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DATE
TIME
FORMAT
TRAINER
OBJECTIVES
At the end of this session, participants should be able to understand and appreciate:
1.Principles and elements of MIS
2.The relationship between organizational structure and MIS
3.Information requirements for MIS
4.Different types of MIS
5.The process of developing a MIS
6.Criteria for MIS
7.Strategies for determining MIS design
INSTRUCTIONAL MATERIALS
Exhibit 1
Exhibit 2
MIS elements
Exhibit 3
Steps in planning
Exhibit 4
Exhibit 5
Controlling
Exhibit 6
Exhibit 7
Decision making
Exhibit 8
System
Exhibit 9
Exhibit 10
Exhibit 11
Exhibit 12
Information
Exhibit 13
Exhibit 14
Exhibit 15
Exhibit 16
Exhibit 17
Exhibit 18
Exhibit 19
Types of MIS
Exhibit 20
Exhibit 21
MIS criteria
Exhibit 22
REQUIRED READING
Reading note: Management information systems
BACKGROUND READING
None.
SPECIAL EQUIPMENT AND AIDS
Overhead projector and chalkboard
Show EXHIBIT 8. Define and discuss the concept of a system. Observe that modern
management is based upon the systems approach, which views an organization as a system of
mutually dependent variables and composed of a set of interrelated sub-systems. This
interrelationship is a fundamental concept in the systems approach to management. Show
EXHIBIT 9 and discuss how a system can be perceived. The basic elements of the
organization include the individual, the formal and informal organization, patterns of
behaviour, role perception, and the physical environment (EXHIBIT 10). Show EXHIBIT 11
and discuss the relevance of the systems approach in the design of an MIS. MIS aims at interrelating, coordinating and integrating different sub-systems by providing information to
facilitate and enhance the working of the sub-systems and achieve synergism.
Show EXHIBIT 12. Define information in generic terms as well as in the context of different
levels of decision making. Note that all data are not necessarily information. The value of
management information lies in its content, form and timing of presentation. Discuss the role
of the information system in linking different components of the organization through
integration, communication and decision making. Integration aims at ensuring that different
sub-systems work together towards the common goal. Coordination and integration are
essential controlling mechanisms to ensure smooth functioning in the organization.
Communication is a basic element of organizational structure and functioning to integrate
different sub-systems at different levels to achieve organizational goals. Information is
generated in the organizational structure. Show EXHIBIT 13. Information requirements are
different at all levels of the organization. As information flows from bottom to top, it becomes
more and more focused as a result of capsulization and concretization. In contrast,
information becomes increasingly diffuse as it flows from top to bottom. Since the
information system is specific to an organization, organizational structure and behaviour have
to be explicitly considered in designing an MIS (EXHIBIT 14). Show EXHIBIT 15 and
discuss the implications of various characteristics of the organizational structure when
designing an MIS. Refer to Table 1 in the Reading note in discussing these implications.
Show EXHIBIT 16 and discuss information requirements for MIS. It is important to consider
carefully the information needs of the organization at different levels of the hierarchy.
Strategies for determining information requirements should be discussed in the context of
EXHIBIT 17. This discussion can be continued using EXHIBIT 18, in which a step-by-step
strategy for determining data requirements is suggested.
An MIS can be a data bank, predictive, decision making or decision taking system. Discuss
each of these in the context of EXHIBIT 19. Show EXHIBIT 20 and discuss the MIS process.
As already discussed earlier, the MIS design team should first establish management
information needs and clearly establish the system's design objectives. The important decision
making areas should be identified, and within them the management decision areas
delineated. Information needs at each of these levels have to be appreciated in the context of
defined roles. A crude description of the system could then be developed and subsequently
refined with more precise specifications. An MIS should be based on a few databases related
to different sub-systems of the organization, for efficient management of information
processing, the MIS should be tested and closely monitored to ensure that all critical data are
captured.
Any MIS should be relevant to the individual decision-maker. It should provide up-to-date
and accurate information to facilitate decision making. It should enable management to
anticipate change. An MIS cannot be static in the face of the changing environment. As the
environment changes, decision making changes and hence the information requirements
change also (EXHIBIT 21).
Show EXHIBIT 22 and discuss the six strategies determining MIS design. The organizationchart approach is based on traditional functional areas defining current organizational
boundary and structure. MIS evolves on its own in a laissez faire manner in the integratelater approach. The data-collection approach involves collection and classification of all the
relevant data for future use. In the database approach, a large pool of data is collected and
stored for future use. The top-down approach involves defining the information needs for
successive layers of management. The total-system approach involves collection, storage and
processing of data within the total system.
EXHIBIT 1
MANAGEMENT INFORMATION SYSTEMS
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."
Based on: Davis, G.B. 1985. MIS: Conceptual Foundations. Structure and Development. 2nd
ed. New York, NY: McGraw-Hill.
