MIS Essentials

Dr Sharad L. Joshi Professor Vishwakarma Institute of Management, Pune

What is MIS?

Study of Information Systems focusing on their use in Business and Management MIS combines the theoretical work of computer science, management science and operations research with a practical orientation toward developing system solutions to real life problems and managing information technology resources.

Types of systems

Transaction Processing Systems (Dealing with day-today events and actions - Financial Transactions, Student Attendance, Phonecalls, Train Reservation) Office Automation Systems (Word, Excel) Knowledge Work Systems(Tally, PowerPoint, CAD) Management Info. Systems (Based on TPS Student Absenteeism Report, Product-wise Sales, Slow moving items report, Customer Outstandings Report ) Decision Support Systems (Production Scheduling, Data Mining supported analytics) Executive Support Systems (Dashboards)

M.I.S. Model applicable to all 6 types of systems

Information
Herbert Simon Model
of Decision Making

Processing Logic
Data Computers Human Beings Database Monitoring/Feedback Performance
Decision Implementation
Intelligence

Design

Choice

Salient Features of Modern MIS

Use of Web based GUIs for acquiring and displaying data Increasingly faster SQL processors and search engines to access / explore data Use of graphics and animation in GUIs Use of multi-layer clientserver architecture to serve large number of users (Client is Front end; server, back end) Component based software engineering Wide range of software products / packages Use of advanced mining/ analytical tools

Computer capabilities which assist (mainly)in T.P.S.

Capturing Storing Summarizing Arranging Verifying

Retrieving Calculating Reproducing Classifying Communicating

Note : For OAS, KMS, DSS and EIS more sophisticated capabilities of computer are used.

Tools for MIS

On Line Transaction Processing (OLTP) Internet based, interactive data capture and query processing Relational Data Base Management Mathematical Models, Business Analytics

M.I.S. Outputs
OLTP SYSTEM
RDBMS APPLICATION DEVELOPMENT SYSTEMS

DATABASE

Accounting Applications

Query Applications

Analysis Applications

Control Applications

Steps in Systems Development for routine M.I.S.

Acquiring Data, usually, through an On Line Transaction Processing System as well as devices such as Bar Code, RFID and Biometric terminals, or off line Data Entry Placing Data into Tables using a Relational Data Base Management System(e.g. ORACLE) Printing Reports or obtaining Screen Displays using RDBMS features like SQL and DML, mainly for Accounting Applications Query Applications Analysis Applications Control Applications

TYPES OF REPORTS, for each of the types of Applications

Statutory Compliance (Income Tax deducted at source from salary) Knowledge update (Budget Vs Actual, Report on slow moving items) Operation Update (Daily Sales Report, Product Delivery Report) Decision Analysis ( Sales up or down subsequent to price increase) Action Update (Whether urgent supplies sought have actually arrived)

Michael Porter on Competitive Advantage

Sustainable competitive advantage is achieved through either or combination of Cost Leadership, Differentiation and Focus. Specific activities through which a company can create competitive advantage are Inbound Logistics, Operations, Outbound Logistics, Marketing & Sales and Service Information , used strategically, should assist in achieving superior performance in any of the areas stated above, creating competitive advantage.

How to gain competitive advantage?

I.T. changes the context, creating new opportunities and new threats. Competitive advantage, depends on how well, and how effectively an organization adapts to forces of change. Explore possibility of re-engineering existing business using IT (like banks and newspapers) Use information to locate niches, new market segments - geographical, demographical, social etc use Data Mining Change structure e.g. Decentralized to Centralized ( e.g. BOLT in case of shares) or vice versa Use IT to add value Better service, less mistakes and earn better prices Increase efficiency, reduce costs, compete on lower price Enter new markets otherwise inaccessible ( thru eServices) e.g. Call Center Standardize, Improve control, expand business the way MNCs do

MIS and organizational change

MIS changes the organizations, by reducing levels in hierarchy, restructuring flow of work, changing products/ processes, making decisions data-centric (rather than judgmental) and making knowledge more important than seniority. However, as observed by Levitt, computers alone cannot change the organization. For that to happen, People, Tasks (what to do), Processes (how to do) and Technology have all to change simultaneously.

