TOPICS◦ MIS (Management information system)

◦ DSS(Decision support system)

MANAGEMENT INFORMATION SYSTEM

Data vs. Information

◦ Data A “given,” or fact; a number, a statement, or a picture Represents something in the real world The raw materials in the production of information.

◦ Information Data that have meaning within a context Data in meaningful form Data after manipulation.

Data, Information, and Systems

What Is a System?

◦ System: A set of components that work together to achieve a common goal

◦ Subsystem: A system that is part of some larger system

Data, Information, and Systems

. Why Do People Need Information?

◦ Individuals - Entertainment and enlightenment

◦ Businesses - Decision making, problem solving and control

. Information Systems

An organized combination of people, hardware, software, communication networks, and data resources .

To collect, transform, and disseminates information in an organization.

Information system

Manual system

Computer based information system

Information system types

Generating Information◦ Computer-based ISs take data as raw material,

process it, and produce information as output.

How does it works??

Figure 1.1 Input-process-output

Classification of IS

M = Management = Practical Use of Power of Decision Making

I = Information = Useful Data

S = System = Technique of Use of Data for Business

Now, we are able to introduce Management Information System.

MIS STANDS FOR…..

A management information system (MIS) is a system that provides information needed to manage organizations effectively.

MIS Provide information in the form of reports and displays to managers to support business decision making.

It is a sub part of information system.

What is “MIS”??

An MIS provides managers with information and support for effective decision making.

provides feedback on daily operations

Output(reports), are usually generated through accumulation of transaction processing data

Each MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization.

Management information system (MIS)

Transaction processing systems, (routine transactions)like payroll, shipping, or sales orders.

Office automation systems, like word processing, electronic mail, and digital filing.

Examples of MIS

Routine information for routine decisions.

Operational efficiency.

Use transaction data as main input.

Databases put together MIS in different functional areas.

MIS Helpful for..

To design and implement man-machine procedures, processes, and routines that

provide suitably detailed reports in an accurate, consistent, and timely manner.

objective

Scheduled reports Produced periodically, or on a schedule (daily, weekly,

monthly)

Key-indicator report Summarizes the previous day’s critical activities Typically available at the beginning of each day

Demand report Gives certain information at a manager’s request

Exception report Automatically produced when a situation is unusual or

requires management action

Outputs of MIS

Provides reports with fixed and standard formats◦ Hard-copy and soft-copy reports

Uses internal data stored in the computer system

MIS eliminates redundant data

End users can develop custom reports

Requires formal requests from users

It promotes security system by providing only access to authorized users.

Characteristics of a MIS

Provides support to managers as they work to achieve corporate goals.

Enables managers to compare results to established company goals and identify problem areas and opportunities for improvement.

Management Information Systems for Competitive Advantage

Applications of MIS.

Provide financial statements and performance reports to assist in the planning, monitoring and implementation of strategy.

  MIS systems can also use these raw data to

run hypothetical scenarios like ‘what if’ questions.

For instance, MIS systems can provide predictions about the effect on sales that an alteration in price would have on a product.

*Strategy Support

  MIS provide a valuable time saving benefit to

the workforce.

In past business information had to be manually processed for filing and analysis

Now it can be entered quickly and easily onto a computer by a data processor, allowing for faster decision making and quicker reflexes for the enterprise as a whole.

* Data Processing

MIS also be of use as a Management by Objectives (MBO) tool.

MBO is a management process by which managers and subordinates agree upon a series of objectives for the subordinate to attempt to achieve within a set time frame.

Objectives are set using the SMART ratio: that is, objectives should be Specific, Measurable, Agreed, Realistic and Time-Specific.

Management by Objectives

a) Quicker information availability

b) Anytime anywhere access to information

c) Promotes non redundancy

d) Quick decision-making

e) Fast actions undertaken

f) Effective productivity

g) Reduced transaction rate

Impact of MIS on business

It Facilitates planning.

It Minimizes information overload.

