Unit 4 Development and Implementation
Unit 4 Development and Implementation
Unit 4 Development and Implementation
Unit: 04
Development and Implementation
4.1 Process of MIS
Management information systems consolidate raw data from multiple sources, turn it into
useful information through analysis, and distribute customized reports to stakeholders.
Well-designed MIS can improve efficiency, align business operations, and help drive overall
company performance. The process of Management Information System (MIS) involves
several stages to ensure effective planning, implementation, and utilization of information
systems within an organization, they are: -
1. Identification of Information Needs: The first step in the MIS process is to identify the
information needs of the organization. This involves understanding the business processes,
objectives, and decision-making requirements of different levels and functions within the
organization.
2. Data Collection: Once the information needs are identified, the next step is to collect
relevant data. Data can be sourced from various internal and external sources, such as
transactional systems, databases, surveys, and market research.
3. Data Processing: After collecting the data, it needs to be processed to extract meaningful
information. This involves organizing, cleaning, aggregating, and transforming the raw data
into a format that can be used for analysis and decision making. Data processing may
include tasks like data validation, integration, and data quality assurance.
4. Data Analysis: In this stage, the processed data is analyzed to derive insights and support
decision making. Various analytical techniques, such as statistical analysis, data mining, and
predictive modeling, can be employed to discover patterns, trends, and relationships in the
data. The analysis helps in identifying key performance indicators, evaluating performance,
and making informed decisions.
5. Information Presentation: The analyzed information is then presented in a meaningful
and easily understandable format. This can involve creating reports, dashboards,
visualizations, and other tools to communicate the information effectively to the relevant
stakeholders. The presentation should be tailored to the specific needs of different users,
such as executives, managers, and operational staff.
6. Information Dissemination: Once the information is presented, it needs to be
disseminated to the appropriate individuals or groups within the organization. This can be
done through various channels, such as email, collaboration tools, intranets, or mobile
applications. Timely and accurate information dissemination ensures that the right people
have access to the right information at the right time.
7. Information Utilization: The final stage of the MIS process is the utilization of information
for decision making and performance improvement. The information provided by the MIS
supports strategic planning, operational management, problem-solving, and performance
evaluation. It enables managers and executives to make informed decisions based on
accurate and up-to-date information.
It is essential to align the MIS development with the organization’s strategic goals and
ensure that it provides accurate, timely, and relevant information to support effective
decision-making at all levels.
2. life cycle approach : There are many systems or subsystems in the MIS which have a life
cycle, that is, they have birth and death. Their emergence may be sudden or may be a part
of the business need, and they are very much structured and rule-based. They have 100%
clarity of inputs and their sources, a definite set of outputs in terms of the contents and
formats. These details more or less remain static from the day the system emerges and
remains in that static mode for a long time. Minor modifications or changes do occur but
they are not significant in terms of handling either by the designer or the user of the
system. Such systems, therefore, have a life and they can be developed in a systematic
manner and can be reviewed after a year or two, for significant modification, if any.
Examples of such systems are payroll, share accounting, basic financial accounting, finished
goods accounting and dispatching, order processing, and so on. These systems have a fairly
long duration of survival and they contribute in a big way as sources of data to the
Corporate MIS. Therefore, their role is important and needs to be designed from the
viewpoint as an interface to the Corporate MIS.
➢ It is useful when there are periodic review of system take place
➢ It is useful in modification of system required after particular time period
➢ It provide system a stability with regular evaluation
➢ This approach is based on rules and regulation on which system follows and it can not
allow significant change in system.
➢ It is used in closed system where outcome of system is already decided before
implementation of system
➢ There are many systems or subsystems in the MIS which have a life cycle that is they
have birth and death.
➢ Their emergence may be a sudden or may be a part of the business need, and they are
very much structured and rule-based.
➢ They have 100% clarity of inputs and their sources, a definite set of outputs in terms of
the contents and formats.
➢ These systems have a fairly long duration of survival.
➢ Factors Responsible for the development of MIS: Factors Responsible for the
development of MIS are numerous and have been a prime concern for many
Researchers and Practitioners. Both Inter and external factors must be taken into
account when trying to understand and organization’s criteria for deciding about
technology. The following are the factors which are responsible for development of MIS:
External Factors : External Factors are conditions that exist in organization’s external
environment. The factors can be found at the industry level or in national policies.
(a) Industry level : At the industry level, we are looking at characteristics as degree of
diffusion of certain technologies, the availability of external know-how, for example,
technology suppliers, the degree of innovativeness of the industry, the requirements
imposed by major customers and external markets and overall levels of competition and
technology sophistication in the industry.
(b) National Policies : For the external factors the national policies also affect the
organization that indirectly affects the subsystems of the organization.