Management functions
Planning
Controlling
Decision making
Information system
Management information
EXHIBIT 3
STEPS IN PLANNING
1. Selecting objectives
Source: Kumar, S. 1989. Management Information System. New Delhi: Ashish Publishing.
EXHIBIT 5
CONTROLLING
Controlling involves
1. Establishing standards of performance in order to reach the objective
2. Measuring actual performance against the set standards
3. Correcting deviations to ensure that actions remain on course
Source: Murdick, R.G., and Ross, J.E. 1975. Information Systems for Modern Management.
Englewood Cliffs, NJ: Prentice-Hall.
EXHIBIT 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
Source: Murdick, R.G., and Ross, J.E. 1975. Information Systems for Modem Management.
Englewood Cliffs, NJ: Prentice-Hall.
EXHIBIT 7
DECISION MAKING
Levels of decision making
Strategic
Tactical
Technical
Elements of decision making
Model
Constraints
Optimization
Source: Gorry, G., and Scott Morton, M.S. 1971. A framework for management information
system. Sloan Management Review. Fall 1971.
EXHIBIT 8
SYSTEM
"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."
Source: Hopkins, R.C. et al. A systematic Procedure for System Development: Systems
Philosophy. Englewood Cliffs, NJ: Prentice-Hall
EXHIBIT 9
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
3. An organizing principle which is an overall concept that gives it a purpose
4. The fundamental approach of the system is the interrelationship of the sub-systems of the
organization
Source: Albrecht, K. 1983. New systems view of the organization. In: Organization
Development. Englewood Cliffs, NJ: Prentice-Hall.
EXHIBIT 10
BASIC PARTS OF THE ORGANIZATION
1. The individual
EXHIBIT 13
MIS AS A PYRAMIDAL STRUCTURE
EXHIBIT 14
CONCEPTUAL BASIS OF MIS
1. Concepts of organization
2. Organizational theories, principles, structure, behaviour and processes such as
communication, power and decision making
3. Motivation and leadership behaviour
EXHIBIT 15
IMPLICATIONS OF THE ORGANIZATIONAL STRUCTURE FOR MIS
Concepts:
Hierarchy of authority
Specialization
Formalization
Centralization
Modification of the basic model
Information model of organization
Organizational culture
Organizational power
Organizational growth cycle
Goal displacement
Organizational learning
Project model of organizational change
Case for stable system
Systems that promote organizational change
Organizations as socio-technical systems
Source: Davis, G., and Olson, M.H. 1984. Management Information Systems: Conceptual
Foundation, Structure and Development. New York, NY: McGraw-Hill.
EXHIBIT 16
INFORMATION REQUIREMENTS FOR MIS
1. Assessing information requirements
2. Levels of information requirements
Organizational level
Application level
Technical
Database
Source: Davis, G., and Olson, M.H. 1984. Management Information Systems: Conceptual
Foundation, Structure and Development. New York, NY: McGraw-Hill.
EXHIBIT 17
STRATEGIES FOR DETERMINING INFORMATION REQUIREMENTS
1. Asking
2. Deriving from an existing information system
3. Synthesizing from characteristics of the utilizing system
4. Discovering from experimentation with an involving information system
Source: Davis, G.B. 1982. Strategies for information requirements determination. IBM
Systems Journal, 21(1): 4-31.
EXHIBIT 18
STRATEGY FOR DETERMINING DATA REQUIREMENTS
1. Identify elements in the development process utilizing system:
Information systems or applications
Users
Analysts
Low
Strategy
Asking or deriving from an existing system
Synthesis from characteristics of utilizing systems
High
6. Select one or more from the set of methods to implement the primary strategy
Source: Davis, G.B. 1985. Management Information Systems: Conceptual Foundation,
Structure and Development. New York, NY: McGraw-Hill.
EXHIBIT 19
TYPES OF MIS
1. Databank information system
2. Predictive information system
3. Decision making information system
4. Decision taking information system
EXHIBIT 20
THE MIS PROCESS
1. Understand the organization
2. Analyse the organization's information requirements
3. Plan overall strategy
4. Review
5. Preliminary analysis
6. Feasibility assessment
7. Detailed fact finding
8. Analysis
9. Design
10. Development
11. Cutover
12. Obtain conceptual schema
13. Recruit database administrator
14. Obtain logical schema
15. Create data dictionary
16. Obtain physical schema
17. Create database
18. Modify data dictionary
19. Develop sub-schemas
20. Modify database
21. Amend database
Source: Crowe, T., and Avison, D.E. 1982. Management Information from Databases.
London: Macmillan.
EXHIBIT 21
MIS CRITERIA
Relevance
Management by exception
Accuracy
Adaptability
EXHIBIT 22
STRATEGIES FOR DETERMINING MIS DESIGN
Organization-chart approach
Integrate-later approach
Data-collection approach
Database approach
Top-down approach
Source: Blumenthal, S.C. 1990. Management Information Systems: A Framework for
Planning and Control. Englewood Cliffs, NJ: Institute of Personnel Management.
selecting objectives;
identification of the activities which are required to achieve the stipulated objectives;
detailing the resources - including the various skills - required to undertake the activities;
determining the duration of each activity to be performed; and
defining the sequence of the activities.
