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Management information systems encompass a broad and complex topic. To make this topic
more manageable, boundaries will be defined. First, because of the vast number of activities
relating to management information systems, a total review is not possible. Those discussed here
is only a partial sampling of activities, reflecting the author's viewpoint of the more common and
interesting developments. Likewise where there were multiple effects in a similar area of
development, only selected ones will be used to illustrate concepts. This is not to imply one
effort is more important than another. Also, the main focus of this paper will be on information
systems for use at the farm level and to some lesser extent systems used to support researchers
addressing farm level problems (e.g., simulation or optimization models, geographic information
systems, etc.) and those used to support agribusiness firms that supply goods and services to
agricultural producers and the supply chain beyond the production phase.
Secondly, there are several frameworks that can be used to define and describe management
information systems. More than one will be used to discuss important concepts. Because more
than one is used, it indicates the difficult of capturing the key concepts of what is a management
information system. Indeed, what is viewed as an effective and useful management information
system is one environment may not be of use or value in another.
Lastly, the historical perspective of management information systems cannot be ignored. This
perspective gives a sense of how these systems have evolved, been refined and adapted as new
technologies have emerged, and how changing economic conditions and other factors have
influenced the use of information systems.
Before discussing management information systems, some time-tested concepts should be
reviewed. Davis offers a commonly used concept in his distinction between data and
information. Davis defines data as raw facts, figures, objects, etc. Information is used to make
decisions. To transform data into information, processing is needed and it must be done while
considering the context of a decision. We are often awash in data but lacking good information.
However, the success achieved in supplying information to decision makers is highly variable.
Barabba, expands this concept by also adding inference, knowledge and wisdom in his
modification of Haechel's hierarchy which places wisdom at the highest level and data at the
lowest. As one moves up the hierarchy, the value is increased and volume decreased. Thus, as
one acquires knowledge and wisdom the decision making process is refined. Management
information systems attempt to address all levels of Haechel's hierarchy as well as converting
data into information for the decision maker. Another important concept from Davis and Olsen is
the value if information. They note that ³in general, the value of information is the value of the
change in decision behavior caused by the information, less the cost of the information.´ This
statement implies that information is normally not a free good. Furthermore, if it does not change
decisions to the better, it may have no value. Many assume that investing in a ³better´
management information system is a sound economic decision. Since it is possible that the better
system may not change decisions or the cost of implementing the better system is high to the
actual realized benefits, it could be a bad.
This information portrays the ³what is´ condition of a business, and it describes the state of the
business at a specified point in time. Descriptive information is very important to the business
manager, because without it, many problems would not be identified. Descriptive information
includes a variety of types of information including financial results, production records, test
results, product marketing, and maintenance records.
Descriptive information can also be used as inputs to secure other needed types of information.
For example, ³what is´ information is needed for supplying restraints in analyzing farm
adjustment alternatives. It can also be used to identify problems other than the ³what is´
condition. Descriptive information is necessary but not completely sufficient in identifying and
addressing farm management problems.
The second type of information is diagnostic information, This information portrays this ³what is
wrong´ condition, where ³what is wrong´ is measured as the disparity between ³what is´ and
³what ought to be.´ This assessment of how things are versus how they should be (a fact-value
conflict) is probably our most common management problem. Diagnostic information has two
major uses. It can first be used to define problems that develop in the business. Are production
levels too low? Is the rate earned on investment too low? These types of question cannot be
answered with descriptive information alone (such as with financial and production records). A
manager may often be well supplied with facts about his business, yet be unable to recognize this
type of problem. The manager must provide norms or standards which, when compared with the
facts for a particular business, will reveal an area of concern. Once a problem has been
identified, a manager may choose an appropriate course of action for dealing with the problem
(including doing nothing). Corrective measures may be taken so as to better achieve the
manager¶s goals. Several pitfalls are involved for managers in obtaining diagnostic information.
Adequate, reliable, descriptive information must be available along with appropriate norms or
standards for particular business situations. Information is inadequate for problem solving if it
does not fully describe both ³what is´ and ³what ought to be.´
As description is concerned with ³what is´ and diagnostics with what is wrong,´ prediction is
concerned with ³what if...?´ Predictive information is generated from an analysis of possible
future events and is exceedingly valuable with ³desirable´ outcomes. With predictive
information, one either defines problems or avoids problems in advance. Prediction also assists
in analysis. When a problem is recognized, a manager will analyze the situation and specify at
least one alternative (including doing nothing) to deal with it. Predictive information is needed
by managers to reduce the risk and uncertainty concerning technology, prices, climate,
institutions, and human relationships affecting the business. Such information is vital in
formulating production plans and examining related financial impacts. Predictive information
takes many forms. What are the expected prices next year? What yields are anticipated? How
much capital will be required to upgrade production technologies? What would be the difference
in expected returns in switching from a livestock farm to a cropping farm? Management has long
used various budgeting techniques, simulation models, and other tools to evaluate expected
changes in the business.
