MIS Session-1

Management Information
Systems:
An Introductory Framework

 Changing Landscape of Management

Information Systems Environment
 Conceptual Framework of Management
Information Systems
 Classification and Scope of Information
Systems for Management
 Strategic Role of Information Systems in
 Changing Landscape of Management
Information Systems Environment

 What is an Information System ?

Information system is a set of interrelated components
that collect, process, store, and distribute information to
support decision making and control in an organization

 Changing Landscape of Information Systems

Environment
- 1970s Transaction Processing Systems (TPS)
- 1980s Decision Support Systems
- 1990s Transformation using Business Process
Reengineering
[BPCL, HLL, M & M, ICICI, Indian Railways, ITC
etc]
- 2000 onwards Internet – [Dell, Amazon, FedEx, and
CISCO etc.]
Impact of Information Systems in a business
environment

Organization Information
Systems
-Customer Satisfaction Better
software
-Productivity Business Lower hardware
costs
-Profitability Value Easier to
use software
Impact Reliability

Companies in Lead: FedEx, Dell, HLL, ICICI, IRCTC, ITC e-

Chaupal
Objectives of Information Systems

Levels of Management Production

Department
(Anthony’s Framework)
Strategic Planning Location of Factory
Management Control Determining Prod.
Mix
Operational Control Scheduling Jobs

Information Systems Resources

 Hardware
 Software
 People

 Chief Information Officers

 Manager, Information Systems
 Database Administrators
 Systems Analysts
 Programmers
Chief Information Officer / Manager – Information Systems
ROLE OBJECTIVE:
The Manager Information Systems is responsible for the strategic leadership
of Information Systems functions and directing and coaching the function to
support the division achieving its objectives.
PRIMARY RESPONSIBILITIES AND ESSENTIAL FUNCTIONS:
- Reporting directly to the Group IT Director of Asia
- Manage the organization and technology initiatives to meet agreed upon
financial targets (budgets,
returns on investments, etc.).
- Develop and implement an overall e-business and information systems
strategy that provides India
with the systems, technology and organization necessary to support and
enhance the overall business
strategy.
- Build a world class Information Systems organization that supports as well
as contributes to the
business strategies.
Provide overall leadership for:
- The design and implementation of all new systems
- The integration of the Information Systems of acquired companies into the
India organization
- The maintenance and operation of existing systems to ensure that they
provide world class service
levels and meet the businesses information needs.

KNOWLEDGE/SKILLS/COMPETENCIES:
- Strong business experience, as well as experience in IT and e-business with
proven experience leading
an IS organization
Classification and Scope of Information Systems for
Management
Types of Systems
 Open Systems
 Closed Systems
Desired Output

Comparison as
per requirement Mgt Input System
Output
& actual output Action

Modified System
Types of Information Systems
13. Transaction Processing Systems (TPS)
14. Office Automation Systems (OAS)
15. Executive Support Systems (ESS)
Information Systems Domain
Operational Control Mgt Control
Strategic Planning
Structured TPS
ESS
Semi-Structured MIS
Unstructured DSS

Transaction Processing Systems (TPS)

A transaction is any business-related exchange. A
TPS is an organized collection of people,
Hrs worked
procedures, software, database and devices used
Payroll
to record business transactions. Check
Pay rate
Payroll System
Office Automation Systems (OAS)
OAS create, store, modify, display and communicate
business correspondence, whether in written, verbal or
video form.

Telephone Exchange(PBX) Copying, publishing

facility

Printers, plotters Remote OAS

Computer Workstations Video Conferencing

Executive Support Systems (ESS)

These information systems are tailored to the strategic
information needs of top/senior executives. These systems
present data at the highest levels of aggregation and
Executive Support Systems (ESS)

MIS data

TPS data
DSS Models

ESS Engine
OAS data

ESS Models

Graphical Reports

Management Information Systems

An integrated man-machine system designed to help
managers to make effective decisions for strategic planning,
management control and operational control activities
within an organization.
Data Information Decisions
MIS USER
Processes Processes

Scope of MIS MIS Application

Architecture
MIS
Internet, data
Magazines Master
Govt. File
Data
Agencies USER
Internally from
Generated TPS MIS
Information Programs
Customers
Vendors Reports
Decision Support Systems (DSS)
These are interactive computer-based systems which help
decision makers to utilize data & models to solve
unstructured problems.
MIS data

DSS Models
TPS data

DSS programs DSS User

External data

Graphics
Manager Reports
DSS Components Decision Models
Display
Statistics &
Database
Manipulation
Environment
Strategic Role of Information Systems in
Management

Strategy: is a plan to help organization outperform its

competitors
- Doing things differently
- Provide value at lower cost

Strategic Information Systems: These systems help to seize

opportunities by adapting to goals, operations, products,
services to gain edge over competitors.

Strategic Role of Information Systems

Customer Focused Approach - Integrated &

Interoperable
Command & Control Capability - Flexible & Adaptive
Richard Nolan Model of MIS Growth
Growth of the MIS activity in an organization could be studied
best by applying the six-stage model developed by Richard
Nolan in 1979, popularly known as the Stage Growth
Hypothesis.

The model can be used to understand the growth of IS pattern

and use the MIS function to the strategic advantage of the
organization.

Growth Portfolio

Application Portfolio

D P Organization

D P Planning & Control

User Awareness

ST-1:Initiation ST-2:Contagion ST-

Stage-1: Initiation
Features: Functional Cost Reduction Applications
Specialist DP organization for technical learning
Lack of strict Planning & Control
Hands-off training for user awareness
Stage-1: Contagion
Features: Proliferation of applications
User-oriented departmental programmes
More relaxed planning & control of MIS function
Users are enthusiastic without sincere involvement
Stage-3: Control
Features: Up gradation of documentation and modification of
existing
applications
Middle-level management to look after MIS
function
Formalized planning & Control of MIS function
Stage-4: Integration
Features: Retrofitting the existing applications using data
base technology
Establishing the computer utility and the user
accounts teams
Tailor-made planning & control systems
User accountability to learn and involve in the
systems
Stage-5: Data Administration
Features: Applications further integrated as per org
requirements
The data-processing organization is for the data
administration
The systems are based on data and system
sharing basis
User becomes effectively accountable for MIS
systems
Assignment:

Study the information systems used by

various departments in a business
organization.

Date of submission and evaluation:

Next MIS class.
You are required to submit a handwritten
/ softcopy 4-5 pages report. Any student
can be asked to present the report for 5-
7 minutes.
Case Study for Next MIS class:
Case Study “Session-2 – Modernization of PRS”
The case study has been uploaded in the YahooGroup

Before answering the questions (as given below) write one page summary. Bring this summary
in the class (hardcopy) along with your own two questions drafted from this case study.

The questions given below along with some common questions drafted by all the students
will be discussed in the class.

Questions 1.

Keeping in view the technical considerations mentioned at Page 438

second last paragraph) to scrap the old PRS in favor of new system,
suggest, whether Mr. Ram asunder should recommend switching over to
the new system or not?

If yes, write a recommendation proposal on behalf of Mr. Ramasunder,

if not give the reasons thereof.

Question 2:

In the previous class we studied Richard Nolan Model of MIS Growth.

Analyze the Case Study carefully, and find out in which stage growth
PRS implementation is and give reasons thereof.

After class discussion:

The students are required to submit hardcopy (handwritten or printed) - one page summary,
answers to questions and conclusion in the next MIS class.