The basic requirements during the planning process of most importance in designing and
implementing an MIS for an organization are (Kumar, 1989):
providing the information required by the planner at each step of planning;
establishing procedures for obtaining the information;
arranging for storage of the approved plans, as these will provide the information requisite
to monitoring and controlling; and
evolving methods for communicating the plans to employees in the organization.
Monitoring and controlling
Controlling 'compels events to conform to plans' (Murdick and Ross, 1975). It involves:
establishing standards of performance in order to reach the objective;
measuring actual performance against the set standards; and
keeping actions on course by correcting deviations as they appear (mid-course corrections).
The requirements for successful development of a control system are:
defining expectations in terms of information attributes; and
developing the logic for reporting deviations to all levels of management prior to the actual
occurrence of the deviation.
Decision making
Decision making is the process of selecting the most desirable or optimum alternative to solve
a problem or achieve an objective. The quality and soundness of managerial decisions is
largely contingent upon the information available to the decision-maker. Gorry and Scott
Morton (1971) classified decision making on three levels of a continuum:
Strategic decisions are future-oriented because of uncertainty. They are part of the planning
activity.
Tactical decision making combines planning activities with controlling. It is for short-term
activities and associated allocation of resources to them to achieve the objectives.
Technical decision making is a process of ensuring efficient and effective implementation of
specific tasks.
Systems approach
Modern management is based upon a systems approach to the organization. The systems
approach views an organization as a set of interrelated sub-systems in which variables are
mutually dependent. A system can be perceived as having:
some components, functions and the processes performed by these various components;
relationships among the components that uniquely bind them together into a conceptual
assembly which is called a system; and
an organizing principle that gives it a purpose (Albrecht, 1983).
The organizing system has five basic parts, which are interdependent (Murdick and Ross,
1975). They are:
the individual;
the formal and informal organization;
patterns of behaviour arising out of role demands of the organization;
the role perception of the individuals; and
the physical environment in which individuals work.
The interrelationship of the sub-systems within an organization is fundamental to the systems
approach. The different components of the organization have to operate in a coordinated
manner to attain common organizational goals. This results in synergic effects. The term
synergy means that when different sub-systems work together they tend to be more efficient
than if they work in isolation (Murdick and Ross, 1975). Thus, the output of a system with
well integrated sub-systems would be much more than the sum of the outputs of the
independent sub-systems working in isolation.
The systems approach provides a total view of the organization. It enables analysis of an
organization in a scientific manner, so that operating management systems can be developed
and an appropriate MIS designed (Murdick and Ross, 1975).
By providing the required information, an MIS can help interrelate, coordinate and integrate
different sub-systems within an organization, thus facilitating and increasing coordinated
working of the sub-systems, with consequent synergism. The interaction between different
components of the organization depends upon integration, communication and decision
making. Together they create a linking process in the organization.
Integration ensures that different sub-systems work towards the common goal. Coordination
and integration are useful controlling mechanisms which ensure smooth functioning in the
organization, particularly as organizations become large and increasingly complex. As
organizations face environmental complexity, diversity and change, they need more and more
internal differentiation, and specialization becomes complex and diverse. The need for
integration also increases as structural dimensions increase.
Communication integrates different sub-systems (specialized units) at different levels in an
organization. It is thus a basic element of the organizational structure necessary for achieving
the organization's goals.
A first step in designing and developing an MIS is to assess the information needs for decision
making of management at different hierarchical levels, so that the requisite information can be
made available in both timely and usable form to the people who need it. Such assessment of
information needs is usually based on personality, positions, levels and functions of
management. These determine the various levels of information requirements.
Table 1 Organizational structural implications for information systems
Concept
Hierarchy of authority A tall hierarchy with narrow span of control requires more formal
control information at upper levels than a flat hierarchy with wide
span of control.
Specialization
Formalization
Centralization
Organizational growth The information system may need to change at different stages of
growth.
Goal displacement
Organizational
learning
Project model of
Describes general concepts for managing change with information
organizational change system projects.
Case for stable system Establish control over frequency of information system changes.
Organizations as
socio-technical
systems
4. Determine how the overall requirements uncertainties would be affected by the combined
effects of the process uncertainties.
Types of MIS
MIS can be categorized (Mason, 1981) as follows:
Databank information systems refer to creation of a database by classifying and storing data
which might be potentially useful to the decision-maker. The information provided by the
databank is merely suggestive. The decision-maker has to determine contextually the cause
and effect relationships. MIS designs based on the databank information system are better
suited for unstructured decisions.
Predictive information systems provide source and data along with predictions and
inferences. The decision-maker can also enquire as to 'what if a certain action is taken?' and
whether the underlying assumptions are true. This type of MIS is useful for semi-structured
decisions.
