Download - Mis for share

Transcript
Page 1: Mis for share

DATA, INFORMATION, AND SYSTEMS

Data vs. Information

◦ Data

A “given,” or fact; a number, a statement, or a picture.

Represents something in the real world.

The raw materials in the production of information.

◦ Information

Data that have meaning within a context.

Data in meaningful form.

Data after manipulation.

What Is a System?

◦ System: A system is a group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process.

A system (sometimes called a dynamic system) has three basic interacting components or functions. These include:

Input involves capturing and assembling elements that enter the system to be processed. Processing involves transformation processes that convert input into output. Output involves transferring elements that have been produced by a transformation process to their ultimate destination. Feedback and Control are two additional components of the system concept.A system with feedback and control components is sometimes called a cybernetic system, that is, a self-monitoring, self-regulating system. Feedback is data about the performance of a system. Control involves monitoring and evaluating feedback to determine whether a system is moving toward the achievement of its goals. The control function then makes necessary adjustments to a system's input and processing components to ensure that it produces proper output.

◦ Subsystem: One part of a system where the products of more than one system are combined to reach an ultimate goal

Page 2: Mis for share

◦ Why Do People Need Information?

◦ Individuals - Entertainment and enlightenment

◦ Businesses - Decision making, problem solving and control.

INFORMATION SYSTEM

An organized combination of people, hardware, software, communication networks, and data resources. It 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. The purpose is to collect, transform, and disseminates information in an organization.

CLASSIFICATION OF INFORMATION SYSTEMS

Information Systems perform important operational and managerial support roles in businesses and other organizations. Therefore, several types of information systems can be classified conceptually as either:

Page 3: Mis for share

1. Operations Support Systems

2. Management Support Systems

Operations Support Systems

Information systems are needed to process data generated by and used in business operations. Such operations support systems (OSS) produce a variety of information products for internal and external use. However, they do not emphasize producing the specific information products that can best be used by managers. Further processing by management information systems is usually required. The role of a business firm’s operations support systems is to: • Effectively process business transactions • Control industrial processes • Support enterprise communications and collaboration • Update corporate databases.

Transaction Processing Systems (TPS) Focus on processing the data generated by business transactions and operations. Transaction processing systemsrecord and process data resulting from business transactions (sales, purchases, inventory changes). TPS also produce a variety of information products for internal or external use (customer statements, employee paychecks, sales receipts etc.).TPS process transactions in two basic ways: • Batch Processing - transactions data is accumulated over a period of time and processed periodically. • Real-time (or online) processing - data is processed immediately after a transaction occurs.

Process Control Systems (PCS) - Process control systems are systems, which make use of computers to control ongoing physical processes. These computers are designed to automatically make decisions, which adjust the Physical production process. Examples include petroleum refineries and the assembly lines of automated factories.

Enterprise Collaboration Systems - Enterprise collaboration systems are information systems that use a variety of Information technologies to help people work together. Enterprise collaboration systems help us

◦ Collaborate- to communicate ideas ◦ Share resources ◦ Co-ordinate our cooperative work efforts as members of the many formal and

informal process and project teams.The goal of enterprise collaboration systems is to use information technology to enhance the productivity and creativity of teams and workgroups in the modern business enterprise.

Page 4: Mis for share

Management Support Systems (MSS)

Management support systems focus on providing information and support for effective decision making by managers. They support the decision-making needs of strategic (top) management, tactical (middle) management,and operating (supervisory) management. Conceptually, several major types of information systems support avariety of decision-making responsibilities:• Management Information Systems (MIS) • Decision Support Systems (DSS) • Executive Information Systems (EIS) Management information systems - are the most common form of management support systems. They provide managerial end users with information products that support much of their day-to-day decision-making needs. MIS provide a variety of prespecified information (reports) and displays to management that can be used to help them make more effective, structured types of day-to-day decisions. Information products provided to managers include displays and reports that can be furnished: • On demand • Periodically, according to a predetermined schedule • Whenever exceptional conditions occur

Decision support systems -Provide managerial end users with information in an interactive session on an ad hoc (as needed) basis. Managers generate the information they need for more unstructured types of decisions in aninteractive, computer-based information system that uses decision models and specialized databases to assist the decision-making processes of managerial end users.

