Management Information Systems

D P Goyal

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MIS-An INTRODUCTION
Why MIS?
Cant we do without MIS?

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

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Why MIS?

Todays 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 Policies Budgets Plans Objectives

Revenues Schedule

Costs

Profits

Middle Level

Measurements

Low Level Goods Services Performance

Interaction Between Levels Of Management

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Information Needs of Different Level Managers

Strategic Planning Level Unstructured Non-programmed Futuristic Inexact External

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Structured Programmed Historical Exact Internal 15

SYSTEM ?
The word System is the most loosely held word in Management Literature WE TALK ABOUT
DIGESTIVE SYSTEM CIRCULATORY SYSTEM ECONOMIC SYSTEM SOLAR SYSTEM EDUCATION SYSTEM COMPUTER SYSTEM and so on
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THEN WHAT IS A System?

Input

Process

Output

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

Process
Feed Back /Control Loop

Output

Involves a 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
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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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Management Information System

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

ORGANIZATIONS

TECHNOLOGY

INFORMATION SYSTEMS

MANAGEMENT

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Management Hierarchy

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 firms daily activities

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TECHNICAL APPROACHES
COMPUTER
SCIENCE MANAGEMENT SCIENCE OPERATIONS RESEARCH

MIS
SOCIOLOGY POLITICAL SCIENCE
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PSYCHOLOGY

BEHAVIORAL APPROACHES
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Socio-Technical Systems

Optimize systems performance:

Technology and organization Organizations mutually adjust to one another until fit is satisfactory

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Socio-technical Systems

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The Interdependence Between Organizations and Information Systems

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The Widening Scope of Information Systems

1950s: Technical changes 60s-70s: Managerial controls 80s-90s: Institutional core activities

Growing Importance
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The Widening Scope of Information Systems

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What You Can Do on the Internet

Communicate Access information

Participate in discussions
Supply information Find entertainment Exchange business transactions
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New Options for Organizational Design

Flattening organizations Separating work from location

Reorganizing work-flows
Increasing flexibility Redefining organizational boundaries
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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

Executive Support Systems

Level-I

Decision Support Systems Management Information Systems

Level- II Level- III

Transaction Processing Systems

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Transaction Processing System

Book Keeping

Data Gathering Data Editing Data Manipulation Data Storage

Issuance

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 Presentation Features

Strategic planning support External environment focus Broad based computing facility

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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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Capturing Knowledge: Expert Systems

Knowledge Base

Rule-based Expert System

Rule Base Knowledge Frames
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Rules in an AI Program

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Neural Networks

Hardware or software emulating processing patterns of biological brain Put intelligence into hardware in form of a generalized capability to learn

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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

Outputs

Transaction Data Marketing Research Data Marketing Intelligence Data Strategic Plans

Product Plan Place Plan Price Plan Promotion Plan Budget & Sales Forecast
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Financial Information System

Inputs

Outputs

Transactional Data Forecasting Data Financial Intelligence Data Strategic Plans

Forecast Funds Management Audit and Controls

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Production and Operations System

Inputs

Outputs

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

Product Design Job Scheduling Production QC/QA

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Human Resource Information Systems

Inputs

Outputs

Transaction Data Functional Plans External data

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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Managers and Decision Making

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
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Managers and Decision Making

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
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TYPE OF DECISION
STRUCTURED

Different Kinds of Information Systems Organizational Level

OPERATIONAL ACCOUNTS RECEIVABLE KNOWLEDGE MANAGEMENT STRATEGIC

TPS
SEMISTRUCTURED PROJECT SCHEDULING

ELECTRONIC SCHEDULING

PRODUCTION COST OVERRUNS

OAS

MIS
BUDGET PREPARATION

DSS

KWS
UNSTRUCTURED 3/30/2012 PRODUCT DESIGN

FACILITY LOCATION

ESS
NEW PRODUCTS NEW MARKETS

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Decision Making

Intelligence: Collect information, identify

problem
problem

Design: Conceive alternative solution to a Choice: Select among the alternative

solutions

Implementation: Put decision into effect

and provide report on the progress of 3/30/2012 solution
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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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Functions of Telecommunications Systems

Transmit information Establish interface between sender and the receiver Route messages along most efficient paths

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Functions of Telecommunications Systems

Perform elementary processing of information Perform editorial tasks on data Convert message speed or format Control flow of information
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Types of Signals: Analog and Digital

Analog signal

Continuous waveform

Passes through communications medium

Used for voice communications

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Types of Signals: Analog and Digital

Digital signal

Discrete waveform Transmits data coded into two discrete states as 1-bits and 0-bits Used for data communications

Modem

Translates computers digital signals into analog and vice versa

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Functions of the Modem

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Communications Channels

Twisted wire: Telephone systems Coaxial cable: Cable television Fiber optics and optical networks: Dense
wave division multiplexing (DWDM)

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Communications Channels

Wireless transmission: Microwave,

Satellites, Paging systems, Cellular telephones, Personal communication Services, Personal digital assistants, Mobile data networks

Transmission: Baud, bandwidth

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Communications Processors and Software

Front-end processor: Manages

communications for the host computer

Concentrator: Collects and temporarily

stores messages
traffic

Controller: Supervises communication Multiplexer: Enables single communication

channel to carry data transmissions
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Network Topologies

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

Local Area Networks

Telecommunication network

Require its own dedicated channels

Encompass a limited distance

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A Local Area Network (LAN)

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

Wide Area Networks (WANs)

Telecommunication network Span large geographical distance Consist of variety of cable, satellite, and microwave technologies Switched lines, dedicated lines
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Value-Added Networks (VANs)

Network Services and Broadband Technologies

Private, multipath, data-only, third-partymanaged 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 3/30/2012 95

Packed-Switched Networks and Packet Communications

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Electronic Commerce and Electronic Business Technologies

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
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Electronic Commerce and Electronic Business Technologies

Voice Mail and Fax

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

Fax: Digitizes and transmits documents

over telephone lines

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Electronic Commerce and Electronic Business Technologies

Teleconferencing, data conferencing, and videoconferencing Teleconferencing: Ability to confer with a

group of people simultaneously
can edit and modify data files simultaneously

Data conferencing: Two or more users

Videoconferencing: Participants are able

to see each other over video screens
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Electronic Commerce and Electronic Business Technologies

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
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Electronic Data Interchange

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

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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 Requirements Analysis Systems Design Coding & Testing Implementati on Maintenance

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Problems with SDLC

Real Projects are generally iterative, not sequential Tough to state all requirements in the beginning

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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. 3/30/2012 107

Prototype Model
Start Requirements Gathering and Refinement Quick Design Building Prototype

Stop

Develop the Product

Refining prototype

Customer Evaluation

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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

Towards a completed system

Customer Evaluation
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Engineering
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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

Requirements Gathering Design Strategy Implementation using 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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Preliminary requirements gathering

Requirements Analysis

Prototyping

4GT

Spiral model first iteration

Design 4GT Prototyping Last iteration Coding Spiral model last iteration 4GT

Testing

Operational System
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Maintenance

Operational System

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