Decision-making information systems provide expert advice to the decision-maker either in
the form of a single recommended course of action or as criteria for choice, given the value
system prevailing in the organization. The decision-maker has just to approve, disapprove or
modify the recommendation. Decision-making information systems are suitable for structured
decisions. Operations research and cost-effectiveness studies are examples of decision-making
information systems.
Decision-taking information systems integrate predictive information and decision-making
systems.
Process of MIS
The MIS implementation process (Table 3) involves a number of sequential steps (Murdick
and Ross, 1975):
1. First establish management information needs and formulate broad systems objectives so as
to delineate important decision areas (e.g., general management, financial management or
human resources management). Within these decision areas there will be factors relevant to
the management decision areas, e.g., general management will be concerned about its
relationship with the managing board, institute-client relationships and information to be
provided to the staff. This will then lead the design team to ask what information units will be
needed to monitor the identified factors of concern. Positions or managers needing
information for decision making will be identified.
2. Develop a general description of a possible MIS as a coarse design. This design will have
to be further refined by more precise specifications. For efficient management of information
processing, the MIS should be based on a few databases related to different sub-systems of
the organization.
3. Once the information units needed have been determined and a systems design developed,
decide how information will be collected. Positions will be allocated responsibility for
generating and packaging the information.
4. Develop a network showing information flows.
5. Test the system until it meets the operational requirements, considering the specifications
stipulated for performance and the specified organizational constraints.
6. Re-check that all the critical data pertaining to various sub-systems and for the organization
as a whole are fully captured. Ensure that information is generated in a timely manner.
7. Monitor actual implementation of the MIS and its functioning from time to time.
Table 3 Methodology for implementing MIS
1. Understand the organization
4. Review
5. Preliminary analysis
6. Feasibility assessment
8. Analysis
9. Design
10. Development
11. Cutover
Adaptability The information system should have an in-built capability for re-design so that
it can suitably adapt to environmental changes and changing information requirements.
References
Albrecht, K. 1983. A new systems view of the organization. in: Organization Development.
Englewood Cliffs, NJ: Prentice-Hall.
Bee, R., & Bee, F. 1990. Management Information Systems and Statistics. [Management
Studies Series] London: Institute of Personnel Management.
Blumenthal, S.C. 1969. Management Information System: A Framework for Planning and
Control. Englewood Cliffs, NJ: Prentice-Hall.
Burch, J.G., Jr., & Strater, F.R., Jr. 1979. Information Systems: Theory and Practice. New
York, NY: John Wiley.
Crowe, T., & Avison, D.E. 1982. Management Information from Databases. London:
Macmillan.
Davis, G.B. 1982. Strategies for information requirements determination. IBM Systems
Journal, 21 (1): 4-31.
Davis, G.B., & Olson, M.H. 1984. Management Information Systems: Conceptual
Foundations, Structure and Development. 2nd ed. New York, NY: McGraw-Hill.
Gorry, G., & Scott Morton, M.S. 1971. A framework for management information systems.
Sloan Management Review, Fall 1971.
Hopkins, R.C. et al., 1962. A Systematic Procedure for System Development: Systems
Philosophy. Englewood Cliffs, NJ: Prentice-Hall.
Kumar, H. 1989. Management Information Systems: A Conceptual and Empirical Approach.
New Delhi: Ashish Publishing House.
Lucas, H.C., Jr. 1978. Information Systems Concepts for Management. New York, NY:
McGraw-Hill.
Mason, R.O. 1981. Basic concepts for designing management information systems. In:
Mason, R.O., & Swanson, E.B. (eds) Measurements for Management Decision. Philippines:
Addison-Wesley.
Mehra, B.K. 1982. Putting management back into MIS. pp. 41-50, in: Keen, G.W. (ed)
Perspectives on Information Management. New York, NY: John Wiley.
Murdick, R.G., & Ross, J.E. 1975. Information Systems for Modern Management. Englewood
Cliffs, NJ: Prentice-Hall.
Zani, W.M. 1970. Blueprint for management information system. Harvard Business Review,
November-December 1970.
Many organizations have purchased computers for data processing and for meeting the
statutory requirements of filing the returns and reports to the Government. Computers
are used mainly for computing and accounting the business transactions and have not
been considered as a tool for information processing. The organizations have invested on
computers and expanded its use by adding more or bigger computers to take care of the
numerous transactions in the business. In this approach, the information processing
function of the computers in the organization never got its due regard as an important
asset to the organization. In fact, this function is misinterpreted as data processing for
expeditious generation of reports and returns, and not as information processing for
management actions and decisions. However, the scene has been changing since late
eighties when the computers became more versatile, in the function of Storage,
Communications, Intelligence and Language. The computer technology is so advanced
that the barriers of storage, distance understanding of language and speed are broken.
