Management Information System - MIS

by
Ashish Ukidve
M.E , CSSLP, CISA ( USA)
ISO 27001 LA
MIS in todays environment
Today MIS must be seen w.r.t. IT systems as all
business is done thru IT
Data when processed gives Information
It is useful for managing data or information
For understanding MIS we have to understand
Information Systems and how they are developed or
acquired
Management ( &) Information Systems
Management essentials & Levels of management
What do information systems do?
MIS as an evolving concept
MIS and Organizational Fit
MIS as a Discipline
4
Management: What is management?
Planning
Organizing
Leading
Controlling
Management essentials.
5
Planning

Goal setting
Environmental scanning
Forecasting
Data collection
Management essentials.
6
Organizing
Staffing
Coordinating
Delegating
Understanding
Procedures/ Policies
Management essentials.
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Management essentials.
Leading
Authority
Motivating
Directing: Delegation of responsibilities activating
Supervising
Negotiation
Persuading
Due Diligence
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Management essentials.
Controlling: Resources- Money (capital),
manpower (people), materials, machines,
movement (Distribution, flow), and Information
Measuring
Evaluating
Reporting
Corrective action
Feed back
9
Communicating: Goals/Objectives, standards
of desirability
Informing
Persuading
Negotiation
Corrective action
Listening
Management essentials.
Organisational Levels
Four organizational levels
Operational personnel
Lower management
Middle management
Top management
Responsibilities, decision-making styles, and
information system requirements vary
depending on where you are positioned
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MIS Raw Material- DATA
Information: What is information?
Raw material - DATA
Stored facts
inactive (they exist)
technology based
gathered from various places
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Information: What is information?
Processed data - transformed form data
meaningful
Has perceived value
Has Surprise value
Has news value
Presented as facts
Domain based - business based
Model
entity
attribute
relationship
Reduces Uncertainty?
Provides Competitive Edge
. Adds Value to business operations & decisions
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Information: What is information?
Information is data that has been processed into a
form that is meaningful to the recipient (USER)
and is of real or perceived value in current or
prospective actions or decisions.
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Transforming Data Into Information
Data Inputs Information Outputs
Capture


Manipulation


Storage


Provision of Access
at User Location
External
Data
Internal
Data
Information System
Query Response


Decision Outcome


Expert-System Advice


Transaction Document


Report
Organization
Environment
15
Systems Concepts
Definition
input-process-output an orderly arrangement of interdependent
ideas or constructs (ABSTRACT SYSTEM)
a set of elements which operate together to accomplish an objective
(PHYSICAL SYSTEM)
Network: An Integrated environment for a specific set of tasks
General Model of a System: Input, process and output.
The features which define and delineate a system form its
boundary. The system is inside the boundary and the
environment is outside the boundary.
a system is composed of subsystems
The interconnections and interactions between the subsystems are
the INTERFACES.


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System
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System: Black Box or General View
System
Environment
Inputs Outputs
Constraints
Objectives
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A System and its Subsystems
Environment
System
Interconnection
Subsystems
(components)
Constraints
Inputs Outputs Objectives
System Boundary
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Systems Approach
Systems Approach:
Identify & establish the objective of the system
Consider the totality of its relationships with its
environment
Can not ignore the importance of the
environment internal or external
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Systems Approach
Identify its components and their interactions.
examples:
Human Resources
skills inventory system
managerial promotion system
should they be separate or linked?
Brokerage house
central client or
individual broker system
TPS that has a very long response time
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Systems Approach
Effectiveness: the extend to which a systems achieves
its objectives
Efficiency: consumption of inputs relative to outputs
Usability: the ability of the uses to use the system
Satisfaction: A subjective measure of "like" or usability
or effectiveness
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Systems Types
Deterministic versus probabilistic
Deterministic: The interaction between the
parts or subsystems is known for certain;
example: a computer program which performs
exactly to a set of instructions
Probabilistic: A system that can be described
in terms of probable behavior (a certain degree
of error);
examples: An inventory system, a five year old
(who does not follow a certain set of instructions).
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SYSTEM INTERDEPENDENCE
BUSINESS
Strategy
Rules
Procedures
ORGANIZATION INFORMATION SYSTEM
INTERDEPENDENCE
SOFTWARE
HARDWARE
DATABASE
TELE-
COMMUNICATION
S
Information System Components
Hardware Servers, PCs, laptops, routers,
UPS etc
Software Application software, system
software etc
Data data associated with real life events
Procedures logic to process data to
generate information
People to operate procedures either on
computer or manually and also to consume
the information generated
Business Information Systems
Characteristics of business information
systems - 4 main characteristics affect a business
information systems complexity
Relationships with other systems
Boundaries
Specialized business needs
Size of the company
Information System Components
Companies are classified based on their main
activities:
Production-oriented (industrial) companies that
manufacture & sell goods
Service companies that mainly offer information,
services, or sell goods made by others
Combined industrial & service companies
Systems Development Life Cycle
Systems planning
Systems analysis
Systems design
Systems implementation
Systems operation and support
Systems Development Life Cycle
Systems planning
Preliminary investigation report
Systems analysis
System requirements document
Systems design
System design specification
Systems implementation
Complete functioning information system
Systems operation and support
Operational information system

