Management Information Systems

(CSC373)
 Trends in the World of Business

Introduction
 Change in Business and Business Environment in last one and a half
decade.
 The system used before is changed or updated by new system.
 Globalization and new environment for business and commerce exist
today.
 Increased Competition replaced older product with new one.
 Customers are aware (Total Quality Management)
 Government have imposed more restriction and laws on businesses.
 Internet revolution has changed the way of life and commerce.
 Increased expectation of faster delivery.
 Today most of the operations in our life, business, and organizations is
ruled by the power of information.
 Trends in the World of Business

Introduction
 Information and technology together have worked as a catalyst for this
new change and this change will intensify in the years to come.
 Managers have to tuned with the business and market to overcome any
competition and change.
 The change is not possible without a perfect information about the
business and market for correct and effective decision making.
 All above leads to new era of management information.
 The correct information and system is required today for proactive
decision making and to turn threats into opportunities in the market
place.
Major trends in modern business environment

Increasing Competition
 The most and important in the modern business environment is the
increase in competition.
 Competition has forced businesses to become more efficient and
effective.
 Its an era of how to effectively and efficiently using the resources to beat
competition.
 Economies of scale to reduce cost while producing in bulk.
The main reason for competition is
Globalization and Liberalization
They look for production at a place where they can reduce cost through
labour or material cost.
Major trends in modern business environment

Increasing Competition
Market dynamics favouring the efficient.
Customer will shift to the seller who can fulfil the demand and expectations
in term of better quality at lower price.

The fast pace of recent technological change and innovation.

The recent technological change in information technology is
 Very large scale integrated circuits (VLSI)
 Nano technology
 Bio technology
Innovation and invention has become the new tool for gaining long term
advantage in the market place. Management believe in innovation to beat
competition.
Major trends in modern business environment

Increasing Competition
Increased information exchange.
It has resulted in a free flow of information about markets, competitors, strategies
and alternatives making competition all the more difficult.

Increasing Uncertainty in the market place

 Technological change and innovation has resulted in uncertainty.
 Businesses are alert to changes in market.
 Disruptive technologies get developed faster and the life cycle of the product
or service get shorter.
 Alternate products are available in shorter time and from unknown competitor
and location of the world.
 That is the cause of uncertainty among businesses.
 This uncertainty needs to be adjusted at right time and information technology
and management is a greater weapon in doing this.
Major trends in modern business environment

Increasing Uncertainty in the market place

 That is the reason that most of organizations are investing on
information technology to get right information at right time to beat
competition and uncertainty at right time to avoid loss and turn
organization profitable.
 Major trends in modern business environment

Increasing Globalization
 Globalization is another trend in todays business
 Africa, manufacturer/assemble in China and sell in Europe or Japan.
 Capital flows freely in different forms from country to country.
 Organizations are on the lookout for global markets, global manufacturing
hubs, global logistic hubs, global labour force and global presence.
 The main idea is to create a product or service at any location where cost of
creating it is lowest and then connect the market with the
manufacturing/servicing hub by a global supply chain.
 Globalization has brought threats and opportunities both to the market place.
 Businesses can not be in comfort zone without having an open eye to global
competition.
 It has changed the perception of customer and made them more demanding.
 Major trends in modern business environment

Increasing tendency of Outsourcing.

 Most of the organizations are focusing on their core functions and
outsourcing the rest.
 Business process outsourcing (BPO) firms have created competency in
customer relationship management, legal process management.
 Anyone located anywhere can deliver services anywhere making the
service delivery independent of boundaries.
 Outsourcing can be of many types
1. Direct selling by tele calling – outbound calls
2. Direct selling by tele calling – Inbound calls
3. Customer grievance handling by receiving calls
4. Customer support by tele calling
5. Medical transcription
6. Legal process outsourcing
 Major trends in modern business environment

Increasing tendency of Outsourcing.

7. Technical support to sales team through inbound calls
8. Billing support and management.
9. Account management.
10. Human resource management.
11. Recruitment Assistance.
12. Marketing analytics support.
13. IT application development.
14. IT maintenance
15. Entire IT management
16. IT hardware support
17. IT software support
 Major trends in modern business environment

Increasing tendency of Outsourcing.

From the perspective of the outsourcer, outsourcing involves challenges like
1. Ensuring quality of output
2. Ensuring timely output.
3. Ensuring zero cost escalation
4. Ensuring minimum customer complaints
5. Ensuring synchronized service over different time zones
6. Ensuring zero stoppages
7. Ensuring six sigma
 Major trends in modern business environment

Increasing tendency of Outsourcing.

It all require good relationship with outsourced vendor, understanding of vendor’s
capability, and a realistic assessment. It also require understanding of different
cultures, knowledge of different laws.

