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UNIT 1 Management Information System

MIS:MIS stends for management information system. It has been understood and

described in a number ways.It is not new only its computerization is new .MIS is simpally known as information system, Decision System ,and if we add computer with it then is known as Computer- based information System. computer are added to increase the speed,accuracy and increase the volume of data. 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 Changes occure in MIS:-

Sales Terminals

And now its going on up-gradetation.it is very important in business cases because in business cases management og all business cases is so important.MIS is necessary for all the organation. MIS basically include three component:1:- Management 2:-Information 3:-System Management:Management has been define in various of ways,but for our purpose it can be describe as what manager do in the operation of their organation:plan,organization,initate and control program. Now we define:-plan,organize controlling. Decision making is very important in management. So now we define decision making Information:It can be describe as collection of data.actually information is the knowledge driven from data Component of information system:1.hardware 2.software 3.data 4.procedure and 5.people Characterstic of good information:1.accurate 2.timely 3.with in low cost Who are the information user ?

Sal Termi

1:manager-important and useful information are used manager. 2:non-manager- Non-manages and staff specialists also use the MIS output. 3: Persons & organizations in the firms environment Users outside the company benefit from the MIS as well. They can be customers receiving invoices, stockholders getting dividend checks, and the federal government checking tax reports. System:System can be describe simply as a set of elements joined together for a common objective.A subsystem is a part of larger system with which we are concerned.All system are the part of larger system.These type of parts(divison,department,functions units etc) are taken as subsystem To perform a special operation we joined together these subsystem. Most of operation of MIS are executed with the help of system. 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. MIS helps in Strategic Planning, Management Control, Operational Control and Transaction Processing. 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.

Information system:Information system deals with data of the organizations. The purposes of Information system are to process input, maintain data, produce reports, handle queries, handle on line transactions, generate reports, and other output. These maintain huge databases, handle hundreds of queries etc. The transformation of data into information is primary function of information system. These types of systems depend upon computers for performing their objectives. A computer based business system involves six interdependent elements. These are hardware (machines), software, people (programmers, managers or users), procedures, data, and information (processed data). All six elements interact to convert data into information. System analysis relies heavily upon computers to solve problems. For these types of systems, analyst should have a sound understanding of computer technologies.

In the following section, we explore three most important information systems namely, transaction processing system, management information system and decision support system, and examine how computers assist in maintaining Information systems.

Component of information system:1.hardware 2.software 3.data 4.procedure and 5.people

People
There are many roles for people in information systems. Common ones include

Systems Analyst Programmer Technician Engineer Network Manager MIS (Manager of Information Systems) Data entry operator

Equipment
When you think "equipment", immediately think "Hardware AND Software"

Procedures
A procedure is a series of documented actions taken to achieve something. A procedure is more than a single simple task. A procedure can be quite complex and involved, such as performing a backup, shutting down a system, patching software.

Data
The raw, unorganised, discrete (separate, isolated) potentially-useful facts and figures that are later processed (manipulated) to produce information.

Types of information system:- Transaction Processing Systems

Management Information Systems Decision Support Systems

Transaction processing system (TPS):


A TPS collects and stores information about transactions, and controls some aspects of transactions. A transaction is an event of interest to the organisation. e.g. a sale at a store.

Dss: Decision support systems (DSS) are a subset of computer-based information systems
(CBIS).DSS

is an IS that provides information,model and manipulation tools to help make decision in semistructured and unstructured situation where no one knows how the design should be made.The traditional DSS approach include interactive problem solving , direct use of models and user controllable method for displaying and analyzing data and formulating and involving alternative decision. This approach emerged in 1970s in response to dissatisfaction the limitation of TPS and MIS . TPS focused on the record keeping and control of repetitive process.MIS was unable provide the information in a form that manager could use effectively. support systems (DSS) are a subset of computer-based information systems. The general term 'computer-based information systems' is a constellation of a variety of information systems such as office automation systems, transaction processing systems, management information systems and management support systems Management support systems consist of DSS, expert systems and executive information systems. Architecture of decision support systems:DSS consists of two major sub-systems human decision makers and computer systems. The function of a human decision maker as a component of DSS is not to enter data to build a database, but to exercise judgment or intuition throughout the entire decision making process.

