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Chapter I
Organization
Introduction & Meaning of Organization
Organization generally knows like an institution, business entity (excluding sole proprietorship busi-
ness). A organized group of people with a particular purpose, such as a business or government department
known as Organization.
Each & Every business in which group of people are included is an part of Organization, where all peo-
ple comes together & take efforts to achieve the common goal which is Making Profit or complete any particu-
lar task.
OR
The institution or business in which planning, coordination, implementation & controlling of work
is done by group of people with the help of proper administration is called as organization.
Organizing: After a plan is in place, a manager needs to organize her team and materials according to
her plan. Assigning work and granting authority are two important elements of organizing.
Staffing: After a manager discerns his area's needs, he may decide to beef up his staffing by recruiting,
selecting, training, and developing employees. A manager in a large organization often works with the
company's human resources department to accomplish this goal.
Leading: A manager needs to do more than just plan, organize, and staff her team to achieve a goal.
She must also lead. Leading involves motivating, communicating, guiding, and encouraging. It requires
the manager to coach, assist, and problem solve with employees.
Controlling: After the other elements are in place, a manager's job is not finished. He needs to con-
tinuously check results against goals and take any corrective actions necessary to make sure that his ar-
ea's plans remain on track.
Decision Making
In organization for continuing business managers having a right to take decisions & implement the work
according it.
Decision means choice made between alternative courses of action in a situation
of uncertainty.
Managers are constantly called upon to make decisions in order to solve problems. Decision
making and problem solving are ongoing processes of evaluating situations or problems, considering
alternatives, making choices, and following them up with the necessary actions. Sometimes the decisionmaking
process is extremely short, and mental reflection is essentially instantaneous. In other situations, the process can
drag on for weeks or even months. The entire decisionmaking process is dependent upon the right information
being available to the right people at the right times.
Decision making is a daily activity for any human being. There is no exception about that. When it
comes to business organizations, decision making is a habit and a process as well. Effective and successful de-
cisions make profit to the company and unsuccessful ones make losses. Therefore, corporate decision making
process is the most critical process in any organization.
In the decision making process, manager choose one course of action from a few possible alternatives.
In the process of decision making, manager may use many tools, techniques and perceptions.
OR
Decision making is a process of choosing among alternative courses of action for the purpose of at-
taining/ achieving Common goal/ goals.
OR
Decision making is process of identifying problems and opportunities and resolving them.
Sometime manager may make our own private decisions or may prefer a collective decision. Usually,
decision making is hard. Majority of corporate decisions involve some level of dissatisfaction or conflict with
another party. Manager takes a decision with following some steps / process which is also called as Decision
making Process/ Decision making life cycle.
Revise
Information Collection
/Gathering
Evaluation of Alternatives
Select Alternatives
Revise
Implement Decision
Revise
Evaluation & Control
TYPES OF DECISIONS:
1) PROGRAMMED DECISIONS:
A routine or repetitive decision that can be handled by established business rules or procedures.
These types of decisions are often called for at certain points in a standard process, and are decided based
on recognized and easily identifiable factors. Programmed decisions typically do not require
much consideration or discussion, and can generally be automated to ensure consistency and save time for
decision-makers.
Chapter II
Information System
Introduction of Data:-
"Data" comes from a singular Latin word, datum, which originally meant
"something given." Its early usage dates back to the 1600s. Over time "data" has become
the plural of datum.
Data is raw, unorganized facts that need to be processed. Data can be something simple
and seemingly random and useless until it is organized.
Meaning of Data:-
Data are simply facts or figures bits of information, but not information itself. When
data are processed, interpreted, organized, structured or presented so as to make them
meaningful or useful, they are called information. Information provides context for data.
OR
Data is unprocessed facts and figures. Plain collected data, as raw facts cannot help in
decision making. However, data is the raw material that is organized, structured and interpreted
to create useful information systems.
Data is defined as 'groups of nonrandom symbols in the form of text, images, voice
representing quantities, action and objects
For example: - A list of dates data is meaningless without the information
that makes the dates relevant (dates of holiday).
Data" and "information" are intricately tied together, whether one is recognizing them as
two separate words or using them interchangeably, as is common today. Whether they are used
interchangeably depends somewhat on the usage of "data"
Introduction of Information:-
Information is a meaningful data (facts) Societies mainly depend on the information &
it support to achieve desired objectives like Planning, organizing, decision making, & other.
"Information" is an older word that dates back to the 1300s and has Old French and
Middle English origins. It has always referred to "the act of informing, usually in regard
to education, instruction, or other knowledge communication.
Meaning of Information:-
When data is processed, organized, structured or presented in a given context so as to
make it useful, it is called information.
