Management Information

Systems
Syllabus
S.No. Topic Hours

Information Systems – meaning and four components; Information Systems in Organizational

1. 1.5
Context, Organizational change using IS, IS and Culture

Robert Anthony’s Management Hierarchy, Simon’s Categorization of Decisions and phases of

2. decision making, Gorry and Scott-Morton Framework of MIS, Categorization of 3
Organizational Information Systems – hierarchical, process and functional perspective

Transaction Processing (TPS) versus Management Information System (MIS), Goals of MIS,
3. 1.5
Inputs and Outputs of MIS, functional and technical perspectives

4. MIS Approach - Design, Implementation and Monitoring aspects of MIS Systems 3

Management Information Value Chain - Decision Support Systems, Decision Making System,
5. Expert System, Executive Information Systems, Relationship and role of MIS in network 4.5
economy, IS Cycle

6. Dimensions of IS Integration, Enterprise Systems 1.5

7. Supply Chain Management, Customer Relationship Management 3

8. Knowledge Management, Business Intelligence 3

9. Enterprise Application Integration and Flexibility with Service Oriented Architecture 3

10. Network Economics, the Economics of Information, Disruptive Technology 1.5

11. Electronic Commerce – Internet Services, e-Commerce and e-Business, Implications 3

12. Challenges, Opportunities, Trends and Best Practices of MIS 1.5

What is MIS?

MIS enables the business to make intelligent, fact-

based decisions

Aggregate Present Enrich Inform a

Data Data Data Decision

Database, Data Mart, Data Reporting Tools, Add Context to Create Decisions are Fact-based
Warehouse, ETL Tools, Dashboards, Static Information, Descriptive and Data-driven
Integration Tools Reports, Mobile Reporting, Statistics, Benchmarks,
OLAP Cubes Variance to Plan or LY
CPU – Content, Performance, Usability
• Content

• The business determines the “what”, MIS enables the “how”

• Performance

• Minimize report creation and collection times (near zero)

• Usability

• Delivery Method →Push vs Pull

• Medium → Excel, PDF, Dashboard, Cube, Mobile Device

• Enhance Digestion → “A-ha” is readily apparent, fewer clicks

• Tell a Story → Trend, Context, Related Metrics, Multiple Views

What is Business Intelligence so important

Time

Data Opinion
(aka Best Professional
Judgment)
Making Business
Decisions is a Balance

In the absence of data, business decisions are often made by the HiPPO.
With MIS, we can get data to you in a timely manner.
MIS and Business objectives
Todays Agenda
• Information Systems meaning and its components;
• Information Systems in Organizational Context,
• Organizational change using IS,
• IS and Culture
 Concept of MIS
▪ Businesses have been using information for decision making
for centuries, but MIS is a comparatively recent concept.

▪ With computers and IT advancements, MIS refers to computer

based information systems (CBIS)

▪ The electronic data processing in businesses metamorphosed

into systems or IT departments

▪ MIS involves three elements, viz., management, information,

and systems

.
 Management
▪ Managers use information systems in
organizations

▪ Managerial responsibilities and duties vary

at various levels of the organization

▪ Based on the types of jobs they perform or

nature of decisions they take within the
organization, managers are categorized into
three categories: senior level, middle level,
and operational level.

.
 Information
▪ MIS: Information is the next important element in MIS, which
is considered a valuable resource in the successful running of a
business

▪ Information is data that is processed and presented in a form

to assist decision-makers

▪ Data, in contrast, are streams of raw facts representing events

occurring in organizations or the physical environment before
they have been organized and arranged into information

.
 System
▪ The third element in the ‘MIS’ is the system

▪ A system is a set of elements which are joined together

to achieve a common objective. These elements are
interdependent and interrelated.

▪ For every system, the set up elements are input,

process, and output. The input(s) are processed and
converted into output(s).

.
 Define MIS
▪ Management information system can be
understood as a system that enables people to
gather, consolidate, and compute data, and present
the information in a meaningful and intelligent
(that makes sense to the user) format, either with
the help of computers or manually.

