MIS - UNIT 1 - B4 PDF

Table of Contents 1 What is MIS? 2 MIS Definition 3 MIS Meaning 4 Components of MIS 5 Objectives of MIS 5.1 Data Capturing 5.2 Processing of Data 5.3 Storage of Information 5.4 Retrieval of Information 5.5 Dissemination of Information 6 Characteristics of MIS 6.1...

Table of Contents 1 What is MIS? 2 MIS Definition 3 MIS Meaning 4 Components of MIS 5 Objectives of MIS 5.1 Data Capturing 5.2 Processing of Data 5.3 Storage of Information 5.4 Retrieval of Information 5.5 Dissemination of Information 6 Characteristics of MIS 6.1 System Approach 6.2 Management Oriented 6.3 Need-Based 6.4 Exception Based 6.5 Future Oriented 6.6 Integrated 6.7 Long Term Planning 6.8 Sub-System Concept 6.9 Central Database 7 Advantage of MIS 8 Role of MIS 8.1 Decision making 8.2 Coordination among the department 8.3 Finding out Problems 8.4 Comparison of Business Performance 8.5 Strategies for an Organization 9 Challenges of MIS 9.1 High Cost 9.2 Training of Employee 9.3 Maintenance Cost 11 imitations of MIS 11 Requirements of Management Information System What is MIS? MIS is an organised integration of hardware and software technologies, data, processes, and human elements. It is a software system that focuses on the management of information technology to provide efficient and effective strategic decision making. What is MIS? MIS is the acronym for Management Information Systems. MIS is a set of procedures which, when executed, provides information to support decision making. Management Information System A Management Information System is An integrated user-machine system For providing information To support the operations, management, analysis, and decision-making functions, In an organization The system utilizes Computer hardware & software Manual procedures Models for analysis, planning, control, and decision making, and A database MIS Definition Management Information System (MIS) is an integrated man/machine system for providing information to hold up the operations, management and decision making functions in an organization.G.B. Davis A formal method of collecting timely information in a presentable form in order to facilitate effective decision making and implementation, in order to carry out organisational operations for the purpose of achieving the organisational goals.Walter I. Kennevan A Management Information System is an organized portfolio of formal systems for obtaining, processing, and delivering information in support of the business operations and management of an organization.Zwass MIS Meaning MIS Meaning: A management information system is an acronym of three words, viz., Management, information, system. In order to fully understand the term MIS, let us try to understand these three words. 1. Management: Management is the art of getting things done through and with the people in formally organised groups. 2. Information: Information is data that is processed and is presented in a form which assists decision-making. It may contain an element of surprise, reduce uncertainty or provoke a manager to initiate an action. 3. System: A system is an orderly grouping of interdependent components linked together according to a plan to achieve a specific goal. The term system is the most loosely held term in management literature because of its use in different contexts. Structure of Management Information System The structure of MIS can be described in terms of its operating elements, decision support, managerial activity, and organisational function. 1. Operating elements of MIS: The operational elements of MIS are: (a) Physical components: The physical components of an information system include i) Hardware - which refers to the physical computer instrument and related devices performing various functions like input, output, secondary storage, CPU and Communication. (ii) Software - which refers to the instructions given to the hardware to perform various operations. (iii) Database - which is the collection of logically related and centrally controlled records containing various stored data. (iv) Procedures - which include the set of instructions to the users, data preparation group, operating personnel, etc. (v) Operating personnel - they may be computer operators system analysts, programmers, data administrators, or data preparation personnel. (b) Processing functions: On the basis of processing functions, information system consists of the following: (i) Processing transactions - transaction is an activity, which acts as the source of data. The information system functions include the recording and measurement of these transactions. (ii) Maintaining master files - it involves the creation and maintenance of master files for permanent storage of data. (iii) Producing reports - one of the major jobs of the information system is to generate and provide Structure of Management Information System reports to the user at various levels of management. (iv) Processing inquiries - information systems provide responses to inquiries from various levels. DSS (v)Process interactive support: applications information systems provide interactive facilities to end-users and facilitate system planning, analysis, and decision-making. They enable the user to ask questions and receive immediate results. (c) Output for users: The output provided by an information system to the end-user may take any of the following forms: (i) Transaction documents or screen - examples are purchase order, payroll, sales invoice, etc. (ii) Pre-planned reports containing regular contents. (iii) Pre-planned inquiry responses. (iv) User-machine dialog results - which refers to the way in which a user can interact with a system to arrive at a solution.  (v) Ad hoc reports and enquiry responses - which occur at regular intervals and receive data for analyses whose format cannot be pre-planned. (d) Management activities I. For Senior Management: strategic planning and policy making II. For Middle management: tactical planning and execution III. For Junior Management: Operational Planning and controls For Operations / staff: transaction processing and Response to queries Components of MIS The major components of MIS are: Components of MIS People Resources: People are required for the operation of all information system. Data Resources: Database holds processed and organised data. Software Resources: It includes all sets of information processing instruction. Hardware Resources: Include all physical devices and materials used in information processing. Process: is a step undertaken to achieve a goal. Objectives of MIS What is MIS objective: MIS has five major objectives which include: 1. Data Capturing 2. Processing of Data 3. Storage 4. Retrieval 5. Dissemination Objectives of MIS These MIS objective are discussed below in detail. Data Capturing MIS capture data from various internal and external sources of the organization. Data capturing may be manual or through computer terminals. Processing of Data The captured data is processed to convert into the required information. Processing of data is done by such activities as calculating, sorting, classifying, and summarizing. Storage of Information MIS stores the processed or unprocessed data for future use. If any information is not immediately required, it is saved as an organization record, for later use. Retrieval of Information MIS retrieves information from its stores as and when required by various users. Dissemination of Information Information, which is a finished product of MIS, is disseminated to the users in the organization. It is periodic or online through a computer terminal Characteristics of MIS What is MIS Characteristic? MIS plays a very important role in every aspect of an organization. These characteristics are generic in nature. Following are the characteristics of MIS: 1. System Approach 2. Management Oriented 3. Need-Based 4. Exception Based 5. Future Oriented 6. Integrated 7. Long Term Planning 8. Sub-System Concept 9. Central Database Characteristics of MIS System Approach The information system follows a System’s approach. The system’s approach implies a holistic approach to the study of system and its performance in the light for the objective for which it has been constituted. Management Oriented The top-down approach must be followed while designing the MIS. The top-down approach suggests that the system development starts from the determination of management needs and overall business objectives. The MIS development plan should be derived from the overall business plan. Management oriented characteristic of MIS also implies that the management actively directs the system development efforts. Need-Based MIS design and development should be as per the information needs of managers at different levels, strategic planning level, management control level and operational control level. In other words, MIS should cater to the specific needs of managers in an organization’s hierarchy. Exception Based MIS should be developed on the exception-based reporting principle, which means an abnormal situation, i.e. the maximum; minimum or expected values vary beyond tolerance limits. In such situations, there should BE exception reporting to the decision-maker at the required level. Future Oriented Besides exception-based reporting, MIS should also look at the future. In other words, MIS should not merely provide past or historical information; rather it should provide information, on the basis of projections based on which actions may be initiated. Integrated Integration is a necessary characteristic of a management information system. Integration is significant because of its ability to produce more meaningful information. For example, in order to develop an effective production scheduling system, it is necessary to balance such factors as setup costs, Workforce, Overtime rates, Production capacity, Inventory level, Capital requirements and Customer services. Long Term Planning MIS is developed over relatively long periods. Such a system does not develop overnight. A heavy element of planning is involved. The MIS designer must have the future objectives and needs of the company in mind. Sub-System Concept The process of MIS development is quite complex and one is likely to lose insight frequently. Thus, the system, though viewed as a single entity, must be broken down into digestible sub-systems which are more meaningful at the planning stage. Central Database A central database is a mortar that holds the functional systems together. Each system requires access to the master file of data covering inventory, personnel, vendors, customers, etc. It seems logical to gather data once, validate it properly and place it on a central storage medium, which can be accessed by any other subsystem. Advantage of MIS A good management information system can be used not only for the storage of electronic data alone but must be able to support the analysis required by management. There are many advantages of MIS which are utilised by manager to achieve organization goal. The following are some of the benefits of a good MIS. 