Lecture 1 Intro to MIS

MANAGEMENT INFORMATION

SYSTEMSAn Introduction

Session: 2014-15 Trimester III

Objectives

MIS, 2015

The Role of Information Systems

MIS : A concept, its importance

Management: What is management?

Information: What is information?

Systems: What are systems?

Definition of MIS

The Role of Information systems

MIS, 2015

Information Systems are Transforming Business

Technology, to a large extent, has driven organizations to

change the way they operate and that includes the way

they manage

Increase in wireless technology use, Web sites

Shifts in media and internet advertising

Globalization challenges and opportunities

Internet has drastically reduced costs of operating on

global scale

The Role of Information systems

MIS, 2015

In the emerging, fully digital firm

Significant business relationships are digitally enabled and mediated

Core business processes are accomplished through digital networks

Key corporate assets are managed digitally

Digital firms offer greater flexibility in organization and management

Time shifting, space shifting

The Role of Information systems

MIS, 2015

Strategic Business Objectives of Information Systems

Business firms invest heavily in information to

achieve six strategic business objectives:

Operational excellence

New products, services, and business models

Customer and supplier intimacy

Improved decision making

Competitive advantage

Survival

MIS : A Concept

MIS, 2015

MIS acronym of three words

Management

Information

System

Management

MIS, 2015

What is management?

Management is an art of getting things done through

others to achieve certain objectives of the organization.

It involves:

Planning

Organizing

Staffing

Directing

Controlling

Management: What is management?

MIS, 2015

Planning

Setting Goals and objectives

Setting time period for the plan

Lay down Polices, procedures, rules, programmes

Forecasting

Budget

Organizing

Analyzing the activities to be performed

Dividing the jobs into subtasks

Allocating and Delegating Authority

Management: What is management?

MIS, 2015

Staffing

Putting right person at the right place

Training and development

Delegation of responsibilities

Directing

Leadership

Motivation

Communication

Management: What is management?

MIS, 2015

Controlling: Resources- Money (capital),

manpower (people), materials, machines,

movement (Distribution, flow), and Information

Fixing standards

Measuring actual

Evaluating

Reporting

Taking corrective action

What Managers do?

MIS, 2015

According the French management theorist, Henri

Fayol, managers perform five major functions.

They plan what they are to do

They organize to meet the plan.

They staff their organization with the necessary

resources.

They direct the available resources to execute the plan.

Finally, they control the resources, keeping them on

course.

Management Hierarchy

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Strategic Management

Management Control

Operational Control

Information

MIS, 2015

What is information?

A definition: Information is data that has been processed

into a form that is meaningful to the recipient (USER)

and is presented in a form which assists decision makers

It may contains----

an element of surprise

reduce uncertainty or

provoke a manager to initiate an action

MIS, 2015

Transforming Data Into Information

Data Inputs Information Outputs

Capture

Manipulation

Storage

Provision of Access

at User Location

External

Data

Internal

Data

Information System

Query Response

Decision Outcome

Expert-System Advice

Transaction Document

Report

Organization

Environment

Information sources

External Information

Govt. polices

Economic trends

Availability and cost of various resources

Competitors activities

Customer feedback

Internal Information

Sales forecast

Financial resources and plans

Capacity utilization pattern

Personnel utilization pattern

Budget allocation and utilization

MIS, 2015

Information needs

MIS, 2015

Information needs of different management levels

Top Management:

Unstructured,

Non-programmed,

Futuristic,

Approximate,

External

Operating Management:

Structured,

Programmed,

Historical,

Exact,

Internal

Characteristics of Information

Relevance

Timeliness

Accuracy

Completeness

Summarization

Reliability

Validity

Consistency

Age

Impartiality

Frequency

Cost-benefit Analysis

MIS, 2015

System

MIS, 2015

A definition of a system:

A system is a set of interrelated components

(subsystems or elementary parts) that

operate together to achieve a common

objective (or multiple objective).

Business is also a system

Systems Concepts

MIS, 2015

General Model of a System:

Input, process and output.

Elements of a system define its boundary

The system is inside the boundary and the

environment is outside the boundary.

Boundary depicts the scope of activities.

Systems Concepts

MIS, 2015

A system is composed of subsystems

The interconnections and interactions between the

subsystems are the INTERFACES.

Example of a system: An information system:

subsystems: PC Monitor, PC software, PC hard disk,

User.

System and its subsystem

MIS, 2015

Management Information Systems

MIS, 2015

Management Information Systems

Definition: A Management Information system is:

an integrated user-machine system

for providing information

to support the operations, management, analysis, and decision making functions

in an organization

The system utilizes

Computer hardware & software

Manual procedures

Models of analysis, planning, control, and decision making and

a database.

Management Information Systems

MIS, 2015

MIS can provide managers with information in a

usable from.

A MIS is a formal Information network using computers to

provide management information for decision making

The goal of MIS is to provide the correct information to

the appropriate manager at the right time in a useful

form.