OR
Information is interpreted data; created from organized, structured and processed data in
a particular context.
OR
Information is a data that has been processed into a form that is meaningful to
recipient and is of real or perceived value in the current or the prospective action or decision of
recipient
E.g. The average score of a class or of the entire school is information that can be
derived from the given data.
Information can be classified in a number of ways; this tutorial will give two of the most
important ways to classify information:
Classification by Characteristic:-
Based on Anthony's classification of Management, information used in business for
decision making is generally categorized into three types:
Strategic Information:-
Strategic information is concerned with long term policy decisions that defines the
objectives of a business and checks how well these objectives are met.
E.g. Acquiring a new plant, a new product, diversification of business etc.
Tactical Information:-
Tactical information is concerned with the information needed for exercising control
over business resources & used for medium /short term planning by the Middle Management
like budgeting, Quality control, service level, inventory level, productivity level etc.
Operational Information-:
Operational information is concerned with plant/business level information and is used to
ensure proper conduction of specific operational tasks as planned/intended. Various operator
specific, machine specific and shift specific jobs for quality control checks comes under this
category.
Classification by Application:-
In terms of applications, information can be categorized as:
Planning Information-
It covers the whole organization & having a longer span & looks for & analyses
trends/patterns. & it is used for working futuristic trends/forecasts.
These are information needed for establishing standard norms and specifications in
an organization. This information is used in strategic, tactical and operation planning of any
activity.
E.g. Time standards, Design standards.
Control Information:-
It concerns with small specific part of the organization. & It has a shorter time
span. It looks for specific details for functional activity & used for assessing actual performance
vis--vis budgeted.
This information is needed for establishing control over all business activities
through feedback mechanism. This information is used for controlling attainment, nature and
utilization important processes in a system. When such information reflects a deviation from the
established standards, the system should induce a decision or an action leading to control.
Knowledge Information:-
Knowledge is defined as "information about information". Knowledge
information is acquired through experience and learning and collected from archival data and
research studies.
Organizational Information:-
Organizational information deals with an organization's environment, culture in
the light of its objectives. Karl Weick's Organizational Information Theory emphasizes that an
organization reduce uncertainty by collecting, managing and using these information prudently.
This information is used by everybody in the organization; examples of such
information are employee and payroll information.
Functional/ Operational Information:-
This is operation specific information. For example, daily schedules in a
manufacturing plant that refers to the detailed assignment of jobs to machines or machines to
operators. In a service oriented business, it would be the duty roster of various personnel. This
information is mostly internal to the organization.
Database Information:-
Database information construes large quantities of information that has multiple
use and application. Such information is stored, retrieved and managed to create databases. For
example, material specification or supplier information is stored for multiple users.
Quality of Information
Information is a vital resource for success of any organization. Future of an organization
lies in using and disseminating information wisely. Good quality information placed in right
context in right time tells us about opportunities and problems well in advance.
What is good quality information? Quality is a value that would vary according to the users and
uses of the information.
Complete - It should meet all the needs in current context. Complete Includes all the user
needs to know about the situation where the information will be used
Unbiased - It should be impartial, free from any bias. In other words it should have
integrity.
Explicit - It should not need any further explanation.
Comparable - It should be of uniform collection, analysis, content, and format.
Reproducible - It could be used by documented methods on the same data set to achieve a
consistent result.
Changing employment scene world over, shifting base from manual agricultural to
machine-based manufacturing and other industry related jobs.
In a nutshell/Short:
Information is needed to survive in the modern competitive world.
Information is needed to create strong information systems and keep these systems up to
date.
Transform these data into business information useful for decision making
The following list summarizes the five main uses of information by businesses
and other organizations:
Planning - at the planning stage information is the most important ingredient in decision
making. Information at planning stage includes that of business resources, assets, liabilities,
plants and machineries, properties, suppliers, customers, competitors, market and market
dynamics, fiscal policy changes of the Government, emerging technologies etc.
Recording - business processing these days involve recording information about each
transaction or event. This is information collected, stored and updated regularly at the
operational level.
Controlling - a business need to set up an information filter, so that only filtered data is
presented to the middle and top management. This ensures efficiency at the operational level
and effectiveness at the tactical and strategic level.
Measuring - a business measures its performance metrics by collecting and analyzing
sales data, cost of manufacturing and profit earned.
Decision-making - MIS is primarily concerned with managerial decision making, theory
of organizational behavior and underlying human behavior in organizational context. Decision-
making information includes the socioeconomic impact of competition, globalization,
democratization and effects of all these factors on organizational structure.
Introduction of System
A set of detailed methods, procedures and routines created to carry out a
specific activity, perform a duty, or solve a problem.
