MIS Management Information Systems

Describe the difference between data and information.

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Data goes through many distinct steps before it becomes information, including: acquisition of data; classification of data; storage of data; retrieval of data, editing of data; verification and quality control of process that produced the data; aggregation of data; hypothesis generation; description of data; test of analysis assumptions; Analysis; extrapolation of implications of findings; choice of format for presentation of data; distribution of reports; evaluation of effectiveness of reports.

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 MANAGEMENT: Management has been define in process or activities that describe what managers do in the operation for their organization plan, organize, initiate and control operations. They plan by setting strategies and goals and selecting the best course of action to achieve the goals. They organize the necessary tasks for the operational plan, set these tasks up into homogenous groups and assign authority delegation; they control the performance standards and avoiding deviation from standard.
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 INFORMATION: Data must be distinguished from information and the distinction is clear and important for present purpose. Data are facts and figures that are not currently being used in a decision-making process and usually are taken from the historical records that are recorded and filled without immediate intent to retrieve for decisionmaking.

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SYSTEM: The system can be described as a set of elements joined together for a common objective. A subsystem is a part of a larger system with which one is concerned. All systems for our purpose the organization is the system and the parts (divisions, departments, functions, unit etc) are the subsystem.

The system concept of MIS is, therefore one of optimizing the output of the organization by connecting the operating subsystems through the medium of information exchange.

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Management Information Systems

The MIS is an idea which is associated with man, machine, marketing and methods for collecting informations from the internal and external source and processing this information for the purpose of facilitating the process of decision-making of the business. A management information system (MIS) provides information that organizations require to manage themselves efficiently and effectively

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The Definitions
1. The MIS is defined as a system which provides information support for decision making in the organization. 2. The MIS is defined as an integrated system of man and machine for providing the information to support the operations, the management and the decision making function in the organization. 3. The MIS is defined as a system based on the database of the organization evolved for the purpose of providing information to the people in the organization. 4. The MIS is defined as a Computer based Information System.

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Hence MIS focuses on:

1. 2. 3. 4. Organization-wide information Decision-making process Managerial control and analysis Computer-based system

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The actual MIS process relates to:

1. 2. 3. 4. 5. Collection Organization Distribution Storage of wide information Managerial control and analysis of data

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 These days computers and information processing are everywhere. Computers influence what decisions are made, when decisions are made, what information is available at the point of decision and who is asked to decide. Computers and information processing affects how work is organized and how employees feel about work. Computers even influence what patients want from health care systems and how patients approach health care organizations. Information processing and computing is pervasive. From our perspective, the essential element of management is information processing and thus computers are expected to heavily influence management.
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Management Information Systems

Transaction Processing Systems (TPS) Support operation Management and control Routine, normal operations Management Information Systems (MIS) Provide decisionmaking support for routine, structured decisions Closely linked to and fed by TPS

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Management Information Systems

Terminology Confusion MIS = the study of information technology in business settings But, MIS is also term to refer to class of systems used to support operational and tactical decisionmaking

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A Model for Problem Solving

Decision Making Phase Intelligence gathering Design Choice Implementation Monitoring
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Decision Making
A step in problem solving Intelligence gathering
Definition of problem Data gathered on scope Constraints identified

Design phase
Alternatives identified and assessed

Choice
Selection of an alternative

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Structured vs. Unstructured Problems

Structured problems lend themselves to programmed decisions The implication is that a repeatable process can be employed and these can be automated Unstructured problems require unprogrammed decisions
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Unstructured Problems
Can be addressed (or partially addressed) with Decision Support Systems

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Structured Problems
Can be addressed by an MIS Three decision models or techniques Optimization
Find the best solution

Satisficing
Find a solution which meets certain criteria

Heuristics
Rule-based solution generation
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Goals of an MIS
Provide managers with information Regular, routine operations Control, organize and plan better

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Typical Inputs and Outputs

Inputs: Information from the TPS Outputs: hard and softcopy reports Scheduled reports On-demand reports Key-indicator (business fundamentals) Exception reports
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Functional Perspectives of MIS

Financial MIS Will integrate information from multiple sources Functions
Costing P&L reporting Auditing Funds management

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Functional Perspectives of MIS

Manufacturing Design and Engineering Master Production Scheduling Inventory Control Materials Planning Manufacturing and Process Control Quality Control
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Functional Perspectives of MIS

Marketing Market research
Web-based market research

Pricing

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Functional Perspectives of MIS

Transportation and Logistics Route and schedule optimization Human Resources Accounting

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Decision Support Systems

Used for unstructured problems Characteristics
Data from multiple sources internal and external to organization Presentation flexibility Simulation and what-if capability Support for multiple decision approaches Statistical analysis

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Components of a DSS
Model management software Provides a variety of solution models
Financial, statistical, graphical, project management

Dialogue Manager Allows user interaction with DSS

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Group Decision Making Systems

Very interesting field How can information technology improve how decisions are made by groups?

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Group Decision Making Systems

Applications
Where time is critical Where participants are geographically dispersed Where authority obstructs communication Military Business Government

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Group Decision Making Systems

Common characteristics
Meeting moderation/facilitation Signed and anonymous comments Structured deliberations
Presentation period Comment period Automated collation of comments Voting

Face-to-face and remote

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Executive Information Systems

What information does a chief executive of board member require?

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Executive Information Systems

High level with drill down Key business and industry data Structured and unstructured information Structured: MTD orders Unstructured: Industry newsfeed Graphical
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