Category: management Information System

MIS – Quick Guide ”; Previous Next Basic Information Concepts Information can be defined as meaningfully interpreted data. If we give you a number 1-212-290-4700, it does not make any sense on its own. It is just a raw data. However if we say Tel: +1-212-290-4700, it starts making sense. It becomes a telephone number. If I gather some more data and record it meaningfully like − Address: 350 Fifth Avenue, 34th floor New York, NY 10118-3299 USA Tel: +1-212-290-4700 Fax: +1-212-736-1300 It becomes a very useful information – the address of New York office of Human Rights Watch, a non-profit, non-governmental human rights organization. So, from a system analyst”s point of view, information is a sequence of symbols that can be construed to a useful message. An Information System is a system that gathers data and disseminates information with the sole purpose of providing information to its users. The main object of an information system is to provide information to its users. Information systems vary according to the type of users who use the system. A Management Information System is an information system that evaluates, analyzes, and processes an organization”s data to produce meaningful and useful information based on which the management can take right decisions to ensure future growth of the organization. Information Definition According to Wikipedia − “Information can be recorded as signs, or transmitted as signals. Information is any kind of event that affects the state of a dynamic system that can interpret the information. Conceptually, information is the message (utterance or expression) being conveyed. Therefore, in a general sense, information is “Knowledge communicated or received, concerning a particular fact or circumstance”. Information cannot be predicted and resolves uncertainty.” Information Vs Data Data can be described as unprocessed facts and figures. Plain collected data as raw facts cannot help in decision-making. However, data is the raw material that is organized, structured, and interpreted to create useful information systems. Data is defined as ”groups of non-random symbols in the form of text, images, voice representing quantities, action and objects”. Information is interpreted data; created from organized, structured, and processed data in a particular context. According to Davis and Olson − “Information is a data that has been processed into a form that is meaningful to recipient and is of real or perceived value in the current or the prospective action or decision of recipient.” Information, Knowledge and Business Intelligence Professor Ray R. Larson of the School of Information at the University of California, Berkeley, provides an Information Hierarchy, which is − Data − The raw material of information. Information − Data organized and presented by someone. Knowledge − Information read, heard, or seen, and understood. Wisdom − Distilled and integrated knowledge and understanding. Scott Andrews” explains Information Continuum as follows − Data − A Fact or a piece of information, or a series thereof. Information − Knowledge discerned from data. Business Intelligence − Information Management pertaining to an organization”s policy or decision-making, particularly when tied to strategic or operational objectives. Information/Data Collection Techniques The most popular data collection techniques include − Surveys − A questionnaires is prepared to collect the data from the field. Secondary data sources or archival data: Data is collected through old records, magazines, company website etc. Objective measures or tests − An experimental test is conducted on the subject and the data is collected. Interviews − Data is collected by the system analyst by following a rigid procedure and collecting the answers to a set of pre-conceived questions through personal interviews. MIS – Classification of Information Information can be classified in a number of ways and in this chapter, you will learn two of the most important ways to classify information. Classification by Characteristic Based on Anthony”s classification of Management, information used in business for decision-making is generally categorized into three types − Strategic Information − Strategic information is concerned with long term policy decisions that defines the objectives of a business and checks how well these objectives are met. For example, acquiring a new plant, a new product, diversification of business etc, comes under strategic information. Tactical Information − Tactical information is concerned with the information needed for exercising control over business resources, like budgeting, quality control, service level, inventory level, productivity level etc. Operational Information − Operational information is concerned with plant/business level information and is used to ensure proper conduction of specific operational tasks as planned/intended. Various operator specific, machine specific and shift specific jobs for quality control checks comes under this category. Classification by Application In terms of applications, information can be categorized as − Planning Information − These are the information needed for establishing standard norms and specifications in an organization. This information is used in strategic, tactical, and operation planning of any activity. Examples of such information are time standards, design standards. Control Information − This information is needed for establishing control over all business activities through feedback mechanism. This information is used for controlling attainment, nature and utilization of important processes in a system. When such information reflects a deviation from the established standards, the system should induce a decision or an action leading