Development Process of MIS

MIS Plan
MIS goals and objectives It is necessary to develop the goals and objectives for the MIS which will support the business goals which will consider management philosophy, policy constraints, business risks, internal and external environment of the organization and the business. The goals and the objectives of the MIS would be so stated that they can be measured. The typical statements of the goals are as under: Provide on-line information on the stocks, markets and the accounts balances. The query processing should not exceed more than three seconds. The focus of the system will be on the end user computing and access facilities. Information support will be the first in the strategic areas of management such as marketing or service or technology.

Business VS MIS
Business Plan Business goals and objectives. MIS Plan Management information system, objectives, consistent to the business goals and objectives. Information strategy for the business plan implementation playing a supportive role. Architecture of the Management Information system to support decisions. System development schedule, matching the plan execution. Hardware and software plan for the procurement and the implementation

Business plan and strategy

Strategy planning and decisions.

Management Plan for execution and control. Operation plan for the execution.

Strategy Planning
Development strategy: An online, a batch, a real time. System Development Strategy: An approach to the system development Operational versus Functional; Accounting versus Analysis; Database versus Conventional Approach; Distributed versus Decentralized processing; one Database versus Multiple databases. Resource for System Development: In-house versus external, customized development versus the use of packages

Vision/Mission / Goals/ Objective

Vision - A vision statement is a mental picture of what you want to accomplish or achieve. For example, you may want to develop a profitable winery or a successful organic dairy business. Mission - A statement of mission is a general statement of how you will achieve your vision. There is a very close relationship between the vision and mission. The mission is an action statement that usually begins with the word to.

Vision

Mission

Goal

Objectives

A vibrant rural economy driven by value-added agriculture

To create and facilitate the development of value-added agricultural businesses.

to improve profitability To increase efficiency To capture a bigger market share To provide better customer service To improve employee training To reduce carbon emissions

To earn at least a 20 percent after-tax rate of return on our net investment during the next fiscal year. To increase market share by 10 percent over the next three years. To lower operating costs by 15 percent over the next two years by improving the efficiency of the manufacturing process. To reduce the call-back time of A goal should meet the customers inquiries and questions to following criteria: no more than four hour. Suitable: Does it fit with the Objectives should meet the following vision and mission? criteria: Acceptable: Does it fit with Measurable: What will happen and the values of the company when? and the employees? Suitable: Does it fit as a measurement Understandable: Is it stated for achieving the goal? simply and easy to Feasible: Is it possible to achieve? understand? Commitment: Are people committed Flexible: Can it be adapted to achieving the objective? and changed as needed? Ownership: Are the people responsible for achieving the objective included in the objectivesetting process?

Mission / Goals /Objectives

Mission Goal Objectives

"Provide to our valued customers prompt and high quality food and service in a friendly and courteous manner."

Reduce the average customer waiting time by 10 minutes" (addresses "prompt" service)
"Reduce cholesterol in food by 10% within a year" (addresses "high quality food") "Improve customer perception of courtesy within a year" (addresses "friendly and courteous manner")

"Add five more tables to the dining room by (date)" "Add one cook to the staff during peak periods by (date)
"Begin using unsaturated fats by (date)" "Begin using low fat salad dressing by (date)" "Provide eight hours of customer service training to all team members by (date)" "Establish awards for courteous service and begin by (date)"

Contents

Particulars

Model of MIS plan

Focus

Corporate Information Business and current operations. Where do we stand? Information on Key Responsibility Area
Mission/ Goals/ Objectives Business Risk and rewards Business Policy and Strategy Information Need Architecture Schedule of development Organization ad execution plan Budget and ROI Current and new Where do we want to reach

Clear quantitative statements on these What are the risks and how to factors showing a trade off between resolve risks and rewards Details of strategic and policy decisions Strategic Planning : managerial and operational IT details Details of systems and subsystem Manpower and delegation details Internal and external sources Investment schedule and benefits How we will achieve the goals and objectives What is key information Tools and technology When and how will be it achieved Who will achieve How much will it cost

Class of Information
Information need by the management for business execution is complex task. Complexity is classified on basis of its application and user

Classes of Information
Information Class Organisational Example of information User No. of employees, products Many user at all levels ,services locations, types of business, turnover and details of the above entities One can define the organizational information as the information required by a number of personnel, departments and divisions or the functions in the organization. Such information can be determined by constructing a matrix of information versus user as show in Table
Information Entity Employees attendance Salary Wages and Overtime Human Resources Information Manager (Personnel) X X X Manager (Production) X X X Manager (Administration) X X X X Manager (Accounts)

Classes of information
Information Class Functional Managerial Knowledge Example of information Purchase, sales, production, stocks, receivables, payables, budgets Trends in sales, production and technology Deviations from budgets, targets, norms etc. Competitors information User Functional Heads and other Middle and Top Management

The functional information is defined as a set of information required by the functional head in conducting the administration and management of the function.
This information is purely local to that function and by definition, does not have a use elsewhere. This information is used by a manager to plan and control his function. Functional information is largely factual, statistical and detailed in multi-dimensions of the function

Example
Sales Information the product the product groups, the market segment, the geographic zones, the locations, the customer, sales organization structure. Time Interval Monthly Quarterly Bi- Annual Annual Required for for understanding the trend and making comparisons against the time scale. Such as information is used for planning, budgeting and controlling the operations of the function.