An organized, purposeful structure that consists of interrelated and
interdependent elements (components, entities, factors, members, parts etc.). These elements
continually influence one another (directly or indirectly) to maintain their activity and the
existence of the system, in order to achieve the goal of the system
IS (Information System) is process (handle) the data & Convert it into useful
information through H/W, S/W, telecommunication, DB (Database)
IS or computer systems related to process data and provide required information.
E. g. ATMs, airline reservation systems, course reservation systems
Inform
ation systems use data stored in computer databases to provide needed information. A database
is an organized collection of interrelated data reflecting a major aspect of a firm's activities.
1. Information systems capture data from the organization (internal data) and its environment
(external data).
3. When specific information is needed, the appropriate data items are manipulated as
necessary, and the user receives the resulting information.
4. Depending on the type of information system, the information output may take the form a
query response, decision outcome, expert-system advice, transaction document, or a report.
1. Hardware
2. Software
3. Databases
4. Human resources
5. Procedures
Hardware
Computer processor:
The central processor carries out the instructions of a program, translated into a simple
form.
Memories:
It included in a computer system form a hierarchy. They range from the fast electronic
units, such as the main memory, to the slower secondary storage devices such as magnetic
disks.
Software
Systems Software: Manage the resources of the computer system and simplifies
programming. An operating system is the principal system software. It manages all the
resources of a computer system and provides an interface through which the system's user can
deploy these resources.
Application Software: Are programs that directly assist end users in doing their work.
They are purchased as ready-to-use packages. Applications software directly assists end users in
doing their work.
Databases
Human Resources
End users are the people who use information systems or their information outputs, that
is, the majority of people in today's organizations. The hallmark of the present stage in
organizational computing is the involvement of end users in the development of information
systems. End-user computing, or control of their information systems by end users and the
development of systems by end users, has become an important contributor to information
systems in organizations.
Procedures
Procedures are the policies and methods to be followed in using, operating, and
maintaining an information system. Specifications for the use, operation, and maintenance of
information systems, collected in help facilities, user manuals, operator manuals, and similar
documents, frequently delivered in an electronic form.
A good management information system will only reap the benefits if the companies
gain insight to better align strategies and identify critical relationships and gaps along four key
company dimensions people, process, culture and infrastructure.
The following are the most important reasons to have a good management
information system:
1. Operational excellence
2. New products, services, and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Survival
The emergence of a global economy, transformation of industrial economies,
transformation of the business enterprise, and the emergence of digital firm make information
systems essential in business today. Information system is a foundation for conducting business
today. In many businesses, survival and the ability to achieve strategic business goals is difficult
without extensive use of information technology. There are six reasons or objectives why
businesses use information system:
2. New products, services, and business models. Information system is a major tool for firms
to create new products and services, and also an entirely new business models. A business
model describes how a company produces, delivers, and sells a product or service to create
wealth.
Example: Apple inc. transformed an old business model based on its iPod technology platform
that included iPod, the iTunes music service, and the iphone.
3. Customer/supplier intimacy. When a business serves its customers well, the customers
generally respond by returning and purchasing more. This raises revenue and profits. The more
a business engages its suppliers, the better the suppliers can provide vital inputs. These lower
costs. Example: The Mandarin Oriental in Manhattan and other high-end hotels exemplify the
use of information systems and technology to achieve customer intimacy. They use computers
to keep track of guests' preferences, such as their preferred room temperature, check-in time,
television programs.
4. Improved decision making. Many managers operate in an information bank, never having
the right information at the right time to make an informed decision. These poor outcomes raise
costs and lose customers. Information system made it possible for the managers to use real time
data from the marketplace when making decision. Example: Verizon Corporation uses a Web-
based digital dashboard to provide managers with precise real -time information on customer
complains, network performance.. Using this information managers can immediately allocate
repair resources to affected areas, inform customers of repair efforts and restore service fast.
5. Competitive advantage. When firms achieve one or more of these business objectives(
operational excellence, new products, services, and business models, customer/supplier
intimacy, and improved decision making) chances are they have already achieved a competitive
advantage. Doing things better than your competitors, charging less for superior products, and
responding to customers and suppliers in real time all add up to higher sales, and higher profits.
Example: Toyota Production System focuses on organizing work to eliminate waste, making
continues improvements, TPS is based on what customers have actually ordered.
6. Day to day survival. Business firms invest in information system and technology because
they are necessities of doing business. These necessities are driven by industry level changes.
Example: Citibank introduced the first automatic teller machine to attract customers through
higher service levels, and its competitors rushed to provide ATM's to their customers to keep up
with Citibank. Providing ATMs services to retail banking customers is simply a requirement of
being in and surviving in the retail banking business. Firm turn to information system and
technology to provide the capability to respond to these.
