Management Information System

For B.Com.(H) 6th Sem-2015

Page No. 1/57 Dr. Vineet Kumar

Institute of Management Sciences University of Lucknow.

Tutorial

for

Management Information

Systems




Introduction

1.1 MANAGEMENT INFORMATION SYSTEM ( MIS) CONCEPT

The concept of the MIS has evolved over a period of time comprising many

different facets of the organizational function. MIS is a necessity of all the

organizations. The initial concept of MIS was to process data from the

organization and present it in the for of reports at regular intervals. The system

was largely capable of handling the data from collection to processing. It was

more impersonal, requiring each individual to pick and choose the processed

data and use it for his requirements. This concept was further modified when a

distinction was made between data and information. The information is a product

of an analysis of data. This concept is similar to a raw material and the finished

product. What are needed are information and not a mass of data. However, the

data can be analyzed in a number of ways, producing different shades and

specifications of the information as a product. It was, therefore, demanded that

the system concept be an individual- oriented, as each individual may have a

different orientation. Towards the information. This concept was further modified,

that the system should present information in such a form and format that it

creates an impact on its user, provoking a decision or an investigation. It was




later realized then even though such an impact was a welcome modification,

some sort of selective approach was necessary in the analysis and

reporting. Hence, the concept of exception reporting was imbibed in MIS. The

norm for an exception.

Was necessary to evolve in the organization. The concept remained valid till and

to the extent that the norm for an exception remained true and effective. Since

the environment turns competitive and is ever changing, fixation of the norm for

an exception becomes ka futile exercise at least for the people in the higher

echelons of the organization. The concept was then evolved that the system

should be capable of handling a need based exception reporting. This need

maybe either of an individual or a group of people. This called for keeping all

data together in such a form that it can be accessed by anybody and

can be processed to suit his needs. The concept is that the data is one but it can

be viewed

by different individuals in different ways. This gave rise to the concept of DA

.ABASE, and the MIS based on the DATABASE proved much more effective.

Over a period of time, when these conceptual developments were taking place,

the concept of the end user computing using multiple databases emerged. This

concept brought a fundamental charge in MIS. The change was decentralization




of the system and the user of the in formation becoming independent of

computer professionals. When this becomes a reality, the concept of MIS

changed to a decision making system. The job in a computer department is to

manage the information resource and leave the task of information processing to

the user. The concept of MIS in today.s world is a system which handles the

databases, databases, provides com-putting facilities to the end user and gives a

variety of decision making tools to the user of the system.

The concept of MIS gives high regard to the individual and his ability to use

information. An MIS gives information through data analysis. While analyzing the

data, it relies on many academic disciplines. These include the theories,

principles and concepts from the Management Science, Psychology and Human

Behavior, making the MID more effective and useful. These academic disciplines

are used in designing the MIS, evolving the decision support tools for modeling

and decision - making.

The foundation of MIS is the principles of management and if its practices. MIS

uses the concept of management Information System can be evolved for a

specific objective if it is evolved after systematic planning and design. It calls for

an analysis of a business, management views and policies, organization culture




and the culture and the management style. The information should be generated

in this setting and must be useful in managing the business. This is possible only

when it in conceptualized as system with an appropriate design. The MIS,

therefore, relies heavily on the systems theory offers solutions to handle the

complex situations of the input and output flows. It uses theories of

communication which helps to evolve a system design capable of handling data

inputs,

process, and outputs with the lest possible noise or distortion in transmitting the

information form a source to a destination. It uses the principles of system

Design, Viz.,

an ability of continuous adjustment or correction in the system in line with the

environmental change in which the MIS operates. Such a design help to keep the

MIS tuned with the business managements needs of the organization.

The concept, therefore, is a blend of principle, theories and practices of the

Management, Information and System giving rise to single product known as

Management Information System (MIS). The Physical view of the MIS can be

seen as assembly of several subsystems based on the databases in the

organization. These subsystems range from data collection, transaction




processing and validating, processing, analyzing and storing the information in

databases. The subsystem could be at a functional level or a corporate level.

The MIS is a product of a multi- disciplinary approach to the business

management. It is a product which needs to be kept under a constant review and

modification to meet the corporate needs of the information. It is prescribed

product design for the organization. The MIS differs since the people in two

organizations involved in the same business. The MIS is for the people in the

organization. The MIS model may be the same but it differs greatly in the

contents.

The MIS, therefore, is a dynamic concept subject to change, time and again, with

a change in the business management process. It continuously interacts with the

internal and the external environment of the business and provides a corrective

mechanism in the

system so that the change needs of information are with effectively. The MIS,

therefore, is a dynamic design, the primary objectively. The MIS, therefore, is a

dynamic design the primary objective of which is to the information the

information for decision making and it is developed considering the




organizational fabric, giving due regard to the people in the organizational the

management functions and the managerial and the managerial control.

The MIS model of the organization changes over a time as the business passes

through several phases of developmental growth cycle. It supports the

management of the business in each phase by giving the information which is

crucial in that phase. Every has

critical success factors in each phase of growth cycle and the MIS model gives

more information on the critical success factors for decision making.

1.2 MIS DEFINITION

The Management Information System (MIS) is a concept of the last decade or

two. It has been understood and described in a number ways. It is also known as

the Information System, the Information and Decision System, the Computer-

based information System.

The MIS has more than one definition, some of which are give below

.

1. The MIS is defined as a system which provides information support for

decision making in the organization.




2. The MIS is defined as an integrated system of man and machine for providing

the information to support the operations, the management and the decision

making function in the organization.

3. The MIS is defined as a system based on the database of the organization

evolved for the purpose of providing information to the people in the organization.

4. The MIS is defined as a Computer . based Information System.

Thought there are a number of definitions, all of them converge on one single

point, i.e., the MIS is a system to support the decision making function in the

organization. The difference lies in defining the elements of the MIS. However, in

today.s world MIS a computerized .business processing system generating

information for the people in the organization to meet the information needs

decision making to achieve the corporate objective of the organization. In any

organization, small or big, a major portion of the time goes in data collection,

processing, documenting it to the people. Hence, a major portion of the

overheads goes into this kind of unproductive work in the organization. Every

individual in an organization is continuously looking for some information which is




needed to perform his/her task. Hence, the information is people-oriented and it

varies

with the nature of the people in the organization.

The difficulty in handling this multiple requirement of the people is due to a

couple of reasons. The information is a processed product to fulfill an imprecise

need of the people. It takes time to search the data and may require a difficult

processing path. It has a time value and unless processed on time and

communicated, it has no The scope and the quantum of information is individual-

dependent and it is difficult to conceive the information as a well-defined product

for the entire organization. Since the people are instrumental in any business

transaction, a human error is possible in conducting the same. Since a human

error is difficult to control, the difficulty arises in ensuring a hundred per cent

quality assurance of information in terms of completeness, accuracy, validity,

timeliness and meeting the decision making needs.

In order to get a better grip on the activity of information processing, it is

necessary to

have a formal system which should take care of the following points:




Handling of a voluminous data.

Confirmation of the validity of data and transaction.

Complex processing of data and multidimensional analysis.

Quick search and retrieval.

Mass storage.

Communication of the information system to the user on time.

Fulfilling the changing needs of the information.

The management information system uses computers and communication

technology

to deal with these points of supreme importance.