Systems Planning
Purpose identify problems nature/scope
Systems request begins the process &
describes desired changes/improvements
Systems planning includes preliminary
investigation or feasibility study
End product preliminary investigation report

Systems Analysis
Purpose is to learn exactly how the current system
operates
Fact-finding or requirements determination is
used to define all functions of the current system
This is done by interviewing people, collecting
and studying documents and forms handled in a
company
Writing down procedures along with
diagrammatic representations

System Development Options
Options
Develop a system in-house
Purchase a commercial package
Outsource the development
Modify an existing system
Stop development
The end product for this phase is the systems
requirements document

Systems Design
Purpose is to satisfy all documented requirements
Identify all outputs, inputs, files, manual procedures, &
application programs
Avoid misunderstanding through manager and user
involvement
End product is system design specification consisting of
Tables design
Screen / dialogue boxes design
Report / query design
Validation rules design
Processing logic design
Deployment design
Others
Systems Implementation
Construct/deliver information system
Prepares functioning, documented system
Write, test, document application programs
User and manager approval obtained
File conversion / data conversion occurs
Users, managers, IS staff trained to operate
and support the system
Post-implementation evaluation performed

Systems operation and support
New system supports business operations
Maintenance changes correct errors or meet
requirements
Enhancements increase system capability
After several years of operation, systems MAY
need extensive changes
Systems development life cycle ends with
system replacement

Todays Indian Industry
Manufacturing
Trading
Banking, Finance & Insurance
Service
Agriculture & agriculture products
Govt Sector Pure Govt and Govt companies
Information System Applications
Called as Business Applications
They can be stand-alone or integrated
They can be distributed or centralised
They can be non-web-based or web-based
They can be text based or GUI based
They can be custom-built or ready-made as a
product
Some Business Applications
Function oriented applications e.g. Purchase,
inventory processing, sales & distribution
systems, share accounting, banking etc
Integrated systems such as ERP e.g. SAP,
BaaN, JDE, Oracle Financials
Customer support such as Talisma
Insurance such as Genesis
Centralised banking such as Finacle, Flexcube
etc


What a system does?
A system captures data either off-line or on-line
This data is stored in a database
The data is processed either immediately or in batch
mode
The result of processing may be for final human
consumption or fed to other application
The data from transaction systems (or operations
systems) is uploaded in a batch mode to Data
Warehouse Systems
DSS are built around Data Warehouse Systems
Purchase to Pay Cycle
Get Purchase requisition from depts - system
Collate all requisitions semi-system
Call quotations / tenders - manual
Evaluate vendors - manual
Select vendor - manual
Prepare & place purchase order system
Delivery of goods manual
GRN


Purchase to pay cycle
Quality control manual
Approval system
Supplier submits bill/s system
Approve bills system
Prepare and pay supplier semi-system
Closure of cycle

Sales & distribution
Inquiry - Customer makes an enquiry about a
product / products
Quotation - A quotation presents the
customer with a legally binding offer for
delivering a product or providing a service
within certain fixed conditions. This offer is
legally binding for the company within a
specified time period.


Sales & distribution
Sales Order - A Sales Order consists of one or several
items containing the quantity of the material or service
specified for the order. The total quantity can be
subdivided into schedule lines which contain different
partial quantities and the relevant delivery dates.
Delivery - Sales and distribution document for
processing a delivery of goods. The delivery serves as a
basis for : Planning material requirements, Picking,
Creating shipping documents, Creating shipping units,
Transportation, Billing.
Goods Issue - A reduction in stock on hand in the
warehouse/stores
Sales & distribution
Billing - Creation of commercial invoice is
done as intermediate document (It is required
for preparation of Excise Invoice and posting
into account). This is to be based on Delivery
document.
Excise Invoice - In order to generate an Excise
Invoice number and update excise accounts,
the Excise Invoice will be created with
reference to the billing document, by
specifying the date and the billing document
number.

Payment Card Process
and/or
Issuer
Acquirer
Merchant
Cardholder
uses card to
buy from
is a member of
is a member of
provides
processing
services to
issues cards to
may or may not
be the same as
Typical system modules
?? Questions ??