Management Information System

Session 1

What is in store in MIS Course?

THEMES
Information Technology Enterprise Systems E-Business Business Process Decision Making

Information Technology
Hardware and Software Enabling the enterprise systems and ebusiness applications of the organization Necessary for security, privacy and internal control Business professional need to be aware of the latest available technology to evaluate them.

Enterprise Systems
Sharing of data across the organization Functional Modules
Accounting Manufacturing Human Resources Logistics

Integrated software packages

E-Business
Application of Electronic Networks to undertake business processes. Has created entirely new ways of working within and across organizations Buying and selling of goods at virtual market places

Business Process
Any process that makes the business work.
A business process is an activity or set of activities that will accomplish a specific organizational goal.

A business process is a collection of related, structured activities or tasks that produce a specific service or product (serve a particular goal) for a particular customer or customers. It often can be visualized with a flowchart.

What is in store today?

Concept of Data, Information What is Information Systems? Purpose of Information Systems Decision Making - The Business Environment Foundations of Information Systems in Business Creating Information, Sources of Information Organizations and IS Role of IS in Business & Management Managerial challenges of IT Digital Enterprises, Web-Powered Enterprises Information Systems in global business today

What is Information System?

Lets watch a video

The Purpose of Information Systems

Businesses use information systems
To make sound decisions To solve problems

Problem is any undesirable situation Decision arises when more than one solution to problem exists

The Purpose of Information Systems (continued)

Problem solving and decision making require information Keys to success in business are
Gathering correct information Storing information Using information

Generating Information
A process is manipulation of data Process usually produces information Process may produce more data A piece of information in one context may be considered data in another context

Concept of Data
Data are raw facts or observations that are considered to have little or no value until they have been processed and transformed into information. Examples??
- Todays Date - Marks in a quiz - Records of a business transactions

Information is Critical
The information we have is not what we want The information we want is not the information we need The information we need is not available.

Information is a Resource
It is scarce It has a cost It has alternative uses There is an opportunity cost factor involved if one does not process information

Data, Information and Systems

Generating Information Computer-based ISs take data as raw material, process it, and produce information as output.

Input-process-output
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Why need Information?

To ensure effective and efficient decision making leading to prosperity of the Organization.

Data vs. Information

A house number A bank statement The number 3.142 A National Insurance number A balance sheet A bus timetable A car registration plate A student grade sheet A temperature reading in the days weather

Data vs. Information

A house number - Data A bank statement Information The number 3.142 Data A National Insurance number Data A balance sheet Information A bus timetable Information A car registration plate Data A student grade sheet Information A temperature reading in the days weather Data

Information Creation
Classifying
Categorizing Data

Rearranging / sorting
Group data in a particular order

Aggregating
Summarizing data. Average, subtotals, total

Performing Calculations
Employee pay slip

Selection
Choosing or discarding data on the basis of a condition / criteria.

Decision Making
A step in problem solving Intelligence gathering
Definition of problem Data gathered on scope Constraints identified

Design phase
Alternatives identified and assessed

Choice
Selection of an alternative

Scorecard / Dashboard

IS, IT in a Firm and Business Environment

Business Environment Company

IS IT

What is MIS?
Short for Management Information System MIS refers broadly to a computer-based system that provides managers with the tools for organizing, evaluating and efficiently running their departments.

Currently also defined as Management Information (MI) & System (S)

MIS Definition
System that provides information support for decision-making in the organization Integrated system of people, processes, hardware and software (now Internet) to provide information to support operations, the management and the decision-making function in the organization.

Role of MIS in an Organization

Appropriate data collected from various sources, processed and sent further to the needful destinations
Support business processes and operations

Helps in Strategic Planning, Management Control, Operational Control, Transaction Processing

Support strategies for competitive advantage

Information generation, communication, problem identification, and aid decision making

Support decision making by employees and managers

IS - First Order Effect

Outcomes that arises as a direct consequences of the implementation of an IS known as the first order effect Can be negative or positive

IS - Second Order Effect

Increased use of IS may lead to further changes over a period of time. It may improved decision making, processes are easier to manage, customers have lesser complaints. These may not be visible / measurable immediately.

IS Third Order Effect

Large scale consequences of implementation of IS. Competitive pressure may force firms to adapt a particular type of IS.

Examples for IS? (sans computers)

Card catalog in a library Your books, bag, day planner, notebooks An physical / manual accounting ledger

Business Environment
That influences the way in which the organization operates. Dynamic External and internal Other factors of IS
Purpose Inputs Outputs Boundary

External Business Environment

The Internet Economy Global Market place Business Ecosystems De-capitalization Faster Business Cycles Accountability and Transparency Rising Societal risks of IT

Internal Organization Environment

From Supply-Push to Demand-Pull Self-service Real-Time Working Team-Based Working Anytime, Anyplace information Outsourcing and strategic alliances Demise of Hierarchy

Business Drivers To IS Foundations

The Internet Economy Global Market place New products, services, and business models: Information systems and technologies create opportunities for products, services, and new ways to engage in business. Customer and supplier intimacy: Improved communication with and service to customers raises revenues, and improved communication with suppliers lowers costs

Business Ecosystems

Real-Time Working Team-Based Working Anytime, Anyplace information Demise of Hierarchy

Operational excellence: Efficiency, productivity, and improved changes in business practices and management behavior
Competitive advantage: Implementing effective and efficient information systems can allow a company to charge less for superior products, adding up to higher sales and profits than their competitors. Also for survival.

Outsourcing and strategic alliances Faster Business Cycles

Foundations of IS in Business
Amazon Dell IRCTC e-Bay HUL HDFC, ICICI, SBI, Citibank et al

Goals of new work environment

Leverage knowledge globally Organize for complexity Work electronically Handle continuous and Discontinuous Change

Case - Tata Motors

What does Tata Motors use its IS for? Relate the Business ecosystems driver discussed in class with the case. What is the system used to manage the suppliers and vendors? List the advantages of such a system. Quickly draw a workflow how the system works How does the IS help in managing the marketing channel? Discuss the first, second and third order effect of the Tata Motors IS. What are the challenges faced by the IS manager(s) of Tata Motors?

Managerial Challenges
What Information Systems to build? How much to spend on Information systems? What level of capabilities should be created with Information Systems? How centralized should the services be? What are the security levels are required? What is the technology road map for organization?