This document discusses the planning and development of management information systems (MIS). It explains that early systems focused on automating data processing but did not utilize computers' information processing capabilities. Now, computers can intelligently store, communicate, and analyze large amounts of data. Effective MIS planning considers computers as tools for information, rather than just data, processing. A well-designed MIS is flexible and continuously adapts to an organization's changing information needs by interacting with the business environment.
This document discusses the planning and development of management information systems (MIS). It explains that early systems focused on automating data processing but did not utilize computers' information processing capabilities. Now, computers can intelligently store, communicate, and analyze large amounts of data. Effective MIS planning considers computers as tools for information, rather than just data, processing. A well-designed MIS is flexible and continuously adapts to an organization's changing information needs by interacting with the business environment.
This document discusses the planning and development of management information systems (MIS). It explains that early systems focused on automating data processing but did not utilize computers' information processing capabilities. Now, computers can intelligently store, communicate, and analyze large amounts of data. Effective MIS planning considers computers as tools for information, rather than just data, processing. A well-designed MIS is flexible and continuously adapts to an organization's changing information needs by interacting with the business environment.
This document discusses the planning and development of management information systems (MIS). It explains that early systems focused on automating data processing but did not utilize computers' information processing capabilities. Now, computers can intelligently store, communicate, and analyze large amounts of data. Effective MIS planning considers computers as tools for information, rather than just data, processing. A well-designed MIS is flexible and continuously adapts to an organization's changing information needs by interacting with the business environment.
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Assignment A
Q 1: Define MIS ? What are the characteristics of MIS?
Ans: To the managers, Management Information System is an implementation of the organizational systems and procedures. To a programmer it is nothing but file structures and file processing. However, it involves much more complexity. The three components in MIS gives a more complete and focused definition, where System suggests integration and holistic view, Information stands for processed data and Management is the ultimate user, the decision makers. Management information system can thus be analyzed as: Management: Management covers the planning, control, and administration of the operations of a concern. The top management handles planning; the middle management concentrates on controlling; and the lower management is concerned with actual administration. Information: Information, in MIS, means the processed data that helps the management in planning, controlling and operations. Data means all the facts arising out of the operations of the concern. Data is processed i.e. recorded, summarized, compared and finally presented to the management in the form of MIS report. System: Data is processed into information with the help of a system. A system is made up of inputs, processing, output and feedback or control. Thus MIS means a system for processing data in order to give proper information to the management for performing its functions. Definition Management Information System, 'MIS' is a planned system of collecting, storing and disseminating data in the form of information needed to carry out the functions of management.
Characteristics of MIS: Following are the characteristics of an MIS: It should be based on a long-term planning. It should provide a holistic view of the dynamics and structure of the organization. It should work as a complete and comprehensive system covering all interconnecting sub-systems within the organization. It should be planned in a top-down way, as the decision makers or the management should actively take part and provide clear direction at the development stage of the MIS. It should be based on need of strategic, operational and tactical information of managers of an organization. It should also take care of exceptional situations by reporting such situations. It should be able to make forecasts and estimates, and generate advanced information, thus providing a competitive advantage. Decision makers can take actions on the basis of such predictions. It should create linkage between all sub-systems within the organization, so that the decision makers can take the right decision based on integrated view. It should allow easy flow of information through various sub-systems, thus avoiding redundancy and duplicity of data. It should simplify the operations with as much practicability as possible. Although the MIS is an integrated, complete system, it should be made in such a flexible way that it could be easily split into smaller sub-systems as and when required. A central database is the backbone of a well-built MIS. Characteristics of Computerized MIS Following are the characteristics of a well-designed computerized MIS: It should be able to process data accurately and with high speed, using various techniques like operations research, simulation, heuristics etc. It should be able to collect, organize, manipulate and update large amount of raw data of both related and unrelated nature, coming from various internal and external sources at different periods of time. It should provide real time information on ongoing events without any delay. It should support various output formats and follow latest rules and regulations in practice. It should provide organized and relevant information for all levels of management: strategic, operational and tactical. It should aim at extreme flexibility in data storage and retrieval.
