For Scribd Upload

Management Information System.
Historical background
At the start, works in businesses and other organizations, internal reporting was made manually and only periodically, as a by-product of the accounting system and with some additional statistics), and gave limited and delayed information on management performance. Previously, data had to be separated individually by the people as per the requirement and necessity of the organization.
Later, data was distinguished from information, and instead of the collection of mass of data, important data that is needed by the organization was stored. Early on, business computers were mostly used for relatively simple operations such as tracking sales or payroll data, often without much detail. Over time these applications became more complex and began to store increasing amounts of information while also interlinking with previously separate information systems.
As more and more data was stored and linked man began to analyze this information into further detail, creating entire management reports from the raw, stored data. The term "MIS" arose to describe these kinds of applications, which were developed to provide managers with information about sales, inventories, and other data that would help in managing the enterprise.
Historical background.
Management information systems began with simple manual systems such as customer databases on index cards. As early as 1642, the French mathematician and philosopher Blaise Pascal invented the first mechanical adding machine so that figures could be added to provide information.
Almost two hundred years later, Charles Babbage, a professor of mathematics at Cambridge University in England, wanted to make a machine that would compute mathematical tables. He attempted to build a computing machine during the 1880s. He failed because his ideas were beyond his technical capabilities, not because the idea was flawed. Babbage is often called the father of the computer
Herman Hollerith
In the late 1890s, because of the efforts of Herman Hollerith, who created a punch-card system to tabulate the data for the 1890 census, it was possible to begin to provide data-processing equipment. The punch card developed by Hollerith was later used to form a company to provide data-processing equipment. This company evolved into International Business Machines (IBM). Mainframe computers were used for management information systems from the 1940s-70s
In the 1970s, personal computers were first built by hobbyists. Then Apple computer developed one of the first practical personal computers. In the early 1980s, IBM developed its PC, and since then, the personal computer industry has mush roomed. With the advent of the computer, management information systems became automated. Almost every management information system revolves around some kind of computer hardware and software.
MIS- Today
Management information systems are be coming more important, and MIS personnel are more visible than in the 1960s and 1970s, when they were hidden away from the rest of the company and performed tasks behind closed doors. So remote were some MIS personnel from the operations of the business that they did not even know what products their companies made.
MIS- Today
This has changed because the need for an effective management information system is of primary concern to the business organization. Managers use MIS operations for all phases of management, including planning, organizing, directing, and controlling.
MIS- Today
MIS personnel must be technically qualified to work with computer hardware, software, and computer information systems. MIS managers, once they have risen through their technical ranks of their organization to become managers, must remember that they are no longer doing the technical work.
MIS- Today
MIS personnel must cross over from being technicians to become managers. Their job changes from being technicians to being systems managers who manage other people's technical work. They must see themselves as needing to solve the business problems of the user, and not just of the data-processing department
MIS- Today
MIS managers are in charge of the systems development operations for their firm. MIS provides a broad overview of computer based information systems, with special emphasis on business applications and managerial control.
MIS- Today
The use of computers has infiltrated every area of our society from food production, health sciences, technology, government and business. We depend on how data is acquired and processed. Private and governmental organizations generate large amounts of data such as personnel records, sales transactions, and production data and inventory records.
MIS Today
In order to be successful, organizations must find a way to manage their data. Management information systems majors focus on the design, implementation, and maintenance of computer systems Today, MIS is of interest to students who wish to specialize in business-orientated information analysis and data processing
system
Before one can explain management information systems, the terms systems, information, and management must briefly be defined. A system is a combination or arrangement of parts to form an integrated whole. A system includes an orderly arrangement according to some common principles or rules. A system is a plan or method of doing something.
system
The development of a set of standards and procedures A system is a scientific method of inquiry, that is, observation, the formulation of an idea, the testing of that idea, and the application of the results. The scientific method of problem solving is systems analysis in its broadest sense. Data are facts and figures. However, data have no value until they are compiled into a system and can provide information for decision making.
Information.
Information is what is used in the act of informing or the state of being informed. Information includes knowledge acquired by some means. Information can be defined as data that have been shaped into form that is meaningful and useful to human beings. Data refers to stream of raw facts representing events occurring in organizations or the physical environment before they have been organised and arranged into a form that people can understand and use For example , raw data from a supermarket checkout counter can be sales of detergent or total revenue form detergent within a given period.
Information System .
Main activities in an Information system: Three activities (input-processing-output) in an information system produce the information that organizations need to: 1) make decisions 2) Control operations 3) Analyse problems. 4) Create new products and services.
Information System (IS)

An information system can be defined technically as a set of interrelated components that collects or retrieve process , store, and distribute information to support decision making and control in an organization.
1) Input- Captures or collects information from within the organization or from its external environment stakeholders including competitors all of which interact with the organization and it information system.) 2 ) Processing Converts the raw input into a meaningful form (classify , arrange, calculate)
Information System( activities) .
Information System( activities) .

3) Output- Transfer the processed information to the people who will use it or to the activities for which it will be used Information also required FEEDBACK (output that is returned to the appropriate members of the organization to help them evaluate or correct the input stage. Note-:Computer-based information system use computer technology to process raw materials into meaningful information.
Information System .
Computers provide the equipment for storing and processing information, while computer programmes and software are set of operating instructions that control computer processing, hence computers and programmes are only part of an information system ( just like nails and hammer needed in building a house not the house itself) . Therefore it is important to know how computers and programme work in order to be able to design solutions to organization problem but they do not alone produce the information .
Information SystemRole of Computers .

The role of computer and programmes in an information system: It is important to note the difference between computer and programmes on one hand and information system on the other hand. Computers and related software programmes are the technical foundation, the tools and materials of modern Information systems.
Quality of Information
For information to be meaningful to the recipient, it must possess the following qualities: Must be relevant Must be accurate Must be complete and Up- to- date. Timely Clear and understandable Well- presented Cost- effective
Understanding IS
To understand IS, one must be both be: 1) Information System literate :An understanding of the management and organizational dimensions of systems and technical dimensions of system. 2)Computer literate- This concentrates mainly on knowledge of information technology. MIS tries to achieve information system literacy by dealing with both BEHAVIOURAL and TECHNICAL issues surrounding the development, use and impact of information systems used by managers as well as employees in an organization.
Understanding IS
From the above three dimensions of IS can be identified. 1) Organization 2) Management /People 3) Information technology.
Management .
Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can cooperate towards attainment of group goals. According to F.W. Taylor, Management is an art of knowing what to do, when to do and see that it is done in the best and cheapest way.
Management .
Management involves creating an internal environment: - It is the management which puts into use the various factors of production. Therefore, it is the responsibility of management to create such conditions which are conducive to maximum efforts so that people are able to perform their task efficiently and effectively. It includes ensuring availability of raw materials, determination of wages and salaries, formulation of rules & regulations
Management
Management s job is to make sense out of the many situations facing the firm. make decisions formulate action plans to solve organizational problems . management set organizations strategy to respond to challenges in the organizations business environment (customers , competitors, suppliers, PEST). If management has knowledge of the planning, organizing, directing, and controlling of the business, its decisions can be made on the basis of facts, and decisions are more accurate and timely as a result.
Management
Management allocate both human and financial resources to co-ordinate the work and achieve success. Management do not only manage what is already existing , they must also create new products and services as well as re-invent their organizations from time to time. Management create work driven by new knowledge and information technology can help managers develop new products /services as well as redirect and redesign their organizations
Management .
Management is the process of allocating an organization's inputs, including human and economic resources, by planning, organizing, directing, and controlling for the purpose of producing goods or services desired by customers so that organizational objectives are accomplished.
Organization.
The key components of an organization are people, structure, business processes and culture. Organization structure consists of different levels of specialties. The structure of an organization shows a clearcut division of labour, authorities and responsibilities organised as a hierarchy or a pyramid structure, The upper level consists of managerial professional and technical employees , while the lower levels of the hierarchy consists of operational personnel
Organization.
1) Upper level (Senior management, Executives, BOD) : Makes long-range strategic decisions about products and services as well as ensure financial performance of the organization
Organization.
2)Middle level management (departmental and branch managers ) carries out the programmes and plans of senior management. Knowledge workers like engineers ,scientists or architect design products and services and create new knowledge for the firm.
Organization.
3) Lower level ( supervisors ,operational staff) is responsible for monitoring the daily activities of business. Production or service workers produce the product or deliver the service. Note: Data workers such as secretaries or clerks assist with paperwork at all levels of the firm.
Organization.
Business processes : An organization coordinates through its hierarch and business processes. Business processes in an organization are logically related tasks and behaviours for accomplishing work In most organizations , business processes include formal rules and procedures that have been developed over a period of tasks for accomplishing tasks.
Organization.
These rules guide employees in a variety of procedures( writing an invoice, responding to customer complaints, hiring an employee developing new products /services) Some of this processes are written ( formal) while others not formally documented (informal) e.g. informal work practices like requirement to return telephone call from co- workers.
Technology
Information technology is one of the tools managers use to cope with change: Computer hardware Computer software Data management technology Networking and telecommunication technology. All these technologies along with people required to run and mange them represent resources that can be shared throughout the organization and constitute the organizations INFORMATION TECHNOLOGY(IT) INFRASRUCTURE.
A management information system (MIS)

