1. Unit-2 Management Information Systems
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2. MIS – A concept: Management
Art of getting things done through and with the people in formally organized groups
Managerial functions:
Planning
Organizing
Staffing
Directing
Controlling
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3. Planning Organizing Managerial functions:
Process of foreseeing the future
What, when, who, how, where, why
Setting goals and objectives
Lay down policies, procedures, budgets, strategies, programmes and schedules, to achieve the plans
Organizing
Process of identifying the entire job
Dividing the job into convenient subtasks
Allocating subtasks to persons/groups
Delegating authority, for effective operation and achievement of goals
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4. Staffing Directing Managerial functions: Right person at the right job
Define job requirements – people perspective
Select suitable person/s for the positions
Training and development
Job-orientation vs. person-orientation
Directing
Issuing commands – classical view
Modern philosophy – Communication, Motivation, Leadership
People have to be guided, motivated and led by the MANAGER
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5. Decision-making is the essence of management
Controlling
Controlling and planning – two sides of the same coin
Ensures that activities are performed as per plans
Fixing standards of work measurements
Measurement of actual performance
Taking corrective measures
Decision-making is the essence of management
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6. Information
Processed data, presented in a form which assists decision-makers
May contain an element of surprise, reduce uncertainty
May provoke a manager to initiate action
Data and Info – relative concepts
Recency
Producer-consumer relationship
Often used interchangeably
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7. New perspective of Information:
MIS = MI + S
MIS must provide MI to managers for decision-making
MI – quality info
Timeliness
Accuracy
Completeness
Adequacy
Explicitness
MI – a subset of the entire available info
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8. System A set of interconnected elements to achieve a common objective
Elements are interrelated and interdependent
Composed of sub-systems, which in turn may be made up of other subsystems
The set of elements may be: Input(s), Process(es), or output(s)
Info system converts data into information
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9. A system cannot exist in vacuum
Cybernetic systems – self-regulating, self-monitoring (feedback and control elements attached)
A system cannot exist in vacuum
It exists and functions in an environment, separated by its boundary
Several systems may share the same environment
Some systems may be connected by a shared boundary
Open system: interacts with its environment, exchanges inputs and outputs
Closed systems: do not interact, or exchange any inputs or outputs with its environment
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10. Definition of MIS
MIS is a system consisting of people, machines, procedures, databases and data models as its elements. The system gathers data from internal and external sources of an organization; process it and supplies information to assist managers in the process of decision making.
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11. MIS Functions Data Capturing Processing of Data Storage of Information
Retrieval of Information
Dissemination of Information
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12. MIS Characteristics: System approach Management oriented Need based
Takes Comprehensive view in the light of its objective
Management oriented
Top down approach followed
Derived from the overall business objectives
Need based
Caters to info needs at different levels
Exception based
Exception based reporting principle
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13. Futuristic Integrated Common data flows Long term basis
On the basis of projections
Integrated
Blends info from several operational areas
Common data flows
Should avoid data duplication and redundancy
Long term basis
Strive to be futuristic
Divide and conquer
Use partitioning into subsystems
Central database
Let subsystems access the master data
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14. Interdisciplinary Nature:
Borrowed concepts from:
Computer science
Accounting
Operations Research
Management sciences
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15. Levels of Managerial Decision Making
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16. Strategic Management The People Develop
Board of Directors, Chief Executive Officer, President, Top Executives
Develop
Organizational Goals, Strategies, Policies
Long-term Planning
Monitor – Strategic performance of the organization
Direction
Political
Economic
Competitive business environment
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17. Tactical Management People Decisions Business Unit Managers
Vice-President to Middle-Manager
Decisions
short-medium range planning
schedules
budgets
policies
procedures
resource allocation
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18. Operational Management
People
Middle-Managers to
Supervisors
Self-directed teams
Decisions
short-range planning
production schedules
day-to-day decisions
use of resources
enforce polices
follow procedures
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19. Decision Structure Structured (operational) Unstructured (strategic)
The procedures to follow when decision is needed can be specified in advance
Unstructured (strategic)
It is not possible to specify in advance most of the decision procedures to follow
Semi-structured (tactical)
Decision procedures can be pre-specified, but not enough to lead to the correct decision
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20. Decision Support Systems
Management Information Systems
Decision Support Systems
Decision support provided
Provide information about the performance of the organization
Provide information and techniques to analyze specific problems
Information form and frequency
Periodic, exception, demand, and push reports and responses
Interactive inquiries and responses
Information format
Prespecified, fixed format
Ad hoc, flexible, and adaptable format
Information processing methodology
Information produced by extraction and manipulation of business data
Information produced by analytical modeling of business data
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21. Decision Support Trends
The emerging class of applications focuses on
Personalized decision support
Modeling
Information retrieval
Data warehousing
What-if scenarios
Reporting
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22. Business Intelligence Applications
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23. Decision Support Systems
Decision support systems use the following to support the making of semi-structured business decisions
Analytical models
Specialized databases
A decision-maker’s own insights and judgments
An interactive, computer-based modeling process
DSS systems are designed to be ad hoc, quick-response systems that are initiated and controlled by decision makers
Decision support systems (DSS) are computer-based systems that provide managers and business professionals interactive information support for semi-structured and unstructured decisions. Unlike management information systems, DSS rely on model bases.
