Management Information System - MISManagement Information System - MIS

bybyAshish Ukidve Ashish Ukidve

M.E , CSSLP, CISA ( USA)M.E , CSSLP, CISA ( USA)ISO 27001 LAISO 27001 LA

MIS in today’s environmentMIS in today’s environment Today MIS must be seen w.r.t. IT systems as all Today MIS must be seen w.r.t. IT systems as all

business is done thru ITbusiness is done thru IT Data when processed gives InformationData when processed gives Information It is useful for managing data or informationIt is useful for managing data or information For understanding MIS we have to understand For understanding MIS we have to understand

Information Systems and how they are developed or Information Systems and how they are developed or acquiredacquired

Management ( &) Information SystemsManagement ( &) Information Systems

Management essentials & Levels of management Management essentials & Levels of management What do information systems do?What do information systems do?MIS as an evolving conceptMIS as an evolving conceptMIS and Organizational FitMIS and Organizational FitMIS as a DisciplineMIS as a Discipline

44

Management: What is management?Management: What is management?PlanningPlanningOrganizingOrganizingLeadingLeadingControllingControlling

Management essentials….Management essentials….

55

PlanningPlanning

Goal settingGoal settingEnvironmental scanningEnvironmental scanningForecastingForecastingData collectionData collection

Management essentials….Management essentials….

66

OrganizingOrganizingStaffingStaffingCoordinatingCoordinatingDelegatingDelegatingUnderstandingUnderstandingProcedures/ PoliciesProcedures/ Policies

Management essentials….Management essentials….

77

Management essentials….Management essentials….

LeadingLeadingAuthorityAuthorityMotivatingMotivatingDirecting: Delegation of responsibilities activatingDirecting: Delegation of responsibilities activatingSupervisingSupervisingNegotiationNegotiationPersuadingPersuadingDue DiligenceDue Diligence

88

Management essentials….Management essentials….

Controlling: Resources- Money (capital), Controlling: Resources- Money (capital), manpower (people), materials, machines, manpower (people), materials, machines, movement (Distribution, flow), and Informationmovement (Distribution, flow), and Information

MeasuringMeasuringEvaluatingEvaluatingReportingReportingCorrective actionCorrective actionFeed backFeed back

99

Communicating: Goals/Objectives, standards Communicating: Goals/Objectives, standards of desirabilityof desirability

InformingInformingPersuadingPersuadingNegotiationNegotiationCorrective actionCorrective actionListeningListening

Management essentials….Management essentials….

Organisational LevelsOrganisational Levels

Four organizational levelsFour organizational levelsOperational personnelOperational personnelLower managementLower managementMiddle managementMiddle managementTop managementTop management

Responsibilities, decision-making styles, and Responsibilities, decision-making styles, and information system requirements vary information system requirements vary depending on where you are positioneddepending on where you are positioned

1111

MIS Raw Material- DATAMIS Raw Material- DATA

Information: What is information?Information: What is information? Raw material - DATARaw material - DATA

Stored factsStored factsinactive (they exist)inactive (they exist)technology basedtechnology basedgathered from various placesgathered from various places

1212

Information: What is information?Information: What is information? Processed data - transformed form dataProcessed data - transformed form data

meaningfulmeaningful Has perceived valueHas perceived value Has Surprise valueHas Surprise value Has news valueHas news value Presented as factsPresented as facts Domain based - business based Domain based - business based ModelModel

entity entity attributeattribute relationshiprelationship

Reduces Uncertainty?Reduces Uncertainty? Provides Competitive EdgeProvides Competitive Edge …………. Adds Value to business operations & decisions. Adds Value to business operations & decisions

1313

Information: What is information?Information: What is information?

Information is data that has been processed into a Information is data that has been processed into a form that is meaningful to the recipient (USER) form that is meaningful to the recipient (USER) and is of real or perceived value in current or and is of real or perceived value in current or prospective actions or decisions.prospective actions or decisions.

