Management Information Systems Assignment

8/20/2019 Management Information Systems Assignment

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MANAGEMENT INFORMATION SYSTEMS

ASSIGNMENT

Submitted By

ROSHNI VINOD

(TYC)

Roll No- 3151


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Q1) Explain MIS and the concept of MIS with necessary diagrams.

Definition

"An integrated user-machine system for providing information to support operations,

management and decision making functions in an organization. The system utilizescomputerized and manual procedures; models for analysis, planning, control and decision

making; and a database."

(MIS) are designed to provide past, present, and future routine information appropriate for

planning, organizing, and controlling the operations of a functional area in an organization.

An organized approach to the study of the information needs of an organization's

management at every level in making operational, tactical, and strategic decisions. Its

objective is to design and implement procedures, processes, and routines that provide suitably

detailed reports in an accurate, consistent, and timely manner.

In a management information system, modern, computerized systems continuously gather

relevant data, both from inside and outside an organization. This data is then processed,

integrated, and stored in a centralized database (or data warehouse) where it is constantly

updated and made available to all who have the authority to access it, in a form that suits their

purpose.


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Project Examples of MIS

IBM

Project description: The MIS consulting team at IBM and their project sponsor located in

the UK to extend the Rational DOORS methodology to support the specific needs of multi

company development of medical devices. The key issues addressed included the uniquedocument control and personnel scheduling needs of this scenario. The specific issues related

to appropriate management of intellectual property were given particular attention.

Kids at Hope

Company overview: Kids at Hope inspires, empowers, and transforms families, youth

serving organizations (schools, parks and recreation departments, police and fire departments,

etc.) and entire communities to create an environment where all children experience success.

They serve over 500,000 students across the US and Canada.

Project: The project was to create an interactive and content rich website that supports

students in their efforts to visualize their future by using the neuroscience concept of Time

Traveler. The Time Traveler guides students in seeing and planning for the future.

Levementum, LLC

Company overview: Levementum is a global demand chain consulting and technology

services company. They are the largest SugarCRM solutions provider in the world.

Project: The MIS team worked on a proof of concept to develop a cloud based Business

Intelligence Solutions for the Health Care industry tied to CRM.

Walmart

Company overview: Walmart, is an American multinational retail corporation that runs

chains of large discount department stores and warehouse stores. The company is the world's

third largest public corporation, according to the Fortune Global 500 list in 2012, the biggest

private employer in the world with over two million employees, and is the largest retailer in

the world.

Project: MIS teams worked with Walmart to create a website that supported their use and

administration of talent resources.


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Q2) What is ERP and its advantages?

ERP is short for enterprise resource planning. Enterprise resource planning (ERP) is business

process management software that allows an organization to use a system of integrated

applications to manage the business and automate many back office functions related to

technology, services and human resources. ERP software integrates all facets of an operation,including product planning, development, manufacturing, sales and marketing.

ERP software is considered an enterprise application as it is designed to be used by larger

businesses and often requires dedicated teams to customize and analyze the data and to

handle upgrades and deployment. In contrast, Small business ERP applications are

lightweight business management software solutions, customized for the business industry

you work in.

Advantages of ERP (Enterprise Resource Planning) System:

1.

Complete visibility into all the important processes, across various departments of an

organization (especially for senior management personnel).

2. Automatic and coherent workflow from one department/function to another, to ensure

a smooth transition and quicker completion of processes. This also ensures that all the

inter-departmental activities are properly tracked and none of them is ‘missed out’.

3. A unified and single reporting system to analyze the statistics/status etc. in real-time,

across all functions/departments.

4. Since same (ERP) software is now used across all departments, individual

departments having to buy and maintain their own software systems is no longer

necessary.

5. Certain ERP vendors can extend their ERP systems to provide Business

Intelligence functionalities, that can give overall insights on business processes and

identify potential areas of problems/improvements.

6. Advanced e-commerce integration is possible with ERP systems – most of them can

handle web-based order tracking/ processing.


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7. There are various modules in an ERP system like Finance/Accounts, Human

Resource Management, Manufacturing, Marketing/Sales, Supply Chain/Warehouse

Management, CRM, Project Management, etc.

8. Since ERP is a modular software system, its possible to implement either a few

modules (or) many modules based on the requirements of an organization. If more

modules implemented, the integration between various departments may be better.

9. Since a Database system is implemented on the backend to store all the information

required by the ERP system, it enables centralized storage/back-up of all enterprise

data.

10. ERP systems are more secure as centralized security policies can be applied to them.

All the transactions happening via the ERP systems can be tracked.