Assessment of functional Information

Work Design For example, for the customer order scrutiny the available stock, the price, the terms of payment and the probable delivery is an information set evolved out of the work design of customer order processing. Responsibility The managers in the functional areas of management are responsible for achieving the targets and accomplishing the goals and objectives. inform and update the information on targets at regular intervals to enable him to make or change decisions in his domain of operations. Most of these targets are business targets such as the turnover, production, utilization, stocks and so on Functional Objectives For example, the marketing manager has a monthly target of $ 1 million order booking, half a million invoicing, and not more than two months receivables.

Knowledge information
The information creates an awareness of those aspects of business where the manager is forced to think, decide and act. Such information shows the trend of the activity or a result against the time scale. For example, whether the sales are declining and the trend is likely to continue in the next quarter. The product is failing continuously on one aspect and the reason of failure is the process of manufacturing. Such information pin-points the area or entity and forces the manager to act. It highlights the deviations from the norm or standard and also any abnormal developments which are not in congruence with the forecasts or expectations. Such information gives rise to business decision, which will affect the process of business significantly.

Information Class
Decision Support

Classes of information
Example of information
Status information on particular aspects such as utilisation , profitability standard , requirement versus availability. Information for problem solving and modeling. Quantitative information on the business status . Non moving inventory, over due payments and receivables

User
Middle management and operations management

Information is used in a decision support system for model building and problem solving one for justifying the need of a decision an aid to decision making. For example, the information on the non-moving inventory justified the decision of the disposal at throwaway prices. The demand forecasts information aids in the decision on determining the economic order quantity for production or a sale.

Classes of Information
Information Class Operational Support Example of information Information on production, sales, purchases, dispatches, consumption etc in form of planned versus actual. The information of monitoring of execution schedules User Operational and management supervisor s, officers

This information is required by the operational and the lower levels of the management. The main purpose of this information is fact finding and taking such actions or decisions which will affect the operations at a micro level. The decisions may be to stay on overtime, draw additional material, change the job from one machine to the other, and send a reminder to the supplier for the supply of material. These decisions are such that they make the routine administration of the business smooth and efficient. These decisions do not fall in the category of the managerial decisions.

Information Requirement
The sole purpose of the MIS is to produce such information which will reduce uncertainly in a given situations.

The difficulty to determine a correct and complete set of information is on account of the factors given below: The capability constraint of the human being as an information processor, a problem solver and a decision maker. The nature and the variety of information. Reluctance of decision makers to spell out the information for the political and the behavioral reasons. The ability of the decisions makers to specify the information.

Methods of determining information requirement

Asking or Interviewing Determining from existing system Analyzing critical success factors Experimentation and modeling

Development and Implementation of the MIS

Prototyping Approach Life Cycle approach

Various systems and subsystems are constructed and then integrated

Prototyping approach
To illustrate the input data, formats, messages, reports and the interactive dialogues to the customer. It is also used when technical solutions are unclear to the development team. To gain better understanding of the customer needs.

Mission, goals

Identify information needs Define subsystem

Refine the needs

Modify Prototype specs

Review

Develop and Test

Develop revised prototype

Implement

Define System Objective

Initial prototype

Is user satisfied

Training

Examine Feasbility

Develop Initial Prototype Specifications

Define subsystem

Documentation

Life Cycle Approach

Minor modifications or changes do occur but they are not significant in terms of handling either by the designer or the user of the system. Such system, have a life and they can be developed in a systematic manner, and can be reviewed after a year or two, for significant modification, if any.

The system development life cycle consist of 5 major stages:

1. Define system and its objective 2. Development of the System 3. Installation of the System 4. Operations of the System 5. Review and Evaluation

System Specification

Assess feasibility

Install the System

Conducts training

Information Req. System

Develop the system

Operate the system

Conceptual Design

Program Specifications

Review and Audit

Physical Design

System specification

Difference
Prototype
Open system with a high degree of uncertainty about the information needs. Necessary to try out the ideas, application and efficiency of the information as a decision support It is prototyping based so Experimentation is necessary.

Life cycle
Closed system with little or no uncertainty about the information needs. No need to try out the application or the information as it is already proven Scope of the design and the application is fully determined with clarity and experimentation is not necessary.

User of the system wants to tryout the system before he commits the specification and the information requirements so user can not predict overall system
The system and applications is highly custom oriented.

The user is confident and confirms the specifications and the information needs so user can predict overall system.
The system and application is universal and governed by the principles and practices. Testing and training done after implementation of the system

Testing and training are done before implementation of the system.