) EXCEPTION REPORTING  It is based on the concept of management by exception. That means in  exception reporting, the executive's attention is called only to cases with a very bad or very good performance. 6) USE OF COLORS AND AUDIO  Typically, critical items are reported not only numerically but also in color. For  example,  GREEN for OK  YELLOW for WARNING  RED for DANGER, that means the performance outside the preset boundaries of the plan  Some systems are equipped with audio signals to alert the user with arriving information
  • 60.  USER INTERFACE: User Interface allows the users to communicate with the EIS. User interface must be easy to use and understand. Users should not be required to understand the complex query languages and other mathematical or statistical formulas.  HARDWARE: Hardware refers to devices by which users give input, data processing and the output is received. Users may give input via keyboard and mouse and CPU may be used for processing and output may be received on monitor or from printer.  SOFTWARE: Software is required for various calculations, providing graphical view to the management, storing data in the form of Information, etc. Software allows user to get information in the form it is actually required.  TELECOMMUNICATION: In today’s world the most important thing is communication. Users may require transferring information from one point to another point. The information might be a little confidential in nature. The secrecy of the information should be well maintained.
  • 61.  MANUFACTURING: It determines whether a process is running correctly or not. It helps in ensuring proper quality control of finished goods. It measures the actual process time and compares with the standard time required for the process. It provides management with daily production report, daily consumption report, safety stock report, economic order quantity, etc.  FINANCIAL: Every organization needs to ensure financial activities are running sound. EIS may help to analyze whether payment has been realized from creditors within stipulated period of time. It can help management in managing various other sources of finance.  ACCOUNTING: It helps in proper accounting and disbursement of accounting functions
  • 62. ADVANTAGES:  EIS is easy for use and saves time of the top level management of the organization.  EIS provide access to timely information in a rapid manner.  EIS provides extensive online analysis tools.  EIS can easily be given a DSS support. DISADVANTAGES:  Functions are limited, can not perform complex calculations  Hard to quantify benefits and to justify implementation of an EIS  Executives may encounter information overload  System may become slow, large, and hard to manage
  • 63. 12/31/2022 12:10 PM Laudon & Laudon 63  Systems specifically designed to support unstructured and semi-structured decisions of senior management  Major features ◦ Drill down ◦ Integration of data from multiple internal sources ◦ Integration of data from external sources ◦ Availability of modeling tools with little required training ◦ Environmental scanning tools ◦ Often used at lower levels of management
  • 64. 12/31/2022 12:10 PM Laudon & Laudon 64  Ability to analyze, compare, and highlight trends  Graphical interface enables users to review data more quickly and with more insight, speeding decision making.  Timeliness and availability of data enables more timely decision making, helping businesses move toward a “sense-and-respond” strategy.  Increases upper management span of control, better monitoring  ESS based on enterprise-wide data can be used for decentralization of decision making or increase management centralization.
  • 65.  Used By the top level personnel in any organisation  Not intended to help in routine operation management or in mid level decision. It is meant for helping in Strategic Decision making.
  • 67.  Deals with Certain as well as uncertain environment  Helps top level managers in taking important Strategic Decisions for the Company  It is not to deal with routine activities but draws information from them  The requirements are normally non routine type, summarised and deal with trends, predictions for future and risk estimation for various options.
  • 68.  A Decision Support System (DSS), is an organised collection of people, procedures, software, databases and devices used to support problem- specific decision making.  The focus of a DSS is on decision making effectiveness.  A DSS helps a manager “do the right thing”  DSS are used when the problem is complex and the information needed to make the best decision is difficult to obtain and use.  A DSS operates from a managerial perspective and it recognises that different managerial styles and decision types require different systems.
  • 70. 12/31/2022 12:10 PM Laudon & Laudon 70 A DSS is a computer system at the management level of an organization that combines data, sophisticated analytical models, and user-friendly software to support semistructured and unstructured decision making.
  • 72. 12/31/2022 12:10 PM Laudon & Laudon 72  DSS database ◦ collection of current or historical data and possibly some external data ◦ may be small dataset downloaded from corporate mainframes to a PC ◦ may be a massive data warehouse  DSS software system contains the software tools for data analysis, with models, data mining, and other analytical tools ◦ collection of mathematical models (statistical models, linear programming, forecasting, sensitivity analysis models) ◦ OLAP or datamining tools  DSS user interface controls the interaction between the user and the tools ◦ graphical, flexible, and easy to use (e.g., Wizards)
  • 73. 12/31/2022 12:10 PM Laudon & Laudon 73 Intelligence Design Choice Implementation Is there a problem? What are the alternatives? Which should you choose? Is the choice working?