▪ It is a set of interrelated components that collect

(retrieve), process, store, and distribute
information to support decision making,
coordination and control in an organization.

.
 Types of Information Systems
The following six types of
information systems :
• TPS
• OAS
• KMS
• MIS
• DSS
• EIS

.
 Operations Support Systems
TPS: Transactions processing systems are the basic business systems that work at the
operational level of the organization

OAS: Office automation systems include applications for workgroup communications and
productivity. Office automation tools like world processors, spreadsheets, emailing, storage,
and retrieval of electronic files come under this category.

KMS: The collaborative activities are knowledge works and the system that promotes,
preserves, distributes, and manages the knowledge works is known as knowledge
management system.

.
 Management Support Systems
MIS: The MIS provide managers with reports and on-line access to the organizations’
current performance and historical records that include routine, periodical, and exception
reports

DSS: Decision support systems help managers in decision making by providing analytical
reports. The data generated at TPS is processed to generate reports, graphs, and further
analysis to be used by managers for making decisions

EIS: Executive information systems provide critical information from a variety of internal
and external sources to the top management for strategic decisions. Strategic and long term
planning decisions are made by the senior and top executive level management.

.
Components of Management Information
Systems

.
 Components of MIS
▪ Hardware: In addition to resources like desktops, laptops, and servers, hardware resources cover
peripherals like printers, storage devices.

▪ Software: These applications are used for processing the data and presenting it in meaningful
form for managerial decision making. Software systems not only include applications but system
software, utilities, programming languages, procedures, and operating systems.

▪ Data: Data is the most indispensable component of an information system and a valuable
resource for an organization. Data resources are more than just raw material for information
systems. Data can be independent of applications and can be created, stored, and retrieved with
the help of modern sophisticated database management tools.

.
Contd.

▪ Network: Networks and communication resources are fundamental components of

computer based management information systems. They provide communication
between two computers or a cluster of computers. Telecommunications networks consist
of computers, communication processors, and other devices used to control the
communication.

▪ People: People resources are very critical component of any management information
system as they are instrumental in using and managing the systems. These are the set of
people who spend their time in creating, sharing, and disseminating the information
within and outside the organization.

.
 Role of MIS in Organizations
▪ MIS play a very important role at three
levels in the organization.
▪ They ensure that correct data is
entered into, processed, and further
disseminated to the required places.
▪ They ensure accurate information at
the right time to the management for
taking the right decision.
▪ MIS help the management personnel
by providing data for strategic decisions
and competitive advantage of the
organization.

.
 Digitization
• Digitization is the
automation of
existing manual and
paper-based
processes, enabled
by the digitization of
information; from an
analog to a digital
format.

Lets understand few concepts

 Digitalization
• digitalization is about
systems of engagement
and systems of insight,
Digitization leveraging digitized data
and processes.
• Digitization is the
automation of existing
manual and paper-based
processes, enabled by the
digitization of
information; from an
analog to a digital format.

Lets understand few concepts

 Digital
transformation
• Is the profound and
accelerating
Digitalization transformation of HR
• digitalization is about activities and processes,
systems of engagement competencies and models
and systems of insight, to fully leverage the
leveraging digitized data changes and
and processes. opportunities of digital
technologies

Digitization
• Digitization is the
automation of existing
manual and paper-based
processes, enabled by the
digitization of information;
from an analog to a digital
format.

Lets understand few concepts

 People

Digital
transformation Processes

• Is the profound and

Digitalization
• digitalization is about
systems of engagement
and systems of insight,
leveraging digitized data
and processes.
accelerating Technology
transformation of HR
activities and processes,
competencies and models
to fully leverage the
changes and
opportunities of digital
technologies

Digitization
• Digitization is the
automation of existing
Process
Technology manual and paper-based
processes, enabled by the
digitization of information; Technology

from an analog to a digital

format.
Role of MIS at Three Levels of the Organization

.
 Trends in MIS
▪ MIS was a management tool to help management make informed
decisions for their business.
▪ With CBIS, the effectiveness of MIS has improved.