1414

Transforming Data Into Information

Data InputsData Inputs Information OutputsInformation Outputs

Capture

Manipulation

Storage

Provision of Accessat User Location

ExternalData

InternalData

Information System

Query Response

Decision Outcome

Expert-System Advice

Transaction Document

Report

OrganizationEnvironment

1515

Systems Concepts Systems Concepts Definition … Definition …

input-process-output an orderly arrangement of interdependent ideas input-process-output an orderly arrangement of interdependent ideas or constructs (ABSTRACT SYSTEM)or constructs (ABSTRACT SYSTEM)

a set of elements which operate together to accomplish an objective a set of elements which operate together to accomplish an objective (PHYSICAL SYSTEM)(PHYSICAL SYSTEM) Network: An Integrated environment for a specific set of tasks Network: An Integrated environment for a specific set of tasks General Model of a System: Input, process and output.General Model of a System: Input, process and output.

The features which define and delineate a system form its The features which define and delineate a system form its boundary. The system is inside the boundary and the boundary. The system is inside the boundary and the environment is outside the boundary.environment is outside the boundary.

a system is composed of subsystemsa system is composed of subsystems The interconnections and interactions between the subsystems are the The interconnections and interactions between the subsystems are the

INTERFACES.INTERFACES.

1616

SystemSystem

1717

System: Black Box or General View

System

EnvironmentEnvironment

Inputs Outputs

Constraints

Objectives

.

.

.

.

.

.

.

.

.

.

.

.

1818

A System and its Subsystems

EnvironmentSystem

Interconnection

Subsystems(components)

Constraints

Inputs Outputs Objectives

System Boundary

1919

Systems ApproachSystems Approach

Systems Approach:Systems Approach:Identify & establish the objective of the systemIdentify & establish the objective of the systemConsider the totality of its relationships with its Consider the totality of its relationships with its

environmentenvironmentCan not ignore the importance of the Can not ignore the importance of the

environment internal or external environment internal or external

2020

Systems ApproachSystems Approach

Identify its components and their interactions.Identify its components and their interactions.examples:examples:

Human ResourcesHuman Resources skills inventory systemskills inventory system managerial promotion systemmanagerial promotion system should they be separate or linked?should they be separate or linked?

Brokerage houseBrokerage house central client orcentral client or individual broker systemindividual broker system

TPS that has a very long response timeTPS that has a very long response time

2121

Systems ApproachSystems ApproachEffectiveness: the extend to which a systems achieves Effectiveness: the extend to which a systems achieves

its objectivesits objectivesEfficiency: consumption of inputs relative to outputsEfficiency: consumption of inputs relative to outputsUsability: the ability of the uses to use the systemUsability: the ability of the uses to use the systemSatisfaction: A subjective measure of "like" or usability Satisfaction: A subjective measure of "like" or usability

or effectiveness or effectiveness

2222

Systems TypesSystems Types

Deterministic versus probabilisticDeterministic versus probabilisticDeterministic: The interaction between the Deterministic: The interaction between the

parts or subsystems is known for certain;parts or subsystems is known for certain;example: a computer program which performs example: a computer program which performs

exactly to a set of instructionsexactly to a set of instructionsProbabilistic: A system that can be described Probabilistic: A system that can be described

in terms of probable behavior (a certain degree in terms of probable behavior (a certain degree of error);of error);

examples: An inventory system, a five year old examples: An inventory system, a five year old (who does not follow a certain set of instructions).(who does not follow a certain set of instructions).

2323

SYSTEM INTERDEPENDENCE

BUSINESSBUSINESS StrategyStrategy RulesRules ProceduresProcedures

ORGANIZATION ORGANIZATION INFORMATION SYSTEMINFORMATION SYSTEM

INTERDEPENDENCEINTERDEPENDENCE

SOFTWARSOFTWAREE

HARDWARHARDWAREE

DATABASDATABASEE

TELE-TELE-COMMUNICATIOCOMMUNICATIO

NSNS

Information System ComponentsInformation System ComponentsHardware – Servers, PCs, laptops, routers,

