INTRO TO MIS

MR BARDI PETER
INTRODUCTON

• Management information system is an information system used for

decision making and for the coordination control analysis and

visualization of information in an organization especially in a company

• The study of management information system examines people and

technology in an organizational context.

HISTORY

• MIS can be divided into five eras originally identified by kenneth c

Laudon and Jane Laudon n their seminar textbook ‘management
information system
• First Era- Mainframe and Minicomputer computing
• Second Era- Personal computers
• Third Era – Client/server Networks
• Fourth Era – Enterprise Computing
• Fifth Era – Cloud computing
Models/Types of Management Information
Systems

• Accounting management information systems

• Financial management information systems

• Manufacturing management information systems

• Marketing management information system

• Human resource management information system

• Structure of management information system

• Conceptual structure
Models/Types of Management Information
Systems

• Physical structure

• Executive information system

• Decision support system

• Office automaton system

• Enterprise Resource planning

• School information management system

• Local database
Purpose of Management Information System

• For Information processing as a major social activity.

• The system provides information on past, present, and project future

and on relevant events inside and outside the organization in the society

• to provide the right and correct information to the right people at right
time.

• it is needed by all business organization because of increased complexity

and rate of change of today’s business environment.
Management information system concept is
vital to effective computer use in business

• It serves as a system framework for organizing business computer

applications.

• It emphasizes the management orientation of electronics

information processing in business the primary goal of computer
based information should be the processing of data generated by
business operations.
Advantages of Management Information
System

• Management information system helps the managers to make planning and

control decision.

• Facilitated planning

• Minimizes information overload

• Brings coordination

• Makes control easier

• Management information system assembles, processes, stores, retrieves,

Advantages of Management Information
System

• evaluates, and disseminates the information.

• It ensures that appropriate data is collected from the various sources, processed,
and sent further to all the needy destinations

• Management information system helps in strategic planning, management control,

operational control and transaction processing.

• It helps the clerical personnel in the transaction processing and answers their
queries on the data pertaining to the transaction the status of a particular record
and reference on a variety of documents.
Objectives of Management Information
System

• to attain the transaction processing of data of an organization

effectively.

• To make personnel becomes better trained which result in his efficiency.

• Management information system is in making the forecasting and long-

term prospective planning more effective.

• It tries to create a structured database in knowledge base for all the

people in the organization.
Characteristics of Management Information
System

• Management informaton system and top management

• Management-oriented

• Management directed

• Integrated

• Common data flows

• Heavy planning elements

Characteristics of Management Information
System

• Sub-system concept

• Flexibility and ease of use

• Database

• Distributed data processing

• Information as a resource
Management Information System: Planning

• Planning - The top level management is mainly concerned with

strategic planning for example the strategic planning activities of
top management involve future interaction between the
organization and its external environment.
Computational support for planning:

• An analysis of historical data to obtain relationship useful for projection.

• Various projection and forecasting techniques to estimate future value.

• Computations internal to the plan and computation required for outputs.

• Output of the results in a meaningful planning format.

Historical data analysis techniques

• Historical data analyzed to discover pattern or relation that will

be useful in projecting the future value of significance variables.

• Even when the quantitative relations are not sufficiently stable to

use in forecasting data analysis is useful for input into the
judgmental forecast.
Historical extrapolation techniques

• Historical data describes the past planning that involve the future

estimating is generally based on analysis of past history combined

with various technique to generate data for planning purposes.

Financial planning computation

• Models that involve financial plan need to provide for various

computation and analyses commonly required for measuring or

evaluating profitability.
Management Information system: Controlling

• Control of marketing and sales

• Control of production and operations

• Control of inflow of raw materials

• Control of polices and procedures

• Control of employees (middle level and bottom level)

Management Information system: Controlling

• Control accounting

• Control of staff welfare and security

• Control of work performance

• Control of equipment and technology

• Control of flow of information

• Control of customer relationship.

Management Informaton System: Limitation

• Aggression

• Projection

• Avoidance
 DEVELOPMENT OF MANAGEMENT
INFORMATION SYSTEM
STEPS OF SYSTEM IMPLEMENTATION
methods for system implementation

• Install a system in a new operation or organization, one just formed.

• Cut off the old system and install new. This produces a time gap during which no
system is in operation.

• Cut over by segments, this method is also referred to as phasing-in. In the new
system, small parts or subsystems are substituted for the old.

• Operate in parallel and cut over. The new system is installed and operated in
parallel with the current system until it has been check out; then, the current
system is cut out.
Steps in system implementation

• A. Plan the Implementation

The three main phases in implementation take place in series:

• the initial installation;

• the test of the system as whole; and

• the evaluation –maintenance and control of the system.

