Mis lecture ppt

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Mis lecture ppt

  1. 1. ManagementInformation System Prof. Arathi S. Purohit
  2. 2. Basic Terminologies Data : Unstructured Raw Facts, Observations or unevaluated messages. Information : Finished Product Database : Finished Product laid in a systematic format. File : Logical Existence / name given Document : Textual Record
  3. 3. Stages in converting Data to Information Capturing Verifying Classifying Arranging / Sorting Summarizing Calculating Storing Retrieving Reproducing Communication
  4. 4. Classification of Information Action Information : Induces action Non – Action Information : Communicates the status Recurring : Regular Information Non – Recurring : Non repetitive Internal Information External Information
  5. 5. Types of Information Strategic Level  For strategic decision making one needs strategic information. It needs more futuristic inputs. Tactical Level  Tactical information used for medium and short term planning by middle level management. Operational Level  It covers current happenings, information about specific product or task.
  6. 6. Introduction to MISAn MIS provides managers with informationand support for effective decision making, andprovides feedback on daily operations.MIS is a system, which makes available theRight Information to the Right Person at theRight place at the Right Time in the RightForm and at Right Cost.
  7. 7. Purpose & ScopeThe Purpose and Scope of MIS can be definedas “The combination of human and computerbased resources that results in the collection,storage, retrieval, communication and use ofdata for the purpose of efficient management ofoperations and for business planning”.
  8. 8. Expectations from MIS Handling of Corpus data Confirmation of validity of data Complex processing through Multi Dimensional analysis. Quick Retrieval Mass Storage Dynamic Timely Communication
  9. 9. MIS Reports Scheduled reportsProduced periodically, or on a schedule (daily, weekly, monthly) Key-indicator reportSummarizes the previous day’s critical activitiesTypically available at the beginning of each day Demand reportGives certain information at a manager’s request Exception reportAutomatically produced when a situation is unusual or requiresmanagement action Drill Down ReportsProvide detailed data about a situation.
  10. 10. Functional Systems Financial MIS Manufacturing MIS Marketing MIS Human Resource MIS Accounting MIS Geographic information systems
  11. 11. Financial Subsystems Financial information to all financial managers within an organization.  Profit/loss and cost systems  Auditing  Internal auditing  External auditing  Uses and management of funds
  12. 12. Manufacturing Subsystems Product Designing Production scheduling Inventory control Manufacturing resource planning (Materials Requirement Planning with Capacity Requirements Planning) Just-in-time inventory and manufacturing (Toyota Processing System) Process control Quality control and testing
  13. 13. Marketing Subsystems Marketing research Product development Promotion and advertising Product pricing
  14. 14. Human Resource Subsystems Human resource planning Personnel selection and recruiting Training and skills inventory Scheduling and job placement Wage and salary administration
  15. 15. Accounting Subsystems Detailed information on accounts payable, accounts receivable, payroll and other petty expenses.
  16. 16. Geographic Information systemsCapable of assembling, storing, manipulatingand displaying geographically referencedinformation.e.g. Segmentation , Targeting, WaterConsumption Ratio, Property Tax,GIS FrameworkASK  Acquire  Examine  Analyze  Act
  17. 17. GIS Subsystems Measure (natural & human made phenomenon) Store (measurements in digital format) Analyze (to create more useful information) Depict ( in form of maps, graphs, lists) Case Study – Role of GIS in NHAI
  18. 18. Elements of Information Systems Hardware Software Data People Procedures
  19. 19. Types of Information Systems TPS MIS DSS EIS KS Note : Basically divided based on Strategic, Managerial & Operational levels.
  20. 20. Evolution of MIS KS / ES AI ESS / EIS DSS MIS OASTPS
  21. 21. Information as a Strategic Resource Achieving strategic competitiveness in the present competitive environment could be enhanced through capturing data, processing the same, analyzing & transforming into useable knowledge.
  22. 22. Contemporary Approaches to MIS Technical Approach – Based on Operation Research techniques Behavioral Approach – Based on user requirement/friendliness Socio – Technical Approach - Combination
  23. 23. Use of Information in Competitive Advantage Due to globalization business environment have become highly competitive and information - based. ”Competitive Advantage is about changing the balance of power between a firm and its competitors in the industry, in the firm’s favor”.Case Study: IS in RestaurantCase Study: IS in SystemX
  24. 24. Porter – Miller IT affecting competition Changes the Industry Structure Produces new business Creates competitive advantage by giving companies new ways to out – perform their rivals.
  25. 25. Changes the Industry Structure Bargaining power of customers Bargaining power of suppliers Threat from new entrants in the firm’s market Threat from substitute products or services Positioning of traditional industry competitors
  26. 26. Produces new business Information derived from the surveys and the analysis of the same may lead to birth of a new business in the existing one. Thus information confers competitive advantage to the firm as it can offer a bundle of goods / services.