Chapter III
Major Enterprise Information Systems/Applications
isolation. Each and every employee should know what his/her counter-parts are
doing, h o w h i s / h e r a c t i o n s a n d d e c i s i o n s w i l l a f f e c t t h e o t h e r
depart ments. This kind of information sharing was difficult in
t h e e a r l y d a y s . N o w w i t h t h e a d v a n c e m e n t i n Information
Technology this is possible.
IT has a crucial role to play, both at the organizational
level and at the departmental level. At the organizational level, IT should
assist in specifying objectives and strategies of the organization. IT should aid in
developing and supporting systems and procedures to achieve them. At the
departmental level, IT must ensure a smooth flow of information
across departments, and should guide organizations to adopt the most
viable business practices. At this level, IT ensures seamless
flow of information across the different departments and develops and
maintains an enterprise-wide database. This database will eliminate the need of the
isolated data islands that existed in each department and make the organizations
data accessible across the departmental boundaries. The enterprise-wide data
sharing has many benefits like automation of the procedures,
availability of high quality information for better decision making, faster
response time and so on.
The system has work around the core activities of the organization, and
should facilitate seamless flow of information across departmental barriers. Such
as systems can optimally plan and manage all the resources of the organization and
hence, they can be called as Enterprise Resources Planning (ERP) systems.
An Enterprise is a group of people with a common goal, which has
certain resources at its disposal to achieve that goal. The group has some key
functions to perform in order to achieve its goal.
Resources included are money, manpower, material, and all the other
things that are required to run the enterprise.
Linkage between all core business processes and easy flow of integration
Competitive advantage
Use of latest technologies
Scope of ERP
Finance: Financial accounting, Managerial accounting, treasury management,
asset management, budget control, costing and enterprise control
Logistics: Production planning, material management, plant maintenance, project
management, activities and events management etc.
Human resource: Personnel management, training and development etc.
Supply Chain: Inventory control, purchase and order control, supplier scheduling,
planning etc.
Work flow: Integrate the entire organization with the flexible assignment of tasks
and responsibility to locations, position, jobs etc.
Advantages of ERP:-
The successful implementation of an ERP system will have many advantages,
as indicated below:
away with. Because of top down view available to management, chances of theft,
fraud and obsolescence are minimized.
Flexibility and technology: Due to globalized environment, where production
units, distribution centers and corporate offices reside in different countries,
organizations need multi currency, multi language and multi accounting modes, in
an integrated manner. These provisions are available in most of the ERP systems,
particularly in products offered by tier 1 and tier 2 vendors. ERP vendors are also
quick to adopt latest technologies, from mainframe to client server to internet.
Unlike a bespoke system, Upgrading to latest technology for a running ERP system
is uncomplicated, involving mostly adoption of service packs and patches.
Other benefits of ERP system are:-
Direct Benefits
1. Reduce the cost of production and services
2. Lead time reduction
3. Faster production
4. Automated ordering and payment
5. Inventory reduction
Indirect Benefits:-
1. Improve customer response
2. Support strategic planning
3. Uniform and standard reporting accorting to global standards.
4. Save time and efforts in data entry.
5. Can reach more vendors, producing more competitive bids.
6. Access to accurate data
Disadvantage of ERP:
Expense and time in implementation
Need of CRM:
To keep track of all present and future customers
To identify and target the best customers
To let the customers know about the existing new products and services
Features of CRM
going for a new product. More is the possibility to retain customers the more
is the probability of net growth of business.
6. Customer Complaints- Always there exists a challenge for suppliers to deal
with complaints raised by customers. Normally raising a complaint indicates
the act of dissatisfaction of the customer. There can be several reasons for a
customer to launch a complaint. A genuine reason can also exist due to
which the customer is dissatisfied but sometimes complaints are launched
due to some sort of misunderstanding in analyzing and interpreting the
conditions of the deal provided by the supplier regarding any product or
service. Handling these complaints to ultimate satisfaction of the customer is
substantial for any organization and hence it is essential for them to have
predefined set of process in CRM to deal with these complaints and
efficiently resolve it in no time.
7. Customer Service- In an organization Customer Service is the process of
delivering information and services regarding all the products and brands.
Customer satisfaction depends on quality of service provided to him by the
supplier. The organization has not only to elaborate and clarify the details of
the services to be provided to the customer but also to abide with the
conditions as well. If the quality and trend of service go beyond customers
expectation, the organization is supposed to have a good business with
customers.