The first step is plan for implementation that
having the following steps:

• Identify the Implementation Task

• Establish Relationship Among Task

• Establish a Schedule

• Prepare the Cost Schedule ties to Tasks and Time

• Establish a Reporting and Control System

Steps in system implementation

• (B) Acquire Floor Space and Plan Space Layout:

• The installation of a new system to replace a current one may require a major

revision of facilities as well as completely new office, computer room and

production layouts.

• The MIS manager must prepare rough layouts and estimates of particular floor areas

he or she feels needed. The manager should prepare cost estimates for this.
Steps in system implementation

• (C) Organize the Implementation:

• Once the implementation tasks have been defined in the planning phase,

manager usually assigns a project manager to guide the implementation.

• A manager of MIS may assume this responsibility by virtue of a

permanent assignment.
Steps in system implementation

• (D) Develop Procedures for Implementation:

• The project leader has available the network plan for proceeding with the implementation.

• The leader must now call upon key people in the project to prepare more detail procedure for system

implementation.

• The system analyst must develop the procedure for delivering instructions and forms to supervisors, for

coordinating and integrating this very small portion of the MIS with other parts of the manufacturing

system, and for the working out the problem involved.

Steps in system implementation

• (E) Train the Operating Personnel:

• A program should be develop to support management and personnel the nature

and goals of the MIS and to training of operating personnel in their new duties.

• Practical attention should be paid the training of first –line supervisors, then to

professional support personnel like accounting and production personnel and

then operational personnel like clerk etc.

Steps in system implementation

• (F) Computer-Related Acquisition:

Computer related acquisition have the following basic parts :

• Hardware: hardware can be purchased according to requirements of system.
• Software: In small firm the software might be purchased. In large firm with
specialized forecasting, planning, operating and control models most
• software must be developed internally and under contract.
Steps in system implementation

• Personnel: Implementation of an MIS offers the company an

opportunity to upgrade and promotes the personnel after training.
A personnel chart should be prepared showing the number of
individuals are required in terms of skills, the source and the date
they will be required to work.
• Materials: Forms and manuals are the principal materials to be
ordered for the MIS.
Steps in system implementation

• (G) Develop Forms for Data Collection and Information Dissemination:

• A vast amount of detailed data, both external and internal to the company,

must be collected for input to the MIS.

• Forms are required not just for input and output but also for transmitting data

at intermediate stages. So the form should be developed to collect data.

Steps in system implementation

• (H) Develop the Files:

• In the implementation stage, the actual data must be obtained and

recorded for the initial testing and operation of the system.

• This requires a checklist of data, format of data, storage form and

format, and remarks to indicate when the data have been stored.

• .
Steps in system implementation

• The implementation also requires the development of a procedure

for updating each piece of the data and for updating entire
sections of the file s required.

• The translation of specifications for files into computer programs

is the function of computer specialists
Steps in system implementation

• (I) Test the System:

• As each part of the system is installed, test should be performed in accordance with the test
specifications and procedures described earlier.

• Tests during the installation stage consist of component tests, subsystem tests, and total
system acceptance tests.

• Components test may include; equipment - old and new; new forms; new software; new data
collection methods; new work procedures and new reporting formats..

• As more subsystem installed subsystem may be tested.

Steps in system implementation

• (J) Cut-over:

Cut-over is the point at which the new component replaces the old
component or the new system replaces the old system.

This usually involves a good deal of last-minute physical transfer of the

files, rearrangement of office furniture and movement of work stations
and people.

Old forms, old files, and old equipment are suddenly retired.
Steps in system implementation

• (K) Document the System:

• documentation of the system means preparation of written descriptions of the

scope, purpose, information flow components and operating procedures of the
system.

• Documentation is not a frill; it is a necessary –for troubleshooting, for the

replacement of the subsystems, for interfacing with other system, for training
new operating personnel and also for evaluating and updating the system.
MIS INTEGRITY

• Internal Integrity:

How well does the system do what it is supposed to do?

How valid are the system outputs?

How sources is the system against human error, manipulation, sabotage, or

theft.
MIS INTEGRITY

• Procedural Integrity:

• How good is the documentation of the system and procedures?

• Are procedures such that employee are motivated to follow them? How

well are procedures followed in practice?

• What controls ensure that the procedures are followed?

Pitfalls in MIS Development

• (A) Fundamental Weaknesses:

• (B) Soft Spots in Planning:

• (C) Design Problems:

• (D Implementation Problems
System Documentation

• Documentation is any communicable material such as text, video, audio, etc., or

combinations thereof used to explain some attributes of an object, system or procedure.