1.3 ROLE OF THE MANAGEMENT INFORMATION SYSTEM

The role of the MIS in an organization can be compared to the role of heart in the

body. The information is the blood and MIS is the heart. In the body the heart

plays the role of supplying pure blood to all the elements of the body including

the brain.




The heart works faster and supplies more blood when needed. It regulates and

controls the incoming impure blood, processes it and sends it to the destination

in the quantity needed. It fulfills the needs of blood supply to human body in

normal course and also in crisis.

The MIS plays exactly the same role in the organization. The system ensures

that an appropriate data is collected from the various sources, processed, and

sent further to all the needy destinations. The system is expected to fulfill the

information needs of an individual, a group of individuals, the management

functionaries: the managers and the top management.

The MIS satisfies the diverse needs through a variety of systems such as Query

Systems, Analysis Systems, Modeling Systems and Decision Support Systems

the MIS helps in Strategic Planning, Management Control, Operational Control

and Transaction Processing.

The MIS helps the clerical personnel in the transaction processing and answers

their queries on the data pertaining to the transaction, the status of a particular

record and references on a variety of documents. The MIS helps the junior

management personnel by providing the operational data for planning,




scheduling and control, and helps them further in decision making at the

operations level to correct an out of control situation. The MIS helps the middle

management in short them planning, target setting and controlling the business

functions. It is supported by the use of the management tools of planning and

control. The MIS helps the top management in goal setting, strategic planning

and evolving the business plans and their implementation.

The MIS plays the role of information generation, communication, problem

identification and helps in the process of decision making. The MIS, therefore,

plays a vita role in the management, administration and operations of an

organization.

1.4 IMPACT OF THE MANAGEMENT INFORMATION SYSTEM

Since the MIS plays a very important role in the organization, it creates an impact

on the organization.s functions, performance and productivity. The impact of MIS

on the functions is in its management. With a good support, the management of

marking, finance, production and personnel become more efficient. The tracking

and monitoring of the functional targets becomes easy. The functional, managers

are informed about the progress, achievements and shortfalls in the probable




trends in the various aspects of business. This helps in forecasting and long-

term perspective planning. The manager.s attention is brought to a situation

which is exceptional in nature, inducing him to take an action or a decision in the

matter. A disciplined information reporting system creates a structured data and

a knowledge base for all the people in the organization. The information is

available in such a form that it can be used straight away or by blending analysis,

saving the manager.s valuable time.

The 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. It uses a dictionary if data, entity and attributes,

respectively, designed for information generation in the organization. Since all

the information system use the dictionary, there is common understanding of

terms and terminology in the organization brining clarity in the communication

and a similar understanding an even of the organization.

The MIS calls for a systemization of the business operation for an affective

system design. A well designed system with a focus on the manger makes an

impact on the managerial efficiency. The fund of information motivates an

enlightened manger to use a variety of tools of the management. It helps him to




resort to such exercises as experimentation and modeling. The use of computers

enables him to use the tools techniques which are impossible to use manually.

The ready-made packages make this task simpler. The impact is on the

managerial ability to perform. It improves the decision making ability

considerably.

Since the MIS works on the basic systems such as transaction processing and

databases, the drudgery of the clerical work is transferred to the computerized

system, relieving the human mind for better work. It will be observed that a lot of

manpower is engaged in this activity in the organization. It you study the

individual.s time utilization and its application; you will find that seventy per cent

of the time is spent in recording, searching, processing and communication. This

is a large overhead in the organization. The MIS has a direct impact on this

overhead. It creates an information- based work culture in the organization.

1.5 MANAGEMENT INFORMATION SYSTEM AND COMPTER

Translating the real concept of the MIS into reality is technically, an infeasible

proposition unless computers are used. The MIS relies heavily on the hardware




and software capacity of the computer and its ability to process, retrieve

communicate with no serious limitations.

The variety of the hardware having distinct capabilities makes it possible to

design the MIS for a specific situation. For example, if the organization needs a

large database and very little processing, a computer system is available for such

a requirement. Suppose the organization has multiple business location at long

distances and if the need is to bring the data at one place, process, and then

send the information to various location, it is possible to have a computer system

with a distributed data processing capability. If the distance is too long, then the

computer system can be hooked through a satellite communication system. The

ability of the hardware to store data and process it at a very fast rate helps to

deal with the data volumes, its storage and access effectively. The ability of the

computer to sort and merge helps to organize the data in a particular manner and

process it for complex lengthy computations. Since the computer is capable of

digital, graphic, word image, voice and text processing, it is exploited to generate

information and present it in the form which is easy to understand for the

information user.




The ability of a computer system to provide security of data brings a confidence

in the management in the storage o data on a magnetic media in an impersonal

mode. The computer system provides the facilities such as READ ONLY where

you cannot delete to UPDATE. It provides an access to the selected information

through a password and layered access facilities. The confidence nature of the

data and information can be maintained in a computer system. With this ability,

the MIS become a safe application in the organization.

The software, an integral part of a computer system, further enhances the

hardware capability. The software is available to handle the procedural and

nonprocedural data processing. For example, if you want to use a formula to

calculate a certain result, an efficient language is available to handle the

situation. If you are not use a formula but have to resort every time to a new

procedure, the nonprocedural languages are available.

The software is available to transfer the data from one computer system to

another. Hence, you can compute the results at one place and transfer them to a

computer located at another place for some other use. The computer system

being able to configure to the specific needs helps to design a flexible MIS.




The advancement in computers and the communication technology has the

distance, speed, volume and complex computing an easy task. Hence, designing

the MIS for a specific need and simultaneously designing a flexible and open

system becomes possible, thereby saving a lot of drudgery of development and

maintenance and maintenance of the system. The concept of user . friendly

systems and the end user computing is possible, making information processing

a personalized function.

However, the application of the management principles and practices in todays

complex business world is possible only when the MIS is based on computer

system support.

1.6 MANAGEMENT INFORMATION SYSTEM AND ACADEMICS

The management.s information system draws a lot of support from other

academic disciplines too. The foundation of MIS is the management theory. It

uses the principles and practices of management while designing the system, ant

gives due regard to the theory of organizational behavior. It considers the human

mind as a processor of information. While designing the report format and

forming communication channels, MIS takes into account the behavior of the




manager as an individual and in a group. It gives due regard to the personal

factors such as bias, thinking with a fixed frame of reference, risk aversion,

strengths and weaknesses. Another area of academics is operational research.

The operational research is used for developing the models of management and

they are then incorporated in the MIS as decision support systems. The inventory

control, queuing theory, and resource programming are used in the MIS as

decision support systems. The network theory is used for planning and

controlling large projects. The application of PER / CPM to a project planning is

now easily possible through the MIS support.

In the area of accounting application, it uses the accounting principles to ensure

that the data is correct and valid. It uses the principles of double entry

bookkeeping for balancing the accounts. It uses the accounting methodology for

generating a trial balance sheet and other books of accounts.

The MIS uses the communication theory in a significant manner. The principle of

feedback is used while designing analysis. Systems. While designing the report

format, attention is paid to avoid noise and distortions in the communication

process. The MIS further relies heavily on the decision methodology. It uses

different mathematical techniques to handle the situation of decision making uses




the method of decision- making under certainty for decision- making and action.

The MIS is based on database structures, viz .hierarchical, network and

relational database have roots in the mathematics and the set theory.

