MANAGEMENT INFORMATION SYSTEM

VITH SEM BBM

SYLLABUS CHAPTER 1: Introduction to MIS: Importance of information to decision making and strategy building, information systems and subsystems, systems concepts (types of systems, system concepts applied to MIS). CHAPTER 2: Conceptual foundations: The decision making process, systems approach to problem solving, support systems for planning, control and decision making.

CHAPTER 3: Technical foundations of IS: Introduction to computer concepts, hardware concepts and software concepts applied to IS. Database and file management. CHAPTER 4: Subsystems of MIS: Transaction processing systems, DSS and GDSS, ES. CHAPTER 5: Information Subsystems and Oranization: Introduction to ERP, BPR, AI, EIS, KMS and L-CRM.

INTRODUCTION TO MIS
Management: covers the planning, controlling, and administration of the operations of a concern. The top management handles planning; the middle management concentrates on controlling; and the lower management is concerned with actual administration.

Information: processed data that helps the management in planning, controlling and operations. Data means all the facts arising out of the operations of the concern. Data is processed i.e. recorded, summarized, compared and finally presented to the management in the form of MIS report.

 System:

data is processed into information with the help of a system. a system is made up of inputs, processing, output and feedback or control.

Thus MIS means a system for processing data in order to give proper information to the management for performing its functions.

IMPORTANCE OF INFORMATION TO
DECISION MAKING AND STRATEGY
BUILDING

DATA- raw facts or observations about physical phenomena or business transactions. Objective measurements of attributes of entities such as people, place, things and events. INFORMATION data placed in a meaningful and useful context for an end user. data have been shaped into a form that is meaningful and useful to human beings.

Definition Its a computer-based system that makes information available to the users with similar needs. The users usually comprise of an organizational entity.

The information describes the firm or one of the major systems in terms of what has happened in past, what is happening now and what is likely to happen in the future.

 The

information is made available in the form of periodic reports, special reports and outputs of mathematical simulations. The information output is used by both managers and non managers as they make decisions to solve the firms problems.

Mis model..

MIS MODEL

The database contains the data provided by the Accounting Information System. In addition, both data and information are entered from the environment. The database contents are used by software that produces periodic and special reports and its used by the mathematical models that simulate various aspects of the firms operations. The softwares output are used by persons who are responsible for solving the firms problems.

MAJOR COMPONENTS OF MIS

IMPORTANCE OF MIS
1.

2.

3.

4.

It helps managers in providing information to take proper decision and control. It provides information for diversified needs at different levels of management. It gives information to different departments within an organization at efficient and cost effective data storage. It provides flexibility in information system for future requirement for management needs in an organisation.

Characteristics of MIS: 1. Business Driven- purpose is to meet information needs of organization and its stakeholders. 2. Management directed- mis is designed to meet information needs at all levels of management for achieving its objectives. 3. Integrated system- mis views organisation needs from systems point of view. 4. Heavy planning- mis requires detailed planning for acquisition and deployment of hardware and software, hiring, training of personnel, planning data processing operations, information presentation and feedback.

5.Flexibility and ease of use: mis is designed flexible enough to adopt new requirements . The system is easy to operate to access database for carrying out special analysis of data. 6. Common data flows- system maintains general databases so that any functional subsystem can access database. 7. Avoids redundancy in data storage- it avoids unnecessary duplication and redundancy in data gathering and storage. 8. Distributed systems- most organisations are geographically spread over wide area, these offices work independently of their headquarters.

Functions of MIS: 1. It provides Free flow of information throughout the multilayered organisations. 2. Mis is oriented toward achieving management goals and objectives. 3. Mis plays a crucial role in keeping organisation integrated by providing facilities for information exchanges. 4. For effective management of an organisation several layers of management have to be created and supported with information and data analysis facilities which is taken care by mis.

SYSTEM DEVELOPMENT LIFE CYCLE (SDLC)

SDLC- refers to the process of designing, developing and implementing, investigation, analysis, design, and maintenance.

SYSTEM CONCEPTS
System: orderly arrangement of interdependent groups ultimately leading to formation of a whole. Types of system: 1. Conceptual Systems a. Are theoretical and explanatory in the nature. b. Provide the much needed clarification. c. Provide theoretical framework for which there may or may not be any real life counterpart. d. E.g. of such systems can be philosophy.

Empirical Systems a. Are very practical, specific and also very operational in the nature. b. Can be based on the conceptual system. c. Examination system, surgery act as very good examples of the empirical system. 2. Open Systems a. Involve continuous interaction with the environment. b. So exchanges the information, material, energy with the environment. c. Is open and also self organizing in the nature. d. Is also adoptive or adaptive to the changing environment as it is flexible.

3. Closed Systems a. Shuns any kind of the exchange with the environment. b. Is rigid in nature. c. Is not at all amenable to the change. d. Is also self contained. e. Is somewhat isolated in the nature. f. Is having a well defined boundary. g. Is not at all adaptive in the nature. 4. Natural Systems a. Such Systems exist and also abound in the nature. b. Are also not at all the results of the human endeavors. c. Rivers, mountains, minerals etc. are the major examples of the natural Systems.

5. Artificial Systems a. Are manufactured (man made). b. Examples of such Systems are dams, canals, roads, machines, factories etc. 7. Probabilistic Systems a. Based on the predictability of the behavior or the outcome. 8. Deterministic Systems In such Systems, the interaction of the elements is known. b. As the behavior of the elements is pre determined, it becomes possible to work upon the reaction well in the advance.

FUNCTIONAL PERSPECTIVES OF MIS

Financial

MIS Will integrate information from multiple sources Functions

Costing P&L reporting Auditing Funds management

 Manufacturing

Design

and Engineering Master Production Scheduling Inventory Control Materials Planning Manufacturing and Process Control Quality Control.

 Marketing

Market

research

Web-based market research

Pricing
Transportation

and Logistics Route and schedule optimization Human Resources Accounting.

GOALS OF AN MIS
Provide managers with information Regular, routine operations Control, organize and plan better.

Management Levels High level (strategic)

Long-range view Planning

Middle

level (tactical)

Carry out the plan

Assemble the material Hire the resources

Organize and staff

 Low

level (operational)

Supervisor Directing and controlling

DECISION MAKING
Decision making is the developing concepts leading to the selection of a course of action among variations. Every decision making process produces a final choice It can be an action or an opinion. It begins when we need to do something but we do not know what e.g. Decision to raise a Purchase Order. Types of Decisions Unstructured/ Non-programmed

Structured/ Programmed Semi-structured

INFORMATION REQUIREMENTS OF KEY DECISION-MAKING GROUPS IN A FIRM

SIMONS MODEL OF DECISION MAKING

Decision making process:

PHASES OF DECISION MAKING PROCESS

Intelligence gathering

Definition of problem Data gathered on scope Constraints identified Alternatives identified and assessed
Selection of an alternative

Design phase

Choice Implementation

Testing the selected alternative