MANAGEMENT INFORMATION SYSTEM

by

NIJAZ N

2

MIS

3

WHY INFORMATION?

Has been recognized has one of the crucial corporate

resources which facilitate better utilization of other important

resources such as men, machines, materials, money &

methods.

Proper information at the right time & the right place.

4

DATA & INFORMATION

Data : are raw facts that describe a particular phenomenon.

: Fact – which might take the form of a number, a statement or a

picture.

: Data is the raw material for the production of information.

Information : conclusions that have meaning within a context.

: To become information, data is manipulated through tabulation,

addition, subtraction, division or any other operation that leads to greater

understanding of a situation.

: Usually to help make a decision.

5

INPUT-OUTPUT PROCESS

Input-process-output

6

THE DATA LIFE CYCLE

Stage Example

1. Origination Employee hiring, order supplies, selling a product, issuing stock etc

2. Processing & Immediate Use

Statistical Analysis, categorization

3. Ready access storage Stored in disk drives or storage devices

4. Destruction Deleting old files from storage

7

TYPES OF INFORMATION1. Strategic Information :

Required by Managers at the strategic level.

Relates to long- term planning policies of the organization as a

whole

Eg: New product development, new technology adoption.

2. Tactical Information

Used in management control level.

Short-term planning

Eg: Sales analysis & forecasts, resource requirements etc.

3. Operational Information

Short period (vary from an hour to a few days).

Eg: Work in progress, orders from customers

8

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

9

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

10

WHAT IS AN INFORMATION SYSTEM

Technical Definition :

As a set of interrelated components that collect (or

retrieve), process, store and distribute information to

support decision making , coordination and control in an

organization.

11

WHY INFORMATION SYSTEM?

Today, it is widely recognized that information systems

knowledge is essential for managers.

Most organizations need information systems to survive and

prosper.

Information systems can help companies extend their reach to

faraway locations, offer new products and services, reshape

jobs and workflows,

12

WHY IS INFORMATION TECHNOLOGY IMPORTANT

Personal Productivity:

Increase production without increasing the number of workers.

Helps employees to perform more tasks.

Getting work done faster at lower cost.

Team Work & Communication

Online meetings can reduce the time

13

THE ROLE OF INFORMATION TECHNOLOGY IN BUSINESS TODAY

Business Problems

Business Solution

Information System

Technology

Organization

ManagementLack of Performance

High CostCompetition

New ProductsManufacturing

ModelProduct

DevelopmentNew Technology

Adoption

Model Product & Process

Increase SalesDecrease Costs

14

HOW LONG CAN AN ORGANIZATION OPERATE WITHOUT COMPUTER INFORMATION SYSTEM

0.5 1.5 2.5 3.5 4.5 5.5 6.5 7.5 8.5 9.5 10.50%

20%

40%

60%

80%

100%

120%

96%

84%

70%

56% 52%

28% 26%21% 21% 21%

9%

Source: D O Aasgaard, P P R Cheung, B J Hulbert & M C Simpson, “A Evaluation of Data Processing ‘Machine Room’ Loss & Selected Recovery Strategies”

Days Without Computer

Per

cen

t of

ope

rati

onal

act

ivit

ies

to c

onti

nue

15

THE COMPETITIVE BUSINESS ENVIRONMENT AND THE

EMERGING DIGITAL FIRM

Four powerful worldwide changes have altered the business

environment.

The first change is the emergence and strengthening of the global

economy.

The second change is the transformation of industrial economies and

societies into knowledge- and information-based service economies.

The third is the transformation of the business enterprise.

The fourth is the emergence of the digital firm.

16

EIGHT ENVIRONMENTAL ELEMENTS OF THE FIRM

FIRM

GovernmentFinancial

Community

Customers

Global Communit

y

Suppliers

CompetitorsLabor

Unions Stockholders

Society

17

FUNDAMENTAL ROLES OF IS IN BUSINESS

18

IS MODEL

19

CONTEMPORARY APPROACHES TO INFORMATION SYSTEM

TechnicalApproaches

Opera-tions Re-

search

Sociology

EconomicsPsychology

Management Science

Computer Sci-ence

BehavioralApproaches

20

RISE OF THE INFORMATION ECONOMY All the major industrial powers are being transformed from industrial economies to knowledge-

and information-based service economies, whereas manufacturing has been moving to lower-

wage countries.

In a knowledge and information based economy, knowledge and information are key ingredients

in creating wealth.

Today, most people no longer work on farms or in factories but instead are found in sales,

education, health care, banks, insurance firms, and law firms; they also provide business services,

such as copying, computer programming, or making deliveries.

These jobs primarily involve working with, distributing, or creating new knowledge and

information.

In knowledge and information based economies, the market value of many firms is based on

largely intangible assets, such as proprietary knowledge, information, unique business methods,

brands, and other "intellectual capital”

21

WHAT’S IN A NAME?

A 1983 survey of 334 large organizations identified the following

names used for the information systems function:

Ref: “Information Systems Planning to Meet Business Objectives: A Survey of Practice,” Creasap,

McCormick & Paget, New York, 1983 ,p B-7

Name Percent

Management Information System 33

Information Services 17

Information Systems 14

Data Processing 12

Information Resource Management 3

Others 21

22

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.

Primarily meant for providing information from the data

after processing them.

23

MIS FUNCTIONS/ ROLE

User

UserUser

User

Source

SourceSource

Source

Data Capture

Processing

Retrieval

Storage of Data

Dissemination

24

WHY IS MIS IMPORTANT?

Purchasing

Inventory

Distribution

MIS

Sales Forecasting

CRM

Sales Planning

MARKETING

Planning Personnel Requirement

Analyzing Performance

Salary Administration

HR

Financial Analysis

Income Measurement

Cost Analysis

FINANCE

MANUFACTURING

Production Planning & Scheduling

Cost Control Analysis

LOGISTICS

25

ACTIVITY SUBSYSTEM FOR MIS

Transaction processing , Inquiry Response

MIS for Strategic &

Policy Planning

MIS for Tactical Planning

MIS for Operational Planning & Control

26

ACTIVITY SUBSYSTEM FOR MIS

ACTIVITY SUBSYTEM USES

Transaction Processing Processing of orders, shipments & receipts

Operational Control Scheduling of activities & performance report

Management Control Formulation of budget & Resource Allocation

Strategic Planning Formulation of objectives & Strategic Plan

27

HOW INFORMATION SYSTEMS SUPPORT PEOPLE IN ORGANIZATIONS

28

PHYSICAL COMPONENTS OF MIS

PHYSICAL COMPONENTS

DESCRIPTIONS

Hardware Input & Output devices, Primary Storage, Processor, Communication System etc

Software Application & System Software

Database File, Secondary Storage (CD’s DVD’s etc)

Operations Personnel Computer Operators, System Analysts, Programmers,Database Administrators etc

29

THE WIDENING SCOPE OF INFORMATION SYSTEMS

30

TOWARDS THE DIGITAL FIRM

31

INFORMATION ARCHITECTURE AND INFORMATION TECHNOLOGY INFRASTRUCTURE

32

BUSINESS INFORMATION VALUE CHAIN

33

HOW TO ANALYZE A BUSINESS INFORMATION SYSTEM PROBLEM

1. Identify the problem.

2. What is the solution to the problem?.

3. How will the solution provide value for the organization?.

4. What technologies could be used to generate the solution?.

5. What changes to organizational processes will be required by the

solution?

6. What management policy will be required to implement the solution.