🠶 Companies are able to highlight their strengths and weaknesses due to the presence of revenue reports, employees' performance record etc. 🠶 Giving an overall picture of the company and acting as a communication and planning tool. 🠶 The availability of the customer data and feedback can help the company to align their business processes according to the needs of the customers. 🠶 Information is considered to be an important asset for any company in the modern competitive world. The consumer buying trends and behaviours can be predicted by the analysis of sales and revenue reports from each operating region of the company. 🠶 Better management of resources reducing the cost of operations. 🠶 IMPROVED SECURITY : restricted access to the database server using biometric and other security measures. 🠶 BACKUP SYSTEMS : Due to client \server architecture , the application of object technology and use of the front end tools, the process changes can be easily carried out in a short duration of time.  🠶 The tools available to the decision maker are friendly whereby he is equipped to make decision and execute it simultaneously. 🠶 REDUCE DATA DUPLICATION 🠶 Fast data processing and information retrieval 🠶 Increased customer satisfaction 🠶 Improved quantity and quality of information 🠶 Improved quality and quantity management decisions 🠶 Improved responsiveness number of the competitor’s condition 🠶 Improved operational efficiency and flexibility 🠶 Improved quality of internal and external communications 🠶 Improved quality of planning 🠶 Improved quality control and supervision Limitations of MIS Even though MIS has many benefits but it also has its limitations. Limitations of MIS are discussed below: While MIS may solve some critical problems but it is not a solution to all problems of an organisation. E.g A company might use MIS to analyse market trends and sales data but still struggle to innovate and stay ahead of competitors. Effective strategic planning and innovation require leadership to think beyond the data and envision new products, services, or business models. E.g A team might use a project management MIS to track tasks and deadlines but still suffer from poor collaboration and frequent conflicts. Addressing this requires team-building exercises, conflict resolution training, and fostering a collaborative culture. E.g A company might use a Customer Relationship Management (CRM) system to keep track of customer interactions and preferences but still receive poor customer satisfaction ratings because the customer service representatives lack soft skills and personal touch. It cannot meet the special demands of each person. Example: An engineer working on a complex problem might have a unique way of approaching the issue, using specific data sets and analytical methods that are not supported by the standard MIS tools. They  might need to export data from the MIS and use specialized software or custom scripts to conduct their analysis effectively. A company’s MIS might schedule standard training sessions for all employees based on department needs. However, an employee who prefers hands-on learning and has an interest in a specific niche area might find the general training ineffective and misaligned with their career goals. Meeting such personalized demands would require a more tailored approach, possibly facilitated by direct human interaction and customized development plans. MIS if designed in an improper manner does not serve the management and hence is of little relevance. The MIS is not good if the basic data is obsolete and outdated. Mostly information provided by the MIS is in quantitive form. Hence, it ignores the qualitative information like the attitude of an employee. Role of MIS A management information system (MIS) plays an important role in business organizations. What is MIS role: There are many roles of MIS and some of the important MIS role are discussed below: 1. Decision making 2. Coordination among the department 3. Finding out Problems 4. Comparison of Business Performance 5. Strategies for an Organization Role of MIS Decision making Management Information System (MIS) plays a significant role in the decision-making process of any organization. In any organization, a decision is made on the basis of relevant information which can be retrieved from the MIS. Coordination among the department Management Information System satisfy multiple needs of an organization across the different functional department. Finding out Problems As we know that MIS provides relevant information about every aspect of activities. Hence, if any mistake is made by the management then MIS, information will help in finding out the solution to that problem. Comparison of Business Performance MIS store all past data and information in its Database. That why the management information system is very useful to compare