• It is often used to mean engineering documentation or software documentation, which is

usually paper books or computer readable files such as HTML pages that describe the structure

and components, or on the other hand, operation, of a system/product

Characteristics of Good Documentation

• Clear
• Concise
• Complete
• Current
• Easy to Access
• Correct
• Easy to Search
Types of Documentation

• Printed:

• On-screen Help

• Audio-Visual

• Posters, Leaflets
FUNCTIONALITY OF MIS
MR BARDI PETER
MIS for Marketing (Marketing Information
System )

• Marketing Information System is a continuing and interacting

structure of people, equipment and procedures to gather, sort,

analyze, evaluate, and distribute pertinent, timely and accurate

information for use by marketing decision makers to improve their

marketing planning, implementation and control activities.

Components of Marketing Information
System:

• Internal Accounting System

• Marketing Intelligence System

• Marketing Research System and

• Analytical Marketing System.

How marketing managers can
spot important opportunities and problems.

• The Order Shipping Cycle

• Improving the Timeliness or Sales Reports

• Designing a User Oriented Report System

Note

• The marketing information system should represent a cross between:

• What managers think they need

• what managers really need

• what is economically feasible

MIS for Personnel Management (HUMAN
RESOURCE INFORMATON SYSTEM)

• Personnel management has the primary objective of providing suitable

manpower in number and with certain ability, skills and knowledge, as

the business organization demands from time to time.

• Its goal is to control personnel cost through continuous increase in

manpower productivity
techniques

• Motivation through Leadership and Job Enrichment

• Grievance Handling

• Structuring the Organization

• Promotion and Rewards through Performance Appraisal

• HRM through Training and Upgrading the Skills

Input for Personnel Development

• Productivity Data on the Job

• Industry Data on Manpower, Skills, Qualification

• Bio-Data of Self and Family

• Personnel Application Form

• Attendance and Leave Record

Input for Personnel Development

• Appraisal Form

• Appointment Letter

• Wage/ Agreement

• Record Sources of Manpower, University, Institutes, and Companies

Components of Personnel Information

• Establishment Records

• Recruitment Records

• Personnel Records

• Pensions Records

• Training Records

• Absence records

• Industrial relations records

MIS for Financial Management
(ACCOUNTING INFORMATON SYSTEM)

• Financial management function has a primary objective of

meeting the financial needs of the business.

• The second objective of FM is to meet the statutory compliance by

way of declaring the auditing financial result, submitting reports
and returns to the govt.

• Tax authorities and fulfill the obligations to the shareholders.

tools and techniques used n Financial
Management

• Break Even Analysis

• ABC Analysis

• Ratio Analysis

• Management Accounting

• Cost Analysis.
Input Documents

• Receipts from customers, authorities, employees, shareholders,

financial institution and others.

• Payment to suppliers, authorities, shareholders, financial

institutions and others.

• Data from stock exchange on the shares prices consolidated

financial results of the other companies etc.
Application of Financial Management
Information System

• financial accounting system, which accounts for the financial transactions of the
company and produces financial results for the company.
• It produces balance sheet for the company where the performance of the
company is published in standard format prescribed by the govt.
• The system is made so comprehensive that it not only collects financial data but
also collects data on different matters such as job, department, and division
and so on.
• It forms a basis for certain reports which are required by the top level
management. The users of the financial data base are finance managers, cost
controller, auditors, material managers, marketing managers, company
secretaries and the top management
MIS for Production Management (Production
information system)

• The objective of production management function is to provide

manufacturing services to the organization.

• This involves the manufacturing of products of a certain specified

quality and within certain costs in a stipulated time, fulfilling the
promises given to the customer.
Inputs of Production Management
Information System

• process Planning Sheet

• quality Assurance Rating Form
• Production Schedule
• Process Planning Sheet
• Job Cards
• Finished Goods Advice
Inputs of Production Management
Information System

• Material Requisition
• Customer Order
• Breakdown Advice
• Material requirement
• Production Programme
Components of Production Management
Information System

• Sales department to find out what the customer wants and to

compare this with what the firm can provide.

• Design department to design new requirements and make

modifications in established items either to bring them up to date
or to make them meet a specific requirement of the customer.
Components of Production Management
Information System

• Purchasing department buys the material required at the best possible

price and on the most reliable delivery to make the various items either
on one off basis for individual job or replenish material held in the stores
on maximum and minimum levels

• Manufacturing process sees that the parts are produced as economically

as possible for delivery at the time required by the customer and to
meet the standards set by the design department.
MANAGEMENT AND IMPLEMENTATION
OF ENTERPRISE
INFORMATION SYSTEMS
INTRODUCTION

• An Enterprise Information System (EIS) is any kind of information

system which improves the functions of an enterprise business

processes by integration.
IMPORTANCE OF An Enterprise Information
System

• provide a technology platform that enables organizations to integrate

and coordinate their business processes on a robust foundation.