From the perspective of the outsourcing agency the skill requirements are.
1. Service orientation
2. Ensuring six sigma
3. Ensuring proper client management
4. Ensuring stoppages
5. Managing a large body of young and educated labour force
6. Managing a large IT platform
7. Ensuring efficiency of service level
8. Ensuring polite and amiable customer handling
 Major trends in modern business environment

Increasing tendency of Outsourcing.

Companies care about their own profit rather then benefiting countries. It is a
issue that outsourcing result in shifting jobs from one country to another but the
companies care about lowering cost more.

Reducing Hierarchy and improved transparency.

 Companies everywhere more care about output rather then how it is done.
 There is less focus on massaging egos of superior and adhering to strict
hierarchy as was the case in the past.
 The open culture has resulted in more productivity and efficiency.
 Major trends in modern business environment

Increasing clout of civil society and media.

 Civil society and media all over the globe have become more aware.
 They are making customer aware of their rights and powers.

Increasing customer focus.

 Business are becoming aware of customer focus to improve market share.
 Customer today has a choice and can shift to any other seller if not satisfied.
 For proper information about the customer and the market companies are
investing to ensure proper information technology infrastructure for better
information.
 Investment is done in Enterprise resource planning (ERP), customer relationship
management (CRM), data mining and data warehousing (DM and DW).
 Investment in information management is for faster decision making, accurate,
timely and accurate.
 Major trends in modern business environment

Increasing focus on knowledge in business.

 Business focus is on knowledge as a key ingredient for success along with
capital and labour.
 Focus is on to increase output, and get greater value.
 More investment is on research and development for better output.
 This fast focus led to fast obsolescence of product and service and hence has
indirectly led to increased competition.
Increasing Awareness of the value from managing
information.
 Heavy investment is on information management and technology for
acquiring accurate and valuable information.
 Search engines have made information available for decision making.
 Proactive decision making is adopted for predicting future to avoid
competition and acquire market ahead.
 Major trends in modern business environment

Increasing Investment on information technology.

 Organization are investing in information technology as they are getting
value for it.
 Today successful companies have MIS or even better version of MIS in form
of ERP, CRM, or even KM (Knowledge management system).
 This can not provide you with edge as every company today has installed
this.
 The main thing is to have installation of IT solutions for management
problems to succeed as their decisions are proactive.
Management Information Systems
(CSC373)
 Information and its Value

Introduction
 Information is required in in business to serve a host of purposes
ranging from the most critical, like decision making, strategizing,
planning, to the mundane, like operational control, automation.
 Businesses are investing heavily on installing modern information
system.
 These systems are housed within a computerized environment more
popularly called information technology platform.

Meaning of information

 Information provided to broker for active investments in stock markets.

 Information if used properly serve as a competitive edge for the firm.
 Information and its Value

Meaning of information

 Value of information
 Priority of information.
 Data is raw facts and figures.
 Processed form of data is information.

Data: data is a set of raw facts and figures which is unprocessed. It does not
have meaning in itself that is the facts are not put in a relational context to
provide meaning. It can be in any form that is symbols, numerical, pictures etc

Information: is processed data, which helps in decision-making and/or

facilitates communication within an organization. More often, information
provides answers to who, what, where and when questions.
 Information and its Value

Meaning of information

Knowledge: It is information gathered over a period of time and enhanced

by experience, which helps in judgement and decision making. It normally
provides answers to the how questions.

Accuracy and Knowledge

Correctness
Understanding Patterns
Information

Understanding Relation
Data

Understanding
 Value of Information

Value of Information

Normative value of Information

 When we have half information about occurrence a head for any
occurring.
Subjective value of Information
 It is the receiver's comprehensive impression about the information
content.
 Information and its Value

Quality of information

 Timeliness
 Appropriateness
 Reliability
 Accuracy
 Completeness
 Information and its Value

Information Overload

 There is more information then one require.

 It is a problem
 A good management information system avoid overload.
 Information and its Value

Management with Information

 The positive role of information in todays world is it plays important role

in decision making.
 It helps the management in conducting tasks efficiently.
 Duplication of data is avoided.
 Centralized
 Decentralized
 Information management ensures that decision are based on facts
rather then gut feelings.
 Information and its Value

Management with Information

 Business organizations that manage with information successfully achieve

the following.
 Minimization of risk: Information helps organizations to continuously
monitor and control the following.
 Activities
 Situations
 Clients
 Competitors
 Markets
 Employees
 Technology and
 Government (New rules and regulations)
 Information and its Value

Management with Information

Information management helps in
 Reduction of cost
 Addition of value
 Creation of new ideas and innovation
Information management is continuous process
 Information and its Value