11. ERP systems provide better company-wide visibility and hence enable

better/faster collaboration across all the departments.

12. It is possible to integrate other systems (like bar-code reader, for example) to the ERP

system through an API(Application Programing Interface).

13. ERP systems make it easier for order tracking, inventory tracking, revenue tracking,

sales forecasting and related activities.

14. ERP systems are especially helpful for managing globally dispersed enterprise

companies, better.


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Q3) What are the various types of information systems. Explain with examples and

diagrams.

The information system is a system of group of interrelated components working together

towards a common goal by accepting inputs and producing outputs in an organized

transformation process.In this system there are three basic components or functions are involved. i.e., Input,

Processing and Output.

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Types

1) Transaction Processing Systems are operational-level systems at the bottom of the

pyramid. They are usually operated directly by shop floor workers or front line staff,

which provide the key data required to support the management of operations. Thisdata is usually obtained through the automated or semi-automated tracking of low-

level activities and basic transactions.

Functions of a TPS in terms of data processing requirements

Inputs Processing Outputs

Transactions

Events

Validation

Sorting

Listing

MergingUpdating

Calculation

Lists

Detail reports

Action reportsSummary reports?

Some examples of TPSPayroll systems

Order processing systems

Reservation systems

Stock control systems

Systems for payments and funds transfers

2) Management Information System - For historical reasons, many of the different

types of Information Systems found in commercial organizations are referred to as

"Management Information Systems". However, within our pyramid model,

Management Information Systems are management-level systems that are used by

middle managers to help ensure the smooth running of the organization in the short to

medium term. The highly structured information provided by these systems allows

managers to evaluate an organization's performance by comparing current with

previous outputs.

Functions of a MIS in terms of data processing requirements


Internal Transactions

Internal Files

Structured data

Sorting

Merging

Summarizing

Summary reports

Action reports

Detailed reports

Some examples of MIS Sales management systems

Inventory control systems

Budgeting systems

Management Reporting Systems (MRS)Personnel (HRM) systems


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3) Decision support systems (DSS) A Decision Support System can be seen as a

knowledge based system, used by senior managers, which facilitates the creation of

knowledge and allow its integration into the organization. These systems are often

used to analyze existing structured information and allow managers to project the

potential effects of their decisions into the future. Such systems are usually interactive

and are used to solve ill structured problems. They offer access to databases,analytical tools, allow "what if" simulations, and may support the exchange of

information within the organization.

Functions of a DSS in terms of data processing requirements


Internal Transactions

Internal Files

External Information?

Modelling

Simulation

Analysis

Summarizing

Summary reports

Forecasts

Graphs / Plots

Some examples of DSSGroup Decision Support Systems (GDSS)

Computer Supported Co-operative work (CSCW)

Logistics systems

Financial Planning systems

Spreadsheet Models

4) Executive information systems (EIS) is a reporting tool that provides quick access

to summarized reports coming from all company levels and departments such as

accounting, human resources and operations. Executive Information Systems arestrategic-level information systems that are found at the top of the Pyramid. They help

executives and senior managers analyze the environment in which the organization

operates, to identify long-term trends, and to plan appropriate courses of action. The

information in such systems is often weakly structured and comes from both internal

and external sources. Executive Information System are designed to be operated

directly by executives without the need for intermediaries and easily tailored to the

preferences of the individual using them.

Functions of a EIS in terms of data processing requirements


External Data

Internal Files

Pre-defined models

Summarizing

Simulation

"Drilling Down"

Summary reports

Forecasts

Graphs / Plots

Some examples of EISExecutive Information Systems tend to be highly individualized and are often custom made

for a particular client group; however, a number of off-the-shelf EIS packages do exist and

many enterprise level systems offer a customizable EIS module.

5)

Expert Systems: An expert system is a specialized information system that performstasks normally done by people, such as making decisions.


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Expert systems are used to approve bank loans, make large-scale purchasing decisions, and

assist with medical diagnoses.

Expert systems rely on huge, detailed databases (knowledge bases). Special software, called

an inference engine, analyzes data to answer questions or make choices.

6) Marketing Information Systems are Management Information Systems designed

specifically for managing the marketing aspects of the business

7) Accounting information systems are focused accounting functions.

8) Human resource management systems are used for personnel aspects.

9) Office automation systems (OAS) support communication and productivity in the

enterprise by automating workflow and eliminating bottlenecks. OAS may be

implemented at any and all levels of management.

Office automation systems are used to automate routine office tasks, such as the creation of

documents, billing, and others.

Office automation systems can be built from off-the-shelf applications – standard

productivity software that most users are familiar with.

