Management Information Systems Module I

Topics to be covered
Concepts of Data and Information Management process & Information needs Systems approach to Problem Solving Levels, Classification & Capabilities of IS Strategic role of Information Systems Information for Competitive Advantage Business Process Re-engineering
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What is MIS?
Systems - A Set of interrelated components, with a
clearly defined boundary, working together to achieve a common set of objectives. Information Systems - is an organized combination of people, hardware, software, communication channels and data resources that collect, transform and disseminates information in an organization.

Management Information System -A combination of computers and people that is used to provide information to aid in making decisions and managing a firm.
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Systems Concepts

Systems
Derived from the Greek word Systema Meaning: an organized relationship among functional units or components. Definition: a combination of resources or functional units working together to accomplish a given task which is actually the objective of the system
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System Components
Resources
1

Procedures
2

Objectives
3

Process

System
Data/Information
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Others

Standards, Environments Boundaries & Interfaces Feedback

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Classification of Systems
 Physical or Abstract  Open or Closed  Deterministic or Probabilistic  Human, Machine or HumanMachine
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1. Physical & Abstract



Physical Systems
Tangible Entities Static or Dynamic in nature

Abstract Systems
Conceptual Formulas or model of a real system

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2. Open & Closed



Open Systems
Interaction with environment High probability of survival

Closed Systems
No interaction with environment Conceptual

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3. Deterministic or Probabilistic
 Deterministic
 Outputs are certain

 Probabilistic
 Output behaves probabilistically

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4. Human, Machine, or Human-Machine

humans, open systems, output is probabilistic.  Machine system components are machines, relatively closed, and output is deterministic.  Human-Machine systems - consists both humans and machines as components, deterministic in delivery, but probabilistic in interpretation.
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Human systems - the components are

Systems Approach to Problem Solving

Step 1: Defining the problem Step 2: Developing alternative solutions Step 3: Selecting a solution Step 4: Designing the solution Step 5: Implementing the solution Step 6: Reviewing the solution.
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Information Systems

What is Information System?

Information system is an organized combination of people, hardware, software, communication channels and data resources that collect, transform and disseminates information in an organization.

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Data Vs. Information

Data are raw facts or observations, about any physical phenomena or business transactions.
Ex: Names, Quantities, Amount etc.

Information is when data is converted into meaningful and useful context for specific end users.
Ex: Amount of sale by product type, or sales men etc.

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Data
Data refers to details, facts of an event. Data is disorganized and disintegrated in form. Data is in raw form. Cannot be understood or made use by the users. Data is independent of information.
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Information
Information refers to events concerned with an entity. Properly arranged, classified, and organized. It s in finished form. Can be understood and used by users. It is based upon and derived from data.
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Knowledge
Accumulation of relevant information Two types:
Explicit: attained from reading documents Tacit: attained from experience through dialogue, judgment, lessons, etc. (it is not easily transferrable)

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Classification of Data
Structured Data
Usually tabular data stored in fields within a file or a record. Examples are databases and spreadsheets

Unstructured Data
In the form of text and images. Examples are letters, memos, legal documents, images, etc

Meta Data
It is the data about data, used mainly for managing unstructured data. It includes, authors or sources, date written, content of document, number of pages, words, data entries etc.

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Classification of Information

Action Vs. Non-Action Information Internal Vs. External Information Recurring Vs. Non-Recurring Information

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Action Vs. Non-Action

Action Information : Induces some action.
Example: No Stock report calling a purchase action.

Non-Action Information: Communicates only the status of a situation.

Stock ledger showing store transactions and Stock balances.
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Recurring Vs. Non-recurring

Recurring: generated at regular intervals
Example: Monthly sales report.

Non-recurring:
Financial analysis or Market research.

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Internal Vs. External

Internal: Generated through internal sources of organization. External: Generated through Gov. reports, industry survey etc. Here the sources of the data are outside the organization

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Classification by Usage
Organizational: The information used by everyone in an organization.
Eg. Payroll information.

Database: The information which has multiple uses and applications.

Eg. Material specification etc.

Functional or Operational: Information used in operations of business.

