IT09 L24: MANAGEMENT INFORMATION SYSTEMS- Module 1

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Information systems - functions of management - levels of management - framework for information
systems - systems approach - systems concepts - systems and their environment - effects of system approach
in information systems design - using systems approach in problem solving - strategic uses of information
technology

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IT09 L24: MANAGEMENT INFORMATION SYSTEMS- Module 1

  1. 1. Table of contents Course Overview f()s of mngmnt Levels of management IT09 L24: MANAGEMENT INFORMATION SYSTEMS Viju P Poonthottam Asst. Professor Dept. of Information Technology MES CE Kuttippuram February 12, 2014
  2. 2. Table of contents Course Overview f()s of mngmnt Table of contents Table of contents Course Overview f()s of mngmnt Levels of management Levels of management
  3. 3. Table of contents Course Overview f()s of mngmnt Levels of management Course Overview • Information systems • An overview of computer hardware and software components • Application of information systems to functional , Tactical,Strategic area of Management. • Information systems planning
  4. 4. Table of contents Course Overview f()s of mngmnt Levels of management MIS • Any system that helps the manager to achieve his goals or create bussiness advantage.
  5. 5. Table of contents Course Overview f()s of mngmnt functions of management • POLC Levels of management
  6. 6. Table of contents Course Overview f()s of mngmnt functions of management- POLC • Planning • Organizing • Leading • Controlling Levels of management
  7. 7. Table of contents Course Overview f()s of mngmnt Levels of management Planning • Deciding what to do • Evaluating the organisations resources and environment and establishing a set of organisational goals.
  8. 8. Table of contents Course Overview f()s of mngmnt Organizing • Art of how to achieve goals • Organisational structures • Acquiring and training personnel. • Establishing communication network. Levels of management
  9. 9. Table of contents Course Overview f()s of mngmnt Leading • Directing and motivating employees to achieve the organisational goals. Levels of management
  10. 10. Table of contents Course Overview f()s of mngmnt Levels of management Controlling • Enables the managers to determine ,if the organisations performance is on target.
  11. 11. Table of contents Course Overview f()s of mngmnt Levels of management Resposibility • Resposible for adopting to changes in the internal and external environment New competitor Key manager suddenly quits.
  12. 12. Table of contents Course Overview f()s of mngmnt Managerial Functions Levels of management
  13. 13. Table of contents Course Overview f()s of mngmnt Managerial Roles • IID Levels of management
  14. 14. Table of contents Course Overview f()s of mngmnt Managerial Roles • Interpersonal • Informational • Decisional Levels of management
  15. 15. Table of contents Course Overview f()s of mngmnt Interpersonal • Figurehead Roles - Ceremonial duties • Leader Role - Hiring , Training , Motivatiing • Liaison Role - Contact outside the vertical chain. Levels of management
  16. 16. Table of contents Course Overview f()s of mngmnt Levels of management Informational • Managers have formal acees to information from vertically every internal staff as well as extensive external information.
  17. 17. Table of contents Course Overview f()s of mngmnt Levels of management Decisional Role • Entrepreneurial Role - Constantly looking for a new idea. • Distrurbance Handler - When internal and external disputes effect the operations manager should act. • Resource allocator - Manager determine who will get what.(Money,Time ,Manpower) • Negotiator Rule - Represents the organisation in bargain with otheres
  18. 18. Table of contents Course Overview f()s of mngmnt Levels of management Managerial Performance • Ability to distinguish between efficiency and effectiveness
  19. 19. Table of contents Course Overview f()s of mngmnt Managerial Roles Levels of management
  20. 20. Table of contents Course Overview • Top • Middle • First-Line Management f()s of mngmnt Levels of management
  21. 21. Table of contents Course Overview f()s of mngmnt Levels of management Top management –Duties • Organisation’s Senior Executives • Establishing the goals of the orga. • Intract with representitives of the external environment like Financial Instituton.
