MIS and Digital Firms

Management Information Systems

MIS and Digital Firms

Management Information SystemsMIS and Levels of Information Systems

Abstract

Management Information System (MIS) provides information for the managerial activities in an organization.

MIS provides accurate and timely information necessary to facilitate the decision-making process and enable the organizations planning, control, and operational functions to be carried out effectively.

Management Information System (MIS) is basically concerned with processing data into information and is then communicated to the various Departments in an organization for appropriate decision-making.

MIS is a subset of the overall planning and control activities covering the application of humans, technologies, and procedures of the organization.

The information system is the mechanism to ensure that information is available to the managers in the form they want it and when they need it.

Enterprise Resource Planning

(ERP)

• Enterprise wide system to manage all resources, activities, etc.

Information Systems (IS)

• Application of people, documents, technologies and procedures.

Management Information

Systems (MIS)

• Information Management methods for automation of human activities.

Data Floods

MIS Process

Information Flows User’s Process

Decision

MIS and Decision Making Process

Functions of MIS:

• It should provide a basis to analyze warning signals that can originate both externally and internally; this is the main function of data base;

• It should automate routine operations thus avoiding human work in the processing tasks;

• It should assist management in making routine decisions;

• It should provide the information necessary to make non-routine decisions;

• It should serve as a strategic weapon to gain competitive advantages.

Information Systems

An information system may be defined as a set of devices, procedures and execution plan designed around user-based criteria to produce information and communicate it to the user for planning, control and performance.

Computer Based information Systems depends mainly on the computer for handling business applications. They are classified as:

Transaction Processing Systems (TPS)

Management Information System (MIS)

Decision Support System (DSS)

Office Automation System (OAS)

Types of Information Systems

Operational-level Systems

Knowledge-level Systems

Management-level Systems

Strategic-level Systems

Operational Level Systems

Support operational managers by keeping track of the elementary activities and transactions of the organization.

The principle purpose of systems at this level is to answer routine questions and track the flow of transactions through the organization.

Covers things such as sales, receipts, cash deposits, payroll, credit decisions, flow of materials.

Transaction-Processing Systems (TPS) Basic business systems

Perform daily routine transactions necessary for business functions

At the operational level, tasks, resources and goals are predefined and highly structured

Sales/ Marketing Systems

Manufacturing Systems

Finance/Accounting

Systems

Human Resources Systems

Other Types

Types of TPS

Knowledge Level Systems

Support knowledge and data workers in an organization.

The purpose of these systems is to help the organization discover, organize and integrate new and existing knowledge into the business, and to help control the flow of paperwork.

These systems, specially in the form of collaboration tools, workstations, and office systems, are the fastest growing applications in business today.

Office Automation Systems (OAS)

Knowledge Work Systems (KWS)

Knowledge Level Systems

Office Automation Systems (OAS) Targeted at meeting the knowledge needs of data workers within the organization

Data workers tend to process rather than create information. Primarily involved in information use, manipulation or dissemination.

Typical OAS handle and manage documents, scheduling and communication.

Knowledge Work Systems (KWS) Targeted at meeting the knowledge needs of knowledge workers within the

organization

In general, knowledge workers hold degree-level professional qualifications (e.g. engineers, scientists, lawyers), their jobs consist primarily in creating new information and knowledge

KWS, such as scientific or engineering design workstations, promote the creation of new knowledge, and its dissemination and integration throughout the organization.

Management Level Systems

Management Information Systems (MIS) MIS provide managers with reports and, in some cases, on-line access to the organization’s

current performance and historical records

Typically these systems focus entirely on internal events, providing the information for short-term planning and decision making.

MIS summarise and report on the basic operations of the organisation, dependent on the underlying TPS for their data.

Decision-Support Systems (DSS) As MIS, these serve the needs of the management level of the organization

Focus on helping managers make decisions that are semi-structured, unique, or rapidly changing, and not easily specified in advance

Use internal information from TPS and MIS, but also information from external sources

Greater analytical power than other systems, incorporate modelling tools, aggregation and analysis tools, and support what-if scenarios

PC

Analytical Model

Database

Ship Details File

Port, Fuel Costs

Graphics Reports

Voyage Estimating DSS

Strategic Level Systems

Executive Support/Information Systems (ESS/EIS) Serve the strategic level of the organization

ESS/EIS address unstructured decisions and create a generalized computing and communications environment, rather than providing any fixed application or specific capability.

Such systems are not designed to solve specific problems, but to tackle a changing array of problems

ESS/EIS are designed to incorporate data about external events, such as new tax laws or competitors, and also draw summarised information from internal MIS and DSS

These systems filter, compress, and track critical data, emphasising the reduction of time and effort required to obtain information useful to executive management

ESS/EIS employ advanced graphics software to provide highly visual and easy-to-use representations of complex information and current trends, but they tend not to provide analytical models

Internal Data

TPS/MIS Data, Office Systems

Financial Data, Modelling/Analys

is

External Data

Dow and Jones, Gallup Poll

Standard and Poor’s

ESS Workstation

ESS Workstation

ESS Workstation

• Menus• Graphics• Communications• Local Processing

• Menus• Graphics• Communications• Local Processing

• Menus• Graphics• Communications• Local Processing

ESS

MIS

KWS and OAS

DSS

TPS

Inter Relationships and Inter Dependencies

Digital FirmsDigital Firms and Applications used in Digital Firms

Digital Firms

The Digital Firm is a general term for organizations that have enabled core business relationships with employees, customers, suppliers, and other external partners through digital networks.