Without detracting from the importance of problem identification and analysis in management,
the crux of management tasks is decision making. For every problem a manager faces, there is a
³right´ course of action. However, the rightness of a decision can seldom, if ever, be measured in
absolute terms. The choice is conditionally right, depending upon a farm manager¶s knowledge,
assumptions, and conditions he wishes to impose on the decision. Prescriptive information is
directed toward answering the ³what should be done´ question. Provision of this information
requires the utilization of the predictive information. Predictive information by itself is not
adequate for decision making. An evaluation of the predicted outcomes together with the goals
and values of the manger provides that basis for making a decision. For example, suppose that a
manager is considering a new changing marketing alternative. The new alternative being
considered has higher ³predicted´ returns but also has higher risks and requires more
management monitoring. The decision as to whether to change plans depends upon the managers
evaluation of the worth of additional income versus the commitment of additional time and
higher risk. Thus, the goals and values of a farm manager will ultimately enter into any decision.
¬OW TO DEVELOP A
MANAGEMENT INFORMATION
SYSTEM
COMPANY VISITED :DEVA SOLUTION
¬OW TO DEVELOP A MANAGEMENT
INFORMATION SYSTEM
The workshop discusses the strategy and approach to developing
management information systems in community oriented projects and
programs. Participants will discuss their approaches and experiences in
researching information needs, designing performance measurement
frameworks, developing indicators, evolving work plans and reporting results.
GOAL
G Contribute to a better understanding of organizations, communities and clients
OBJECTIVES
G To stress the importance of Management Information Systems in keeping records of
services provided by Community based organizations
Purpose
G ÷nderstand the basics of management information system (MIS) familiarize with the
stages of development of a simple MIS and its applications.
TRAINING MET¬ODS
G Adult education
G Participatory
G Experiential learning
G ÷se of visual aids
G Small group work: discussion, exercises
ASSUMPTION
G Community based agencies benefit from developing a management information system.
This is an introductory program for frontline workers, practitioners and coordinators
without background in MIS.
- AGENDA -
Welcome
Introduction
Review of agenda and objectives
Current Practices in MIS ± Experience sharing
Importance of Management Information System
Concepts of Information, Information Systems and Management
Dos and Don¶ts in developing MIS
Steps in developing MIS
Evaluation
Closure
- CURRICULUM -
1. Welcome (5 minutes)
The representative of the agency hosting the workshop venue (agency whose facility is
hired for the workshop) or the facilitator introduce themselves could welcome the
participants and introduce the facilitator. Further, the representative could walk through
the physical facilities such as the arrangements for coffee/tea, washrooms and telephone
facility.
Why MIS?
The facilitator introduces the overhead on `Why are we focusing attention on developing
MIS¶. An important concept emerging in non-profit sector is `competitiveness¶ of agencies
and how to become competitive in an environment of funds crunch. The facilitator could
discuss the dependence and interrelationships among different units such as finance,
program development, outreach, etc within an agency.
Canada¶s workforce largely consists of µknowledge-workers¶. The facilitator stimulates
discussion in reviewing the impact of globalization, funding cuts, need for increased
productivity and demands from funders to demonstrate results. ÷nderline the fact that
about 80 per cent of a frontline worker¶s time is devoted to receiving, processing and
sharing information in community agencies. Two significant resources of a modern
organization are people and information and success depends on how these are managed.
The facilitator needs to explain that developing a MIS has costs as well. These relate to
equipment, hiring of personnel, orientation and training and staff time adjustment. The
decision to develop a MIS is an important one and has to be ratified by the Board based
on a recommendation from agency management. Introduction of MIS calls for newer skills
among the staff to cope with the changes.
Management functions and MIS
The facilitator shows the overhead on management functions. Information is gathered
around critical functions of management such as planning, organizing, staffing, controlling
and communicating. Among these functions, MIS is closer to the controlling function as it
provides feed back on organizational performance and helps in monitoring.
Types of management information
Executive decisions are made using a variety of information. The facilitator introduces the
overhead on types of management information and enables the participants to distinguish
various types and uses of management information. It is vital for the organization to
survive and grow by accessing and processing not only internal information but also
external information. The facilitator could use the examples to elucidate the messages.
External information could include socio-economic situation of clients, public policies,
amendments in social legislation of importance to an agency, funding programs introduced
or planned by federal or provincial governments, grants from foundations and the work of
other agencies.
?
Role of Information
The facilitator highlights the role and uses of information and introduces the overhead on
why management information system. The facilitator promotes discussion by clarifying the
differences between µdata¶ and µinformation¶. Discuss the attributes of information,
particularly the issues of authenticity, timeliness and confidentiality. These factors
underline the significance of information as a resource.
?
Types of Information Systems
In continuation of the discussion on role of information in community agencies, the
facilitator draws the attention of participants to four types of commonly used information
systems. Introduce the overhead on types of information systems and explain with
examples each type. For example, office information system exists in each agency as most
of them have telephone and fax and undertakes correspondence. The decision support
system is a way by which the Board uses the information provided by agency management
to determine policy or other decisions.