.
 Business Processes
▪ Business processes refer to the way the work in the organization is planned,
distributed, and coordinated to produce a product or service
▪ They consist of concrete workflows of material, information, and knowledge, as a
set of activities, to perform the job
▪ Every business is a collection of business processes. The related business processes
are grouped under major processes or functions like sales, purchases, inventory,
warehousing, manufacturing, personnel etc.

.
Examples of Business Processes

.
MIS from Functional Perspective

.
 MIS: Tool of Organizational Change
▪ The management may convert the event of
IS implementation into an opportunity to
bring in metamorphic changes in the
organization
▪ Information technology can bring in various
degrees of organizational change depending
on how the management views it and plans
it:
• automating the processes
• rationalization of processes
• business process reengineering
• paradigm shift

© Oxford University Press 2013. All rights reserved.

MIS: Tool of Organizational Change

▪ Automating
▪ Rationalization
▪ reengineering
▪ paradigm shift

▪ What role does culture play?

© Oxford University Press 2013. All rights reserved.

Quick review of Agenda and what was covered
• Information Systems meaning and its components;
• Information Systems in Organizational Context,
• Organizational change using IS,
• IS and Culture
Then lets answer these questions
• Can modern day business managed without MIS!
• IS MIS all about automation!
Today’s agenda
• Robert Anthony’s Management Hierarchy,
• Simon’s Categorization of Decisions and phases of decision making,
• Gorry and Scott-Morton Framework of MIS,
• Categorization of Organizational Information Systems – hierarchical,
process and functional perspective
Robert N. Anthony
• Robert N. Anthony has described three levels of management
activities, which are:-
• Operational control
• Management control
• Strategic planning.
Simon’s Categorization of Decisions and
phases of decision making
Gorry and Scott-Morton Framework of MIS
Categorization of
Organizational
Information
Systems –
hierarchical,
process and
functional
perspective
Review of Today’s agenda
• Robert Anthony’s Management Hierarchy,
• Simon’s Categorization of Decisions and phases of decision making,
• Gorry and Scott-Morton Framework of MIS,
• Categorization of Organizational Information Systems – hierarchical,
process and functional perspective
Todays Agenda
• Transaction Processing (TPS) versus Management Information System
(MIS),
• Goals of MIS,
• Inputs and Outputs of MIS,
• functional and technical perspectives
TPS v/s MIS
TPS v/s MIS
Goal of MIS
Role of MIS
Input and
output of
MIS
Input and
output of
MIS
 Technical
Prespective
of MIS

▪IS strategy development

▪IS technology architecture
▪IS resource management
 Technical
Prespective
of MIS
 Technical
Prespective
of MIS
 MIS
Implementat
ion
Control process
One of the major activity in execution
process is to control the project, this
can be done via
▪ set the performance standards
▪ compare these standards with actual
performance
▪ take necessary corrective action.
In projects there is a fourth step: report
actions to all relevant stakeholders.

76
Project Monitoring
▪ The purpose of project monitoring is to
observe and track how well the project is
doing, and to forecast how it will do in the
future.
▪ Project monitoring involves
▪ collecting data – directly from project
performance standards
▪ Interpreting it – comparing against goals
▪ Reporting information – what to report all or
exception!, frequency of reporting

77
PROJECT CONTROL EMPHASIS
▪ Project control addresses five areas:
▪ Scope - Scope control is implemented through the change control
system and configuration management
▪ Quality – Quality management plan, Technical performance
management
▪ Schedule – use time buffer, avoid multitasking, frequently report
activity status, publicize consequence of delay or early finish
▪ Cost - at both the work package level and the project level, using the
cost account structure and PCAS
▪ Procurement - responsible for the quality, schedule, and cost of all
aspect for the project

78
 Challenges of Implementation
▪ IS implementation can pose some unexpected organizational
challenges and changes in its structure and culture
▪ These challenges can be studied under:
• End-user resistance
• Change management

© Oxford University Press 2013. All rights reserved.