Herbert Simon Model 3 Phases

Intelligence phase involves scanning social, competitive and organizational environment and understanding/ identifying the problem Design phase involves generating alternatives to solve the problem and evaluating each of the alternatives qualitatively and quantitatively. Choice phase involves ranking the alternatives based on a variety of criteria and choosing the most suitable among them.
Note that the model does not include implementation and feedback, which is said to be its limitation.

HUMANS AS INFORMATION PROCESSORS- 1

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Humans have a psychological need for feedback. Humans have a psychological value for unused data. Humans have a tendency for over consumption of information for the following reasons: Having information is considered a sign of competence ( hence demand for Terminals and Passwords). Much of the information is gathered for supervision and not for decision making. Information is often gathered to persuade and to represent. For the above reasons, organizations favour information gathering activity.

HUMANS AS INFORMATION PROCESSORS- 2

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Information overload adversely affects the information processing performance of humans. 5. Individual differences in ability and approach result in higher or lower need for information, its form and processing. 6. Nonverbal inputs also contribute to information availability and processing. 7. Humans have a limited ability to absorb and analyze quantitative data.

TIPS FOR MIS DESIGNERS -1

1) Information systems should filter irrelevant data. 2) Info. System should assist in defining problem rather than leaving it to the users. 3) Codes for human use should not exceed 5 to7 characters.

TIPS FOR MIS DESIGNERS -2

4) System should highlight important differences as compared to assuming that humans will notice them. 5) System should provide statistical analysis of data averages, variances, co- relations etc. Data should be consistent, free of basis.

TIPS FOR MIS DESIGNERS -3

6) Information should be provided in the form needed. 7) Information should be built around an anchor point and provide for deviations from there. 8) System should provide alternatives in order of preferences.

TIPS FOR MIS DESIGNERS -4

9) System output should be understandable both by the novice and the skilled. 10) System should provide for feedback points such as data not received, not processed, not circulated etc. 11) System may contain some data which may
not be usable. The designers should develop tolerance towards such demands.

TIPS FOR MIS DESIGNERS -5

12) Information should be kept below the overload point. 13) Managers critical to the system must be included. 14) System should provide for short bursts of information to suit needs of some managers. 15) The system should provide summarized data but should also allow for easy browsing through raw data.

I.T and ITES Syllabus Topics

Evolution of computers,generations Tele-communication, Networks IT enabled services such as call centers, Geographical Information Systems

Example of GIS, indicating influence of political parties in Corporation Elections

Relational Data Base Management Systems (RDBMS)

As an example of RDBMS study three tables for a Train Reservation Systems viz. Form Table, Passenger Table and Train Table. Form Table is related to Passenger Table thru Form No. Form Table is related to Train Table thru Train Number. Two examples of SQL queries follow. Strength of the system is that despite simple table design, it is capable of handling millions of records, fast and accurately.

SQL Example 1- Train Reservation

Purpose List trains between Mumbai and Delhi Query select TrainNo, TrainName from Train_Table where From = Mumbai and To = Delhi

SQL Example 2- Train Reservation

Purpose Get passenger list for train 2423, compt SC7 and date = 23rd March 2012 Query select S-BNo, Name, Sex,Age from Form_Table, Passenger_Table where Form_table.FormNo = Passenger_Table.FormNo and TrainNo = 2423 and Date = 23-032012 and Compt = SC7

Data Warehousing and Data Mining (vs Dabases).

Data Warehouses are similar to Databases in that both maintain and access tables which may contain diverse data like numbers, text, pictures, audio clips, video clips etc. Data Warehouse has better analysis capabilities (OLAP) while Database has better transaction processing capabilities (OLTP). DB is write-optimized ; DW is read-optimized . DW is better for analytics. Note that DW and DM handle data in GB and TB. Data Mining is better designed for quantitative and statistical analysis, whereas DW creates and uses simpler analyses, relying on qualitative interpretation. All these DB, DW and DM have 5 capabilities Store, Maintain, Access, Analyze and Present the data.

