MC0076

Management Information Systems

Assignment Set 2

1) Explain the needs for information in the following areas a) Cost leadership b ) Global corporation c) ERP architecture d) Technology Evaluation Factor a) Cost leadership:- Cost leadership is a concept developed by Michle Porter, used in business strategy. It describes a way to establish the competitive advantage. Cost leadership, in basic words, means the lowest cost of operation in the industry. The cost leadership is often driven by company efficiency, size, scale, scope and cumulative experience learning curve. A cost leadership strategy aims to exploit scale of production, well defined scope and other economies (e.g. a good purchasing approach), producing highly standardized products, using high technology. In the last years more and more companies choose a strategic mix to achieve market leadership. This patterns consist in simultaneous cost leadership, superior customer service and product leadership. Cost leadership is different from price leadership. A company could be the lowest cost producer, yet not offer the lowest-priced products or services. If so, that company would have a higher than average profitability. However, cost leader companies do compete on price and are very effective at such a form of competition, having a low cost structure and management. b) Global Corporation:- A global corporation has rationalized its international operations to achieve greater efficiencies through central control. Although its strategy and marketing are based on the concept of a global market, a headquarters organization makes all major decisions. A company pursuing a global strategy needs to transfer the operational and financial data of its foreign subsidiaries to headquarters in real time or on a frequent basis. A high level of information flows from subsidiary to parent, while limited data move from parent to subsidiary. have invested and are present in many countries. They market their products through the use of the same coordinated image/brand in all markets. Generally one corporate office that is responsible for global strategy. Emphasis on volume, cost management and efficiency. c) ERP architecture:- Enterprise resource planning (ERP) systems integrate internal and external management information across an entire organization, embracing finance/accounting , manufacturing , sales and service , customer relationship management, etc. ERP systems automate this activity with an integrated software application. The purpose of ERP is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders .ERP systems can run on a variety of

computer hardware and network configurations, typically employing a database as a repository for information. Technology Evaluation Factor:-The capability of an organization to truthfully capture strategic values of a novel technological change and appropriately deploy it for successful innovation is a critical competence to competitiveness (Hall & Martin, 2005; Pavitt, 2002). Due to complex natures of fast emerging technological changes, this organizational capability is imperativeyet difficult to create and carry on. Strategic value of a technology to a firm can be determined from many aspects.Theses aspects include business strategy and strategic management activities (Antoniou & Ansoff, 2004), life cycle effect and systems of innovation (Hung, 2004), and region economic development (Xu, Chen, & Guo, 1998; Zahra, Hayton, Marcel, & O'Neill, 2001).No matter what aspect of a firm, successful innovations rely on appropriate strategic process of a firm toward emerging technologies (Hung, 2004; Shane & Venkataraman, 2000). This strategic process although can be deliberately designed by a firm,it is influenced by the harnesses its external and internal factors to evaluate emerging technological changes and connect it to successful innovation can be further explored. Moreover, most strategic management literature centers on the contents of strategies. Research on process of strategy, although is recognized essential to business success, is relatively less conducted.process. It aims to develop a typology that identifies technology evaluation strategies (as an organizational process) in high-tech industries and its relationship to innovation. The developed typology was empirically tested with cases selected from Taiwan semiconductor In recognizing the importance of technology evaluation to technological innovation,proposed an interactive planning process and use of analytic hierarchy process (AHP) as the vehicle. Other scholars and practitioners used stage-gate process for technology evaluation (Benson, Sage, & Cook, 1993; Stummer & Heidenberger, 2003). It is argued that the stage-gate process should be connected to strategic resource building and utilization In addition to the process, decision on choosing of quantitative or qualitative methods applied to technology evaluation depends on business objectives of the applying organization. 2. How information is selected and organized? 3. Briefly explain components of MIS Ans:- A marketing information system (MIS) is intended to bring together disparate items of data into a coherent body of information. An MIS is, as will shortly be seen, more than raw data or information suitable for the purposes of decision making. An MIS also provides methods for interpreting the information the MIS provides. COMPONENTS OF MANAGEMENT INFORMATION SYSTEMHardware:- Input and output devices constitute the hardware components of MIS.Software:- The programs and applications that convert data into machine-readable language are known as software.Procedures:- Procedures are sets of rules or guidelines, which an organization establishes for the use of a computer-based information system.Personnel:- The computer experts, managers, users, analysts,