The MIS becomes rich in content and more useful when it becomes more and

more a decision- making or decision- support system. The is possible when it

builds decision making systems in MIS which in turn is possible if it draws tools,

techniques, methods, rules and principles from pure and application science, and

use them as an integral part of the system. The MIS draws data from its own

source and uses it in the application of a variety of tools and techniques to solve

the management, mathematics, and accounting. Psychology, communication

theory, operations research and probability theory for building processes,

methods, and decision support systems in designing business application.

1.7 MIS AND THE USER

Every person in the organization is a user of the MIS. The people in the

organization operate at all levels in the hierarchy. A typical user is a clerk, an

assistant, an officer, an executive or a manager. Each of them has a specific task

and a role to play in the management of business. The MIS caters to the needs

of all persons.




The main task of a clerk is to search the data, make a statement and submit it to

the higher level. A clerk can use the MIS for a quick search and reporting the

same to higher level. An assistant has the task of collecting and organizing the

data, and conducting a rudimentary analysis of integrating the data from different

and disciplines to analyze it and make a critical comment if anything adverse is

found. The MIS offers the methods and facilities to integrate the data and report

the same in a proper format. An executive plays the role of a decision maker. He

is in of responsibility and accountability a position of a planner and a decision

maker. He is responsible for achieving the target and goals of the organization.

The MIS provides facilities to analyze the data and offers the decision support

systems to perform the task of execution. The MIS provides an action . oriented

information. The manager has a position of responsibility and accountability for

the business results. His management role expands beyond his management

function. He is a

strategist and a long-term planner. He is a person with a foresight, an analytical

ability and is expected to use these abilities in the functions of top management.

The MIS provides information in a structured or unstructured format for him to

react. The MIS caters to his constant changing needs of information. The user of

the MIS is expected to be a rational person and the design of the MIS is based




on this assumption. However, in reality the impact created on individuals by MIS

is difficult to explain. The nature of the impact in a few cases is negative.

However, this negative impact can be handled with proper training and

counseling.

It is observed that at lower level, is a sense of insecurity. As the MIS takes away

the drudgery of search, collection, writing and reporting the data, the work

vacuum, so created is not easily filled, thus creating a sense of insecurity. To

some extent the importance of the person is also lost, giving rise to a fear of non-

recognition in the organization. At the level of an officer and an executive, the

MIS does the job the of data manipulation and integration. It analyses the data in

a predetermined manner. This means that the knowledge of business is

transferred from an individual to the MIS and is made available to all in the

organization. This change arising out of the MIS creates a sense of being

neglected for knowledge, information and advice. The psychological impact is

larger if the person is not able to cope up with this change by expanding or

enriching the job and the position held by him.

The manager holding a position in the top or middle management suffers from

fear of challenge and exposure. The MIS makes these competitors more




effective as they have access to the information and have an ability to interpret.

This leads to a situation where he is afraid that that his position, decision and

defense will be challenged and may be proved wrong sometime. The risk of

adverse exposure to the higher management also increases. The effects so far

pointed out are all negative and they are seen only in few cases.

The positive effects on the individuals at all levels are that they have become

more effective operators. The time and energy which was spent earlier in

unproductive work is now applied for a productive work. Some are able to use

their analytical skills and knowledge with the in formation support for improving

their position in the organization. Managers, having improved their decision .

making ability, are able to handle the complex situations with relative ease. Some

are benefited by improving their performance and being held in high esteem by

the higher management.

The enterprising managers are able to use the systems and the models for trying

out a Number of alternatives in a given problem situation. The impact of the MIS

on people Of the organization is phenomenal as it has made the same body of

people collectively more effective and productive.




The recent major technological advances in communication such as Multimedia,

Imaging. Graphical User Interfaces (GUI), Internet, Web etc. and the ability to

access the data stored at different locations on the variety hardware of platforms

would make MIS more attractive and efficient proposition. An intelligent user of

information can demonstrate the ability of decision making, since his

manipulative capability is considerably increased, with the information now being

available on his desktop.

Through the MIS, the information can be used as a strategic weapon to counter

the threats

to business, make business more competitive, and bring about the organizational

transformation through integration. A good MIS also makes an organization

seamless by removing all the communication barriers.

Information is the basis for every decision taken in an organization. The efficiency of management depends upon the availability of regular and relevant

information. Thus it is essential that an effective and efficient reporting system be developed as part of accounting system. The main object of management information is to obtain the required about the operating results of an organization regularly in order to use them for future planning and control. The old techniques like intuition, rule of thumb, personal whim and prestige, etc. are now considered useless in the process of decision taking. Modern




management is constantly on look out for such quantitative and such information, which can help in analyzing the proposed alternative actions and choosing one as its decision. Thus, modern management functions are information-oriented more popularly known as “management by information”. And the system through which information is communicated to the management is known as

“management information system (MIS)”. The management needs full information before taking any decision. good decisions can minimize costs and optimize results. Management information system can be helpful to the management in undertaking management decisions smoothly and effectively. Management information system can be analyzed thus: Management: management covers the planning, control, and administration of the operations of a concern. The top management handles planning; the middle

management concentrates on controlling; and the lower management is concerned with actual administration. Information: information, in MIS, means the processed data that helps the management in planning, controlling and operations. Data means all the facts arising out of the operations of the concern. Data is processed i.e. recorded, summarized, compared and finally presented to the management in the form of MIS report.

System: data is processed into information with the help of a system. a system is made up of inputs, processing, output and feedback or control. Thus MIS means a system for processing data in order to give proper information to the management for performing its functions.




CONCEPTUAL VIEW OF MIS

The concept is a blend of principles, theories and practices of management,

information and system giving rise to a single product called MANAGEMENT INFORMATION SYSTEM. The concept of management gives high regard to the individual and his ability to use the information. MIS gives information through data analysis. While analyzing the information, it relies on many academic disciplines like management science, OR, organization behavior, psychology, etc. The foundation of MIS is the principles of management and its practices. MIS

uses the concept of management control in its design and relies heavily on the fact that the decision maker is a human being and is a human processor of information. A MIS can be evolved for a specific objective it is evolved after systematic planning and design. It calls for an analysis of business, management views and policies, organization culture and the management style.




The MIS,therefore relies heavily on systems theory.The systems theory offers solutions to handle complex situations of the input and output flows. it uses theory of communication which helps to evolve a system design capable of handling data inputs, process, the outputs with the least possible noise or

distortion in transmitting the information from a source to destination.




TYPES OF INFORMATION SYSTEM

Information systems differ in their business needs and the information varies depending upon different levels in organization. Information system can be broadly categorized into following:

Transaction processing system Management Information System Decision support system The information needs are different at different organizational levels. Accordingly the information can be categorized into following:

Strategic information Managerial information Operational information.




Transaction Processing Systems It processes business transaction of the organization. Transaction can be any activity of the organization. For example, take a railway reservation system. Booking, canceling, etc are all transactions. Any query made to it is a transaction.

This provides high speed and accurate processing of record keeping of basic operational processes and include calculation, storage and retrieval. Transaction processing systems provide speed and accuracy, and can be programmed to follow routines functions of the organization. Management Information Systems It assist lower management in problem solving and making decisions. They use

the results of transaction processing and some other information also. An important element of MIS is database.A database is a non-redundant collection of interrelated data items that can be processed through application programs and available to many users. Decision Support Systems These systems assist higher management to make long term decisions. These type of systems handle unstructured or semi structured decisions. A decision is considered unstructured if there are no clear procedures for making the decision

and if not all the factors to be considered in the decision can be readily identified in advance. A decision support system must very flexible. The user should be able to produce customized reports by giving particular data and format specific to particular situations.




