Download - MIS
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04/07/23 1
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