MANAGEMENT INFORMATION SYSTEMS

ASSIGNMENT

Submitted By
ROSHNI VINOD
(TYC)
Roll No- 3151

Q1) Explain MIS and the concept of MIS with necessary diagrams.
Definition
"An integrated user-machine system for providing information to support operations,
management and decision making functions in an organization. The system utilizes
computerized and manual procedures; models for analysis, planning, control and decision
making; and a database."
(MIS) are designed to provide past, present, and future routine information appropriate for
planning, organizing, and controlling the operations of a functional area in an organization.
An organized approach to the study of the information needs of an organization's
management at every level in making operational, tactical, and strategic decisions. Its
objective is to design and implement procedures, processes, and routines that provide suitably
detailed reports in an accurate, consistent, and timely manner.
In a management information system, modern, computerized systems continuously gather
relevant data, both from inside and outside an organization. This data is then processed,
integrated, and stored in a centralized database (or data warehouse) where it is constantly
updated and made available to all who have the authority to access it, in a form that suits their
purpose.

Project Examples of MIS

IBM
Project description: The MIS consulting team at IBM and their project sponsor located in
the UK to extend the Rational DOORS methodology to support the specific needs of multi
company development of medical devices. The key issues addressed included the unique
document control and personnel scheduling needs of this scenario. The specific issues related
to appropriate management of intellectual property were given particular attention.

Kids at Hope
Company overview: Kids at Hope inspires, empowers, and transforms families, youth
serving organizations (schools, parks and recreation departments, police and fire departments,
etc.) and entire communities to create an environment where all children experience success.
They serve over 500,000 students across the US and Canada.
Project: The project was to create an interactive and content rich website that supports
students in their efforts to visualize their future by using the neuroscience concept of Time
Traveler. The Time Traveler guides students in seeing and planning for the future.

Levementum, LLC
Company overview: Levementum is a global demand chain consulting and technology
services company. They are the largest SugarCRM solutions provider in the world.
Project: The MIS team worked on a proof of concept to develop a cloud based Business
Intelligence Solutions for the Health Care industry tied to CRM.

Walmart
Company overview: Walmart, is an American multinational retail corporation that runs
chains of large discount department stores and warehouse stores. The company is the world's
third largest public corporation, according to the Fortune Global 500 list in 2012, the biggest
private employer in the world with over two million employees, and is the largest retailer in
the world.
Project: MIS teams worked with Walmart to create a website that supported their use and
administration of talent resources.

Q2) What is ERP and its advantages?

ERP is short for enterprise resource planning. Enterprise resource planning (ERP) is business
process management software that allows an organization to use a system of integrated
applications to manage the business and automate many back office functions related to
technology, services and human resources. ERP software integrates all facets of an operation,
including product planning, development, manufacturing, sales and marketing.
ERP software is considered an enterprise application as it is designed to be used by larger
businesses and often requires dedicated teams to customize and analyze the data and to
handle upgrades and deployment. In contrast, Small business ERP applications are
lightweight business management software solutions, customized for the business industry
you work in.

Advantages of ERP (Enterprise Resource Planning) System:

1. Complete visibility into all the important processes, across various departments of an
organization (especially for senior management personnel).
2. Automatic and coherent workflow from one department/function to another, to ensure
a smooth transition and quicker completion of processes. This also ensures that all the
inter-departmental activities are properly tracked and none of them is missed out.

3. A unified and single reporting system to analyze the statistics/status etc. in real-time,
across all functions/departments.
4. Since same (ERP) software is now used across all departments, individual
departments having to buy and maintain their own software systems is no longer
necessary.

5. Certain ERP vendors can extend their ERP systems to provide Business
Intelligence functionalities, that can give overall insights on business processes and
identify potential areas of problems/improvements.

6. Advanced e-commerce integration is possible with ERP systems most of them can
handle web-based order tracking/ processing.

7. There are various modules in an ERP system like Finance/Accounts, Human

Resource Management, Manufacturing, Marketing/Sales, Supply Chain/Warehouse
Management, CRM, Project Management, etc.

8. Since ERP is a modular software system, its possible to implement either a few
modules (or) many modules based on the requirements of an organization. If more
modules implemented, the integration between various departments may be better.

9. Since a Database system is implemented on the backend to store all the information
required by the ERP system, it enables centralized storage/back-up of all enterprise
data.

10. ERP systems are more secure as centralized security policies can be applied to them.
All the transactions happening via the ERP systems can be tracked.

11. ERP

systems

provide

better

company-wide

visibility

and

hence

enable

better/faster collaboration across all the departments.

