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Marwadi education foundations group of institutions


SUBJECT CODE 640004 SUBJECT NAME Management Information System (MIS)




CHAPTER 1 Information and Management

Data and Information DATA is a raw material with which we begin. Collecting data costs money and hence one must collect necessary and sufficient data. Data is generally used by machines and is useless unless it is processed to create INFORMATION. INFORMATION is Processed data, used by managers to initiate actions and to run the organization efficiently. The data processed by machines gives information Concept of data and information

Types of Information STRATEGIC : Needed for long range planning and directions. This is less structured. TACTICAL : Needed to take short range decisions to improve profitability and performance. OPERATIONAL : Needed for day to day operations of the organization. Eg: Daily Sales, Billing. STATUTORY : Needed by law to sent to government authorities. Eg: Sales tax return.

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Information needs in managing a retail store

Why a computer based information system? The size of organizations is becoming larger. Same data can be processed in many ways with computer based systems. It can handle large volume of data and variety of information for efficient management. Organizations are distributed with many branches. Markets are becoming competitive. The demand for up to date and more accurate information. Management structure

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Types of information needed to manage an organization

Various departments PRODUCTION MARKETING MATERIALS purchase, stores FINANCE Accounts HUMAN RESOURCE DEVELOPMENT(HRD) RESEARCH AND DEVELOPMENT (R&D) Production Management Strategic Information: 1. Yearly and monthly production quotas and alternate schedules 2. Policies on machine replacement, augmentation and modernization. 3. Identifying best product mix. Tactical Information 1. Identifying and controlling areas of high cost. 2. Identifying critical bottlenecks in production. 3. Identifying alternate production schedules based on tools, machines etc. 4. Performance measures of machines to decide replacement. Operational Information 1. Monitoring up to date production information by examining assemblies, detecting likely shortages and giving early warning. 2. Scheduling better production dynamically. 3. Preventive maintenance schedules. 4. Monitoring tool, machine and personnel availability

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Marketing Management Strategic Information: 1. Search for new markets and marketing strategies. 2. Analysis of competitors strategy 3. Technology and demographic forecasts and product changes Tactical Information: 1. Advertising techniques and analysis of their impact. 2. Customer preference surveys. 3. Correlation of prices and sales. 4. Sales force deployment and targets. 5. Exploring alternate marketing channels. 6. Timing of special sales campaigns. Operational Information: 1. Sales analysis by regions, customer class, sales person. 2. Sales target versus achievement. 3. Market share and trends. 4. Seasonal variations. 5. Effect of model changes. 6. Performance of sales outlets 7. Costs of campaigns and benefit. Material Management Strategic Information: 1. Developing vendors for critical items 2. Determining optimal levels of inventory 3. Determining proportion of material needed 4. Reducing varieties of inventory Tactical Information: 1. Developing vendor performance measures. 2. Determining optimal reorder levels. 3. Determining issues of items to shops versus standard needs. 4. Controlling high value of inventory. 5. Determining impact on material cost and procurement with design changes and new product introduction. Operational Information: 1. List of excess & deficient items received. 2. List of items rejected. 3. Critical items received. 4. Stores in transit and in inspection. 5. Value of inventory in hand. 6. Goods received, rejected and issued.

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Finance Management Strategic Information: 1. Methods of financing. 2. Pricing policies 3. Tax planning. Tactical Information: 1. Variations between budget and expenses. 2. Large outstanding payments/Receipts. 3. Credit and payment status. 4. Cost increases and pricing. 5. Impact of taxation on pricing. Operational Information: 1. Periodic financial report. 2. Budget status to all functional managers. 3. Tax returns. 4. Share transfers. 5. Profit and loss account. 6. Payments and receipts. 7. Payroll, provident fund accounts. Human Resource Management Strategic Information: 1. Long range human resource requirements at different levels. 2. Policies on human resource development and training 3. Policies on personnel welfare and facilities Tactical Information: 1. Performance appraisal. 2. Demographic make-up of personnel and its impact on retirement. 3. Production incentives. 4. Morale of personnel. 5. Absentee reduction. 6. Leave and overtime policies. 7. Personnel deployment policies. Operational Information: 1. Routine assessment. 2. Skills inventory. 3. Loan/advances and recoveries. 4. Leave record.

