Category: management Information System

Discuss MIS ”; Previous Next Management Information System (MIS) is a planned system of collecting, storing, and disseminating data in the form of information needed to carry out the functions of management. This tutorial covers the concepts related to information and provides a detailed coverage on MIS and other major enterprise-level systems. You will also learn how these systems help in the decision-making process, which is critical to any business enterprise. Print Page Previous Next Advertisements ”;

MIS – Summary ”; Previous Next An efficient information system creates an impact on the organization”s function, performance, and productivity. Nowadays, information system and information technology have become a vital part of any successful business and is regarded as a major functional area like any other functional areas such as marketing, finance, production and human resources, etc. Thus, it is important to understand the functions of an information system just like any other functional area in business. A well maintained management information system supports the organization at different levels. Many firms are using information system that cross the boundaries of traditional business functions in order to re-engineer and improve vital business processes all across the enterprise. This typical has involved installing − Enterprise Resource Planning (ERP) Supply Chain Management (SCM) Customer Relationship Management (CRM) Transaction Processing System (TPS) Executive Information System (EIS) Decision Support System (DSS) Knowledge Management Systems (KMS) Content Management Systems (CMS) The strategic role of Management Information System involves using it to develop products, services, and capabilities that provides a company major advantages over competitive forces it faces in the global marketplace. We need an MIS flexible enough to deal with changing information needs of the organization. The designing of such a system is a complex task. It can be achieved only if the MIS is planned. We understand this planning and implementation in management development process. Decision support system is a major segment of organizational information system, because of its influential role in taking business decisions. It help all levels of managers to take various decisions. Print Page Previous Next Advertisements ”;

MIS – Executive Support System ”; Previous Next Executive support systems are intended to be used by the senior managers directly to provide support to non-programmed decisions in strategic management. These information are often external, unstructured and even uncertain. Exact scope and context of such information is often not known beforehand. This information is intelligence based − Market intelligence Investment intelligence Technology intelligence Examples of Intelligent Information Following are some examples of intelligent information, which is often the source of an ESS − External databases Technology reports like patent records etc. Technical reports from consultants Market reports Confidential information about competitors Speculative information like market conditions Government policies Financial reports and information Features of Executive Information System Advantages of ESS Easy for upper level executive to use Ability to analyze trends Augmentation of managers” leadership capabilities Enhance personal thinking and decision-making Contribution to strategic control flexibility Enhance organizational competitiveness in the market place Instruments of change Increased executive time horizons. Better reporting system Improved mental model of business executive Help improve consensus building and communication Improve office automation Reduce time for finding information Early identification of company performance Detail examination of critical success factor Better understanding Time management Increased communication capacity and quality Disadvantage of ESS Functions are limited Hard to quantify benefits Executive may encounter information overload System may become slow Difficult to keep current data May lead to less reliable and insecure data Excessive cost for small company Print Page Previous Next Advertisements ”;

MIS – Business Continuity Planning ”; Previous Next Business Continuity Planning (BCP) or Business Continuity and Resiliency Planning (BCRP) creates a guideline for continuing business operations under adverse conditions such as a natural calamity, an interruption in regular business processes, loss or damage to critical infrastructure, or a crime done against the business. It is defined as a plan that “identifies an organization”s exposure to internal and external threats and synthesizes hard and soft assets to provide effective prevention and recovery for the organization, while maintaining competitive advantage and value system integrity.” Understandably, risk management and disaster management are major components in business continuity planning. Objectives of BCP Following are the objectives of BCP − Reducing the possibility of any interruption in regular business processes using proper risk management. Minimizing the impact of interruption, if any. Teaching the staff their roles and responsibilities in such a situation to safeguard their own security and other interests. Handling any potential failure in supply chain system, to maintain the natural flow of business. Protecting the business from failure and negative publicity. Protecting customers and maintaining customer relationships. Protecting the prevalent and prospective market and competitive advantage of the business. Protecting profits, revenue and goodwill. Setting a recovery plan following a disruption to normal operating conditions. Fulfilling