CONCEPT AND OVERVIEW OF MIS

FRAMEWORK OF MIS

Information and information processing vital part of human beings, contribute heavily to the success or failure of their different activities. It becomes more relevant in case of formal organizations where different individuals, different functions but interrelated. The working of these interrelationship is possible only through exchange of information.

MANAGEMENT IN MIS

Different writers, different definitions Basically of two types: Decision oriented definitions and Function-oriented definition

Management process in terms of decision making

Peter Drucker: Life of manager is a perpetual decision making activity Stanley: Management is simply the process of decision making and control ..Management means decision making

MANAGEMENT IN MIS

continued

Function-oriented definitions emphasis on various functions performed by managers

Henry Fayol: To manage is to forecast and to plan, to organize, to coordinate and to control. Process involving planning, organising, staffing, directing, and controlling

Basic features of Management

Organized Activities: Any organization want to progress towards the achievement of their objectives through coordinated efforts of people.

Existence of objectives: Basic criteria for existence for every human organization. Relationship among Resources: ResourcesMoney, machine, Material and Manpower (people/employee), integration and efficient utilization of these resources to achieve the goal.

Basic features of Management

continued

Working with and through people: Proper integration of human resources which in turn utilise other resources. Sizeable proportion of management principles relates to how human being put for better efforts in the organisation. Decision Making: Management involves decision making at various levels. Selecting the most appropriate alternatives. The success or failure of managers can be judged by the quality of decisions that they make.

Ex. Indra Nooyi: Decision to merge Pepsi Cola Co. with Frito Lay Inc. leading to formation of Pepsico.

INFORMATION IN MIS

Information is data that has been processed into a form that is meaningful to the recipient and is of real or perceived value in current or prospective actions or decisions. Relation of data to information:
Operation Level Summarised data Management level Information + decision rules = managerial decisions

Transaction data

Information + decision rules = Operational decisions

Characteristics of Useful Information

An information may be termed as useful only when it is able to stimulate desired actions from its recipient. The desired action is one that lead to achievement of organizational objectives. Three major characteristics of useful information are;

Timeliness: must be available on appropriate time Adequacy: must be adequate to initiate desired action Form: it should be made available in the form which suits the recipients most.

SYSTEM IN MIS

A system is an interrelated set of elements that function as a whole. A system is composed of parts and subparts in orderly arrangement according to some scheme or plan.

CONCEPT OF MIS

1.

Two types of problems emerge in defining MIS

MIS as a computer based information system (CBIS), while many include manual and CBIS in MIS. MIS is not new only computerisation is new. MIS Scope: MIS is comprehensive, includes all the systems that provide information to managers irrespective of their levels. While others say that MIS for lower and middle level and for higher level management it is DSS (Decision Support System)

2.

Characteristics of MIS

Comprehensive Integrated Coordinated Transformation of data into information Relevant Information Conformation with Managers Styles and Characteristics Selective sharing of Data Feedback

Misconceptions about MIS

MIS is a computerized information system. More data lead to effective decision making. Managers know their information needs. Managers do not have to understand how MIS works.

Limitations of MIS

Quality of output of MIS governed by quality of inputs and processes. Emphasis quantitative aspects, ignores qualitative aspects such as attitudes, morale, feelings of employees etc. May not have flexibility to quickly updates with changing requirements. Limitation in tailor made information, hampering the effectiveness of managers

Limitations of MIS

continued

Culture of not sharing the information of an organization may hamper the MIS effectiveness Frequent change in top management which brings its own style may also hamper MIS effectiveness. MIS is just a tool in the hand of managers, it cannot altogether avoid judgemental decision making. Also, a costly affair.

INFORMATION SYSTEM (IS)

CONTAINS INFORMATION ABOUT AN ORGANISATION AND ITS SUROUNDING ENVIRONMENT. THREE BASIC ACTIVITIES INPUT, PROCESS, OUTPUT ENVIRONMENTAL FACTORS, SUCH AS CUSTOMERS, SUPPLIERS, COMPETITORS, STAKEHOLDERS AND REGULATORY AGENCIES, INTERACT WITH THE ORGANISATION AND ITS IS.

Three Activities in an IS

Input

Captures or collects raw data from within the organization or from its external environment.
Convert raw input into a more meaningful form Transfer processed info to the people who will use it or to the activities for which it will be used. Returned to appropriate members of the organization to help them evaluate or correct input stage.

Process

Output

Feedback

SUPPLIER

CUSTOMER

ORGANISATION INFORMATION SYSTEM

Processing

Input

Classify, arrange & calculate

Output

FEEDBACK

REGULATORY AGENCIES

STAKEHOLDERS
ENVIRONMENT

COMPETITORS

TOYOTAS Vehicle Orders Mgmt. System

Raw Input:

Consumer order data including the dealer identification number, model, colour, and optional features of each car ordered.
Toyotas computers store this data and process it to locate the models with options specified by the customer that are either in inventory or under production, to place orders to national distributors, to consolidate the orders, and then transmit them to factories.

Processing:

TOYOTAS Vehicle Orders Mgmt. System

Toyotas production system then tell its factories how many vehicles to manufacture for each model, colour & option package, How much bill for each vehicle, and where to ship the vehicles. Shipping instructions, invoices, production reports Meaningful information such as which models, colours, & options are selling in which locations The most popular models & colours, which dealers sales most cars.

Output:

Feedback:

Dimensions of information systems

Using IS effectively requires an understanding

Organizations Managements Technology

Organizations perspective

Key elements of an organization

Structure, business processes, and culture.

Structure

Different levels and specialists Division of labor

Organization require many different kinds of skills and people

Knowledge workers Data workers Production and service workers

Business functions
Sales and marketing, manufacturing and production, finance and accounting, human resources (IS is created to support functions)

Organization coordinate work

Through a structured hierarchy

Authority and responsibility

Formal rules for accomplishing tasks ex. invoice, customer complaints

Through its business processes

(IS is created to support coordination)

Culture

Fundamental sets of assumptions, values, ways of doing things Accepted by most of its members
Different levels and specialists create different interests and points of view

Organizational politics

Management perspective

Managements job

Make sense out of many situations faced by organization Make decisions Formulate action plans to solve organizational problems Set the organizational strategy Allocate the human and financial resources Exercise responsible leadership Create new products and services Re-create the organizations

Information & information systems play powerful role

Technology perspective

Computer hardware Software Storage technology Communication technology

Network Elastic

Internet

Network can be added or removed freely Failures occur in parts of system, the rest will continue to operate

Technology perspective

New Universal technology platform Foundation of new products, services, strategy, and business model Intranet: internal corporate network based on Internet technology Extranet: private intranet extended to authorized users outside the organization World wide web (W W W) Internet service Universal standard for storing, retrieving, formatting, and displaying info

Business perspective on Info Systems

Important instruments for creating values

Real economic value

Increase in productivity Increase in revenue Superior long-term strategic positioning Governmental regulations Environmental demands Required to stay in business

Costs of doing business

Business perspective on Info Systems

Information Value Chain

Raw info

Systematically acquired Transformed through various stages Better management decision More efficient business process Higher firm profitability

Add value to that information

Information Value Chain

From a business perspective, information systems are part of a series of value-adding activities for acquiring, transforming and distributing information that managers can use to improve decision making, enhance organizational performance, and ultimately increase firm profitability

Toyotas Vehicle Order Management System

Solves the business challenge presented by fierce competition and rapidly changing consumer preferences.

Creates value for Toyota by making its ordering and production processes more efficient and effective.