Computer-based or manual system that transforms data into information useful in the support of decision making. The specific type of data processing system that is designed to furnish management with information that may be of assistance in making decisions.
storing and disseminating data in the form of information needed to carry out the functions of management. In a way it is a documented report of the activities that were planned and executed. For example, according to Philip Kotler "A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.
A management information system (MIS) the collecting, processing, An 'MIS' is a planned system of
MIS
Management information systems are those systems that allow managers to make decisions for the successful operation of businesses. Management information systems consist of computer resources, people, and procedures used in the modern business enterprise. MIS also refers to the organization that develops and maintains most or all of the computer systems in the enterprise so that managers can make decisions.
MIS- Aim of MIS

The goal of the MIS organization is to deliver information systems to the various levels of corporate managers. MIS professionals create and support the computer system throughout the company. Trained and educated to work with corporate computer systems, these professionals are responsible in some way for nearly all of the computers, from the largest mainframe to the desktop and portable PCs.
A management information system (MIS) is a system or process that provides information needed to manage organizations effectively. Management information systems are regarded to be a subset of the overall internal controls procedures in a business, which cover the application of people, documents, technologies, and procedures used by management accountants to solve business problems such as costing a product, service or a business-wide strategy.

Apart from supporting decision making, and other managerial functions, IS can also help managers and workers analyse problem, visualise complex situations or issues and create new products. Information System (IS) contain information about significant people, and things within an organization or in it environment

Management information systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization. Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. Decision Support System ,Transactions Processing System/Expert Systems and Executive Support System/Executive Information System/ Executive Support System.
Understanding MIS
To fully understand IS ,we must understand the problem they are designed to solve, their architectural and design elements and the organizational processes that lead to these solutions. Also we must understand the organization in a broader sense, management ,Information technology dimensions of systems and their power to provide solutions to challenges and problems in the business environment.
FEATURES OF MIS
Any successful MIS must support a business's LONG- TERM PLAN It must provide for reports based on performance analysis in areas critical to that plan, with feedback loops that allow for titivation of every aspect of the business, including recruitment and training regimens. In effect, MIS must not only indicate how things are going, but why they are not going as well as planned where that is the case. These reports would include performance relative to cost centres and projects that drive profit or loss, and do so in such a way that identifies individual accountability, and in virtual real-time.
Understanding Information Systems: A Business ProblemSolving Approach

The Problem-Solving Approach Few business problems are simple or straightforward Most business problems involve a number of major factors that can fall into three main categories: Organization Technology People

A Model of the Problem-Solving Process Problem solving: 4-step process Problem identification Solution design Choice Implementation

Problem identification includes: Agreement that problem exists Definition of problem Causes of problem What can be done given resources of firm

Typical organizational problems Outdated business processes Unsupportive culture and attitudes Political in-fighting Turbulent business environment, change Complexity of task Inadequate resources

Typical technology problems Insufficient or aging hardware Outdated software Inadequate database capacity Insufficient telecommunications capacity Incompatibility of old systems with new technology Rapid technological change

Typical people problems Lack of employee training Difficulties of evaluating performance Legal and regulatory compliance Work environment, ergonomics Poor or indecisive management Lack of employee support and participation

Solution design Often many possible solutions Consider as many as possible to understand range of solutions Choice: Factors include: Cost Feasibility given resources and skills Length of time needed to implement solution Implementation Building or purchasing solution Testing solution, employee training Change management Measurement of outcomes Feedback, evaluation of solution

Problem Solving Is a Continuous Four-Step Process but not a single event and sometimes chosen solution doesnt work or needs adjustment During implementation and thereafter, the outcome must be continually measured and the information about how well the solution is working is fed back to the problem solvers. In this way, the identification of the problem can change over time, solutions can be changed, and new choices made, all based on experience.

The Role of Understanding Information Systems: Without critical thinking, easy to jump to conclusions, misjudge a problem and waste resources Critical thinking: Sustained suspension of judgment with an awareness of multiple perspectives and alternatives Four elements of critical thinking: Maintaining doubt and suspending judgment Being aware of different perspectives Including technology, organization, and people perspectives Testing alternatives and letting experience guide Being aware of organizational and personal limitations
A Business Problem-Solving Approach
critical thinking,
The Connection Between Business Objectives, Problems, and Solutions When firms cannot achieve business objectives these objectives become challenges Information systems often present solutions, partially or fully, to these challenges
The Role of Information Systems in a Business

Firms invest in information systems in order to:
Achieve operational excellence Develop new products and services Attain customer intimacy and service Improve decision making Promote competitive advantage Ensure survival
Information Systems Services

Services provided by the information systems department include: Computing and telecommunications services Data management services Application software services Physical facilities management services IT management services IT standards services IT educational services IT research and development services
MIS can be classified as performing three functions: (1) To generate reports-for example, financial statements, inventory status reports, or performance reports needed for routine or non-routine purposes. (2) To answer what-if questions asked by management. For example, questions such as "What would happen to cash flow if the company changes its credit term for its customers?" can be answered by MIS.
FUNCTIONS of management information system (MIS)
FUNCTIONS of management information system (MIS)

This type of MIS can be called Simulation. (3) To support decision making. This type of MIS is appropriately called Decision Support System (DSS). DSS attempts to integrate the decision maker, the data base, and the quantitative models being used. Management information systems do not have to be computerized, but with today's large, multinational corporations, computerization is a must for a business to be successful.
Levels of Management
The term Levels of Management refers to a line of demarcation between various managerial positions in an organization. The number of levels in management increases when the size of the business and work force increases and vice versa. The level of management determines a chain of command, the amount of authority & status enjoyed by any managerial position.
The levels of management can be classified in three broad categories: Top level / Administrative level Middle level / Executory Low level / Supervisory / Operative / First-line managers Managers at all these levels perform different functions. The role of managers at all the three levels is discussed below:
Top Level of Management

Top Level of Management It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions.
Top Level of Management

The role of the top management can be summarized as follows 1)Top management lays down the objectives and broad policies of the enterprise. 2)It issues necessary instructions for preparation of department budgets, procedures, schedules etc. 3)It prepares strategic plans & policies for the enterprise. 4)It appoints the executive for middle level i.e. departmental managers.
5) It controls & coordinates the activities of all the departments. 6)It is also responsible for maintaining a contact with the outside world. 7) It provides guidance and direction. 8) The top management is also responsible towards the shareholders for the performance of the enterprise.
Middle Level of Management

1The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their department. They devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management but in big enterprises, there may be senior and junior middle level management. Their roles include the following: Executing the plans of the organization in accordance with the policies and directives of the top management.

Functions of Middle level Management ( contd.) hey make plans for the sub-units of the organization. They participate in employment & training of lower level management. They interpret and explain policies from top level management to lower level. They are responsible for coordinating the activities within the division or department. It also sends important reports and other important data to top level management. They evaluate performance of junior managers. They are also responsible for inspiring lower level managers towards better performance.
Lower Level of Management

Lower level is also known as supervisory / operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. According to R.C. Davis, Supervisory management refers to those executives whose work has to be largely with personal oversight and direction of operative employees. In other words, they are concerned with direction and controlling function of management. Their activities include

Assigning of jobs and tasks to various workers. They guide and instruct workers for day to day activities. They are responsible for the quality as well as quantity of production. They are also entrusted with the responsibility of maintaining good relation in the organization. They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level and higher level goals and objectives to the workers. They help to solve the grievances of the workers.
Qualities of a good MIS manager.

