MIS

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Management Information Systems

D P Goyal

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MIS-An INTRODUCTION

Why MIS?Can’t we do without MIS?

What is MIS?What is Management?What is Information?What is Systems?

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Why MIS?

Today’s Manager is confronted with TWO main challenges:

he/she has to

TAKE QUICK DECISIONS PROCESS A LARGE VOLUMINOUS INFORMATION

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What is an MIS?

MIS- An Acronym of _ _ _ M I S

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MANAGEMENT

To get the work done through and with the help of people

By performing basic functions of management

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……basic functions of management

PLANNING ORGANISING STAFFING DIRECTING CONTROLLING

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Essence of Management

Whatever a manager does, he/she does it through DECISION-MAKING

“DECISION-MAKING IS AN ESSENCE OF MANAGEMENT”

-Peter Drucker

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INPUT IN DECISION MAKING

For Decision Making

INFORMATION is the necessary and vital input

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Data A stream of raw facts about

anything Examples:.

Record of all the players in one day cricket matches.

Detailed Marks of all students in a class.

Business data as obtained from various business houses.

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Information

processed data, which is useful to the recipient.

Examples: Profit of the company in the current year The highest ever score in one day cricket First ten toppers in a class The top 50 business houses of India.

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Then Information is……

WHICH Tells something the receiver did

not know Reduces uncertainty Has a surprise value Has a real / perceived value in

current / prospective decision.

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Data and Information

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Management Hierarchy

Levels of Management

• Strategic Planning Level

• Management Control Level

• Operational Control Level

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Management Level Functions

Top Level Middle Level Low Level

Interaction Between Levels Of Management

Policies Budgets Plans Objectives

Revenues Costs Profits

Schedule Measurements

Goods Services Performance

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Information Needs of Different Level Managers

Strategic Planning Level

Operational Control Level

•Structured•Programmed•Historical•Exact•Internal

•Unstructured•Non-programmed•Futuristic•Inexact•External

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SYSTEM ?

“The word ‘System’ is the most loosely held word in Management Literature”

WE TALK ABOUTDIGESTIVE SYSTEMCIRCULATORY SYSTEMECONOMIC SYSTEMSOLAR SYSTEMEDUCATION SYSTEMCOMPUTER SYSTEM …………………and so on

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……THEN WHAT IS A System?

Input OutputProcess

A set of inter-related elements working towards a common objective(s).

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System and Environment

Environment

Boundary

Systems

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System and Environment

A system is a set of interrelated elements that collectively work together to achieve some common goal or objective.

All systems function within some

kind of environment.

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Types of Systems

Closed Systems Open Systems / Cybernetic

Systems

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Cybernetic System

Input OutputProcess

Involves a feed back control Loop

Feed Back /Control Loop

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Systems Approach to management

WHOLISTIC APPROACH

CONTRARY TO

PIECEMEAL APPROACH

The Whole is greater than the sum of its parts

2+2=5

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....Systems Approach

Every system is held together by way of Information Exchange.Classical

Systems

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Management Information System is

A set of interrelated components which Collect, retrieve, process, store and

distribute information To support decision making Of managers In an organization.

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MIS utilizes Computer H/w and S/w Databases Model bases Operating procedures People

Management Information System

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Computer Based Information System The moment we say MIS, now a

days,

It is implied that

IT IS COMPUTER BASED MIS

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Information Systems

ORGANIZATIONSORGANIZATIONS TECHNOLOGYTECHNOLOGY

MANAGEMENTMANAGEMENT

INFORMATIONINFORMATION

SYSTEMSSYSTEMS

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Levels: Strategic Planning : make long-range strategic

decisions about products and services

Management Control: Carry out the programs and plans of senior management

Operational Control: monitor the firm’s daily activities

Management Hierarchy

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SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

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Optimize systems performance:

Technology and organization

Organizations mutually adjust to one another until fit is satisfactory

Socio-Technical Systems

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Socio-technical Systems

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The Interdependence Between Organizations and Information Systems

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1950s: Technical changes

60s-70s: Managerial controls

80s-90s: Institutional core activities

Growing Importance

The Widening Scope of Information Systems

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The Widening Scope of Information Systems

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Communicate

Access information

Participate in discussions

Supply information

Find entertainment

Exchange business transactions

What You Can Do on the Internet

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Flattening organizations

Separating work from location

Reorganizing work-flows

Increasing flexibility

Redefining organizational boundaries

New Options for Organizational Design

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Flattening Organizations Information Systems

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Redesigned Work Flow For Insurance Underwriting

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Types of ISs

Categories of ISs Functional ISs

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Categories Of ISs TPS MIS DSS ESS CRM SCM ERP ………………..