  • 74. 12/31/2022 12:10 PM Laudon & Laudon 74  In the intelligence phase ◦ produce more timely data ◦ increase the use of quantitative data ◦ make more data available  In the design phase ◦ generate more alternatives ◦ generate more accurate alternatives  In the choice phase ◦ make faster decisions ◦ sometimes rank the choices
  • 75. 12/31/2022 12:10 PM Laudon & Laudon 75  DSS offer users flexibility, adaptability, and a quick response (usually interactive)  DSS allow users to initiate and control the input and output  DSS operate with little or no assistance from professional programmers  DSS provide support for decisions and problems whose solutions cannot be specified in advance  DSS use sophisticated analysis and modeling tools
  • 76. 12/31/2022 12:10 PM Laudon & Laudon 76  Model-driven DSS are primarily standalone systems that use some type of quantitative model to perform “what-if” and other types of analysis.  Data-driven DSS are systems that analyze large pools of data collected stored in a data warehouse; these systems permit managers to extract useful relationships that are hidden in the data. Two techniques are used ◦ On-line analytical processing (OLAP) ◦ Datamining as knowledge discovery (search for hidden patterns)  Web-based DSS exist for both types (customer decision support systems)
  • 77. 12/31/2022 12:10 PM Laudon & Laudon 77  Most widely used tool for decision support because it is widely accessible to both experienced and inexperienced users  Features of spreadsheets that support DSS construction ◦ Pivot tables for OLAP ◦ Data tables for sensitivity analysis (what-if) ◦ Preprogrammed functions enable the use of many mathematical models ◦ Built in IF-THEN function ◦ Ability to use Visual Basic for Applications ◦ Charts,
  • 78. 12/31/2022 12:10 PM Laudon & Laudon 78  A CDSS is a special type of DSS designed to support the buying decisions of an existing or potential customer. Most current CDSS are Web based  Support exists for both the individual consumer (B2C) and businesses (B2B)  Complexity of products and sophistication of the buyer often determine the nature of a CDSS  Examples of model driven CDSSs ◦ Bankrate (www.bankrate.com ) ◦ Vanguard (www.vanguard.com); see planning and education  Examples of data driven CDSSs ◦ PriceGrabber ( www.pricegrabber.com) ◦ Buying tires (www.tirerack.com)
  • 79. 12/31/2022 12:10 PM Laudon & Laudon 79  A GIS is a DSS for decision aid for map-related decisions  Typical GIS contains ◦ Database of quantitative and qualitative data ◦ Database of maps ◦ Program to display information on maps  Applications of GIS ◦ Identifying the best site to locate a branch office ◦ Targeting pockets of potential customers ◦ Repositioning promotions and advertising ◦ Tracking the spread of disease or crime
  • 80.  Expert Systems give the computer the ability to make suggestions and act like an expert in a particular field.  The unique value of expert systems is that they allow organisations to capture and use the wisdom of experts and specialists.  Expert systems can be applied to almost any field.
  • 81.  Expert Systems run through Inference Engine that depends on ◦ Knowledge Base ◦ Explanation Interface ◦ Knowledge Acquisition Mode ◦ Logic like, “ If- Then- Unless”
  • 82.  Banking System to process small as well as big loans, to establish credit worthiness and other aspects related to loans.  Insurance: to decide on the insurance premium depending on the client’s profile.  Medical Diagnosis: Example X Ray of chest, Comparison of spots on chest x ray with a large data base and to identify to most possible reason for the problem  Engineered Systems: Computers, Automobiles, Air Conditioners  Process and other large Industries: Oil Refineries, Iron and Steel Making, Power Generation
  • 83.  Best Answer: *A good example of application of expert systems in banking area is expert systems for mortgages. Loan departments are interested in expert systems for mortgages because of the growing cost of labour which makes the handling and acceptance of relatively small loans less profitable. They also see in the application of expert systems a possibility for standardised, efficient handling of mortgage loan, and appreciate that for the acceptance of mortgages there are hard and fast rules which do not always exist with other types of loans. EXPERT SYSTEMS: One of the largest area of applications of artificial intelligence is in expert sytems, or knowledge based systems as they are often known. This type of system seeks to exploit the specialised skills or information held by of a group of people on specific areas. It can be thought of as a computerised consulting service. It can also be called an information guidance sytem. Such systems are used for prospecting medical diagnosis or as educational aids. They are also used in engineering and manufacture in the control of robots where they inter-relate with vision systems. The initial attempts to apply artificial intelligence to generalised problems made limited progress as we have seen but it was soon realised that more significant progress could be made if the field of interest was restricted.