The person with responsibility for the MIS function will need the following personal qualities: aptitude for leadership able to influence peers, clients and suppliers able to explain complex concepts clearly able to determine and address clients' needs able to accept a significant level of responsibility and accountability

They supervise & guide the sub-ordinates. They are responsible for providing training to the workers. They arrange necessary materials, machines, tools etc for getting the things done. They prepare periodical reports about the performance of the workers. They ensure discipline in the enterprise. They motivate workers. They are the image builders of the enterprise because they are in direct contact with the workers.
Functions of Management
According to George & Jerry, There are four fundamental functions of management i.e. planning, organizing, actuating and controlling. According to Henry Fayol, To manage is to forecast and plan, to organize, to command, & to control. Whereas Luther Bullock has given a keyword POSDCORB where P stands for Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for Budgeting. But the most widely accepted are functions of management given by KOONTZ and ODONNEL i.e. Planning, Organizing, Staffing, Directing and Controlling.
For theoretical purposes, it may be convenient to separate the function of management but practically these functions are overlapping in nature i.e. they are highly inseparable. Each function blends into the other & each affects the performance of others.
Planning
It is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of pre-determined goals. , Planning is deciding in advance what to do, when to do & how to do. It bridges the gap from where we are & where we want to be.
Planning (contd.) A plan is a future course of actions. It is an exercise in problem solving & decision making. Planning is determination of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways & means for accomplishment of pre-determined goals. Planning is necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc.
Organizing
It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. According to Henry Fayol, To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnels.
To organize a business involves determining & providing human and non-human resources to the organizational structure. Organizing as a process involves: Identification of activities. Classification of grouping of activities. Assignment of duties. Delegation of authority and creation of responsibility. Coordinating authority and responsibility relationships.
Staffing It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behavior etc. The main purpose o staffing is to put right man on right job i.e. square pegs in square holes and round pegs in round holes. Managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal & development of personnel to fill the roles designed un the structure. Staffing involves:
Manpower Planning (estimating man power in terms of searching, choose the person and giving the right place). Recruitment, selection & placement. Training & development. Remuneration. Performance appraisal. Promotions & transfer.
Directing It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals.
Directing (contd.) Direction has following elements: Supervision Motivation Leadership Communication
Directing (contd.) Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers. Motivation- means inspiring, stimulating or encouraging the subordinates with zeal to work. Positive, negative, monetary, nonmonetary incentives may be used for this purpose. Leadership- may be defined as a process by which manager guides and influences the work of subordinates in desired direction. Communications- is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding.
Controlling It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur. According to Theo Haimann, Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation.
Controlling (contd.)
According to Koontz & ODonell Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished. Therefore controlling has following steps: Establishment of standard performance. Measurement of actual performance. Comparison of actual performance with the standards and finding out deviation if any. Corrective action.
Definition of Coordination Co-ordination is the unification, integration, synchronization of the efforts of group members so as to provide unity of action in the pursuit of common goals. It is a hidden force which binds all the other functions of management. According to Mooney and Reelay, Co-ordination is orderly arrangement of group efforts to provide unity of action in the pursuit of common goals.
They are responsible for coordinating the activities within the division or department. It also sends important reports and other important data to top level management. They evaluate performance of junior managers. They are also responsible for inspiring lower level managers towards better performance.
Co-ordination is an integral element or ingredient of all the managerial functions as discussed below: 1) Co-ordination through Planning Planning facilitates coordination by integrating the various plans through mutual discussion, exchange of ideas. e.g. - co-ordination between finance budget and purchases budget.
2) Co-ordination through Organizing Mooney considers co-ordination as the very essence of organizing. In fact when a manager groups and assigns various activities to subordinates, and when he creates departments co-ordination uppermost in his mind. 3) Co-ordination through Staffing A manager should bear in mind that the right no. of personnel in various positions with right type of education and skills are taken which will ensure right men on the right job.
4) Co-ordination through Staffing A manager should bear in mind that the right no. of personnel in various positions with right type of education and skills are taken which will ensure right men on the right job.
5) Co-ordination through Directing The purpose of giving orders, instructions & guidance to the subordinates is served only when there is a harmony between superiors & subordinates. 6) Co-ordination through Controlling Manager ensures that there should be co-ordination between actual performance & standard performance to achieve organizational goals. From above discussion, we can very much affirm that coordination is the very much essence of management. It is required in each & every function and at each & every stage & therefore it cannot be separated.
Importance of MIS to Organization

Management information systems is important to organizations on a management level where it is used to maintain and develop new ways not only to manage tremendous amounts of data, but to assist executives in making decisions. Management information systems professionals are primarily interested in using the computer to solve business problems. They provide high-technology solutions for problems that need to be addressed, problems such as sales forecasting, optimizing production, installing appropriate technology, analyzing trends, and displaying information in such a way that managers can make use of it.
Systems development
Systems development requires four stages when developing a system for any phase of the organization: Phase I is systems planning. Phase II identifies the requirements for the systems. Phase III involves the development of the systems. Phase IV is the implementation and control.
Systems development
Phase I is systems planning. The systems team must investigate the initial problem by determining what the problem is and developing a feasibility study for management to review.
Phase II identifies the requirements for the systems. It includes the systems analysis, the user requirements, necessary hardware and software, and a conceptional design for the system. Top management then reviews the systems analysis and design.
Systems development
Phase III involves the development of the systems. This involves developing technical support and technical specifications, reviewing users' procedures control, designing the system, testing the system, and providing user training for the system. At this time, management again reviews and decides on whether to implement the system.
Phase IV is the implementation of the system. The new system is converted from the old system, and the new system is implemented and then refined. Control and Monitoring - There must then be ongoing maintenance and revaluation of the system to see if it continues to meet the needs of the business.
Types of Systems in an Organization

Types of Systems Management information systems can be used as a support to managers to provide a competitive advantage. The system must support the goals of the organization. Most organizations are structured along functional lines, and the typical systems are identified as follows: 1) Accounting management information systems: All accounting reports are shared by all levels of accounting managers.

2)Financial management information systems: The financial management information system provides financial information to all financial managers within an organization including the chief financial officer. The chief financial officer analyzes historical and current financial activity, projects future financial needs, and monitors and controls the use of funds over time using the information developed by the MIS department.

3)Manufacturing management information systems: More than any functional area, operations have been impacted by great advances in technology. As a result, manufacturing operations have changed. For instance, inventories are provided just in time so that great amounts of money are not spent for warehousing huge inventories. In some instances, raw materials are even processed on railroad cars waiting to be sent directly to the factory. Thus there is no need for warehousing.

4) Marketing management information systems: A marketing management information system supports managerial activity in the area of product development, distribution, pricing decisions, promotional effectiveness, and sales forecasting. More than any other functional area, marketing systems rely on external sources of data. These sources include competition and customers, for example.

5) Human resources management information systems: Human resources management information systems
are concerned with activities related to workers, managers, and other individuals employed by the organization. Because the personnel function relates to all other areas in business, the human resources management information system plays a valuable role in ensuring organizational success. Activities performed by the human resources management information systems include, work-force analysis and planning, hiring, training, and job assignments.
Systems from a Functional Perspective

Sales and marketing systems Support activities for selling and marketing firms products or services Senior management: Monitor trends affecting products and sales, planning for new products and services, monitor performance of competitors Middle management: Support market research, analyze marketing campaigns, pricing decisions, sales performance Operational management and employees: Locating and contacting prospective customers, process orders, provide customer service support
Manufacturing and production systems Support activities for producing firms products or services Senior management: Help plan long-term manufacturing goals, such as technology investments and locating new plants Middle management: Analyze and monitor manufacturing and production costs and resources Operational management Manage status of production tasks
Systems from a Functional Perspective Finance and accounting systems Support activities for managing financial assets, firms capitalization, and financial records Senior management: Establish long-term investment goals and provide long-range forecasts of firms financial performance Middle management: Oversee and control firms financial resources Operational management Track flow of funds in firm through transactions (paychecks, payments, securities reports, receipts, etc.)
Systems from a Constituency Perspective

Transaction processing systems Keep track of basic activities and transactions of organization (e.g. sales, receipts, cash deposits, payroll, credit decisions, flow of materials in a factory) Management information systems and decisionsupport systems Help with monitoring, controlling, decisionmaking, and administrative activities
Decision Support System (DSS).

