MANAGEMENT OF INFORMATION SYSTEM

Aditya Kothalkar,Kushagra Upadhyay

Master Of Marketing Management(SBS 303), SIBAR Kondhwa Kondhwa-Saswad Road,Pune 41104 8
aditya.kothalkar@yahoo.com kushagra_upadhyay@yahoo.com

Abstract

Organizations have been developing and implementing computer-based management information systems (MIS) at an increasing rate for the last 35 years. However, evidence indicates that many computer-based MIS are not as successful as they should be and many may be considered failures. There has been much research to investigate organizational factors, individual differences, user involvement and their relationship to MIS success, and in particular, one indicator of MIS success, user information satisfaction (UIS). Little attention, however, has been paid to whether UIS for any particular MIS varies for users from different organization functions and different management levels within an organization. This paper reports the results of a field study of MIS in different organizations in Australia which investigates the relationship between type of user, user involvement and user information satisfaction. The results show that MIS success (UIS) varies between users of the same MIS based on their organizational function and that user involvement in the systems development life cycle (SDLC) has a significant positive effect on UIS. The significance of the effect of user involvement varies for users based on their organizational function. Technical users are less satisfied with MIS than administrative users. The

relationship between user involvement and user control of the systems development process and UIS is significantly different for administrative and technical users

INTRODUCTION :A management information system (MIS) is a system or process that provides the information necessary to manage an organization effectively. MIS and the information it generates are generally considered essential components of prudent and reasonable business decisions. Management information systems (MIS) are a combination of hardware and software used to process information automatically. Commonly, MIS are used within organizations to allow many individuals to access and modify information. In most situations, the management information system mainly operates behind the scenes, and the user community is rarely involved or even aware of the processes that are handled by the system. A computer system used to process orders for a business could be considered a management information system because it is assisting users in automating processes related to orders. Other examples of modern management information systems are websites that process transactions for an organization or even those that serve support requests to users. A simple example of a management information system might be the support website for a product, because it

aut ati all turns information to t after some initial input is provided.

end user

of mass of data, important and to the point data that is needed by the organi ation was stored. Early on, business computers were mostly used for relatively simple operations such as tracking sales or payroll data, often without much detail. Over time these applications became more complex and began to store increasing amounts of information while also interlinking with previously separate information systems. As more and more data was stored and linked man began to analyze this information into further detail, creating entire management reports from the raw, stored data. The term "MIS" arose to describe these kinds of applications, which were developed to provide managers with information about sales, inventories, and other data that would help in managing the enterprise. Today, the term is used broadly in a number of contexts and includes (but is not limited to): decision support systems, resource and people management applications, Enterprise Resource Planning (ERP), Supply Chain Management (SCM), Customer Relationship Management (CRM), project management and database retrieval applications. An 'MIS' is a planned system of the collecting, processing, storing and disseminating data in the form of information needed to carry out the functions of management. In a way it is a documented report of the activities that were planned and executed. According to Philip Kotler "A marketing information system consists of people, equipment, and procedures to gather, sort, analyse, evaluate, and distribute needed, timely, and accurate information to marketing decision makers." The terms MIS and information system are often confused. Information systems include systems that are not intended for decision making. The area of study called MIS is sometimes referred to, in a restrictive sense, as information technology management. That area of study should not be confused with computer science. IT service management is a practitioner-focused discipline. MIS has also some differences with ERP which incorporates elements that are not necessarily focused on decision support.

Above computer-based ISs take data as raw material process it and produce information as output.

OVERVIEW:Management information systems are regarded to be a subset of t e overall internal controls procedures in a business, which cover the application of people, documents, technologies, and procedures used by management accountants to solve business problems such as costing a product, service or a business-wide strategy. Management information systems are distinct from regular information systems in that they are used to analyse other information systems applied in operational activities in the organi ation. Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. Decision Support Systems, Expert systems, and Executive information systems. At the start, works in businesses and other organi ations, internal reporting was made manually and only periodically, as a by-product of the accounting system and with some additional statistic(s), and gave limited and delayed information on management performance. Previously, data had to be separated individually by the people as per the requirement and necessity of the organi ation. Later, data was distinguished from information, and so instead of the collection

Any successful MIS must support a businesses Five Year Plan or its equivalent. It must provide for reports based up performance analysis in areas critical to that plan, with feedback loops that allow for titivation of every aspect of the business, including recruitment and training regimens. In effect, MIS must not only indicate how things are going, but why they are not going as well as planned where that is the case. These reports would include performance relative to cost centers and projects that drive profit or loss, and do so in such a way that identifies individual accountability, and in virtual real-time. ERP :Enterprise Resource Planning (ERP) is an integrated computer-based system used to manage internal and external resources, including tangible assets, financial resources, materials, and human resources. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Built on a centralized database and normally utilizing a common computing platform, ERP systems consolidate all business operations into a uniform and enterprise-wide system environment. An ERP system can either reside on a centralized server or be distributed across modular hardware and software units that provide "services" and communicate on a local area network. The distributed design allows a business to assemble modules from different vendors without the need for the placement of multiple copies of complex and expensive computer systems in areas which will not use their full capacity. Enterprise Resource Planning (ERP) is an integrated computer-based system used to manage internal and external resources, including tangible assets, financial resources, materials, and human resources. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Built on a centralized database and normally utilizing a common computing platform, ERP systems