Business Value of Information

• Timeliness
• Presentation
• Accuracy
• Context
• Expectation

Timeliness Presentation Accuracy Content Expectation

information
Business
value of
 Information and its Value

Dimensions of Information
Business Dimensions
 Time
 Accuracy
 Reliability
 Appropriateness
 Scope
 Completeness of content
Technical Dimensions
 Cost of data acquisition
 Cost of data maintenance
 Cost of data access
 Information and its Value

Dimensions of Information
Technological Issues
Networking and communication (Transmission of data in network)
 Methodology (methodology of networking and communication.
 Protocol (Rules and procedures)
 Topology (Layout of network)
Data management
 Data management and maintenance (means by which data is stored and
maintained)
 Visualization and reporting ( manner in which data/information is presented)
 Information and its Value

Dimensions of Information
Time
Accuracy
Reliability
Business
Dimension Appropriateness
Scope
Completeness

Dimension
of
Information Cost of data
Information Gathering Acquisition
Technical Cost of data
Dimension Completeness
Analysis Maintenance
Cost Cost of data
Access
 Information and its Value

Role of information in decision making

• On time accurate information for decision making
Stages of Decision making Role of Information
Identification and structuring of Information required to identify
problem/opportunity problem to put in structure.

Putting the problem/opportunity in Without information about context one

context cannot take decision

Generation of alternatives Information a key for generating

alternatives

Choice of best alternative Based on information about suitability

of alternatives, a choice is made to
select the best alternatives.
 Information and its Value

The concept of information as a resource

• Material resource, human resource, monetary resource can be utilized to full
if information is managed.
• Data mining, data warehousing, and business intelligence have been
developed on this premises of information as resource

Information Management: is a business and process driven concept in which

the focus is on leveraging information for using it to take decision, on the quality
of such information that is provided and the integrity of the information. It is the
scientific organization of data (by capturing, storing, analysing, retrieving and
disseminating) and information for use within an organization.

Information system: it is system based concept that focuses on transaction,

events and data. It is the systematic process involving information gathering,
storing, processing, retrieving and disseminating, which ensures repeatability of
good quality information supply within an organization.
 Information and its Value
Information Technology: I the broad set of technologies/technology disciplines
like computer science and engineering, telecommunication, electronics, etc.
which aid in information management.
Need for Information management:

• Gathered from different locations and sources.

• Stored in one or more locations in a predefined format
• Analysed in several methods
• Retrieved as required
• Disseminated as required

Organizations are investing in to acquire more accurate data to beat

competition.
 Information and its Value
How to manage information:
• By interacting with internal employees and external customers.
• By managing we mean managing the generation process, storage process,
analysis process an d retrieval process and dissemination process of the
data of the organization.
Managing information system: it deals with the purpose, planning,
construction, implementation and operation of a set of systems. (information
gathering, assimilating and disseminating systems)
The purpose of MIS is to provide right information at right time to right person.

Information system and information Technology:

• Information technology is a term used for set of technologies that includes
technology from the domain of computer science and engineering,
networking electronics, and telecommunications and other such domain.
• It ensure that processing is faster and accurate.
 Information and its Value

Information system and information Technology:

• Common interventions used in system are
• Data base management system
• Computer networking
• Application development tool
• Internet based tools
• Report generation utilities
Niche Interventions
• Wireless communication
• Enterprise system
Enterprise resource planning
Customer relationship management
• Knowledge management
• Mobile computing
• Multi tire architecture
• Business intelligence
• Data warehousing and data mining

These interventions make the job of the manager easier.

 Information and its Value

Competitive advantage using information system:

• Manages information to reduce reaction time for change.

• Manages information makes the organization efficient.
• Information management leads to insight into the business that the
competitors cannot have
• Information management is used for predictive analysis so that the
organization is one step ahead of competition.
 Information and its Value

Benchmarking – An organization’s use of information:

Understand for present ways of

information use
Make inter department comparison
on information use within same
organization
Make inter department comparison on
information use within other organization

Make roadmap for improvement in use of

information in the organization

Make changes in Business Process to

leverage information in a better way
Management Information Systems
(CSC373)
 Basics of Management and Organization

Introduction
 Organization
 Organization form: machine, an organism, a coercive system and
culture
 Machine, brains, organism, political systems, cultures, psychic prisons,
coercive instruments of subjugation and as change and transformation.
 Each gives different forms and view to the organization.

