INFORMATION MANAGEMENT Five Main Resources: A manager is required to manage five main types of resources effectively: Personnel Material

al Machines (including facilities and energy) Money Information (including data)

Goals of an MIS
Provide managers with information Regular, routine operations Control, organize and plan better

System View A system is a group of elements that are integrated with the common purpose of achieving an objective.

Input

Transform

Output

Closed Loop

Objectives

Control Mechanism

Feedback

Input

Transform

Output

Open Loop

Open & Closed Loop system

A system without the control mechanism, feedback loop, and objective elements is called an open loop system.

A system with the three control elements is called a closed loop system.

Sub-System
A subsystem is simply a system within a system. This means that systems exist on more than one level and can be composed of subsystems or elemental parts.

Physical and Conceptual Systems

Physical system The business firm is a physical system, composed of physical resources

Conceptual system Its a system that uses conceptual resources-information and data- to represent a physical system.

Importance of System View

Reduces complexity Requires good objectives Emphasizes working together Acknowledges interconnections Values feedback

DATA VERSUS INFORMATION Data consists of facts and figures that are relatively meaningless to the user. (e.g., number of hours worked by an employee) Information is processed data or meaningful data. (e.g., multiplying the hours worked by the hourly rate to get each employees gross earnings).

The transformation of data into information is performed by an information processor. The information processor is one of the key elements in the conceptual system and can include: Computer components Non-computer components Combination of the two

Employees Corporate databases of internal data Databases of external data Corporate intranet Decision support systems Executive support systems

Business transactions

Transaction processing systems

Databases of valid transactions

Management information systems

Application databases

Operational databases

Drill-down reports Exception reports Demand reports Key-indicator reports

Expert systems

Input and error list

Scheduled reports

Scheduled Report Example

Daily Sales Detail Report Prepared: 08/10/xx Order # P12453 P12453 P12453 P12455 P12456 Customer ID C89321 C89321 C03214 C52313 C34123 Sales Rep ID CAR CAR GWA SAK JMW Ship Date 08/12/96 08/12/96 08/13/96 08/12/96 08J/13/96 Quantity 144 288 12 24 144 Item # P1234 P3214 P4902 P4012 P3214 Amount $3,214 $5,660 $1,224 $2,448 $720

Key Indicator Example

Daily Sales Key Indicator Report This Month Total Orders Month to Date Forecasted Sales for the Month $1,808 $2,406 Last Month $1,694 $2,224 Last Year $1,014 $2,608

Demand Report Example

Daily Sales by Sales Rep Summary Report Prepared: 08/10/xx Sales Rep ID CAR GWA SAK JWN Amount $42,345 $38,950 $22,100 $12,350

Output Report Example

Earnings by Quarter (Millions) Actual 2ND Qtr 1999 1st Qtr 1999 4th Qtr 1998 3rd Qtr 1998 $12.6 $10.8 $14.3 $12.8 Forecast $11.8 $10.7 $14.5 $13.3 Variance 6.8% 0.9% -1.4% -3.0%

Characteristics of MIS

Provides reports with fixed and standard formats

y Hard-copy and soft-copy reports

Uses internal data stored in the computer system End users can develop custom reports Requires formal requests from users

MIS in an Organization
Internet An Organizations MIS Financial MIS

Business transactions

Transaction processing systems

Databases of valid transactions

Accounting MIS

Drill down reports Exception reports Demand reports

Marketing MIS

Key-indicator reports Scheduled reports

Business transactions

Databases of external data

Human Resources MIS Etc.

Etc.

Extranet

MIS Process
1. Understand the organization 2. Analyze the organization's information requirements 3. Plan overall strategy 4. Review 5. Preliminary analysis 6. Feasibility assessment 7. Detailed fact finding 8. Analysis 9. Design 10. Development 11. Cutover 12. Obtain conceptual schema 13. Recruit database administrator 14. Obtain logical schema 15. Create data dictionary 16. Obtain physical schema 17. Create database 18. Modify data dictionary 19. Develop sub-schemas 20. Modify database 21. Amend database

STEPS IN MIS DEVELOPMENT Preliminary Investigation The problem Magnitude and scope Alternatives Viability and cost effectiveness

Implementation/installation Application development Testing Debugging logical and syntactical Procedure and user manual preparation Orientation and training Maintenance and up gradation

Requirements Analysis Knowing the primary and secondary users Ascertaining user needs Primary and secondary sources of information Design, development and implementation needs

Acquisition/procurement Compatibility Cost effectiveness Performance standards After sales service Configuration Portability

Systems design Inputs Processing Outputs Storage Procedures Human resources

What managers do According the French management theorist, Henri Fayol, managers perform five major functions. They plan what they are to do They organize to meet the plan. They staff their organization with the necessary resources. They direct the available resources to execute the plan. Finally, they control the resources, keeping them on course

Management Levels
Strategic Planning Level The strategic planning level involves mangers at the top of the organizational hierarchy. The term strategic indicates the long-term impact of top managers decisions on the entire organization. The term executive is often used to describe a manager on the strategic planning level. Management Control Level Middle-level managers include regional managers, product directors, and division heads. Their level is called management control level due to their responsibility of putting plans into action and ensuring the accomplishment of goals. Operational Control Level Lower level managers are persons responsible for carrying out the plans specified by managers on upper levels. Their level is called the operational control level because this is where the firms operations occur.

INTEREST IN INFORMATION MANAGEMENT 1. Increasing complexity of business activity International economy

Increasing complexity of technology Technology is used everywhere in business. Examples are bar code scanners, computer based airline reservation systems, automated teller machines, factory robots ..etc. Shrinking time frames All phases of business operations are performed more rapidly than ever before. (telemarketing, electronic sales orders, just in time delivery of raw materials ..etc)

Social constraints Some products and services are found undesirable by society. Therefore, business decisions must be based on economic factors, but social costs and payoffs must be considered as well. Plant expansion, new products, new sales outlets and similar actions must all be weighed in terms of their environmental impact.

2. Improved computer capabilities Size Speed

System Approach

Developing and managing operating systems (e.g., money flows, manpower systems) Designing an information system for decision making Systems approach and MIS MIS aims at interrelating, coordinating and integrating different sub-systems by providing information required to facilitate and enhance the working of the sub-systems and achieve synergistic effects

Planning
Planning consists of five sequential and interactive steps These are: selecting objectives; identification of the activities which are required to achieve the stipulated objectives; detailing the resources - including the various skills - required to undertake the activities; determining the duration of each activity to be performed; and defining the sequence of the activities

Organizing
The organizing system has five basic parts, which are interdependent they are: the individual; the formal and informal organization; patterns of behavior arising out of role demands of the organization; the role perception of the individuals; and the physical environment in which individuals work.

Controlling
Controlling involves: establishing standards of performance in order to reach the objective; measuring actual performance against the set standards; and keeping actions on course by correcting deviations as they appear (mid-course corrections).

END OF UNIT 1

Assignment

Last Date of submission: 16/07/2011

Q1. Explain the meaning and use of MIS system within an organization? Q2.Briefly explain the Relationship between the management and MIS process? Q3. How MIS helps in the Decision Making in various levels of Management?