Eg Sales and production statistics.
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Information Gathering Methods

Asking or interviewing Determining from the existing system Analyzing the critical success factors Experimentation and modeling

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Sources of Information
Primary data (collected for the first time) is gathered directly from respondent using methods like observations, interviewing, and questionnaires. Secondary data is collected from internal or external records like newspapers, journals, govt. publications, research reports, policy documents, and web sites
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Quality of Information
The Quality of information is influenced by: Timeliness: Relevance Completeness Exception Based Accuracy Adequacy Explicitness

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Components of Information System

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Control of System Performance

INPUT DATA RESOURCES

PROCESSING DATA INTO INFORMATION

OUTPUT OF INFORMATION PRODUCTS

Storage of Data Resources.

Communication & network Support

NETWORK RESOURCES.
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Types of Information Systems

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INFORMATION SYSTEMS

OPERATIONS SUPPORT SYSTEMS

MANAGEMENT SUPPORT SYSTEMS

TRANSACTION PROCESSING SYSTEMS

PROCESS CONTROL SYSTEMS

OFFICE AUTOMATION SYSTEMS

MANAGEMENT INFORMATION SYSTEMS

DECISION SUPPORT SYSTEMS

EXECUTIVE INFORMATION SYSTEMS

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I Operations Support systems

Supports information processing requirements of day-to-day operations of a business, as well as some lower lever operations management functions. Produces variety of information products for external and internal use. Further processing by management information systems is usually required. Role of these systems is to effectively process business transactions, control industrial processes, support office communications and productivity, and update corporate databases. Includes Transaction Processing Systems (TPS), Process Control Systems (PCS), and Office automation systems.
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Transaction Processing Systems

TPS processes business transaction of the organization. Provide speed and accuracy. Processing is done in two ways.
Batch Processing transaction data is accumulated over a period of time and processed periodically Real Time (on line) processing Data is processed immediately after a transaction occurs.

Example, Railway reservation system (Booking, canceling, etc are all transactions).
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Process Control Systems

Monitor and control physical processes. For example, a petroleum refinery uses electronic sensors linked to computers to continually monitor chemical processes and make instant adjustment that control the refinery process.

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Office Automation Systems

Used by knowledge workers Enhances office communications and productivity. For example, the use of word processing for office correspondence, e-mail for sending and receiving electronic messages, and teleconferencing to hold electronic meeting.
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II Management Support systems

Provides information and support for effective decision making by all levels of management (from top executives to middle managers to supervisors). Includes Management Information Systems (MIS), Decision Support Systems (DSS), and Executive Information systems.
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Management Information Systems (MIS)

Provides information in the form of reports and displays to managers. For example, sales managers may use their computer workstations to get instantaneous displays about the sales results of their products and to access weekly sales analysis reports that evaluate sales made by each sales person.

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Decision Support Systems (DSS)

Assist higher management to make long term decisions For example, advertising managers may use an electronic spreadsheet package to do what-if analysis as they test the impact of alternative advertising budgets on the forecasted sales of new products.

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Executive Information systems

Provide critical information in easy-to-use displays to top level management. For example, to executives may use touch screen terminals to instantly view text and graphics displays that highlight key areas of organizational and competitive performance.
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Information needs of an organization

Strategic information is the information needed by top most management for decision making for future long term plans. Tactical information is needed for middle level management for making short term decisions and plans for the organization. Operational information is daily information needed to operate the business.
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Relationship between Management and Information levels in an organization

Strategic Information

EIS & DSS

Tactical information

MIS

Operational Information

TPS
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Business Process Re-Engineering (BPR) or Re-engineering

One of the most important implementation of competitive strategies The radical redesign of business processes, combining steps to cut waste, eliminate repetitive paper work etc so as to improve cost, quality and service and to maximize benefits. It is rethinking of traditional work methods and procedures
Contd
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Michael Hammer defines Reengineering as The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements, such as cost, quality, service and speed . Internet technologies can play a major role in supporting innovative changes in the design of workflows, job requirements, and organizational structures in a company.

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 End of Module I 

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