Forces at Work
Organizations are subjected to the forces of.
 Direction.
 Innovation.
 Basics of Management and Organization

Forces at Work
 Proficiency.
 Concentration
 Cooperation
 Competition
 Efficiency
Basics of Management and Organization

Direction set
Innovation
by strategy
Proficiency of to adapt
skills and
knowledge
Organization

Efficiency to
Concentration to
reduce costs and
focus
improve value

Competition to
Cooperation for
motivate and
team work
perform
Organization Structure
 Functional Structure
 Product or service based structure
 Geography based structure
 Customer category based structure
 Matrix structure
 Virtual organization
 What is management

 Planning
 Organizing
 Staffing
 Leading
 Controlling
 Levels of Management

 Top Level
 Middle Level
 Operational Level
 Characteristics of Different Levels of
Management
Characteristics Top Level Middle Level Operating
Management
 Planning Activity • Heavy • Moderate  Low
 Control Activity • Low • Heavy  Heavy
 Organizing Activity • Low • Heavy  Heavy
 Leading Activity • Heavy • Moderate  Low
 Decision making complexity • Heavy • Moderate  Low
 Problems handled • Unstructured • Semi  Structured
 Type of information required for and semi structured/  Operational
decision making structured structured and
 Impacts and outcomes • Strategic • Tactical and structured
 Understanding of the line of information, structured/ information
business unstructured/ semi from within
 Understanding on the business semi structured structured the
environment from both within information organization.
 Understanding of the the organization from within
competition and outside the
environment organization
 Characteristics of Different Levels of
Management
Characteristics Top Level Middle Level Operating
Management
 Impacts and outcomes • Long term and • Medium Term • Short term
 Understanding of the line of organization • Very High • Medium to
business wide • High to low
 Understanding on the business • High medium • Low
environment • High • High to • Low
 Understanding of the • High medium
competition
 Roles and functions of management

Roles of management
• Interpersonal
• Informational
• Decisional

 As a titular figurehead : respected person in organization.

 As a leader
 As a liaison
 As a control monitor
 As an information disseminator
 As a communicator
 As an entrepreneur
 As a trouble shooter
 As a allocator of resources
 As a negotiators
 Functions of management

• Operations
• Marketing
• Finance
• Human Resources
Management Information Systems
(CSC373)
 Information and Decision Making

Introduction
 It’s a process
 It requires information
 Correct, accurate, reliable information.

History of Decision making

Decision making is very important and hold a great value in todays
business environment.
 Leaders and managers who have taken bold decision turn out fruitful
and there are different examples in the past. (Table 4.1 in book)
 Information and Decision making

Information and decision making

 Decision making a process of identifying problem or opportunity.
 Understanding the context in which the problem or opportunity occurs.
 Generating alternative solutions to tackle the problem
 Taking advantage of opportunity
 Making a choice among many alternatives.
 Information is required a each stage.
 Without information its not possible to identify problem or opportunity,
generate alternative and take advantage of opportunity.
Simon’s Model of Decision making

Proficiency of
skills and
knowledge
Insufficient data

Concentration to
focus
No Satisfactory
Solution

Cooperation for
team work
 Simon’s Model

Intelligence : Deal with problem identification and the data collection on

the problem.

Design : Deal with generation of alternative solutions to the problem at

hand.

Choice : Selecting the best solution from among the alternative solutions
 Kahneman and Tversky’s Model of Decision
making
 It is theory of taking decision under risk, where real life choices are
modelled rather than optimal ones.
 Decision making is done in two stages.
 In first stage possible outcomes of a decision are listed in order of priority,
based on some heuristic
 A reference point is then selected.
 All point below reference is selected as loss and above as gains.
 Evaluation is then done and decision makers then choose alternative for
maximizing their value.
 Decision making and the human brain

 The central nerves system of our body consist of the brain and the spinal
cord.
 Together they control most of our basic functions like movements, speech,
cognition, vision, etc
 Human brain is made up of nerve cells called neurons.
 There are about 50 – 100 billion neurons present in an average human
brain that weight about 1.5 kg.
The brain is considered to consist of three main constituents.
 The forebrain.
 The hindbrain
 The limbic system
 Human Brain

The forebrain : The cerebrum or cortex is the largest part of the brain and
is responsible for thoughts and actions. It is divided into four parts.
The frontal lobe: responsible for logical reasoning, emotions, planning,
some types of movement, part of speech, empathy, problem solving
judgement, and impulse control.

It is fully developed when we are young adults. It also manages our higher
emotions.
Parietal lobe : responsible for some types of movement, recognition,
orientation, perception of stimuli like pain, touch, speech, and cognition.

Occipital lobe: responsible for vision

Temporal Lobe: responsible for perception and recognition of auditory

stimuli, memory and speech.
 Fore Brain

– The cerebral cortex is symmetric with two parts called the left and right
hemispheres.
– Both are connected by a bundle of cells called the corpus callosum.
– The cerebral cortex is folded such that it allows a large surface area to
fit within the skull.
– The right hemisphere is considered to be responsible for artistic, spatial,
and musical qualities and the left for rational and verbal qualities
 The Hind Brain

For basic instincts of survival, mating, dominance etc. It consist of

Spinal cord:
• Responsible for transmitting the instructions of the brain to other body parts

The medulla oblongata:

• Involuntary actions like respiration, digestion and heart rate.