The computers have become user-friendly. They can communicate to any distance and
hare data, information and physical resources of other computers. Computers can now be
used as a tool for information processing and communication. It can be used for storing
large database or knowledgebase. It can be used for knowing the current status of any
aspect of the business due to its online real time processing capability. With the
advancement of computer technology more popularly known as information technology,
it is now possible to recognize information as a valuable resource like money and
capacity. It is necessary to link its acquisition, storage, use, and disposal as per the
business needs for meeting the business objectives. Such a broad based activity can be
executed only when it is conceived as a system. This system should deal with
management information and not with data processing alone. It should provide support
for management planning, decision making and action. It should support the needs of the
lower management as well as that of the top management. It should satisfy the needs of
different people in the organization at different levels having varying managerial
capabilities. It should provide support to the changing needs of business management. In
short, we need a Management Information System flexible enough to deal with the
changing information needs of the organization. It should be conceived as an open
system continuously interacting with the business environment with a built-in mechanism
to provide the desired information as per the new requirements of the management. The
designing of such an open system is a complex task. It can be achieved only if the MIS is
planned, keeping in view, the plan of the business management of the organization. The
plan of MIS is consistent to the business plan of the organization. The information needs
for the implementation of the business plan should find place in the MIS. To ensure such
an alignment possibility, it is necessary that the business plan strategic or otherwise,
states the information needs. The information needs are then traced to the source data
and the systems in the organization which generate such a data. The plan of
development of the MIS is linked with the steps of the implementation in a business
development plan. The system of information generation is so planned that strategic
information is provided for the strategic planning, control information is provided for a
short term planning and execution. The details of information are provided to the
operations management to assess the status of an activity and to find ways to make up, if
necessary. Once the management needs are translated into information needs, it is left to
the designer to evolve a plan of MIS development and implementation.
b) Contents of the MIS Plan
A long range MIS plan provides direction for the development of the systems, and
provides a basis for achieving the specific targets or tasks against a time frame. The plan
would have contents which will be dealt by the designer under a support from the top
management.
C) MIS Goals and Objectives
It is necessary to develop the goals and objectives for the MIS which will support the
business goals. The MIS goals and objectives will consider management philosophy,
policy constraints, business risks, internal and external environment of the organization
and the business. The goals and the objectives of the MIS would be so stated that they
can be measured. The typical statements of the goals are as under:
o It should provide online information on the stock, markets and the accounts balances.
o The query processing should not exceed more than three seconds.
o The focus of the system will be on the end user computing and access facilities.
Such statements of the goals and objectives enable the designer to set the direction and
design implementation strategies for the MIS Plan.
Strategy for the Plan Achievement
The designer has to take a number of strategic decisions for the achievement of the MIS
goals and objectives. They are:
a) Development strategy: An online, a batch, a real time technology platform.
b) System development strategy: Any approach to the system development
Operational vs. Functional Accounting vs. Analysis Database vs. Conventional approach
Distributed vs. Decentralized processing One Database vs. multiple databases SSAD vs.
OOT
c) Resources for system development: In house vs. external, customized
development vs. the use of packages.
d) Manpower composition: Analyst, programmer skills and knowhow.
The Architecture of the MIS
The architecture of the MIS plan provides a system structure and their input, output and
linkages. It also provides a way to handle the systems or subsystems by way of
simplification, coupling and decoupling of subsystems. It spells out in detail the
subsystems from the data entry to processing, analysis to modeling, and storage to
printing.
The System Development Schedule
A schedule is made for the development of the system. While preparing the schedule due
consideration is given to the importance of the system in the overall information
requirement. Due regard is also given to logical system development. For example, it is
necessary to develop the accounting system first and then the analysis. Further, unless
the systems are fully developed their integration is not possible. This development
schedule is to be weighed against the time scale for achieving certain information
requirement linked to a business plan. If these are not fully met, it is necessary to revise
the time schedule and also the development schedule, whenever necessary.
Hardware and Software Plan
Giving due regard to the technical and operational feasibility, the economics of
investment is worked out. Then the plan of procurement is made after selecting the
hardware and software. One can take the phased approach of investment starting from
the lower configuration of hardware going over to higher as development takes place. The
process is to match the technical decisions with the financial decisions. The system
development schedule is linked with the information requirements which in turn, are
linked with the goals and objectives of the business. The selection of the architecture, the
approach to the information system development and the choice of hardware and
software are the strategic decisions in the design and development of the MIS in the
organization. The organizations which do not care to take proper decisions in these areas
suffer from overinvestment, underutilization and are not able to meet the critical
information requirements. It is important to note the following points:
1. The organizations strategic plan should be the basis for the MIS strategic plan.
2. The information system development schedule should match with the implementation
schedule of the business plan.
3. The choice of information technology is a strategic business decision and not a financial
decision.