programmers, database managers, and many other computer professionals who utilize the computer-based information systems are the personnel in a management information system. COMPONENTS OF MANAGEMENT INFORMATION SYSTEM Important Considerations in designing Management Information System MIS DESIGNING IS A STRUCTURED PROCESS. STEP 1 = MIS- MANAGEMENT INFORMATION SYSTEM "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 principal concerns Facilitate decision making by supplying the information needed in an up-to-date and accurate form to the people who need it on time in a usable form ------------------------------------------STEP 2 =MIS ELEMENTS Management functions Planning

Controlling Decision making 1. Selecting objectives 2. Identifying activities required to achieve the stipulated objectives 3. Describing the resources or skills, or both, necessary to perform the activities ------------------------------------------------------------------STEP4 = INFORMATION REQUIREMENTS DURING PLANNING 1. Supplying the information needed by the planner at each step 2. Establishing procedures for procuring the information at each step (including the means to view alternatives) ----------------------------------------------------------------------STEP-5 =CONTROLLING Controlling involves 1. Establishing standards of performance in order to reach the objective 2. Measuring actual performance against the set standards -----------------------------------------------------------------------------STEP-6= REQUIREMENTS FOR CONTROLLING 1. Defining expectations in terms of information attributes 2. Developing the logic for reporting deviations to all levels of management prior to the actual occurrence of the deviation -----------------------------------------------------------------------------STEP-7= DECISION MAKING Levels of decision making Strategic Technical Elements of decision making Model Optimization

---------------------------------------------------------------------------------STEP-8 = SYSTEMS "A set of elements forming an activity or a procedure/scheme seeking a common goal or goals by operating on data and/or energy and/or matter in a time reference to yield information and/or energy and/or matter." ---------------------------------------------------------------------------------STEP9= PERCEIVING THE SYSTEM 1. Some components, functions and processes performed by these various components 2. Relationships among the components that uniquely bind them together into a conceptual assembly which is called a system ----------------------------------------------------------------------------------STEP-10 = BASIC PARTS OF THE ORGANIZATION 1. The individual

2. The formal and informal organization 3. Patterns of behaviour arising out of role demands of the organization ------------------------------------------------------------------------STEP-11 =WHY A SYSTEMS APPROACH Developing and managing operating systems (e.g., money flows, manpower systems) Designing an information system for decision making Systems approach and MIS -------------------------------------------------STEP-12 = INFORMATION 'A set of classified and interpreted data used in the decision making process" Information has also been defined as some tangible entity which serves to reduce uncertainty about future state or events In the context of different levels of decision making, information can be described as: source data inference and predictions drawn from the data 4. Explain with relevant examples the ascertaining the class of information need for the business execution. Ans:- There are three types of information systems projects: manual, manual to automated, and re-automation. The last, re-automation, has four subtypes: system rewrite, system redesign and redevelopment, system enhancement, and system maintenance. Each of these involves different, and yet similar, work. The work is similar in that the development activities which are involved in each follow the same general phases and approach. They are different in that the environment that the analyst must examine has substantially different characteristics .This chapter examines each of the various types of analysis projects, along with a brief

discussion of the Gibson-Nolan electronic data processing (EDP) stages of growth theory and its impact on the analysis process. In addition there is a brief discussion of the Anthony model of organizational structure. A definition Personal Computer (PC) - also known as microcomputers or workstations, by the model name of the specific vendor (i.e. Apple [1], Macintosh [2], or PS/2 [3]) or by the brand name, model and speed of the processor (i.e. Pentium, Intel or 486/33 [4]) Any combination of processor, input device and output device designed for use by a single individual. Personal computers may also be called workstations. Personal computers may have a character orientation, a graphical orientation, may be connected to other personal computers, or may operate in a stand alone mode, and may or may not have connectivity to a mainframe. Personal computer software is normally characterized by an operating system which provides basic file access, management and display services and well as application scheduling and management.Reasons For Initiating Information Systems Analysis Projects As part of a program of System Modernization. A change in the basic aspects of the user's functional role A change in company strategic objectives A need for increased performance, greater or different functionality,different operating characteristics, or increased user friendliness from the automated systems A need for more direct and immediate access to the firm's automated files. A need to upgrade the system to take advantage of more current technology. A need to clean up the system The Three Types of Information Systems Analysis Projects The scope and magnitude of the functional and procedural changes may be fairly narrow or wide ranging. In some cases, aside from re-coding the system, there may be no changes in functionality at all. Given the variety of reasons for a project being undertaken, the starting point may also be quite different from project to project. These starting points reflect the differences in current user processing environments and the current level of user automation. Because of these differences in current user processing environments and user automation, information systems projects can be categorized into three types. 1.Manual 2.Manual to automated 3.Reautomation 4.The last, re-autom How information is selected and organized ation, has four subtypes. a) System rewrite