The pons:
• For sleep.

The cerebellum:
• Regulation and coordination of movement, posture and balance.
 The limbic system

• Also called emotional brain as emotions and memory are associated with
this structure.
• It is also associated with unconscious value judgement, creativity etc.
The amygdala: classifying emotionally charged memories. Responsible for
emotion fear and is considered to trigger responses such as sweaty palms,
increased heartbeat and stress hormone release.
The hippocampus: memory
The hypothalamus: involuntary actions of body.
The Thalamus: relay of nerve system.

Its clear from study of brain that different areas of brain are responsible for
different functions and decision making of body parts
 Structured versus unstructured Decisions.

• In structured decision making outcomes are well known and structured.

• In unstructured the outcomes are not known. Information about decision
making process is not known.
• These decision are complex. Example is of strategic decision making.

Bounded rationality: Decision are bounded and bounded by following

limitations.
Information: Lack of information control the decision of the decision makers.
Intellectual Ability / Cognitive Ability: The problem is so complex that the
decision maker is not to comprehend the true nature of problem. This creates a
boundary as well.
Lack of time to take decision: The decision maker does not have time to
evaluate all the outcomes.
 Tools and techniques of decision making

Decision making under risk:

Decision Tree;
Node represent the decision possibility
Branch defines the possible outcome. Either yes or no.
Involve Probability
T

T
A
 Tools and techniques of decision making

• Decision – making under uncertainty:

Laplace criteria:
Crop Heavy rainfall Low rainfall Expected payoff
(.5*H + .5*L) / 2
Wheat 50 30 40
Rice 60 10 35
Bajra 20 30 25
 Tools and techniques of decision making

Qualitative tools of decision making

Some of the qualitative tools of decision making are
• Pareto Analysis
• Force field analysis
• Six thinking hats technique
• Paired comparison analysis
• Plus minus implication
 Types of decision

Level of programmability:
• Programmable decision are easy. Outcomes are known.
• If the outcomes are not known then its difficult to take decision.

Purpose of decision making:

• Decision making depends upon purpose of decision.
• If the purpose is sensitive and bears more value then decision maker will be
careful.

Knowledge of outcomes:
• If the outcome is not known then decision making is difficult.
• If the outcomes are known then decision making is easy.
• If the outcomes are not known then decision making depends upon the
expertise of the decision maker.
Management Information Systems
(CSC373)
 Information Systems in Organizations

Introduction
 Management in an organization require planning, organizing, controlling,
and leading.
 For above a proper information is required that is met by a set of
information system working in a synchronized manner, which is
collectively called Management Information System.

Information system: Definition and Characteristics.

The role of information in enhancing the competitiveness of an
organization has been known in management circles for quite some time
now.
Information system:
 Information systems are a special class of systems whose main
objective is to store, retrieve and process, communicate and secure
data.
 Information Systems in Organizations

 Information systems which help management at different levels to take

suitable decisions are called management information system.
 Typically information systems are housed in a computerized
environment/platform to enable users to get a faster and accurate
information.
Information system over the years:

 Initially systems were designed to perform a specific task.

 The objective here in this king of system is to perform task as quickly as
possible with the minimum number of errors.
 Over the years information system have changed.
 Presently the focus is on providing the right information at right time to
right person.
 Information system have become more accurate, faster and user
friendly.
 Information Systems in Organizations

Subsystems of an information system

Data repository:
 This is a subsystem which is at a core of any information system.
 This is a relational database management system.
 It has pre-formatted and structured tables for storage of data.
 These structures are arranged in a way that helps in faster storage and retrieval of
such data with adequate security.

User Interface:
 This subsystem handles the interaction of the system with the user (Human).
Network:
 Communication between the different entities of an information system.
Computer hardware:
 Hardware.
System software:
 Used for effective use of computer hardware.
 System software used for enabling information system.
 Information Systems in Organizations

Input / Output
 This is clubbed with the user interface.

Business Rule (Process):

 This is a set of rules that governs how a system should function to
mimic the real business process.

Algorithm/ Program/ Application software:

 This is the invisible components component that integrate all the
components.
 The logic (business rule) is defined in the program ( embedded in it)
which enables the functioning of the information system for some
specific purpose.
 Information Systems in Organizations

Information System

User Interface
Hardware I/O
Data
Depository
Network
System
software

Application
Business Process
Software
 Information system in Organizations

Electronic Data Processing:

 These were the earlier class of business information system.
 Involved with processing of large volume of business related data with
clear set of rules and operations.
 The focus is on more use of information rather than processing of data
to generate information.
 EDP are inflexible and adhere to strict rules and procedures.
 The role of such system is to make clerical work faster and accurate.
 Applications like payroll preparation are ideal for such processing.