Development of Information Systems
a) Development and Implementation of the MIS
Once the plan of MIS is made, the development of the MIS calls for determining the
strategy of development is discussed earlier, the plan consists of various systems and
subsystems. The development strategy determines where to begin and in what sequence
the development can take place with the sole objective of assuring the information
support. The choice of the system or the subsystem depends on its position in the total
MIS plan, the size of the system, the user's understanding of the systems and the
complexity and its interface with other systems. The designer first develops systems
independently and starts integrating them with other systems, enlarging the system
scope and meeting the varying information needs. Determining the position of the system
in the MIS is easy. The real problem is the degree of structure, and formalization in the
system and procedures which determine the timing and duration of development of the
system. Higher the degree of structured and formalization, greater is the stabilization of
the rules, the procedures, decision-making and the understanding of the overall business
activity. Here, it is observed that the user's and the designer's interaction is smooth, and
their needs are clearly understood and respected mutually. The development becomes a
method of approach with certainty in input process and outputs.
b) Prototype Approach
When the system is complex, the development strategy is Prototyping of the System.
Prototyping is a process of progressively ascertaining the information needs, developing
methodology, trying it out on a smaller scale with respect to the data and the complexity,
ensuring that it satisfies the needs of the users, and assess the problems of development
and implementation.
This process, therefore, identifies the problem areas, inadequacies in the prototype visa is
fulfillment of the information needs. The designer then takes steps to remove the
inadequacies. This may call upon changing the prototype of the system, questioning the
information needs, streamlining the operational systems and procedures and move user
interaction.
In the prototyping approach, the designer's task becomes difficult, when there are
multiple users of the same system and the inputs they use are used by some other users
as well. For example, a lot of input data comes from the purchase department, which is
used in accounts and inventory management.
The attitudes of various users and their role as the originators of the data need to be
developed with a high degree of positivism. It requires, of all personnel, to appreciate that
the information is a corporate resource, and all have to contribute as per the designated
role by the designer to fulfill the corporate information needs. When it comes to
information the functional, the departmental, the personal boundaries do not exist. This
call upon each individual to comply with the design needs and provide without fail the
necessary data inputs whenever required as per the specification discussed and finalized
by the designer.
Bringing the multiple users on the same platform and changing their attitudes toward
information, as a corporate resource, is the managerial task of the system designer. The
qualification, experience, knowledge, of the state of art, and an understanding of the
corporate business, helps considerably, in overcoming the problem of changing the
attitudes of the multiple users and the originators of the data.
c) Life Cycle Approach
There are many systems or subsystems in the MIS which have a life cycle, that is, they
have birth and death. Their emergence may be sudden or may be a part of the business
need, and they are very much structured and rule based. They have 100% clarity of
inputs and their sources, a definite set of outputs in terms of the contents and formats.
These details more or less remain static from the day the system emerges and remains in
that static mode for a long time. Minor modifications or changes do occur but they are not
significant in terms of handling either by the designer or the user of the system. Such
systems, therefore, have a life and they can be developed in a systematic manner, and
can be reviewed after a year or two, for significant modification, if any.
Examples of such systems are pay roll, share accounting, basic financial accounting,
finished goods accounting and dispatching, order processing, and so on. These systems
have a fairly long duration of survival and they contribute in a big way as sources of data
to the Corporate MIS. Therefore, their role is important and needs to be designed from the
viewpoint as an interface to the Corporate MIS.
d) Implementation of the Management Information System
The implementation of the system is a management process. It brings about
organizational change It affects people and changes their work style. The process evokes
a behavior response which could be either favorable or unfavorable depending upon the
strategy of system implementation.
In the process of implementation, the system designer acts as a change agent or a
catalyst. For a successful implementation he has to handle the human factors carefully.
The user of the system has a certain fear complex when a certain cultural work change is
occurring. The first and the foremost fear are about the security to the person if the
changeover from the old to new is not a smooth one. Care has to be taken to assure the
user that such fears are baseless and the responsibility, therefore, rests with the designer.
The second fear is about the role played by the person in the organization and how the
change affects him. On many occasions, the new role may reduce his importance in the
organization, the work design may make the new job impersonal, and a fear complex may
get reinforced that the career prospects may be affected. There are certain guidelines for
the systems designer for successful implementation of the system. The system designer
should not question beyond a limit the information need of the user.
1. Not to forget that his role is to offer a service and not to demand terms.
2. Remember that the system design is for the use of the user and it is not the designer's
prerogative to dictate the design features. In short, the designer should respect the
demands of the user.
3. Not to mix up technical needs with the information needs. He should try to develop
suitable design with appropriate technology to meet the information needs. The designer
should not recommend modifications of the needs, unless technically infeasible.
4. Impress upon the user the global nature of the system design which is required to meet
the current and prospective information need.
5. Not to challenge the application of the information in decision-making. It is the sole
right of the user to use the information the way he thinks proper.
6. Impress upon the user that the quality of information depends on the quality of input.
7. Impress upon the user that you are one of the users in the organization and that the
information is a corporate resource and he is expected to contribute to the development
of the MIS.
8. Ensure that the user makes commitment to all the requirements of the system design
specifications. Ensure that he appreciates that his commitments contribute largely to the
quality of the information and successful implementation of the system.
9. Ensure that the overall system effort has the management's acceptance.
10. Enlist the user's participation from time to time, so that he is emotionally involved in
the process of development.