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Qualities of information Accurate Complete Trustworthy Timely Up to date Relevant Summarized Significant

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CHAPTER 2 Examples of Information Systems

A hierarchical chart of offices in university

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Information processing for a store

The fields are organized as a record and stored in a database. This database is the primary or master file for the store. The data can be stored online or offline.

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Processing of request to store

Processing steps in an inquiry system

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A request for retrieving a record from a master file is called a transaction. The method of processing data in which transactions are grouped together and processed as a batch is called batch processing. The method of processing data in which transactions are processed by a computer as and when they arise is called OLTP (Online transaction processing). Varieties of information systems Routine data processing systems (DPS) are used to obtain operational information. They are normally repetitive. Data abstracted from routine processing are further processed using well thought out rules to obtain tactical information. Such systems are called MIS. Information from multiple sources in an organization are normally presented in summarized forms such as graphs and charts to aid top management to take strategic decisions. Such systems are called DSS. Data used in operational data processing is normally stored in many organizations as back up or for legal reasons. These are called data archives. The archived data may be analyzed to obtain tactical and strategic information. This is called data mining.

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CHAPTER 5 IT - Impact on Society

The industrial revolution in 19th century and its impact Next innovation of computing and networking giving rise to new technology of IT. Jobs changed with new IT skills. Impact of computing Next came Internet and expanded scope of business with opportunities. IT and internets adverse effects on individuals. All the above revolutions created new opportunities, reduced cost, saved time and enabled fast processing and decision making. Individual and organizations exists in society in a social environment. Technology affects this existence due to impact on privacy, culture, job opportunities and markets. It affects individuals, their families, work groups, organizations and their business at large.

Impact of IT on privacy Privacy is the right of individual to hold back certain information about self without disclosure and allow it to be collected with the consent with the assurance that it would remain protected from unauthorized access. Individual provides lot of personal information like debit or credit card and email and telephone numbers, skill and experience data, bank account numbers and so on. IT is capable of finding access to this data, download and process it as per need. E.g. transaction data, airline data, medicine data and some other personal data.

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People prefer to maintain personal data in most secured place to avoid privacy violation. E-business applications are vulnerable for unauthorized access to information. Violation of discrimination laws and privacy violation in an organization. Data may be used for undeclared purpose. So its usage is unethical. Use of video cameras, RFID, Microchips, E-mail records can be misused for unethical purposes without the knowledge of individual. The laws of protecting privacy are different in every country.

The right to healthy life and work safety. The right to privacy. The right to private intellectual property (information and knowledge) The right to descent. The right to fair treatment and no discrimination. The right to be treated by just due process.

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ACM code of ethics and professional conduct

Technical solutions for privacy protection Protection of privacy of individual and an organization is of critical importance. Due to web enabled solutions and internet, individuals risk of privacy exposure is increased many fold. The data entered, processes and sent through internet passes through computer systems, which are capable of keeping record of this information. This activities can be done without knowledge of end user. The communication systems capabilities can identify and analyse the following: 13 P a g e | M E F G I | Prepared By: Divyakant Meva | Formatted By: Bhaumik Joshi

a. Identification of a person or location from where an action has started through registration record. b. Which files, websites and web pages visited. c. Which transactions have been attempted and completed. All these information can reveal personal data and behavior traits of an individual. Tools to monitor visits to website are popular. Personal information can be collected with cookies, as they are designed to collect data about visitors and retain it for future guidance. Web bugs is another tool providing server capability to monitor the behavior of the visitor. They are tiny graphics files attached with e-mail messages and web pages, monitoring the visitor behavior. Websites provide options for information use to the visitor. Opt-out gives consent from user side to use information as per the agreement. Opt-in says that consent has not been given for the use of user information.

Intellectual property, copyright and patents Information and information systems products are intangible in nature and are created by individuals or organizations. They are like business rule, business model, pattern, layout, diagram or specific compilation in certain format used for business advantage. All these can be classified as intellectual properties. They can be viewed, copied or distributed on network. Such distribution can change the structure or content or matter with loss of originality. So they require protection provisions from trade secrets, copyright and patent acts. Software with unique design, architecture, process of any organization is a trade secret. In the trade secret act, idea behind uniqueness is a trade secret and prevents its copyright by law. For those, who want to use this product or idea, it is necessary to sign non-disclosure agreement. Another protection mechanism is to bring the product under license arrangement restricting the use and knowledge to known license users. Copyright Copyright act protects intellectual property for pretty long time from copying by others. The protection is applicable against copying part or full in any manner. Breaking this act results in penalty. Illegal copying of computer software is called software piracy and considered as theft. There are many aspects of intellectual property which are legal issues and do not have foolproof legal protection and technical solution protecting violation. The only thing depends on ethics and moral commitment.