Executive information systems - Provide top and middle management with immediate and easy access to selective information about key factors that are critical to accomplishing a firm’s strategic objectives. EIS are easy to operate and understand. Other Classifications of Information Systems: Several other categories of information systems that support either operations or management applications include:

Expert systems End user computing systems Business information systems Strategic information systems1. Expert Systems are knowledge-based systems that provide expert advice and

act as expert consultants to the users.2. End user computing systems support the direct, hands on use of computers by

end users for operational and managerial applications.3. Business information systems support the operational and managerial

applications of the basic business functions of a firm.

Page 5: Mis for share

4. Strategic information systems provide a firm which strategic products, services, and capabilities for competitive advantage.

MANAGEMENT INFORMATION SYSTEMS (MIS)

Management information systems (MIS) are a combination of hardware and software used to process information automatically. Commonly, MIS are used within organizations to allow many individuals to access and modify information. In most situations, the management information system mainly operates behind the scenes, and the user community is rarely involved or even aware of the processes that are handled by the system.

A computer system used to process orders for a business could be considered a management information system because it is assisting users in automating processes related to orders. Other examples of modern management information systems are websites that process transactions for an organization or even those that serve support requests to users. A simple example of a management information system might be the support website for a product, because it automatically returns information to the end user after some initial input is provided.

Online bill pay at a bank also qualifies as a management information system — when a bill is scheduled to be paid, the user has provided information for the system to act against. The management information system then processes the payment when the due date approaches. The automated action taken by the online system is to pay the bill as requested. Since the bills within an online bill pay system can be scheduled to be automatically paid month after month, the user is not required to provide further information. Many times, the bill pay system will also produce an email for the user to let him know that the action has occurred and what the outcome of the action was.

Management information systems typically have their own staff whose function it is to maintain existing systems and implement new technologies within a company. These positions are often highly specialized, allowing a team of people to focus on different areas within the computer system. In recent years, colleges and universities have begun offering entire programs devoted to management information systems. In these programs, students learn how to manage large interconnected computer systems and troubleshoot the automation of these management information systems.

"MIS primarily serve the functions of planning, controlling, and decision making at the management level." MIS are one of a number of different types of information systems that can serve the needs of different levels in an organization. For example, information systems might be developed to support upper management in planning the company's strategic direction or to help manufacturing in controlling a plant's operations. Some of the other types of information systems include: transaction processing systems, which simply record the routine transactions needed to conduct

Page 6: Mis for share

business, like payroll, shipping, or sales orders; and office automation systems, which are intended to increase the productivity of office workers and include such systems as word processing, electronic mail, and digital filing. Ideally, the various types of information systems in an organization are interconnected to allow for information sharing.

Purpose & Scope of Management Information System

The Purpose and Scope of MIS can be defined as “The combination of human and computer based resources that results in the collection, storage, retrieval, communication and use of data for the purpose of efficient management of operations and for business planning”.

In order to get a better grip on the activity of information processing, it is necessary to have a formal system which should take care of the following points:

Handling of a voluminous data. Confirmation of the validity of data & transaction. Complex processing of data and multi-dimensional analysis. Quick search & retrieval. Mass Storage. Communication of the information system to the user on time. Fulfilling the changing needs of the information.

The management information system uses computers and communication technology to deal with these points of supreme importance.

Role of Management Information System

The role of the MIS in an organization can be compared to the role of heart in the body. The information is the blood and MIS is the heart. In the body, the heart plays the role of supplying pure blood to all the elements of the body including the brain. The heart works faster and supplies more blood when needed. It regulates and controls the incoming pure blood, processes it and sends it to the destination in the quantity needed. It fulfills the needs of blood supply to human body in normal course and also in crisis.

The MIS plays exactly the same role in the organization. The system ensures that an appropriate data is collected from the various sources, processed, and sent further to all the needy destinations. The system is expected to fulfill the information needs of an individual, a group of individuals, the management functionaries: the managers & the top management.

The MIS satisfies the diverse needs through a variety of systems such as Query Systems, Analysis Systems, Modeling Systems and Decision Support Systems. The MIS helps in Strategic Planning, Management Control, Operational Control and Transaction Processing.

Page 7: Mis for share

Outputs of management information systems

Scheduled reports

These are the reports Produced periodically, or on a schedule (daily, weekly, and monthly)

Key-indicator report

These are the reports that Summarizes the previous day’s critical activities. Typically available at the beginning of each day.

Demand report

These are the reports which Gives certain information at a manager’s request.

Exception report

These are automatically produced when a situation is unusual or requires management action.