Internal Factors : Internal factors internal of the firm that may affect the development of
MIS can be grouped into three categories:
i) Past Experience with Technology : The organizations past experience about the
technology in terms of exposure and organizational learning ultimately affects its future in
developing technology.
ii) Organizational Characteristics : An organization’s characteristic like size, influence the
adoption of MIS application in organization. The adoption of certain technologies may
appear more appropriate for the larger firms because of the large capital investments and
the skilled human resources involve in the implementation and operation of such
technologies. Smaller firms are less affected by organizational inertia and they show a
greater degree of involvement of organizational member’s especially top management
during implementation. Ready to use software and less expensive equipments of MIS
application are more attractive to smaller firms.
iii) Organizational Pursued strategy: Internal factors deal with the organizations pursued
strategy on both orientation and technology policy. An organization’s strategy reflects its
action with market and technology, which ultimately modify its experience and
consequently its overall characteristics and capabilities. The need for a strong technology
has been advocated by a number of authors and investments in MIS should therefore be
closely aligned with overall corporate strategy.
iv) Customer Satisfaction : Development of MIS is affected by customer satisfaction.
Customer of the services should be satisfied by the presented system.
v) Effectiveness: Development should be effective in terms of organizational benefit & user
satisfaction.
➢ Implementation of MIS can be achieved by using any of the methods such as direct,
parallel, modular or phase in.
a. Direct Approach: Direct approach is the installation of the new system and the
immediate discontinuation of the old system. This approach produces a time gap when no
system is working. This approach is used in organisations where seasonal operations like
sugarcane processing or plant shut down are to be done. It is quite inexpensive, but it
provides a big risk of failure.
b. Parallel Approach: Parallel approach is the approach where a new system is installed and
operated in parallel with the current system until the new system has been tested
thoroughly. Here outputs frame both systems are compared and differences are reconciled.
It is very expensive as both systems have to be managed in parallel. Its main benefit is that
the accuracy of the system is properly checked.
Evaluation of MIS
Evaluation of MIS is a process in which the performance of an organizational MIS is
determined. According to the performance results, the organization evaluates and
implements the necessary modifications in MIS. Various terms related to the evaluation of
MIS are,
1. Evaluation approaches
2. Evaluation classes
3. Product-based MIS evaluation
4. Cost/benefit-based evaluation
1) Evaluation Approaches
Various approaches are used to evaluate the organizational MIS performance. The most
common approaches are,
• Quality Assurance Review: The quality assurance review is also known as a technical
review. It determines the technical quality performance of MIS. The quality assurance
review determines the data transmission rate, main or secondary storage, and CPU
capacity.
• Reliability and Accuracy: Reliability and accuracy is a key indicator of measuring the
performance of an MIS. The usefulness of the resulting information is usually
determined by the precision of the data, it uses some parameters to find reliability
and accuracy.
• Timeliness of Information: The results of MIS must be recent. And when evaluating
patterns, management must make assumptions about the organization's future,
based on MIS data. A more recent on MIS, decision making always reflects on current
reality and correctly predict their impact on the business. If the data collection and
processing delay its availability, the MIS must take into account its potential age-
related inaccuracies and present the resulting information accordingly, with probable
error ranges.
The MIS development personnel or a quality assurance group performs the quality
assurance review.
2) Evaluation Classes
To evaluate the performance of MIS, the following two classes are used,
• Effectiveness: The effectiveness class determines the quality of the MIS output. MIS is
effective if the quality of its output is good and the process of producing output is
right.
• Efficiency: The efficiency class specifies the total amount of resources required by
MIS to obtain the output.
• Completeness of Information: For a specific decision, a successful MIS provides all
the most important and valuable information completely. If any information is not
available due to missing data, the gaps are highlighted and potential possibilities are
either shown or possible implications arising from missing data are addressed.
The relationship between effectiveness and efficiency can be defined as effectiveness is a
measure of the quality of an MIS output, while efficiency is a measure of the resources
required to achieve the output.
3) Product-based MIS evaluation
The product-based MIS evaluation is also known as effectiveness evaluation. Determines
the effectiveness of an MIS output. For assessing the effectiveness of MIS output, a model
structure may be used.
• Model Structure: A model structure is a structure that contains various information
attributes such as timeliness and relevance. To determine the MIS effectiveness in an
organization, we need to determine the information attributes for the MIS output.
Some of commonly used attributes are,
o Timeliness: Real-time information may be called information that is evaluated
in a very short period.
o Relevance: Questions such as timeliness, authority or novelty of the outcome
may include significance.
o Accuracy: The accuracy of information or measurements is their consistency,
even in small details, of being accurate or correct.
o Completeness: Completeness' refers to how comprehensive the data is.
o Adequacy: The ability to obtain the information required for decision making in
a timely and reliable manner.
o Explicitness: The degree to which the MIS is consistent with the particular
organization.
o Exception-based: MIS should be built based on the exception-based reporting
concept, which implies an irregular condition where the maximum, minimum,
or predicted values differ outside the limits. Exception reporting should be
given to the decision-maker at the appropriate level in such cases.
4) Cost/benefit-based evaluation
Cost-based evaluation of the MIS system determines the benefits expected from the
developed system. Different approaches are used to measure the cost and evaluate the
various benefits to organizations. The approaches of cost-benefit analysis are used to find
out the feasible solution. The benefits to be expected from the system and expected
benefits are carried out in the cost/benefit calculation of the different expected costs. The
measurement of cost/benefit decides the system's cost-effectiveness.