Types of Management Information Systems A management information system (MIS) is a computer-based system that provides the information necessary to manage an organization effectively. An MIS should be designed to enhance communication among employees, provide

an objective system for recording information and support the organization's strategic goals and direction. There are four types of MIS that will be introduced in ascending order of sophistication. Transaction Processing Systems These systems are designed to handle a large volume of routine, recurring transactions. They were first introduced in the 1960s with the advent of mainframe computers. Transaction processing systems are used widely today. Banks use them to record deposits and payments into accounts. Supermarkets

use them to record sales and track inventory. Most managers use these systems to deal with tasks such as payroll, customer billing and payments to suppliers. Operations Information Systems These systems were introduced after transaction processing systems. An operations information system gathers comprehensive data, organizes it and summarizes it in a form that is useful for managers. Most of these systems access data from a transaction processing system and organize it into a form usable by managers. Managers use operations information systems to obtain

sales, inventory, accounting and other performance-related information. Decision Support Systems (DSS)




A DSS is an interactive computer system that can be used by managers without help from computer specialists. A DSS provides managers with the necessary information to make intelligent decisions. A DSS has three fundamental components:

1. Database management system (DBMS): Stores large amounts of data relevant to problems the DSS has been designed to tackle. 2. Model-based management system (MBMS): Transforms data from the DBMS into information that is useful in decision making. 3. Dialog generation and management system (DGMS): Provides a user-friendly interface between the system and the managers who do not have extensive computer training.

Expert Systems and Artificial Intelligence These systems use human knowledge captured in a computer to solve problems that ordinarily need human expertise. Mimicking human expertise and intelligence requires that the computer (1) recognize, formulate and solve a problem; (2) explain solutions and (3) learn from experience. These systems explain the logic of their advice to the user; hence, in addition to solving problems they can also serve as a teacher. They use flexible thinking processes and can

accommodate new knowledge. Considerations A potential problem with relying on electronic communication and processing of information is the loss of the vital human element. Sometimes because of the complexity of information, an MIS report cannot effectively summarize it. Very




rich information is needed to coordinate and run an enterprise and certain classes of information cannot be quantified. For example, it might be wrong to evaluate an employee's performance solely based on numbers generated by an MIS. Numbers can indicate a performance problem but a face-to-face meeting will be necessary to discuss the nature of the problem.

Components of Management Information System A Typical Management Information System is based on four major components: Data Gathering The process of collecting required data from external and internal sources

• Data Entry The collected data is imputed and stored in the database. Database is the core component used in information processing. • Data Transformation

The data stored in the database is transformed into useful information through the application of computer programs and judgments made by the technical support staff and the end users. • Data Utilization




The data that has been transformed into useful information is retrieved as needed by the management of the firm for managing operations and decision making.

Difference between DSS & MIS MIS functions to produce routine reports,DSS employ sophisticated data modelling & analysis tools for the purpose of resolving structured problems. MIS is used by a limited group (staff managers & professionals), DSS are used by groups,individuals & managers at various levels. DSS is charachterized by an adaptability which contrasted with the semi-inflexible nature of MIS.

DSS data sources are much more varied comprising inventory, accounting & production sources & not just internal business ones & its analytical tools are more sophisticated(simulation,atatistical analysis). Thus, MIS & DSS are differentiated in terms of components, dynamics , analytical tools & general properties. Importance Of MIS In Organizations

In today's scenario MIS plays a pivotal role in Organizations. Organizations worldwide makes extensive use of MIS.Its desgined by the top management of an organization, is a tool to assembling & accumulating facts & figures of all the important business processes. MIS is a very vast topic , its very difficult to cover the whole in one article. Thus here are some of the major importance / advantages of MIS in organizations:




The organization that uses MIS is able to record ,process, route & tabulate all important business transactions. As & when need arises the organization is able to incorporate the needed changes & improvements in the area of concern. MIS facilitates informed DECISION MAKING.It usuallly represents a number of

options from which one can choose the best. The top management ANALYSES whether its resources are being utillized optimally. A TWO WAY COMMUNICATION FLOW is greatly enhanced by the MIS. The management freelytells the jobv responsibilities to its employees.The employees in return discuss their doubts & grievances.

MIS supports the planning & controlling function of managers in the organization.Managers use past/historical data as well as the current data to analyse the performance & hence apply controlling measures. MIS encourages DECENTRALISATION in the organisation.Decentralisationis possible when there's a system to measure operations at the lower levels. It brings COORDINATION.It facilitates integration of specialized activities by keeping each department aware of the problems & requirements of other

departments. Hence, in some way MIS keeps the organization binded. Strategic management Executives develop organizational goals, strategies, policies, and objectives As part of a strategic planning process Tactical management Managers and business professionals in self-directed teams




Develop short- and medium-range plans, schedules and budgets Specify the policies, procedures and business objectives for their subunits Operational management Managers or members of self-directed teams Develop short-range plans such as weekly production schedules

DECISION STRUCTURE • Structured Decisions – situations where the procedures to follow when a decision is needed can be specified in advance • Unstructured Decisions – decision situations where it is not possible to specify in advance most of the decision procedures to follow • Semi structured Decisions - decision procedures that can be prespecified, but not enough to lead to a definite recommended decision

COMPONENTS OF DSS

CLASSIFICATION OF DSS

• Model-driven DSS • Communication-driven DSS • Data-driven DSS • Document-driven DSS • Knowledge-driven DSS




BENEFITS OF DSS Improves personal efficiency Accelerate problem solving Facilitates interpersonal communication Promotes learning or training

Increases organizational control Generates new evidence in support of a decision Creates a competitive advantage over competition Reveals new approaches to thinking about the problem space




REVIEV QUESTIONS

1) What is the scope of information system and Management Information

system?

2) Give three reasons for using computer for MIS in the organization?

3) Designing an MIS for an organization?

4) Can you think of an MIS which could be user independent and business

dependent?

5) State the difference between MIS and a computer system.

6) Take an organization of your knowledge and give a conceptual view of

MIS and physical view of MIS.

7) State which capabilities of a computer are used in MIS to create an impact.

8) Identify the nature of impact of MIS on people, organization and the

management style.

9) If application science and MIS can be brought together, the MIS design

would be realistic and useful. Discuss.

10)Why is MIS looked upon as a strategic need of management today?

11) applies and explains an understanding of the nature and function of

information technologies to a specific practical situation.

12) develops and explains solutions for an identified need which address all the

information processes.




Planning & Control :

In general, a successful organization depends on proper organizational planning. In a setting where there are continual constraints on resources, both human and financial, good planning enables an organization to make the most out of the resources at hand. Planning usually involves groups and organizational processes internal or external to the organization. They can include employees, management, stockholders, other outside stakeholders, the physical environment, the political and legal environment, the competitive environment, and the technological environment. The Planning Process Planning is the process used by managers to identify and select goals and courses of action for the organization. � The organizational plan that results from the planning process details the goals to

be attained. � The pattern of decisions managers take to reach these goals is the organization’s

strategy. Planning is the first step in building MIS in an organization Three Stages of the Planning Process

1. Determining the Organization’s mission and goals (Define the business)

2. Strategy formulation (Analyze current situation & develop strategies)

3. Strategy Implementation (Allocate resources & responsibilities to achieve strategies)

Planning Levels

� Corporate-level: decisions by top managers. � Considers on which businesses or markets to be in. � Provides a framework for all other planning. � Business-level: details divisional long-term goals and structure. � Identifies how this business meets corporate goals. � Shows how the business will compete in market. � Functional-level: actions taken by managers in departments of

manufacturing, marketing, etc.




