AN OFFERING AT HIS LOTUS FEET
TOPIC OF PRESENTATION:
MANAGEMENT INFORMATION SYSTEMS
PRESENTED BY BODY-GUARDS:
R. CHARAN TEJA ABHIJAY SITOKE ROHITH SHETTY ADITYA UPADHYAY HARISH. C
AGENDA
BASIC COMPONENTS OF MIS & MANAGEMENT SCIENCE. FEATURES AND IMPORTANCE OF MANAGEMENT WITH RESPECT TO MIS. CONCEPTUAL ANALYSIS OF MIS. LEVELS OF MANAGEMENT AND MIS. ROLE AND EFFECT OF COMPUTERS IN MIS. ROLE OF ERP IN MIS.
MISCONCEPTIONS ABOUT MIS
1. 2. 3. 4. 5. 6. Any computer-based Info. System is an MIS. Any reporting system is an MIS. MIS is a philosophy and any specific entity. MIS is a management technique. MIS is a bunch of technologies. MIS is a course on file structures.
What is MIS
Information Systems components
Hardware desktops, laptops Software operating systems, application programs Data facts and figures entered into computers Procedures how the other four components are used People users, technologists
Management Information Systems
Management information systems focuses on designing and implementing computer-based information systems for business organizations. An MIS provides managers with information and support for effective decision making, and provides feedback on daily operations.
Output, or reports, are usually generated through accumulation of transaction processing data. Each MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization.
A management information system
A management information system (MIS) is a tool that provide information to support management and decision making. Management information is an important input at every level in the organization /e.g. for planning, implementation, monitoring and controlling. The system utilizes computers, manual procedures/ guidelines/ and a database.
A management information system
Good MIS system should meet the following five elements timeliness, accuracy, consistency, completeness, and relevance. Timeliness:- MIS should be capable of providing and distributing current information to appropriate users. Information systems should be designed to speed up reporting. Accuracy:- A sound system of automated and manual internal controls /quality control/ must exist throughout all information processing. /there should be a clear quality assurance methodology and trained quality control staffs.
A management information system
Consistency :- Data should be processed and compiled consistently and uniformly at all level. Variations in data collection and reporting method can distort information. Completeness:- Decision makers need complete and pertinent information in a summarized form. Relevance:-Information provided to management must be relevant.
Problem Solving Approaches
Managers tend to use a Managers tend to qualitative approach use a quantitative to problem solving approach when 1.The problem is when
1.The problem is fairly simple. 2.The problem is familiar. 3.The costs involved are not great.
complex. 2.The problem is not familiar. 3.The costs involved are substantial. 4.Enough time is available to analyze the problem
Quantitative Approach
It includes the application of statistics, optimization models, information models and computer simulations. More specifically, this approach focuses on achieving organizational effectiveness. Three main branches:
Management Science Operations Management and Management Information Systems.
Management Science
It stresses the use of mathematical models and statistical methods for decision-making. Another name is the Operations Research, quantitative management.
The Importance of Management Science
Management science The discipline of applying advanced analytical methods to help make better decisions. Devoted to solving managerial-type problems using quantitative models Applications of management science Forecasting, capital budgeting, portfolio analysis, capacity planning, scheduling, marketing, inventory management, project management, and production planning.
Operations Management
It deals with the effective management
of the production process and the
timely delivery of an organizations
products and services.
Advantages of the Quantitative Approach Directs attention to the essence of an analysis: to solve a specific problem. Improves planning which helps prevent future problems Results in more objective decisions than purely qualitative analysis. Incorporates advances in computational technologies to managerial problem-solving.
FEATURES OF MIS
Management oriented: need not be top level management only. Management directed: management needs to constantly direct MIS. Integrated: information system has the potential of generating meaningful and comprehensive information for the management. Common data flows: simplifies operations and procedures.
Meticulous planning.
Existence of subsystems: MIS can be broken into various subsystems. Common database: avoids duplication in data storage, updating and protection.
Computerised: increases the efficiency of the firm.
IMPORTANCE OF MIS
Real time updates on the happenings in an organisation. Saves time and resources. People can access reports, thus, making operations accountable. Transparency.(cant manipulate computer info.) Decision making requires past data and MIS comes in handy. Huge contributing factor in getting viable information. Increased use of systems and hence, lesser subjectivity.
CONCEPTUAL ANALYSIS OF MIS
MIS comprises of : Management Information, and System.
MANAGEMENT
Practice of consciously and continuously shaping an organisation. It consists of :
Planning, Organising, Leading, and Controlling.
Three levels of management are strategic, tactical, and operational.
INFORMATION
Data that have been organised into a meaningful and useful context. It is the substance on which business decisions are based. Three broad categories of information:
Environmental, Competitive, and Internal.
INFORMATION
Timeliness Purpose Completeness Reliability Cost-benefit analysis
Validity Quality Redundancy Rate Frequency
SYSTEMS
Composite entity consisting of a number of elements which are inter-dependent, interacting and operating together for the accomplishment of an objective. Business is also a system where economic resources such as people, money, material, machine, etc., are transferred by various organisation processes into goods and services.
