MANAGEMENT INFORMATION
SYSTEMSAn Introduction
Session: 2014-15 Trimester III
Objectives
MIS, 2015
The Role of Information Systems
MIS : A concept, its importance
Management: What is management?
Information: What is information?
Systems: What are systems?
Definition of MIS
The Role of Information systems
MIS, 2015
Information Systems are Transforming Business
Technology, to a large extent, has driven organizations to
change the way they operate and that includes the way
they manage
Increase in wireless technology use, Web sites
Shifts in media and internet advertising
Globalization challenges and opportunities
Internet has drastically reduced costs of operating on
global scale
The Role of Information systems
MIS, 2015
In the emerging, fully digital firm
Significant business relationships are digitally enabled and mediated
Core business processes are accomplished through digital networks
Key corporate assets are managed digitally
Digital firms offer greater flexibility in organization and management
Time shifting, space shifting
The Role of Information systems
MIS, 2015
Strategic Business Objectives of Information Systems
Business firms invest heavily in information to
achieve six strategic business objectives:
Operational excellence
New products, services, and business models
Customer and supplier intimacy
Improved decision making
Competitive advantage
Survival
MIS : A Concept
MIS, 2015
MIS acronym of three words
Management
Information
System
Management
MIS, 2015
What is management?
Management is an art of getting things done through
others to achieve certain objectives of the organization.
It involves:
Planning
Organizing
Staffing
Directing
Controlling
Management: What is management?
MIS, 2015
Planning
Setting Goals and objectives
Setting time period for the plan
Lay down Polices, procedures, rules, programmes
Forecasting
Budget
Organizing
Analyzing the activities to be performed
Dividing the jobs into subtasks
Allocating and Delegating Authority
Management: What is management?
MIS, 2015
Staffing
Putting right person at the right place
Training and development
Delegation of responsibilities
Directing
Leadership
Motivation
Communication
Management: What is management?
MIS, 2015
Controlling: Resources- Money (capital),
manpower (people), materials, machines,
movement (Distribution, flow), and Information
Fixing standards
Measuring actual
Evaluating
Reporting
Taking corrective action
What Managers do?
MIS, 2015
According the French management theorist, Henri
Fayol, managers perform five major functions.
They plan what they are to do
They organize to meet the plan.
They staff their organization with the necessary
resources.
They direct the available resources to execute the plan.
Finally, they control the resources, keeping them on
course.
Management Hierarchy
MIS, 2015
Strategic Management
Management Control
Operational Control
Information
MIS, 2015
What is information?
A definition: Information is data that has been processed
into a form that is meaningful to the recipient (USER)
and is presented in a form which assists decision makers
It may contains----
an element of surprise
reduce uncertainty or
provoke a manager to initiate an action
MIS, 2015
Transforming Data Into Information
Data Inputs Information Outputs
Capture
Manipulation
Storage
Provision of Access
at User Location
External
Data
Internal
Data
Information System
Query Response
Decision Outcome
Expert-System Advice
Transaction Document
Report
Organization
Environment
Information sources
External Information
Govt. polices
Economic trends
Availability and cost of various resources
Competitors activities
Customer feedback
Internal Information
Sales forecast
Financial resources and plans
Capacity utilization pattern
Personnel utilization pattern
Budget allocation and utilization
MIS, 2015
Information needs
MIS, 2015
Information needs of different management levels
Top Management:
Unstructured,
Non-programmed,
Futuristic,
Approximate,
External
Operating Management:
Structured,
Programmed,
Historical,
Exact,
Internal
Characteristics of Information
Relevance
Timeliness
Accuracy
Completeness
Summarization
Reliability
Validity
Consistency
Age
Impartiality
Frequency
Cost-benefit Analysis
MIS, 2015
System
MIS, 2015
A definition of a system:
A system is a set of interrelated components
(subsystems or elementary parts) that
operate together to achieve a common
objective (or multiple objective).
Business is also a system
Systems Concepts
MIS, 2015
General Model of a System:
Input, process and output.
Elements of a system define its boundary
The system is inside the boundary and the
environment is outside the boundary.
Boundary depicts the scope of activities.
Systems Concepts
MIS, 2015
A system is composed of subsystems
The interconnections and interactions between the
subsystems are the INTERFACES.
Example of a system: An information system:
subsystems: PC Monitor, PC software, PC hard disk,
User.
System and its subsystem
MIS, 2015
Management Information Systems
MIS, 2015
Management Information Systems
Definition: A Management Information system is:
an integrated user-machine system
for providing information
to support the operations, management, analysis, and decision making functions
in an organization
The system utilizes
Computer hardware & software
Manual procedures
Models of analysis, planning, control, and decision making and
a database.
Management Information Systems
MIS, 2015
MIS can provide managers with information in a
usable from.
A MIS is a formal Information network using computers to
provide management information for decision making
The goal of MIS is to provide the correct information to
the appropriate manager at the right time in a useful
form.
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