EDP Background
 In 60’s and 70’s the emphasis was on to process huge volumes of data
in a pre defined manner using set rules and procedures to produce
output.
 Information system in Organizations

EDP Background
 These systems were called electronic data processing and the primary
task were to improve productivity.
 The modern concept of MIS is that MIS should provide crucial
information and insight to improve the quality of decision making of
managers.
The EDP Tasks:
 Recording Data is saved in proper format
 Sorting: Merging and sequencing
 Analysing: Analysing the data
 Retrieving: Culling out information from huge data repositories.
 Reproducing: Generating the stored information again and again.
 Visualizing: Providing information in a visually stimulating manner.
 Information system in Organizations

EDP Definitions and Characteristics

 EDP is a term used to define a set of activities that results in the processing
of data mostly commercial in an electronic medium not necessarily for
decision making purposes.
 The preparation of salary of each employee.

Characteristics of EDP:
 Information systems are EDP’s when they work on single process e.g check
processing
 Decision making utility is very low
 Focus of the system if primarily on efficient data processing rather than using
the data.
 EDP is a low-end system with very little complexity.
 EDP is repetitive
 Complexity is low as compared to MIS
 Information system in Organizations

Information System in Organization – Maturity Model:

Changing organizations takes time and hence, organizations pass through
stages of maturity in dealing with information systems.
Nolan’s Six-stage Model:
The stages are:
Initiation : Focus on cost reduction and only specialized applications are
run with specialized staff.
Expansion: Application increase rapidly. Specialization of staff and
application is the order of the day. Management begin to take note of the
new way of doing things.
Formalization: Emphasis is on control and specialization is built around
control. Management control information system.
Maturity: database oriented application proliferate. Information is used as
a resource.
 Information system in Organizations

Nolan’s Six Stages growth Model

I II III
INITIATION CONTAGION CONTROL
 Users are hand off in  Proliferation of application  IT/IS is considered as an
approach  Little management control important function.
 Extensive IT/IS planning  Huge allocation of  Centralized controls are
 Cost reduction primary financial resources applied for IT/IS.
focus  Rapid growth of  No reduction in IT/IS use.
 Functional application is in fundamental use of IT.  Applications are often
focus.  IS/IT performance below incompatible.
 MIS dept/IS dept is not importation and several  Unhappy users
under strict management crisis occur  Use of database but with
control unsatisfactory outcomes.
 Information system in Organizations

Nolan’s Six Stages growth Model

IV V VI
INTEGRATION DATA ADMINISTRATION MATURITY
 Greater use of database  Data in Administration  IT/IS dept becomes
 Greater IT/IS budget.  Applications are in sync partners of users in data
 IT/IS dept now works on a with the organization. management.
professional utility model.  Shift from IT/IS booking  Application reflects real
 Formal planning and after DP to holistic in information needs.
control within IT/IS dept. formation management.  Strategic planning of IT/IS
 Steering committees are become important.
widely used for  Managers of IT/IS dept
application development. considered at par with
other dept.
 Information system in organizations

INITIATION

CONTAGION

CONTROL

INTEGRATION

DATA ADMINISTRATION

MATURITY
 Information system in organizations

Information System and Information and Communication Technology

 Timeliness
 Accuracy
Framework for Understanding MIS: Robert Anthony’s Hierarchy of
Management Activity:
Anthony focused on the managerial aspect of an organization and
classified the management process into three levels.
Strategic: Goals of organization and set direction where firm travel.
Managerial: Resources used effectively and efficiently
Operational: routine work
Information system in organizations

Management Levels in Organization

Strategic Planning

Management Control

Operational Control
 Information system in organizations

Management Strategic Planning Management Control Operational Control

Function

Planning Long range, high impact Medium range, medium Short range, low
impact impact

Organizing General framework Departmental level Small unit level

Staffing Key senior people Medium level, tactical Operational level

level

Directing General and long range Tactics Routine activities

directives

Controlling Aggregate level Periodic control and Regular and

controlling exceptions Continuous
supervision
 Information system in organizations

Information requirement and levels of management

Organizations are investing in acquiring the latest management information system
tools like
 ERP (Enterprise resource Planning)
 CRM (Customer relationship management)
 KM (Knowledge management)
 BI (Business Intelligence)
 DW (Data warehouse)
 Information system in organizations

Information needs for the Different Levels of Management

Level of Management Problems handled/ decisions made Type of information required
Top Level  Unstructured problems • Strategic information from
 Decisions are based on situations within the organization
not/ rarely handled in the past. and outside
 Decision–making variable not • Information about likely
clearly defined scenarios. Information that
can be analysed in
different ways
• Exception reports
Middle Level  Semi structured/ structured • Regular summarized
problems reports
 Decisions on regular issues • Information that can be
 Decisions on tactical issues. drilled deeper for insight
• Information to help find
out exception so that they
can be reported to top
management.
Operational Level  Structured problems • Operational information
 Structured decision making • Rule based information,
 Decision making on the basis of guidelines, handbook level
 Information system in organizations

Information Management
Information is a resource and is very much valuable to an organization.