Decision Support System (DSS). 1. A system that uses data and models to support management decision making. 2. Business benefits include more effective decision making, although whether decision making is really more effective because of the use of the DSS is difficult to assess in many situations.
Decision Support System (DSS).

3. Many examples can be given, including the Connoisseur Foods DSS. Office Automation (OA). 1. A system that supports many functions within an office. 2. Usually a bundle of capabilities, including e-mail, spreadsheets, word processing, diary management and databases. 3. System talked about in terms of the paperless office. 4. Individual productivity enhancements, in terms of enhanced communication and information analysis/reporting. Examples from industry such as All-in-1, Microsoft Office,

Executive support systems: Help address strategic issues and long-term trends, both in firm and in external environment The executives are concerned with questions such as What will be the level of employment in 5yrs time? What are their long-term industry trends ? Where does our firm fit in? These are non-routine decisions that require judgment , evaluation, insights , because there is no agreed procedures for arriving at decisions.
Executive support systems:

The ESS HELPS THEM TO MAKE THESE DECISIONS. ESS presents graphs and data from different sources through an interface that is easy for senior mangers to use. Usually such information is delivered to senior managers through a portal which uses a web interface to present integrated personalized business content
Executive Information System (EIS).

Executive Information System (EIS). 1. A system that allows flexible and direct easy access by managers to internal and external data, thereby enabling the effective monitoring and control of company operations. 2. Briefing books provided. 3. Business benefits include the more effective monitoring of key performance indicators, and the ability to drill down to underlying more detailed data. 4. Originally targeted towards top management use, but in reality middle and lower management are more keen users (re: everybodys information system). 5. Examples include Express EIS and Powerplay
ESS (contd.)
ESS are designed to incorporate data about external events, such as tax levels or competitors, but they also draw summarized information from internal MIS and DSS. They filter , compress , and track critical data, displaying the data of great importance to the senior employees . For example, the CEO of Leiner Health Products , the largest manufacturers of private label vitamins and supplement in the US., has an ESS that provides on his desktop a minute- to minute view of the firms financial as measured by Working Capital Account receivable account payable Cash flow and Inventory. This information is presented in form of digital dashboard which displays on a single screen and charts of key performance indicators for managing a company

Transaction processing systems Serve operational managers Principal purpose is to answer routine questions and to track the flow of transactions through the organization E.g. Inventory questions, granting credit to customer Monitor status of internal operations and firms relationship with external environment Major producers of information for other systems Highly central to business operations and functioning
Types of Business Information Systems

Relationship of Systems to One Another TPS: Major source of data for other systems ESS: Primarily a recipient of data from lower-level systems Other systems may exchange data as well Exchange of data between functional areas E.g. Sales order transmitted to manufacturing system In most organizations, systems are loosely integrated

The above are examples of the major management information systems. There may be other management information systems if the company is identified by different functional areas.
Intranets and Extranets.

Intranets and Extranets Technology platforms that increase integration and expedite the flow of information Intranets: Internal networks based on Internet standards Typically utilize a portal Extranets: Intranets extended for authorized use outside the company for partners, customers Facilitate collaboration
FEASIBILITY OF MIS
Feasibility assessment surrounding MIS in general, and data warehousing in particular. Feasibility of a data warehouse should be considered from several perspectives; social , legal, technical economic - a Cost-Benefit Analysis (CBA) etc However, the fact that the costs and/or benefits of an MIS may be hard to judge with any great degree of certainty at the outset makes traditional economic feasibility assessments very difficult.
FEASIBILITY OF MIS
Many successful MIS projects would have been scrapped had the economic situation been the deciding factor in their development A data warehouse, specifically, may be considered to be an extremely costly development with mostly intangible benefits (better decision making, more awareness of the organisations strengths and weaknesses, etc.). However, if a surrogate quantitative figure can be found in place of the sum total of benefits (e.g., it is highly likely that the data warehouse will increase sales by % in the next year, which can be equated to a quantitative measure), then this may enable a form of CBA to be more effectively attempted.
FEASIBILITY OF MIS
Social: social issues with respect to data warehousing
include issues such as the existence of top management support (vital for any MIS development) and the availability of champions to be advocates for the new data warehouse. Issues such as the way in which the data warehouse will change work processes, power relationships and culture need to be considered, as do general employee attitudes towards the data warehouse implementation (data warehouses can have significant effect on business culture and processes, as demonstrated by data warehouse implementations such as that found at First American Corporation).
FEASIBILITY OF MIS
Technical: This is where an assessment of whether or not the organisation has the sufficient infrastructure to implement a data warehouse takes place. Infrastructure in this context includes not only the technological platform, but also aspects such as the numbers, knowledge and skills of the IT workforce to deal with such a complex MIS implementation. The outsourcing of development work to those with data warehouse experience may be a viable alternative as has been the case in many real-life companies (issues of cost and ownership come into question when considering this approach).
FEASIBILITY OF MIS
Legal: this is where the data warehouse implementation is considered against the current legislation of the land. UK laws that need considering with respect to this implementation include the DP Act 1998 (if keeping details about identifiable people within the data warehouse) and possibly the Computer Misuse Act 1980 (for issues to do with unauthorised entry into the system). The data warehouse development needs to consider and address any areas of potential law violation. If the data warehouse system is considered feasible in all respects, then it may be a viable project to see through (taking into account any aspects that have emerged during the feasibility study which require attention).
Data Warehouse
Data Warehouse. 1. A separate data store that integrates and consolidates the disparate data sources within a company so that data can be used effectively for business intelligence and management support applications. 2. Typically, relational in nature but could be multidimensional. 3. Terabytes of transaction processing data integrated. .
Data Warehouse
4. Separate from transaction processing systems to ensure best arrangement of data for management support and not to hold up operational speeds. 5. Business benefits include the ability to analyse an integrated dataset in an immediate manner because of the data warehouse provision. 6. Can be integrated with external data sources.e.g. the data warehouse at BP or at Federal Express
Multidimensional Database System

1. A database system that has its data structured in a multidimensional form as opposed to the two dimensional tabular structure of relational database systems. 2. It allows the end-user to slice and dice the data to examine and detect trends and issues of importance.
Multidimensional Database System

3. Better as a database structure for end-user analysis rather than classic DP systems. 4. Examples are the databases within business intelligence packages such as Powerplay and Express.
data mining
Usually, data mining requires the presence of a data warehouse. This can be obtained from transactions gleaned from transaction systems. Transaction data differs from standing data, as Transaction data is not usually stored. For example, the transaction data could consist of all customer purchasing transactions - data that could be useful if trying to understand buying behaviour. Retention of transaction data has become feasible due to the decreasing cost of off-line storage.
data mining
Transaction data is not usually stored. For example, the transaction data could consist of all customer purchasing transactions - data that could be useful if trying to understand buying behaviour. Retention of transaction data has become feasible due to the decreasing cost of off-line storage.
data mining
Data mining can consist of entering queries in order to obtain specific answers. The systems can also be used to look for unknown correlations or clusters of data that can provide an organisation with new insights. Frequently used in supermarket applications, where buying behaviour can be used to target specific customers with special offers in order to entice them into the store.
Data Mart
Data Mart:
A small data warehouse that centres on some subset of the organisation, for example a particular function such as sales and marketing. Companies may start with a data mart and then this is then added to derive a data warehouse over time. Alternatively, a data mart may be provided separate to a data warehouse so that it is optimised for the particular company aspect it is centred on. It will take its source data from the data warehouse. It may be stored using a different data model, such as multidimensional, to the data warehouse, such as relational
Data Population e) Data Population

This is the process of ensuring that the data within the data warehouse is appropriate, accurate and suitably up-to-date. This is seen as being the biggest problem in many data warehousing projects, as it is quite difficult to consolidate the data held on several large databases with their different data formats, data definition, different implementations, etc.
Data Mart
Alternatively, a data mart may be provided separate to a data warehouse so that it is optimised for the particular company aspect it is centred on. It will take its source data from the data warehouse. It may be stored using a different data model, such as multi-dimensional, to the data warehouse, such as relational
APPLICATION Service Providers (ASP)

These are companies that rent out software applications over the internet.
Companies using ASP services use applications hosted by the ASP with appropriate communication links back to the client company.