  27. 27. New ways to out – perform Functional Uses Strategic Uses
  28. 28. Decision Making Models Classical Model Administrative Models Herbert Simon Model Rational Decision Making  Bounded  Vroom – Jago  Six Step
  29. 29. Classical Model Decisions are in Best Interest of its organization
  30. 30. Administrative Model Decisions are in Best Interest of the Manager.
  31. 31. Herbert Simon Model Phases – Intelligence  Intelligence,  Design,  Choice Org Choice Design
  32. 32. Rational Decision Making Bounded Vroom-Jago  5 processes and 7 questions  AutocraticI(A1) – You  AutocraticII(A2) – team  you  ConsultativeI(C1) – you – team  ConsultativeII(C2) – team + you  GroupII(G2) - team
  33. 33. Vroom-Jago Do you want High quality solution or best fit solution? Is information gathered sufficient to take your own decisions? Do you have structured problems? Do the members agreement towards the towards is mandatory to accomplish a task? Will your group accept your decision? Chances of Disagreement from the group Goal Congruence (Mgr & Group)
  34. 34. Six-Step Model Define the problem Identify decision criteria Weigh the criteria Generate alternatives Rate each alternative Compute the ultimate option
  35. 35. Decision Analysis What If Analysis Sensitivity Analysis Goal Seeking Analysis – Goal Seek Goal Achieving Analysis - Scenarios
  36. 36. Decision Making Tools Decision Tree Decision Rule Decision Table Payoff Matrix Queuing Models
  37. 37. Decision Tree Decision Node – Initial Decision Point Chance Node – Options generated from Decision Points
  38. 38. Decision RuleList out all available options
  39. 39. Decision TablesTables may include both qualitative &quantitative bases for decisions based on thedecision rules.
  40. 40. Payoff MatrixIs a quantitative technique. It identifies thedegree of likelihood of the occurrence of anevent.EV – Expected value derived from possibleconsequences.EV= prob (possibility1) + prob(possibility2)
  41. 41. Queuing Models Queue – Is a line of waiting customers who require service from one or more service providers. Queuing System – Waiting + Customers + Service Providers
  42. 42. Types of Queues Single – Channel, Single – Phase (Clinic) Single – Channel, Multiphase (Dual window) Multi – Channel, Single – Phase (Bank) Multi – Channel, Multiphase (Registration Process) Parallel Single – Phase (Super Markets) Customer Discrimination (Insurance Co.) Converging Arrivals (Traffic Management)
  43. 43. Data Base ManagementSystems DBMS Concepts
  44. 44. DBMS Components Transaction Management Concurrency Control Recovery Management Security Management Language Interface Storeage Management Database Catalog Management
  45. 45. Data Warehouse Every organization generates corpus data from their day-to-day operations. Such data is considered to be the most powerful asset of the company. The data collected in this way needs to be only in “update only” format. For this activity the organization would require high end databases.
  46. 46. Data WarehouseData Warehousing is a new technology thatprovides the users the tools to store thesummarized information from multiple, assorteddatabases in a single repository.A Data Warehouse is aSubject-Oriented,Integrated,Time-Varying,Non-Volatile collection of data.
  47. 47. Data Warehouse Structure
  48. 48. Data Warehouse Structure Data Marts are usually smaller chunks extracted from Data Warehouse and focus on a particular subject or department. Data Farm is a location all the data storing servers and other computer systems are placed.
  49. 49. Components/Elements ofData WarehouseThe major components of a Data Warehouseare:Source of Data Warehouse: (Transactionalor Operational Database) from which the datawarehouse is populated.Processes involved in creating a datawarehouse:4.A process to extract data from the database,and bring it to data warehouse.
  50. 50. Components/Elements ofData Warehouse2. A process to cleanse the data, to ensure itsquality for decision making.3. A process to load the cleansed data into thedata warehouse database.4. A process to create any desired summariesof the data like pre-calculated totals, averagesetc which can be requested often.
  51. 51. Components/Elements ofData WarehouseMetadata: It is “data about data”.Query tools: include an end-user interface forasking questions to the database, in a processcalled On-Line-Analytical Processing (OLAP).They may also include automated tools calledas Data Mining.Users: Finally, there is User or Users for whomthe data warehouse exists and without whom itwould be useless.
  52. 52. Data Warehouse Benefits Time Quantity & Quality Decision Making Business Processes Business ObjectivesNote : Slice and Dice operations
  53. 53. Data Warehouse Tools Access Tools Retrieval Tools Database Reporting Tools Data Analysis Tools Data Mining Tools
  54. 54. Data Mining“Data Mining” or “Knowledge DiscoveryDatabases (KDD)”, is the non-trivial extraction ofimplicit, previously unknown and potentially usefulinformation from the data.
