Recent Trends in MIS

Management Information System

Definition: o Computer-based system that makes information available to the users with similar needs

o Information describes the firm or one of the major systems

o Periodic reports, special reports and outputs of mathematical simulations o Output is used to make decisions to solve the firms problems

A View of MIS Model

Organizational problem solver

Report writing software

Mathematical models

Data Base

Benefits of MIS
Facilitates Planning Quick Reflexes Minimizes Information Overload

Enhances Supply Chain Management

Encourages Decentralization

Core Competencies

Brings Coordination

Information Flow Channel

Make Control Easier

Limitations of MIS
o Quality of outputs is based on the quality of inputs and processes o Static MIS system may not have adaptability with the fast changing and complex environment o MIS cannot provide information for every type of decision o MIS has focus on quantitative factors o MIS is not so useful for making non-programmed decisions o MIS effectiveness is linked with changes in top management and organizational structure

Decision Support System

o Supports business or organizational decisionmaking activities o Information supported : o inventories of information assets from data warehouses o comparative sales figures between one period and the next o projected revenue figures based on product sales assumptions

Decision Support System

Fundamental Components

Database

Model

User Interface

Classification of Components of DSS

o Inputs: Factors, numbers, and characteristics to analyze o User Knowledge and Expertise: Inputs requiring manual analysis by the user o Outputs: Transformed data from which DSS "decisions" are generated o Decisions: Results generated by the DSS based on user criteria

Applications of DSS
Clinical decisions for medical diagnosis Engineering projects Verifying credibility of loans applicant

Agricultural production
Sustainable development Forest management

Benefits of DSS
Improves personal efficiency Speed up the process of decision making

Increases organizational control

Encourages exploration Creates a competitive advantage over competition Reveals new approaches to thinking about the problem space Helps automate managerial processes

Executive Information Systems

o Def: It is a set of management tools supporting the information and decision-making needs of management by combining information available within the organization with external information in an analytical framework.
o Emphasis is on graphical displays and easy-to-use user interfaces o Offers strong reporting and data mining capabilities

Applications of EIS
o Manufacturing
o Evaluation of vendors, buyers, purchased materials o Inventory planning and control

o Marketing
o sales forecasting o Role of price and quality in competition o Market trends

o Finance
o review financial ratios & highlight financial trends o recognizes the importance of cost standards and flexible budgeting o Industry statistics

Advantages and Disadvantages

Advantages
Offers efficiency to decision makers
Timely delivery of company summary information Timely delivery of company summary information Timely delivery of company summary information

Disadvantages
Information overload for some managers High implementation costs System may become slow, large, and hard to manage May lead to less reliable and less secure data

Project Management

Project Management
o The principal goal of project management is to meet customer expectations, constraints and requirements in a timely manner
o PMIS contains the intelligence essential to the effective planning, organization, directing and control of the project o Many businesses are choosing to implement PM solutions in order to get an organization-wide view of projects and identify which are mission-critical for the business and to help execute those projects efficiently

SDLC

Project Management Software

o They offer better control and efficiency, ensuring the successful completion of the projects on time and within budget, respecting the company's work processes
o It thus eliminating the learning curve and associated costs o PM software covers many types of software to help in project management including scheduling, cost control and budget management, resource allocation, collaboration software, etc.

Project Management Software

o Microsoft Office Project Server
o Oracle Project Portfolio Management

o TeamworkPM
o eGroupWare

EDI

EDI
o Electronic Data Interchange; developed in the 1980s it was the first type of IT system to improve communications with business partners o It is the computer to computer exchange, between two companies, of standard business documents in electronic format without human intervention. E.g. Purchase orders, invoices, etc. o Designed to be independent of communication and software technologies i.e. it can be transmitted using any methodology agreed to by the sender and recipient. E.g. EDI via VAN, Internet based EDI, AS1, AS2, etc

EDI
o EDI is very useful in supply chain. o EDI is used in nearly all the major industries such as automotive, aerospace, retail, finance and CPG sectors.

o These systems became the basis for electronic markets, which later developed into electronic commerce.

Order Delivery Cycle

Without EDI

With EDI

Benefits of EDI
o A faster business cycle o Increased reduced costs o Reduced errors, such as shipping and billing errors.

o Automation of business procedures

o Can be an important component of just-in-time production systems o Solution to supply chain problems like bullwhip o Can be used as a catalyst for gaining efficiencies across organisational boundaries, this strategic potential is expected to be, in the medium term, even more significant that the short-term cost, speed and quality benefits.

Drawbacks of EDI
o Accompanying business process change with adoption of EDI o Cost in time and money in the initial set-up o Exchanging documents with external entities and integrating that data into the companys internal systems should have appropriate checks and balances

Data Mining
o Data Mining is the process of finding correlations or patterns among dozens of fields in large relational databases
extraction of interesting (non-trivial, implicit, previously unknown and potentially useful) patterns or knowledge from huge amount of data o data mining refers to extracting or mining knowledge from large amounts of data
o

o Discover Previously unknown data relationships, dependencies, or trends

characteristics,

o Alternative name - Knowledge discovery (mining) in databases (KDD)

Mining Large Data Sets

o There is often information hidden in the data that is not readily evident o Human analysts may take weeks to discover useful information o Much of the data is never analyzed at all
4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 1995 1996 1997 1998 1999

The Data Gap

Number of analysts

Extraction of Knowledge from Data

Knowledge Discovery Process

Data Mining & Warehouse Data

o Data Warehousing provides Enterprise with a memory the

o Data Mining provides Enterprise with intelligence

the

Data Mining Methods

o Prediction Methods
Use some variables to predict unknown or future values of other variables o Types: Regression, Classification, Collaborative Filtering
o

o Description Methods
Find human-interpretable patterns that describe the data o Types: Clustering / similarity
o

Results of Data Mining

o Forecasting what may happen in the future o Classifying people or things into groups by recognizing patterns o Clustering people or things into groups based on their attributes o Associating what events are likely to occur together o Sequencing what events are likely to lead to later events

Data Mining is NOT

o Brute-force crunching of bulk data o Blind application of algorithms o Going to find relationships where none exist o Presenting data in different ways o A database intensive task o A difficult to understand technology requiring an advanced degree in computer science

Applications of Data Mining

o Banking: loan/credit card approval - predict good customers based on old customers o Customer relationship management - identify those who are likely to leave for a competitor o Targeted marketing - identify likely responders to promotions o Fraud detection: telecommunications, financial transactions from an online stream of event identify fraudulent events o Manufacturing and production - automatically adjust knobs when process parameter changes o Molecular/Pharmaceutical - identify new drugs o Scientific data analysis - identify new galaxies by searching for sub clusters o Web site/store design and promotion - find affinity of visitor to pages and modify layout

Supply Chain Management

Supply Chain Organizational Dynamics

o Remote Input/output mode: In this case the member participates from a remote location with in the application system supported by one or more higher-level participants. o Application processing node: In this case a member develops and shares a single application such as an inventory query or order processing system. o Multi participant exchange node : In this case the member develops and shares a network interlinking itself and any number of lower level participants with whom it has an established business relationship. o Network control node: In this case the member develops and shares a network with diverse application that may be used by many different types of lower level participants. o Integrating network node: In this case the member literally becomes a data communications/data processing utility that integrates any number of lower level participants and applications in real times.

Framework for impact of IT on SCM

Thank You
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