UPS etcSoftware – Application software, system

software etcData – data associated with real life eventsProcedures – logic to process data to

generate informationPeople – to operate procedures either on

computer or manually and also to consume the information generated

Business Information SystemsBusiness Information Systems

Characteristics of business information Characteristics of business information systems - systems - 4 main characteristics affect a business 4 main characteristics affect a business information system’s complexityinformation system’s complexity

Relationships with other systemsRelationships with other systemsBoundariesBoundariesSpecialized business needsSpecialized business needsSize of the companySize of the company

Information System ComponentsInformation System Components

Companies are classified based on their main activities:Production-oriented (industrial) companies that

manufacture & sell goodsService companies that mainly offer information,

services, or sell goods made by othersCombined industrial & service companies

Systems Development Life CycleSystems Development Life Cycle

Systems planningSystems analysisSystems designSystems implementationSystems operation and support

Systems Development Life Cycle…Systems Development Life Cycle… Systems planning

Preliminary investigation report Systems analysis

System requirements document Systems design

System design specification Systems implementation

Complete functioning information system Systems operation and support

Operational information system

Systems PlanningSystems Planning

Purpose – identify problem’s nature/scopeSystems request – begins the process &

describes desired changes/improvementsSystems planning – includes preliminary

investigation or feasibility studyEnd product – preliminary investigation report

Systems AnalysisSystems Analysis

Purpose is to learn exactly how the current system operates

Fact-finding or requirements determination is used to define all functions of the current system

This is done by interviewing people, collecting and studying documents and forms handled in a company

Writing down procedures along with diagrammatic representations

System Development OptionsSystem Development Options

OptionsDevelop a system in-housePurchase a commercial packageOutsource the developmentModify an existing systemStop development

The end product for this phase is the systems requirements document

Systems DesignSystems Design Purpose is to satisfy all documented requirementsPurpose is to satisfy all documented requirements Identify all outputs, inputs, files, manual procedures, & Identify all outputs, inputs, files, manual procedures, &

application programsapplication programs Avoid misunderstanding through manager and user Avoid misunderstanding through manager and user

involvementinvolvement End product is system design specification consisting of End product is system design specification consisting of

Tables designTables design Screen / dialogue boxes designScreen / dialogue boxes design Report / query designReport / query design Validation rules designValidation rules design Processing logic designProcessing logic design Deployment design Deployment design OthersOthers

Systems ImplementationSystems ImplementationConstruct/deliver information system Prepares functioning, documented systemWrite, test, document application programsUser and manager approval obtainedFile conversion / data conversion occursUsers, managers, IS staff trained to operate

and support the systemPost-implementation evaluation performed

Systems operation and supportSystems operation and support

New system supports business operationsNew system supports business operationsMaintenance changes correct errors or meet Maintenance changes correct errors or meet

requirementsrequirementsEnhancements increase system capabilityEnhancements increase system capabilityAfter several years of operation, systems After several years of operation, systems

MAY need extensive changes MAY need extensive changes Systems development life cycle ends with Systems development life cycle ends with

system replacementsystem replacement

Today’s Indian IndustryToday’s Indian Industry

Manufacturing Manufacturing TradingTradingBanking, Finance & InsuranceBanking, Finance & InsuranceServiceServiceAgriculture & agriculture productsAgriculture & agriculture productsGovt Sector – Pure Govt and Govt companiesGovt Sector – Pure Govt and Govt companies

Information System ApplicationsInformation System Applications

Called as Business ApplicationsCalled as Business ApplicationsThey can be stand-alone or integratedThey can be stand-alone or integratedThey can be distributed or centralisedThey can be distributed or centralisedThey can be non-web-based or web-basedThey can be non-web-based or web-basedThey can be text based or GUI basedThey can be text based or GUI basedThey can be custom-built or ready-made as a They can be custom-built or ready-made as a

productproduct

Some Business ApplicationsSome Business ApplicationsFunction oriented applications e.g. Purchase, Function oriented applications e.g. Purchase,

inventory processing, sales & distribution inventory processing, sales & distribution systems, share accounting, banking etcsystems, share accounting, banking etc