consolidate all business operations into a uniform and enterprise-wide system environment. An ERP system can either reside on a centralized server or be distributed across modular hardware and software units that provide "services" and communicate on a local area network. The distributed design allows a business to assemble modules from different vendors without the need for the placement of multiple copies of complex and expensive computer systems in areas which will not use their full capacity. To be considered an ERP system, a software package should have the following traits:  Should be integrated and operate in real time with no periodic batch updates.  All applications should access one database to prevent redundant data and multiple data definitions.  All modules should have the same look and feel.  Users should be able to access any information in the system without needing integration work on the part of the IS department. COMPONENT :Transactional Backbone Financials Distribution Human Resources Product lifecycle management Advanced Applications Customer Relationship Management (CRM) Supply chain management software Purchasing Manufacturing Distribution (business)Distribution

Warehouse Management System Management Portal/Dashboard Decision Support System These modules can exist in a system or utilized in an ad-hoc fashion.

Management of user privileges for various processes

ADVANTAGES In the absence of an ERP system, a large manufacturer may find itself with many software applications that cannot communicate or interface effectively with one another. Tasks that need to interface with one another may involve:  ERP systems connect the necessary software in order for accurate forecasting to be done. This allows inventory levels to be kept at maximum efficiency and the company to be more profitable.  Integration among different functional areas to ensure proper communication, productivity and efficiency  Design engineering (how to best make the product)  Order tracking, from acceptance through fulfilment  The revenue cycle, from invoice through cash receipt  Managing inter-dependencies of complex processes bill of materials  Tracking the three-way match between purchase orders (what was ordered), inventory receipts (what arrived), and costing (what the vendor invoiced)  The accounting for all of these tasks: tracking the revenue, cost and profit at a granular level.  ERP Systems centralize the data in one place. Benefits of this include:  Eliminates the problem of synchronizing changes between multiple systems consolidation of finance, marketing and sales, human resource, and manufacturing applications  Permits control of business processes that cross functional boundaries  Provides top-down view of the enterprise (no "islands of information"), real time information is available to management

Commercial applications :Manufacturing Engineering, bills of material, scheduling, capacity, workflow quality control, cost management, process, manufacturing projects, flow Supply chain management Order to cash, inventory, order entry, purchasing, product configurator, supply chain planning, supplier scheduling, inspection of goods, claim processing, commission calculation Financials General ledger, cash management, accounts payable, accounts receivable, fixed assets Project management Costing, billing, time and expense, performance units, activity management Human resources Human resources, payroll, training, time and attendance, rostering, benefits Customer relationship management Sales and marketing, commissions, service, customer contact, call-center support Data services Various "self-service" interfaces for customers, suppliers and/or employees Access control work orders, management, manufacturing manufacturing

anywhere, anytime to make proper decisions.  Reduces the risk of loss of sensitive data by consolidating multiple permissions and security models into a single structure.  Shorten production lead time and delivery time  Facilitating business learning, empowering, and building common visions.

DATA, INFORMATION AND SYSTEMS

The internet became hugely popular, allowing nearly anyone world-wide to share and gather information within seconds by means of television and telephone networks interconnected across the globe. Voi over Internet Protocol (VoIP, Voice over IP) is a general term for a family of methodologies, communication protocols, and transmission technologies for delivery of voice

communications and multimedia sessions over Internet Protocol (IP) networks, such as the Internet. Other terms frequently encountered and synonymous with VoIP are IP telephony, Internet telephony, voice over broadband (VoBB), broadband telephony, and broadband phone. Internet telephony refers to communications services voice, facsimile, and/or voicemessaging applications that are transported via the Internet, rather than the public switched telephone network (PSTN). The basic steps involved in originating an Internet telephone call are conversion of the analog voice signal to digital format and compression/translation of the signal into Internet protocol (IP) packets for transmission over the Internet; the process is reversed at the receiving end. VoIP systems employ session control protocols to control the set-up and tear-down of calls as well as audio codecs which encode speech allowing transmission over an IP network as digital audio via an audio stream. Codec use is varied between different implementations of VoIP (and often a range of codecs are used); some implementations rely on narrowband and compressed speech, while others support high fidelity stereo codecs.

Computer Literacy Replacing Literacy

Traditional

Key to full participation in western society

Various Advantages of Information Management Systems: When information systems are designed to provide information needed for effective decision making by managers, they are called management information systems. MIS is a formal system for providing management with accurate and timely information necessary for decision making. The system provides information on the past, present and project future and on relevant events inside and outside the organization. It may be defined as a planned and integrated system for gathering relevant data, converting it in to right information and supplying the same to the concerned executives. The main purpose of MIS is to provide the right information to the right people at the right time. The Concept of management information systems originated in the 1960s and become the byword of almost all attempts to relate computer technology and systems to data processing in business . During the early 1960s , it became evident that the computer was being applied to the solution of business problem in a piecemeal fashion, focusing almost entirely on the computerization of clerical and record keeping tasks. The concepts of management information systems was developed to counteract such in efficient development and in effective use of the computer. The MIS concepts is vital to efficient and effective computer use in business of two major reasons:
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Information Systems Careers

 Systems analyst, specialist in enterprise resource planning (ERP), database administrator, telecommunications specialist, consulting, etc.

