Management Information System

   

The management information system (MIS) is a concept of the decade or two. It has been understood and described in a number of ways. It is also popularly known as the information system. The information and decision system, the computer based information system.

Meaning

MIS

Management

Information

System

Management Information System is defined as

     

An integrated user machine system, for providing information, to support the operations, management analysis and decision-making functions. The system utilizes computer hardware and software, manual procedures, models for analysis, planning, control, decision making and database.
-Gordon B. Davis

A Framework for Business End Users

Management of IS
Resources and Strategies

Development of IS
Solutions to Business Problems

Applications of IS
To Operations, Management, and Strategic Advantage

Technology IS
Hardware, Software, Networks , and Data Management

Foundation Concepts of IS
Fundamental Behavioral and Technical Concepts

Information System Resources

People

Data

Software

Hardware Networks

Operations and Management Classifications of Information Systems

Information Systems

Operations Support Systems

Management Support Systems

Transaction Processing Systems

Process Control Systems

Enterprise Collaboration Systems

Management Information Systems

Decision Support Systems

Executive Information Systems

 The

MIS is a strategy which provides the information for making decisions regarding the integration of the organization through the process of management.
-Robert G. Murdrick

 Management:

It is the process by which managers create, direct, maintain and operate purposive organization through systematic, coordinated cooperative human effort.

Information: Information consists of data that have been retrieved, processed or other wise used for informative or inference purposes, argument or as a basis for forecasting or decision making.

System: System can be described simply as a set of elements joined together for a common objective. Example: organization is a system, and the parts are divisions, departments, units etc. are subsystem.

MIS COMPONENTS

   

Data gathering Data entry Data transformation Information utilization

FUNCTIONS OF AN MIS

  

Collect data Store and process data Present information to managers

CHARACTERISTICS OF MIS

MIS is management oriented  Management directed  Integrated system  Avoids redundancy in data storage  Avoids redundancy in data storage


Common data flow  Heavy planning element  Subsystem concept  Common database  Flexibility  Computerization


Role of MIS


The role of MIS in an organization is compared to the role of heart in the body. The information is the blood and the MIS is the heart. MIS satisfies the diverse needs through a variety of systems such as query system, analysis system, modeling systems and DSS. MIS helps the clerical persons in the transaction processing and answers their queries on the data pertaining to the transaction, status and reference on a variety of document.

The MIS helps the junior management personnel by providing the operational data for planning, scheduling and control, and help them further in decision making at the operations level to correct an out of control situation.

The MIS helps the middle management in short term planning, target setting an controlling the business functions. The MIS helps the top management in goal setting, strategic planning and evolving the business plans and their implementation.

MIS plays the role of information generation, communication, problem identification and helps in the process of decision making. The MIS, therefore, plays a vital role in the management, administration and operations of an organization.

Impact of MIS


MIS creates an impact on the organizations functions, performance and productivity. With good MIS support, the management of marketing, finance, production becomes more efficient.

MIS helps the manager to be alert by providing certain information indicating the probable trends in the various aspects of business. The managers attention is brought to a situation which is exceptional in nature, inducing him to take an action or a decision in that matter.

 

MIS creates another impact in the organization which relates to the understanding of the business itself. The MIS begins with the definition of a data entity and its attributes. MIS calls for a systemization of the business operations for an effective system design. Since the goals and objectives of the MIS are the products of business goals and objectives, it helps indirectly to pull the entire organization in one direction towards the corporate goals and objectives by providing the relevant information to the people in the organization.

Each age has its own tool. The New Economys central tool is Information Technology just as automation was the central tool for the Industrial Revolution

The need to master the use of Information Technology in the broader sense of Information and Communication Technologies is not negotiable, its the worlds direction Information Technology is multidisciplinary and you need to identify the portion you wish to swim in

Information Sciences, Telecommunications, Networks, Computing and Emerging Technologies have converged to provide this generation with a tool with which we can acquire appropriate skills, e.g leadership

The Internet remains the worlds largest library, encyclopedia and resource centre rolled into one. Explore it, study the content, meet with the living and the dead who lived your dream, and shorten the distance between you and knowledge Dont just get, give. Contribute your own quota to the worlds pool of leadership skills by uploading content to the web.

Introduction to e-Commerce


It is most commonly associated with buying and selling information, products, and services via the Internet, but it is also used to transfer and share information within organizations through intranets to improve decision-making and eliminate duplication of effort. The new paradigm of eCommerce is built not just on transactions but on building, sustaining and improving relationships, both existing and potential.

Web surfing brings each eCommerce (Electronic Commerce) site and its product or service into the home, office, room or palm of the client and orders can be placed with the click of a mouse or the push of a key. Personal identification, customer preferences and a sophisticated database of customers can be monitored to provide tailored or customised services to clients. Electronic Fund Transfer (EFT) makes it possible for transaction to be completed with payments carried our real-time and online.

THE CHARACTERISTICS OF INFORMATION

   

Quality Timeliness Completeness Relevance

Data, Information and Systems

Data & Information Systems



What Is a System?
System: A set of components that work together to achieve a common goal Subsystem: One part of a system where the products of more than one system are combined to reach an ultimate goal Closed system: Stand-alone system that has no contact with other systems Open system: System that interfaces with other systems

SYSTEMS

System is defined as a set of elements arranged in an orderly manner to accomplish an objective. The term system is generally used for a group of actions, personnel and procedures, used for processing data. In general, it is a set of related activities which may or may not involve computers.