  22. 22. Table of contents Course Overview f()s of mngmnt Levels of management Middle Management –Duties • Resposible for allocating resources so that the objectives of the top management are accomplished.
  23. 23. Table of contents Course Overview f()s of mngmnt Levels of management First line supervisors –Duties • First line supervisors are responsible for supervising day to day operations . • They typically supervise functions such as order,stock checking , manitenance.
  24. 24. Table of contents Course Overview f()s of mngmnt The Activities of the organisation • Operational • Tactical • Strategic Planning Levels of management
  25. 25. Table of contents Course Overview f()s of mngmnt Activities of an Organisation Levels of management
  26. 26. Table of contents Course Overview f()s of mngmnt Levels of management Operational • Operations are day to day activities of the firm that involve acquirng and consuming resources , First line supervisors must identify, collect and register all transactions that result in acquiring expending these resources.
  27. 27. Table of contents Course Overview f()s of mngmnt Levels of management Tactical • They review the operational activities to make sure that the organisation is meeting its goals and not wasting its resources. • Managers responsible for control, have to decide how to allocate resources to achieve bussiness objectives • Data that can be used to predict future trends help managers make these resource allocation decisions.
  28. 28. Table of contents Course Overview f()s of mngmnt Levels of management strategic planning. • Top Managers carries out strategic planning. • Through managers responsible operational & Tactical decision making , they need to set the organisation’s long range goals. • Eg:-Whether to introduce a new product ,Built new physical plant
  29. 29. Table of contents Course Overview f()s of mngmnt Levels of management A FRAMEWORK FOR INFORMATION SYSTEMS • OPERATIONAL SYSTEMS • Tactical systems • Strategic Planning Systems
  30. 30. Table of contents Course Overview f()s of mngmnt OPERATIONAL SYSTEMS characteristics. • Repetitiveness. • Predictability. • Emphasis on the past • Detailed nature. • Internal origin • Structured form • Great accuracy Levels of management
  31. 31. Table of contents Course Overview f()s of mngmnt Levels of management Tactical systems • tactical system provide middle level managers with the information they need to monitor and control operations and to allocate their resources effectivly • summary reports • exception report • ad hoc reports - need quickly,that may never be needed again
  32. 32. Table of contents Course Overview f()s of mngmnt Tactical systems - charactristics. • Periodic nature • Unexpected findings • Comparative nature • Summary form • Both internal and external sources Levels of management
  33. 33. Table of contents Course Overview f()s of mngmnt Strategic Planning Systems • Ad hoc basis • Unexpected information • Predictive nature • Summary form • External data • Unstructured format • Subjectivity. Levels of management
  34. 34. Table of contents Course Overview f()s of mngmnt Levels of management SYSTEM CONCEPTS • A system is an integrated set of components,or entities,that interact to achieve a particular function or goal • System have characteristics such as boundaries,outputs and inputs,methds of converting inputs to outputs ,and system interfaces
  35. 35. Table of contents Course Overview f()s of mngmnt • System Boundaries: • System and Subsystem • Outputs and Inputs • Subsystem Interface and Inetrface Problems: Levels of management
  36. 36. Table of contents Course Overview f()s of mngmnt Levels of management SYSTEMS AND THEIR ENVRONMENT • Open System • Closed System •
  37. 37. Table of contents Course Overview f()s of mngmnt Levels of management Open System • Open systems operate in an external environment and exchange informatons and material with that environment
  38. 38. Table of contents Course Overview f()s of mngmnt Closed System • Self contained • Does not exchange information with its environment • No feedback Levels of management
  39. 39. Table of contents Course Overview f()s of mngmnt Levels of management System Feedback • Feedback is an indicator of current performance rates when compared to a set of standards. • Positive Feedback • Negative Feedback
  40. 40. Table of contents Course Overview f()s of mngmnt System Feedback Figure: Activities of an organisation Levels of management
  41. 41. Table of contents Course Overview f()s of mngmnt Levels of management System Entropy • System entropy corresponds to a state that occures without maintenance
  42. 42. Table of contents Course Overview f()s of mngmnt Levels of management System Stress and Change • Systems may change over time , Changes may create Stress. • Eg. • Increase Sales • Reduce Cost • Unmonitered Input.