b) System redesign and redevelopment c) System enhancement d) System maintenance From an analysis perspective, each of these types of projects involves different, and yet similar, work. The work is similar in that the development activity. 5. How do you define Management Reporting Systems?

Ans:- Up to date management information is essential for the control of a service business, enabling the right decisions about business streams, clients, projects and employees. Time work's simple table structure, with Actuals ledgers, Budget ledgers and Invoice in Progress ledgers, as well as all transaction types (TIMESHEET, EXPENSE, INVOICE and DISCOUNT) sharing the same data structure, enables the development of unlimited multi-dimensional reports. Typical reports might include: Work in Progress by Employee Department, Project Business Stream, Account Manager, Company, etc. Invoice Value by Business Stream, Account Manager, Accounting Period, etc. Discounts from Standard Fee Rates by Client Business Sector, etc. Achieved Consulting Rates by Employee, Company, etc. Average Assignment Duration by Business Stream, Employee, etc. Utilisation by Employee, etc. Margin by Employee, etc. Whilst there are no 'standard' reports in time work, the possibilities offered by user-definable calculations, user-definable analysis and the uniform data structures of the system, are endless. Systems work provides an inbuilt wizard for the definition of Inquiry Profiles. These prepare data for formatting using Crystal reports. Alternatively INFORs renowned Vision suite or reporting tools are available for drill-down, analysis and integration with Excel. In addition, systems work enables the definition of Active Schedules. These are simple but powerful tables available to Employees in the Professional Services Workbench for reporting revenues, costs, work in progress, project plans, employee schedules, etc. Inquiry Profiles Inquiry Profiles can be defined and run both from within systems@work or can be published to individual Employees and Customers in the Professional Services Workbench and Customer Services Workbench using pre-configured and scheduled Transmission Profiles. Crystal Reports is used for formatting reports. Unlimited numbers of templates can be associated with a report to provide

different views of the same data.All reported data can be exported to Excel using a button on the toolbar. Key features:20 analytical dimensions for each Employee 20 analytical dimensions for each Client 20 analytical dimensions for each Project 20 analytical dimensions for each Timesheet or Expense Form 20 user-definable calculations on each transaction type Vision:-Vision, Infor's database interrogation and reporting tool, provides drill down and reporting from Excel and Vision Executive, enabling dynamic reporting and grouping using all analytical dimensions in the systems@work database. Active Schedules:-Active Schedules provide you with a real-time view of key data in your systems@work database. For example:Work in Progress by Project,Revenue by Project,Days by Project,Hours by Employee,Holidays by Employee Sickness by Employee,Forecast by Project,Employee Diary,Discounts by Project,Expenses by Project,Travel Time by Employee,Non-Project Time by Employe

6. Explain with relevant examples the concept of business process. Also mention their elements. Ans:- Every aspect of management in the modern age relies heavily on information to thrive. Nothing moves without information and it is generally believed that information is power and that he who has it has power. It is an important resource needed to develop other resources. Changing circumstances and environments have necessitated the need for the proper dissemination of information at various levels of management. The development and use of information management systems (MIS) is a modern phenomenon concerned with the use of appropriate information that will lead to better planning, better decision making and better results. In this essay, an attempt will be made to examine these concepts and relate them to organizational processes and structures. In addition, management functions and the different levels of management will also be highlighted. Finally, an attempt will be made to relate the MIS to those functions and levels in organizational settings. This approach will help in explaining the importance and effect of MIS in management. The information concept:- The concept of information in an organizational sense is more complex and difficult than the frequent use of this common word would suggest. Every society, no doubt, is an information society and every organization is an information organization usually in the form of letters and reports.Like energy