� These plans state exactly how business-level strategies are accomplished.

Planning Process

6-steps to Building a Personal Financial Plan These 6-steps are designed to help you get started on the road to financial security. By following the six steps, your journey will take you from where you are now to where you want to be for the future. Setting goals and objectives is the first step of any financial planning process - if you do not know where you are going, how can you know when you'll get there, or even decide which route to take? Setting goals and objectives is the foundation of any sound financial plan. No matter where you are heading, you need to assess where you are now, and what you already have in place for the journey. Data gathering will ensure that your personal documents are up-to-date and that you know your current financial situation. Heading in a general direction won't guarantee success in reaching your final destination. Before heading out on your journey, do your analysis and find solutions. This strategy will assist you in reaching your stated goals and will provide you with a roadmap to help you achieve these goals. Your financial plan should confirm that your goals are achievable and appropriate recommendations will help define what you need to do to ensure that you reach these goals. A financial plan is only helpful if the recommendations are put into action. Implementing strategies will assure you reach your destination. Finally, follow-up and annual reviews are critical to ensuring you maintain a clear focus in order to succeed. 1. Setting Goals and Objectives Give some thought to your financial goals. Some may be short-term in nature, others long-term. Assign each one a time frame and put them in order of importance to you. These goals are the building blocks to any sound financial plan. Our financial advisors can assist you in identifying goals and establishing time frames. 2. Data Gathering




One should always have their finger on the pulse of where they stand financially. However, it’s understandable that some matters get pushed to the back burner. Now is the time to gather all of your financial documents and ensure all information is current. 3. Analysis and Solutions Depending on the goals that you established in Step 1, you will need to perform some further analysis to define a roadmap to help you achieve your goals. This may include analyzing your retirement, education, debt or insurance needs. For most Canadians, Retirement Planning is a major goal that requires considerable financial commitment. At Deverall, Calma & Associates, we can show you where you are today and how much you need to save to meet your retirement goals. With the costs of a typical four-year Canadian university undergraduate degree program currently estimated to be about $40,000 including room and board, and that figure rising, most parents consider Education Planning an important long-term financial goal, and a regular investment plan is an important part of this strategy. Our RESP (Registered Education Savings Plan) is designed to assist you with saving money today in order to meet future education costs. While you may not wish to drastically alter your lifestyle, a budget is important for planning purposes and to determine the availability of funds to set aside for savings. Debt Management is the ability to handle your current debt and whether one can assume further debt. Since most of us incur debt at some point in our lives, effective debt management is critical to a sound financial plan. Debt reduction often ranks as a primary financial goal, especially if it includes paying down a mortgage. The first step is to determine how much you currently owe. Life can be unpredictable. Whatever your age and personal situation, make sure you have a plan in place to provide for your survivors. Any goal, regardless of the amount, can best be served by applying a systematic approach to savings. Consider investing regular amounts to your plan during the year as opposed to attempting to come up with large amounts when it is required. Not only do you avoid the rush and pressure, but you take advantage of dollar-cost averaging. Deverall, Calma & Associates financial advisors will show you how to implement this important strategy for any of your goals. 4. Recommendations Now that you have established goals and objectives, you will want to begin by implementing the recommendations that will ensure that you reach these goals. 5. Implementation




Once the preparatory work of analyzing, determining and calculating is finished, the most important step is implementing the recommendations to ensure your goals are reached. Deverall, Calma & Associates Financial Services Inc. is designed to assist you in establishing a well-diversified portfolio that will help you meet your goals by spreading risk, reducing volatility and enhancing the potential for solid long-term returns. No matter what the goal, a well-balanced portfolio, based on your individual investor profile is a requirement of any financial plan. 6. Follow-up and Periodic Reviews Finally, follow-up's and annual reviews by both yourself and your financial planner are critical to ensuring your success. Your financial situation should be reassessed at least once a year to account for any changes in your life cycle or economic conditions. Achieving your goals and objectives are the ultimate measure of success in the 6-steps to a personal financial plan.

Types of planning

1. OPERATIONAL PLANNING 2. INTERMEDIATE PLANNING 3. CONTINGENCY PLANNING 4. STRATEGIC PLANNING

What is OPERATIONAL planning? short-range planning that deals with day-to-day maintenance activities performed at a unit or departmental level done as part of the overall strategic planning Ex1: Unit Director plans a meeting of staff nurses to reinforce knowledge gained from orientation of new staff… may get endorsement from the Division Chief Nurse who has set her own staff development plan for the whole division. Ex2: Unit Director reviews with staff medicine supplies STEPS IN OPERATIONAL PLANNING 1.Set your objectives 2.Set your priorities 3.State your assumptions 4.Review any and all limitations 5.Develop your primary and back-up plans 6.Implement the plan 7.Set up a control system and follow up on progress and results




APPLICATION OF THE PLANNING STEPS CASE: AS NURSE MANAGER OF THE UNIT, YOU HAVE JUST BEEN INFORMED THAT THE EMERGENCY ROOM IS BUSY WITH ADMISSIONS. YOUR UNIT HAS TWO ROOMS READY FOR NEW ADMISSIONS. BUT YOU FIND YOURSELF ASKING,WHAT IF THERE WOULD BE MORE THAN TWO? 2. INTERMEDIATE PLANNING

What is INTERMEDIATE planning? a planning that is usually done in the middle of the fiscal year process: mid-year appraisal followed by affirming ongoing plans and setting forth new plans for the rest of the year often covers issues about performance, resources, and staff development EXAMPLE OF MID-YEAR PLANNING & INTERVENTION IN A MID-YEAR EVALUATION MEETING, TEAM A REPORTS A WEAKNESS IN THE ORIENTATION PROGRAM GIVEN TO NEW SUPERVISING CLINICAL INSTRUCTOS FOR THE FIRST SEMESTER. INPUTS ABOUT THE ONCOLOGY AND INTENSIVE CARE UNITS WERE RATED POORLY. IN PREPARATION FOR THE 2ND SEMESTER ORIENTATION PROGRAM, IT WAS PLANNED TO GET A NEW TEAM MEMBER WHO HAS THE EXPERTISE OF THE TWO UNITS. 3. CONTINGENCY PLANNING What is CONTINGENCY planning? managing the problems that interfere with getting work done could be reactive or proactive Ex: 2 nurses for an 8-hour night shift in the emergency room called in sick…What contingency plans would you do? 4. STRATEGIC PLANNING What is STRATEGIC planning? is defining and prioritizing long-term plans that includes examining an organization’s purpose, mission, philosophy and goals in the light of its external environment it is proactive and future-oriented, focuses on a 3-5 year operation of the organization it generally aims at creating an image of the desired future and design ways to make plans a reality. Scope of strategic planning • External assessment >opportunities and threats • Internal assessment >strengths and weaknesses




• Priority issues and programs • Vision, mission, values, philosophy • Goals:

strategic – organization operational – division, unit

• Objectives • Strategies

timelines plans

• Policies and procedures • Implementation • Evaluation

production/operations finance marketing

STEPS IN STRATEGIC PLANNING

1. Analyze the organization’s internal and external environment (SWOT analysis) 2. Conduct a stakeholder assessment 3. Define the purpose of the organization 4. Clarify values important to the organization 5. Set the goals and objectives 6. Communicate the goals and objectives to the constituents 7. Identify strategies – set time lines and tasks 8. Estimate and allocate resources 9. Develop and communicate a marketing or business plan 10. Establish a system for the implementation and monitoring of policies, procedures,

and rules 11. Establish a system for exchanging information and building consensus 12. Provide a mechanism for evaluation

The process of controlling: The process of analyzing current performance and comparing them against predefined standards contained in plan and taking appropriate corrective actions against the identified deviation in the result.