  43. 43. Table of contents Course Overview f()s of mngmnt Deal with Stress • Training • Change Subsystem activities Levels of management
  44. 44. Table of contents Course Overview f()s of mngmnt HOW A SYSTEM WORKS • Divide into Subsystems. • Ensure subsystems to achieve objectives. Levels of management
  45. 45. Table of contents Course Overview f()s of mngmnt Levels of management An Information System as a System • major purpose of an information system is to convert data into information • In a business context, an information system is a subsystem of the business system
  46. 46. Table of contents Course Overview f()s of mngmnt Levels of management An Information System as a System • oparational information system of an organization provide information on the day-to-day activities of a business • eg:- processing sales orders or checking credit • tactical systems -that lets management allocate resources effectively to archive business objectives • strategic planning systems - information systems that support the strategic plans of the business
  47. 47. Table of contents Course Overview f()s of mngmnt Information System - Elements • hardware • software • personnel databases • procedures to accomplish its objectives Levels of management
  48. 48. Table of contents Course Overview f()s of mngmnt Information System - SubSystems • Operational systems Levels of management
  49. 49. Table of contents Course Overview f()s of mngmnt Levels of management Information System - Outputs and Inputs • An information system, like any other system, receives inputs of data and instructions, process the data according to the instructions, and produces outputs
  50. 50. Table of contents Course Overview f()s of mngmnt Levels of management Information System -Hierarchy of Subsystems • The subsystems within an information system can be organized into a hierarchy to represent their functions within the overall system • Each subsystem performs a specialized function • one subsystem may record sales transactions as input, another subsystem may check customer credit and another may check inventory availability
  51. 51. Table of contents Course Overview f()s of mngmnt Levels of management Information System -System Feedback • An information system provides system feedback to a manager about day-to-day activities and about deviations from planned activity • The information systems providing feedback that can be used to allocate resources effectively, such as inventory and personnel, are called tactical systems
  52. 52. Table of contents Course Overview f()s of mngmnt Levels of management Information System -Subsystem Interfaces • the outputs of one subsystem become the inputs into the next
  53. 53. Table of contents Course Overview f()s of mngmnt Levels of management Information System -Internal Controls • Good information system also have internal standards to make sure that data are processed accurately. • Input controls,for example,ensure that input data are valid before they are processed • password
  54. 54. Table of contents Course Overview f()s of mngmnt Levels of management Effect of the Systems Approach on Information System Design • The Structure of an Enterprise
  55. 55. Table of contents Course Overview f()s of mngmnt Levels of management USING THE SYSTEM APPROACH IN PROBLEM SOLVING • Define the problem. • Gather data describing the problem. • Identify alternative solutions. • Evaluate these alternatives. • Select and implement the best alternative. • Follow up to determine whether the solution is working
  56. 56. Table of contents Course Overview f()s of mngmnt Levels of management Define the Problem • .The first step in the systems approach to problem solving is to define the problem • if the wrong problem is identified, the entire effort to change the system will be off track • problems that are identified may be symptoms of the real problem
  57. 57. Table of contents Course Overview f()s of mngmnt Levels of management Gather Data Describing the Problem • The owner may study the environment, current standards, management, input resources, and internal procedures to gain an understanding of the problem
  58. 58. Table of contents Course Overview f()s of mngmnt Levels of management Identify alternative solutions owner needs to identify some alternatives responses • Alternative 1 : Investigate alternative manufacturers • Alternative 2 : Decrease the cost of sales by introducing online sales etc • Alternative 3 : Differentiate the dealerships product by offering support services •
  59. 59. Table of contents Course Overview f()s of mngmnt Levels of management Evaluates the alternatives • The owner evaluates the extent to which each alternatives enables the organization to achieve its objectives