business organization performance. Strategies for an Organization Today each business is running in a competitive market. An MIS supports the organization to evolve appropriate strategies for the business to assent in a competitive environment. Challenges of MIS What is MIS Challenges: There are three major challenges of MIS: high cost, training of employees and maintenance cost. These are briefly discussed below: 1. High Cost 2. Training of Employee 3. Maintenance Cost High Cost Development of new computerized based information system is a problem for the organization due to the cost factor and it creates problems because with the change of time there is need of up-to-date of the information system. Training of Employee Employees should have the capacity of learning of the information system with the changing competitive and business environment; otherwise it will be difficult for the organization to stay in the market. Maintenance Cost Sometimes a problem arises due to server crash and website crash. Sometimes it leads to the loss of information. So, maintenance cost is needed to tackle the above problem. MIS - The factors of Success and Failure Many organisations use MIS successfully, others do not. Though the hardware and the software is the latest and has appropriate technology, its use is more for the collection and storage of data and its elementary processing. There are some factors which make the MIS a success and some others, which make it a failure. These factors can be summarized as follows: Factors Contributing to Success If a MIS is to be success then it should have all the features listed as follows: The MIS is integrated into the managerial functions. It sets clear objectives to ensure that the MIS focuses on the major issues of the business. An appropriate information processing technology required to meet the data processing and analysis needs of the users of the MIS is selected. The MIS is oriented, defined and designed in terms of the user's requirements and its operational viability(the ability to sustain a business) is ensured. The MIS is kept under continuous surveillance, so that it is modified according to the changing information needs. MIS focuses on the results and goals, and highlights the factors and reasons for non achievement. MIS is not allowed to end up into an information generation mill avoiding the noise in the information and the communication system.(methods of info generation: observation,thought process,imagination, experimentation , processing, various events).  The MIS recognizes that a manager is a human being and therefore, the systems must consider all the human behavioral factors in the process of the management. The MIS recognizes that the different information needs for different objectives must be met with. The globalisation of information in isolation from the different objectives leads to too much information and information and its non-use. The MIS is easy to operate and, therefore, the design of the MIS has such features which make up a user-friendly design. MIS recognizes that the information needs become obsolete and new needs emerge. The MIS design, therefore, has a basic potential capability to quickly meet new needs of information. The MIS concentrates on developing the information support to manager critical success factors. It concentrates on the mission critical applications serving the needs of the top management. Factors Contributing to Failures Many a times MIS is a failure. The common factors which are responsible for this are listed as follows: The MIS is conceived as a data processing and not as an information processing system. The MIS does not provide that information which is needed by the managers but it tends to provide the information generally the function calls for. The MIS then becomes an impersonal system. Underestimating the complexity in the business systems and not recognizing it in the MIS design leads to problems in the successful implementation. Adequate attention is not given to the quality control aspects of the inputs, the process and the outputs leading to insufficient checks and controls in the MIS. Lack of training and appreciation that the users of the information and the generators of the data are different, and they have to play an important responsible role in the MIS. The MIS does not meet certain critical and key factors of its users such as a response to the query on the database, an inability to get the processing done in a particular manner, lack of user-friendly system and the dependence on the system personnel.  