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University College of Entrepreneurship (Eti) BSC Level 300: F. K. O. Duodu
University College of Entrepreneurship (Eti) BSC Level 300: F. K. O. Duodu
University College of Entrepreneurship (Eti) BSC Level 300: F. K. O. Duodu
ENTREPRENEURSHIP (ETI)
Management Information
Systems
Course code:
MGT 312
TOPIC:
INTRODUCTION TO
MANAGEMENT INFORMATION
SYSTEM
However, what has changed is that we now enjoy a much higher level of integration
of system functions across applications, greater connectivity across both similar and
dissimilar system components, and the ability to reallocate critical computing tasks
such as data storage, processing, and presentation to take maximum advantage of
business and strategic opportunities. With increasing capabilities, future systems will
focus on increasing both the speed and reach of our systems to provide even tighter
integration combined with greater flexibility.
The Internet and related technologies and applications have changed the way
businesses operate and people work, and how information systems support business
processes, decision-making and competitive advantage.
MANAGEMENT
Management has been defined in a variety of ways, but for our purpose it
‘compromises’ the processes or activities that describes what managers do in the
operation of their organization; plan, organize, initiative and control operations.
INFORMATION
Information consists of data that have been retrieved, processed or otherwise used
for informative or inference purposes, arguments, or as a basis for forecasting or
decision making.
Data must be distinguished from information. Data are facts and figures that are not
currently being used in decision process.
SYSTEMS
A system can be described simply as a set of elements joined together for a common
objective. The system concept of MIS is therefore optimizing the output of the
organization by connecting the operating sub-system through the medium of
information exchange
This system utilizes computer hardware and software, manual procedure for
analysis, planning, control and decision making. The system do not take decisions
but they assist in providing a necessary information as an input to the decision
making process. MIS should provide information which is consistent, accurate,
timely, economically flexible and relevant. MIS can be computerized or manual. MIS
provides information in report format on regular basis to assist managers with
decision which occur frequently and can be anticipated.
STRUCTURE OF MIS
I) Lower level:-The bottom layer consists of information required for
transaction processing and inquiry processing.
II) Operational level:- This layer has the information which is required for day
to day performance of activities and their control.
III) Middle level:- This layer has the information which is useful for tactical
planning and decision making to implement the policy of top management.
IV) Top level:- This layer has information which is useful for strategies and
policy planning.
The objective of the MIS is to provide information for a decision support in the
process of management. It should help in such a way that the business goals are
achieved in the most efficient manner. Since the decision making is not restricted to
a particular level, the MIS is expected to support all the levels of the management in
conducting the business operations.
CHARACTERISTICS OF MIS
The MIS plays a vital role in management, administrations and operations of an
organization as it helps in information generation, communication, and problem
identification in the process of decision making.
The main features of MIS are:-
I) Management oriented: - The development of MIS starts after deciding the
management needs and keeping in view of overall objective of management.
II) Management directed:- A good MIS removes the lack of knowledge, enriches
experience and improves analytical abilities leading to better business
judgement.
III) Integrated system:- MIS binds together database of business system and
through information interchange, integrates the organization. It also provides
adequate development resources and removes the human and organizational
barriers to progress.
IV) Avoid redundancy:- Since MIS is an integrated system, it avoids unnecessary
inconsistency and redundancy in data gathering and storage.
V) Common data flow:-MIS provides common data flows, which try to utilize
minimum data processing efforts and minimize the number of output
document.
VI) Heavy planning element:- Designing and implementation of MIS require
detailed and meticulous planning of activities like acquisition and utilization of
resources.
VII) Common database:- MIS acts as a master that holds the functional sub-
system together. It achieves this aim by allowing access to different master
files of data to several functional sub-systems.
VIII) Flexibility:- MIS design should be flexible so as to provide alternate ways of
processing data and system should be easy to operate so that not much of
computers skills are required.
IX) Computerization:- MIS can be computerized because of its nature. This
provides speed, accuracy and consistency in creating and access of files.
