Management Information Systems

Leading Business into the Future

Definition -Its a computer-based system that makes information available to the users with similar needs.The users usually comprise of an organizational entity. -The information describes the firm or one of the major systems in terms of what has happened in past, what is happening now and what is likely to happen in the future. -The information is made available in the form of periodic reports, special reports and outputs of mathematical simulations. -The information output is used by both managers and non managers as they make decisions to solve the firms problems. -Combination of human and computer-based resources that results in collection, storage,retrieval,communication and use of data for efficient management of systems.

-The management information system is an integrated approach for providing interpreted and relevant data that can help managers make sound decisions. An MIS should interpret, organize, and filter data so that it reaches managers in an efficient and timely manner.
- It is a network of people, behaviors, and machines within an organization to provide managers with the information they need. - With the help of database software, users can store, add, delete and create data Ex. of MIS Most universities use an MIS to track student course enrollment, handle budgets, and forecast enrollment.

Goals of an MIS
- Provide managers with information - Regular, routine operations - Control, organize and plan better

Information as a Resource
Information is an essential component of managerial control. It is important to distinguish data and information. Data are raw, unanalyzed facts, figures and events; while information is useful knowledge derived from data and communicated for a purpose and helps people make decisions. Information has no intrinsic value. Its value is determined by those who use it to make a sound decisions. The value of information should meet four criteria: 1. Quality 2. Relevance 3. Quantity 4. Timeliness

Five Parts of an Information System

People Procedures Software

Hardware Data

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People

Most important part of any system Contact is

Direct Indirect Business & Entertainment Education & Medicine

Computer uses

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Software

Programs Two major kinds of software

System Software Application Software

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System Software

A collection of programs Enables the application software to interact with the hardware Background software that helps the computer manage its own resources

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Application Software

End-user software Two major categories

General purpose Special purpose

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Hardware

Equipment that processes the data Controlled by software Physical devices

Keyboard Mouse Monitor Other devices

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The Computer Evolution

The Computer Evolution

The ENIAC was the first electronic developed by the University of Pennsylvania. It was 8 feet high, 8 feet long, weighed 30 tons; and required about 174,000 watts or power to run. It took about two days to set up ENIAC to carry out program.

Electrical Numerical Integrator and Computer (ENIAC), 1940s an early computer developed at UPenn Size: 30 x 50 room 18,000 vacuum tubes 1500 relays weighed 30 tons designers John Mauchly J. Presper Eckert

Types of Computers

Supercomputers Mainframe computers Minicomputers Microcomputers

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Supercomputers
High capacity Used by very large organizations
Tracking space Tracking weather

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Mainframe Computers

Occupies specially wired, air-conditioned rooms Capable of great processing speeds and data storage Not as powerful as supercomputers Developed in the 1960's that were relatively big and costly were in use by very large companies and government organizations

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Minicomputers

Known as midrange computers Used by medium-size companies Used by departments of large companies Developed in the 1970's,wherein smaller in size and cost and they were often programmed to do the specific functions for a specific business activity

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Microcomputers

Least powerful Widely used More user-friendly than those of the past For a few hundred dollars, a manager can buy a microcomputer capable of processing big amounts of data

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Four Types of Microcomputers

Desktop Notebook or laptop Tablet PC Handheld

Desktop

Notebook

Handheld

Tablet PC

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Desktop Computers

Are small enough to fit on top of or alongside a desk yet are too big to carry around

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Notebook or Laptop Computers

Notebook, also known as laptop computers, are portable, lightweight, and fit into most briefcases

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Tablet PC

Is a type of notebook computer that accepts your handwriting. This input is digitized and converted to standard text that can be further processed by programs such as a word processor.

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Handheld

Are the smallest and are also known as palm computers. These systems typically combine pen input, writing recognition, personal organizational tools, and communications capabilities.

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A view of MIS model (fig.1.1)

Organizational problem solver Report writing software

Mathematical models

Data Base

The MIS Model

The database contains the data provided by the Accounting Information System. In addition, both data and information are entered from the environment. The database contents are used by software that produces periodic and special reports and its used by the mathematical models that simulate various aspects of the firms operations. The softwares output are used by persons who are responsible for solving the firms problems.

Data(Procedures)

Raw, unprocessed facts Processing creates information Stored electronically in files

Document files Worksheet files Database files Presentation files

Presentation

Database

Worksheet

Document

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Document Files

Created by word processors to save documents such as memos, term papers, and letters

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Worksheet Files

Created by electronic spreadsheets to analyze things like budgets and to predict sales

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Database Files

Typically created by database management programs to contain highly structured and organized data

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Presentation Files

Created by presentation graphics programs to save presentation materials. For example, a file might contain audience handouts, speaker notes, and electronic slides.

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Connectivity, the Wireless Revolution, and the Internet

Connectivity

Sharing of information Wireless communication is becoming popular Connected communication system of computers Largest network is the Internet

Computer networks

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Report Writing Software

The report writing software consists of programs that produce both periodic reports and special reports Periodic reports are prepared according to a certain schedule. The information is gathered in specific schedule from the sources through which assessment can be done, for example, feedback about sales from customers. Special reports are prepared from those events which are special in some nature. A special report can describe some event that is still happening or just happened, and also it can address a topic that is of a particular interest to the user at the present time, for example, an accident report.