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Patents A patent grants the owner of the product exclusive monopoly on the ideas behind the product for the number of years, protecting the interests of the owner/inventor of the product. The patents are granted after formal application by the inventor to patent certification body of the country and after scrutiny of the invention, the patents are granted by the patent office. Challenges to intellectual property rights With propagation of networks and internet with associated capabilities, it is difficult to protect intellectual property. Internet is used to transmit information in any form freely around the world. It does not distinguish copyright and other information. Alteration of information is easy. For protection of web page content, powerful copyright patent law suitably modified for the internet and web world is necessary to protect the ownership and management of compensation payment to owners. Impact of IT on the workplace Information and information products have raised number of ethical, moral and legal issues and they are being resolved with acts and laws. They also raised other issues as its application affects the workplace with negative impacts. Though positive impacts are more, but it has affected human being in some aspects in negative manner. IT and IT products has brought down personal interaction between human beings, as automatization is there. With no interaction, individuals are isolated affecting human behavior. It has also created health hazards due to stressful conditions. IT has negative impact, when it is used to monitor the work, workplace and the worker. It is used to measure performance, behavior and personal characteristics. There is no bitterness if technology is used in following manner: a. Monitor, watch and measure only those personal factors which contribute for the achievement of business objectives. b. Before implanting such program, seek personal acceptance through training and explanation. c. Allow persons to access the record built and the programs used to built to win their confidence. d. Use recorded data to improve the efficiency of the person and dont use it to punish or to find fault or to discriminate.

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Accountability and liability IT and its applications involve number of people and organizations working at different locations contributing to design, development and use of products application and so on. In the event of damage or injury who should be held accountable and who is liable to pay compensation. In the incident of breach, following issues may arise: Pinpointing the location and users. Isolating cause, affect and damage and pinning it on one agency Assigning the cause of damage to hardware, software, user, owner of the information and so on Difficulties in envisioning the probable cause and creating protective mechanism Information system quality and impact The design and architecture of the information system is based on certain assumptions of data quality, process discipline, pre and post conditions of the process and constraints. It is difficult to define information system quality as a benchmark or control to pinpoint the accountability and responsibility in the event of damaging impact. The main sources of the poor information quality and performance producing damaging impact are the following: Poor input data quality Software bugs and errors Hardware and Software failures

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A developer is ethically bound and professionally responsible and accountable for meticulously following and adhering industry standards, principles, processes and practices to control the damage impact. The following points should be discussed with customer: A system with zero error and no bugs is a myth. Data errors by and large are human errors. Systems are designed on the basis of requirement, definition and description(RDD) and SRS finalized at a point of time and in the event of change, the system results would be at variance with expectation stated in RDD. Detection and removal of bugs is a continuous process and should be kept under the control by implementing the system in a phased manner. Change management should be considered. In the case of failure due to fire, natural disasters, fixing accountability is the only safeguard for compensation. The other problem is input data quality. Here fixing accountability is a serious problem. Testing tools and processes are available to maintain the quality of the system. Impact on quality of life Use of IT is expected at home, in public institutions, business organizations, education, healthcare, transportation, manufacturing and services. It has affected personal and social life. Following are the areas affected by the impact of IT: People empowered with knowledge and information. Business dynamics and competition is changing faster and IT is capable of giving strength for that.

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The concept of houses, family and office life is slowly getting vanished because IT exposes you to work at any time anywhere in a single or virtual mode. IT has given birth to new crime called internet or cyber crime. Following is the list of abuses: a. Spamming b. Hacking c. Jamming d. Sending viruses e. Sniffing f. The society is divide in two parts: one having access to technology and other with no access. The division is called Digital Divide. g. It is like Having and have nots causing social tension.

Definitions Privacy Privacy violation Code of ethics Privacy protection Copyright Digital divide Ethics Intellectual property Patents Dehumanization Responsibility and accountability

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