Knowledge Workers

 Managers and non-managers  Employers seek computer-literate professionals who know how to use information technology.

It serves as a systems framework for organizing business computer applications. Business applications of computers should be viewed as interrelated and integrated computer based information systems and not as independent data processing job . In emphasizes the management orientation of electronics information processing in

business . The primary goal of computer based information systems should be the processing of data generated by business operations. A management information system is an integrated man machine systems that provides information to support the planning and control function of manager in an organization.

The output of an MIS is information that sub serves managerial functions. When a system provides information to persons who are not managers, then it will not be considered as part of an MIS . For example , an organization often process a lot of data which it is required by law to furnish to various government regulatory agencies. Such a system, while it may have interfaces with an MIS, would not be apart of it, Instances of such systems are salary disclosures and excise duty statements. By the same token to sophisticated computer aided design system for engineering purposes would also not be a part of an MIS. Generally, MIS deals with information that is systematically and routinely collected in accordance with a well-defined set of rules. Thus, and MIS is a part of the formal information network in an organization. Information that has major managerial planning significance is sometimes collected at golf courses. Such information is not part of MIS, however, one- shot market research data collected to gauge the potential of a new product does not come within the scope of an MIS by our definition because although such information may be very systematically collected it is not collected on a regular basis. Normally, the information provided by an MIS helps the managers to make planning and control decisions. Now, we will see, what is planning and control. Every organization in order to function must

perform, certain operations. For Example, a car manufacturer has to perform certain manufacturing activities, a wholesaler has o provide water to its area of jurisdiction. All these are operations that need to be done. Besides, these operations, an organization must make plans for them. In other words it must decide on how many and what type of cars to make next month or what commissions to offer retailers or what pumping stations to install in the next five years.

Also an organization must control the operations in the light of the plans and targets developed in the planning process. The car manufacturer must know if manufacturing operations are in line with the targets and if not, he must make decisions to correct the deviation or revise his plans. Similarly the wholesaler will want to know the impacts that his commissions have had on sales and make decisions to correct adverse trends. The municipal corporation will need to control the tendering process and contractors who will execute the pumping station plans. Generally, MIS is concerned with planning and control. Often there are elaborate systems for information that assists operations. For example, the car manufacturer will have a system for providing information to the workers on the shop floor about the job that needs to be done on a particular batch of material. There may be route sheets, which accompany the rate materials and components in their movement through various machines. This system per se provides only information to support operation. It has no managerial decision-making significance. It I not part of an MIS. If, however, the system does provided information on productivity, machine utilization or rejection rates, then we would say that the system is part of an MIS.
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Generally MIS has all the ingredients that are employed in providing information support to manager to making planning and control decisions. Managers often use

historical data on an organizations activities as well as current status data make planning and control decisions. Such data comes from a data base which is contained in files maintained by the organization . This data base is an essential component of an MIS. Manual procedures that are used to collect and process information and computer hardware are obvious ingredients of an MIS . These also form part of the MIS. In summary , when we say that an MIS is an integrated man machine systems that provided information to supports the planning and control function of managers in an origination . It does the following function . - sub serves managerial function - collects stores , evaluates systematically and routinely information

CONCLUSION : 1. It Facilitates planning : MIS improves the quality of plants by providing relevant information for sound decision making . Due to increase in the size and complexity of organizations, managers have lost personal contact with the scene of operations.

2. In Minimizes information overload : MIS change the larger amount of data in to summarized form and there by avoids the confusion which may arise when managers are flooded with detailed facts.

- supports planning and control decisions - Includes files , hardware , software , software and operations research models.

3. MIS Encourages Decentralization : Decentralization of authority is possibly when there is a system for monitoring operations at lower levels. MIS is successfully used for measuring performance and making necessary change in the organizational plans and procedures.

Effective management information systems are needed by all business organization because of the increased complexity and rate of change of todays business environment . For Example, Marketing manager need information about sales performance and trends, financial manger returns, production managers needs information analysing resources requirement and worker productivity and personnel manager require information concerning employee compensation and professional development. Thus, effective management information systems must be developed to provide modern managers with the specific marketing , financial, production and personnel information products they required to support their decision making responsibilities .

4. It brings Co-ordination : MIS facilities integration of specialized activities by keeping each department aware of the problem and requirements of other departments. It connects all decision centers in the organization .

5. It makes control easier : MIS serves as a link between managerial planning and control. It improves the ability of management to evaluate and improve performance . The used computers has increased the data processing and storage capabilities and reduced the cost .

6. MIS assembles, process , stores , Retrieves , evaluates and Disseminates the information .

ACKNOWLEDGMENT The authors would like to thank Sinhgad Institute of Business And Research, Pune for this work. REFERENCES
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