COMPONENTS OF MIS
Management information system refers to the data, equipment and computers
program that are used to develop information for managerial use. The MIS consists
of following components which are as follows-
I) People: - People is the only living component of MIS which operates and
controls the other components of MIS. They enter, analyze and diagnose
data, so that useful information is produced and provided to top
executives for decision making.
II) Data process: - Data process uses different procedures, so that data can be
properly analyzed and effective information is generated. Procedures
explain to people how to operate the computer hardware, what program
to run, what data to use and what to do with the results.
III) Data communication: - There are different ways for communication of
data. It may be informed orally or in the form of written report. Written
forms are more appropriate than oral ones as it is permanent and
systematic way of organizing information.
IV) Information: - Data are facts and figures that are not currently being used
in decision process. Data is process by applying different procedures to
obtain information. It may be recorded into computer, storage media or
manual files and is retrieved whenever required.
V) System planning: - We have achieved a very high degree of automation
and combination sub-system in scientific, mechanical and factory
manufacturing operation. The system concept of MIS is therefore of
optimizing the output of the organization by connecting the operation sub-
system, through the medium of information exchange.
VI) Hardware and Software:- The hardware generally consists of computer
equipment on the other hand software consists of programs or
instructions given to the computer such as pay roll processing, invoices etc.
USES/BENEFITS/ROLE OF MIS
I) MIS ensures that appropriate and relevant data is collected from
various sources, processed and is sent further to needy destination.
II) It fulfills the needs of individual, group, management.
III) MIS helps in strategic planning, management control, operational
control and transaction processing system.
IV) MIS plays an important role in information generation, communication,
problem identification and decision making administration.
V) With good MIS support marketing, finance, production and personnel
functions increases efficiency.
VI) MIS creates structured database and therefore saves time.
VII) MIS brings clarity in communication and understanding, thus helps in
bringing degree of professionalism.
1. Feasibility study
This is the first stage of the systems life cycle. The scope and objectives of the
proposed system must be written down. The aim of the feasibility study is to
understand the problem and to determine whether it is worth proceeding. There are
five main factors to be considered:
Technical feasibility means investigating whether the technology exists to
implement the proposed system, or whether this is a practical proposition.
Economic feasibility has to do with establishing the cost-effectiveness of the
proposed system if the benefits do not outweigh the costs, then it is not worth going
ahead.
Legal feasibility determines whether there is any conflict between the proposed
system and legal requirements – for example, will the system contravene the Data
Protection Act?
Operational feasibility is concerned with whether the current work practices and
procedures are adequate to support the new system. It is also concerned with social
factors – how the organizational change will affect the working lives of those
affected by the system.
Schedule feasibility looks at how long the system will take to develop, or whether it
can be done in a desired time-frame.
The completion of this stage is marked by the production of a feasibility report
produced by the systems analyst. If the report concludes that the project should go
ahead, and this is agreed by senior managers, detailed requirements analysis will
proceed.
2. Requirements analysis
The second phase of systems analysis is a more detailed investigation into the
current system and the requirements of the new system.
Gathering details about the current system will involve:
o Interviewing staff at different levels of the organization from the end-users to
senior management.
3. System design
The design specifies the following aspects of a system:
• The hardware platform – which type of computer, network capabilities, input,
storage and output devices;
• The software – programming language, package or database;
• The outputs – report layouts and screen designs;
• The inputs – documents, screen layouts and validation procedures;
• The user interface – how users will interact with the computer system;
• The modular design of each program in the application;
• The test plan and test data;
• Conversion plan – how the new system is to be implemented;
• Documentation including systems and operations documentation. Later, a user
manual will be produced.
5. Implementation
This phase involves the installation of the new system or conversion of the old
system to the new one. The installation phase can include:
• Installing the new hardware, which may involve extensive re-cabling and
changes in office layouts;
• Training the users on the new system;
• Conversion of master files to the new system, or creation of new master files.
Review Questions