• used in conjunction with customer relationship management and supply

chain management to automate business processes

• provides a single system that is central to the organization that ensures

information can be shared across all functional levels and management
hierarchies.
IMPORTANCE OF An Enterprise Information
System

• can be used to increase business productivity and reduce service

cycles, product development cycles and marketing life cycles.

• It may be used to amalgamate existing applications. Other

outcomes include higher operational efficiency and cost savings.

IMPORTANCE OF An Enterprise Information
System

• Enterprise systems create a standard data structure and are

invaluable in eliminating the problem of information

fragmentation caused by multiple information systems within an

organization.
Kinds of Information Systems

• Organizational Hierarchy

• Organizational Levels

• Information Systems
Kinds of Information Systems

• Operational-level systems

Support operational managers by monitoring the day-to-day’s elementary

activities and transactions of the organization. e.g. TPS.

• Knowledge-level systems

Support knowledge and data workers in designing products, distributing

information, and coping with paperwork in an organization. e.g. KWS, OAS
Kinds of Information Systems

• Management-level systems

Support the monitoring, controlling, decision-making, and administrative

activities of middle managers. e.g. MIS, DSS

• Strategic-level systems

Support long-range planning activities of senior management. e.g. ESS

An Enterprise Information System covers the
following

• Transaction Processing Systems (TPS)

• Office Automation Systems (OAS)

• Knowledge Work Systems (KWS)

• Decision Support Systems (DSS)

• Executive Support Systems (ESS)

Characteristics of Decision-Support Systems

• DSS offer users flexibility, adaptability, and a quick response.

• DSS operate with little or no assistance from professional programmers.

• DSS provide support for decisions and problems whose solutions cannot

be specified in advance.

• DSS use sophisticated data analysis and modelling tools.

Classification of INFORMATION SYSTEM

• by Organizational Structure

• Departmental Information Systems

• Enterprise Information System

• Inter-organizational Systems

• NYCE

• SABRE or APOLLO
• Classification of IS by Functional Area

• The accounting information system

• The finance information system

• The manufacturing (operations, production) information system

• The marketing information system

• The human resources information system

• Sales & Marketing Systems

• Systems that help the firm identify customers for the firm’s products or

services develop products and services to meet customer’s needs,

promote products and services, sell the products and services, and

provide on-going customer support.

• Manufacturing and Production Systems

Systems that deal with the planning, development, and production

of products and services and with controlling the flow of

production.
Finance and Accounting Systems

• Systems that keep track of the firm’s financial assets and fund flows.

Human Resources Systems

• Systems that maintain employee records; Track employee skills, job performance,

and training; support planning for employee compensation and career development.
• Customer Relationship Management

• Customer relationship management: Business and technology discipline to

coordinate all of the business processes for dealing with customers.

• Supply chain management: Integration of supplier, distributor, and customer

logistics requirements into one cohesive process.

• Supply chain: Network of facilities for procuring materials, transforming raw

materials into finished products, and distributing finished produce to
customers.
HOW INFORMATION SYSTEMS CAN
FACILITATE SUPPLY CHAIN MANAGEMENT

• Information systems can help participants in the supply chain:

• Decide when and what to produce, store, and move

• Rapidly communicate orders Track the status of orders

• Check inventory availability and monitor inventory levels

• Track shipments

• Plan production based on actual customer demand

• Rapidly communicate changes in product design

• Enterprise Systems

Firm wide information systems that integrate key business processes

so that

information can flow freely between different parts of the firm.

• Benefits and Challenges of Enterprise Systems

Benefits
• Firm structure and organization: One Organization
• Management: Firm wide Knowledge-based
• Management Processes
• Technology: Unified Platform
• Business: More Efficient Operations and Customer-driven Business
• Processes
• Challenges

• Daunting Implementation

• High Up-front Costs and Future Benefits

• Inflexibility
Extended Enterprises

• Extended Enterprises: Networks linking systems of multiple firms

in an industry. Also called extended enterprises.

• Vertical industrial networks: Networks for integrating the

operations of a firm with its suppliers.

• Horizontal industrial networks: Networks for linking firms across

an entire industry.
THE MULTIPLE CONCERNS OF THE INFORMATION
SYSTEMS DEVELOPMENT PROJECTS

• A software application.

• Hardware configuration

• Telecommunications network.

• Change management.

• Security and integrity arrangements.

