Management Information System

Trends in Business and Management

          

Blurring of industry boundaries Deregulation of industries Faster pace of business Increasing foreign competition Global Business Community An Information Society Increasing complexity of management Interdependence of organization units Improvement in productivity Availability of computers of end users Recognition of information as a resource

Important Activities in Business



Problem Solving Decision Making

Methods of Decision Making
 

Matrix Decision Tables Flowchart Decision Tree Pseudo Code

Pairs of conditions and actions Section from set of actions conditions in the form of rule. Selection of Path If-Then form

  

Components of Problem Solving Process

Problem Solving Process

Gather intelligence about Problem

Develop alternative

Select an alternative

Implement the solution

Monitor situation & results

Choice Selection Process

Decision Making Process

IS and Problem Solving Stages

Gather intelligence about Problem Develop alternative Select an alternative Implement the solution Monitor situation & results

Expert Systems Existing Information System (TPS, MIS) Engineering Systems Graphic Systems

Spread Sheet Programs Statistical Packages Financial Management Packages

Project Management Software Personal Database Application

Existing & New Information System

Information System


An Information System is a set of people, data and procedures that work together to provide useful information.

Vision of Role of IS
 

Information Technology Vision Strategic Business Vision

Enter New Industry

Creating new business opportunities; New Products New Services

BUSINESS VISION
Information System Capability enables Business Vision Improved performance in current industry

Hardware

Software

Data

Data Communication

Combined knowledge of Business Environment & Information System

Business Environment

Activities in Information System

Input of Data Processing Procedures Reports
Sales Analysis Sales history Inventory Report Customer History

Sales Details Payment Details Sales Returns Adjustments

Document Database
Customer Data Sales Data Inventory Data

Different Types of IS


Transaction Processing System

Process data about transaction.

Management Information System

Provides information for decision support where information requirement can be identified in advance.

Decision Support System

Assist managers with unique strategy decisions that are relatively unstructured.

Different Types of IS


Executive Support System

Assists Top-level executives in acquiring & using information needed to run the organization.

Work-group Support System

Assists and supports managers, staff and employees in carrying out day-to-day activities.

Expert System
Use of computer programs to store facts & rules to mimic the decision of human expert.

Benefits of IS


Gain in Productivity
Increase in efficiency of the task. More work completed with same or fewer resources.

Improvement in Effectiveness
Doing the right thing. Utilization of resources to produce desirable results of high quality.

Gain in Competitive Advantage

Selecting & implementing strategies that changes the way a firm competes. Improved performance in comparison o market competitors using chosen criteria (e.g. market share, industry dominance, industry ranking, etc.).

Value Addition by IS
Facilitates Business Process in Operations management & Strategic Planning PROCESS Increasing Process Quality & Product Quality though improvement & innovation

Enhance Product characteristics & product delivery

PRODUCT

QUALITY

Information System Application

Information System Application ESS ES WGS
DATA H/W S/W

TPS DSS MS
Communication

Information System Customer

Human Mgmt Resources

Organization Structure Regulatory Agencies

Competition

Supplies

Information System environment

Management Information Differ by Level in the Organization

Proportion of Information Types Needed Comfort Information Status Information Warning Information Planning Information Internal Operation Information External Intelligence Externally Distributed Information Top Management & Executives Factual Details Exception Reports Financial Accounting Information Management Accounting Information Internally Oriented Information

Operating & Lower Level Managers

Common Type of MIS Output

      

Printed Output Visual Output Graphic Output Secondary Storage Output Microfilm Output Audio Response Output Plotter Output

Problems in Development of MIS



Major Problems
Lack of Top Mgmt involvement in planning and Design phase. Cost & Complexity of using a Database Management System. Inadequate pre-system planning. Recruiting qualified computer specialists. Inadequate strategy for extending MIS to other part of the company.

Problems in Development of MIS



Moderate Problems
Cost of proposed computed application outweigh their economic benefit. Integrating the computer with the rest of the company. Availability of computer programs and operating systems. Employee resistance towards the MIS Planning what job to automate; availability of instructional material Proposed computer application are too time consuming to automate Management resistance towards MIS

Problems in Development of MIS



Minor Problems
Management acceptance of the computer Role of System Analysts/Designers not clearly defined. Reliability of computers and related equipment. Management of computer and related equipment.

Guidelines for overcoming problems



Ensure that MIS is truly modified to meet user objectives, not just self serving interest of MIS staff. MIS staff should insist on the meaningful involvement by management and corporate management as well. Ensure that the user involvement in agreed upon before any work on MIS takes place. Ensure that user both understands and accepts full responsibility & commitment towards the ultimate success of the MIS project.

