Chapter : Management Information System, PPT, Semester, Engineering - Computer Science Engineering (CSE) PDF Download

MANAGEMENT
INFORMATION SYSTEM

The Slide Covers :

Definition

MIS

Management Reporting Alternatives

MIS Model

COMPONENTS OF MIS

MIS Characteristics

STRUCTURE OF MIS

MIS Support for Decision Making

EDP and MIS

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

Definition

• A Management Information System is an integrated user-machine system, for providing information, to support the operations, management, analysis & decision-making functions in an organization.
• The System utilizes computer hardware & software, manual procedures, models for analysis, planning, control & decision making and a database

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

MIS

• MIS provides information to the users in the form of reports and output from simulations by mathematical models.
• The report and model output can be provided in a tabular or graphic form.

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

Management Reporting Alternatives

• MIS provide a variety of information products
to managers which includes 3 reporting alternatives:
O Periodic Scheduled Reports
O Exception Reports
O Demand Reports and Responses

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

Management Reporting Alternatives

• MIS provide a variety of information products
to managers which includes 3 reporting alternatives:

O Periodic Scheduled Reports: E.g. Weekly Sales Analysis Reports, Monthly Financial Statements etc.
O Exception Reports: E.g. Periodic Report but contains information only about specific events.
O Demand Reports and Responses: E.g. Information on demand.

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

MIS Model

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

MIS Model…

• Both data and information are entered from the environment.
• Database contains the data provided by the subsystem.
• The database contents are used by software that produces periodic and special reports as well as mathematical models that simulate various aspects of the firm’s operations.
• The software outputs are used by persons who are responsible for solving the firm’s problems.

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

COMPONENTS OF MIS

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

Process

Net contribution of many individual processes in the MIS design.
Conversion of Inputs into Outputs

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

Inputs

• Sales in units by each salesman for a period.
• Estimated sales in units of competitors.
• Economic conditions & trends.

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

Outputs

• Sale by Product
• Sales by Salesman
• Sales by Region, Salesman & Products.
• Sales Trend Analysis
• Sales Forecasts

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

MIS Characteristics

• Management Oriented/directed
• Business Driven
• Integrated
• Common Data Flows
• Heavy Planning Element
• Subsystem Concept
• Flexibility & Ease of Use
• Database
• Distributed Systems
• Information as a Resource

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

STRUCTURE OF MIS

Approaches
• Physical Components
• Information System Processing Functions
• Decision Support
• Levels of Management Activities
• Organizational Functions

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

Based on Physical Components

• Hardware
• Software
• Database
• Procedures
• Operating Personnel
• Input & Output

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

Based on Physical Components

• Hardware: E.g. CPU, Monitor, Keyboard, Printer etc.
• Software: E.g. System and Application S/W.
• Database: E.g. Data stored in files.
• Procedures: E.g. Manuals etc.
• Operating Personnel: E.g. Computer Operators, Programmers, System Analysts, System Manager etc.
• Input & Output: E.g. Printouts, Reports etc.

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

Based on Processing Functions

• To Process Transactions
• To Maintain Master Files
• To Produce Reports
• To Process Enquiries
• To Process interactive Support Applications

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

Based on Processing Functions

• To Process Transactions: E.g. Making a purchase or a sale of a product.
• To Maintain Master Files: E.g. For preparing an employee’s salary, required data items are Basic Pay, Allowances, Deductions etc.
• To Produce Reports: For e.g. Specific or Adhoc reports
• To Process Enquiries: For e.g. Regular or Adhoc enquiry.
• To Process interactive Support Applications: E.g.
Applications designed for planning, analysis and decision making.

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

Based on Output For Users

• Transaction Documents or Screens
• Preplanned Reports
• Preplanned Inquiry Responses
• Adhoc Reports & Inquiry Responses
• User-machine Dialog Results

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

MIS Support for Decision Making

• Structured / Programmable Decisions
• Unstructured / Non-Programmable Decisions
• Semi-Structured Decisions

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

MIS Support for Decision Making

• Structured / Programmable Decisions:
O Decisions that are repetitive, routine and have a definite procedure for handling them.
O For e.g. Inventory reorder formula, Rules for granting Credit.

• Unstructured / Non-Programmable Decisions:
O Non-routine decision in which the decision maker must provide judgment, evaluation, and insights into the problem definition.
O For e.g.

• Semi-Structured Decisions:
O Decision where only part of the problem has a clear cut answer provided by an accepted procedure.

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

Based on Management Activities

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

Based on Organizational Functions

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

EDP and MIS

• EDP:
O These systems process mostly clerical and supervisory type of applications related to record keeping, processing of large volume of data and generation of authentic and accurate reports for operational management.
O These systems offer cost reduction by saving upon manpower and time resource.
O These serve as information source to operational management and assist in operational control and planning.
O Application Uses: Payroll, Inventory control, Production, Costing, Purchase and Logistics.

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

An Example

• A typical EDP application for ledger accounting that consists of modules for data storage of account vouchers and generation of accounting reports such as ledgers, trial balance, profit & loss account etc. The primary objective of the application is book keeping.
• The motive of this application is to ease the clerical functions and assist in operational control

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

EDP/MIS/DSS

• EDP was first applied to the lower operational levels of the organization to automate the paperwork.
• Characteristics:
O A focus on data, storage, processing and flows at the operational level.
O Efficient transaction processing.
O Scheduled and optimized computer runs.
O Integrated files for related jobs.
O Summary reports for management.
O EDP level of activity in many firms has become an efficient facility for transaction processing.

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

EDP/MIS/DSS…

• MIS:
O An information focus, which is aimed at middle managers.
O A structured information flow.
O Integration of EDP by business functions.
O Inquiry and report generation with a database.
O When controls are incorporated in an EDP application, then these are upgraded to MIS applications.

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

EDP/MIS/DSS…

• DSS:
O It is focused higher in the organization with an emphasis on the following characteristics:
• Decision focused
• Aimed at top managers and executive decision makers.
• Emphasis on flexibility, adaptability and quick response.
• User initiated and controlled.
• Support for the personal decision making styles of individual managers.

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

Pitfalls in MIS Development

• Organization does not have a reliable management system
• Organization has not defined its mission clearly
• Organization’s objectives have not been specified
• Management lacks interest in MIS development process &
relies solely on MIS development’s specification.
• Communication gap exists between MIS development team and the management
• MIS development team is incompetent

Management Information System----------------------------- Next Slide ---------------------- Hardeep Singh

MIS AS A COMPETITIVE ADVANTAGE

• Barriers to Entry
• Distribution Channels
• Switching Costs
• Lower Production Costs
• Product Differentiation
• Quality Management
• The Value Chain