Scope of CRM
Advantages of CRM
Provide better customer service increased customer revenues
Disadvantages of CRM
Some time record loss is major problem
Overhead costs
1. The Database
1) The Database:-
model or a verbal model. DSS can mane use of different types of models. The
models could be broadly classified into three types as follows
Decision
Support System
a) Behavioural Model:-
The focus of behvioural Model of DSS is on
studying/understanding the behavior and trends among the business variables. The
decision maker can then make decisions giving due regard to such behavioural
relationships. The trend analysis, forecasting and the statistical analysis models
belong to this category. The trend analysis indicates how different variables behave
in trend setting in past & future. A regression model shows relation between one or
more variables. These types of models are largely used in process control,
marketing, psychology, agricultural, sciences, manufacturing.
Characteristics of a DSS
1. Support for decision makers in semi structured and unstructured problems.
2. Support for managers at various managerial levels, ranging from top
executive to line managers.
3. Data access
4. Support for individuals and groups. Less structured problems often requires
the involvement of several individuals from different departments and
organization level.
5. Support for interdependent or sequential decisions.
6. Support for intelligence, design, choice, and implementation.
7. Support for variety of decision processes and styles
8. DSSs are adaptive over time.
Benefits of DSS
Improves efficiency and speed of decision making activities
Classification of DSS
There are several ways to classify DSS. Hoi Apple and Whinstone classify DSS in
following:
Text Oriented DSS: It contains textually represented information that could
have a bearing on decision.It allows documents to be electronically created, revise
and viewed as needed
Database Oriented DSS: Database plays a major role here; it contains
organized and highly structured data.
Types of DSS
Following are some typical DSSs:
Status Inquiry System: helps in taking operational management level or
middle level management decisions, for example daily schedules of jobs to
machines or machines to operators.
Data Analysis System: needs comparative analysis and makes use of
formula or an algorithm,for example cash flow analysis,inventory analysis etc.
Information Analysis System: In this system data is analyzed and the
information report is generated.For example,sales analysis,accounts receivable
systems,market analysis etc.
Accounting System:keep tracks of accounting and finance related
information,for example,final account,accounts receivables,accounts payables etc.
that keep track of the major aspects of the business.
Model Based System: Simulation models or optimization models used for
decision- making used infrequently and creates general guidelines for operation or
management.
Definition of KMS
Knowledge Management comprises a range of practices used in an
organization to identify, create represent distribute and enable adoption to insight
and experience. such insights and experience comprise knowledge, either
embodied in individual or embedded in organizational processes and practices.
OR
Purpose/Objective of a KMS
The purpose of the Knowledge Management process is to share perspectives,
ideas, experience and information; to ensure that these are available in the right
place at the right time to enable informed decisions; and to improve efficiency by
reducing the need to rediscover knowledge.
Market intelligence
Investment intelligence
Technology intelligence
Market reports
Why EIS/ESS:-
EIS/ESS emerged , indeed the emergence became imperative, due to various
factors both internal & external, obtaining in the corporate operating environment
world-wide.
According to Watson and others EIS/ESS has become imperative(vital/
authorities command) due to certain internal & External factors as follows:-
Internal Factors
External Factors
Instruments of change
Better understanding
Time management
Increased communication capacity and quality
Disadvantage of ESS
Functions are limited
Ad hoc Analysis
Production reporting
OLAP analysis
operations management
logistics
procurement
information technology
Objective of SCM
Feature of SCM
Scope of SCM
SCM Processes
Demand Management
Procurement Management
Returns Management
Advantages of SCM
To the suppliers:
Inventory Economy:
Distribution Point:
Satisfied distributor and whole seller ensure that the right products
reach the right place at right time
Channel Management:
Financial management:
Low cost
Realistic analysis
Operational performance:
External customer:
Competitive prices
Delivery
Quality work
Delivery
Chapter IV
Management Information System
Introduction of MIS
MIS is popularly known as the Management Information System.
MIS is considered as one such method of generating information which is used
by management of organization for decision Making, control of activities,
operations etc.
During the period 1940 to 1960 computers were commercially used
for census and payroll work. This involved large amount of data and its
processing. Since then the commercial application exceeded the scientific
applications for which the computer were mainly intended for.
MIS is an information System which helps in providing the
management of an organization with information which is used by management
for decision making.
MIS is all about using information for discharging among others the
management functions of initiating, planning, organizing, forecasting, staffing,
directing, coordinating and controlling.MIS is a tool for better management and
scientific decision-making. MIS helps in providing right information, in right
quantity, to right person/s (managers), at right time.
Management Information System is an implementation of the
organizational systems and procedures.
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
OR
Management can be defines as a science of using resources rationally
(mobilization, allocation, combination, utilization of resources in judicious
manner using appropriate skills, approaches and techniques) and economically to
achieve the desired results or meet the targeted performance level
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
Idea
Intelligence
Data
Knowledge Information
Solar system: The sun and the celestial bodies that revolve around it.