Q 2: Explain strategic MIS categories in detail. Give relevant examples. Ans: Ans: Strategic Information System A Strategic Information System (SIS) is a system to manage information and assist in strategic decision making. A strategic information system has been defined as, "the information system to support or change enterprise's strategy."
A SIS is a type of Information System that is aligned with business strategy and structure. The alignment increases the capability to respond faster to environmental changes and thus creates a competitive advantage. An early example was the favorable position afforded American and United Airlines by their reservation systems, Sabre and Apollo. For many years these two systems ensured that the two carriers' flights appeared on the first screens observed by travel agents, thus increasing their bookings relative to competitors. A major source of controversy surrounding SIS is their sustainability.
SISs are different from other comparable systems as: 1) They change the way the firm competes. 2) They have an external (outward looking) focus. 3) They are associated with higher project risk. 4) They are innovative (and not easily copied).
It is mainly concerned with providing and organization and its members an assistance to perform the routine tasks efficiently and effectively. One of the major issue before any organization is the challenge of meeting its goals and objectives. Strategic IS enable such organization in realizing their goals. Strategic Information System (SIS) is a support to the existing system and helps in achieving a competitive advantage over the organizations competitors in terms of its objectives. The flow of the unit is in such a way that it starts with the development of contemporary theory about strategic uses of corporations' internal information systems leading to systems which transcend the boundaries of particular organizations.
The process whereby strategic information systems are created or identified is then examined. A number of weaknesses in the existing body of theory are identified, and suggestions made as to directions in which knowledge is or may be progressing. A strategic information system is concerned with systems which contribute significantly to the achievement of an organization's overall objectives. The body of knowledge is of recent origin and highly dynamic and the area have an aura of excitement about it. The emergence of the key ideas, the process whereby strategic information systems come into being is assessed, areas of weakness are identified, and directions of current and future development suggested.
Information system is regarded as a tool to provide various services to different management functions. The tools have been developing year by year and the application of the tool has become more and more diverse. In management it is now a very power means to manage and control various activities and decision making process. The original idea of automating mechanical processes got quickly succeeded by the rationalization and integration of systems. In both of these forms, IS was regarded primarily as an operational support tool, and secondarily as a service to management. Subsequent to the development, it was during the last few years that an additional potential was discovered.
It was found that, in some cases, information technology (IT) had been critical to the implementation of an organization's strategy. An organizations strategy supported by information system fulfilling its business objectives came to be known as Strategic Information System. The strategic information system consists of functions that involved gathering, maintenance and analysis of data concerninginternal resources, and intelligence about competitors, suppliers, customers, government and other relevant organizations.
Q 3: Write a detailed note on the planning and development of MIS? Ans: Planning of information systems:
Many organizations have purchased computers for data processing and for meeting the statutory requirements of filling the returns and reports to the government. Computers are used mainly for computing and accounting the business transactions and have not been considered as tool for information processing.
The organizations have invested on computers and expanded its use by adding more or bigger computers to take care of the numerous transactions in the business. In this approach, the information processing function of the computers in the organization never got its due regard as an important asset to the organization. In fact, this function is misinterpreted as data processing for expeditious generation of reports and returns, and not as information processing for management action and decisions.
However, the scene has been changing since late eighties when the computers become more versatile, in the function of storage, communication, intelligence and language. The computer technology is so advanced that the barriers of storage, distance understanding of language and speed are broken.
In short, we need a management information system flexible enough to deal with the changing information needs of the organization. It should be conceived as an open system continuously interacting with the business environment with a built-in mechanism to provide the desired information as per the new requirements of the management. The designing as such in open system is a complex task. It can be achieved only if the MIS is planned, keeping in view, the plan of the business management of the organization.
Development of information systems:
Once the plan of MIS is made, the development of the MIS calls for determining for the strategy of development. As discussed earlier, the plan consists of various systems and sub systems. The development strategy determines where to begin and what sequence the development can take place with the sole objective of assuring the information support.
