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MANAGEMENT INFORMATION SYSTEMS

UNIT I

MANAGEMENT INFORMATION SYSTEM

Management:-It has been defined in a variety of ways, but for our purposes it comprises the processes of activities that describe what managers do in their organization, plan, organize, initiate, and control operations. They plan by setting strategies and goals and selecting the best course of action to achieve the plan.

Information consists of data that have been retrieved, processed, or otherwise used for informative or inference purposes, argument, or as a basis for forecasting or decision making.

Systems: - A system can be described simply as a set of elements joined together for a common objective. A subsystem is part of a larger system with which we are concerned. All systems are parts of larger systems. For our purposes the organization is the system and the parts (divisions, departments, functions, units, etc.) are the subsystems.

Information System: An information system can be any organized combination of people, hardware, software, communications networks, and data resources that collects, transforms, and disseminates information in an organization.

MIS Definition
An Integrated, user-machine system for providing information to support operations, management and decision-making functions in an organization. The system utilizes computer hardware and software, manual procedures models for analysis, planning, control and decision making and a database.

Scope of Information System in an Organization


Meeting global challenges Increasing Quality Linking department whose functions are different Capturing Opportunities in Market Enhancing Productivity of Labour. Supporting Corporate Strategy

Need of Information in Business Management


Activity forecasting Monitoring Performance Customer satisfaction Setting revenue goals Market penetration Cost

Need for Information in Decision making


Define the problem Analyzing the problem Develop alternate solutions Select the best solution Convert the decision in to an effective action

What is DATA?

Data is organized information. It can be numbers, words, measurements, observations or even just descriptions of things. Data can be qualitative, or quantitative.

Define data.

Data are words and or numbers, facts, etc. Which have specific meaning. Data derive their meaning from a precise name and agreed upon definitions.

Method of Data collection


Direct observation Survey Sampling

Types of Data
Words Numbers Charts Sound Videos Photos Alphanumeric

Concepts Related to Data

Data Management: Data management is a broad field of study, but essentially is the process. Data management is the process of developing data architectures, Practices and procedures dealing with data and executing these aspects on a regular basis. Data Modeling: Date modeling is first creating a structure for the data that you collect and use then organizing this data in a way that is easily accessible and efficient to store and pull the data for reports and analysis.

Data Warehousing
Data warehousing is storing data effectively so that it can be accessed and used efficiently. Different organizations collect different types of data, but many organizations use their data the same way, in order to create reports and analyze their data to make quality business decisions.

Data Mining

Data mining is process in which large amounts of data are sifted through to show trends, relationships, and patterns. Data mining is crucial components to data management because it expose interesting information about the data being collected. It is important to note that data is primarily collected so it can be used to find these patterns, relationships and trends that can help a business grow or create profit.

Define Information
Information is data that has been processed into a form that is meaningful to the recipient and is of real or perceived value in current or prospective actions or decisions.

Data, Information, and Systems

Generating Information
Computer-based

ISs take data as raw material, process it, and produce information as output.

Difference between Data & Information


Data Data is fact All Data does not become information Information But information is not fact But though information arises from data

Data is the result of routine recording of events and activities taking place.

Generation of information is user driven which is not always automatic.

Data is independent of users

Information is user dependent.

Characteristics of Information
Relevant Complete Accurate Current Economical Flexible Reliable Timely Simple Secure

Uses of Information
Planning Recording Controlling Measuring Decision Making

Types of Information
Strategic Information Tactical Information Operational Information Statutory Information

Sources of Data & Information


Internal Information All accounting Information Records of the people employed by the business Data on the costs associated with business processes Data from the various department

External Information:
Information

relating to way a business should undertake its activities. Information about the markets in which a business operates. Most of the external information that a business needs can be obtained from marketing research.

Social and Ethical issues in Processing of Data & Data accuracy: Information
Data Accuracy refers to the accuracy or correctness of the stored data. Data integrity: Data integrity refers to a condition of the data in which data has not been altered or destroyed in an unauthorized manner. Data Validation: Data validation is used to check for the accuracy of an entry. The methods of data validation are: A range Check A List Check A Type Check A Check Digit

Data Bias: Data bias refers to bias a one sided distortion of the truth within a data source. Data Reliability:
The reliability of all sources should be examined. Reliability can be affected by bias, skewed or affected by inaccurate research or inaccurate analysis.