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Types of Information Systems

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TYPES OF INFORMATION SYSTEMS

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Types of Information Systems

Transaction Processing Systems

Decision Support Systems

Management Information Systems

Executive Support Systems

Expert

System

s

Decisi

on Sup

port

System

s

Office

Auto

mation

System

s Level-I

Level- II

Level- III

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Transaction Processing System

Book Keeping

Issuance

•Data Gathering

•Data Editing

•Data Manipulation

•Data Storage

•Information Documents

•Error Reports

•Control Reports

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Payroll TPS

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Types of TPS Systems

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Knowledge Work Systems (KWS):

Knowledge level Inputs: Design specs Processing: Modeling Outputs: Designs, graphics Users: Technical staff

Example: Engineering work station

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Management Information Systems

PROVIDES INFORMATION On continuous basis and reports like Scheduled Reports Exception Reports Demand Reports

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Management Information System (MIS)

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Decision Support Systems

PROVIDES SUPPORT IN THE DECISION MAKING OF MANAGERS

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Decision Support System (DSS)

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Decision Support System (DSS)

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Executive Information Systems

Business Content

Strategic planning support

External environment focus

Broad based computing facility

Presentation Features

Drill down Reporting Exceptional reporting Graphic Summary Office automation

capabilities Ease of learning and use Customization

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Executive Support System (ESS):

Strategic level Inputs: Aggregate data Processing: Interactive Outputs: Projections Users: Senior managers

Example: 5-year operating plan

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Executive Support System (ESS)

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Office Automation Systems

Office Work Data Manipulation Document Handling Communication Storage

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The Artificial Intelligence Family

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Expert Systems

Perform Problem Solving Represent Knowledge as rules Interact with Humans Builds on the Knowledge base

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Knowledge Base

Rule-based Expert System

Rule Base

Knowledge Frames

Capturing Knowledge: Expert Systems

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Rules in an AI Program

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Hardware or software emulating processing patterns of biological brain

Put intelligence into hardware in form of a generalized capability to learn

Neural Networks

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INTERRELATIONSHIPS AMONG SYSTEMS

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Functional Areas of Management

Marketing Finance Production and Operations Human Resource Development

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Marketing Information System

Inputs

Transaction Data Marketing

Research Data Marketing

Intelligence Data Strategic Plans

Outputs

Product Plan Place Plan Price Plan Promotion Plan Budget & Sales

Forecast

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Financial Information System

Inputs

Transactional Data

Forecasting Data Financial

Intelligence Data Strategic Plans

Outputs

Forecast Funds

Management Audit and

Controls

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Production and Operations System

Inputs

Production data Inventory Data Vendor Data Marketing data Labor/Union/Engg.

Data Environment Data

Outputs

Product Design Job Scheduling Production QC/QA

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Human Resource Information Systems

Inputs

Transaction Data Functional Plans External data

Outputs

Organizational Resource Planning

Organizational Management

Payroll and Administration

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Group Exercise - 1 Consider any organization Identify various activities involved

in the organization Identify the ways in which activities

are grouped in the organization Identify the information exchanged

across various levels. Discuss possible benefits the

organization might/has accrue(d) by deploying IS/IT.

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Decision-Making

How decisions are made? Decision Situations

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DECISION-MAKING

To select one alternative out of various alternatives.

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Operational control: Determines how to perform specific tasks set by strategic and middle-management decision makers

Knowledge-level decision making: Evaluates new ideas for products, services, ways to communicate new knowledge, ways to distribute information

Managers and Decision Making

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Decisions are classified as:

Unstructured: Non routine, decision maker provides judgment, evaluation, and insights into problem definition, no agreed-upon procedure for decision making

Structured: Repetitive, routine, handled using a definite procedure

Managers and Decision Making

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TPSOAS MIS

KWS

DSS

ESS

Organizational LevelTYPE OFTYPE OFDECISIONDECISION OPERATIONAL KNOWLEDGE MANAGEMENT STRATEGIC

STRUCTURED ACCOUNTS RECEIVABLE

ELECTRONIC PRODUCTIONSCHEDULING COST OVERRUNS

SEMI- BUDGETSTRUCTURED PREPARATION

PROJECTSCHEDULING

FACILITYLOCATION

UNSTRUCTURED PRODUCT DESIGN NEW PRODUCTSNEW MARKETS

Different Kinds of Information Systems

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Intelligence: Collect information, identify problem

Design: Conceive alternative solution to a problem

Choice: Select among the alternative solutions

Implementation: Put decision into effect and provide report on the progress of solution

Decision Making

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Decision-Making Process

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Decision Situations

Certain Situation Risk Situation Uncertain Situation

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Data Communication

Communication Process Features of Channel Applications of Internet

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Data Communications and Networks

MIS is not a standalone system It is networked

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Components of a Telecommunications System

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Transmit information

Establish interface between sender and the receiver

Route messages along most efficient paths

Functions of Telecommunications Systems

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Perform elementary processing of information

Perform editorial tasks on data

Convert message speed or format

Control flow of information

Functions of Telecommunications Systems

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Analog signal

Continuous waveform

Passes through communications medium

Used for voice communications

Types of Signals: Analog and Digital

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Digital signal Discrete waveform