 Approaches to Implementation Roll-out
▪ There are various methodologies or approaches to system
implementation in the organization.
▪ A methodology is a tried and tested roadmap to perform a task.
▪ An organization can choose the best roll-out strategy to suite its
character and culture.
▪ The following four approaches are the most popular implementation
roll-out choices:
• Big bang
• Pilot
• Phased
• Parallel

© Oxford University Press 2013. All rights reserved.

Review of Today’s agenda
• Transaction Processing (TPS) versus Management Information System
(MIS),
• Goals of MIS,
• Inputs and Outputs of MIS,
• functional and technical perspectives
Data Warehousing
Definition of a Data Warehouse

“ An enterprise structured repository of subject-

oriented, time-variant, historical data used for
information retrieval and decision support. The
data warehouse stores atomic and summary data.”
Data Warehouse Properties

Subject Integrated
Oriented

Data
Warehouse

Non Volatile Time Variant

Subject-Oriented
Data is categorized and stored by business subject
rather than by application
OLTP Applications Data Warehouse Subject

Equity
Plans
Shares
Customer
financial
Insurance information

Savings
Loans
Integrated
Data on a given subject is defined and stored once.
Savings

Current
accounts

Loans Customer

OLTP Applications Data Warehouse

Time-Variant
Data is stored as a series of snapshots, each
representing a period of time

Time Data
Jan-97 January
Feb-97 February
Mar-97 March
Nonvolatile
Typically data in the data warehouse is not updated or delelted.

Operational Warehouse

Load

Insert Read Read

Update
Delete
Differences between Operational Database
Systems and Data Warehouses
Changing Data
First time load

Warehouse Database
Operational Refresh
Database

Refresh

Why have separate

warehouse database
• Performance Refresh
• Complexity
Data Warehouse (OLAP) Versus OLTP
Property Operational (OLTP) Data Warehouse (OLAP)
Response Sub seconds to
Seconds to hours
Time seconds

Operations DML Primarily read only

Nature of Data 30-60 days Snapshots over time

Data Organization Applications Subject, time

Size Small to large Large to very large

Operational, Internal,
Data Source Operational, Internal External

Activities Processes Analysis

Data Warehousing: A Multitier Architecture
Data Warehouse Models: Enterprise Warehouse,
Data Mart, and Virtual Warehouse
• An enterprise warehouse collects all of the information about subjects
spanning the entire organization.
• It provides corporate-wide data integration, usually from one or more
operational systems or external information providers, and is cross-
functional in scope.
• It typically contains detailed data as well as summarized data, and can
range in size from a few gigabytes to hundreds of gigabytes, terabytes, or
beyond.
• An enterprise data warehouse may be implemented on traditional
mainframes, computer superservers, or parallel architecture platforms.
• It requires extensive business modeling and may take years to design and
build.
Data Warehouse Models: Enterprise Warehouse,
Data Mart, and Virtual Warehouse
• A data mart contains a subset of corporate-wide data that is of value to a specific
group of users. The scope is confined to specific selected subjects. For example, a
marketing data mart may confine its subjects to customer, item, and sales.
• The data contained in data marts tend to be summarized. Data marts are usually
implemented on low-cost departmental servers that are Unix/Linux or Windows
based.
• The implementation cycle of a data mart is more likely to be measured in weeks
rather than months or years. However, it may involve complex integration in the
long run if its design and planning were not enterprise-wide.
• Depending on the source of data, data marts can be categorized as independent
or dependent. Independent data marts are sourced from data captured from one
or more operational systems or external information providers, or from data
generated locally within a particular department or geographic area.
• Dependent data marts are sourced directly from enterprise data warehouses..
Data Warehouse Models: Enterprise Warehouse,
Data Mart, and Virtual Warehouse
• Virtual warehouse: A virtual warehouse is a set of views over
operational databases.
• For efficient query processing, only some of the possible summary
views may be materialized.
• A virtual warehouse is easy to build but requires excess capacity on
operational database servers