Management Information System

Management Information System The management information system

(MIS) is a concept of the last decade or two.

It has been understood and described in a number of ways.

It is also popularly known as the information system.

The information and decision system, the computer based information system.

Meaning

MIS

Management Information System

MIS

Management Information System

Management Information System is defined as “An integrated user machine system, for providing information, to support the operations, management analysis and decision-making functions. The system utilizes computer hardware and

software, manual procedures, models for analysis, planning, control, decision making and database”.

-Gordon B. Davis

The MIS is a strategy which provides the information for making decisions regarding the integration of the organization through the process of management.

-Robert G. Murdrick

Management: It is the process by which managers create, direct, maintain and operate purposive organization through systematic, coordinated co-operative human effort.

Information: Information consists of data that have been retrieved, processed or other wise used for informative or inference purposes, argument or as a basis for forecasting or decision making.

System: System can be described simply as a set of elements joined together for a common objective. Example: organization is a system, and the parts are divisions, departments, units etc. are subsystem.

MIS COMPONENTS

Data gathering Data entry Data transformation Information utilization

FUNCTIONS OF AN MIS

Collect data Store and process data Present information to managers

CHARACTERISTICS OF MIS

MIS is management oriented Management directed Integrated system Avoids redundancy in data storage Avoids redundancy in data storage

Common data flow Heavy planning element Subsystem concept Common database Flexibility Computerization

Role of MIS

The role of MIS in an organization is compared to the role of heart in the body. The information is the blood and the MIS is the heart.

MIS satisfies the diverse needs through a variety of systems such as query system, analysis system, modeling systems and DSS.

MIS helps the clerical persons in the transaction processing and answers their queries on the data pertaining to the transaction, status and reference on a variety of document.

The MIS helps the junior management personnel by providing the operational data for planning, scheduling and control, and help them further in decision making at the operations level to correct an out of control situation.

The MIS helps the middle management in short term planning, target setting an controlling the business functions.

The MIS helps the top management in goal setting, strategic planning and evolving the business plans and their implementation.

MIS plays the role of information generation, communication, problem identification and helps in the process of decision making. The MIS, therefore, plays a vital role in the management, administration and operations of an organization.

Impact of MIS

MIS creates an impact on the organization’s functions, performance and productivity. With good MIS support, the management of marketing, finance, production becomes more efficient.

MIS helps the manager to be alert by providing certain information indicating the probable trends in the various aspects of business. The manager’s attention is brought to a situation which is exceptional in nature, inducing him to take an action or a decision in that matter.

MIS creates another impact in the organization which relates to the understanding of the business itself. The MIS begins with the definition of a data entity and its attributes.

MIS calls for a systemization of the business operations for an effective system design.

Since the goals and objectives of the MIS are the products of business goals and objectives, it helps indirectly to pull the entire organization in one direction towards the corporate goals and objectives by providing the relevant information to the people in the organization.

Each age has its own tool. The New Economy’s central tool is Information Technology… just as automation was the central tool for the Industrial Revolution

The need to master the use of Information Technology – in the broader sense of Information and Communication Technologies – is not negotiable, it’s the world’s direction

Information Technology is multidisciplinary and you need to identify the portion you wish to “swim in”

Information Sciences, Telecommunications, Networks, Computing and Emerging Technologies have converged to provide this generation with a tool with which we can acquire appropriate skills, e.g leadership

The Internet remains the world’s largest library, encyclopedia and resource centre rolled into one. Explore it, study the content, meet with the living and the dead who lived your dream, and shorten the distance between you and knowledge

Don’t just get, give. Contribute your own quota to the world’s pool of leadership skills by uploading content to the web.

Introduction to e-Commerce  It is most commonly associated with buying and

selling information, products, and services via the Internet, but it is also used to transfer and share information within organizations through intranets to improve decision-making and eliminate duplication of effort. The new paradigm of eCommerce is built not just on transactions but on building, sustaining and improving relationships, both existing and potential. 

Web surfing brings each eCommerce (Electronic Commerce) site and its product or service into the home, office, room or palm of the client and orders can be placed with the click of a mouse or the push of a key. Personal identification, customer preferences and a sophisticated database of customers can be monitored to provide tailored or customised services to clients. Electronic Fund Transfer (EFT) makes it possible for transaction to be completed with payments carried our real-time and online.

THE CHARACTERISTICS OF INFORMATION

Quality Timeliness Completeness Relevance

Data, Information and Systems

Data & Information Systems What Is a System?

System: A set of components that work together to achieve a common goal

Subsystem: One part of a system where the products of more than one system are combined to reach an ultimate goal

Closed system: Stand-alone system that has no contact with other systems

Open system: System that interfaces with other systems

SYSTEMS

System is defined as a set of elements arranged in an orderly manner to accomplish an objective. The term system is generally used for a group of actions, personnel and procedures, used for processing data. In general, it is a set of related activities which may or may not involve computers.

Data & Information Systems

Figure 1.3 Several subsystems make up this corporate accounting system.

Data, Information,and Systems Information and Managers

Systems thinking Creates a framework for problem solving and

decision making. Keeps managers focused on overall goals and

operations of business.

Data, Information, and Systems

Data, Information,and Systems The Benefits of Human-Computer Synergy

Synergy When combined resources produce output that exceeds

the sum of the outputs of the same resources employed separately

Allows human thought to be translated into efficient processing of large amounts of data

Data, Information, and Systems

Figure 1.6 Components of an information system

Data, Information, and Systems The Four Stages of Data Processing

Input: Data is collected and entered into computer.