The choice of the system or the sub-system depends on its position in the total MIS plan, the size of the system, the user understands of the systems and the complexity and its interface with other systems. The designer first develops systems independently and starts integrating them with other systems, enlarging the system scope and meeting the varying information needs.
Determining the position of the position of the system in the MIS is easy. The real problem is the degree of structure, and formalization in the system and procedures which determine the timing and duration of development of the system.
Q 4: Explain the challenges before an E-business management. Ans: The scope of E-business is limited to executing core business process of the organization. The process would have external interface life suppliers, customers, contractors, consultants and so on. The core business process of the organization is procurement, manufacturing, selling, distribution, delivery and accounting. These core process are best run by application packages like enterprise definition is made wider including customer, suppliers and distributors, application package like supply chain management (SCM) is best suited for planning and execution of entire business process.
In addition to these core business process, organizations use internet enabled systems and other technologies to handle these process more effectively. Transaction processing workflow, work group and process control applications are the backend support systems to main ERP/SCM enterprise management systems.
E-business systems scope manages cross-functional application systems as a single business process. It integrates cross functions seamlessly, automates the tasks, and updates the information is real time the ERP/SCM and now customer Relations management system (CRM) is a family of software solution packages dedicated to care management of functions of business. They are supported by front-end and back-end systems and applications designed for transaction processing. Work flow management, work group processing and automated process control, E-business systems use client/server architecture and run an internet platform. E-business systems lay foundation for other Enterprise applications, namely E-commerce, E-communications, and E-collaboration.
In Accounting and finance system, IT application is very strong. E-business applications in this area are capable of accounting every business entity such as material, men, machines, cash, customer, vendor and so on, all process which deal with transaction, computing, accounting and analysis are automated using system intelligence and knowledge driver intelligent systems.
Assignment B Q1: What is an internet? Explain the differences between internet, intranet and extranet. Ans 1: Internet This is the world-wide network of computers accessible to anyone who knows their Internet Intranet This is a network that is not available to the world outside of the Intranet. If the Intranet network is connected to the Internet, the Intranet will reside Extranet An Extranet is actually an Intranet that is partially Protocol (IP) address - the IP address is a unique set of numbers (such as 209.33.27.100) that defines the computer's location. Most will have accessed a computer using a name such ashttp://www.hcidata.com. Before this namedcomputer can be accessed, the name needs to be resolved (translated) into an IP address. To do this your browser (for example Netscape or Internet Explorer) will access a Domain Name Server (DNS) computer to lookup the name and return an IP address - or issue an error message to indicate that the name was not found. Once your browser has the IP address it can access the remote computer. The actual server (the computer that serves up the web pages) does not reside behind a firewall - if it did, it would be an Extranet. It may implement security at a directory level so that access is via a username and password, but otherwise all the information is accessible. To see typical security have a look at a sample secure directory - the username is Dr and the password is Who (both username and password are case sensitive). behind a firewall and, if it allows access from the Internet, will be an Extranet. The firewall helps to control access between the Intranet and Internet to permit access to the Intranet only to people who are members of the same company or organisation.
In its simplest form, an Intranet can be set up on a networked PC without any PC on the network having access via the Intranet network to the Internet.
For example, consider an office with a few PCs and a few printers all networked together. The network would not be connected to the outside world. On one of the drives of one of the PCs there would be a directory of web pages that comprise the Intranet. Other PCs on the network could access this Intranet by pointing their browser (Netscape or Internet Explorer) to this directory - for example U:\inet\index.htm. From then onwards they would navigate around the Intranet in the same way as they would get around the Internet. accessible to authorised outsiders. The actual server (the computer that serves up the web pages) will reside behind a firewall. The firewall helps to control access between the Intranet and Internet permitting access to the Intranet only to people who are suitably authorised. The level of access can be set to different levels for individuals or groups of outside users. The access can be based on a username and password or an IP address (a unique set of numbers such as 209.33.27.100 that defines the computer that the user is on).