Subscribing to an ASP allows companies to avoid purchasing, installing, supporting and upgrading expensive software applications. ASPs offer a wide range of applications, from simple web applications to full corporate systems.

The ASP is responsible for application maintenance, communication with the software vendor and licensing. The target market for ASPs is small companies or companies wishing to trial applications. The upside of ASPs is that capital investment is low. The downside is that any significant volume of transactions could result in high charges and there may be a high minimum charge.
Change management
To allow change to occur in a controlled manner To ensure that all potential impacts are considered and managed in line with the project objectives. To manage the project contingency To control scope creep If we do not manage change, we lose control of both costs and schedule
Change management
Managing change Log every change request Consider the effort and cost required to effect the change Consider the impact Agree all changes with sponsor Accept that change is essential but it needs to be controlled
The Capability Maturity Model for Software is a model for judging the maturity of the software processes of an organisation and for identifying the practices required to increase the maturity of these processes. The Capability Maturity Model for Software describes the principles and practices underlying software process maturity and is intended to help software organisations improve the maturity of their software processes in terms of an evolutionary path from ad hoc, chaotic processes to mature, disciplined software processes.
The Software Capability Maturity Model

It is important as it is an objective assessment of an organisation's software capability, with a proven approach to improvements. Levels 1. Initial. The software process is characterised as ad hoc, and occasionally even chaotic. Few processes are defined and success depends on individual effort and heroics.

2. Repeatable. Basic project management processes are established to track cost, schedule and functionality. The necessary process discipline is in place to repeat earlier successes on projects with similar applications. 3. Defined. The software process for both management and engineering activities is documented, standardised, and integrated into a standard software process for the organisation. All projects use an approved, tailored version of the organisation's standard software process for developing and maintaining software.

4. Managed. Detailed measures of the software process and product quality are collected. Both the software process and products are quantitatively understood and controlled. 5. Optimising. Continuous process improvement is enabled by quantitative feedback from the process and from piloting innovative ideas and technologies.
This include traditional, evolutionary, end-user, etc. Three such approaches are described below: Traditional approach: Sequence of phases, starting from requirements gathering and finishing with system maintenance. One stage starts when the preceding one finishes. Defined deliverables are produced at the end of each of the phases, which are signed off by management to confirm their completeness and accuracy. Any backtracking to previous phases is considered as a sign of weakness in the activities performed within earlier stages of the development.
Contemporary Approaches to Information Systems.
Appropriate DSS development situations: In general, the traditional approach is more suited to a larger scale, complex system, where the requirements can be determined at the outset of the project. The requirements need to remain static for a sufficiently long time so as to make it feasible to develop a system to support current requirements using this non-backtracking favouring approach. Larger model-oriented DSS and DSS for repetitive use may be developed using this approach, although the latter type may be first developed using another approach and then redesigned using a traditional approach.
Appropriate DSS development situations
Traditional approach:

Evolutionary Approach: Where a prototype is developed and evolved into the final system. There is frequent communication with the end user to demonstrate the current prototype and seek further amendments to incorporate. There is an expectation that the prototype system will not be right first time and will require successive developments in order to satisfy the end users needs. The prototype could be vertical (small part of the system in depth) or horizontal (breadth view of the system, with limited underlying functionality) in nature.

Evolutionary Approach: Where a prototype is developed and evolved into the final system. There is frequent communication with the end user to demonstrate the current prototype and seek further amendments to incorporate. There is an expectation that the prototype system will not be right first time and will require successive developments in order to satisfy the end users needs. The prototype could be vertical (small part of the system in depth) or horizontal (breadth view of the system, with limited underlying functionality) in nature.

In general, the evolutionary approach is more suited to smaller systems development projects, and/or where the requirements are hard to identify at the outset and/or rapidly changing. The prototyping nature of the development enables changes to requirements to be considered frequently and incorporated. Indeed, the evolutionary system may never seem to stop but continually evolve in the face of rapidly changing requirements. Smaller and/or adhoc DSS are commonly developed using this approach (with respect to the latter type of DSS, this development approach is sometimes known as a quick-hit approach).
End-user development approach: Where the end-user develops the system that they will eventually use, and that the end-user is not an IT professional. This has several advantages and disadvantages. Advantages include the better understanding of the problem and the user requirements, as the direct user develops the support system him/herself. Also there are no additional communication pathways to worry about, such as that with an intermediary developer, which can lead to misunderstandings and errors in the development of the system.
Contemporary Approaches to Information Systems
Contemporary Approaches to Information Systems

Furthermore, the time to system use is usually faster, and the cost is lower. Disadvantages include the time taken to develop the system and its questionable quality of development (both in terms of the resultant software and in terms of other development deliverables, such as the user guide and technical documentation).
In general, end-user development is used for simple systems that are within the control of an individual manager (developer). A small spreadsheet application could be developed by the end-user in many cases.
Using Databases to Improve Business Performance and Decision Making

Databases provide information to help the company run the business more efficiently, and help managers and employees make better decisions Tools for analyzing, accessing vast quantities of data:
Data warehousing Multidimensional data analysis Data mining Utilizing Web interfaces to databases

Data warehouse Database that stores current and historical data that may be of interest to decision makers Consolidates and standardizes data from many systems, operational and transactional databases Data can be accessed but not altered Data mart Subset of data warehouses that is highly focused and isolated for a specific population of users

The data warehouse extracts current and
historical data from multiple operational systems inside the organization. These data are combined with data from external sources and reorganized into a central database designed for management reporting and analysis. The information directory provides users with information about the data available in the warehouse.

A series of analytical tools works with data
stored in databases to find patterns and insights for helping managers and employees make better decisions to improve organizational performance 1)Database Keeps track of transaction data 2)Data Warehouse Finds pattern and insights 3) Business intelligence Decision to respond to the data patterns
Using Databases to Improve Business Performance and Decision Making- Online Analytical Processing (OLAP)
Supports multidimensional data analysis, enabling users to view the same data in different ways using multiple dimensions
Each aspect of informationproduct, pricing, cost, region, or time periodrepresents a different dimension E.g. Comparing sales in East in June vs. May and July Enables users to obtain online answers to ad hoc questions such as these in a fairly rapid amount of time
Using Databases to Improve Business Performance and Decision Making-Data Mining

Data Mining Finds hidden patterns and relationships in large databases and infers rules from them to predict future behavior Types of information obtainable from data mining Associations: Occurrences linked to single event Sequences: Events linked over time Classifications: Patterns describing a group an item belongs to Clusters: Discovering as yet unclassified groupings Forecasting: Uses series of values to forecast future values
One popular use of data mining: Analyzing patterns in customer data for one-to-one marketing campaigns or for identifying profitable customers Predictive analysis: Uses data mining techniques, historical data, and assumptions about future conditions to predict outcomes of events, such as the probability a customer will respond to an offer or purchase a specific product Data mining vs. privacy concerns Used to create detailed data image about each individual
Using Databases to Improve Business Performance and Decision Making- Data Mining
DNA Databases: Crime Fighting Weapon or Threat to Privacy?

Read the Interactive Session and then discuss the following questions: What are the benefits of DNA databases? What problems do DNA databases pose? Who should be included in a national DNA database? Should it be limited to convicted felons? Explain your answer. Who should be able to use DNA databases?
Ensuring Data Quality

Poor data quality: Major obstacle to successful customer relationship management Data quality problems: Caused by Redundant and inconsistent data produced by multiple systems Data input errors Data quality audit: Structured survey of the accuracy and completeness of data Data cleansing: Detects and corrects incorrect, incomplete, improperly formatted, and redundant data
QUESTION FOR DISCUSSION.

