© Ali Nasir Management Information Systems (MIS) Management Information Systems (MIS) Lecture 1: Introduction Muhammad Ali Nasir Fall-2010.

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Management Information Management Information Systems (MIS) Systems (MIS)

Lecture 1: IntroductionMuhammad Ali Nasir

Fall-2010

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Contact Details

alinasir_1@hotmail.com

ali.nasir@askaribank.com.pk

0333-5118112

MIS Spring 2012

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Grading

Final 50 %

Sessionals 20 %

Project 10 %

Quizzes 10 %

Assignments 5 %

Class Participations 5 %

Total 100 %

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Management Information Management Information Systems (MIS) Systems (MIS)

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Management Information Systems

• A System to convert Data from External and Internal Sources into Information and to communicate that Information, in an appropriate form, to Managers at all

levels in all functions to enable them to make timely and effective decisions for planning, directing and controlling the activities for which they are responsible

• Example REVILIOUS• CAR• VAR

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The Role of Managers in OrganizationsThe Role of Managers in Organizations

• Plan• organize• coordinate• decide• control

Management Information Systems

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• Link your firm’s value chain to the value chains of your Link your firm’s value chain to the value chains of your suppliers and customerssuppliers and customers

• Directly links consumer behavior back to distribution, production, and supply chains

• Example: TESCO directly links customer purchases to Example: TESCO directly links customer purchases to suppliers in nearly real time. It is the suppliers’ job to suppliers in nearly real time. It is the suppliers’ job to ensure products are shipped to the store to replace ensure products are shipped to the store to replace purchased productspurchased products

Management Information SystemsTESCO EXAMPLE

Supply Chain Management and Efficient Customer Supply Chain Management and Efficient Customer Response SystemsResponse Systems:

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OBJECTIVES

• Management Information systems support the activities of managers in organizations

• Management Information systems support various business strategies for competitive advantage

• Information systems technology is a factor of production, like capital and labor.

Management Information Systems

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• Transaction cost theory:Transaction cost theory: Firms seek to Firms seek to economize on the cost of participating in markets economize on the cost of participating in markets (transaction costs).(transaction costs).

• MIS MIS lowers market transaction costs for firm, lowers market transaction costs for firm, making it worthwhile for firms to transact with making it worthwhile for firms to transact with other firms rather than grow the number of other firms rather than grow the number of employeesemployees.

Management Information Systems

Economic Impacts: (Continued)Economic Impacts: (Continued)

HOW MIS IMPACT ORGANIZATIONS AND BUSINESS FIRMS

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Organizational and Behavioral ImpactsOrganizational and Behavioral Impacts

MIS Flattens Organizations:

Management Information Systems

• Facilitates flattening of hierarchies

• Broadens the distribution of timely information

• Increases the speed of decision making

HOW MIS IMPACT ORGANIZATIONS AND BUSINESS FIRMS

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Management Information Systems

• Empowers lower-level employees to make decisions without supervision and increase management efficiency

• Management span of control (the number of employees supervised by each manager) will also grow

HOW MIS IMPACT ORGANIZATIONS AND BUSINESS FIRMS

MIS Flattens Organizations: MIS Flattens Organizations: (Continued)(Continued)

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Flattening OrganizationsFlattening Organizations

Management Information Systems

HOW MIS IMPACT ORGANIZATIONS AND BUSINESS FIRMS

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Management Information Systems

• MIS give both large and small organizations additional flexibility to overcome the limitations posed by their size.

• Small organizations use information systems to acquire some of the muscle and reach of larger organizations.

Increasing Flexibility of Organizations:

HOW MIS IMPACT ORGANIZATIONS AND BUSINESS FIRMS

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Management Information Systems

• Large organizations use information technology to achieve some of the agility and responsiveness of small organizations.

• Customization and personalization: MIS makes it possible to tailor products and services to individuals. TOYOTA

HOW MIS IMPACT ORGANIZATIONS AND BUSINESS FIRMS

Increasing Flexibility of Organizations: (Continued)

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THE IMPACT OF MIS ON MANAGEMENT DECISION MAKING

• Organizational structure, hierarchy, specialization, routines, and business processes

• The organization’s culture and politics

Factors to consider while planning a new system:Factors to consider while planning a new system:

Management Information Systems

Implications for the Design and Understanding of Implications for the Design and Understanding of MISMIS

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THE IMPACT OF MIS ON MANAGEMENT DECISION MAKING

• The type of organization and its style of leadership

• Groups affected by the system and the attitudes of workers who will be using the system

• The kinds of tasks, decisions, and business processes that the information system is designed to assist

Management Information Systems

Implications for the Design and Understanding of MIS (Continued)

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THE IMPACT OF MIS ON MANAGEMENT DECISION MAKING

• Flexibility and multiple options for handling data and evaluating information (CREAM WIZARD)

• Capability to support a variety of management management styles, skills, and knowledge

Characteristics to be kept in mind while Designing Characteristics to be kept in mind while Designing Systems:Systems:

Management Information Systems

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THE IMPACT OF MIS ON MANAGEMENT DECISION MAKING

• Capability to keep track of many alternatives and consequences

• Sensitivity to the organization’s bureaucratic and political requirements

Management Information Systems

Characteristics to be kept in mind while Designing Characteristics to be kept in mind while Designing Systems: (Continued)Systems: (Continued)

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• MIS become bound up in organizational politics because they influence access to a key resource (FINANCE).

• They potentially change an organization’s structure, culture, politics, and work.

• Most common reason for failure of large projects is due to organizational and political resistance to change.

Management Information Systems

Change Managment: Change Managment:

HOW MIS IMPACT ORGANIZATIONS AND BUSINESS FIRMS

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Management Information Systems