Guidelines for overcoming problems



Ensure that user involvement is active and not passive, and maintained throughout the development of MIS Ensure that schedules are realistic and accurately reflect not only the MIS staff ability, but also that of the user to participate in the development of MIS Ensure that MIS staff understands the importance of observing commitments & maintaining quality.

Guidelines for overcoming problems



 

Ensure that user management is constantly informed about the MIS projects, that the communication channels are kept open at all the times. Involve Top Management from an overall standpoint in the planning phase as well as succeeding phases of the MIS project. Provide adequate pre-system planning that focuses on getting started on MIS project Get appropriate functional managers & their personnel involved in the detailed aspects of the MIS project

IS in Strategic Planning
Information Systems Capabilities, Applications, Personnel, Hardware, Software, Data, Communication

No consideration of Strategic Impact: IS & Plans are separate

Used to implement Strategic Plans: Considered after plans are formulated

Considered in formulation of Strategic Plans: Considered before formulation of plan is completed.

IS for Corporate Strategy



Determination of strategies by corporate executives Need of Information System in identified IS plan is formulated to assist in implementing the Organization Strategy.

IS for Corporate Strategy: Areas



The industry in which the firm now competes New Product or Service Improved Production economies Improved Delivery capabilities New Markets the firm can enter Geographic expansion of market Expansion into new market segments Industries in which the firm can begin competing Offer services & products in industry to which firm has been supplier Create new industry The elements with which firm interacts or that influence it Customers, Suppliers, Regulators, Competitors

Integrated Information System



System that has module for each functional subsystem of the enterprise & implement all the management activities within each module.

Integrated IS framework
Subsystem Software Modules Strategic Planning Management Control Operation Control Transaction Control
Applica -tion Software

Model Base

DBMS

Private Data

Private Data

Private Data

DBMS

Major Modules of a Information System Project



Feasibility Study Determines the appropriateness of making a system change

Introductory investigation Structured analysis Structures System Design Equipment Selection

Major Modules of a Information System Project



System Implementation: Provides the user with a fully operational system

Training of Personnel Structured Programming & Compiling Structured Walkthroughs & Testing Parallel Operations for checking the new system Final Conversion to new system

Periodic Review: Ensures that the system continues to meet users needs effectively.

Characteristics of a well designed MIS



Acceptability
Relates to approval of MIS by personnel who will use it. To improve acceptability user should participate in the development of MIS.

Design Making ability

Refers to the capability of MIS to produce timely, pertinent information, facilitating the decision making process of organization personnel, at the lowest cost.

Economy
Centers on keeping costs low by capturing control information in the MIS as near to the source as possible.

Characteristics of a well designed MIS



Flexibility
Focuses on the capability of MIS to adopt to changing environmental conditions likewise, organization personnel must be prepared to adjust their operations to changing conditions.

Reliability
Refers to the consistency of MIS to control operations. A high degree of reliability can be designed into the system by incorporating good control.

Simplicity
Stresses the capability of the MIS to provide a straight-line flow from one operation to the next, thereby avoiding needless backtracking and duplication.

The System Life Cycle



Inception
Preliminary Survey

Feasibility Study
Existing Procedures Alternative System estimates

System Analysis
Details of present procedures

The System Life Cycle



Requirement Analysis
User Needs Collection of Data on volumes, input/outputs, files, boundary settings

Design
Ideal System unconstrained revision to make ideal acceptable

Specifications
Processing logic, File Design, Input/Output, Programming requirement, Manual Procedures

The System Life Cycle



Programming & Testing Unit Tests, Combined Module Tests, Acceptance Tests Training, Conversion & Installation Operation
Maintenance & Enhancements

Tools for a S/w Project



Data Collection Tools:

Observation Interviews Questionnaires Comparisons Seminars Presentations

Block Diagram
Environment Organizations Managers Users IS Dept Society Profession

Applications Transactions Managerial Strategic Office Comm. Expert System DSS Executive IS WGS

Alternatives Generators Non-procedural Languages Packages Prototyping End User Programming

Analysis & Design Process Survey & Feasibility Study Analysis Specification User Interface Documentation Project Management

Building Blocks Architecture Tools Databases Communications CASE Acquisition of Technology

References


Information Systems for Modern Management 3ed Robert G Murdic, Joel E Ross, James R Colggett PHI Management Information System Gerald V Post, David L Anderson TMH Management Information System Mc-Lead Management Information System Kroonke Macmillan Publishing Management Information System Senn Analysis & design of Information System Senn Software Engineering 3ed Pressman