Controlling is one of the managerial functions like planning, organizing, staffing and directing. It is an important function because it helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in a desired manner.




According to modern concepts, control is a foreseeing action whereas earlier concept of control was used only when errors were detected. Control in management means setting standards, measuring actual performance and taking corrective action.

Characteristics • Control is a continuous process

• Control is a management process

• Control is embedded in each level of organizational hierarchy

• Control is forward looking

• Control is closely linked with planning

• Control is a tool for achieving organizational activities

• Control is an end process

• Control compares actual performance with planned performance*

control point out the error in the execution process

cotrol helps in minimising cost

control helps in acheiveing standard

control saves the time

Types of Controls Areas of Control Physical resources —inventory management, quality control, and equipment control. Human resources—selection and placement, training and development, performance appraisal, and compensation. Information resources—sales and marketing forecasts, environmental analysis, public relations, production scheduling, and economic forecasting. Financial resources—managing capital funds and cash flow, collection and payment of debts.




What is “E-Commerce”? There are many different definitions and understanding about E-Commerce. According to Frederick J. Riggins and Hyeun-Suk Rhee, a recent pilot survey shows that some practitioners and managers view E-Commerce --> buying and selling goods and products over internet. However, researchers believe the E-Commerce practice should include a wide variety of presale and post-sale activities.Applegate et al. identify three classes of e-commerce applications: - Customer-to-business - Business-to business - Intraorganzational By Internet commerce, we mean the use of the global Internet for purchase and sale of goods, services, including service and support after sale. Internet commerce brings some new technology and new capabilities to business, but the fundamental business problems are those that merchants have faced for hundred - even thousands - of years: you must have something to sell, make it known to potential buyers,accept payment deliver the goods or services, and provide appropriate service after the sale. Extranet An extranet is a private network that uses Internet technology and the public telecommunication system to securely share part of a business's information or operations with suppliers, vendors, partners, customers, or other businesses. An extranet can be viewed as part of a company's intranet that is extended to users outside the company. It has also been described as a "state of mind" in which the Internet is perceived as a way to do business with other companies as well as to sell products to customers.

An extranet requires security and privacy. These can include firewall server management, the issuance and use of digital certificates or similar means of user authentication, encryption of messages, and the use of virtual private networks (VPNs) that tunnel through the public network.

Companies can use an extranet to: • Exchange large volumes of data using Electronic Data Interchange (EDI) • Share product catalogs exclusively with wholesalers or those "in the trade" • Collaborate with other companies on joint development efforts • Jointly develop and use training programs with other companies




• Provide or access services provided by one company to a group of other companies, such as an online banking application managed by one company on behalf of affiliated banks

• Share news of common interest exclusively with partner companies ERP is short for enterprise resource planning. Enterprise resource planning (ERP) is business process management software that allows an organization to use a system of integrated applications to manage the business and automate back office functions. ERP software integrates all facets of an operation, including product planning, development, manufacturing processes, sales and marketing.

ERP Software Modules ERP software typically consists of multiple enterprise software modules that are individually purchased, based on what best meets the specific needs and technical capabilities of the organization. Each ERP module is focused on one area of business processes, such as product development or marketing. A business scan use ERP software to manage back-office activities and tasks including the following: Distribution process management, supply chain management, services knowledge base, configure, prices, improve accuracy of financial data, facilitate better project planning, automate employee life-cycle, standardize critical business procedures, reduce redundant tasks, assess business needs, accounting and financial applications, lower purchasing costs, manage human resources and payroll. Some of the most common ERP modules include those for product planning, material purchasing, inventory control, distribution, accounting, marketing, finance and HR. As the ERP methodology has become more popular, software applications have emerged to help business managers implement ERP into other business activities and may also incorporate modules for CRM and business intelligence and present them as a single unified package. The basic goal is to provide one central repository for all information that is shared by all the various ERP facets in order to smooth the flow of data across the organization.




Top ERP Trends The ERP field can be slow to change, but the last couple of years have unleashed forces which are fundamentally shifting the entire area. According to Enterprise Apps Today, the following new and continuing trends affect enterprise ERP software: 1. Mobile ERP Mobility continues to be a big trend. Executives and employees want real-time access to information, regardless of where they are. It is expected that businesses will quickly embrace mobile ERP, not just for reports and dashboards, but for conducting key business processes. 2. Cloud ERP The cloud has been advancing steadily into the enterprise for some time, but many ERP users have been reluctant to place data cloud. Those reservations have gradually been evaporating, however, as the advantages of the cloud become apparent. 3. Social ERP There has been much hype around social media and how important – or not -- it is to add to ERP systems. Certainly, vendors have been quick to seize the initiative, adding social media packages to their ERP systems with much fanfare. But some wonder if there is really much gain to be had by integrating social media with ERP. 4. Two-tier ERP Enterprises once attempted to build an all-encompassing ERP system to take care of every aspect of organizational systems. But some expensive failures have gradually brought about a change in strategy – adopting two tiers of ERP. Data Data is distinct pieces of information, usually formatted in a special way. All software is divided into two general categories: data and programs. Programs are collections of instructions for manipulating data. Data can exist in a variety of forms -- as numbers




or text on pieces of paper, as bits and bytes stored in electronic memory, or as facts stored in a person's mind. Strictly speaking, data is the plural of datum, a single piece of information. In practice, however, people use data as both the singular and plural form of the word. Database Management System, its advantages,

DBMS A database management system is the software system that allows users to define, create and maintain a database and provides controlled access to the data.

A Database Management System (DBMS) is basically a collection of programs that enables users to store, modify, and extract information from a database as per the requirements. DBMS is an intermediate layer between programs and the data. Programs access the DBMS, which then accesses the data. There are different types of DBMS ranging from small systems that run on personal computers to huge systems that run on mainframes. The following are main examples of database applications:

• Computerized library systems

• Automated teller machines

• Flight reservation systems

• Computerized parts inventory systems

A database management system is a piece of software that provides services for accessing a database, while maintaining all the required features of the data. Commercially available Database management systems in the market are dbase, FoxPro, IMS and Oracle, MySQL, SQL Servers and DB2 etc.

These systems allow users to create update, and extract information from their databases.

Compared to a manual filing system, the biggest advantages to a computerized database system are speed, accuracy, and' accessibility.

Advantages of DBMS




The database management system has promising potential advantages, which are explained below:

1. Controlling Redundancy: In file system, each application has its own private files, which cannot be shared between multiple applications. 1:his can often lead to considerable redundancy in the stored data, which results in wastage of storage space. By having centralized database most of this can be avoided. It is not possible that all redundancy should be eliminated. Sometimes there are sound business and technical reasons for· maintaining multiple copies of the same data. In a database system, however this redundancy can be controlled.