Data processing: Data is manipulated into information using mathematical, statistical, and other tools.

Output: Information is displayed or presented.

Storage: Data and information are maintained for later use.

Why Study IS?

Information Systems Careers Systems analyst, specialist in enterprise resource planning

(ERP), database administrator, telecommunications specialist, consulting, etc.

Knowledge Workers Managers and non-managers Employers seek computer-literate professionals who know

how to use information technology.

Computer Literacy Replacing Traditional Literacy Key to full participation in western society

Ethical and Societal IssuesThe Not-So-Bright Side

Consumer Privacy Organizations collect (and sometimes sell)

huge amounts of data on individuals.

Employee Privacy IT supports remote monitoring of

employees, violating privacy and creating stress.

Ethical and Societal IssuesThe Not-So-Bright Side Freedom of Speech

IT increases opportunities for pornography, hate speech, intellectual property crime, an d other intrusions; prevention may abridge free speech.

IT Professionalism No mandatory or enforced code of ethics for IT

professionals--unlike other professions.

Social Inequality Less than 20% of the world’s population have ever used a

PC; less than 3% have Internet access.

NEED FOR INFORMATION

To improve representation of an entity To update the level of knowledge To reduces uncertainty To aid in decision making, planning and

control

ORGANIZATION AND INFORMATION

INTERNAL

TOP MGMT

MIDDLE MGMT

OPERATIONALMGMT

ORGANIZATION STRUCTURE

SOURCES OF INFORMATION

STRUCTURED INFORMATION

EXTRNAL

HIGH

LOW

INTERNAL

TOP MGMT

MIDDLE MGMT

OPERATIONALMGMT

ORGANIZATION STRUCTURE

SOURCES OF INFORMATION

STRUCTURED INFORMATION

EXTRNAL

HIGH

LOW

TOP MGMT

MIDDLE MGMT

OPERATIONALMGMT

ORGANIZATION STRUCTURE

SOURCES OF INFORMATION

STRUCTURED INFORMATION

EXTRNAL

HIGH

LOW

The Traditional Organizational Pyramid

Characteristics of Information at Different Managerial Levels

Data Scope Amount of data from which information is extracted

Time Span How long a period the data covers

Level of Detail Degree to which information is specific

Source: Internal vs. External

Internal data: collected within the organization

External data: collected from outside sources

Media, newsletters, government agencies, Internet

Characteristics of Information at Different Managerial Levels

Structured and Unstructured Data

Structured data: numbers and facts easily stored and retrieved

Unstructured data: drawn from meetings, conversations, documents, presentations, etc.

Valuable in managerial decision making

Characteristics of Information at Different Managerial Levels

Characteristics of Information at Different Managerial Levels

Tabular and Graphical Representation

Certain information better presented graphically

Trends as lines

Distributions as pie charts

Performance comparisons as bar charts

Many people prefer tabular data for complex problem solving

Characteristics of Effective Information

Tabular and Graphical Representation

Cube of tables showing relationships among related variables

Operates on specially organized data or on relational database data

Easily answers questions like “What products are selling well?” or “Where are the weakest-performing sales offices?”

Faster than relational applications

On-line Analytical Processing (OLAP)

OLAP (Cont.)

OLAP (Cont.)

Generate quickly figures and ratios about store sales, inventory, profitability, category reviews and more

Tracking information for operations as well as for sales and marketing use

Business Intelligence

Data presented in real time

Includes moving images representing speed or direction

Changing colors represent rate of change

Use expected to grow

Dynamic Representation

Managers and Their Information Systems

Types of organization

Functional organization Project organization Matrix organization

INFORMATION SYSTEM

Information system are a set of people, procedures and resources that collects, transforms and disseminates information in an organization or a system that accepts data resources as input and process them into information products as output.

Information system is a system that uses the resources of hardware, software and people to perform input, processing, output, storage and control activities that transform data resources into information products.

Organizational Structure IT Flattens the Organization

Eliminates middle managers

The Matrix Structure

People report to different supervisors, depending on project, product, or location of work

More successful for smaller, entrepreneurial firms

IT supports matrix structure

Easier access to cross-functional information

The Matrix Structure

SYSTEMS

System is defined as a set of elements arranged in an orderly manner to accomplish an objective. The term system is generally used for a group of actions, personnel and procedures, used for processing data. In general, it is a set of related activities which may or may not involve computers.

INPUT PROCESS OUTPUT

INPUT PROCESS OUTPUT

FILTER

ENVIRONMENT

Generalized Model of a System

COMPONENTS of a system

TYPES OF SYSTEM

Sub system Black box system Closed system Open system Deterministic system Probability system

Attributes of Information1. Accuracy in representation

2. Complete in content

3. Form of presentation

4. Frequency of reporting

5. Scope of coverage

6. Sources of collection

7. Time dimension: Past, current & future

8. Relevance & utility for DM

9. On time when needed

10. Just in Time

Fundamental Roles of IS in Business

Business: A system of systems Purchasing

Distribution Receiving

Collection Inventory

Sales

Billing Production

Management &

Administration

Business: System of Systems

Purchasing

Distribution Receiving

Collection Inventory

Sales

Billing Production

Management &

Administration

Business: System of Systems

Organizational Levels and Functions

Four Major Types of IS