MIS Lecture Slide Module I

8/3/2019 MIS Lecture Slide Module I

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Management Information

Systems

Module I


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Topics to be covered

Concepts of Data and Information

Management process & Information needs

Systems approach to Problem Solving

Levels, Classification & Capabilities of IS

Strategic role of Information Systems

Information for Competitive Advantage

Business Process Re-engineering

MIS Module I Prepared By: Ms. Swapna Anildas 2


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What is MIS?

Systems - A Set of interrelated components, with aclearly defined boundary, working together to achievea common set of objectives.

Information Systems - is an organized combination ofpeople, hardware, software, communication channelsand data resources that collect, transform anddisseminates information in an organization.

Management Information System -A combination ofcomputers and people that is used to provideinformation to aid in making decisions and managing afirm.



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Systems Concepts


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Systems

Derived from the Greek word Systema

Meaning:an organized relationshipamong functional units or components.

Definition: a combination of resources

or functional units working together toaccomplish a given task which is actuallythe objective of the system



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System

Resources1 Procedures

2

Objectives

3

Process4

Data/Information5

OthersStandards, Environments

Boundaries & Interfaces

Feedback

6

System Components


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Classification of Systems


Physical or Abstract

Open or Closed

Deterministic or Probabilistic

Human, Machine or Human-

Machine


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1. Physical & Abstract

Physical Systems

Tangible Entities Static or Dynamic in nature

Abstract Systems

Conceptual Formulas or model of a real system



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2.Open & Closed

Open Systems

Interaction with environment High probability of survival

Closed Systems

No interaction with environment Conceptual



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3.Deterministic or Probabilistic

Deterministic

Outputs are certain

Probabilistic

Output behaves probabilistically



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4. Human, Machine, or Human-Machine

Human systems - the components arehumans, open systems, output is

probabilistic.Machine system components are

machines, relatively closed, and output isdeterministic.

Human-Machine systems - consists bothhumans and machines as components,deterministic in delivery, but probabilistic ininterpretation.



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Systems Approach to

Problem Solving

Step 1:Defining the problem

Step 2:Developing alternative solutions

Step 3: Selecting a solution

Step 4:Designing the solution

Step 5: Implementing the solution

Step 6: Reviewing the solution.



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Information Systems


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What is Information System?

Information system is an organizedcombination of people, hardware,software, communication channels

and data resources that collect,transform and disseminates

information in an organization.



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Data Vs. Information

Data are raw facts or observations, about any

physical phenomena or business transactions.

Ex:Names, Quantities, Amount etc.

Information is when data is converted into

meaningful and useful context for specific end

users.Ex: Amount of sale by product type, or sales men etc.



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Data Information Data refers to details,

facts of an event.

Data is disorganized anddisintegrated in form.

Data is in raw form.

Cannot be understood or

made use by the users.

Data is independent ofinformation.

Information refers to eventsconcerned with an entity.

Properly arranged, classified,and organized.

Its in finished form.

Can be understood and used

by users.

It is based upon and derivedfrom data.

MIS Module I Prepared By: Ms. Swapna Anildas16


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Knowledge

Accumulation of relevant information

Two types:

Explicit: attained from reading documents

Tacit: attained from experience through

dialogue, judgment, lessons, etc. (it is not

easily transferrable)



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Classification ofData

Structured Data Usually tabular data stored in fields within a file or a record.

Examples are databases and spreadsheets

Unstructured Data In the form of text and images. Examples are letters, memos,

legal documents, images, etc

Meta Data It is the data about data, used mainly for managing

unstructured data. It includes, authors or sources, date written,content of document, number of pages, words, data entriesetc.



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Classification of Information

Action Vs. Non-Action Information

Internal Vs. External Information

Recurring Vs. Non-Recurring Information


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Action Information : Induces some action.

Example: No Stock report calling a purchaseaction.

Non-Action Information: Communicates

only the status of a situation. Stock ledger showing store transactions and

Stock balances.


Action Vs. Non-Action


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Recurring: generated at regular intervals

Example: Monthly sales report.

Non-recurring:

Financial analysis or Market research.


Recurring Vs. Non-recurring


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Internal: Generated through internalsources of organization.

External: Generated through Gov. reports,industry survey etc. Here the sources of the

data are outside the organization


Internal Vs. External


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Organizational: The information used by everyone in

an organization.

Eg. Payroll information.

Database: The information which has multiple uses

and applications.

Eg. Material specification etc.

Functional or Operational: Information used in

operations of business.

Eg Sales and production statistics.