It has been said that current Management Information Systems (MIS) cannot adequately support the Strategic Management function of an organisation. a) Describe the principal activities of the Strategic Management, Tactical Management and Operational Management functions within an organisation, and highlight the typical characteristics of the information needed to support each function. b) Discuss the extent to which Executive Information Systems (EIS) and Decision Support Systems (DSS) are able to support Strategic Management.
Suggested Answer
Strategic management function : That which is responsible for defining the objectives of the organisation, the resources required to achieve those objectives, and the policies which govern the acquisition, deployment and use of resources. Information characteristics : external, unpredictable structure, summarised, Capable of taking long term decisions for the whole organization. External contacts.
Suggested Answer
Tactical Management function : That which obtains, deploys and uses resources effectively, whilst adhering to the policies for their acquisition, deployment and use, in the pursuit of organisational objectives. Information characteristics : balance of internal/external, more predictable in structure, less summarised. Taking decisions concerning their respective departments over shorter time periods, etc.
Suggested Answer
Operational Management function :That which assures that specific tasks are carried out efficiently and effectively. Information Characteristics: Detailed, predictable structure, easily accessible (relatively speaking) and internal information, short timescale (daily, weekly), etc.
Suggested Answer
This part of the question -Part (b) is about the role of EIS and DSS in Strategic management support. Give an overview of what an EIS is (i.e., a CBIS that allows flexible and direct easy access by managers to internal and external data, thereby enabling the effective monitoring and control of company operations and its essential features (e.g., drill down, very user friendly input, usually based on a multidimensional database, provision of communications facilities e.g., e-mail as part of the package, etc.),
Suggested Answer
Provide an overview of DSS (i.e., a system that uses data and models to support management decision making), and explain the extent to which both EIS and DSS can support Strategic Management. However, for the EIS Consider -information needs relative to EIS functions. For example, the relative failure of EIS at this level of management support, with possible supporting examples, due to its inability to provide the type of information needed at this level. Indeed, it has really become an easy to use tool for lower to middle management. DSS is typically being used at lower and middle management, although some DSS have been provided at strategic management level.
QUESTION FOR DISCUSSION.

You are required to provide the framework for an end-user MIS. a) Identify and discuss five pre-requisites of a successful end-user MIS. Explain how the success of the end-user MIS could be measured a year after implementation.
Suggested Answer
The expected pre-requisites are listed below. Pls ,expand/provide examples for each of these points: 1) Agreed boundaries between end-user and corporate MIS computing/any agreed general requirements. 2) Use of common software/desktop setup. The need for the whole organisation to have a common computing platform.
Suggested Answer
3) Shared resources. The need for shared programs, data, files, standards, naming conventions, networks etc. 4) Data ownership. Data ownership and availability to be agreed all participants. This should include a possible need for an initial data analysis to include the identification of both standing and transactional data. 5) Training.
Suggested Answer
Part B. is about issues concerning end-user computing Four measures of the success of end-user MIS could be identified as below, give explanation and examples . User, management and customer surveys Degree of data duplication Consistency and timeliness of data Productivity improvements (Business and IS)
Outsourcing
Outsourcing
Outsourcing
At the Board meeting of a large organisation, the Finance Director has formally proposed that to improve service and reduce costs the organisation should outsource all IS functions, including future IS strategy. The IS Director accepts some of the arguments for outsourcing but strongly disagrees that all functions be outsourced, particularly the IS strategy which he believes must remain within the organisation. The Board remains unconvinced by both arguments and seeks assistance.
Outsourcing
a) Describe the advantages and disadvantages of outsourcing all IS functions. b) Discuss the implications of outsourcing just the computer operations function of IS. c) Evaluate the arguments for and against outsourcing IS strategy.
Outsourcing
a) Advantages of outsourcing Access to expertise Resources readily available Management can concentrate on core business Lower initial costs/known costs Contractual relationship with your IS supplier Benchmarking against other organisations
Outsourcing
Disadvantages of outsourcing Possible exploitation by supplier High long term costs Loss of corporate knowledge over long term Staff issues at handover Loss of control Business risk/risk of outsourcer going out of business Subsequent insourcing may be difficult Blame culture
Outsourcing
b) Outsourcing computer operations Outsourcing of computer operations is wellestablished Does not affect retained corporate systems knowledge Changing capacity requirements can be accommodated Outsourcer can take advantage of scale economies Can provide large scale capacity for special exercises (DB reorganisation etc) Less risk than outsourcing all functions
IS strategy
c) IS strategy Advantages Perception that outsourcing company knows IS and therefore is best placed to determine strategy. One less item for the Board to consider Belief that if the IS strategy is right for one organisation it is right for another Opportunities for genuine business partnership with outsourcing company
IS strategy
Disadvantages of IS strategy Board could lose all control of IS Outsourcing company likely to follow its own business agenda Loss of opportunity for organisation to have any significant competitive advantage Organisations interests could become secondary to other customers
QUESTION FOR DISCUSSION

A furniture manufacturing company is investigating the potential of using data warehousing and data mining to support its Sales & Marketing activities, and is seeking your expert advice. Write a report to the Managing Director of the company, which: (a) describes the essential features of data mining and data warehousing. (b) clearly shows how data mining and data warehousing facilities can work together to support the management of an organisation, with particular reference to Sales & Marketing activities.
Suggested Answer
This question is about the use of data mining and data warehousing to support management in general, and Sales and Marketing in particular. Part (a) requires an overview of both data mining and data warehousing Data Warehouse. A separate data store that integrates and consolidates the disparate data sources within a company so that data can be used effectively for business intelligence and management support applications.
Suggested Answer
Typically relational in nature but could be multidimensional Terabytes of transaction processing data integrated Separate from transaction processing systems to ensure best arrangement of data for management support and not to hold up operational speeds. Business benefits include the ability to analyse an integrated dataset in an immediate manner because of the data warehouse provision. E.g. the data warehouse at BP or at Federal Express
Data Mining
Data Mining The process of identifying meaningful patterns in data using automatic or semiautomatic means Process oriented towards either discovery of unknown insights, or verification of known insights. Various tasks that can be considered within data mining, including classification, summarising, clustering, statistical analysis. Various methods to carry out these techniques include: neural networks, traditional statistical analysis tools, rule induction.
Suggested Answer
Part (b) requires the candidates to consider how the two work together, i.e., data, warehouse provides the data upon which data mining can occur. Examples showing the relationship should be provided, particularly from a sales and marketing orientation e.g., consumer habits in crisp sales Winter period has 50% better sales of Salt & Vinegar flavour crisps than in the summer period, consumers between the ages of 20 and 30 prefer the less standard flavour crisps to the standard ones
On-line Analytical Processing (OLAP).

On-line Analytical Processing (OLAP). Software packages that enable end-users to analyse data in a data store in an ad-hoc, customised fashion as and when required by the task in hand in a user-friendly way. May require data to be stored in a multidimensional database and allow the end-user to slice and dice the data to examine and detect trends and issues of importance. ExExpress. Data may not be exactly up to date could be updated weekly or daily, depending on how current the data needs to be for the task in hand. Examples are spreadsheets, business intelligence packages such as Powerplay and Express.
Question for Discussion.