ROLE AND EFFECT OF COMPUTERS IN MIS
COMPUTERS AND MIS
COMPUTERS IN MIS
Myth:- computer systems and information systems are synonymous. Fact :- They are 2 disciplines that overlap each other, yet have an independent existence.
EVOLUTION OF COMPUTERS & MIS
Till 50s: Computers mainly scientific calculators. Now: commercial applications more than scientific applications. 50s and 60s : organisations realised power of computers to process large amount of data.
Speed and accuracy. Focus on efficiency.
Electronic Data Processing.
A System/370 Model 145 (1970s)
Hard drives
REMOVABLE-DISK HARD DRIVES
Printer
800 lines/minute with 48 character train, 136 columns with 6 or 8 lines per inch spacing
Stack of Computer Printout Paper
EVOLUTION OF COMPUTERS & MIS
70s: Digital computers underwent fundamental change. Focus on analysis of corporate data. Relevance, analysis and insight. Emphasis on effectiveness. Management Information Systems.
Stress on Information.
EVOLUTION OF COMPUTERS & MIS
80s: Personal Computer new breed of managers hooked to PC. Decision Support System. Advantages of PC: Direct end-user involvement. Steady performance. User friendly. Immediate results. Function oriented software. Flexible access to data.
EVOLUTION OF COMPUTERS & MIS
90s and 2000s: Knowledge Based Systems. Executive Information Systems. Man-Machine Interface: Natural language Interface. Voice Interface. Multimedia Interface.
EFFECT OF COMPUTERS IN MIS
Speed of processing and retrieval of data increases. Scope of use of information system has expanded. Scope of analysis widened. Complexity of system design and operation increased. Integrates working of different information subsystems. Increases effectiveness of Information Systems. More comprehensive information.
LEVELS OF MANAGEMENT IN MIS
Management Levels
High level (strategic)
Long-range view Planning
Middle level (tactical)
Carry out the plan
Assemble the material Hire the resources
Low level (operational)
Supervisor Directing and controlling
LEVELS OF MANAGEMENT
Strategic level: Set of management positions that is concerned with developing of org. missions, objectives and strategies, directing and managing the org. in an integrated manner. Decisions made to handle problems critical to success and survival of org. are called strategic decisions. establishes a framework under which departments will operate.
Tactical level : This level lies in the middle of managerial hierarchy. Managers plan, organize, lead and control the activities of other managers. Tactical decisions are made to implement strategic decisions. Relatively short, step-like spot solutions to breakdown strategic decisions into implementable packages.
Supervisory level: Lowest level in managerial hierarchy. Managers responsible for day to day decisions, routine and activities which do not require much judgement and discretion. Ensure specific tasks are carried out efficiently.
Management Levels
Flattening the pyramid
Management Levels Interaction Among Employees
Traditional hierarchy
High level manager issues directives to a group of middle level managers Each middle level manager issues directives to a group of low level managers Each low level manager supervises other employees to see that the work is completed
Management Levels Interaction Among Employees
Modern Hierarchy
Dispersion of information via network
E-mail Groupware
Authority and work of managers has been altered Promotes sharing of information Decisions that were once management are now open for comment and change Supports team-based and information-driven organization
Production
Finance
Personnel
Marketing
Strategic
New plant location
Alternative financing
Welfare policy Competitor survey
Tactical
Production bottle-neck
Variance analysis
Performance appraisal
Advertising
Operational
Daily Scheduling
Pay-Roll
Leave Records Sales analysis
A Typical Management Information System
ENTERPRISE RESOURCE PLANNING (ERP)
ERP - Definition
ERP is a process of managing all resources and their use in the entire enterprise in a coordinated manner
ERP system: Definition
ERP is a set of integrated business applications, or modules which carry out common business functions such as general ledger, accounting, or order management
What is ERP?
Enterprise Resource Planning Support business through optimizing, maintaining, and tracking business functions Broken down into business processes
HRM Distribution Financials Manufacturing
What makes ERP different
Common definitions Common database Update one module, automatically updates others ERP systems reflect a specific way of doing business Must look at your value chains, rather than functions
Benefits of ERP
Common set of data Help in integrating applications for decision making and planning Allow departments to talk to each other Easy to integrate by using processed built into ERP software
Vendors
Difficulty in implementation
Very difficult Extremely costly and time intensive Typical: over $10,000,000 and over a year to implement Company may implement only certain modules of entire ERP system You will need an outside consultant
Common Pitfalls
Do not adequately benchmark current state Did not plan for major transformation Did not have executive sponsorship Did not adequately map out goals and objectives Highly customized systems to look like old MRP systems
Survey of ERP implementations
Overview
375 IT and business professionals 52% anticipate budget increases for new ERP implementations/new modules SAP and PeopleSoft/J.D. Edwards were cited as the most popular ERP packages 46% indicated that the main challenge to successful ERP implementations was inadequate definition of requirements and resistance to change
Who is directly responsible for determining your ERP implementations/new modules deployments?
Who are the other key decision-makers/influencers in decisions to add new ERP packages/new modules?
Do you currently have an ERP package?
If your answer is "Yes", which ERP package(s) do you currently use?
Are you considering adding new modules to your existing ERP package?
If your answer is "Yes", which modules are you planning to add?
What do you see as the main challenges to successful ERP implementations within your organization?
THANK YOU JAI SAI RAM