Classification by Usage


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Information Gathering Methods


Asking or interviewing

Determining from the existing system

Analyzing the critical success factors Experimentation and modeling


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Sources of Information

Primary data (collected for the first time) is

gathered directly from respondent using

methods like observations, interviewing, and

questionnaires.

Secondary data is collected from internal or

external records like newspapers, journals,govt. publications, research reports, policy

documents, and web sites



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Quality of Information

The Quality of information is influenced by:


Timeliness:

Relevance

Completeness

Exception Based

Accuracy

Adequacy

Explicitness


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Components of

Information System



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Communication & network Support

Control of System Performance

INPUT

DATA

RESOURCES

PROCESSING

DATA INTO

INFORMATION

OUTPUTOF

INFORMATION

PRODUCTS

Storage of Data Resources.

NETWORK RESOURCES.


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Types of InformationSystems



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EXECUTIVE

INFORMATION

SYSTEMS

INFORMATION

SYSTEMS

OPERATIONS

SUPPORTSYSTEMS

MANAGEMENT

SUPPORTSYSTEMS

TRANSACTION

PROCESSING

SYSTEMS

PROCESS

CONTROL

SYSTEMS

OFFICE

AUTOMATION

SYSTEMS

MANAGEMENT

INFORMATION

SYSTEMS

DECISION

SUPPORT

SYSTEMS


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I

Operations Support systems Supports information processing requirements of day-to-day

operations of a business, as well as some lower lever operationsmanagement functions.

Produces variety of information products for external andinternal use. Further processing by management informationsystems is usually required.

Role of these systems is to effectively process businesstransactions, control industrial processes, support office

communications and productivity, and update corporatedatabases.

Includes Transaction Processing Systems (TPS), Process ControlSystems (PCS), and Office automation systems.



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Transaction Processing Systems

TPS processes business transaction of theorganization.

Provide speed and accuracy. Processing is done in two ways.

Batch Processing transaction data is accumulated overa period of time and processed periodically

Real Time (on line) processing Data is processedimmediately after a transaction occurs.

Example, Railway reservation system (Booking,canceling, etc are all transactions).



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Process Control Systems

Monitor and control physical processes.

For example, a petroleum refinery useselectronic sensors linked to computers to

continually monitor chemical processes and

make instant adjustment that control the

refinery process.



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Office Automation Systems

Used by knowledge workers

Enhances office communications andproductivity.

For example, the use of word processing for

office correspondence, e-mail for sendingand receiving electronic messages, and tele-

conferencing to hold electronic meeting.



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II

Management Support systems

Provides information and support for

effective decision making by all levels ofmanagement (from top executives to middle

managers to supervisors).

Includes Management Information Systems

(MIS), Decision Support Systems (DSS), and

Executive Information systems.



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Management Information Systems (MIS)

Provides information in the form of reports anddisplays to managers.

For example, sales managers may use theircomputer workstations to get instantaneousdisplays about the sales results of their products

and to access weekly sales analysis reports thatevaluate sales made by each sales person.



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Decision Support Systems (DSS)

Assist higher management to make long termdecisions

For example, advertising managers may usean electronic spreadsheet package to dowhat-if analysis as they test the impact of

alternative advertising budgets on theforecasted sales of new products.



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Executive Information systems

Provide critical information in easy-to-use

displays to top level management.

For example, to executives may use touch

screen terminals to instantly view text and

graphics displays that highlight key areas

of organizational and competitiveperformance.



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Information needs of an

organization Strategic information is the information needed by

top most management for decision making for future

long term plans. Tactical information is needed for middle level

management for making short term decisions and

plans for the organization.

Operational information is daily information needed

to operate the business.


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MIS Module I Prepared By: Ms. Swapna Anildas

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Strategic

Information

Operational Information

EIS & DSS

TPS

Relationship between Management and Information

levels in an organization

MISTactical information


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Business Process Re-Engineering (BPR)

or Re-engineering

One of the most important implementation of

competitive strategies

The radical redesign of business processes,combining steps to cut waste, eliminate repetitive

paper work etc so as to improve cost, quality and

service and to maximize benefits.

It is rethinking of traditional work methods and

procedures


Contd


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Michael Hammer defines Reengineering as The

fundamental rethinking and radical redesign ofbusiness processes to achieve dramatic

improvements, such as cost, quality, service and

speed.

Internet technologies can play a major role in

supporting innovative changes in the design of

workflows, job requirements, and organizational

structures in a company.



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End of Module I


Documents

MIS Lecture Slide Module I