Management Information System MIS Decision Information System DIS

Management Information System MIS = Decision Information System DIS = Business Processes + Computer H/W + Communication Networks / internet + Software = Info. for Management Control and Decisions 1

What is MIS? MIS- it is a system that access, organizes and reports on organizational information, needed for repetitive decision making in functional areas, usually by middle managers. ¨ Provides information to the managers in the functional areas. ¨ “MIS is the system which makes available the right information to the right person, at the right place at the right time, in the right form and at the right cost”. 2

Management Information Systems Chapter 1: Information Systems in Global Business Today Functions of an Information System An information system contains information about an organization and its surrounding environment. Three basic activities—input, processing, and output— produce the information organizations need. Feedback is output returned to appropriate people or activities in the organization to evaluate and refine the input. Environmental actors, such as customers, suppliers, competitors, stockholders, and regulatory agencies, interact with the organization and its information systems. Figure 1. 4 1. 3 Copyright © 2016 Pearson Education, Inc.

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n Software categories ¨ System software – generalized program that manage the resources of the computer n OS –Operating System, takes care of allocation/ assignment of computer resources. ¨ Process management; multiprogramming; time sharing; multiprocessing; virtual memory; fault tolerance; GUI Language translators / Compilers n Utility programs like word, sort etc. , n Communication software n ¨ Application software [ DIS, MIS , SAP Etc. , ] 7

Functional sub-systems of MIS: Different Sub-Systems in a Typical Organization and their uses Marketing Sales forecasting, sales planning, customer and sales analysis Manufacturing Production planning and scheduling, cost control analysis Logistic Planning and control of purchasing, inventories and distribution HR Human Resources requirements, management etc. , Finance & Accounting Financial analysis, cost analysis, capital requirement, planning, income measurement Information Processing Information Systems (IS) management, cost-benefit analysis Top Management Strategic planning, resource allocation, monitoring & control 8

Your customer SCM Bill of Material (BOM) Stores & Inventory Control Purchase Suppliers Master Prod. Schedule (MPS) Material Requirement Planning (MRP) Production & Shop Floor Control Sales Order Processing (SOP) Cost Accounts Financial Accounting

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MIS as seen by the users Management- reports, analysis, strategic planning, decision making Staff specialist – information for analysis, planning and reporting First level manager – obtain operational data, scheduling, controlling Clerical personal – operations and handle transactions 11

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Contemporary approach of MIS 13

To achieve strategic competitive edge 1. 2. 3. 4. 5. 6. 7. 8. What business the organization is in? What existing business activities should be spun off? What new activities should be under taken? How to protect organization from business swings? What are the competitors doing and can do ? What drives the competitors, as shown by their objectives? What do the competitors believe about themselves and the industry? What are the competitors’ capabilities ? Competitor Analysis; Business Intelligence 14

Understanding a computer based System n Computer system is a combination of; ¨ Hardware ¨ Communication network / internet ¨ Software [ business process & rules, converted into Computer understandable programs] ¨ Data 15

n n n Components of a computer CPU Central Processing Unit Input device – data entry devices , terminals, mobiles Output device - Printers, terminals, mobiles Storage devices - Hard disc, cloud etc. , Physical media to link various communication devices. connectors, wires-cables etc. , 16

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Computer categories Super computer n Main frame computer n Mini computer n Micro computer n Laptops n Mobile computers [ phones, tablets Etc. , ] n 18

n Development stage: ¨ Physical system design ¨ Physical database design ¨ Program development ¨ Procedure development (user manual/deliverables) 19

n Transaction processing: ¨ Transaction processing has relevance for the following reasons: Information n Action n Investigational n Examples of Transactions : Indent for raw material, Order for an item, Bank cash / cheque deposit slip, cheque etc. , n 20

n Data processing modes: ¨ Computers are used for the processing of data, analyzing it and getting the necessary information for facilitating decision making ¨ Batch processing ¨ On-line real-time processing ¨ Distributed processing ¨ Other data processing modes: ¨ ¨ ¨ Time sharing Multi-programming Multi-processing 21

n Types of networks: ¨ WAN , Wide Area Network like internet ¨ LAN , Local Area Network, like XIME network ¨ VAN , value added network, like Air. Tel netweork ¨ VPN , Vitual Private Network [your own network as part & extension of internet] 22

Internet n “A massive electronic and telecommunication network connecting the computers of business, consumers, government agencies, schools, and other organizations worldwide, which exchanges information seamlessly using open, non-proprietary standards and protocols” 23

n Web Services; ¨ WWW n Retrieve, format and display information using hypertext links 24

Executive Support System (ESS or EIS) n “Information system that provides top executives with rapid access to timely information and direct access to management reports, especially exception reports drill down reports”. 25

Capabilities of ESS n Capabilities and benefits: ¨ Drill down – provides details behind any given information ¨ Critical success factors and key performance indicators (KPI) ¨ Status access ¨ Trend analysis ¨ Ad hoc analysis ¨ Exception reporting 26

Digital Dashboards n Dashboards: ¨ Provide rapid access to timely information. ¨ Provide direct access to management reports. ¨ Are very user friendly and supported by graphics.

Example of Dashboard

Role of MIS n n n To provide the information to the managers in the functional area. Required to tackle increased business complexity Qualitative decision making Making decision under uncertainty Proactive decision making MIS generates reports on functional area Routine scheduled reports n Ad-hoc (demand) reports n Exception reports n n Streamlines the operations 29

Misconception about MIS 1. 2. 3. 4. MIS is a computer based information system More data leads to effective decision making Managers know all information needs Managers do not have to understand how MIS works 30

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Dominos Pizza’s PULSE system Inputs-Outputs Block Diagram Inputs PULSE system Modules / Sub-Systems Customer Calls, Emails Etc. , Pizza Details: Size, Nos, topping Etc. , Outputs Customer Database Created / Updated (phone number is key) Pizza Tracker(Order Taking & Tracking) Pizza Order Number Pizza Delivery Info Raw Material Consumption info Pizza Delivery Info Pizza Delivered Money Collection Feed-back info Cash Collection Raw Material Consumed info PULSE(Order Processing & Order Fulfilment) and Online-polling Money Collection Raw Material Cost Accounting Cash Accounting Bank Accounting Profit/Loss , Balance sheet per outlet Etc. , Raw Material Requirements Back-end TPS, ERP and MIS Raw Material (RM)Orders RM Distribution MIS / DIS: Profit making outlets Complaints Data Base Etc. , Note: Each sub-module can have one or more Business Processes (Viz; Customer profile creation, customer order history creation Etc. , ) • Each Business Process may require one or more computer programs to do the work. • The entire system resides on handheld devices, servers and networks 32