Imagine a manager who has to make a five-year production planning decision. The first step of the decisionmaking process begins with the creation of a decision support model, using an integrated DSS program (DSS generator) such as Microsoft Excel, Lotus 1-2-3, Interactive Financial Planning Systems (IFPS)/Personal or Express/PC. The user interface sub-system (or dialogue generation and management systems) is the gateway to both database management systems (DBMS) and model-based management systems (MBMS). DBMS are a set of computer programs that create and manage the database, as well as control access to the data stored within it.the DBMS can be either an independent program or embedded within a DSS generator to allow users to create a database file that is to be used as an input to the DSS. MBMS is a set of computer programs embedded within a DSS generator that allows users to create, edit, update, and/or delete a model. Users create models and associated database files to make specific decisions. The created models and databases are stored in the model base and database in the direct access storage devices such as hard disks. From a user's viewpoint, the user interface subsystem is the only part of DSS components with which they have to deal. Therefore, providing an effective user interface must take several important issues into consideration, including choice of input and output devices,screen design, use of colours, data and information presentation format, use of different interface styles, etc. Today's decision support system generator provide the user with a wide variety of interface modes (styles): menu based interaction mode, command language style, questions and answers, form interaction, natural language processing based dialogue, and graphical user interface (GUI). GUIs use icons, buttons, pull-down menus, bars, and boxes extensively and have become the most widely implemented and versatile type. The interface system allows users access to: (1) The data sub-system: (a) database (b) database management software; and (2) The model sub-system:(a) model base (b) model base management software.

An important performance objective of DSS is to support all phases of the decisionmaking process.Now in DSS we define DATA/MODEL MGT.:Since model and data management in DSS are inseparable subjects, many DSS researchers continue to focus on both fields of data and model management. Data are facts which result from the observation of physical phenomena

such as daily production quantity, daily sales quantity and inventory level of product A. A database is a collection of interrelated files. Database management systems are computer programs which are primarily concerned with managing a large amount of data in a physical storage such as hard disks and creating, updating and querying databases in an optimal way.
User interface sub-systems:-

The functions of the user interface (dialogue generation and management) sub-system is to: 1 allow the user to create, update, delete database files and decision models via database management systems and model-based management systems; 2 provide a variety of input and output formats. The formats include multi-dimensional colour graphics, tables and multiple windows in a screen; 3 provide different styles of dialogues (such as graphical user interfaces, menus, direct command languages, form interaction, natural language interaction, and questions and answers.
Knowledge-based decision support systems:-

Another important emerging DSS sub-speciality is the study of knowledge-based decision support systems (KBDSS), which are hybrid systems of DSS and ES that help solve a broad range of organizational problems. In integrating DSS and ES, two basic approaches are discernible and labelled expert support systems (ESS) and intelligent support systems (ISS) Organizational decision support systems:An organizational decision support system is defined as 'a DSS that is used by individuals or groups at several work stations in more than one organizational unit who make varied (interrelated but autonomous) decisions using a common set of tools. an important goal of organizational DSS is to provide 'the glue that holds a large organization together and keeps its parts marching to the beat of the same drummer toward common goals.
Applications of decision support systems:

marketing, finance, strategic management and multifunctional areas


There are three fundamental components of DSSs [22]. MAJOUR COMPONENT OF DSS:-Database management system (DBMS). A DBMS serves as a data bank for the DSS. It stores large quantities of data that are relevant to the class of problems for which the DSS has been designed and provides logical data structures (as opposed to the physical data structures) with which the users interact. A DBMS separates the users from the physical aspects of the database structure and processing. It should also be capable of informing the user of the types of data that are available and how to gain access to them. Model-base management system (MBMS). The role of MBMS is analogous to that of a DBMS. Its primary function is providing independence between speci_c models that are used in a DSS from the applications that use them. The purpose of an MBMS is to transform data from the DBMS into information that is useful in decision making. Since many problems that the user of a DSS will cope with may be unstructured, the MBMS should also be capable of assisting the user in model building.

Dialog generation and management system (DGMS):- In the remainder of this article, we will use the broader term user interface rather than DGMS.

Decision making process:decision-making process (Sprague and Carlson 1982). Simon's model of decision making describes human decision making as having three major steps: intelligence, design and choice. The term 'support' implies many different activities and tasks in each stage of the decision-making process (see DECISION MAKING AND IT/S). In the intelligence stage, human decision makers play an important role in defining problems to be solved, based on the raw data obtained and information processed by transaction processing systems (TPS)/management information systems. A simple view of decision making is that it is a problem of choice among several alternatives. A somewhat more sophisticated view includes the process of constructing the alternatives (i.e., given a problem statement, developing a list of choice options). A complete picture includes a search for opportunities for decisions (i.e., discovering that there is a decision to be made). A manager of a company may face a choice in which the options are clear (e.g., the choice of a supplier from among all existing suppliers). She may also face a well-de_ned problem for which she designs creative decision options (e.g., how to market a new product so that the pro_ts are maximized). Finally, she may work in a less reactive fashion and view decision problems as opportunities that have to be discovered by studying the operations of her company and its surrounding environment (e.g., how can she make the production process more e_cient).

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