Integrated systems such as ERP e.g. SAP, Integrated systems such as ERP e.g. SAP, BaaN, JDE, Oracle FinancialsBaaN, JDE, Oracle Financials

Customer support such as TalismaCustomer support such as TalismaInsurance such as GenesisInsurance such as GenesisCentralised banking such as Finacle, Flexcube Centralised banking such as Finacle, Flexcube

etcetc

What a system does?What a system does? A system captures data – either off-line or on-lineA system captures data – either off-line or on-line This data is stored in a databaseThis data is stored in a database The data is processed either immediately or in batch The data is processed either immediately or in batch

modemode The result of processing may be for final human The result of processing may be for final human

consumption or fed to other applicationconsumption or fed to other application The data from transaction systems (or operations The data from transaction systems (or operations

systems) is uploaded in a batch mode to Data systems) is uploaded in a batch mode to Data Warehouse SystemsWarehouse Systems

DSS are built around Data Warehouse SystemsDSS are built around Data Warehouse Systems

Purchase to Pay CyclePurchase to Pay CycleGet Purchase requisition from depts - systemGet Purchase requisition from depts - systemCollate all requisitions – semi-systemCollate all requisitions – semi-systemCall quotations / tenders - manualCall quotations / tenders - manualEvaluate vendors - manualEvaluate vendors - manualSelect vendor - manualSelect vendor - manualPrepare & place purchase order – systemPrepare & place purchase order – systemDelivery of goods – manualDelivery of goods – manualGRNGRN

Purchase to pay cycle…Purchase to pay cycle…

Quality control – manualQuality control – manualApproval – systemApproval – systemSupplier submits bill/s – systemSupplier submits bill/s – systemApprove bills – systemApprove bills – systemPrepare and pay supplier – semi-systemPrepare and pay supplier – semi-systemClosure of cycleClosure of cycle

Sales & distributionSales & distribution

InquiryInquiry - Customer makes an enquiry about - Customer makes an enquiry about a product / productsa product / products

QuotationQuotation - - A quotation presents the A quotation presents the customer with a legally binding offer for customer with a legally binding offer for delivering a product or providing a service delivering a product or providing a service within certain fixed conditions. This offer is within certain fixed conditions. This offer is legally binding for the company within a legally binding for the company within a specified time period.specified time period.

Sales & distribution…Sales & distribution… Sales OrderSales Order - A Sales Order consists of one or several - A Sales Order consists of one or several

items containing the quantity of the material or service items containing the quantity of the material or service specified for the order. The total quantity can be specified for the order. The total quantity can be subdivided into schedule lines which contain different subdivided into schedule lines which contain different partial quantities and the relevant delivery dates.partial quantities and the relevant delivery dates.

DeliveryDelivery - Sales and distribution document for - Sales and distribution document for processing a delivery of goods. The delivery serves as a processing a delivery of goods. The delivery serves as a basis for : Planning material requirements, Picking, basis for : Planning material requirements, Picking, Creating shipping documents, Creating shipping units, Creating shipping documents, Creating shipping units, Transportation, Billing.Transportation, Billing.

GoodsGoods IssueIssue - A reduction in stock on hand in the - A reduction in stock on hand in the warehouse/stores warehouse/stores

Sales & distribution…Sales & distribution…BillingBilling - Creation of commercial invoice is - Creation of commercial invoice is

done as intermediate document (It is required done as intermediate document (It is required for preparation of Excise Invoice and posting for preparation of Excise Invoice and posting into account). This is to be based on Delivery into account). This is to be based on Delivery document. document.

ExciseExcise InvoiceInvoice - In order to generate an Excise - In order to generate an Excise Invoice number and update excise accounts, Invoice number and update excise accounts, the Excise Invoice will be created with the Excise Invoice will be created with reference to the billing document, by reference to the billing document, by specifying the date and the billing document specifying the date and the billing document number. number.

Payment Card ProcessPayment Card Process

and/or

IssuerAcquirer

Merchant

Cardholderuses card to

buy from

is a member of

is a member of

provides processing services to

issues cards to

may or may not be the same as

Typical system modulesTypical system modules

?? Questions ???? Questions ??