Characteristics of a Management Information System

MIS Provides reports with fixed and standard formats, like Hard-copy and soft-copy reports

MIS Uses internal data stored in the computer system

End users can develop custom reports.

Requires formal requests from users.

Management Information Systems for Competitive Advantage

MIS Provides support to managers as they work to achieve corporate goals.

These Enables managers to compare results to established company goals and identify problem areas and opportunities for improvement.

Page 8: Mis for share

Advantages of MIS

1. It Facilitates planning: MIS improves the quality of plants by providing relevant information for sound decision – making. Due to increase in the size and complexity of organizations, managers have lost personal contact with the scene of operations.

2. In Minimizes information overload: MIS change the larger amount of data in to summarize form and there by avoids the confusion which may arise when managers are flooded with detailed facts.

3. MIS Encourages Decentralization: Decentralization of authority is possibly when there is a system for monitoring operations at lower levels. MIS is successfully used for measuring performance and making necessary change in the organizational plans and procedures.

4. It brings Co -ordination: MIS facilities integration of specialized activities by keeping each department aware of the problem and requirements of other departments. It connects all decision centers in the organization..

5. It makes control easier: MIS serves as a link between managerial planning and control. It improves the ability of management to evaluate and improve performance. The used computers has increased the data processing and storage capabilities and reduced the cost.

6. MIS assembles, process, stores, Retrieves, evaluates and disseminates the information.

Disadvantages of MIS

1. Highly sensitive requires constant monitoring. 2. Budgeting of MIS extremely difficult. 3. Quality of outputs governed by quality of inputs. 4. Lack of flexibility to update it self. 5. Effectiveness decreases due to frequent changes in top management 6.takes into account only qualitative factors and ignores non-qualitative factors like morale of worker, attitude of worker etc...

Page 9: Mis for share

Applications of MIS

With computers being as ubiquitous as they are today, there's hardly any large business that does not rely extensively on their IT systems.

However, there are several specific fields in which MIS has become invaluable.

* Strategy Support

While computers cannot create business strategies by themselves they can assist management in understanding the effects of their strategies, and help enable effective decision-making.

MIS systems can be used to transform data into information useful for decision making. Computers can provide financial statements and performance reports to assist in the planning, monitoring and implementation of strategy.

MIS systems provide a valuable function in that they can collate into coherent reports unmanageable volumes of data that would otherwise be broadly useless to decision makers. By studying these reports decision-makers can identify patterns and trends that would have remained unseen if the raw data were consulted manually.

MIS systems can also use these raw data to run simulations – hypothetical scenarios that answer a range of ‘what if’ questions regarding alterations in strategy. For instance, MIS systems can provide predictions about the effect on sales that an alteration in price would have on a product. These Decision Support Systems (DSS) enable more informed decision making within an enterprise than would be possible without MIS systems.

* Data Processing

MIS not only do MIS systems allow for the collation of vast amounts of business data, but they also provide a valuable time saving benefit to the workforce. Where in the past business information had to be manually processed for filing and analysis it can now be entered quickly and easily onto a computer by a data processor, allowing for faster decision making and quicker reflexes for the enterprise as a whole.

*Management by Objectives

While MIS systems are extremely useful in generating statistical reports and data analysis they can also be of use as a Management by Objectives (MBO) tool.

MBO is a management process by which managers and subordinates agree upon a series of objectives for the subordinate to attempt to achieve within a set time frame. Objectives are set using the SMART ratio: that is, objectives should be Specific, Measurable, Agreed, Realistic and Time-Specific.

Page 10: Mis for share

The aim of these objectives is to provide a set of key performance indicators by which an enterprise can judge the performance of an employee or project. The success of any MBO objective depends upon the continuous tracking of progress.

In tracking this performance it can be extremely useful to make use of an MIS system. Since all SMART objectives are by definition measurable they can be tracked through the generation of management reports to be analyzed by decision-makers.

Challenges faced by MIS

1. Workforce downsizing.

2. Information overload.

3. Employee mistrust.

4. Difficult to build.

5. Security breaches.

Opportunities

1. Enhanced global competitiveness.

2. Capture market opportunities.

3. Support corporate strategy.

4. Enhance worker productivity.

5. Improve quality of goods and services.

Page 11: Mis for share

Conclusion

Through the MIS, the information can be used as a strategic weapon to counter the threats to business, make businesses more competitive, and bring about the organizational transformation through integration. A good MIS also makes an organization effective.