Download Management Information System MIS = Decision Information System

Management Information System
MIS =
Decision Information System
DIS =
Business Processes + Computer
H/W + Communication Networks /
internet + Software =
Info. for Management Control and
Decisions
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What is MIS?
MIS- it is a system that access, organizes and
reports on organizational information, needed
for repetitive decision making in functional
areas, usually by middle managers.
 Provides
information to the managers in
the functional areas.
 “MIS is the system which makes available
the right information to the right person, at
the right place at the right time, in the right
form and at the right cost”.
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Management Information Systems
Chapter 1: Information Systems in Global Business Today
Functions of an Information System
An information system
contains information about an
organization and its
surrounding environment.
Three basic activities—input,
processing, and output—
produce the information
organizations need. Feedback
is output returned to
appropriate people or activities
in the organization to evaluate
and refine the input.
Environmental actors, such as
customers, suppliers,
competitors, stockholders, and
regulatory agencies, interact
with the organization and its
information systems.
Figure 1.4
1.3
Copyright © 2016 Pearson Education, Inc.
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
Software categories
 System
software – generalized program that
manage the resources of the computer
 OS –Operating System, takes care of allocation/
assignment of computer resources.

Process management; multiprogramming; time sharing;
multiprocessing; virtual memory; fault tolerance; GUI
Language translators / Compilers
 Utility programs like word, sort etc.,
 Communication software

 Application
software [ DIS, MIS , SAP Etc.,]
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Functional sub-systems of MIS:
Different Sub-Systems in a Typical
Organization and their uses
Marketing
Sales forecasting, sales planning, customer and sales
analysis
Manufacturing
Production planning and scheduling, cost control analysis
Logistic
Planning and control of purchasing, inventories and
distribution
HR
Human Resources requirements, management etc.,
Finance & Accounting
Financial analysis, cost analysis, capital requirement,
planning, income measurement
Information Processing
Information Systems (IS) management, cost-benefit
analysis
Top Management
Strategic planning, resource allocation, monitoring & control
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Your
customer SCM
Bill of Material
(BOM)
Stores &
Inventory
Control
Purchase
Suppliers
Master Prod.
Schedule
(MPS)
Material Requirement
Planning
(MRP)
Production &
Shop Floor
Control
Sales Order
Processing
(SOP)
Cost Accounts
Financial
Accounting
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MIS as seen by the users
Management- reports, analysis,
strategic planning, decision
making
Staff specialist – information for
analysis, planning and
reporting
First level manager – obtain
operational data, scheduling,
controlling
Clerical personal – operations
and handle transactions
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Contemporary approach of MIS
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To achieve strategic competitive edge
1.
2.
3.
4.
5.
6.
7.
8.
What business the organization is in?
What existing business activities should be spun off?
What new activities should be under taken?
How to protect organization from business swings?
What are the competitors doing and can do ?
What drives the competitors, as shown by their objectives?
What do the competitors believe about themselves and the
industry?
What are the competitors’ capabilities ?
Competitor Analysis; Business Intelligence
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Understanding a computer based System

Computer system is a combination of;
 Hardware
 Communication
network / internet
 Software [ business process & rules,
converted into Computer understandable
programs]
 Data
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


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
Components of a computer
CPU Central Processing Unit
Input device – data entry devices , terminals, mobiles
Output device - Printers, terminals, mobiles
Storage devices - Hard disc, cloud etc.,
Physical media to link various communication devices.
connectors, wires-cables etc.,
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Computer categories
Super computer
 Main frame computer
 Mini computer
 Micro computer
 Laptops
 Mobile computers [ phones, tablets Etc.,]

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
Development stage:
 Physical
system design
 Physical database design
 Program development
 Procedure development (user
manual/deliverables)
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
Transaction processing:
 Transaction
processing has relevance for the
following reasons:
Information
 Action
 Investigational
 Examples of Transactions : Indent for raw material,
Order for an item, Bank cash / cheque deposit slip,
cheque etc.,

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
Data processing modes:
 Computers
are used for the processing of data,
analyzing it and getting the necessary information for
facilitating decision making
 Batch processing
 On-line processing
 On-line real-time processing
 Distributed processing

Other data processing modes:



Time sharing
Multi-programming
Multi-processing
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
Types of networks:
 WAN
, Wide Area Network like internet
 LAN , Local Area Network, like XIME network
 VAN , value added network, like AirTel netweork
 VPN , Vitual Private Network [your own network as
part & extension of internet]
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Internet

“A massive electronic and telecommunication
network connecting the computers of business,
consumers, government agencies, schools, and
other organizations worldwide, which exchanges
information seamlessly using open,
non-proprietary standards and protocols”
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
Web Services;
 WWW

Retrieve, format
and display
information using
hypertext links
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Executive Support System (ESS or EIS)

“Information system that
provides top executives with
rapid access to timely
information and direct access
to management reports,
especially exception reports
drill down reports”.
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Capabilities of ESS

Capabilities and benefits:
down – provides details behind any given
information
 Critical success factors and key performance
indicators (KPI)
 Status access
 Trend analysis
 Ad hoc analysis
 Exception reporting
 Drill
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Digital Dashboards

Dashboards:
 Provide
rapid access to timely information.
 Provide direct access to management reports.
 Are very user friendly and supported by
graphics.
Example of Dashboard
Role of MIS

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


To provide the information to the managers in
the functional area.
Required to tackle increased business
complexity
Qualitative decision making
Making decision under uncertainty
Proactive decision making
MIS generates reports on functional area
Routine scheduled reports
 Ad-hoc (demand) reports
 Exception reports


Streamlines the operations
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Misconception about MIS
1.
2.
3.
4.
MIS is a computer based information system
More data leads to effective decision making
Managers know all information needs
Managers do not have to understand how MIS
works
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Dominos Pizza’s PULSE system Context Diagram
INPUTS
SYSTEM
OUTPUTS
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Dominos Pizza’s PULSE system
Inputs-Outputs Block Diagram
Inputs
PULSE system Modules /
Sub-Systems
Customer Calls, Emails Etc.,
Pizza Details: Size, Nos, topping Etc.,
Customer Database Created / Updated
(phone number is key)
Pizza Tracker(Order Taking & Tracking)
Pizza Order Number
Pizza Order Number
Pizza Delivery Info
Raw Material Consumption info
Pizza Delivery Info
Cash Collection
Raw Material Consumed info
Outputs
PULSE(Order Processing
& Order Fulfilment) and Online-polling
Pizza Delivered
Money Collection
Feed-back info
Money Collection
Raw Material Cost
Accounting
Cash Accounting
Bank Accounting
Profit/Loss , Balance sheet per outlet
Etc.,
Raw Material Requirements
Back-end TPS, ERP and MIS
Raw Material (RM)Orders
RM Distribution
MIS / DIS:
Profit making outlets
Complaints Data Base Etc.,
Note: Each sub-module can have one or more Business Processes
(Viz; Customer profile creation, customer order history creation Etc.,)
•Each Business Process may require one or more computer programs to do the work.
•The entire system resides on handheld devices, servers and networks
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