and politics, technology is changing the ways in which information is captured, processed, stored, disseminated and used.Information, therefore,like any other resource in an organization.The information management concept:- Information management has been defined as the organization-wide capability of creating, maintaining, retrieving and making immediately available the right information, in the right place, at the right time, in hands of the right people, at the lowest cost, in the best media, for use in decision making. The information systems concept:- The rapid evolution of computer technology is expanding man's desire to obtain computer assistance in solving more and more complex problems: problems which were considered solely in the domain of man's intuitive and judgemental processes, particularly in organizations, a few years ago. Information systems are becoming of ever greater interest in progressive and dynamic organizations.The following functional elements which relate to the organization and its environments: perception - initial entry of data whether captured or generated, into the organization; recording - physical capture of data; processing - transformation according to the "specific" needs of the organization; transmission - the flows which occur in an information system; storage - presupposes some expected future use; retrieval - search for recorded data; presentation - reporting, communication; and decision making - a controversial inclusion, except to the extent that the information system engages in decision making that concerns itself.

The attributes indicated above can be considered as major attributes or essential elements for developing an information system concept in an organizational context. In order to understand the information system concept further, Salton (1975) highlighted the most important computer-based information systems as follows: information retrieval system (IR); question-answering system; database system (DBS); management information system (MIS); decision support system ( DSS).

The focus in this essay is the management information system (MIS). It therefore must be emphasized that MIS is a sub-system of information systems.

Management information systems (MIS):-One approach by which organizations can utilize computing capability is through the development of MIS. There is no universally accepted definition of MIS and those that exist reflect the emphasis and perhaps prejudices of their authors. However, the term "management information system" can be seen as a database management system tailored to the needs of managers or decision makers in an organization.Organization processes and structures:-It is pertinent to mention at this juncture that the activities of the information system take place within the organizational structure and that the MIS seeks to serve the organization's objectives. Therefore, it is important for information specialists to have a working knowledge of what organizations are, their structures and factors which influence their methods and operations. There is no universally-accepted definition of an organization, but Kempner's (1976) is quite an interesting one. He states that anManagement functions and levels:-It should be noted that the value of any information is derived from the actions that management takes as a result of using that information. It follows that information specialists need to know what type of tasks and functions management have to perform so that they are able to produce relevant and usable information. The functions of management can be grouped into five areas: planning; decision making; organization and co-ordinating; leadership and motivation and control. Obviously, the emphasis given to each area varies from manager to manager and is especially dependent on the level of the manager in the organization. The nature of planning and decision making and the available techniques:-Planning and decision making have rightly been called the primary management tasks and these tasks occur at every level of management, although naturally the type of planning and decision making will vary between the levels. Planning is the process of deciding in advance what is to be done and how it is to be done. The planning process results in plans which are predetermined courses of action that reflect organizational objectives and these plans are implemented by decisions and actions. Thus, effective planning and decision making are inextricably linked, for without decisions and actions, the planning process is a sterile exercise.The importance of MIS to management:-A management information system is generally thought of as an integrated, usermachine system providing information to support operations, management and decision-making functions in an organization. As a matter of fact, an MIS is a special-purpose system useful for management in an organization. MIS is an accessible and rapid conveyor belt for appropriate high quality information from its generation to its users. The heart of an effective MIS, therefore, is a carefully conceived, designed and executed database. Its level corresponds to adaptive decisions. The characteristics of MIS in practice include:an information focus, designed for managers in an organization; structured information flow;

an integration of data processing jobs by business function, such as production of MIS, personnel MIS and so on; and inquiry and report generation, usually with a database. Problems with MIS There is abundant evidence from numerous surveys conducted in developed countries, particularly in the UK and USA, that existing MIS, often using advanced computer equipment, have had relatively little success in providing management with the information it needs. Reasons discovered include the following: lack of management involvement with the design of the MIS; narrow or inappropriate emphasis of the computer system; undue concentration on low-level data processing applications particularly in the accounting area; poor appreciation by information specialists of management's true information requirements and of organizational problems; and lack of top management support. To be successful, an MIS must be designed and operated with due regard to organizational and behavioral principles as well as technical factors.