Decision Support Systems(DSS) and Group Decision Support Systems(GDSS)

Decision Support Systems, in the past were based on low volume of data, and utilized special tools and models (like Linear Programming, Operations Research) for analysis. DSS has now been converted into Business Intelligence, or Analytics. It uses vast amount of data and analyses it thru sophisticated data warehousing and data mining tools.
Group Decision Support System uses Decision Support System methodology but allows a number of decision makers to work together to arrive at a decision acceptable to the group. One of the techniques used for GDSS is electronic brainstorming brainstorming thru an online chat. A variation of electronic brainstorming called Nominal Group Technique , where ideas generated are put to vote and selected, is also used. GDSS is more useful in case of virtual teams.

Business Analytics for Godrej Household Products Sales Force Automation (SFA)
SFA solution was implemented on Tablet computing devices with a view to capture transactions related to orders, collection and return of goods electronically and transmit them to the billing system and returns databases. The tablet computer also displays information about sales history, schemes, promotions and achievement Vs. target of salesmen. It can even suggest an order to the salesman for a particular outlet, based on its past record and current purchase. IBM XPD Desktop, located at the office, integrates data received thru tablet application with backend billing. The SFA solution utilizes IBM Business Analytics software.

E (Executive/ Enterprise/ Everybodys) Information System

E.I.S. started as Executive Information System, meant for senior executives but is currently used also at other levels where people need to take decisions based on latest and most relevant information. It uses data analysis tools and presentation techniques such as Executive Dashboards . Dashboards present information related to Key Result Areas (KRA) or Key Performance Indicators (KPI) in a single screen. Capability to drill down from aggregate data to components is an essential pre-requisite of EIS. Examples of dashboards follow.

Typical Dashboards.

Expert Systems and Artificial Intelligence

Expert Systems try to incorporate experts knowledge into computer software so as to assist decision making by non-experts (e.g. medical diagnosis, Tax planning). The Expert Systems have knowledge Data Base and inference engine (i.e. logic) which is used to draw inferences. Artificial Intelligence ventures into areas which has always required human intelligence. Language Translation and Speech Recognition are two examples. AI uses algorithms similar to human reasoning, so as to assist, if not to take decisions.

Management Issues in MIS (1) Information Security and Control

External Threats Thru Internet and Thru Remote Access Problems Hacking, Identity Theft, data loss Firewalls offer a partial solution Internal Threats Password theft, Misuse of authorization, malware (viruses), physical theft of Hardware and Software Anti Virus Solutions, Access Reviews, Frequent Change of passwords, back-ups and Business Process Continuity planning, physical controls, maintaining a log of all system activities (audit trails) are the techniques used to combat the threat. Periodic Information Security Audit is advisable for both.

Management Issues in MIS (2) Software Quality Assurance

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Software quality assurance covers attributes such as reliability, efficiency and promised performance . In order to assure quality of software, 3 aspects need to be attended to. Creating a quality profile Specifying qualitative and quantitative aspects of software ( such as number of problems reported, number of updates supplied) Process control thru Requirements, Design, Coding and Testing Checklists , software engineering, Documentation etc. Obtaining third party certification from agencies such as ISO about conformance to quality procedures.

Management Issues in MIS (3) Ethical Dimensions, Intellectual Property Rights, Global Information Systems

Ethical Aspects are mainly related to misuse of computer technology for personal benefit, intentional manipulation of data, indulging in cybercrime, violating data privacy, even insensitive automation. Intellectual Property Rights concern software and hardware piracy, violation of patents, breach of trade marks, breach of confidence relating to information held in trust. Managing Global Information Systems involve dealing with cultural, political and economic challenges posed by different countries, developing appropriate business and IT Strategies for the global marketplace and developing a portfolio of applications to support them.