For example: In case of college database, there may be the number of applications like General Office, Library, Account Office, Hostel etc. Each of these applications may maintain the following information into own private file applications:

It is clear from the above file systems, that there is some common data of the student which has to be mentioned in each application, like Rollno, Name, Class, Phone_No~ Address etc. This will cause the problem of redundancy which results in wastage of storage space and difficult to maintain, but in case of centralized database, data can be shared by number of applications and the whole college can maintain its computerized data with the following database:




It is clear in the above database that Rollno, Name, Class, Father_Name, Address, Phone_No, Date_of_birth which are stored repeatedly in file system in each application, need not be stored repeatedly in case of database, because every other application can access this information by joining of relations on the basis of common column i.e. Rollno. Suppose any user of Library system need the Name, Address of any particular student and by joining of Library and General Office relations on the basis of column Rollno he/she can easily retrieve this information.

Thus, we can say that centralized system of DBMS reduces the redundancy of data to great extent but cannot eliminate the redundancy because RollNo is still repeated in all the relations. 2. Integrity can be enforced: Integrity of data means that data in database is always accurate, such that incorrect information cannot be stored in database. In order to maintain the integrity of data, some integrity constraints are enforced on the database. A DBMS should provide capabilities for defining and enforcing the constraints. For Example: Let us consider the case of college database and suppose that college having only BTech, MTech, MSc, BCA, BBA and BCOM classes. But if a \.,ser enters the class MCA, then this incorrect information must not be stored in database and must be prompted that this is an invalid data entry. In order to enforce this, the integrity constraint must be applied to the class attribute of the student entity. But, in case of file system tins constraint must be enforced on all the application separately (because all applications have a class field). In case of DBMS, this integrity constraint is applied only once on the class field of the




General Office (because class field appears only once in the whole database), and all other applications will get the class information about the student from the General Office table so the integrity constraint is applied to the whole database. So, we can conclude that integrity constraint can be easily enforced in centralized DBMS system as compared to file system. 3. Inconsistency can be avoided : When the same data is duplicated and changes are made at one site, which is not propagated to the other site, it gives rise to inconsistency and the two entries regarding the same data will not agree. At such times the data is said to be inconsistent. So, if the redundancy is removed chances of having inconsistent data is also removed. Let us again, consider the college system and suppose that in case of General_Office file it is indicated that Roll_Number 5 lives in Amritsar but in library file it is indicated that Roll_Number 5 lives in Jalandhar. Then, this is a state at which tIle two entries of the same object do not agree with each other (that is one is updated and other is not). At such time the database is said to be inconsistent. An inconsistent database is capable of supplying incorrect or conflicting information. So there should be no inconsistency in database. It can be clearly shown that inconsistency can be avoided in centralized system very well as compared to file system .. Let us consider again, the example of college system and suppose that RollNo 5 is .shifted from Amritsar to Jalandhar, then address information of Roll Number 5 must be updated, whenever Roll number and address occurs in the system. In case of file system, the information must be updated separately in each application, but if we make updation only at three places and forget to make updation at fourth application, then the whole system show the inconsistent results about Roll Number 5. In case of DBMS, Roll number and address occurs together only single time in General_Office table. So, it needs single updation and then an other application retrieve the address information from General_Office which is updated so, all application will get the current and latest information by providing single update operation and this single update operation is propagated to the whole database or all other application automatically, this property is called as Propagation of Update. We can say the redundancy of data greatly affect the consistency of data. If redundancy is less, it is easy to implement consistency of data. Thus, DBMS system can avoid inconsistency to great extent. 4. Data can be shared: As explained earlier, the data about Name, Class, Father __name etc. of General_Office is shared by multiple applications in centralized DBMS as compared to file system so now applications can be developed to operate against the same stored data. The applications may be developed without having to create any new stored files.




5. Standards can be enforced : Since DBMS is a central system, so standard can be enforced easily may be at Company level, Department level, National level or International level. The standardized data is very helpful during migration or interchanging of data. The file system is an independent system so standard cannot be easily enforced on multiple independent applications. 6. Restricting unauthorized access: When multiple users share a database, it is likely that some users will not be authorized to access all information in the database. For example, account office data is often considered confidential, and hence only authorized persons are allowed to access such data. In addition, some users may be permitted only to retrieve data, whereas other are allowed both to retrieve and to update. Hence, the type of access operation retrieval or update must also be controlled. Typically, users or user groups are given account numbers protected by passwords, which they can use to gain access to the database. A DBMS should provide a security and authorization subsystem, which the DBA uses to create accounts and to specify account restrictions. The DBMS should then enforce these restrictions automatically. 7. Solving Enterprise Requirement than Individual Requirement: Since many types of users with varying level of technical knowledge use a database, a DBMS should provide a variety of user interface. The overall requirements of the enterprise are more important than the individual user requirements. So, the DBA can structure the database system to provide an overall service that is "best for the enterprise". For example: A representation can be chosen for the data in storage that gives fast access for the most important application at the cost of poor performance in some other application. But, the file system favors the individual requirements than the enterprise requirements 8. Providing Backup and Recovery: A DBMS must provide facilities for recovering from hardware or software failures. The backup and recovery subsystem of the DBMS is responsible for recovery. For example, if the computer system fails in the middle of a complex update program, the recovery subsystem is responsible for making sure that the .database is restored to the state it was in before the program started executing. 9. Cost of developing and maintaining system is lower: It is much easier to respond to unanticipated requests when data is centralized in a database than when it is stored in a conventional file system. Although the initial cost of setting up of a database can be large, but the cost of developing and maintaining application programs to be far lower than for similar service using conventional systems. The productivity of programmers can be higher in using non-procedural languages that have been developed with DBMS than using procedural languages. 10. Data Model can be developed : The centralized system is able to represent the complex data and interfile relationships, which results better data modeling properties. The data madding properties of relational model is based on Entity and their Relationship, which is discussed in detail in chapter 4 of the book.




11. Concurrency Control : DBMS systems provide mechanisms to provide concurrent access of data to multiple users. Concept of Data Warehousing and architecture, The business analyst get the information from the data warehouses to measure the performance and make critical adjustments in order to win over other business holders in the market. Having data warehouse has the following advantages for the business. Since the data warehouse can gather the information quickly and efficiently therefore it can enhance the business productivity. The data warehouse provides us the consistent view of customers and items hence help us to manage the customer relationship. The data warehouse also helps in bringing cost reduction by tracking trends, patterns over a long period in a consistent and reliable manner. To design an effective and efficient data warehouse we are required to understand and analyze the business needs and construct a business analysis framework. Each person has different views regarding the design of a data warehouse. These views are as follows: The top-down view - This view allows the selection of relevant information needed for data warehouse. The data source view - This view presents the information being captured, stored, and managed by operational system. The data warehouse view - This view includes the fact tables and dimension tables.This represent the information stored inside the data warehouse. The Business Query view - It is the view of the data from the viewpoint of the end user. Three-Tier Data Warehouse Architecture Generally the data warehouses adopt the three-tier architecture. Following are the three tiers of data warehouse architecture. Bottom Tier - The bottom tier of the architecture is the data warehouse database server.It is the relational database system.We use the back end tools and utilities to feed data into bottom tier.these back end tools and utilities performs the Extract, Clean, Load, and refresh functions.




Middle Tier - In the middle tier we have OLAp Server. the OLAP Server can be implemented in either of the following ways.

• By relational OLAP (ROLAP), which is an extended relational database management system. The ROLAP maps the operations on multidimensional data to standard relational operations.