Privacy: Privacy is the right of an individual to a certain degree of anonymity and to know that data about you is not openly or secretly being recorded in an un reasonable manner.

Ownership and Control of Data: : Access to data: Access is the extent that corporations, government bodies, individual people and others should have access to their own, other peoples data or a collection of other data such as photos or historical information. Acknowledgement of Data Sources: If quotes and images are taken from another source they should be acknowledged. Data Warehousing Data Mining

Information Technology(IT)

Information technology can be defined as collection of computer hardware, software, databases, networking and telecommunication devices that helps the organization to manage the business process more effectively and efficiently.

NEED FOR COMPUTER-BASED INFORMATION SYSTEM

Computer - based processing enables the same data to be processed in many ways. Based on needs, thereby allowing managers to look at the performance of an organization from different angles. As the volume of data has increased and the variety of information and their timeliness is now of great importance. computer based information processing has now become essential for efficiently managing organizations.

To meet competitive. Organizations have to be internationally competitive. The general socio - economic environment demands more up-to-date and accurate information. Human systems are changing faster than ever before. Speed Accuracy

Concept of System

A system can be described simply as a set of elements joined together for a common objective. Simply computer as a system.

Computer system processing

The input devices of a computer system include Keyboards Touch screens Light pen Electronic mice Optical scanners

Optical Character Recognition (OCR) Magnetic Ink Character Recognition (MICR) Sensors

Processing

The Central Processing Unit (CPU) manipulates of symbols, numbers and letters occurs and it controls the other parts of the computer system.

The arithmetic-logic unit (ALU) performs the computers principle logical and arithmetic operations. It adds, subtracts, multiplies and divides, determining whether a number is positive, negative, or zero.

Storage

Primary Storage: * RAM * ROM Secondary Storage: Floppy drive Hard Disk CD DVD Pen drive External Hard Disk

Output Devices
Cathode Ray Tube (CRT) Printers Interactive Multimedia LCD LED Projector

Classification of Computers
A Mainframe A midrange computer A personal computer (pc) A workstation A supercomputer

software
The sets of computer program instructions that direct the operation of the hardware are called software. Computer software can be divided into two major classification: Systems software Application Software

Systems software

System software is the collection of programs that directs a computer to perform functions associated with controlling and directing computer hardware and also determines how application software is run. Examples: DOS Windows BASIC COBOL PC TOOLS

Application Software
Application software is a computer program that direct the performances of a particulars or specific use or application, of computer and computer networks to meet the information processing needs of end users. Example: DBMS Word processors Web Applications Packages Spreadsheets Desktop Publishing Multimedia

Information System

Information System: An information system can be any organized combination of people, hardware, software, communications networks, and data resources that collects, transforms, and disseminates information in an organization.

Functions of IS
Source Collection Of Data Pertinent
Processing data

Output

To reduce uncertainty Information User Decision

To tackle Business Problems To be competitive

IT Vs IS
INFORMATION TECHNOLOGY Hardware Software Databases Networks Other related components are used to build INFORMATION SYSTEMS

Payroll System

Inventory System

Marketing System

Customer Service System

Evolution Of Information System


The first computers were designed to execute complex Scientific military applications- after 2nd World War. The first business applications began in the early 1950 -1960s Data processing Electronic data processing system, Transaction processing system(TPS), Record keeping, Traditional accounting applications.

Evolution Of Information System

1960s 1970 Management reporting (MIS introduced) Mgt reports of specified information to support decision making 1970s 1980s Decision support system was emerged. Interactive Ad hoc support of the managerial decision making process 1980s 1990s Strategy and Enterprise application. End user computing systems EIS, Executive information system, Strategic Information System

Evolution Of Information System

1990s 2000 e business & commerce Internet based e-business & e-commerce system Internet worked enterprises and global ebusiness operations.

Tools for Information system Hardware: People have relied of information systems to communicate with each other using a variety of physical devices Software: information processing instructions and procedures Networks: Communications channels Data resources: stored data Data :Data are the facts and figures. They take the form of historical records that are recorded and filed without immediate intent to retrieve for decision making.