• Arrangements for the effective management of the resulting system.

OVERVIEW OF ENTERPRISE RESOURCE PLANNING
SYSTEM

• From a technology perspective, ERP is the software infrastructure

that links an enterprise’s internal applications and supports its

external business processes. ERP applications are modular, and the

modules are integrated with each other to expand capabilities.

• Enterprise resource planning promises:

• one database,

• one application,

• one user interface for the entire enterprise, where once disparate
systems ruled manufacturing, distribution, finance and sales.
demands placed on the industry:

• Aggressive cost control initiatives

• Need to analyze costs/revenues on a product or customer basis

• Flexibility to respond to changing business requirements

• More informed management decision making

• Changes in ways of doing business.

applications and planning systems That can help
business world cross some of hurdles and achieving
growth:

• Management Information Systems (MIS)

• Integrated Information Systems (IIS)

• Executive Information Systems (EIS)

• Corporate Information Systems (CIS)

applications and planning systems That can help
business world cross some of hurdles and achieving
growth:

• Enterprise Wide Systems (EWS)

• Material Resource Planning (MRP)

• Manufacturing Resource Planning (MRP II)

• Money Resource Planning (MRP III)

CHARACTERISTICS OF ERP

• Flexibility

• Modular & Open

• Comprehensive

• Beyond The Company

• Best Business Practices

FEATURES OF ERP

• ERP provides multi-platform, multi-facility, multi-mode manufacturing multi-

currency, multi-lingual facilities.

• It supports strategic and business planning activities, operational planning and

execution activities, creation of Materials and Resources..

• ERP covering all functional areas like manufacturing, selling and distribution,
payables, receivables, inventory, accounts, human resources, purchases etc.

• ERP performs core activities and increases customer service, thereby augmenting
the corporate image.
FEATURES OF ERP

• ERP provides complete integration of systems not only across

departments but also across companies under the same management.

• ERP is the solution for better project management.

• ERP allows automatic introduction of the latest technologies like

Electronic Fund Transfer (EFT), Electronic Data Interchange (EDI),
Internet, Intranet, Video conferencing, E-Commerce etc.

• ERP bridges the information gap across organizations.

FEATURES OF ERP

• ERP eliminates most business problems like material shortages, productivity

enhancements, customer service, cash management, inventory problems,

quality problems, prompt delivery etc.

• ERP provides intelligent business tools like decision support system, Executive

information system, Data mining and easy working systems to enable better

decisions.
Why Companies Undertake ERP

• Integrate financial information:

• Integrate customer order information:

• Standardize and speed up manufacturing processes:

• Reduce inventory:

• Standardize HR information:
BENEFITS OF ERP

• Gives Accounts Payable personnel increased control of invoicing and

• payment processing and thereby boosting their productivity and

• eliminating their reliance on computer personnel for these operations.

• Reduce paper documents by providing on-line formats for quickly entering

• and retrieving information.

• Improves timeliness of information by permitting posting daily instead of

• monthly.
BENEFITS OF ERP

• Greater accuracy of information with detailed content, better presentation,

• satisfactory for the auditors.
• Improved cost control.
• Faster response and follow-.up on customers.
• More efficient cash collection, say, material reduction in delay in payments
• by customers.
• Better monitoring and quicker resolution of queries.
• Enables quick response to change in business operations and market
• conditions.
• Helps to achieve competitive advantage by improving its business process
BENEFITS OF ERP

• Improves supply-demand linkage with remote locations and branches

• indifferent countries.
• Provides a unified customer database usable by all applications.
• Improves International operations by supporting a variety of tax structures,
• invoicing schemes, multiple currencies, multiple period accounting and
• languages.
• Improves information access and management throughout the enterprise.
• Provides solution for problems like Y2K and Single Monetary Unit (SMU) or
• Euro Currency.
• Definition of BUSINESS PROCESS REENGINEERING (BPR)

BPR is the fundamental rethinking and radical redesign of processes to

achieve dramatic improvement, in critical, contemporary measures of

performance such as cost, quality, service and speed,”

• Business Modelling

First of all, a model consisting of core business processes or activities of

the business is to be developed. This is the diagrammatic representation
of Business as a large system with interconnection of subsystems or
processes that it comprises of.
RISK AND GOVERNANCE ISSUES IN AN ERP

• Single point of failure

• Job role changes:

• Online, real-time:

• Change management:

• Distributed computing experience:

RISK AND GOVERNANCE ISSUES IN AN ERP

• Broad system access:

• Dependency on external assistance:

• Program interfaces and data conversions:

• Audit expertise

• Single sign on:

• Data content quality:

• Privacy and confidentiality: