MANAGEMENT INFORMATION SYSTEM

ABHILASH KK

ASST.PROF.-M.E DEPT.

BASIC CONCEPTS

Management Information System (MIS) provides information for the managerial activities in an organization. The main purpose of this research is, MIS provides accurate and timely information necessary to facilitate the decision-making process and enable the organizations planning, control, and operational functions to be carried out effectively.

Management Information System (MIS) is basically concerned with processing data into information and is then communicated to the various Departments in an organization for appropriate decision-making.

• The term "MIS" arose to describe such

applications providing managers with

information about sales, inventories, and other

data that would help in managing the

enterprise. Today, the term is used broadly in a

number of contexts and includes decision

support systems, resource and people

management..

DEFINITION

• The MIS is defined as an integrated system of

man and machine for providing the

information to support the operations, the

management and the decision making function

in the organization.

1) Right Information

2) To the right person

3) At the right place

4) At the right time

5) In the right form

6) At the right cost

EXAMPLE

DATA

• Data is a collection of facts, such as numbers, words, measurements, observations or even just descriptions of things

• Types of data

1.Qualitative data

2.Quantitative data

INFORMATION

• It is processed data

• Data processing information

DECISION MAKING

• Decision making is the study of identifying and choosing alternatives to a problem based on values and preferences of the decision maker.

• Decision making is one of the central activities of the management and is the part of any process of implementation

• Three phases- 1. Intelligence 2. design 3.choice

FRAME WORK FOR INFORMATION SYSTEM

• Activities of organization are of three kinds

1.Operational

2. Tactical

3.Strategic

these activities need different information so frame work for information system also designed based on these activities

• A frame work

1.Operational systems –its primary concern is to collect, validate, and record transactional data describing the acquisition or disbursement of corporate records

• Financial data on accounts receivable, account payable, payroll, must be recorded as they occur

• Characteristics of such information are• Repetitiveness• Predictability• Emphasis on the past• Detailed in nature• Internal in origin• Structured form• Great accuracy

2.Tactical systems- second level in the frame work

• Tactical level system provide data for middle level managers• It helps to control and monitor the operations• Data are analyzed and summarized• It provide different records like summary reports, exception reports and ad-

hoc reportsA. Summary reports-provide management with important totals, average, key

data and abstracts on the activities of the organization . eg- sale reports of a week

B. exception reports- which warns the managers when results from a particular operation exceeded or do not meet the expected standard for the organization . Eg- reports on over time hours

C. Ad hoc-reports which need, usually quickly, that may never needed again .it contains the information for a problem solving( eg. Production report of a

particular week )

• Characteristics of tactical information systems are

1. Periodic in nature

2. Un expected findings

3. Comparative in nature

4. both external and internal sources

3. Strategic planning system- it is designed to provide top managers with information that assist them in making long range planning decision for the organization

• Both tactical and strategic information systems may using the same information but needs are different

• Top management uses strategic planning information system for setting the long term organizational goals

Characteristics are a. Ad hoc basisb. Un expected informationc. Summary formd. External datae. Un structured

SYSTEMS

• System is an integrated set of components, or entities, that interact to achieve a particular function or goal

• Every system have boundaries and defines its scope

• Every system have sub- systems

example- business system have sub systems like manufacturing, sales, finance ..etc

In general two types- open and closed

System concept in business

• The system approach is a way of analyzing the business problems

• This approach views the business organization as a system of interrelated parts designed to accomplish goals

• Each sub system is both a self contained unit and the part of a larger system

• manager must understand the goals of the total system and design the function of the sub system to achieve that goal

Information system as a system

• In many ways information system have the same characteristics as system in general

• The major purpose of n information system is to convert data in to information

• In a business context , an information system is a sub system of business system of an organization

• An information system consist of components that interact to achieve the objective of providing information about day-to-day activities that managers can use to control business operations

• It contains elements like soft ware ,hard ware, personnel, database, procedures to accomplish its objectives

Value of information

• Value of information is the amount a decision maker would be willing to pay for information prior to making a decision