legislative and regulatory requirements. Traditionally a business continuity plan would just protect the data center. With the advent of technologies, the scope of a BCP includes all distributed operations, personnel, networks, power and eventually all aspects of the IT environment. Phases of BCP The business continuity planning process involves recovery, continuation, and preservation of the entire business operation, not just its technology component. It should include contingency plans to protect all resources of the organization, e.g., human resource, financial resource and IT infrastructure, against any mishap. It has the following phases − Project management & initiation Business Impact Analysis (BIA) Recovery strategies Plan design & development Testing, maintenance, awareness, training Project Management and Initiation This phase has the following sub-phases − Establish need (risk analysis) Get management support Establish team (functional, technical, BCC – Business Continuity Coordinator) Create work plan (scope, goals, methods, timeline) Initial report to management Obtain management approval to proceed Business Impact Analysis This phase is used to obtain formal agreement with senior management for each time-critical business resource. This phase has the following sub-phases − Deciding maximum tolerable downtime, also known as MAO (Maximum Allowable Outage) Quantifying loss due to business outage (financial, extra cost of recovery, embarrassment), without estimating the probability of kinds of incidents, it only quantifies the consequences Choosing information gathering methods (surveys, interviews, software tools) Selecting interviewees Customizing questionnaire Analyzing information Identifying time-critical business functions Assigning MTDs Ranking critical business functions by MTDs Reporting recovery options Obtaining management approval Recovery Phase This phase involves creating recovery strategies are based on MTDs, predefined and management-approved. These strategies should address recovery of − Business operations Facilities & supplies Users (workers and end-users) Network Data center (technical) Data (off-site backups of data and applications) BCP Development Phase This phase involves creating detailed recovery plan that includes − Business & service recovery plans Maintenance plan Awareness & training plan Testing plan The Sample Plan is divided into the following phases − Initial disaster response Resume critical business ops Resume non-critical business ops Restoration (return to primary site) Interacting with external groups (customers, media, emergency responders) Final Phase The final phase is a continuously evolving process containing testing maintenance, and training. The testing process generally follows procedures like structured walk-through, creating checklist, simulation, parallel and full interruptions. Maintenance involves − Fixing problems found in testing Implementing change management Auditing and addressing audit findings Annual review of plan Training is an ongoing process and it should be made a part of the corporate standards and the corporate culture. Print Page Previous Next Advertisements ”;

MIS – Decision Support System ”; Previous Next Decision support systems (DSS) are interactive software-based systems intended to help managers in decision-making by accessing large volumes of information generated from various related information systems involved in organizational business processes, such as office automation system, transaction processing system, etc. DSS uses the summary information, exceptions, patterns, and trends using the analytical models. A decision support system helps in decision-making but does not necessarily give a decision itself. The decision makers compile useful information from raw data, documents, personal knowledge, and/or business models to identify and solve problems and make decisions. Programmed and Non-programmed Decisions There are two types of decisions – programmed and non-programmed decisions. Programmed decisions are basically automated processes, general routine work, where − These decisions have been taken several times. These decisions follow some guidelines or rules. For example, selecting a reorder level for inventories, is a programmed decision. Non-programmed decisions occur in unusual and non-addressed situations, so − It would be a new decision. There will not be any rules to follow. These decisions are made based on the available information. These decisions are based on the manger”s discretion, instinct, perception and judgment. For example, investing in a new technology is a non-programmed decision. Decision support systems generally involve non-programmed decisions. Therefore, there will be no exact report, content, or format for these systems. Reports are generated on the fly. Attributes of a DSS Adaptability and flexibility High level of Interactivity Ease of use Efficiency and effectiveness Complete control by decision-makers Ease of development Extendibility Support for modeling and analysis Support for data access Standalone, integrated, and Web-based Characteristics of a DSS Support for decision-makers in semi-structured and unstructured problems. Support for managers at various managerial levels, ranging from top executive to line managers. Support for individuals and groups. Less structured problems often requires the involvement of several individuals from different departments and organization level. Support for interdependent or sequential decisions. Support for intelligence, design, choice, and implementation. Support for variety of decision processes and styles. DSSs are adaptive over time. Benefits of DSS Improves efficiency and speed of decision-making activities. Increases the