  • 84.
  • 85. 12/31/2022 12:10 PM Laudon & Laudon 85  DSS Philosophy ◦ provide integrated tools, data, models and language to users  DSS Systems Analysis ◦ establish what tools are needed in the decision process  Design ◦ iterative process  MIS Philosophy ◦ provide structured information to end users  MIS Systems Analysis ◦ identify information requirements up front  Design ◦ deliver system based on frozen requirements
  • 86.  A group decision support system (GDSS) is an interactive computer based system that facilitates a number of decision- makers (working together in a group) in finding solutions to problems that are unstructured in nature. They are designed in such a way that they take input from multiple users interacting simultaneously with the systems to arrive at a decision as a group.  The tools and techniques provided by group decision support system improve the quality and effectiveness of the group meetings. Groupware and web-based tools for electronic meetings and videoconferencing also support some of the group decision making process, but their main function is to make communication possible between the decision makers.
  • 87.  In a group decision support system (GDSS) electronic meeting, each participant is provided with a computer. The computers are connected to each other, to the facilitator’s computer and to the file server. A projection screen is available at the front of the room. The facilitator and the participants can both project digital text and images onto this screen.  A group decision support system (GDSS) meeting comprises different phases, such as idea generation, discussion, voting, vote counting and so on. The facilitator manages and controls the execution of these phases. The use of various software tools in the meeting is also controlled by the facilitator.
  • 88.  Hardware: It includes electronic hardware like computer, equipment used for networking, electronic display boards and audio visual equipment. It also includes the conference facility, including the physical setup – the room, the tables and the chairs – laid out in such a manner that they can support group discussion and teamwork.  Software Tools: It includes various tools and techniques, such as electronic questionnaires, electronic brainstorming tools, idea organizers, tools for setting priority, policy formation tool, etc. The use of these software tools in a group meeting helps the group decision makers to plan, organize ideas, gather information, establish priorities, take decisions and to document the meeting proceedings. As a result, meetings become more productive.  People: It compromises the members participating in the meeting, a trained facilitator who helps with the proceedings of the meeting, and an expert staff to support the hardware and software. The GDSS components together provide a favorable environment for carrying out group meetings.
  • 89.  Ease of Use: It consists of an interactive interface that makes working with GDSS simple and easy.  Better Decision Making: It provides the conference room setting and various software tools that facilitate users at different locations to make decisions as a group resulting in better decisions.  Emphasis on Semi-structured and Unstructured Decisions: It provides important information that assists middle and higher level management in making semi-structured and unstructured decisions.  Specific and General Support: The facilitator controls the different phases of the group decision support system meeting (idea generation, discussion, voting and vote counting etc.) what is displayed on the central screen and the type of ranking and voting that takes place, etc. In addition, the facilitator also provides general support to the group and helps them to use the system.  Supports all Phases of the Decision Making: It can support all the four phases of decision making, viz intelligence, design, choice and implementation.  Supports Positive Group Behavior: In a group meeting, as participants can share their ideas more openly without the fear of being criticized, they display more positive group behavior towards the subject matter of the meeting.
  • 90.  Electronic Questionnaire: The information generated using the questionnaires helps the organizers of the meeting to identify the issues that need immediate attention, thereby enabling the organizers to create a meeting plan in advance.  Electronic Brainstorming Tools: It allows the participants to simultaneously contribute their ideas on the subject matter of the meeting. As identity of each participant remains secret, individuals participate in the meeting without the fear of criticism.  Idea Organizer: It helps in bringing together, evaluating and categorizing the ideas that are produced during the brainstorming activity.  Tools for Setting Priority: It includes a collection of techniques, such as simple voting, ranking in order and some weighted techniques that are used for voting and setting priorities in a group meeting.  Policy Formation Tool: It provides necessary support for converting the wordings of policy statements into an agreement.