11. Realize that through serving the user, he is his best guide on the complex path of
development.
12. Not to expect perfect understanding and knowledge from the user as he may be the
user of a non-computerized system. Hence, the designer should be prepared to change
the system specifications or even the design during the course of development.
13. Impress upon the user that the change, which is easily possible in manual system, is
not as easy in the computer system as it calls for changes in the programs at cost.
14. Impress upon the user that perfect information is nonexistent His role therefore still
has an importance in the organization.
15. Ensure that the other organization problems are resolved first before the MIS is taken
for development.
16. Conduct periodical user meetings on systems where you get the opportunity to know
the ongoing difficulties of the users.
17. Train the user in computer appreciation and systems analysis as his perception of the
computerized information system will fall short of the designer's expectation.
Implementation of the MIS in an organization is a process where organizational
transformation takes place. This change can occur in a number of ways. The Lewin's
model suggests three steps in this process. The first step is unfreezing the organization
to make the people more receptive and interested in the change. The second step is
choosing a course of action where the process begins and reaches the desired level of
stability, and the third step is Refreezing, where the change is consolidated and
equilibrium is reinforced. Many a times, this process is implemented through an external
change agent, such as a consultant playing the role of a catalyst.
The significant problem in this task is the resistance to change. The resistance can occur
due to three reasons, viz., the factors internal to the users of information, the factors
inherent in the design of the system and the factors arising out of the interaction
between the system and its users. The problem of resistance can be handled through
education, persuasion, and participation. This can be achieved by improving the human
actors, and providing incentives to the users, and eliminating the organizational problems
before implementing the system.
Systems Analysis
Introduction to Systems Analysis
System analysis is the survey and planning of the project, the study and analysis of the
existing business and information system and the definition of business requirements.
System analysis involves two phases: study phase and definition phase.
o
o
o
o
Survey phase The purpose of the survey phase is to determine the worthiness of the
project and to create a plan to complete those projects, deemed worthy. To accomplish
the survey phase objectives, the system analyst will work with the system owner, system
users, IS manager and IS staff to:
Survey problems, opportunities and solutions
Negotiate project scope
Plan the project
Present the project
SDLC
System development cycle stages are sometimes known as system study. System
concepts which are important in developing business information systems expedite
problem solving and improve the quality of decision-making.
The system analyst has to do a lot in this connection. They are confronted with the
challenging task of creating new systems and planning major changes in the
organization. The system analyst gives a system development project, meaning and
direction. The typical breakdown of an information systems life cycle includes a feasibility
study, requirements, collection and analysis, design, prototyping, implementation,
validation, testing and operation. It may be represented in the form of a block diagram as
shown below:
Input Design Input design is defined as the input requirement specification as per a
format required. Input design begins long before the data arrives at the device. The
analyst will have to design source documents, input screens and methods and procedures
for getting the data into the computer.
Output Design The design of the output is based on the requirement of the user
manager, customer etc. The output formats have to very friendly to the user. Therefore
the designer has to ensure the appropriateness of the output format.
Development When the design and its methodology are approved, the system is
developed using appropriate business models. The development has to be in accordance
to a given standard. The norms have to be strictly adhered to.
Testing Exhaustive and thorough testing must be conducted to ascertain whether the
system produces the right results. Testing is time consuming: Test data must be carefully
prepared, results reviewed and corrections made in the system. In some instances, parts
of the system may have to be redesigned. Testing an information system can be broken
down into three types of activities: unit testing, system testing and acceptance test. Unit
testing or program testing consists of testing each program separately in the system. The
purpose of such testing is to guarantee that programs are error free, but this goal is
realistically impossible. Instead, testing should be viewed as a means of locating errors in
programs, focusing on finding all ways to make a program fail. Once pinpointed, problems
can be corrected. System testing tests the functioning of the information system as a
whole. It tries to determine if discrete modules will function together as planned and
whether discrepancies exist between the way the system actually works and the way it
was conceived. Among the areas examined are performance time, capacity for file
storage and handling peak loads, recovery and restart capabilities and manual
procedures. Acceptance testing provides the final certification that the system is ready to
be used in a production setting. Systems tests are evaluated by users and reviewed by
management. When all parties are satisfied that the new system meets their standards,
the system is formally accepted for installation.
Implementation and Maintenance
Conversion is the process of changing from the old system to the new system. Four main
conversion strategies can be employed. They are the parallel strategy, the direct cutover
strategy, the pilot strategy and the phased strategy.
In a parallel strategy both the old system and its potential replacement are run together
for a time until everyone is assure that the new one functions correctly. This is the safest
conversion approach because, in the event of errors or processing disruptions, the old
system can still be used as a backup. But, this approach is very expensive, and additional
staff or resources may be required to run the extra system. The direct cutover strategy
replaces the old system entirely with the new system on an appointed day. At first glance,
this strategy seems less costly than the parallel conversion strategy. But, it is a very risky
approach that can potentially be more costly than parallel activities if serious problems
with the new system are found. There is no other system to fall back on. Dislocations,
disruptions and the cost of corrections are enormous.