Describe, with supporting examples, how Data Warehousing, OLAP and Data Mining facilities could be combined to provide a computer-based management support system.
Suggested Answer
Part (b) required candidates to show how Data Warehousing, OLAP and Data Mining can be combined to provide management support. Data Warehouse is a possible data feeder system for OLAP and Data Mining tools, and that relational data in the warehouse might have to be translated into a multidimensional structure for either OLAP or Data Mining use
Suggested Answer
b) A Data Warehouse can provide the base data which can then be fed into either an OLAP database (with transformations and filtering of data as required) or a data mining tool (some as case studies to explore rules and relationships, and others to test relationships and rules once identified). You may provide a suitable diagram of the process to support their answer, and may include examples of data about orders being used by an OLAP facilities to examine sales by customer by region by month details in different ways.
QUESTION FOR DISCUSSION

Describe, with supporting examples, the ways in which THREE of the following technologies can be used in the provision of a companys MIS: a) Videoconferencing; b) World Wide Web; c) Non-relational Database Management Systems; d) Knowledge-based Systems; e) Computer-Assisted Software Engineering (CASE) tools.
Suggested Answer
Answer Pointers
This question requires candidates to think about IT concepts and how they have affected the provision of an MIS, either in terms of its design or development. Each candidate is expected to answer this question in their own way (although an overview of the IT technology should be part of the answer). However, some possible issues that candidates may mention include the following:
Suggested Answer
a) Videoconferencing Provides a mechanism for group decision making from remote sites Room based or desk top based (Internet-based or otherwise) candidates may discuss the facilities available, and the problems with current videoconferencing systems (e.g., delays in transmission still a problem) Can be linked with GDSS software to create a linked decision room effect
Suggested Answer
b) World Wide Web Enables access to MIS via an Internet/Intranet as a set of WWW pages Enables standard MIS information reports to be available 24 hours a day, 7 days a week from the Intranet/Internet WWW pages could provide an integrated DSS, which has model/data components in various separate locations.
Suggested Answer
c) Non-relational Database Management Systems Those that allow non-relational data to be stored. Examples include OO,multimedia and multidimensional database management systems, but answers could cover DBMS that support the hierarchic and network data models. Enable more complex objects to be stored and manipulated e.g., sound bytes,
Suggested Answer
video-clips, bit maps (multimedia DBMS and OODBMS) Enables business data to be stored in a more flexible and useful way (multidimensional DBMS) and manipulated in a flexible, slice and dice manner All in all, non-relational DBMS such as OODBMS, enable MIS to be more closely related to business data storage and manipulation requirements
Suggested Answer
d) Knowledge-based Systems Provide intelligence to various MIS, e.g., make the interface more user friendly or Proactive Provision of Expert Systems (ES) candidates may provide details of what ES can do and their structure. Candidates may also provide examples to illustrate the ES concept and its use
Suggested Answer
e) CASE tools Can be used in the development of MIS Differences between upper-and lower-case tools may be explained, and their use in development Candidates may show how the CASE tool can be used to model the DB requirements of an MIS, although flow diagrams may have limited scope in MIS Development
Question
A company wishes to use electronic methods to publish selected information for access by the following three groups of people: internal staff; suppliers; and the general public. Critically evaluate the various electronic means available and decide which is most appropriate for each group.
Suggested Answer
Answer Pointers
Again there is no set answer to this question, but the candidate is expected to consider the various electronic means available and evaluate which is the most appropriate. Considerations and alternative methods that would attract marks are set out below:
Suggested Answer
External Extranet. Some businesses use extranets to allow people from outside to have limited and controlled access to their internal intranet systems. For example, many organisations outsource some of their functions. An external outsourcing company may have limited access to an organisations intranet through an extranet connection. Extranets are also useful for connecting a business with its customers, business partners or suppliers. Intranets and extranets are useful, easy to use and relatively cheap to install and maintain. They cannot, however, be used for highly complicated tasks such as payroll, accounting, calculating risks for underwriting, or sales and marketing because they are too slow for transactions that require high-speed processing. Email.
Suggested Answer
Public in General CD-ROM or internet. Electronic publication is where books, magazines and a wide variety of other materials are sold on CD-ROM or are available through the internet rather than as paper. For example, an organisation may have an internet website with order forms which require a website visitor to fill them in and send. (8 marks for any one method) (Eight marks for each method described/reasoned, with an additional mark depending on the use of reasoned argument in the answer, total 8+8+8+1=25)
Suggested Answer
Internal Groupware. Groupware is special software that recognises the significance of groups and small teams in offices, all of whom are contributing to the development of a project by providing functions and services that support the collaborative activities of groups and teams. Groupware connects the members of a team as they work on their own desktop computers. It allows people: to work together on documents; to schedule meetings; to access shared folders and databases; and to exchange ideas via e-mail.
Suggested Answer
Groupware software is very flexible and adaptable, allowing the users to define the work groups, who does what, and when they should do it. All tasks and duties for the group will be stamped with a date, time and author. Intranet. Organisations can achieve enterprise-wide connection links by creating internal networks called intranets to provide internal access to data across the organisation. An intranet is an internal network based on internet and web network technology. An intranet uses the existing communications network infrastructure combined with internet and world wide web standards. Intranet systems can often remedy connectivity problems, for example, within a large company.
Suggested Answer
Very often, departments in large companies grow independently of each other and a company can spend vast amounts of money on different client/server platforms that have been built without co-ordinating a central technology and without a unifying set of standards. Consequently, different departments may not be able to communicate with each other effectively as they may be using entirely different, non-compatible systems. A company may be able to link these departments by building an intranet system.
Suggested Answer
GROUPWARE CONTD. Email. Electronic mail is a system that delivers messages by sending text, pictures and other data between the users of information systems using ordinary telephone lines (PST) or other networks. Organisations use e-mail to communicate between employees, offices, customers, suppliers and other organisations. Some organisations have private e-mail systems that are not connected to the outside world but while this avoids some security concerns, it clearly limits the value of the system in expediting communications.
Suggested Answer
Public in General
CD-ROM or internet. Electronic publication is where books, magazines and a wide variety of other materials are sold on CD-ROM or are available through the internet rather than as paper. For example, an organisation may have an internet website with order forms which require a website visitor to fill them in and send.
Question
a) Developing a MIS is as much a social process as it is a technical one. Describe TWO non-technical/social problem situations that a MIS development team might face during MIS development and suggest ways by which each of the problem situations could be addressed. b) In the 1980s, a study showed that only a small number of managers were end-users of MIS and that many MIS were operated by technical specialists on behalf of management. Discuss why it is thought that the number of managers that are end-users of MIS has significantly increased since this study was performed. Use examples to support your answer.
Suggested Answer
Answer Pointers This is a question about social factors in MIS development and End-user Computing MIS. The second part requires candidates to discuss modern technological trends and their impact on MIS design. Two social problem situations could be: Problem of no ownership of the MIS by the organisation. This may be due to several reasons:
Suggested Answer
no organisational champion (in which one approach is to find a suitable champion and persuade him/her to adopt the role), no education as to why the development is taking place and how it relates to strategy and mission of the company (in which case, some education needs to be provided in a manner and at times suitable for the stakeholders in the project), development methods are not participative enough (in which case, the team should consider some prototyping at certain points in development).
Suggested Answer
Employees not being forthcoming about their requirements and activities, as they may see the MIS as a threat to their jobs and/or will change their jobs. Holding onto information, as the MIS is invading their territory company politics dimension. Education as to the purpose of the MIS would help here, as would careful definition of job descriptions post-MIS to ensure they are enriched rather than deskilled.
Suggested Answer
Part (a) required candidates to describe two social/nontechnical issues that an MIS development team might face. Most candidates managed to describe two nontechnical issues to a reasonable level of accuracy and detail, covering issues such as: Lack of ownership of the system being developed Resistance by employees towards the system being developed Staffing issues, such as lack of resources during intensive development stages
Suggested Answer
Economic issues such as budget considerations Legislation, such as the Data protection Act and its bearing on the development of the system Note- You mention valid issues, and suggest how to address them. Relate to the on-going use and maintenance of the MIS,as well as describe development issues.
Suggested Answer
b) This question is for candidates to show they can argue a particular case properly. The most likely answer will be that end-user MIS are expected to have significantly increased since the early 80s, due to the technological developments that have occurred (PC revolution, GUIs, voice recognition, internet so more portable and accessed via familiar web page approach), the greater exposure of management to computers during their formative years and the ubiquitous provision of easyto-use analytical tools such as spreadsheet packages.
Suggested Answer
On the other hand, some candidates may argue that managers are more busy than ever, given the global and international nature of business. As such, they have to delegate more and more to others, so it is less likely that they will use MIS directly. Some may use their own experiences of management in companies, for example the lack of PCs on managers desks particularly relative to certain functional areas of the business such as production and personnel. Indeed, their overall answer might have a depends nature, for example certain functions have increased usage whereas others have stayed the same or decreased.
Suggested Answer
Part (b) was for candidates to show they can argue a particular case properly with respect to an MIS situation. This was generally done well, with many candidates mentioning points such as: The technological developments since the early 80s, such as the proliferation of PCs, GUIs, voice recognition, the Internet, which enable more easy use of computers and applications software by end-users.
Suggested Answer
The greater exposure of management to computers, either through informal or formal training/education. The ubiquitous provision of much more easy-touse analytical tools such as spreadsheet packages. The requirements of companies that management have PC familiarity and use applications as part of their job.
Question
A medium-sized financial services organisation is seeking a replacement MIS Manager to restore confidence in the MIS function and to lead a redevelopment of its corporate systems. The organisations current systems were developed about fifteen years previously and use a central database. Apart from essential operating system changes and routine regulatory maintenance, no system enhancements have been implemented for many years and there is a large backlog of unsatisfied user requests. Some developments have been attempted but these have failed, due to user and MIS misunderstanding and conflict over their responsibilities for the different stages of development.
Question (contd.)
The organisation recently employed some management consultants, whose general advice was that the central systems be replaced by distributed applications; but management are unsure about this. As part of the selection and recruitment process for the new MIS Manager, you have been asked to make a presentation to demonstrate your suitability for the position. Prepare notes for the presentation to show your understanding of the following: a) The role of the MIS Manager and the personal qualities required. b) The involvement of user staff and MIS staff in all the development stages, from initial system request to post implementation review.
Question (contd.)
C) Suggestions as to how the backlog of
d) Evaluate the advice given by the management consultants.
enhancement requests could be reduced.
Suggested Answer.
a) The role of the MIS Manager and the personal qualities required. For this question, the examiners are looking for a general understanding of the management of the MIS function and hence the answer is not prescribed. The following is an example answer that includes the key aspects of managing staff, understanding change meeting requirements, adding value to the business etc. .
Suggested Answer.
Management of the MIS function is not easy. The running of a medium sized MIS function can be compared with running a business, with demanding customers, difficult suppliers, career-conscious staff and tight budgets and controls. The service provided by this business is subject to constant change due to an almost infinite demand for new facilities against a backcloth of changed hardware, software and package releases. Added to this is the need to effect urgent business and regulatory changes, safeguard the organisations investment in MIS and to keep up-to-date with technological advances
Suggested Answer.
Faced with the constant need to reduce costs and improve efficiency, Boards are increasingly looking at the performance of the MIS function and seeking new ways of adding value to the business and improving service. Compared with other parts of the organisation MIS is often perceived by higher management as an out-of-control black hole of expenditure. The person with responsibility for the MIS function will need the following personal qualities: 1)aptitude for leadership
Suggested Answer.
2)able to influence peers, clients and suppliers 3) able to explain complex concepts clearly 4)able to determine and address clients' needs 5)able to accept a significant level of responsibility and accountability
Suggested Answer.
b) The involvement of user staff and MIS staff in all the development stages, from initial system request to post implementation review. Again there is no formal answer to this question, but candidates should be able to identify and understand the general responsibilities at each stage of MIS development. The following outlines the stages and responsibilities: (see next slide)
Suggested Answer.
AREA RESPONSIBILITY General business and MIS strategy Management/MIS management Request for MIS work Users Scoping the request MIS Project leadership Users or MIS Prioritisation with other work requests Users with MIS Detailed definition of requirements Users with MIS Systems development MIS Systems testing MIS User testing Users System sign off User documentation Users or MIS Implementation Users and MIS Post-implementation review User
Suggested Answer
c) Suggestions as to how the backlog of enhancement requests could be reduced. Again, no prescribed answer but an understanding of the issues and the possible solutions is required. Possible suggestions are below: Reduce the scope of activities (with user agreement) Reorganise to have separate development and maintenance teams Cost justify all requests and reject those where there is no justification Reject those that do not align with business/IT strategy
Suggested Answer.
Replace all systems with new systems with required functionality Replace systems with packages with required functionality Outsource the work Use temporary labour Encourage greater use of end-user computing Introduce new methodologies/TQM Improve staff morale/overtime working to catchup
Suggested Answer.
d) Evaluate the advice given by the management consultants. The use of distributed processing needs to be evaluated. This could first be done by consideration of the advantages and disadvantages: Advantages of distributed processing Distributed systems allow more flexibility than centralised systems and provide a greater speed of response to local users Data stored in one central location is often vulnerable to system failures unless there are effective back-up facilities. Distributed systems help to reduce this vulnerability.
Suggested Answer.
d) Evaluate the advice given by the management consultants (CONTD.) The initial acquisition cost of processing data on one large mainframe is normally greater than a network of PCs. PCs in distributed systems are often far easier to use and maintain than a mainframe PCs are more flexible as they can provide graphic presentations on the user interface
Suggested Answer.
Disadvantages of distributed processing Distributed processing can often occur in an uncoordinated manner, especially if there is a very large number of PCs from different departments all connected to one network Distributed processing in several different locations may depart from organisational procedures and standards Distributed systems pose security problems because of the wide distribution of data
Disadvantages of distributed processing CONTD.)