Effect of system approach on information system design

• We can explain with an example, an automobile seller who have an objective of better profit

• The enterprise has been organized into sub systems, including the marketing, administrative, service subsystems

• Each sub system have their own duties and head of the department

• For example sales manager(HOD) need an information system to provide feed back on how the system is working ,a data base of sales personnel, day –to-today activity register and other relevant information

• Now we can see that information the sales manager uses to monitor and control the activities of marketing system to achieving the objectives of the business

PROBLEM SOLVING WITH INFORMATION SYSTEM

• The problem is defined as the failure to be in the desired state

• Developing Information Systems Solutions1. The Systems Development Cycle - Systems

Analysis and Design - is a substantial part of the systems development life cycle (SDLC).SDLC - includes the following steps:

• i. Investigation.• ii. Analysis.• iii. Design.• iv. Implementation.• v. Maintenance.

2. Systems Investigation-In this step a business problem or opportunity is identified. Systems investigation includes: (1) systems planning and investigation, (2) feasibility study.

1.Information Systems Planning - needs to be part of the regular business planning process. IS planning helps generate, screen, and select potential IS problems for further development.

2. Feasibility Studies - are preliminary studies that investigate the information needs, objectives, constraints, resource requirements, costs, benefits, and feasibility of a proposed project. Usually a formal feasibility report is given to management for approval before the systems analysis stage can begin

3.Systems Analysis- If management approves the recommendations of the feasibility study produced by the systems investigation stage, then the systems analysis stage can begin.

(A)organizational analysis-which involves an understanding of the following:

Organizational management structure, Business personnel ,Firm personnel ,External business environment, Current IS.

(B)analysis of the present system-input,output ,processin,controlling,storage

(C)functional requirements analysis-The information system capabilities required to meet the information needs of end users (nput,output ,processin ,controlling,storage)

3.Systems Design-

user interface design

Data design

Process design

4.Implementation and Maintenance

Tools in MIS

• A Data Flow Diagram (DFD) is a graphical representation of the "flow" of data through an information system. A DFD is often used as a preliminary step to create an overview of the system, which can later be elaborated. DFDs can also be used for the visualization of data processing (structured design).

• A DFD shows what kind of information will be input to and output from the system, where the data will come from and go to, and where the data will be stored. It does not show information about the timing of process or information about whether processes will operate in sequence or in parallel

Flow charts

• A flowchart is a type of diagram that represents an algorithm, workflow or process, showing the steps as boxes of various kinds, and their order by connecting them with arrows. This diagrammatic representation illustrates a solution model to a given problem. Flowcharts are used in analyzing, designing, documenting or managing a process or program in various fields

BALANCED MIS

• Balanced mis is an approach to performance measurement that combines the traditional financial measures with non-financial measures to provide managers with richer and more relevant information about activities they are managing

EFFECTIVENESS AND EFFICIENCY IN BUSSINESS

• Effectiveness defines the degree to which a goal is achieved.

• Thus a system is more or less effective depending upon

(a) how much of its goal it achieves and

(b) the degree to which it achieves better outcomes than other system do

I

• Efficiency is determined by the relationship between resources expended and the benefits gained in achieving a goal. Expressed mathematically

• efficiency= benefits

cost

Productivity- refers to efficiency of human being

• Profitability –it is the ability of a business to earn a profit. A profit is what is left of the revenue a business generates after it pays all expenses directly related to the generation of the revenue, such as producing a product, and other expenses related to the conduct of the business' activities.

• It doesn’t means if effectiveness increases with increase of efficiency

• Both factors are affected profitability and also it is most important factor among them

REASON FOR IMPLEMENTING NETWORKS

• Sharing peripherals-we can share peripherals like printers , scanners and other and avoid over cost

• Sharing the data files-different data files can be access at a time

• Application sharing

• Capturing the data at its source

• Increasing timely communication

• Reducing the cost of acquiring, installing, and maintaining soft wares

REMOTE ACCESS