MIS

CBS:- Computer Based systems 1. 2. 3. 4. Inventory system ERP system CRM system MIS(Management information system):- It helps in making decision. It is a software.

Definition:- It is a man machine system that provides information to management people for organizational decision making purpose. It is combination of software & Manpower. In short, the system that provides information to management people is called MIS. Need of MIS:1. Technical Issues (i) Increase in the volume of data and the need to access this data in min time is primary reason for using MIS (ii) To organize a data in a more understandable format. (iii) To make required organizational data available to the appropriate departments people for decision making. (iv) To ensure availability of information to the authenticate user only. 2. Managerial Issues (i) Market competition (ii) Uncertanity of market environment. (iii) Change in alternative options, demand and supply ratios, govt. policies. (iv) Globalization of business policies. (v) Outsourcing of industrial requirements. (vi) Improved transperancy of data among departments. (vii) Better service and support to customer (viii) Controlling the supply chain management system. Contemporary Approches to MIS:(i) Inventory management system

(ii) (iii) (iv) (v) (vi)

Customer relationship management system Ecutive information system Expert systems Enterprise resource planning system Decision support system (Its used by managerial level)

The above mentioned systems are the parallel approaches to management of information for enterprise decision making. Q. What is strategy? Ans. It is scheme or layout to accomplish a task. Q. Information as a strategic resource. The classification of info as a strategic can be done on following criteria: 1. Commercial classification :- Info to maximize sales optimize expenses and minimize losses should be maintained. 2. Technical classification:- software, hardware, network and manpower resources along with the required expertise to achive the organizational goal. 3. Organizational classification:- The vol. and scope of info can differ acc. To the culture, structure and size of organization 4. Logical classification:- the strategy to be designed by using the info can be treated as a high valure or low valure info acc. To its purpose and complexity number of clints maintained by an organization may be a high value info. While the quality of furniture used may bea low value info. Use of info for competitive advantage:The use of infor for achieving edge over the competitior can be motivated by the dominance and profit margins of the co in the market. Following factors ensure competitive advantage by the use of info for the orginasation 1. 2. 3. 4. 5. Reducation in recation time to the market change. Introduction of new alternative to service or product. Performing predictive analysis of an enterprise data for strategy design. Performing strategic design by observing current market situation Deciding investment on organization expense of the technology, manpower and tools.

6. Improving inter departmental communication is the enterprise to maximize performance. MIS as instrument of organization change:Mis ensures following standards for organizational change:1. Maximizing the useage of info for appropriate deparments of the organization 2. Facilitating availability of upto date infor to the targated users of the MIS 3. Improving inter department communication for enterprise decisionmaking. 4. Providing aggregate or collective data for analysis and report generation for management team.

Decision:- Selection of best alternatve for maximum and optimum result.

Charteristics of decision making:(i) (ii) (iii) Decision is taken from two or more alternatives. Decision can be structured or unstructured. Decision can be qualitative or quantitave.

Structured V/s Unstructured decision The decision making process composed of well defined sequence of steps which can be represented as a programming algortitm can be called structured decision making example:- objective question paper with well defined cut off percentage. The process of selecting alternatives based on assumptions or rishs generally including a trade of combination of options can be called on unstructured decision selection of a candidate in an interview is an example of unstructured decision Models of decision making:- Decision making can be mathematically expressed by a well defined and documented model that describes the components involved as a quartified variable. Simons Model:- Simon has suggested a decision making model for humans by defining decision making as a step process. These steps are also known as factors or stages of simons model.

First stage Intellegence:- It deals with the problem identification and data collection regarding the problem. Any change in the standards for the on going process will be covered by this stage. Second stage design:- It deals with the generation of alternative solutions for the problem by analyzing and evaluation the collected data in the previous stage. The evaoluation of data is performed by quantitative tools and model to achieve optimum solutions Third stage Choice:- It covers selection of the best solution from best alternative solution on the basis of some criteria.
Intellegence

Insufficient Data
Design

Choice

No satisfactory solution

Kahne Man and tverskys model of decision:It is a two staged model of decision making that involves decision making that involves decision making under risk with possible outcomes listed in the order of priority based upon some assumption. This model starts working from a selected reference point. All the results achieved below the reference point areconsidered loss and the results achieved above are called gain. The result maximizing the profit value is selected. This model is applied in economics psychology risk analysis etc.
GAIN

RP PP Loss

Tools and techniques of Decision making:- Various mathematical theories and formulae can be used for decision making by use of computer programs. 1. What it analysis:- Outcomes of every planned decisions are analyzed in advance and outcome with best possible effect is implemented. 2. Pay-off analysis:- a tabular structure called a pay off matrix is generated in this process. Here, the rows display the alternatives and the columns display the conditions with the probability of occurance of a certain decision. This matrix is a visual interpration of the what it analysis when quantitave data set is available. Pay Off Matrix Decision Alternatives No. Change in price Increase in price Decrease in price Decision probability 5 1 4 Expected gain 540 470 860

Decision tree analysis:- In situation of making multiple decision the decision tree analysis is a useful approach for selecting a set of decisions. This approach is useful to visualize a series of decision having alternatives paths with associated probability and estimated expenses for each path

C 500 A =1000 D 600 E 700 Start >1000 F 800

[S,A,C] [S,B,F] S,A,C,

B >1000

G 900 H 105

Types of Information