These digital networks are supported by enterprise class technology platforms that have been leveraged within an organization to support critical business functions and services.

Some examples of these technology platforms are, Customer Relationship Management (CRM), Supply Chain Management (SCM), Enterprise Resource Planning (ERP), Knowledge Management System (KMS),Enterprise Content Management (ECM), and Warehouse Management System (WMS) among others.

The purpose of these technology platforms is to digitally enable seamless integration and information exchange within the organization to employees and outside the organization to customers, suppliers, and other business partners.

Origin of "The Digital Firm"

The term "The Digital Firm" originated as a concept in a series of Management Information Systems (MIS) books authored by Ken Laudon and it provides a new way to describe organizations that operate differently than the traditional brick and mortar business as a result of broad sweeping changes in technology and global markets.

Digital firms place an emphasis on the digitization of business processes and services through sophisticated technology and information systems.

These information systems create opportunities for digital firms to decentralize operations, accelerate market readiness and responsiveness, enhance customer interactions, as well as increase efficiencies across a variety of business functions.

Advantages

Through digital networks and information systems, the digital firm is able to operate core business services and functions continuously and more efficiently. This digital enablement of business processes creates highly dynamic information systems allowing for more efficient and productive management of an organization.

Additionally, digital enablement of core business functions and services provides an organization with opportunities to:

Operate business continuously ("Time Shifting")

Operate business in a global workplace ("Space Shifting") 

Adapt business strategies to meet market demands 

Create business value from technology investments 

Drive efficiency improvements in inventory and supply chain 

Enhance the management of customer relationships 

Improve organizational productivity 

The ORACLE E-Business Suite

JAVA .NET, HTML and XML Profiles

Oracle Forms Server

Oracle Reports Server

Apache Web Server

Oracle Discoverer

Sun Microsystem’s Java

Jinitiator

Mobile Computing

Wireless Application Protocol (WAP):

System of protocols and technologies that lets cell phones and other wireless devices with tiny displays, low-bandwidth connections, and minimal memory access Web-based information and services

I-mode:

Standard developed by Japan’s NTT DoCoMo mobile phone network for enabling cell phones to receive Web-based content and services

Communication over Internet

Internet Telephony:

Technologies that use the Internet Protocol’s packet-switched connections for voice service

Voice over IP (VoIP): Facilities for managing the delivery of voice information using the

Internet Protocol (IP)

Virtual Private Network (VPN):

A secure connection between two points across a public network to transmit corporate data. Provides a low-cost alternative to a private network.

Web and E-Commerce Server Operations

Hit: Entry into Web server’s log file generated by each request to the server for

a file

Electronic commerce server software: Provides functions essential for running e-commerce Web sites Collecting and storing data on the behavior of online customers, and

combining that data with data already stored in the company’s back office systems

Analyzing the data to better understand the behavior of online customers Identifying customer preferences and trends

eCommerce Softwares

Zen Cart

Magento

osCommerce

VirtueMart

PrestaShop

osCMax

ERP Package Language Base License Other Info Developer Country

A1 ERP JavaAlliance Technologies Open License

ERP for Public Sector, Academia, Healthcare, Logistics A1 ERP

Worldwide

Adaxa Suite Java GPLIntegrated ERP built on Adempiere

Australia/New Zealand

Adempiere Java GPLstarted as a fork of Compiere

Spain

BlueErpPHP, MySQL, PostgreSQL

GPL

Compiere Java GPL/CommercialAcquired by Consona Corporation in June 2010

US

ERP5 Python, Zope, MySQL GPLbased on unified model

Brazil, France, Germany, Japan Sénégal

ERPNEXTPython, JavaScript, MySQL

GPLERP for small and medium businesses

India

Fedena Ruby, MySQL Apache LicenseERP for Schools/Universities

India

GNU Enterprise Python GPLv3

HeliumV Java AGPLERP for small and medium businesses

Austria, Germany

JFire Java LGPLKuali Foundation Java

LedgerSMB Perl, PostgreSQL GPLstarted as a fork of SQL-Ledger in 2006

Worldwide

OFBiz Apache, Java Apache License 2.0ERP for small and medium businesses

Openbravo Java

Openbravo Public License (OBPL), a free software license based on the Mozilla Public License (MPL)

Spain

OpenERP Python, PostgreSQLAGPLv3, OpenERP Public License

formerly Tiny ERP Belgium, India, USA

Opentaps Java AGPLv3

Can run in the Amazon EC2 cloud. Based on Apache OFBiz 10.04 and Tomcat 6.0.26

Worldwide

PostbooksC++, JavaScript, PostgreSQL

CPALProduced by XTuple, uses Qt framework

SQL-Ledger Perl, PostgreSQL GPL

Tryton Python GPLv3started as a fork of OpenERP

WebERP PHP, MySQL GPLv2 LAMP based system

Pulkit Sharma

D.F.T.

Semester III