Capitalist Market System: Set of inter-related ideas and principles
A business is also a system where resources such as people, money,
material, machines etc., are transformed by various organization processes
into goods and services.
Thus MIS means a system for processing data in order to give proper
information to the management for performing its functions
Definition of MIS
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.
OR
A management information system (MIS) provides information that
organizations require to manage themselves efficiently and effectively.
Management information systems are typically computer systems used for
managing. The six primary components of an MIS are:
1. Hardware
2. Software
3. Data (information for decision making),
5. Procedures (design, development and documentation), and
6. People (individuals, groups, or organizations).
OR
A computer based information system for providing management
with accurate timely information necessary for decision making. It is a planned &
integrated system for gathering relevant data, converting it in to right information
& supplying the same to the concern executives/manager.
OR
According to David J. Olson, A Management Information System is an
integrated user machine system for providing information to support the
operations, management, analysis and decision-making functions in an
organisation.
Needs of MIS:
Managers play a key role in any organization. They are responsible for
taking decisions appropriate to the need of the market. Information systems have
become the main tool used by managers in decision making. Managers perceive
information as the driving force to achieve success in any business. Hence there
is a need for MIS as:
Support of its business process and operations
Support of decision making by its employees and managers
Support of its strategies for competitive advantage-Gaining a
strategic advantage
The major roles of the business applications of a Management
Information
Objectives of MIS
Goals of an MIS are to implement the organizational structure
and dynamics of the enterprise for the purpose of managing the organization in a
better way and capturing the potential of the information system for competitive
advantage.
Following are the Basic objectives of an MIS:
Capturing Data: capturing contextual data, or operational information that will
contribute in decision making from various internal and external sources of
organization
Processing Data: the captured data is processed into information needed for
planning, organizing, coordinating, directing and controlling functionalities at
strategic, tactical and operational level. Processing data means:
Making calculations with the data
Sorting data
Classifying data and
Summarizing data
Information Storage: information or processed data need to be stored for future
use.
Information Retrieval: the system should be able to retrieve this information
from the storage as and when required by various users.
Information Propagation: information or the finished product of the MIS should
be circulated to its users periodically using the organizational network.
Nature & Scope of MIS:
which can be made use for analytical and decision making activities. Thus
Accounting is useful and is made use of in MIS.
Management Techniques and principles are inseparable part of decision
making. They explain the dynamics of decision making process, specify
management functions at various levels and thereby facilitate development of
MIS.
Features of 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.
5. Cost-Effective
The MIS needs to be a cost-effective and efficient system for gathering
information. Most of these systems are developed internally, creating costs that
cannot be passed to clients.
ADVANTAGES OF MIS
MIS is a process of collection and storing of the data useful for
the organization. The following points can summarize the importance of MIS :-
1. It facilitates Planning : MIS improves the quality of plans by providing
relevant information for sound decision making. Due to increase in the
size and complexity of organizations, managers take help of information
systems to know about the status of operations.
2. In minimizes Information overload : MIS change the larger amount of
data in to summarized form and there by avoids the confusion which may
arise when managers are flooded with detailed facts.
3. MIS encourages De-centralization : Decentralization of authority is
possibly when there is a system for monitoring operations at lower levels.
MIS is successfully used for measuring performance and making necessary
change in the organizational plans and procedures.
4. It brings Co-ordination : MIS facilities integration of specialized
activities by keeping each department aware of the problem and
requirements of other departments. It connects all decision centers in the
organization.
DISADVANTAGES OF MIS
MIS enhances the overall throughput of the organization. But it has certain
limitations :
The qualities of the outputs of MIS are basically governed by the qualities
of inputs and processes.
It may not have requisite flexibility to quickly update itself with the
changing needs of time, especially in a fast changing and complex
environment.
MIS effectiveness decreases due to frequent changes in top management,
organizational structure and operational team.
It can not replace managerial judgment in making decisions in different
functional areas.
Functions of MIS
The prime objective to set up MIS in an organization is to use the
management information by its managers for decision-making. Thus, MIS needs
to perform the following functions to meet its objective:
Creating a unified MIS covering the entire organization will lead to a more
economical, faster and more integrated system, however it will increase in design
complexity manifold.
It should take care of not only the users i.e., the managers but also other
stakeholders like employees, customers and suppliers
Once the organizational planning stage is over, the designer of the system
should take the following strategic decisions for the achievement of MIS goals
and objectives:
Resources for the Development: Designer has to select resources.
Resources can be in-house verses external, customized or use of package.
Manpower Composition: The staff should have the staffs of an analyst, and
programmer.