Q2: Explain the application of MIS by taking either materials management or production planning system in a manufacturing industry or service organization. Ans: In the manufacturing industry, production planning is a very important thing to do so as to increase profits and maximize wealth. The use of MIS at various departments or stages of manufacturing plays a vital role in production planning. This can be done in several ways as explained below; Marketing Information Systems is used to process orders from other organizations for the firms products. On the basis of these orders, the production/operations section assess available inventory so as to ascertain whether or not it will be adequate to produce to meet orders. If not, an order is made to the firms suppliers for inventory. This is done with the help of logistics management information system. Also, with the use of resources management information systems, the firm is able to assess itself in terms of its people, know-how, plant facilities and equipment hence is able to tell whether or not it has the capacity to produce to meet the orders placed for its products. When the firm acquires adequate inventory, the production/operation section goes into production as scheduled. Then, business acquisition management information systems are used to handle information related to markets, competitors, sales etc. Logistics management information systems are used to help with accounting for inventory.
Case Study THE CASE OF A DEPARTMENTAL STORE Mr. BAWA, Director (Sales) of the BAWA Departmental Store Chain in Uganda is a worried person. The worries revolve around the number of complaints he has been receiving from the Store Mangers about non-availability of the store information. The BAWA Stores chain was started about 6 years back. The then management thought it fit to install a Sales Information System (SIS) also. The present system, therefore, was installed at the beginning of the chain and became operational a year later. The system is operated on batch-processing mode and it generates monthly and quarterly reports on several aspects of Sale.
The basic input document for the processing is the Sale Invoice. In fact the Store personnel enter the Sale Invoices of the day at the end of the day. The Store Manager is responsible to see that the input data is created and validated before the same is passed on to the Computer Department for further processing. Every Store was provided with a PC for this purpose, however, on persistent demands one more PC was provided to each Store. The Computer Department does the final processing at the Head Office, and then the Reports distributed to each Store.
The system worked very well for about 3 years, however, for the last two years there have been several complaints from the Store Managers about the system. The Mohini started its operations with 3 Stores. In the last six years, the number of Stores has increased to 8. The management has plans to open an additional Store every year during the next five years. During the last 3 years the sales of Mohini has increased by nearly 120%.
Apart from the usual retail sales, almost all the Store in the chain cater to several bulk customers e.g. Government Departments, Factories Canteens etc. Which make bulk purchases from the Stores on a regular basis. The individual Store Managers generally enter into the sale contracts for these on annual basis. These are credit sales and the individual Store Manger is responsible for collecting the outstanding.
Discuss:
1. The general conditions of the Chain now and in the immediate future. Solution The general conditions of the chain is good for now. This is demonstrated in the percentage increase in sales over the last three years. However, the situation can be better. As the chain plans to expand within the next five years, its focus should not be shifted away from equipping and maintaining existing infrastructure, equipment etc. the broken down systems should therefore be maintained/replaced.
2. What are the problems, the Chain is facing. List them in order of priority. Solution The chain faces the following problems; -inadequate computers for the stores -lack of experts or know-how on the part of workers to develop, operate or maintain the system leading to breakdown -
3. Suggest a solution to overcome the problems as listed by you. Solution Management should fully equip new stores and maintain existing ones. While doing this, it should also engage the services of experts to develop improved systems for efficient functioning or train staff to better operate and maintain the system being used currently.
Assignment C 1. B 2. D 3. C 4. C 5. B 6. B 7. B 8. C 9. B 10. D 11. A 12. B 13. B 14. D 15. C 16. B 17. D 18. A 19. C 20. B 21. D 22. B 23. B 24. D 25. C 26. B 27. D 28. A 29. B 30. SYSTEM INFRASTRUCTURE DEVELOPMENT LIFE CYCLE 31. RELATIONSHIP MANAGEMENT 32. A 33. HEWLETT PACKARD 34. IBM & ORACLE 35. ONLINE SHOPPING 36. KNOWLEDGE ASSETS 37. A 38. D 39. A 40. C