In some office systems, commercial software may be customized to perform specific tasks,

but this is not always necessary.


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Q4) Explain the types of decisions? Illustrate Herbert Simon Model of Decision Making in

detail.

The types of decisions are divided into the following categories:

•

1) Programmed Decisions: Programmed or structured are those decisions, which are well defined and some specified

procedure or some decision rule might be applied to reach a decision. Such decisions are

routine and repetitive and require little time for developing alternatives in the design phase.

Programmed or structured decisions have traditionally been made through habit, by operating

procedures or with other accepted tools.

• Routine/Structured

• Definite procedures to be followed

• The situations are known

• Repetitive/Short term

• Techniques used: SOP/operational research/computers

2) Non Programmed Decisions

Decisions, which are not well defined and have not pre-specified procedures decision rule are

known as unstructured or non-programmed decisions.

• Innovative

• New/Complex situations

• Long Term

• Strategic

Managerial decisions are grouped as:

(a) Strategic decision

(b) Tactical decision

(c) Operation decision

1. Strategic Decision: these are known as major decision influence whole or major part of

the organization. Such decisions contribute directly to the achievement of common goals of

the organization; have long range effect upon the organization.

Generally, strategic decision is unstructured and thus, a manager has to apply his business

judgment, evaluation and intuition into the definition of the problem. These decisions are

based on partial knowledge of the environmental factors which are uncertain and dynamic,

therefore such decision are taken at the higher level of management.

2. Tactical Decision: tactical decision relate to the implementation of strategic decisions,

directed towards developing divisional plans, structuring workflows, establishing distribution

channels, acquisition of resources such as men, materials and money. These decisions are

taken at the middle level of management.

3. Operational Decision: operational decisions relate to day-to-day operations of the

enterprise having a short-term horizon and are always repeated. These decisions are based on

facts regarding the events and do not require much of business judgments. Operational

decisions are taken at lower level of management.


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HERBERT SIMON MODEL

Decision-making is a process in which the decision-maker uses to arrive at a decision. He

divided the model into three phases. In the intelligence phase, the problem is identified, and

information is collected concerning the problem. This can be a long process, as the decision

to be made comes from the information. The design phase develops several possible solutionsfor the problem. Finally, the choice phase chooses the solution.

The core of this process is described by Herbert Simon in a model. He describes the model in

three phases as shown in the figure below:

I. Intelligence: raw data collected, processed and examined, Identifies a problem calling

for a decision.

II. Design: inventing, developing and analyzing the different decision alternatives

and testing the feasibility of implementation. Assess the value of the decision

outcome.

III. Choice: select one alternative as a decision, based on the selection criteria.

In the intelligence phase, the MIS collects the data. The data is scanned, examined, checked

and edited. Further, the data is sorted and merged with other data and computations are made,

summarized and presented. In this process, the attention of the manager is drawn to all problem situations by highlighting the significant differences between the actual and the

expected, the budgeted or the targeted.

In the design phase, the manager develops a model of the problem situation on which he can

generate and test the different decision alternatives, he then further moves into phase of

selection called as choice.

In the phase of choice, the manager evolves selection criteria such as maximum profit, least

cost, minimum wastage, least time taken and highest utility. The criterion is applied to the

various decision alternatives and the one which satisfies the most is selected.

FEEDBACK


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In Implementation, The decision that is ultimately carried out.

In Review, decision implemented is evaluated. Was the course of action taken a good choice.

In these phases, if the manager fails to reach a decision, he starts the process all over again

and again. An ideal MIS is supposed to make a decision for the manager.

An example of the Simon model would illustrate further its use in the MIS. For example, a

manager finds on collection and through the analysis of the data that the manufacturing plant

is underutilized and the products which are being sold are not contributing to the profits as

desired. The problem identified, therefore, is to find a product mix for the plant, whereby the

plant is fully utilized within the raw material and the market constraints, and the profit is

maximized. The manager having identified this as the problem of optimization, now

examines the use of linear programming (LP) model. The model is used to evolve various

decision alternatives. However, selection is made first on the basis of feasibility and then on

the basis of maximum profit.

The product mix so given is examined by the management committee. It is observed that the

market constraints were not realistic in some cases and the present plant capacity can be

enhanced to improve the profit. The same model is used again to tool the revised position.

Therefore, additional data is collected and an analysis is made to find out whether the average

20 percent utilization of the capacity can be increased. A market research for some products

is made and it is found that some constraints need to be removed and reduced. Based on the

revised data linear programming model is used and a better optimum solution is obtained.

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Management Information Systems Assignment