The pilot study strategy introduces the new system to only a limited area of the
organization, such as a single department or operating unit. When this version is
complete and working smoothly, it is installed throughout the rest of the organization,
either simultaneously or in stages.
The phased approach strategy introduces the new system in stages, either by functions
or by organizational units. If, for example, the system is introduced by functions, a new
payroll system might begin with hourly workers who are paid weekly, followed six months
later by adding salaried employees( who are paid monthly) to the system. If the system is
introduced by organizational units, corporate headquarters might be converted first,
followed by outlying operating units four months later.
Moving from an old system to a new system requires that end users be trained to use the
new system. Detailed documentation showing how the system works from both a
technical and end-user standpoint is finalized during conversion time for use in training
and everyday operations. Lack of proper training and documentation contributes to
system failure, so this portion of the systems development process is very important.
DESIGNING AN MIS
A management information systems must be flexible and
adaptive and must have the capacity to accommodate
deficiencies as the system evolves. Procedures should be
developed to detect these deficiencies and to make
adjustments in the system so as to eliminate or reduce them.
Managers, as well as information specialists and operations
researchers, should participate in each phase of the design of
an MIS.
The design of an MIS should begin with an identification of the
important types of strategic, managerial, and operational
decisions required by the organization. Relationships among
decisions should be defined and the flow of decisions should
be determined. Such a decision-flow analysis often reveals
that important decisions are being made by default. For
example, past decisions often may still be binding on the
operations of an organization even though they are no longer
applicable to current problems and procedures. When asked:
"Why do you follow these procedures," all-too-often the
answer is: "Well, that's the way we have always done it."
An analysis of decision flows may also uncover situations in
which interdependent decisions are being made
independently. Frequently changes can be identified that
should be made in the flow of decisions to correct information
deficiencies which may involve (a) the responsibilities of
management, (b) the organizational structure, or (c) measures
of performance.
The next step in the design of an MIS involves an analysis of
the information requirement of the major classes of decisions.
Ackoff has suggested that organizational decisions can be
grouped into three types: (1) decisions for which adequate
models exist or can be developed and from which optimal
solutions can be derived; (2) decisions for which models can
be constructed but from which optimal solutions cannot be
readily extracted; and (3) decisions for which adequate
models cannot be constructed. [1]
In response to the first type of decisions, the model should
have the capacity to identify the relevant information required
for a solution to the problem. The decision process should be
readily incorporated into the MIS (thereby converting it, at
least partially, to a management control system). In the
second case, while the model may specify what information is
required, a further search process may be necessary,
including the examination of alternative approaches, to fully
explicate these information requirements.
Further research is required in the third situation to determine
what information is relevant and how this information can be
organized to address the decision situation. It may be possible
through such research, to make more explicit the implicit
models used by decision makers and in so doing, to treat
such models as type-2 decision situations.
In each of these categories it is appropriate to provide
feedback by comparing actual decision outcomes with those
predicted by the models. It is important that the MIS have the
capacity not only to answer the questions that might be
addressed to it, but also to report any deviations from
expectations (that is, actual decision outcomes that differ from
those predicted). Each decision made, along with its predicted
outcome, should become an input to a management control
system. [2]
the organization in search for programmed decisions-decisions that have worked successfully in the past. Timely
resource evaluations also provide important inputs into the
process. These evaluations include information regarding the
current fiscal status of the organization (accounting data), as
well as the overall response capacity of other organizational
resources (systems readiness). The process should provide
critical feedback to the further refinement of objectives. In
some cases, this feedback will require a recycling before
proceeding to the next phase.
Program development involves the activities of task
identification and budgeting. Specific operations are detailed
within the framework provided by the strategic plan and fiscal
planning decisions. Responsibilities for carrying out these
operations are assigned, as are the resources required by
these operations. Specific operations may be further detailed
through the procedures of operations planning and control
(which may include such techniques as Program Evaluation
Review Technique (PERT) and Critical Path Method (CPM)).
Programming and scheduling procedures usually require
further information regarding resource capabilities. They also
may precipitate a recycling of the fiscal planning process.
The final component of the MIS involves the information
derived from performance evaluations. Performance
evaluation draws data from the broader environment
regarding the efficiency and effectiveness with which client
needs are met, problems are solved, opportunities are
realized, and so forth. Some writers view performance
evaluation as a separate process outside the management
information system. Others recognize the importance of
incorporating the data and information developed through
such evaluations by referring to a management information
and program evaluation system [4]
A basic problem of organizations today--whether in the public
or private sectors--is to achieve an appropriate balance in
programs and decisions to ensure systems readiness.
Systems readiness defines the response capacity of the
organization in the short-, mid-, and long-range futures.
Sufficient flexibility is required to meet a wide range of
possible competitive actions. The development and
maintenance of an MIS that includes the basic components
outlined herein can contribute significantly to meeting this
challenge.