A belief that the computerized MIS can solve all the management problems of planning and control of the business. Lack of administrative discipline in following the standardized systems and procedures, wrong coding and deviating from the system specifications result in incomplete and incorrect information. The MIS does not give perfect information to all the users in the organization. Requirements of Management Information System Following are the requirements of a management information system: 1. Database 2. Qualified System and Management Staff 3. Top Management Support 4. Active Participation of Operating Management 5. Control and Maintenance of Management Information System 6. Evaluation of Management Information System Implementation task of MIS Given in the form of pdf pls refer to that for reference. DSS and its types. Decision Support Systems (DSS) are a class of computerised information systems that support decision-making activities. DSS are interactive computer-based systems and subsystems intended to help decision makers use communications technologies, data, documents, knowledge and/or models to complete decision process tasks. A decision support system may present information graphically and may include an expert system or artificial intelligence (AI). It may be aimed at business executives or some other group of knowledge workers. A decision support system gathers and analyzes data, synthesizing it to produce comprehensive information reports. In this way, as an informational application, a DSS differs from an ordinary operations application, whose function is just to collect data. The DSS can either be completely computerized or powered by humans. In some cases, it may combine both. The ideal systems analyze information and actually make decisions for the user. At the very least, they allow human users to make more informed decisions at a quicker pace. 1)VIDEO LINK OF DSS 2) COMPARISONS There are a number of Decision Support Systems. These can be categorised into five types: Communication-driven DSS is a tool or software that helps people work together to make decisions. Most communications-driven DSSs are targeted at internal teams, including partners. Its purpose are to help conduct a meeting, or for users to collaborate. The most common technology used to deploy the DSS is a web or client server. Examples: chats and instant messaging softwares, online collaboration and net-meeting systems. Data-driven DSS Most data-driven DSSs are targeted at managers, staff and also product/service suppliers. It is used to query a database or data warehouse  to seek specific answers for specific purposes. It is deployed via a client/server link, or via the web. Examples: computer-based databases that have a query system to check (including the incorporation of data to add value to existing databases. Document-driven DSS Document-driven DSSs are more common, targeted at a broad base of user groups. The purpose of such a DSS is to search web pages and find documents on a specific set of keywords or search terms. The usual technology used to set up such DSSs are via the web or a client/server system. Examples: Popular search engines like Google assist users in finding documents and articles Knowledge-driven DSS: Knowledge-driven DSSs or 'knowledge base' are they are known, are a catch-all category covering a broad range of systems covering users within the organization setting it up, but may also include others interacting with the organization - for example, consumers of a business. It is essentially used to provide management advice or to choose products/services. The typical deployment technology used to set up such systems could be client/server systems, the web, or software running on stand-alone PCs. Model-driven DSS Model-driven DSSs are complex systems that help analyse decisions or choose between different options. These are used by managers and staff members of a business, or people who interact with the organization, for a number of purposes depending on how the model is set up - scheduling, decision analyses etc. These DSSs can be deployed via software/hardware in stand-alone PCs, client/server systems, or the web. Classification of DSS: DSS have been classified in different ways as the concept matured with time. As. and when the full potential and possibilities for the field emerged, different classification systems also emerged. Hackathorn and Keen (1981) classified DSS as, 1. Personal DSS 2. Group DSS 3. Organizational DSS  Alter (1980) opined that decision support systems could be classified into seven types based on their generic nature of operations. He described the seven types as, 1. File drawer systems. This type of DSS primarily provides access to data stores/data related items. 2. Data analysis systems. This type of DSS supports the manipulation of data through the use of specific or generic computerized settings or tools. 3. Analysis information systems. This type of DSS provides access to sets of decision oriented databases and simple small models. 4. Accounting and financial models. This type of DSS can perform ‘what if analysis’...A what-if analysis is a process of decision-making where a business or person looks at all the choices that are possible based on limited information and calculate the outcomes of different decision paths. 5. Representational models. This type of DSS can also perform ‘what if analysis’ and calculate the outcomes of different decision paths, based on simulated models.(A simulation is a model that mimics the operation of an existing or proposed system, providing evidence for decision-making by being able to test different) 6. Optimization models(Optimization modelling is a mathematical approach used to find the best solution to a problem from a set of possible choices, considering specific constraints and objectives). This kind of DSS provides solutions through the use of optimization models which have mathematical solutions. 7. Suggestion models. This kind of DSS works when the decision to be taken is based on well-structured tasks.