Distributed systems are heavily dependent on telecommunications technology which is itself often vulnerable to failure Users may have better control over the centralised processing of data. In many cases the total cost of maintenance and management of a PC network is greater than that of a mainframe, so that total cost of ownership of the mainframe may be lower These need to be considered and an argued case given for either following or ignoring the consultants advice.
FURTHER EXERCISES
1) How can databases be used to improve Business Performance and Decision Making as well as ensure the quality of data? 2)What in your opinion are the roles of MIS in Business ? 3) Discuss using appropriate examples how a company of your choice or your Organization has used Information System (IS) to create and sustain competitive advantage.

For Scribd Upload

Cargado por

Información del documento

Descripción original:

Derechos de autor

Formatos disponibles

Compartir este documento

Compartir o incrustar documentos

Opciones para compartir

¿Le pareció útil este documento?

¿Este contenido es inapropiado?

Copyright:

Formatos disponibles

For Scribd Upload

Cargado por

Copyright:

Formatos disponibles

Management Information System.

Information System (IS)

Information System( activities) .

Information System( activities) .

Information SystemRole of Computers .

A management information system (MIS)

MIS- Aim of MIS

A management information system (MIS)

A management information system (MIS)

A management information system (MIS)

Understanding Information Systems: A Business ProblemSolving Approach

Understanding Information Systems: A Business ProblemSolving Approach

Understanding Information Systems: A Business ProblemSolving Approach

Understanding Information Systems: A Business ProblemSolving Approach

Understanding Information Systems: A Business ProblemSolving Approach

Understanding Information Systems: A Business ProblemSolving Approach

Understanding Information Systems: A Business ProblemSolving Approach

Understanding Information Systems: A Business ProblemSolving Approach

Understanding Information Systems: A Business ProblemSolving Approach

A Business Problem-Solving Approach

The Role of Information Systems in a Business

Information Systems Services

FUNCTIONS of management information system (MIS)

FUNCTIONS of management information system (MIS)

Top Level of Management

Top Level of Management

Middle Level of Management

Middle Level of Management

Lower Level of Management

Lower Level of Management

Qualities of a good MIS manager.

Lower Level of Management

Importance of MIS to Organization

Types of Systems in an Organization

Types of Systems in an Organization

Types of Systems in an Organization

Types of Systems in an Organization

Types of Systems in an Organization

Systems from a Functional Perspective

Systems from a Functional Perspective

Systems from a Functional Perspective

Systems from a Constituency Perspective

Decision Support System (DSS).

Decision Support System (DSS).

Systems from a Constituency Perspective

Executive support systems:

Executive Information System (EIS).

Systems from a Constituency Perspective

Types of Business Information Systems

Types of Systems in an Organization

Intranets and Extranets.

Social: social issues with respect to data warehousing

Multidimensional Database System

Multidimensional Database System

Data Population e) Data Population

APPLICATION Service Providers (ASP)

APPLICATION Service Providers (ASP)

APPLICATION Service Providers (ASP)

The Software Capability Maturity Model

The Software Capability Maturity Model

The Software Capability Maturity Model

The Software Capability Maturity Model

Contemporary Approaches to Information Systems.