Data & Information Systems

Figure 1.3 Several subsystems make up this corporate accounting system.

Data, Information, and Systems



Information and Managers

Systems thinking


Creates a framework for problem solving and decision making. Keeps managers focused on overall goals and operations of business.

Data, Information, and Systems

Data, Information, and Systems



The Benefits of Human-Computer Synergy

Synergy


When combined resources produce output that exceeds the sum of the outputs of the same resources employed separately

Allows human thought to be translated into efficient processing of large amounts of data

Data, Information, and Systems

Figure 1.6 Components of an information system

Data, Information, and Systems



The Four Stages of Data Processing

Input: Data is collected and entered into computer. Data processing: Data is manipulated into information using mathematical, statistical, and other tools. Output: Information is displayed or presented. Storage: Data and information are maintained for later use.

Why Study IS?



Information Systems Careers

Systems analyst, specialist in enterprise resource planning (ERP), database administrator, telecommunications specialist, consulting, etc.

Knowledge Workers
Managers and non-managers Employers seek computer-literate professionals who know how to use information technology.

Computer Literacy Replacing Traditional Literacy

Key to full participation in western society

Ethical and Societal Issues

The Not-So-Bright Side


Consumer Privacy
Organizations collect (and sometimes sell) huge amounts of data on individuals.

Employee Privacy
IT supports remote monitoring of employees, violating privacy and creating stress.

Ethical and Societal Issues

The Not-So-Bright Side


Freedom of Speech
IT increases opportunities for pornography, hate speech, intellectual property crime, an d other intrusions; prevention may abridge free speech.

IT Professionalism
No mandatory or enforced code of ethics for IT professionals--unlike other professions.

Social Inequality
Less than 20% of the worlds population have ever used a PC; less than 3% have Internet access.

NEED FOR INFORMATION

   

To improve representation of an entity To update the level of knowledge To reduces uncertainty To aid in decision making, planning and control

ORGANIZATION AND INFORMATION

EXTRNAL LOW

TOP MGMT
SOURCES OF INFORMATION

MIDDLE MGMT OPERATIONAL MGMT

STRUCTURED INFORMATION

INTERNAL

ORGANIZATION STRUCTURE

HIGH

The Traditional Organizational Pyramid

Characteristics of Information at Different Managerial Levels



Data Scope
Amount of data from which information is extracted

Time Span
How long a period the data covers

Level of Detail
Degree to which information is specific

Characteristics of Information at Different Managerial Levels



Source: Internal vs. External

Internal data: collected within the organization External data: collected from outside sources


Media, newsletters, government agencies, Internet

Characteristics of Information at Different Managerial Levels



Structured and Unstructured Data

Structured data: numbers and facts easily stored and retrieved Unstructured data: drawn from meetings, conversations, documents, presentations, etc.


Valuable in managerial decision making

Characteristics of Information at Different Managerial Levels

Characteristics of Effective Information



Tabular and Graphical Representation

Certain information better presented graphically
  

Trends as lines Distributions as pie charts Performance comparisons as bar charts

Many people prefer tabular data for complex problem solving

Tabular and Graphical Representation

On-line Analytical Processing (OLAP)



Cube of tables showing relationships among related variables Operates on specially organized data or on relational database data Easily answers questions like What products are selling well? or Where are the weakestperforming sales offices? Faster than relational applications

OLAP (Cont.)

OLAP (Cont.)

Business Intelligence


Generate quickly figures and ratios about store sales, inventory, profitability, category reviews and more Tracking information for operations as well as for sales and marketing use

Dynamic Representation


Data presented in real time Includes moving images representing speed or direction Changing colors represent rate of change Use expected to grow

Managers and Their Information Systems

Types of organization
  

Functional organization Project organization Matrix organization

INFORMATION SYSTEM Information system are a set of people, procedures and resources that collects, transforms and disseminates information in an organization or a system that accepts data resources as input and process them into information products as output.

Information system is a system that uses the resources of hardware, software and people to perform input, processing, output, storage and control activities that transform data resources into information products.

Organizational Structure


IT Flattens the Organization

Eliminates middle managers

The Matrix Structure

People report to different supervisors, depending on project, product, or location of work More successful for smaller, entrepreneurial firms IT supports matrix structure
Easier access to cross-functional information

The Matrix Structure

SYSTEMS

System is defined as a set of elements arranged in an orderly manner to accomplish an objective. The term system is generally used for a group of actions, personnel and procedures, used for processing data. In general, it is a set of related activities which may or may not involve computers.

COMPONENTS of a system
INPUT PROCESS
ENVIRONMENT

OUTPUT

INPUT

PROCESS

OUTPUT

FILTER

Generalized Model of a System

TYPES OF SYSTEM
     

Sub system Black box system Closed system Open system Deterministic system Probability system

Attributes of Information
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Accuracy in representation Complete in content Form of presentation Frequency of reporting Scope of coverage Sources of collection Time dimension: Past, current & future Relevance & utility for DM On time when needed Just in Time

Fundamental Roles of IS in Business

Business: A system of systems

Purchasing Distribution Management & Administration Receiving

Collection

Inventory

Billing Sales Business: System of Systems

Production

Organizational Levels and Functions

Four Major Types of IS