Information system planning essentially involves:
Identification of the stage of information system in the organization
Identification of the application of organizational IS.
Evolution of each of this application based on established evolution
criteria.
Establishing a priority ranking for these application
Determining the optimum architecture of IS for serving the top priority
applications.
There should be good support staff with necessary technical, business, and
interpersonal skills
There should be proper training of all users including the top management,
so that they have a good knowledge of the content and function of the system and
can use it fully for various managerial activities like reporting, budgeting,
controlling, planning, monitoring etc.
Internet vulnerabilities
Network open to anyone, Size: abuses can have wide impact
Use of fixed Internet addresses creates fixed targets hackers
Unencrypted VOIP(Voice Over Internet Protocol) (no use of VPN-Virtual
Private Network)
E-Mail, P2P(Network Peer to Peer), IM: Interception, Attachments with
malicious software, Transmitting trade secrets
Software vulnerability
Commercial software contains flaws that create security vulnerabilities
Hidden bugs (program code defects), Zero defects cannot be
achieved because complete testing is not possible with large
programs
Flaws can open networks to intruders, impede performance
Patches: Vendors release small pieces of software to repair flaws
(patch management by users), However exploits often created faster
than patches be released and implemented
Computer forensics:
Scientific collection, examination, authentication, preservation, and
analysis of data from computer storage media for use as evidence in
court of law
Includes recovery of ambient and hidden data, plan needed
Establishing a Framework for Security and Control
Where company at risk, what controls must be in place, security
policy, plans for keeping business running if IS not operational
General controls
Govern design, security, and use of computer programs and security of
data files in general throughout organizations IT infrastructure.
Apply to all computerized applications
Combination of hardware, software, and manual procedures to create
overall control environment
Types of general controls: Software controls, Hardware controls,
Computer operations controls, Data security controls,
Implementation controls, Administrative controls
Risk assessment
Determines level of risk to firm if specific activity or process is not
properly controlled
Determine value of info assets, points of vulnerability, likely
frequency of the problem, potential for damage
Concentration on the control points with greatest vulnerability and
potential for loss
Security policy
Ranks information risks, identifies acceptable security goals, and
identifies mechanisms for achieving these goals, most important
assets
Acceptable use policy (AUP): Defines acceptable uses of firms
information resources and computing equipment, unacceptable,
consequences
Authorization policies: Determine differing levels of user access to
information assets
Identity management
Business processes and tools to identify valid users of system and control
access: Identifies and authorizes different categories of users, Specifies
which portion of system users can access, Authenticating users and
protects identities
Identity management systems: Captures access rules for different levels of
users
Disaster recovery planning: Devises plans for restoration of disrupted
services Business continuity planning: Focuses on restoring business
operations after disaster
MIS audit
Examines firms overall security environment as well as controls
governing individual information systems, data quality
Reviews technologies, procedures, documentation, training, and personnel
Simulate disaster to test response of technology, IS staff, other employees
Lists and ranks all control weaknesses and estimates probability
of their occurrence, Assesses financial and organizational impact
of each threat
Encryption
Transforming text or data into cipher text that cannot be read by
unintended recipients, encryption key
Secure Sockets Layer (SSL) and successor Transport Layer
Security (TLS) between 2 computers
Secure Hypertext Transfer Protocol (S--HTTP) limited to individual
messages
Symmetric key encryption: Sender and receiver use single, shared key
Public key encryption: Uses two, mathematically related keys: Public
key and private key, Sender encrypts message with recipients public
key, Recipient decrypts with private key
Digital certificate:
Data file used to establish the identity of users and electronic
assets for protection of online transactions
Uses a trusted third party, certification authority (CA), to validate
a users identity
CA verifies users identity, stores information in CA server, which
generates encrypted digital certificate containing owner ID
information and copy of owners public key
High--availability computing
o Helps recover quickly from crash, Minimizes not eliminates
downtime
o Backup servers, multiple server distribution, high capacity
storage, god disaster recovery and business continuity plans
Recovery--oriented computing: Designing systems that recover quickly
with capabilities to help operators pinpoint and correct of faults in multi-
-component systems
Controlling network traffic: Deep packet inspection (DPI) Video
and music blocking, using prioritizing
Security outsourcing: Managed security service providers (MSSPs)
Introduction
MIS is a practical stream. The aim of MIS is to provide information for decision
making. Data has to be captured, collected, collated and processed into information. This
formation has to be channeled to the right user at the night time and in the right way.