control, competitiveness and capability of futuristic decision-making of the organization. Facilitates interpersonal communication. Encourages learning or training. Since it is mostly used in non-programmed decisions, it reveals new approaches and sets up new evidences for an unusual decision. Helps automate managerial processes. Components of a DSS Following are the components of the Decision Support System − Database Management System (DBMS) − To solve a problem the necessary data may come from internal or external database. In an organization, internal data are generated by a system such as TPS and MIS. External data come from a variety of sources such as newspapers, online data services, databases (financial, marketing, human resources). Model Management System − It stores and accesses models that managers use to make decisions. Such models are used for designing manufacturing facility, analyzing the financial health of an organization, forecasting demand of a product or service, etc. Support Tools − Support tools like online help; pulls down menus, user interfaces, graphical analysis, error correction mechanism, facilitates the user interactions with the system. Classification of DSS There are several ways to classify DSS. Hoi Apple and Whinstone classifies DSS as follows − Text Oriented DSS − It contains textually represented information that could have a bearing on decision. It allows documents to be electronically created, revised and viewed as needed. Database Oriented DSS − Database plays a major role here; it contains organized and highly structured data. Spreadsheet Oriented DSS − It contains information in spread sheets that allows create, view, modify procedural knowledge and also instructs the system to execute self-contained instructions. The most popular tool is Excel and Lotus 1-2-3. Solver Oriented DSS − It is based on a solver, which is an algorithm or procedure written for performing certain calculations and particular program type. Rules Oriented DSS − It follows certain procedures adopted as rules. Rules Oriented DSS − Procedures are adopted in rules oriented DSS. Export system is the example. Compound DSS − It is built by using two or more of the five structures explained above. Types of DSS Following are some typical DSSs − Status Inquiry System − It helps in taking operational, management level, or middle level management decisions, for example daily schedules of jobs to machines or machines to operators. Data Analysis System − It needs comparative analysis and makes use of formula or an algorithm, for example cash flow analysis, inventory analysis etc. Information Analysis System − In this system data is analyzed and the information report is generated. For example, sales analysis, accounts receivable systems, market analysis etc. Accounting System − It keeps track of accounting and finance related information, for example, final account, accounts receivables, accounts payables, etc. that keep track of the major aspects of the business. Model Based System − Simulation models or optimization models used for decision-making are used infrequently and creates general guidelines for operation or management. Print Page Previous Next Advertisements ”;

MIS – Knowledge Management System ”; Previous Next All the systems we are discussing here come under knowledge management category. A knowledge management system is not radically different from all these information systems, but it just extends the already existing systems by assimilating more information. As we have seen, data is raw facts, information is processed and/or interpreted data, and knowledge is personalized information. What is Knowledge? Personalized information State of knowing and understanding An object to be stored and manipulated A process of applying expertise A condition of access to information Potential to influence action Sources of Knowledge of an Organization Intranet Data warehouses and knowledge repositories Decision support tools Groupware for supporting collaboration Networks of knowledge workers Internal expertise Definition of KMS A knowledge management system comprises a range of practices used in an organization to identify, create, represent, distribute, and enable adoption to insight and experience. Such insights and experience comprise knowledge, either embodied in individual or embedded in organizational processes and practices. Purpose of KMS Improved performance Competitive advantage Innovation Sharing of knowledge Integration Continuous improvement by − Driving strategy Starting new lines of business Solving problems faster Developing professional skills Recruit and retain talent Activities in Knowledge Management Start with the business problem and the business value to be delivered first. Identify what kind of strategy to pursue to deliver this value and address the KM problem. Think about the system required from a people and process point of view. Finally, think about what kind of technical infrastructure are required to support the people and processes. Implement system and processes with appropriate change management and iterative staged release. Level of Knowledge Management Print Page Previous Next Advertisements ”;