Why a manager needs MIS

At different functions of management information is required to managers.

Role of CIO
• Ensuring that MIS is managed properly
• Create Security policy
• Limits the access of employees
• Interpersonal skills
• Technical skills
 Information system in organizations

What type of information systems do organizations use

• Office Automation system

• Transaction Processing system
• Decision support system
• Executive system
• Business Expert system
 MIS

Decision Support system

Strategic
Executive support system
Unstructured decision

Business expert system

Communication

Information (Decision)

Tactical Information (Reporting) Transaction

processing
system

Office
automation
operational system
 Information systems in organizations

Information Technology
 Recording Data is saved in proper format
 Sorting: Merging and sequencing
 Analysing: Analysing the data
 Retrieving: Culling out information from huge data repositories.
 Reproducing: Generating the stored information again and again.
 Visualizing: Providing information in a visually stimulating manner.
Scope of IT in organization is about
• IT platform which is hardware or software of organization
• Ability of organization’s IT platform to reach information
• The ability of IT platform to provide managers with information.
 Information systems in organizations

Management Information System and Concept

Information system is used for taking decision from simple to complex. These systems
are collection of subsystem viewed as a single system to user for use. The decisions
taken by information system differs in the following degree.
• Complexity
• Information requirement for taking the decision
• Relevance
• Effect on the organization
• Degree of structured behaviour of the decision making process

All these require different type of information as without information one cannot
decide.
Information system: which supply the relevant information to managers to enable
them to take decision are collectively termed as management information system.
 Information systems in organizations

MIS functions
• To improve decision making
• To improve efficiency
• To provide connectivity

Characteristics of MIS
• Management oriented: MIS is top down. Depends upon management need at
different level
• Management directed: The system is structured as per direction by management.
• Integrated: integrated with all operational and functional activities of management.
• Common data flow: data flow
• Strategic planning: Very high degree of planning is required
• Bias towards centralization: latest information at every place.
 Information systems in organizations
• Information and communication technology enabled: Timely information helps in
proper decision making.

Benefits of Information system:

• Increases productivity
• Enhances the quality of decision making
• Improves communication and helps develop team work
• Facilitates organizational transformation

Limitations of MIS
• MIS depend upon design. If it is designed good it work good.
• Depends upon how it is used.
• MIS not good if basic data is obsolete
 Information systems in organizations

Problems in implementing MIS:

• Resistance to change
• The degree of MIS driven change in departmental boundaries.
• Lack of organizational culture supporting MIS
• The degree of employee involvement in the MIS system.
• The degree of employee involvement in the implementation of change along with
MIS is a major issues.
• The degree of MIS driven change in the informal system.
 Information systems in organizations

Management reports:
• Scheduled reports: regularly generated reports.
• On demand reports:
• Exception reports: special reports generated under some special control.
• Predictive reports: preview of future.
• Summary reports: summary.
• Regulatory and statutory reports: rules and statues.
 Information systems in organizations

MIS Department in an organization:

• It is a separate department under CIO.
The role of MIS Dept is to
• Create the MIS in consultation with the users.
• Managing the data.
• Managing the MIS.

Role of top level management:

Components of MIS:
• Physical ICT infrastructure: Infrastructure of MIS
• System Software:
• MIS application:
• Data Repository:
MIS services Staff: Heavy dependent on this for trouble shooting and system management.
Information oriented managerial staff: Users are component of MIS
• Progressive leadership : without system cannot succeed.
 MIS dept in organization
Manages Data
Manage MIS Department
Creation MIS
Role Structure

Operations
IS
M Manages ICT
Infrastructure
Support
Human and Finance
resource Interaction

Marketing
Management Information Systems
(CSC373)
 System Concept and Approach

Introduction
 Business system in general and information system in particular have
become a major area of study and development.
 With ever increasing competition and changing market place, managers
depends more and more on their systems for decision making.

The systems approach: Concept and origin.

