1 Overview of MIS -317

8/3/2019 1 Overview of MIS -317

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Elements cont

A system is a set of inter-dependent/interrelatedcomponents with an identifiable boundary and whichcollectively accomplish certain objectives/purpose.

An information system is an arrangement that uses theresources of people, hardware, software, data resourcesand communication technology to perform activitiesthat convert data resources into information products.

Information management is application of managementtechniques to collect information, communicate it withinand outside the organization, and process it to enablemanagers to make quicker and better decisions.

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MIS deals with coordination and use of 3 key

resources:

People

Information

Information systems (includes IT)

People use IS to work with information

Primary aim of MIS is thus:

to support the objectives

of the organisation

as driven by competitive pressures and

determined by appropriate business

strategies4


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Definitions of MIS

An information system that integrates data from all

the departments it serves and provides operations and

management with the information they require (PC

magazine) An organized approach to the study of information

needs of management at every level in making

operational, tactical and strategic decisions

http://www.businessdictionary.com

A system or process that provides information needed

to manage organizations effectively

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A system or process that provides information

needed to manage organizations effectively

(wikipedia)

An integrated user-machine system for providing

information to support operations, management

and decision making functions in an organization.The system utilizes computerized and manual

procedures; models for analysis, planning, control

and decision making; and a database (Davis, G.B.

1985. MIS: Conceptual Foundations. Structure

and Development. 2nd ed. New York, NY:

McGraw-Hill)

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Role of MIS

Most common form of management supportsystems.

Provides management with informationproducts that support much of their day-to-day

decision-making needs. The contents of these information products are

specified in advance by managers.

They retrieve information about internal operations

from database that have been updated bytransaction processing systems.

They also obtain data about the businessenvironment from external source.

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MIS principal concerns

Facilitate decision making by supplying the

information needed in an up-to-date and accurateform

to the people who need it

on time

in a usable form

Definition summary

Organization-wide IS

Provides information to all levels of mgnt to

support decision-making

A tool for organizational management

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MIS and decision making

Support business processes &operations (TPS, e.g. payroll,inventory management, etc.)

Support strategies forcompetitive advantage(e.g. EIS)

Support business

decision-making(e.g. DSS)

Operations

Tactical

Strategic

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WHY?

HOW?

A concept of an ISPROCESSES- Planning- Development- Procurement

- Implementation

COMPONENTS- Hardware- Software

- Networks- Data/info- People

OBJECTIVES e.g.- Efficiency & effectiveness

- Managerial decision support- Improved product quality

- Improved service delivery 10


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Classification of ISs Operations support systems (OSS)

Transaction processing systems processbusiness transactions, e.g. Payroll system

Process control systems control industrialprocesses, e.g. Manufacturing system

Enterprise collaboration system team andworkgroup collaboration, e.g. Officeautomation, videoconferencing

Management support systems (MSS)Decision support systems interactive

decision support

MIS

some people classify MIS here 11


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Executive support systems (ESS)

Executive information systems provide

information tailored for ExecutivesIncludes Expert Systems & Knowledge-based

Systems

Examples

Personnel planning

Sales forecasting

Profit planning

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Information Data

Raw facts that describe a particular phenomenon

current temperature, price of a car, customer address,etc

InformationData that has a particular meaning in a specific

contextThe current temperature becomes information if you

are deciding what to wear

Business intelligence

Collective information about your customers (e.g.Sales revenue by product), your competitors, yourbusiness partners, the competitive environment, andyour own internal operations that gives you the abilityto make effectiveand often strategic business

decisions 13

DSS i f d B i


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DSSs are sometimes referred to as BusinessIntelligence Systems as they provide BI to managersto make better decisions

KnowledgeBuilds upon Data, Information, BI

a broad term to describe many things:

Provides contextual explanation for businessintelligence

Points toward actions to take to affect businessintelligence

It can include intellectual assets patents andtrademarks IP

Includes organisational know-how for things suchas best practices, etc

You acquire knowledge in a business or fieldthrough practice over time using information

and intelligence 14


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MIS and Management

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Planning Planning consists of five sequential & interactive steps

selecting objectives;

identification of the activities to achieve objectives;

detailing resources required to undertake activities;

determining the duration and sequence of activities.

Requirements during planning of mostimportance in design & implementation of MIS:providing the information required by the planner at

each step of planning;

establishing procedures for obtaining the information;

arranging for storage of the approved plans, as thesewill provide the information requisite to monitoringand controlling; and

evolving methods for communicating the plans to

employees in the organization. 16


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Monitoring & control Involves

establishing standards of performance in order to

reach the objective;measuring actual performance against the set

standards; and

keeping actions on course by correcting deviations as

they appear (mid-course corrections) Requirements for successful development of a

control system (MIS)defining expectations in terms of information

attributesdeveloping the logic for reporting deviations to all

levels of management prior to the actual occurrenceof the deviation

HRMS captures performance standards & targets foreach employee 17


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Organizing Involves

establishing an organizational structure

establishing channels of communication

defining jobs

coordinating work of subordinates

developing proceduresdetermining resources required

allocating resources

Implications for MIS

HRMS captures org. structure, jobs, performanceplan at employee level

FMS captures resource allocations in budget

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Staffing Involves

determining the people to be hired

recruiting and selecting employeestraining & developing employees

appraising performance to ensure they meetorganization requirements

establishing effective communication within unit& with other related units not under direct controlof manager

Implications for MIS

HRMS addresses recruitment, training needs,training

Enterprise collaboration system addressescommunication across units

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Examples of IS at DifferentManagement Levels

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Transaction processing systems Payroll system

Provides transaction info on an employee paydetails, e.g. Name, dept, designation,employment date, sal, allowances, tax, etc.

TPSs can provide reports useful to otherlevels of management

Line mgnt - Deptal employees, total pay, totalpersonnel emoluments (PE), PE as % of

budget (need to link with budget in FMS)Exec mgnt projections of PE over the next

two years (combine with other info aboutsalary increases, union negotiations, etc.)

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D i i


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Decision support systems Use variety of models to analyze data from

existing applications (e.g. TPS) or condense

large amounts of data into a form useable bymanagers

Are interactive users can change theassumptions, simulate new scenarios and

include new data Example: voyage-estimating system which can

answer following questions: Given customer delivery requirements and an

offered freight rate, which vessel should beassigned at what rate to maximize profits?

What is the optimal speed at which a particularvesel can optimize its profit and still meet its

delivery schedule? 22

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Executive support systems They address non-routine decisions requiring judgment,

evaluation and insight as there is no agreed procedure

for arriving at decisions They

Are designed to incorporate data from externalsources, e.g. Tax laws or competitors

Draw summarized information from other MISs atlower levels of management, e.g. TPS, DSS

Filter, compress and track critical data, displayinginformation of greatest importance to exec. Mgnt

Employ graphical software to provide charts,preferably through a portal

Typical questions for ESS are:

In what business should we be?

What are our competitors doing?

What new acquisitions should we consider toincrease market share? 23

1 Overview of MIS -317

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