MIS – Security & Ethical Issues ”; Previous Next Security of an Information System Information system security refers to the way the system is defended against unauthorized access, use, disclosure, disruption, modification, perusal, inspection, recording or destruction. There are two major aspects of information system security − Security of the information technology used − securing the system from malicious cyber-attacks that tend to break into the system and to access critical private information or gain control of the internal systems. Security of data − ensuring the integrity of data when critical issues, arise such as natural disasters, computer/server malfunction, physical theft etc. Generally an off-site backup of data is kept for such problems. Guaranteeing effective information security has the following key aspects − Preventing the unauthorized individuals or systems from accessing the information. Maintaining and assuring the accuracy and consistency of data over its entire life-cycle. Ensuring that the computing systems, the security controls used to protect it and the communication channels used to access it, functioning correctly all the time, thus making information available in all situations. Ensuring that the data, transactions, communications or documents are genuine. Ensuring the integrity of a transaction by validating that both parties involved are genuine, by incorporating authentication features such as “digital signatures”. Ensuring that once a transaction takes place, none of the parties can deny it, either having received a transaction, or having sent a transaction. This is called ”non-repudiation”. Safeguarding data and communications stored and shared in network systems. Information Systems and Ethics Information systems bring about immense social changes, threatening the existing distributions of power, money, rights, and obligations. It also raises new kinds of crimes, like cyber-crimes. Following organizations promote ethical issues − The Association of Information Technology Professionals (AITP) The Association of Computing Machinery (ACM) The Institute of Electrical and Electronics Engineers (IEEE) Computer Professionals for Social Responsibility (CPSR) The ACM Code of Ethics and Professional Conduct Strive to achieve the highest quality, effectiveness, and dignity in both the process and products of professional work. Acquire and maintain professional competence. Know and respect existing laws pertaining to professional work. Accept and provide appropriate professional review. Give comprehensive and thorough evaluations of computer systems and their impacts, including analysis and possible risks. Honor contracts, agreements, and assigned responsibilities. Improve public understanding of computing and its consequences. Access computing and communication resources only when authorized to do so. The IEEE Code of Ethics and Professional Conduct IEEE code of ethics demands that every professional vouch to commit themselves to the highest ethical and professional conduct and agree − To accept responsibility in making decisions consistent with the safety, health and welfare of the public, and to disclose promptly factors that might endanger the public or the environment; To avoid real or perceived conflicts of interest whenever possible, and to disclose them to affected parties when they do exist; To be honest and realistic in stating claims or estimates based on available data; To reject bribery in all its forms; To improve the understanding of technology, its appropriate application, and potential consequences; To maintain and improve our technical competence and to undertake technological tasks for others only if qualified by training or experience, or after full disclosure of pertinent limitations; To seek, accept, and offer honest criticism of technical work, to acknowledge and correct errors, and to credit properly the contributions of others; To treat fairly all persons regardless of such factors as race, religion, gender, disability, age, or national origin; To avoid injuring others, their property, reputation, or employment by false or malicious action; To assist colleagues and co-workers in their professional development and to support them in following this code of ethics. Print Page Previous Next Advertisements ”;

MIS – Introduction ”; Previous Next To the managers, Management Information System is an implementation of the organizational systems and procedures. To a programmer it is nothing but file structures and file processing. However, it involves much more complexity. The three components of MIS provide a more complete and focused definition, where System suggests integration and holistic view, Information stands for processed data, and Management is the ultimate user, the decision makers. Management information system can thus be analyzed as follows − Management Management covers the planning, control, and administration of the operations of a concern. The top management handles planning; the middle management concentrates on controlling; and the lower management is concerned with actual administration. Information Information, in MIS, means the processed data that helps the management in planning, controlling and operations. Data means all the facts arising out of the operations of the concern. Data is processed i.e. recorded, summarized, compared and finally presented to the management in the form of MIS report. System Data is processed into information with the help of a system. A system is made up of inputs, processing, output and feedback or control. Thus MIS means a system for processing data in order to give proper information to the management for performing its functions. Definition Management Information System or ”MIS” is a planned system of collecting, storing, and disseminating data in the form of information needed to carry out the functions of management. Objectives of MIS The goals of an MIS are to implement the organizational structure and dynamics of the enterprise for the purpose of managing the organization in a better way and capturing the potential of the information system for competitive advantage. Following are the basic objectives of an MIS − Capturing Data − Capturing contextual data, or operational information that will contribute in decision making from various internal