7. What are the use of Executive information systems? Ans:Executive Information Systems:-Commonly abbreviated as the EIS is a decision support systems that supports and facilitates the strategic decision making requirements of the senior executives. This is provided by offering easy access to both relevant and important internal and external data needed to accomplish the crucial goals of an organisation. Nature of executive information systems: Executive information systems:- performs a very simple work of informing the higher level executives on subjects that are in fact most relevant and

important to their organisational resposibility and accountability in a rather summarised and convenient form.It usually features and lays significance on graphical presentations and easy to use user interfaces. Components of Executive information systems:-The four main components of an Executive information systems are the hardware, software, user interface and the telecommunication. The hardware should be selected with care to meet the requirements of the executive.The software components should be highly capable of integrating the data into one systems and displaying it in reports and graphs.The Executive information systems should also be effective in retrieving the factual data for the decision makers whenever needed. Characterstics of executive information systems:It summarises and obtains elaborate data to create graphical representations and displays wherein, the data serves as a reliable source for future decision making. It is also capable of integrating internal and external data in the most relevent and concise manner. Reasons for introducing executive information systems:This executive information systems was created exclusively for the higher level executives.These executives usually have a busy and tight schedule.Hence it is not possible for them to update with the various technological developments and fully comprehend and follow the systems prevalent in the organisation. Requirements of an executive information systems:It should Assess, evaluate and monitor the performance which is essential to assist internal decision making.It should also be capable of measuring customer satisfaction and employee performance.It should be able to examine in depth the sales, profit or loss and all the relevant finanacial data. Advantages of executive information systems:All systemss possess advantages depending upon the use and the users of the systems. This systems provides an opportunity for the executives to use his expertise and skill in this technologically developed world. Types of executive information systems:There are two distinct types of executive information systems namely,the data driven systemss and the model driven

systemss.The data driven systemss coordiante effectively the data bases and the data warehouses.

8. Explain various Organizational limit of Relational Decision Making

Ans:-The Six-Step Rational Decision-Making Model 1.Define the problem. 2.Identify decision criteria 3.Weight the criteria 4.Generate alternatives 5.Rate each alternative on each criterion 6.Compute the optimal decision Define the problem:-Improving Creativity in Decision MakingCreative PotentialGet out of the psychological ruts most us getinto and learn how to think about a problem in divergent ways.Three-Component Model of Creativity IntroductionIdentify decision criteria:-Once a decision maker has defined the problem, he or she needs toidentify the decision criteria that will be important in solving theproblem. In this step, the decision maker is determining whatsrelevant in making the decision.This step brings the decision makers interests, values, and personalpreferences into the process.Identifying criteria is important because what one person thinks isrelevant, another may not.Also keep in mind that any factors not identified in this step areconsidered as irrelevant to the decision maker. Weight the criteria:-The decision-maker weights the previously identified criteria in orderto give them correct priority in the decision. Generate alternatives:-The decision maker generates possible alternatives that couldsucceed in resolving the problem. No attempt is made in this step toappraise these alternatives, only to list them. Rate each alternative on each criterion:- The decision maker must critically analyze and evaluate each one.The strengths and weakness of each alternative become evident asthey compared with the criteria and weights established in secondand third steps. Compute the optimal decision:- Evaluating each alternative against the weighted criteria andselecting the alternative with the highest total score. 9. Explain different components of DSS.