to control. Knowledge Information − Knowledge is defined as “information about information”. Knowledge information is acquired through experience and learning, and collected from archival data and research studies. Organizational Information − Organizational information deals with an organization”s environment, culture in the light of its objectives. Karl Weick”s Organizational Information Theory emphasizes that an organization reduces its equivocality or uncertainty by collecting, managing and using these information prudently. This information is used by everybody in the organization; examples of such information are employee and payroll information. Functional/Operational Information − This is operation specific information. For example, daily schedules in a manufacturing plant that refers to the detailed assignment of jobs to machines or machines to operators. In a service oriented business, it would be the duty roster of various personnel. This information is mostly internal to the organization. Database

MIS – Business Intelligence System ”; Previous Next The term ”Business Intelligence” has evolved from the decision support systems and gained strength with the technology and applications like data warehouses, Executive Information Systems and Online Analytical Processing (OLAP). Business Intelligence System is basically a system used for finding patterns from existing data from operations. Characteristics of BIS It is created by procuring data and information for use in decision-making. It is a combination of skills, processes, technologies, applications and practices. It contains background data along with the reporting tools. It is a combination of a set of concepts and methods strengthened by fact-based support systems. It is an extension of Executive Support System or Executive Information System. It collects, integrates, stores, analyzes, and provides access to business information It is an environment in which business users get reliable, secure, consistent, comprehensible, easily manipulated and timely information. It provides business insights that lead to better, faster, more relevant decisions. Benefits of BIS Improved Management Processes. Planning, controlling, measuring and/or applying changes that results in increased revenues and reduced costs. Improved business operations. Fraud detection, order processing, purchasing that results in increased revenues and reduced costs. Intelligent prediction of future. Approaches of BIS For most companies, it is not possible to implement a proactive business intelligence system at one go. The following techniques and methodologies could be taken as approaches to BIS − Improving reporting and analytical capabilities Using scorecards and dashboards Enterprise Reporting On-line Analytical Processing (OLAP) Analysis Advanced and Predictive Analysis Alerts and Proactive Notification Automated generation of reports with user subscriptions and “alerts” to problems and/or opportunities. Capabilities of BIS Data Storage and Management − Data ware house Ad hoc analysis Data quality Data mining Information Delivery Dashboard Collaboration /search Managed reporting Visualization Scorecard Query, Reporting and Analysis Ad hoc Analysis Production reporting OLAP analysis Print Page Previous Next Advertisements ”;

MIS – Content Management System ”; Previous Next A Content Management System (CMS) allows publishing, editing, and modifying content as well as its maintenance by combining rules, processes and/or workflows, from a central interface, in a collaborative environment. A CMS may serve as a central repository for content, which could be, textual data, documents, movies, pictures, phone numbers, and/or scientific data. Functions of Content Management Creating content Storing content Indexing content Searching content Retrieving content Publishing content Archiving content Revising content Managing content end-to-end Content Management Workflow Designing content template, for example web administrator designs webpage template for web content management. Creating content blocks, for example, a web administrator adds empower CMS tags called “content blocks” to webpage template using CMS. Positioning content blocks on the document, for example, web administrator positions content blocks in webpage. Authoring content providers to search, retrieve, view and update content. Advantages of CMS Content management system helps to secure privacy and currency of the content and enhances performance by − Ensuring integrity and accuracy of content by ensuring only one user modifies the content at a time. Implementing audit trails to monitor changes made in content over time. Providing secured user access to content. Organization of content into related groups and folders. Allowing searching and retrieval of content. Recording information and meta-data related to the content, like author and title of content, version of content, date and time of creating the content etc. Workflow based routing of content from one user to another. Converting paper-based content to digital format. Organizing content into groups and distributing it to target audience. Print Page Previous Next Advertisements ”;