MIS Encourages Decentralization.

It brings Co ordination(connects all decision centers in the organization).

It makes control easier.

Reduce paper work.

MIS assembles, process , stores , Retrieves , evaluates and Disseminates the information .

Benefits of MIS

Allocation of budgets for MIS upgrades.

Highly sensitive requires constant monitoring

Quality of outputs governed by quality of inputs

Effectiveness decreases due to frequent changes in top management

lack of flexibility to update itself.

Unemployment

Drawbacks of MIS

1. Workforce downsizing

2. Information overload

3. Employee mistrust

4. Difficult to built

5. Security breaches

Challenges

1. Enhanced global competitiveness

2. Capture market opportunities

3. Support corporate strategy

4. Enhance worker productivity

5. Improve quality of goods and services

Opportunities

Through the MIS, the information can be used as a strategic weapon to counter the threats to business, make businesses more competitive, and bring about the organizational transformation through integration.

A good MIS also makes an organization effective.

Conclusion

Decision support system

Dss used to describe a computer-base system designed to help decision makers use data, knowledge &

communication technology to identify problems & make decision to solve

those problems.

Categories of dss

Dss system can be separated into seven broad categories,

Communication driven DSS Data driven DSS Document driven DSS Knowledge driven DSS Model driven DSS Spreadsheet base DSS Web based DSS

communication driven dss

C-D DSS is a type of dss that enhance decision making by enabling communication & sharing of information b/w the group of people.

Data- driven dss

Data Driven DSS are a form of support system that focuses on the provision of internal & sometime external data aid decision making.

Document- driven dss

Document driven DSS are support system designed to convert documents into valuble business data.

the three primary forms of data used in document driven DSS are,

oral written videos

Knowledge driven dss

Knowledge driven DSS are systems designed to recommand action to user. K-d DSS model uses special rules stored in computer or used by a human to determine whether a decision should be made. These rules or fact are used in order to make a decision.

Model Driven DSS

Model Driven DSS is when decision maker s use statistical, simulation or financial model to come up with a solution.

Spreadsheet- base

Spreadsheet offers decision makers easy to understand representation of large amount of data. Spread sheet data is arrange in such a way as to make it easy to convert the data into visualisation to further aid decision makers.

Web Based DSS

The term simply describes any decision support system that is operate through interface of web browser, even if the data used for decision support remains confined to a legacy system such as a data warehouse.

Scope of DSS

Enterprise wied DSS

Desktop DSS

Enterprise-Wide DSS

Enterprise – wide DSS are system that are linked into large warehouse, & offer decision support to manager at all level of an enterprise.

Desktop DSS

Desktop Dss are much smaller application designed to be run from a desktop PC. i-e microsoft excel

Components of DSS

Analytical model Specialized database Decision maker’s own judgement An interactive, conputer base modeling

porcess to support the making of semistructured business decision.

example

sales manager typically rely on the MIS to produce sales analysis reports. These reports contain sales perforance figures by product line, sales legion, and so on. a DSS, on the other hand, would also interactively show a sales manager the effect on sale perfomance of change in a verity of factors (promotional exp: & sales compensation.)

The DSS could the use several criteria( market sari & gross margined)to evaluate & rank alternative combination of sales performance factors.

Using DSS

WHAT – IF ANALYSIS Sensitivity Analysis Goal seeking Analysis Optimization Analysis

What- if analysis

A user make changes to variables, or a relationship among the variables, & observes the resulting changes in the values of other variables.

Seensitivity analysis

Observing how repeated changes to a single variable affect other variables. I-e lets cut advertising by $100 repeatedly so we can see its relationship to sale.

Goal Seeking Analysis

Making repeated changes to selected variables until a chosen variable reaches a target value. Example: lets try increases in advertising until sales reach $1 million.

Optimization analysis

Finding an optimum value for selected variables, given certain constraints. Examples: what is the best amount of advertising to have, given our budget & choice of media?

Thank You Class!