12. It is possible to integrate other systems (like bar-code reader, for example) to the ERP
system through an API(Application Programing Interface).

13. ERP systems make it easier for order tracking, inventory tracking, revenue tracking,
sales forecasting and related activities.

14. ERP systems are especially helpful for managing globally dispersed enterprise
companies, better.

Q3) What are the various types of information systems. Explain with examples and
diagrams.
The information system is a system of group of interrelated components working together
towards a common goal by accepting inputs and producing outputs in an organized
transformation process.
In this system there are three basic components or functions are involved. i.e., Input,
Processing and Output.

Types
1) Transaction Processing Systems are operational-level systems at the bottom of the
pyramid. They are usually operated directly by shop floor workers or front line staff,
which provide the key data required to support the management of operations. This
data is usually obtained through the automated or semi-automated tracking of lowlevel activities and basic transactions.

Inputs

Functions of a TPS in terms of data processing requirements

Processing
Outputs
Validation
Sorting
Listing
Merging
Updating
Calculation

Transactions
Events

Lists
Detail reports
Action reports
Summary reports?

Some examples of TPS

Payroll systems
Order processing systems
Reservation systems
Stock control systems
Systems for payments and funds transfers

2) Management Information System - For historical reasons, many of the different

types of Information Systems found in commercial organizations are referred to as
"Management Information Systems". However, within our pyramid model,
Management Information Systems are management-level systems that are used by
middle managers to help ensure the smooth running of the organization in the short to
medium term. The highly structured information provided by these systems allows
managers to evaluate an organization's performance by comparing current with
previous outputs.

Inputs

Functions of a MIS in terms of data processing requirements

Processing
Outputs

Internal Transactions
Internal Files
Structured data

Sorting
Merging
Summarizing

Some examples of MIS

Sales management systems
Inventory control systems
Budgeting systems
Management Reporting Systems (MRS)
Personnel (HRM) systems

Summary reports
Action reports
Detailed reports

3) Decision support systems (DSS) A Decision Support System can be seen as a

knowledge based system, used by senior managers, which facilitates the creation of
knowledge and allow its integration into the organization. These systems are often
used to analyze existing structured information and allow managers to project the
potential effects of their decisions into the future. Such systems are usually interactive
and are used to solve ill structured problems. They offer access to databases,
analytical tools, allow "what if" simulations, and may support the exchange of
information within the organization.

Inputs

Functions of a DSS in terms of data processing requirements

Processing
Outputs

Internal Transactions
Internal Files
External Information?

Modelling
Simulation
Analysis
Summarizing

Summary reports
Forecasts
Graphs / Plots

Some examples of DSS

Group Decision Support Systems (GDSS)
Computer Supported Co-operative work (CSCW)
Logistics systems
Financial Planning systems
Spreadsheet Models
4) Executive information systems (EIS) is a reporting tool that provides quick access
to summarized reports coming from all company levels and departments such as
accounting, human resources and operations. Executive Information Systems are
strategic-level information systems that are found at the top of the Pyramid. They help
executives and senior managers analyze the environment in which the organization
operates, to identify long-term trends, and to plan appropriate courses of action. The
information in such systems is often weakly structured and comes from both internal
and external sources. Executive Information System are designed to be operated
directly by executives without the need for intermediaries and easily tailored to the
preferences of the individual using them.

Inputs

Functions of a EIS in terms of data processing requirements

Processing
Outputs

External Data
Internal Files
Pre-defined models

Summarizing
Simulation
"Drilling Down"

Summary reports
Forecasts
Graphs / Plots

Some examples of EIS

Executive Information Systems tend to be highly individualized and are often custom made
for a particular client group; however, a number of off-the-shelf EIS packages do exist and
many enterprise level systems offer a customizable EIS module.

5) Expert Systems: An expert system is a specialized information system that performs

tasks normally done by people, such as making decisions.

Expert systems are used to approve bank loans, make large-scale purchasing decisions, and
assist with medical diagnoses.
Expert systems rely on huge, detailed databases (knowledge bases). Special software, called
an inference engine, analyzes data to answer questions or make choices.