The MIS designer has to study the organization as a system, with all its sub-systems. The
information sub-system, in particular, has to be studied and a new, generally computerized
sub-system has to be designed, developed and implemented. The study of the existing system
and the design of a new system demands a thorough knowledge of business processes and
business as a whole. The MIS Designer needs to know how goods are manufactured, what data
is generated at each point, how this data is captured and transmitted id how the final reports are
produced. Man management skills to play an important role in ting able to understand how the
existing system operates. The MIS designer has to be able to speak the language of the user,
and this demands an understanding of the particular area of operation of the user. Thus, the
MIS Designer should be able to understand the language of a top Floor Supervisor as well as
Marketing personnel, Materials personnel and personnel in her functional area.
At the same time, the MIS designer needs to have a proper understanding of the
different formation needs of different organizations. With information Technology becoming a
highly specialized field, more and more organizations are turning to Information Technology
consultants and experts to design the MIS for the organization. In such cases, it is quite
probable it the MIS designer may become a specialist in the design, development and
implementation.
MIS in different organizations. It is quite possible that he will be called in as an
external entity to implement the MIS and then go on to another organization to repeat the
implementation process there, much the same way as Chartered Accountants and Lawyers can
be several different clients and not belong to any one client. Thus, he will be called upon to
design MIS different types of organizations at different times. Therefore, the MIS designer will
need to be an understanding of MIS operates differently in different sectors, such as the
manufacturing and service sectors, as well as in different functional areas such as production,
marketing, personnel, etc.
MIS used in different sectors as well as in different functional areas & MIS to be
able to understand the different approaches required, the different information needs, etc. from
the followings
Application of MIS in Manufacturing :-
The manufacturing sector is concerned with the production and marketing of
physical goods. The organization purchases raw materials, processes them into finished
products and markets these products in the market place. The data that is generated relates to
the procurement , of physical raw material, the storage and movement of this raw material
through the manufacturing process, the testing and checking of the finished goods, the
packaging and subsequent sale of the finished goods. The data relates to quantities, prices,
process materials, packaging material, etc. In other words, to a large extent the data in the
manufacturing sector relates to physical goods. Of course, there are intangible entities involved
too, such as market perception, expenses of the personnel, etc. However, by and large the data
refers to physical entities.
1. Productions
The Production Management function of the organization is concerned with
the production It interacts with functions such as Production Planning and Control,
Maintenance, Quality Control, etc. It receives inputs from inventory Control. It receives
feedback from Quality Control and Marketing.
The functional goods Production Management are fuller utilization of
manufacturing capacity and resources, reduction in rejection rates, maximizing uptime of the
plant & machinery and adherence to production schedules. Thus, the MIS will seek to aid
management in achieving these goals.
The data will be input into the MIS through following documents:
1. Production Programme
2. Production Schedule
3. Process Planning Sheet,
4. Job Card / Job Register
5. Quality rating sheet / form
6. Finished Goods Advice
7. Breakdown Advice
8. Material Requisition Form, etc.
the pulse of the R & D department. Input is usually given to the R & D department through
inter- office memos and meetings. On its own, the R & D department will take inputs from
other research journals, technology reports and breakthroughs, the work of scientists in certain
fields, etc.
Output will be given to management in the form of current research projects,
project start date, current status, prototypes, computer simulation models, etc. Management
may, in turn, query R&D about the status of projects that it feels are worthwhile to focus on,
the results of specific instructions on reduction of pollution, increase in fuel efficiency, safety
features,
MIS in Hospitals
Hospitals are another important constituent of the Service Sector. Hospitals are
healthcare providers and today have outgrown the traditional sterile image they once had.
Today, hospitals are run on the lines of business organizations and have a clearly stated
mission of providing healthcare to people. Hospitals no longer have patients but customers.
Customers are a wider definition and include referring doctors, specialists, medical consultants
and paramedical personnel.
In order to best serve their customers, hospitals need to track information about
the following:
1. Patient Database
This database is important to be enable the hospital to service queries about
past patients, healthcare provided, etc. to patients, their relatives and to doctors
2. Medical Server Database
This database contains records of medical service providers including regular
staff, specialists, consulting physicians, etc. It also contains data on institutions allied to the
medical sector such as blood banks, ambulance services, laboratories, etc. that can be called
upon in regular course or in emergencies.
3. Resource Planning and Control
This is an online query service that would provide information on the level and
availability of resources at different times and the customer scheduling capability of the
hospital. Such a system would also provide information on the utilization of services and the
spare capacity that can be made available to other healthcare providers.
4. Medical Case History Database
Such a database would be very helpful to medical researchers, students,
consultants and specialists who need to access various case histories. Many a time, the case
history of patients may help to judge the efficiency of certain drugs and the likely reaction of
patients with similar case histories to certain forms of treatment. -
In addition to the above, the hospital would need other MIS subsystems such as
back office operations, manpower planning, payroll billing and recovery inventory control, etc.