  60. 60. Table of contents Course Overview f()s of mngmnt Levels of management Select and Implement the Best Alternative • Select and Implement the Best Alternative
  61. 61. Table of contents Course Overview f()s of mngmnt Levels of management Follow Up to Determine Whether the Solution is Working • Follow Up to Determine Whether the Solution is Working
  62. 62. Table of contents Course Overview f()s of mngmnt Levels of management HOW INFORMATION TECHNOLOGY SUPPORTS BUSINESS ACTIVITIES • One of the first challenges managers face is understanding how they can use information technology to support business activities • Porter and Millars concept of the value chain helps explain which business activities can be analyzed and transformed through the use of information technology • The value chain divide a companys activities into value activities, the distinct activities it must perform to do business
  63. 63. Table of contents Course Overview f()s of mngmnt Value activities consist • primary activities • support activities Levels of management
  64. 64. Table of contents Course Overview f()s of mngmnt Levels of management Primary activities - LOOMS include • Inbound logistics - delivery and handling of incoming materials • operations - manufacturing related functions • outbound logistics - order processing and shipping goods and services to customers • marketing - advertising,promotion,and sales force management • service - support repair and maintenance of its goods and services
  65. 65. Table of contents Course Overview f()s of mngmnt Levels of management Support activities - POTH • include the resources that support the primary activities of the business
  66. 66. Table of contents Course Overview f()s of mngmnt Levels of management Support activities - POTH • Purchasing - Online links to suppliers • Organisation - Office Automation • Technology - Computer aided design and manufacturing • Human resources - Skill database
  67. 67. Table of contents Course Overview f()s of mngmnt Support activities Figure: Support activities Levels of management
  68. 68. Table of contents Course Overview f()s of mngmnt Levels of management interorganisational systems( IOSs) • Information systems that link suppliers and buyers, manufactures and distributors, and distributors and buyers
  69. 69. Table of contents Course Overview f()s of mngmnt Levels of management USING INFORMATION TECHNOLOGY FOR COMPETITIVE ADVANTAGE • New developments in information technology,such as telecommunications,computer aided design,and office automation,have created unprecedented opportunities. • •
  70. 70. Table of contents Course Overview f()s of mngmnt Levels of management Industry level effect • Products and services : Information technology can change the nature of products and services by altering the product development cycle or by increasing the speed of distribution • eg :- If a textbook publisher uses word processing and computer based typesetting to generate publications • Production economics : Can modify the production aspects • Markets: Consumers have become increasingly computer literate ATM etc
  71. 71. Table of contents Course Overview f()s of mngmnt Levels of management Firm level effect • At the firm level, the competitive forces facing the firm determine the effect of information technology. • Five competitive forces influence the probability of an industry
  72. 72. Table of contents Course Overview f()s of mngmnt Five competitive forces- Firm level • buyers • suppliers • substitute products • new entrants • rivals Levels of management
  73. 73. Table of contents Course Overview f()s of mngmnt Levels of management Strategy Level • Low cost leadership - Low cost leadership refers to the ability to reduce costs or to improve productivity without incurring additional costs Eg:- If a commercial bank can process thousands of demand deposit transactions per day at 2 Rs per transaction • Product differentiation - It is achieved by adding value or unique features to a product to improve its quality & services. A good example of product differentiation is giving customer electronic access to an online service network • Market Specialization The third competitive strategy porter describe is market specialization, which is achieved by concentrating on a particular product niche. Eg: Electronic Library
  74. 74. Table of contents Course Overview f()s of mngmnt Levels of management Reference • Management Information System - The Managers view Robert Schultheis Mary Sumner
  75. 75. Table of contents Course Overview f()s of mngmnt Contact • vijupoonthottam@yahoo.co.in Levels of management

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