Preliminary Investigation
In this phase, the agency needs to critically assess its current system in order to justify the
cost and time involved before deciding on having a new MIS. The facilitator needs to
clarify the MIS need not always involve computers. However, if there are computers the
work gets accelerated.
Requirements Analysis
The facilitator discusses the methods and means of ascertaining the information needs to
be addressed by MIS. Further, the mechanisms for gathering information from primary and
secondary sources are to be determined by agencies. A critical factor is ascertaining MIS
needs of primary and secondary users.
?
?
System Design
The facilitator explains basics of a MIS system elucidating the inputs, the processing and
the outputs. While inputs include information provided by front-line workers, the outputs
could be various types of reports, including those sent periodically to funders . The
procedures define how and in what format the information will be inputted and by whom
and at what intervals. The storage could be manual or electronic or both. Design specifies
the operational parameters at a drawing board stage. One of the inputs for MIS could be
information from a client database.
Other stages
The facilitator systematically discusses the different steps in MIS development in a
universalized perspective. In other words, it needs to be specified that these steps need to
be tailored to one¶s own situation. In the acquisition stage, hardware is procured after
appraisals and cost analysis. Draw attention to the need to ensure compatibility between
what is being acquired and what is already available within the agency.
The implementation step is a crucial one consuming considerable amount of time in MIS
development. Here the application development is done customized to the agency¶s needs.
The procedure and user manuals are developed and personnel are oriented in using MIS.
The software is installed once it is tested and debugged.
8. Closure (5 minutes)
The facilitator provides in about five minutes a quick recap of the major events in the
workshop. Thank the participants for their participation and for their active participation
in the discussions. Encourage the participants to explore the need for MIS in their
agencies.
W¬AT IS INFORMATION?
Information is data presented in a form that is meaningful to the
recipient. It adds to knowledge and is relevant for the situation.
Two types of information are accounting information and
management information.
Data becomes information when they are transformed to
communicate meaning or knowledge, ideas or conclusions. By
itself data is meaningless.
The attributes of an item of information are: accuracy, form,
frequency, breadth (scope), origin, time. horizon. Attributes of a
set of information are relevance, completeness and timeliness.
MANAGEMENT FUNCTIONS
Management is the act or skill of transforming resources (land,
labor, capital and information) onto output to accomplish a desired
result or objective.
Planning ± establishing goals and developing policies,
procedures, and programs to achieve them
Organizing ± grouping activities and establishing organizational
structures and procedures to ensure that the activities are
performed
Staffing ± obtaining and training personnel to work in the
organization in order to achieve goals and objectives
Controlling ± measuring performance against goals and
objectives and developing procedures for adjusting goals,
procedures, or activities.
Communicating ± transferring information on goals, objectives,
and performance to personnel throughout the organization and the
environment
Requirements Analysis
G Knowing the primary and secondary users
G Ascertaining user needs
G Primary and secondary sources of information
G Design, development and implementation needs
Systems design
G Inputs
G Processing
G Outputs
G Storage
G Procedures
G Human resources
Acquisition/procurement
G Compatibility
G Cost effectiveness
G Performance standards
G After sales service
G Configuration
G Portability
Implementation/installation
G Application development
G Testing
G Debugging ± logical and syntactical
G Procedure and user manual preparation
G Orientation and training
Maintenance and upgradation
Preliminary Investigation
G The problem
G Magnitude and scope
G Alternatives
G Viability and cost effectiveness
Requirements Analysis
G Knowing the primary and secondary users
G Ascertaining user needs
G Primary and secondary sources of information
G Design, development and implementation needs
Systems design
G Inputs
G Processing
G Outputs
G Storage
G Procedures
G Human resources
Acquisition/procurement
G Compatibility
G Cost effectiveness
G Performance standards
G After sales service
G Configuration
G Portability
Implementation/installation
G Application development
G Testing
G Debugging ± logical and syntactical
G Procedure and user manual preparation
G Orientation and training
Maintenance and upgradation
Why delays?
Target achievement in developing MIS was behind the schedule due to:
G Overambitious plan of action of the consultant
G Expanded scope of work and complexity of MIS.
G ÷nrealistic action plan.
G Delays in hiring computer programmer
G Delay in selection of what hardware and software to acquire for MIS
G Non-involvement of computer programmer in needs assessment and initial design
process
G Increased dependency on the consultant
G Absence of common understanding between the consultant, programmer and the
management
Based on the delays and problems in launching MIS in Phase ± I, the Project was revised
and the Phase-II was started with modest operational goals.
Lessons from the case
G Concurrently develop capabilities in-house
G Have a technically simple system
G MIS needs to address basic needs of agency and user groups
G ÷se a modular approach linking modules gradually(do not develop a large application)
G Buy software as much as possible from market off the shelf and custo