Including Exceptions Into Reports

Its a method of improving the contents of both periodic and special reports. Its also called Management by Exception and it can be done in the following ways. 1. Prepare the report only when Exceptions occur. Here all the entries are a result of an exception condition. An example is the overtime earning report of employees. 2. Highlighting Exceptions by maintaining a certain sequence. One of the most popular way is to sequence the entries in the report in ascending or descending manner based on one or more key fields. A particular record in this type of arrangement is easy to find. 3. Grouping the Exceptions together. The exceptions of special interest for the manager can be grouped and highlighted for quick attention. For example, a report containing the records about immediate cash payments group and cash receivables group, so if they are grouped separately then the manager can scan them for highest amounts in both the groups. 4. By showing Variance from normal. Here the records contain the details of the comparison of the actual activity with the planned activity. For example, a sales analysis report.

Modeling
Modeling is a management skill for managers, using various models to represent various events or to predict certain happening. A model is an abstraction of something, it represents some phenomenon i.e. an Object or an Activity, and this phenomenon is called an entity. For example, if a model represents a firm then the firm is an entity, or if it represents a fluctuation in the firms sales volume then the sales volume becomes an entity.

Types of Models used in Management

There are four types of models Physical, Narrative, Graphic and mathematical. The Physical model is that exists in a three dimensional form, usually smaller than the real entity. For example, a clay model of a building. The Narrative model is created by verbal or written description. And as these can be created any where with out much resources hence they are most popular. The Graphic model is diagram usually two dimensional which make extensive use of graphical entities like graphs and charts. The Mathematical model are created using mathematical formulas where the symbols used in the formula represent parts of a phenomenon. A mathematical model can be classified in to three dimensions the Influence of Time, the Degree of Certainty, ability to achieve Optimization.

Ways to Design Stages and Development

1 2 3 4

.D e f i n i t i o n o f t h e p r o b le m .C o n c e p t u a l d e s i g n .D e t a i le d d e s i g n .I m p le m e n t a t i o n

Developing an MIS
It is ver important to consider that designing an MIS will include everything that is likely to occur before purchasing the equipment and putting the new MIS into operation. The design stage involves the following steps: 1. Identification of the manager's needs 2. Setting of objectives for the system 3. Preparing a project proposal 4. Preparation of a conceptual design of the MIS 5. Preparing a detailed design

MIS and Human Factors

The human factor consideration include the factors that can effect the performance of the employees during their computer related tasks (in this case). Apart from other factors the Fear factor is the major issue in this case. For example, the biggest fear among the employees is the fear of losing their jobs due to automation by computers. A program to minimize the fear factor 1. Using computers for Job Enhancement. Here the computers are put to do the redundant and boring jobs and giving the employees challenging jobs. This will create a sense among the employees that they are very much required for the company.

2. Using Formal Communication to keep the employees informed about the intentions of the company. Which creates clear idea in the employees mind and is not carried out by false propaganda. 3. Building Trust between Employees, Information Specialists and Management. This can be done by involving all of them in projects with proper formal communication. 4. Align the Employees Needs with the objectives of the firm. Here the identification of employee needs is done and then motivate the employees to work for the firm in order to fulfill the employees needs.

Resistance to Change
Three fundamental types of resistance Avoidance withdrawal from a frustrating situation and this type of MIS is virtually damaging when exhibited by top management Projection a psychological mechanism in putting the blame on someone or on something else whenever a problem arises Aggression usually manifested by striking back at the person or object that appears to be the cause of frustrating situation

Factors that contribute to an effective MIS

1. User involvement 2. Top-management support 3. Thorough testing 4. Evaluation and time cost 5. Gradual implementation 6. Training and documentation 7. Systems back-up 8. User orientation 9. Clear communication

Types of Information Systems

1. Transaction Processing Systems (TPS) 2. Management Reporting Systems (MRS or MIS) 3. Decision Support System (DSS) 4. Executive Information System (EIS)
5. Enterprise support systems, Executive Support Systems

6. Group DSS (GDSS)-Groupware

Transaction Processing Systems

-Fundamental, routine, operations, produces fixed reports. -Frequently organized by function. Old systems commonly called legacy systems. Integration is a problem with legacy systems. SAP provides integrated solution. -Electronic Data Interchange commonly used to support transactions between supplier and customer. -If failure all operations stop, no transactions

Management Reporting System

Reporting system

Expectations

Reports

Database

Management Reporting Systems--Obtain summarized data from TPS to produce feedback reports on operation.

Executive Information System

Assists strategic decision making through graphics based queries on summarized and detailed data. Also access to external data
Database

Computer

External data

Dataware house

Decision Support System

Assists decision makers through ad hoc queries and models.
Interface

Problem solving subsystem

External Database

Database or datawarehouse

Models

Group Decision Support System

Support for idea generation Idea categorization Idea ranking Voting Graphical displays Information sharing and collaborative work (GroupWare) Supports group decisions Time and space matrix.

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