and external sources of organization. Processing Data − The captured data is processed into information needed for planning, organizing, coordinating, directing and controlling functionalities at strategic, tactical and operational level. Processing data means − making calculations with the data sorting data classifying data and summarizing data Information Storage − Information or processed data need to be stored for future use. Information Retrieval − The system should be able to retrieve this information from the storage as and when required by various users. Information Propagation − Information or the finished product of the MIS should be circulated to its users periodically using the organizational network. Characteristics of MIS Following are the characteristics of an MIS − It should be based on a long-term planning. It should provide a holistic view of the dynamics and the structure of the organization. It should work as a complete and comprehensive system covering all interconnecting sub-systems within the organization. It should be planned in a top-down way, as the decision makers or the management should actively take part and provide clear direction at the development stage of the MIS. It should be based on need of strategic, operational and tactical information of managers of an organization. It should also take care of exceptional situations by reporting such situations. It should be able to make forecasts and estimates, and generate advanced information, thus providing a competitive advantage. Decision makers can take actions on the basis of such predictions. It should create linkage between all sub-systems within the organization, so that the decision makers can take the right decision based on an integrated view. It should allow easy flow of information through various sub-systems, thus avoiding redundancy and duplicity of data. It should simplify the operations with as much practicability as possible. Although the MIS is an integrated, complete system, it should be made in such a flexible way that it could be easily split into smaller sub-systems as and when required. A central database is the backbone of a well-built MIS. Characteristics of Computerized MIS Following are the characteristics of a well-designed computerized MIS − It should be able to process data accurately and with high speed, using various techniques like operations research, simulation, heuristics, etc. It should be able to collect, organize, manipulate, and update large amount of raw data of both related and unrelated nature, coming from various internal and external sources at different periods of time. It should provide real time information on ongoing events without any delay. It should support various output formats and follow latest rules and regulations in practice. It should provide organized and relevant information for all levels of management: strategic, operational, and tactical. It should aim at extreme flexibility in data storage and retrieval. Nature and Scope of MIS The following diagram shows the nature and scope of MIS − Print Page Previous Next Advertisements ”;

MIS – Development Process ”; Previous Next In MIS, the information is recognized as a major resource like capital and time. If this resource has to be managed well, it calls upon the management to plan for it and control it, so that the information becomes a vital resource for the system. The management information system needs good planning. This system should deal with the management information not with data processing alone. It should provide support for the management planning, decision-making and action. It should provide support to the changing needs of business management. Major challenges in MIS implementation are − Quantity, content and context of information − how much information and exactly what should it describe. Nature of analysis and presentation − comprehensibility of information. Availability of information − frequency, contemporariness, on-demand or routine, periodic or occasional, one-time info or repetitive in nature and so on Accuracy of information. Reliability of information. Security and Authentication of the system. Planning for MIS MIS design and development process has to address the following issues successfully − There should be effective communication between the developers and users of the system. There should be synchronization in understanding of management, processes and IT among the users as well as the developers. Understanding of the information needs of managers from different functional areas and combining these needs into a single integrated system. Creating a unified MIS covering the entire organization will lead to a more economical, faster and more integrated system, however it will increase in design complexity manifold. The MIS has to be interacting with the complex environment comprising all other sub-systems in the overall information system of the organization. So, it is extremely necessary to understand and define the requirements of MIS in the context of the organization. It should keep pace with changes in environment, changing demands of the customers and growing competition. It should utilize fast developing in IT capabilities in the best possible ways. Cost and time of installing such advanced IT-based systems is high, so there should not be a need for frequent and major modifications. It should take care of not only the users i.e., the managers but also other stakeholders like employees, customers and suppliers. Once the organizational planning stage is over, the designer of the system should take the following strategic decisions for the achievement of MIS goals and objectives − Development Strategy − Example – an online, real-time batch. System Development Strategy − Designer selects an approach to system development like operational verses functional, accounting verses analysis. Resources for the Development − Designer has to select resources. Resources can be in-house verses external, customized or use of package. Manpower Composition − The staffs should have analysts, and programmers. Information system planning essentially involves − Identification of the stage of information system in the organization. Identification of the application of organizational IS. Evolution of each of this application based on the established evolution criteria. Establishing a priority ranking for these applications. Determining the optimum architecture of IS for serving the top priority applications. Information System Requirements The following diagram illustrates a brief sketch of the process of information requirement analysis − The following three methodologies can be adopted to determine the requirements in developing a management information system for any organization − Business Systems Planning (BSP) − this methodology is developed by IBM. It identifies the IS priorities of the organization and focuses on the way data is maintained in the system. It uses data architecture supporting multiple applications. It defines data classes using different matrices to establish relationships among the organization, its processes and data requirements. Critical Success Factor (CSF) − this methodology is developed by John Rockart of MIT. It identifies the key business goals and strategies of each manager as well as that of the business. Next, it looks for the critical success factors underlying these goals. Measure of CSF effectiveness becomes an input for defining the information system requirements. End/Means (E/M) analysis − this methodology is developed by Wetherbe and Davis at the University of Minnesota. It determines the effectiveness criteria for outputs and efficiency criteria for the processes generating the outputs. At first it identifies the outputs or services provided by the business processes. Then it describes the factors that make these outputs effective for the user. Finally it selects the information needed to evaluate the effectiveness of outputs Information System Analysis and Design System analysis and design follows the typical System/Software Design Life Cycle (SDLC) as discussed in the previous chapter. It generally passes through the following phases − Problem Definition Feasibility Study Systems Analysis System Design Detailed System Design Implementation Maintenance In the analysis phase, the following techniques are commonly used − Data flow diagrams (DFD) Logic Modeling Data Modeling Rapid Application Development (RAD) Object Oriented Analysis (OOA) Technology for Information Systems The technology requirement for an information system can be categorized as − Devices Data center systems − It is the environment that provides processing, storage, networking, management and the distribution of data within an enterprise. Enterprise software − These are software system like ERP, SCM, Human Resource Management, etc. that fulfill the needs and objectives of the organizations. IT services − It refers to the implementation and management of quality IT services by IT service providers through people, process and information technology. It often includes various process improvement frameworks and methodologies like six sigma, TQM, and so on. Telecom services System Test Planning and Execution The system should be fully tested for errors before being fully operational. The test plan should include for each test − Purpose Definition test inputs detailed specification of test procedure details of expected outputs Each sub-system and all their components should be tested using various test procedures and data to ensure that each component is working as it is intended. The testing must include the users of the system to identify errors as well as get the feedback. System Operation Before the system is in operation, the following

MIS – Customer Relationship Management ”; Previous Next CRM is an enterprise application module that manages a company”s interactions with current and future customers by organizing and coordinating, sales and marketing, and providing better customer services along with technical support. Atul Parvatiyar and Jagdish N. Sheth provide an excellent definition for customer relationship management in their work titled – ”Customer Relationship Management: Emerging Practice, Process, and Discipline” − Customer Relationship Management is a comprehensive strategy and process of acquiring, retaining, and partnering with selective customers to create superior value for the company and the customer. It involves the integration of marketing, sales, customer service, and the supply-chain functions of the organization to achieve greater efficiencies and effectiveness in delivering customer value. Why CRM? To keep track of all present and future customers. To identify and target the best customers. To let the customers know about the existing as well as the new products and services. To provide real-time and personalized services based on the needs and habits of the existing customers. To provide superior service and consistent customer experience. To implement a feedback system. Scope of CRM Advantages of CRM Provides better customer service and increases customer revenues. Discovers new customers. Cross-sells and up-sells products more effectively. Helps sales staff to close deals faster. Makes call centers more efficient. Simplifies marketing and sales processes. Disadvantages of CRM Some times record loss is a major problem. Overhead costs. Giving training to employees is an issue in small organizations. Print Page Previous Next Advertisements ”;