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24. DSS Components
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25. DSS Model Base Model Base Spreadsheet Examples
A software component that consists of models used in computational and analytical routines that mathematically express relations among variables
Spreadsheet Examples
Linear programming
Multiple regression forecasting
Capital budgeting present value
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26. Applications of Statistics and Modeling
Supply Chain: simulate and optimize supply chain flows, reduce inventory, reduce stock-outs
Pricing: identify the price that maximizes yield or profit
Product and Service Quality: detect quality problems early in order to minimize them
Research and Development: improve quality, efficacy, and safety of products and services
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27. Decision Support Systems
What If-Analysis
Sensitivity Analysis
Goal-Seeking Analysis
Optimization Analysis
Important
Decision
Support
Systems
Analytical Models
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© 2002 McGraw-Hill Companies

28. Decision Support Systems Analytical Models
A model base is a software component that consists of models used in computational and analytical routines that mathematically express relationships between variables.
There are various types of DSS analytical model bases. These include:
What-If Analysis. An end user makes changes to variables, or relationships among variables, and observes the resulting change in the value of other variables.
Sensitivity Analysis. A special type of what-if analysis in which the value of only one variable is changed repeatedly, and the resulting changes on other variables are observed.
Goal-Seeking Analysis. Instead of observing how changes in a variable affect other variables, goal-seeking analysis sets a target value for a variable, and then repeatedly changes other variables until the target value is achieved.
Optimization analysis. A more complex goal-seeking model. Instead of setting a specific target value for a variable, the goal is to find the optimum value for one or more target variables, given certain constraints.
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29. Decision Support System – Why?
Fast Computation
Enhanced Productivity
Data Transmission
Better Decisions
Competitive Edge
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30. Characteristics & Capabilities of Decision Support System
Provide support for decision makers mainly in semi-structured & unstructured situation
Provide support for various managerial levels
Provide support to several interdependent and/or sequential decisions.
Support all phases of decision making process: intelligence, design, choice & implementation
Utilizes models for analyzing decision making situations
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31. Characteristics & Capabilities of Decision Support System
DSS aims to support the decision makers not to replace them
DSS attempts to improve the effectiveness of decision making (accuracy, timelines, Quality)
DSS are flexible & so user can add, delete, combine , change or rearrange basic elements.
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32. Information Resources Management (IRM)
„ It is an emerging discipline that helps managers assess and exploit their information assets for business development. „
It draws on the techniques of information science (libraries) and information systems (IT related). „
It an important foundation for knowledge management, in that deals systematically with explicit knowledge. Knowledge centres often play an important part in introducing IRM into an organization.
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33. Key Activities for effective IRM
Identification „ - What information is there? How is it identified and coded? †
Ownership „ - Who is responsible for different information entities and co-ordination? †
Cost and Value „ - A basic model for making judgements on purchase and use
† Development „ - Increasing its value or stimulating demand. †
Exploitation „ - Proactive maximization of value for money
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34. Benefits of implementing an IRM Strategy
Identifies gaps and duplication of information
„ Clarifies roles and responsibilities of owners and users of information „
Provide costs saving in the procurement and handling of information „
Identifies cost/benefits of different information resources „
Actively supports management decision processes with quality information
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35. IRM
Information resource management has become a popular way to emphasize a major change in the management and mission of the information systems function in many organizations. In many organizations, IRM may be viewed as having five major dimensions:
1. Strategic Management
- information technology must be managed to contribute to a firm=s strategic objectives and competitive advantages, not just for operational efficiency or decision making.
2. Operational Management
- information technology and information systems can be managed by functional organizational structures and managerial techniques commonly used throughout other business units
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36. IRM
3. Resource Management
- data and information, hardware and software, telecommunications networks, and IS personnel are vital organizational resources that must be managed like other business assets.
4. Technology Management
- all technologies that process, store, and communicate data and information throughout the enterprise should be managed as integrated systems of organizational resources.
5. Distributed Management
- managing the use of information technology and information system resources in business units or workgroups is a key responsibility of their managers, no matter what their function or level in the organization.
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37. End user Computing
End-user computing refers to the everyday use of computers for both business and personal use. At every level, many workers interact with personal computers (PCs) to accomplish their work. Many people also have computers in their homes. However, when computers were first used in business, most people did not have computers on their desks, nor did they use com
The development of end-user computing was due to several industry trends during the 1970s and 1980s: (1) the backlog of requests for new mainframe applications, (2) an increase in the number of knowledge workers who work primarily with information, (3) the availability of inexpensive microcomputers, (4) the availability of inexpensive productivity software, and (5) the development of user-friendly graphical user interfaces.puters themselves—at least not directly.
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38. End users
End users can be categorized according to skill level (novice, unskilled, semiskilled, or expert), environment (home or business), software used, frequency of use (occasional, frequent, or constant), features used (basic, intermediate, or advanced), or location (internal employee or external client).
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39. Resources
Resources that end users need to use a computer system include hardware, peripherals, hardware upgrades and maintenance, operating system and applications software, software upgrades, supplies, data and information, facilities, and technical support.These resources significantly affect the total cost of end-user computing to an individual or a company
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40. Software- end user
End users run a variety of software packages on their personal computers, including electronic mail and messaging, Web browsers, word processing, spreadsheets, database management, graphics, planning and scheduling, desktop publishing,Web page development, educational and entertainment software, as well as traditional mainframe applications
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41. Computer/MIS/ Unit-2

42. End-user computing
A primary goal of end-user computing is to make employees more productive in their
jobs. However, productivity is not without costs, because end users can misuse their personal computers.
Common problems include waste, mistakes, computer crime, piracy, invasion of privacy, loss of data, computer viruses, and health problems
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