• By Multidimensional OLAP (MOLAP) model, which directly implements multidimensional data and operations.

Top-Tier - This tier is the front-end client layer. This layer hold the query tools and reporting tool, analysis tools and data mining tools. Supply Chain Management, The supply chain starts with firms extracting raw materials from the ground –such as iron, oil, wood, and food- and then selling them to raw material manufactures. These companies, acting on purchase orders and specifications they have received from component manufacturers, turn the raw materials into materials that are usable by these customers. Now what is supply chain management? SCM is management of material and information flow in a supply chain to provide the highest degree of customer satisfaction at the lowest possible cost. Importance of SCM Many firms, thought, have discovered value, long term benefits from their supply chain management efforts. Firms with large system inventories, many suppliers, complex product assemblies, and highly valued customers with large purchasing budgets have the most to gain from the practice of supply chain management. For these firms, even moderate supply chain management success can mean lower purchasing and inventory costs, better product quality, and higher levels of customer service and sales. Purchasing inventory, and transportation cost saving is quite sizable for firms utilizing supply chain management strategies. Firms must realize that their management efforts can start small –for instance, with just one key supplierand build through time to include more supply chain participants- such as other important suppliers, key customers, and shippers- and, eventually, second-tier suppliers and customers. So why is this integration activity important? As alluded to earlier, when a firm, its customers, and its suppliers all know each others’ future plans, the planning process is easier and more accurate. Useful model of supply chain operations In this useful model identifies four categories of operations. We will use the following four categories to organize and discuss supply chain operations, plan, source, make, deliver.




Plan: This refers to all the operations needed to plan and organize the operations in the other three categories. Source: Operations in this category include the activities necessary to acquire the inputs to create products or services. These operations are procurement and credit& collection. Make: This category includes the operations required to develop and build the products and services that a supply chain provides. Deliver: These operations encompass the activities that are part of receiving customer orders and delivering products to customers.

Customer relationship management (CRM) is a multifaceted process, mediated by a set of information technologies, that focuses on creating two-way exchanges with customers so that firms have an intimate knowledge of their needs, wants, and buying patterns. In this way, CRM helps companies understand, as well as anticipate, the needs of current and potential customers. Functions that support this business purpose include sales, marketing, customer service, training, professional development, performance management, human resource development, and compensation. Many CRM initiatives have failed because implementation was limited to software installation without alignment to a customer-centric strategy.

There are many aspects of CRM which were mistakenly thought to be capable of being implemented in isolation from each other.

From the outside of the organization, a customer experiences the business as one entity operating over extended periods of time. Thus piecemeal CRM implementation can come across to the customer as unsynchronized where employees and web sites and services are acting independently of one another, yet together represent a common entity.

CRM is the philosophy, policy and coordinating strategy connecting different players within an organization so as to coordinate their efforts in creating an overall valuable series of experiences, products and services for the customer.

The different players within the organization are in identifiable groups:

• Customer Facing Operations - The people and the technology support of processes that affect a customer's experience at the frontline interface between the customer and the organization. This can include face to face, phone, IM, chat, email, web and combinations of all media. Self-service kiosk and web self-service are doing the job of vocals and they belong here.




• Internal Collaborative Functional Operations - The people and technology support of processes at the policy and back office which ultimately affect the activities of the Customer Facing Operations concerning the building and maintaining of customer relationships. This can include IT, billing, invoicing, maintenance, planning, marketing, advertising, finance, services planning and manufacturing.

• External Collaboration functions - The people and technology support of processes supporting an organization and its cultivation of customer relationships that are affected by the organization's own relationship with suppliers/vendors and retail outlets/distributors. Some would also include industry cooperative networks, e.g. lobbying groups, trade associations. This is the external network foundation which supports the internal Operations and Customer facing Operations.

• Customer Advocates and Experience Designers - Creative designers of customer experience that meet customer relationship goals of delivering value to the customer and profit to the organization (or desired outcomes and achievement of goals for non-profit and government organizations)

• Performance Managers and Marketing Analysts - Designers of Key Performance Indicators and collectors of metrics and data so as to execute/implement marketing campaigns, call campaigns, Web strategy and keep the customer relationship activities on track. This would be the milestones and data that allow activities to be coordinated, that determine if the CRM strategy is working in delivering ultimate outcomes of CRM activities: market share, numbers and types of customers, revenue, profitability, intellectual property concerning customers preferences.

• Customer and Employee Surveyors and Analysts - Customer Relationships are both fact driven and impression driven - the quality of an interaction is as important as the information and outcome achieved, in determining whether the relationship is growing or shrinking in value to the participants.

Procurement Management In order to understand procurement documents, it is important to understand the term Procurement Management.

Procurement is the purchase of goods and services at the best possible price to meet a purchaser's demand in terms of quantity, quality, dimensions and site.

The procurement cycle in businesses work, which follows the below steps:




Information Gathering: A potential customer first researches suppliers, who satisfy requirements for the product needed. Supplier Contact: When a prospective supplier has been identified, the customer requests for quotations, proposals, information and tender. This may be done through advertisements or through direct contact with the supplier. Background Review: The customer now examines references for the goods/services concerned and may also consider samples of the goods/services or undertake trials. Negotiation: Next the negotiations regarding price, availability and customization options are undertaken. The contract regarding the purchase of the goods or services is completed. Fulfilment: Based on the contract signed, the purchased goods or services are shipped and delivered. Payment is also completed at this stage. Additional training or installation of the product may also be provided. Renewal: Once the goods or services are consumed or disposed of and the contract has expired, the product or service needs to be re-ordered. The customer now decides whether to continue with the same supplier or look for a new one. Documents involved in the procurement cycle are called procurement documents. Procurement documents are an integral part of the early stages of project initiation. The purpose of procurement documents serves an important aspect of the organizational element in the project process. It refers to the input and output mechanisms and tools that are put in place during the process of bidding and submitting project proposals and the facets of work that make up a project. In a nutshell, procurement documents are the contractual relationship between the customer and the supplier of goods or services. Examples of Procurement Documents: Some examples of what constitutes procurement documents include the buyer's commencement to bid and the summons by the financially responsible party for concessions.




In addition, requests for information between two parties and requests for quotations, and proposals and seller's response are also parts of procurement documents. Basically procurement documents comprise of all documents that serve as invitations to tender, solicit tender offers and establish the terms and conditions of a contract. Types of Procurement Documents A few types of procurement documents are: RFP: A request for proposal is an early stage in a procurement process issuing an invitation for suppliers, often through a bidding process, to submit a proposal on a specific commodity or service. RFI: A request for information (RFI) is a proposal requested from a potential seller or a service provider to determine what products and services are potentially available in the marketplace to meet a buyer's needs and to know the capability of a seller in terms of offerings and strengths of the seller. RFQ: A request for quotation (RFQ) is used when discussions with bidders are not required (mainly when the specifications of a product or service are already known) and when price is the main or only factor in selecting the successful bidder. Solicitations: These are invitations of bids, requests for quotations and proposals. These may serve as a binding contract. Offers: This type of procurement documents are bids, proposals and quotes made by potential suppliers to prospective clients. Contracts: Contracts refer to the final signed agreements between clients and suppliers. Amendments/Modifications: This refers to any changes in solicitations, offers and contracts. Amendments/Modifications have to be in the form of a written document.

Management Information System

Documents

system concept

concept of da

concept of exception

initial concept of mis

analysis of data

processed data

management information

mass of data