Ans:- decision support systems (DSS) are commonly understood to be computerized management information systems designed to help business owners, executives, and managers resolve complicated business problems and/or questions. The Structure of Decisions:-In order to discuss the support of decisions and what DSS tools can or should do, it is necessary to have a perspective on the nature of the decision process and the various requirements of supporting it. Structured decision support systems may simply use a checklist or form to ensure that all necessary data is collected and that the decision making process is not skewed by the absence of necessary data. If the choice is also to support the procedural or process component of the decision, then it is quite possible to develop a program either as part of the checklist or form. Unstructed Decisions:-At the other end of the continuum are unstructured decisions. While these decisions have the same components as structured onesata, process, and evaluationhere is little agreement on their nature.Generally, unstructured decisions are made in instances in which all elements of the business environmentustomer expectations, competitor response, cost of securing raw materials, etc.re not completely understood (new product and marketing strategy decisions commonly fit into this category). Another approach is to monitor and document the process that was used so that the decision maker(s) can readily review what has already been examined and concluded. An even more novel approach used to support these decisions is to provide environments that are specially designed to give these decision makers an atmosphere that is conducive to their particular tastes. Semi Structured Decision:In the middle of the continuum are semi-structured decisions, and this is where most of what are considered to be true decision support systems are focused. Grappling with the latter two types of decisionsnstructured and semi-structuredan be particularly problematic for small businesses, which often have limited technological or work force resources. increasingly turned to DSS to provide them with assistance in business guidance and management. Key of DSS Function:-DSS is predicated on the effective performance of three functions: information management, data quantification, and model manipulation: "Information management refers to the storage, retrieval, and reporting of information in a structured format convenient to the user. Entrepreneurs and owners of established enterprises are urged to make certain that their business needs a DSS before buying the various computer systems and software necessary to create one. Some small businesses, of course, have no need of a DSS. The owner of a car washing establishment, for instance, would be highly unlikely to make such an investment. DSS Uncertainties and Limitation:-While decision support systems have been embraced by small business operators in a wide range of industries in recent years, entrepreneurs, programmers, and business consultants all agree that such systems are not perfect.LEVEL OF "USER-FRIENDLINESS" Some observers contend that although decision support systems have become much more user-friendly in

recent years, it remains an issue, especially for small business operations that do not have significant resources in terms of technological knowledge.HARD-TOQUANTIFY FACTORS Another limitation that decision makers confront has to do with combining or processing the information that they obtain. In many cases these limitations are due to the number of mathematical calculations required. For instance, a manufacturer pondering the introduction of a new product can not do so without first deciding on a price for the product. PROCESSING MODEL LIMITATIONS Another problem with the use of support systems that perform calculations is that the user/decision maker may not be fully aware of the limitations or assumptions of the particular processing model.

10. Write a note on Ethical and Social issue with E-commerce. Ans:-The concept has come to mean various things to various people, but generally it's coming to know what it right or wrong in the workplace and doing what's right this is in regard to effects of products/services and in relationships with stakeholders. Wallace and Pekel explain that attention to business ethics is critical during times of fundamental change times much like those faced now by businesses, both nonprofit or forprofit.Attention to ethics in the workplace sensitizes leaders and staff to how they should act. Perhaps most important, attention to ethics in the workplaces helps ensure that when leaders and managers are struggling in times of crises and confusion, they retain a strong moral compass. However, attention to business ethics provides numerous other benefits, as well (these benefits are listed later in this document). Managing Ethics in the Workplace:-Managing Ethics Programs in the Workplace Organizations can manage ethics in their workplaces by establishing an ethics management program. "Typically, ethics programs convey corporate values, often using codes and policies to guide decisions and behavior, and can include extensive training and evaluating, depending on the organization.

Developing Codes of Conduct:-If your organization is quite large, e.g., includes several large programs or departments, you may want to develop an overall corporate code of ethics and then a separate code to guide each of your programs or departments. Resolving Ethical Dilemmas and Making Ethical Decisions:-Perhaps too often, business ethics is portrayed as a matter of resolving conflicts in which one option appears to be the clear choice. For example, case studies are often presented in which an employee is faced with whether or not to lie, steal, cheat, abuse another, break terms of a contract, etc. Assessing and Cultivating Ethical Culture:-Culture is comprised of the values, norms, folkways and behaviors of an organization. Ethics is about moral values, or values regarding right and wrong. Therefore, cultural assessments can be extremely valuable when assessing the moral values in an organization. Ethics Training:-The ethics program is essentially useless unless all staff members are trained about what it is, how it works and their roles in it. The nature of the system may invite suspicion if not handled openly and honestly. In addition,

no matter how fair and up-to-date is a set of policies, the legal system will often interpret employee behavior (rather than written policies) as de facto policy.