Transmits data coded into two discrete states as 1-bits and 0-bits

Used for data communications

Modem

Translates computer’s digital signals into analog and vice versa

Types of Signals: Analog and Digital

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Functions of the Modem

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Twisted wire: Telephone systems

Coaxial cable: Cable television

Fiber optics and optical networks: Dense wave division multiplexing (DWDM)

Communications Channels

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Wireless transmission: Microwave, Satellites, Paging systems, Cellular telephones, Personal communication Services, Personal digital assistants, Mobile data networks

Transmission: Baud, bandwidth

Communications Channels

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Front-end processor: Manages communications for the host computer

Concentrator: Collects and temporarily stores messages

Controller: Supervises communication traffic

Multiplexer: Enables single communication channel to carry data transmissions

Communications Processors and Software

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Star Network: All computers and other devices are connected to a central host computer

Bus Network: Links a number of computers by a single circuit

Ring Network: All computers are linked by a closed loop

Network Topologies

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A Star Network Topology

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A Bus Network Topology

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A Ring Network Topology

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Local Area Networks

Telecommunication network

Require its own dedicated channels

Encompass a limited distance

Private Branch Exchanges, Local Area Networks (LANs), and Wide Area Networks (WANs)

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A Local Area Network (LAN)

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Wide Area Networks (WANs)

Telecommunication network

Span large geographical distance

Consist of variety of cable, satellite, and microwave technologies

Switched lines, dedicated lines

Private Branch Exchanges, Local Area Networks (LANs), and Wide Area Networks (WANs)

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Value-Added Networks (VANs)

Private, multipath, data-only, third-party-managed network

Other Network Services

Packet switching, Frame Relay, Asynchronous transfer mode (ATM)

Integrated Services Digital Network (ISDN), Digital subscriber line (DSL), Cable modems, T1 line, Broadband

Network Services and Broadband Technologies

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Packed-Switched Networks and Packet Communications

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Electronic Mail and Groupware

E-mail: Eliminates telephone tag and costly long-distance telephone charges

Groupware: Enables work groups at different locations to participate in discussion forums and work on shared documents and projects

Electronic Commerce and Electronic Business Technologies

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Voice Mail and Fax

Voice mail: Digitizes spoken message and transmits it over a network

Fax: Digitizes and transmits documents over telephone lines

Electronic Commerce and Electronic Business Technologies

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Teleconferencing, data conferencing,

and videoconferencing Teleconferencing: Ability to confer

with a group of people simultaneously

Data conferencing: Two or more users can edit and modify data files simultaneously

Videoconferencing: Participants are able to see each other over video screens

Electronic Commerce and Electronic Business Technologies

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Digital information services, distance learning and E-Learning

Distance learning: Education or training delivered over a distance to individuals in one or more locations

E-learning: Instruction delivered online using the Internet or private networks

Electronic Commerce and Electronic Business Technologies

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Direct computer-to-computer exchange between two organizations of standard business transaction documents

Electronic Data Interchange

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Electronic Data Interchange (EDI)

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DEVELOPMENT OF MIS

APPROACHES

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Approaches to Systems Development

•Software Development Life Cycle (SDLC)

•Prototyping

•Spiral Model

•Fourth Generation Techniques

•Hybrid Approach

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Software Development Life Cycle (SDLC)

Preliminary Investigation

Maintenance

Implementation

Requirements Analysis

Systems Design

Coding & Testing

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Problems with SDLC

•Real Projects are generally iterative, not sequential

•Tough to state all requirements in the beginning

•Customer must be patient as working version not available until late.

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Structured Systems Analysis and Design

Methodologies

Begins with documentation of existing system.

Easy to verify when relevant details have been omitted.

Requirements identification similar among individual analysts.

Working papers act as effective communication device.

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Prototype Model

Start

Stop

Requirements Gathering and

Refinement

Quick Design

Building Prototype

Develop the

Product

Customer Evaluation

Refining

prototype

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Problems With Prototype

•Customer may request a few fixes in the working version, unaware of quality

•Developer may apply inefficient solutions for quick design, later forget the reasons for inefficiency.

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Spiral Model

Planning Risk Analysis

CustomerEvaluation

Engineering

Towards a completed system

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Problems with Spiral Model

It may go uncontrollable Demands considerable

risk assessment Relatively new model;

less experience

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Object Oriented Analysis and Design

Combines data and processes into single entities called objects.

Aims at reuse, quality and productivity.

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Fourth Generation Techniques

RequirementsGathering

DesignStrategy

Implementationusing 4GL

Testing

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Problems with 4GTs

4GLs exist for very specific domains

Current tools not sophisticated Tough to maintain Produce inefficient code

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Hybrid Approach

...Combining various Methodologies

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Operational System

Preliminary requirements gathering

RequirementsAnalysis

Prototyping 4GT Spiral modelfirst iteration

Design

Coding

Testing

4GT

PrototypingLast iteration

4GT

Spiral modellast iteration

Maintenance

Operational System