  55. 55. Synonyms of Data Mining Knowledge Discovery in Databases (KDD Knowledge Extraction Data Analysis Information Harvesting Data Fishing, Data Dredging Data Archaeology Information Discovery
  56. 56. Need of Data MiningThe massive growth of data is due to the wideavailability of data in automated form fromvarious sources as Web, Business, Researchetc.We are “Data Rich but Information Poor”Data is useless, if it cannot deliver knowledge.That is why data mining is gaining wideacceptance in today’s world.Data Mining is likely to emerge as animportant managerial decision making tool.
  57. 57. Functioning of Data MiningThe cyclical functioning of Data Mining consistsof the following:Understand the situationBuilding/Developing (suitable) model/sUndertaking analysis based on the model/sInitiating appropriate actionMeasuring the resultsIterations/Repetition
  58. 58. Technologies used in DataMining  Decision rules  Decision Trees  Generic Algorithms  Non-Linear Regression Methods – Dependencies are checked  Case Based Reasoning – Closest past similarities of the present situation.  Neural Networks: An Artificial Neural Network (ANN) is an information processing paradigm that is inspired by the way biological nervous systems, such as the brain, process information.
  59. 59. Advantages of Neural Networks Adaptive learning Self-Organization Real Time Operation Fault Tolerance via Redundant Information Coding
  60. 60. Data Mining Applications Marketing Finance Human Resources / Personnel Manufacturing Services Retail
  61. 61. Data Mining – Banking CaseCustomers apply for a loan / credit card.Information such as age, income, employmenthistory, education, bank accounts, existingdebts etc. is provided.The bank does further verification and furtherdecides whether to issue the loan / credit card.
  62. 62. Trends affecting Data MiningGrossman has identified five external trendswhich affect Data Mining. They are:Data Trends - avoid dumping of data.Hardware Trends – speedy processNetwork Trends – New protocols & languagesScientific Computing Trends - SimulationBusiness Trends - predict opportunities andrisks
  63. 63. DSS DSS are interactive information systems, that rely on an integrated set of user-friendly hardware & software tools to produce and present information that is targeted to support the management in the decision making process.
  64. 64. Components of DSS Database Model Base  Behavioural model  Trend Analysis, Forecasting  Management Science Model  PPM-OB (Budgets)  Operations Research Model  Mathematics (MRP) DSS Software System
  65. 65. Components of DSS Program Model Base Model Management Dialogue Management Data Management(DSS Database) (Enterprise Data) (External Data Source)
  66. 66. Types of DSS Status Inquiry Systems – Searching the available vendors, products availability, procurement, stocks Data Analysis System – Pricing, Promotional activities, positioning Information Analysis System – selection of vendor/product/services based on price, performance, quality etc. Accounting Systems – ROI, Payables, Receivables could be calculated
  67. 67. Decision Support Systems GDSS – User Interactive computer based systems which facilitates the solution by set of decision makers in a group. EIS / ESS – It can handle any type of new situations from which summaries/snapshots can be generated for assisting the top management in effective decision-making. ES – Expert Systems are computer programs that represents the knowledge of some subject specialist with a view to solvig problems or giving advice.
  68. 68. Decision Support Systems KBES – Knowledge based expert systems AI - Artificial Intelligence is a technology which helps the application of computers to the areas that require knowledge, perception, reasoning, understanding which distinguish the human behaviour from computers.
  69. 69. Issues in MIS Security and Control –  External Threats –  through internet connection without a firewall.  Dial-up connections  Internal Threats  Passwords  Employee Discrimination  Access Ids disclosed to unauthenticated user  Authorization levels
  70. 70. Issues in MIS Quality Assurance – Quality indicates the degree of excellence of a product or service. Factors:  Scale (Measurement Tool), Test (Implement), Worst (The least acceptable value) , Plan (Desired Values), Best (Best Fit value that a system is capable of), Now (the actuals derived) Models : Quality Profile Model, Constructive Quality Model, TickIT Initiative
  71. 71. Issues in MIS Ethical and Social Dimensions Ethics means system or code of conduct.  Ethical & Social Dimension  Obligation to Management  Obligation to Society  Obligation to Employer  Obligation to Country
  72. 72. Issues in MIS IPR in ITInformation or related products such as process, code ofconduct, business models, diagrams, layouts can be classifiedas intellectual property which can be viewed, copied & shared.In this process it may loose its original identity. Suchinformation requires protection provisions from:7. Trade Secrets,8. Copyright9. Patents Managing Global Information Systems
  73. 73. Issues in MIS Managing Global Information Systems A Global Information Systems architecture consists of basic information systems required by organizations to coordinate worldwide trade and other tasks. A business driver is an environmental force to which businesses must respond and that influence a business’s direction
  74. 74. Global Information System
  75. 75. Application of MIS NHAI Hotel Information System HRIS eHRM Applicant Tracking Systems SystemX – Budgeting Tools ITES

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