6) Marketing Information Systems are Management Information Systems designed

specifically for managing the marketing aspects of the business
7) Accounting information systems are focused accounting functions.
8) Human resource management systems are used for personnel aspects.
9) Office automation systems (OAS) support communication and productivity in the
enterprise by automating workflow and eliminating bottlenecks. OAS may be
implemented at any and all levels of management.
Office automation systems are used to automate routine office tasks, such as the creation of
documents, billing, and others.
Office automation systems can be built from off-the-shelf applications standard
productivity software that most users are familiar with.
In some office systems, commercial software may be
but this is not always necessary.

customized to perform specific tasks,

Q4) Explain the types of decisions? Illustrate Herbert Simon Model of Decision Making in
detail.
The types of decisions are divided into the following categories:
1) Programmed Decisions:
Programmed or structured are those decisions, which are well defined and some specified
procedure or some decision rule might be applied to reach a decision. Such decisions are
routine and repetitive and require little time for developing alternatives in the design phase.
Programmed or structured decisions have traditionally been made through habit, by operating
procedures or with other accepted tools.
Routine/Structured
Definite procedures to be followed
The situations are known
Repetitive/Short term
Techniques used: SOP/operational research/computers
2) Non Programmed Decisions
Decisions, which are not well defined and have not pre-specified procedures decision rule are
known as unstructured or non-programmed decisions.
Innovative
New/Complex situations
Long Term
Strategic
Managerial decisions are grouped as:
(a) Strategic decision
(b) Tactical decision
(c) Operation decision
1. Strategic Decision: these are known as major decision influence whole or major part of
the organization. Such decisions contribute directly to the achievement of common goals of
the organization; have long range effect upon the organization.
Generally, strategic decision is unstructured and thus, a manager has to apply his business
judgment, evaluation and intuition into the definition of the problem. These decisions are
based on partial knowledge of the environmental factors which are uncertain and dynamic,
therefore such decision are taken at the higher level of management.
2. Tactical Decision: tactical decision relate to the implementation of strategic decisions,
directed towards developing divisional plans, structuring workflows, establishing distribution
channels, acquisition of resources such as men, materials and money. These decisions are
taken at the middle level of management.
3. Operational Decision: operational decisions relate to day-to-day operations of the
enterprise having a short-term horizon and are always repeated. These decisions are based on
facts regarding the events and do not require much of business judgments. Operational
decisions are taken at lower level of management.

HERBERT SIMON MODEL

Decision-making is a process in which the decision-maker uses to arrive at a decision. He
divided the model into three phases. In the intelligence phase, the problem is identified, and
information is collected concerning the problem. This can be a long process, as the decision
to be made comes from the information. The design phase develops several possible solutions
for the problem. Finally, the choice phase chooses the solution.
The core of this process is described by Herbert Simon in a model. He describes the model in
three phases as shown in the figure below:
I. Intelligence: raw data collected, processed and examined, Identifies a problem calling
for a decision.
II.

Design: inventing, developing and analyzing the different decision alternatives

and testing the feasibility of implementation. Assess the value of the decision
outcome.

III.

Choice: select one alternative as a decision, based on the selection criteria.

FEEDBACK

In the intelligence phase, the MIS collects the data. The data is scanned, examined, checked
and edited. Further, the data is sorted and merged with other data and computations are made,
summarized and presented. In this process, the attention of the manager is drawn to all
problem situations by highlighting the significant differences between the actual and the
expected, the budgeted or the targeted.
In the design phase, the manager develops a model of the problem situation on which he can
generate and test the different decision alternatives, he then further moves into phase of
selection called as choice.
In the phase of choice, the manager evolves selection criteria such as maximum profit, least
cost, minimum wastage, least time taken and highest utility. The criterion is applied to the
various decision alternatives and the one which satisfies the most is selected.

In Implementation, The decision that is ultimately carried out.

In Review, decision implemented is evaluated. Was the course of action taken a good choice.
In these phases, if the manager fails to reach a decision, he starts the process all over again
and again. An ideal MIS is supposed to make a decision for the manager.
An example of the Simon model would illustrate further its use in the MIS. For example, a
manager finds on collection and through the analysis of the data that the manufacturing plant
is underutilized and the products which are being sold are not contributing to the profits as
desired. The problem identified, therefore, is to find a product mix for the plant, whereby the
plant is fully utilized within the raw material and the market constraints, and the profit is
maximized. The manager having identified this as the problem of optimization, now
examines the use of linear programming (LP) model. The model is used to evolve various
decision alternatives. However, selection is made first on the basis of feasibility and then on
the basis of maximum profit.
The product mix so given is examined by the management committee. It is observed that the
market constraints were not realistic in some cases and the present plant capacity can be
enhanced to improve the profit. The same model is used again to tool the revised position.
Therefore, additional data is collected and an analysis is made to find out whether the average
20 percent utilization of the capacity can be increased. A market research for some products
is made and it is found that some constraints need to be removed and reduced. Based on the
revised data linear programming model is used and a better optimum solution is obtained.