MIS – Managerial Decision-Making ”; Previous Next Concept of Decision-Making Decision-making is a cognitive process that results in the selection of a course of action among several alternative scenarios. Decision-making is a daily activity for any human being. There is no exception about that. When it comes to business organizations, decision-making is a habit and a process as well. Effective and successful decisions result in profits, while unsuccessful ones cause losses. Therefore, corporate decision-making is the most critical process in any organization. In a decision-making process, we choose one course of action from a few possible alternatives. In the process of decision-making, we may use many tools, techniques, and perceptions. In addition, we may make our own private decisions or may prefer a collective decision. Usually, decision-making is hard. Majority of corporate decisions involve some level of dissatisfaction or conflict with another party. Let”s have a look at the decision-making process in detail. Decision-Making Process Following are the important steps of the decision-making process. Each step may be supported by different tools and techniques. Step 1 − Identification of the Purpose of the Decision In this step, the problem is thoroughly analyzed. There are a couple of questions one should ask when it comes to identifying the purpose of the decision. What exactly is the problem? Why the problem should be solved? Who are the affected parties of the problem? Does the problem have a deadline or a specific time-line? Step 2 − Information Gathering A problem of an organization will have many stakeholders. In addition, there can be dozens of factors involved and affected by the problem. In the process of solving the problem, you will have to gather as much as information related to the factors and stakeholders involved in the problem. For the process of information gathering, tools such as ”Check Sheets” can be effectively used. Step 3 − Principles for Judging the Alternatives In this step, the baseline criteria for judging the alternatives should be set up. When it comes to defining the criteria, organizational goals as well as the corporate culture should be taken into consideration. As an example, profit is one of the main concerns in every decision making process. Companies usually do not make decisions that reduce profits, unless it is an exceptional case. Likewise, baseline principles should be identified related to the problem in hand. Step 4 − Brainstorm and Analyze the Choices For this step, brainstorming to list down all the ideas is the best option. Before the idea generation step, it is vital to understand the causes of the problem and prioritization of causes. For this, you can make use of Cause-and-Effect diagrams and Pareto Chart tool. Cause-and-Effect diagram helps you to identify all possible causes of the problem and Pareto chart helps you to prioritize and identify the causes with the highest effect. Then, you can move on generating all possible solutions (alternatives) for the problem in hand. Step 5 − Evaluation of Alternatives Use your judgment principles and decision-making criteria to evaluate each alternative. In this step, experience and effectiveness of the judgment principles come into play. You need to compare each alternative for their positives and negatives. Step 6 − Select the Best Alternative Once you go through from Step 1 to Step 5, this step is easy. In addition, the selection of the best alternative is an informed decision since you have already followed a methodology to derive and select the best alternative. Step 7 − Execute the decision Convert your decision into a plan or a sequence of activities. Execute your plan by yourself or with the help of subordinates. Step 8 − Evaluate the Results Evaluate the outcome of your decision. See whether there is anything you should learn and then correct in future decision making. This is one of the best practices that will improve your decision-making skills. Process and Modeling in Decision-Making There are two basic models in decision-making − Rational models Normative model The rational models are based on cognitive judgments and help in selecting the most logical and sensible alternative. Examples of such models include – decision matrix analysis, Pugh matrix, SWOT analysis, Pareto analysis and decision trees, selection matrix, etc. A rational decision making model takes the following steps − Identifying the problem, Identifying the important criteria for the process and the result, Considering all possible solutions, Calculating the consequences of all solutions and comparing the probability of satisfying the criteria, Selecting the best option. The normative model of decision-making considers constraints that may arise in making decisions, such as time, complexity, uncertainty, and inadequacy of resources. According to this model, decision-making is characterized by − Limited information processing – A person can manage only a limited amount of information. Judgmental heuristics – A person may use shortcuts to simplify the decision making process. Satisfying – A person may choose a solution that is just “good enough”. Dynamic Decision-Making Dynamic decision-making (DDM) is synergetic decision-making involving interdependent systems, in an environment that changes over time either due to the previous actions of the decision-maker or due to events that are outside of the control of the decision-maker. These decision-makings are more complex and real-time. Dynamic decision-making involves observing how people used their experience to control the system”s dynamics and noting down the best decisions taken thereon. Sensitivity Analysis Sensitivity analysis is a technique used for distributing the uncertainty in the output of a mathematical model or a system to different sources of uncertainty in its inputs. From business decision perspective, the sensitivity analysis helps an analyst to identify cost drivers as well as other quantities to make an informed decision. If a particular quantity has no bearing on a decision or prediction, then the conditions relating to quantity could be eliminated, thus simplifying the decision making process. Sensitivity analysis also helps in some other situations, like − Resource optimization Future data collections Identifying critical assumptions To optimize the tolerance of manufactured parts Static and Dynamic