The system approach is an old approach that deals with breaking down of
complex concept into a simple easy to understand unit helps in better
understanding of the complexity. Major concepts of the system approach
are
Holism: A change in any part/ component of a system affects the whole
system directly or indirectly.
 System Concept and Approach

Specialization: A whole system can be divided into granular (smaller

easy to understand) components so that the specialized role of each
component is appreciated.
Non-summational: Every component (subsystem/partial system ) is of
importance to the whole. It is therefore essential to understand the function
of each component to get the holistic perspective.
Grouping: The process of specialization can create its own complexity by
proliferating components with increasing specialization. To avoid this it
become necessary to group related discipline or subdiscipline .
Coordination: The grouped components and sub components need
coordination. Without coordination the components will not be able to work
in a concerted manner and will lead to chaos.
Emergent properties: means that group of interrelated entities
(components) have properties as a group that are not present in any
individual components. This is holistic view of a system.
 System Concept and Approach

Basic Systems Concepts

 System deals with storage, processing, and delivery of information.
 Above mentioned is of special significance to business and is called
information system.
 Management is taking decisions with this information system.
What is system: System can be defined as set of interacting entities with
interrelationship / interconnections amongst each other forming an
integrated whole.
 System has an input and output
 System can be white box (clear understanding of its working) or black
box (working not known to user).
 The boundary of the system is the imaginary line separating the domain
of the system from that of the environment. It is more of an abstract
concept rather than a physical one. However in some cases the
boundaries can also be physical.
 System Concept and Approach

Some basic system ideas:

Emergent properties: means that system has a set of properties when
working collectively as a whole system, which are not present in any of the
entities that make up the system.
(example of black box)

Hierarchy: Subsystem

Communication: The ability of the interrelated subsystems and entities

that make up the system to interact with each other.

Control: Regulate the system. Create a stable system so that output

remains within the desired limits.
 System Concept and Approach

Characteristics of a system:
 Systems have a specific structure which is defined by its components
(entities / subsystems) and processes (interrelationship between its
components.
 A system is a collection of interrelated entities and or sub system which
can be analysed.
 Systems are a model of reality : it is created to solve the problems of
real world conditions.
 A system has a purpose: A system perform a function. The purpose in
most cases is the output.
 Systems have input and outputs: outputs are produced by processing
inputs.
 Systems have performance that can be measured in term of output.
 System Concept and Approach

Characteristics of a system:
 A system serve as client
 The systems has interrelationship with each other.
 A system has an environment.
 Each subsystem also has a purpose and measure of purpose.
 System Concept and Approach

System and Control:

 A control is necessary and is there to measure the performance of the
system. There are things that are required for effective control.
A control variable is the variable whose value determine the degree of
performance of the system.

A detector is to monitor the output of the system by measuring the control

variable parameter.

A comparator is to compare the actual and planned output of the system.

An effecter is to make suitable changes.

 System Concept and Approach

Types of control:
 Feedback control: in a system when an output is used to directly alter the
inputs we call that as a feedback control.
 Positive feedback is when an output is positively corelated with input.
 Negative feedback is the relationship between the output and input is negative.

 Controlling the speed of car at 60km / h

Feedforward control:
 To address the problem of system oscillation
 In this type of control the control is exercised after predicting the output.
 If it is predicted that control is required before occurring of event then it is
excised before.
 Intelligent brake system. cruse
 System Concept and Approach

Types of systems:
 Closed system : a system is said to be closed if it does not interact with
environment.
 State of isolation
 Open system : a system is said to be open if it with environment. It
changes the input and output.
Deterministic system: where output is fully predictable and known.
Probabilistic: output is according to probability value. Stock market.
Random: completely unpredictable. Transport system.

Human, machine and human-machine system

A human system consist of humans as component. It is open
A machine system entirely consist of machine and it is closed.
A system that consist of human and machine is human-machine system.
(probabilistic systems are example of human machine)
 System Concept and Approach

Abstract and concrete Systems:

An abstract system is an ordered arrangement of concepts. It is
procedural.
Concrete system are where there are two components are objects. Its can
be physical or social.

Adaptive and non adaptive systems:

A system is said to be adaptative if it modifies itself with the changes in its
environment (a democratic system of government accommodates the
changes in the environment) .
A non adaptative system does not react with changes in environment. An
autocratic system of government is an example.
 System Concept and Approach

Simple and complex system:

Simple system is one in which there are few interrelated entities. Where
as complex is one where we have more entities.
Cycle Simple
Motor Cycle Complex
 System Concept and Approach

Applying the systems approach to Problem Solving:

System approach is widely used in problem solving
 Defining the problem.
 Developing alternate solution.
 Selecting a solution.
 Designing the solution.
 Implementing the solution.
 Reviewing the Solution.
 System Concept and Approach

Simplifying a system or applying systems approach for problem

solving:
Above is done in two stages.
Partitioning the system into black boxes: Black boxes need limited
knowledge to be constructed. One only needs to know input and output.
Black box partitioning helps in the comprehension of the system, as the
entire system gets broken down into granular functionalities.

Organizing the black box into Hierarchies: so that the relationship

among the black boxes is easily established. Once hierarchy is
established, the system become easier to understand as the internal
working of the system become clearer.