Fundamental Roles Of I

S Applications

In Business
Support business processes Support decision making Support competitive advantage

IS based on Hierarchy

Operational Level System:


Support operational managers by keeping track of the elementary activities and transactions of the organization. It covers things such as sales, receipts, cash deposits, payroll, credit decisions, and flow of materials. Management level systems: Designed to serve the monitoring, controlling, decision-making, and administrative activities of middle managers. Strategic-Level System:

Type of IS based on functions


The

IT provides support in three major areas such as communication, collaboration and data access. Thus we can find information systems and application built for headquarters, for divisions, for departments, and for specific teams (e.g. Quality control teams) such systems can either stand alone or be interconnected. Brief descriptions or these types based on functions are follows: Departmental information system Plant information system Divisional information system Enterprise wide information system Inter organizational Information system

Classification of IS
Information Systems

Operations Support System

Management Support System

Transaction processing systems

Process control systems

Office automation systems

Management information systems

Decision support systems

Executive information systems

Transaction processing system OPERATION SUPPORT SYSTEMS Process control system Enterprise collaboration system

Management information system MANAGEMENT SUPPORT SYSTEMS Decision support system Executive information system

1.

Operations Support System Transaction processing systems Process business exchanges Maintain records about the exchanges Handle routine, yet critical, tasks Perform simple calculations Following routine Business Transaction in a factory

i)

Routine Business Transactions if a factory


Payroll Monitor employee time cards Track employee pay and deduction Issue payroll checks

Purchasing

Issue purchase orders Accept and record deliveries Pay accounts payable

Manufacturing Finance and Accounting

Prepare production reports Prepare quality control reports

Prepare and issue financial statements Maintain tax records Monitor and pay expense accounts

Sales

Keep sales records Issue invoice and billings Track accounts receivable Record and credit sales returns Keep shipping records

ii) Process control systems: monitor and control industrial processes. iii) Office automation systems: automate office procedures and enhance office communications and productivity.

2. Management support systems provide information and support needed for effective decision making by managers

Major categories are:


i)

Management information systems Routine information for routine decisions Operational efficiency Use transaction data as main input Databases integrate MIS in different functional areas

Decision support system (DSS)

A Decision Support System(DSS) is a class of information systems that support business and organizational decision making activities. Typical information that a decision support application might gather and present are:

An inventory of all of your current information assets Comparative sales figures between one week and the next Projected revenue figures based on new product sales assumptions

Benefits of DSS
Improves personal efficiency Expenditures problem solving Facilitates interpersonal communication Promotes learning or training

Application of DSS
One example is the clinical decision support system for medical diagnosis. Bank loan officer verifying the credit of a loan applicant or an engineering firm that has bids on several projects and wants to know if they can be competitive with their costs.

3. Executive information systems (eis)


An EIS is a type of management information system intended to facilitate and support the information and decision making. Provide critical information tailored to the information needs of executives Two widely used software: Hyperion Cognos

Application of EIS
Manufacturing Finance Marketing Production R&D

Advantage of EIS
Easy for upper-level executives to use, extensive computer experience not required in operations. Provides timely delivery of company summary information Filters data for management Improves to tracking information Offers efficiency to decision makers.

Information System Architecture

It refers to how information is organized within a system. It is concerned with the Organization information requirement and the way in which the requirement are met.
Classification of Information system Architecture
Old

Architecture New Architecture

Information System Framework For Business Professionals Foundation concepts: Fundamental behavioral, technical, business, and managerial concepts about the components and roles of information systems. Information technologies: major concepts, developments, and management issues in information technology- that is, hardware, software, networks, data resource management, and many internet-based technologies.

Business applications: The major uses of information systems for the operations,

Information System Framework For Business Professionals

Development processes: How business professionals and information specialists plan, develop and implement information systems to meet business opportunities using several application development approaches. Management challenges: The challenges of effectively and ethically managing information technologies, strategies and security at the end user, enterprise and global levels of a business.

Distributed Network Old Architecture PCs and workstation LAN Mid range Architecture Main frame architecture

Client server architecture New Architecture E-commerce application Internet or web base application

System analyst

The system analyst is the person (or persons) who guides through the development of an information system. A system analyst is the person who selects and configures computer systems for an organization or business.

Role of system analyst


System analyst as a programmer System analyst as a consultant System analyst as a supporting expert System analyst as a agent of change The Architects

Functions of system analyst