Date: 05.10.

20 MITO 8107 2nd class

Today was the second class of Prof S.S.Dubey. Today was also the birthday of Prof Dubey. We all
wished him a very happy birthday on this occasion. He started the class with following poem.

आँ खे अपनी बं द करो और जरा दे र तक याद करो I

याद करो जब कहा था उसने , सिं चो इसको इसे लगाकर अपनी क्यारी में I

इसमें एकदिन फू ल खिलें गे ,रोज सबे रे उठकर तु म इसको दे खा करते थे I

मम्मी ने तब मना किया था ,नहीं इसे तु म छुओ छे ड़ो I

बस थोड़ा सा पानी डालो ,और बचाओ ते ज हवा से I

उसी तरह मै ने भी एक सिख तु म्हे दी है ,जो तु म अपने मन की क्यारी में रोपो I

मु झे बताओ जब जब इसमें फू ल खिलें गे ,बतलाना अने क बरसों बाद हम मिलें गे I

यद् कर दे ना वो पौध रोप की सिख छोटे से मन में ,याद मु झे भी कर ले ना यदी समय मिलें गे I

Indeed, it will become a very emotional poem once we leave after completing our FMS course.

Sir started on topic i.e support to management by MIS.

Management process is executed through a variety of decision which is taken at different steps of
planning, organising, staffing, directing, coordinating and control. Decision being taken at different
stages has been tabulated as follows:

MIS Support to the Management

Decisions in Management

Steps in Management Decision

A selection from various alternatives – strategies,

Hence, we can say Planning
resources, methods, etc.

that objective of Organisation

A selection a combination out of several combinations of
the goals, people, resources, method, and authority.
MIS is to provide
Staffing Providing a proper manpower complement.
information for
Choosing a method from the various methods of directing
taking decision in Directing
of efforts in the organisation.
process of Coordinating
Choice of the tools and the techniques for coordinating the
efforts for optimum results.
management.
A selection of the exceptional conditions and providing the
Controlling
decision guidance to deal with them.
Organisation is
generally
represented as management pyramid where top management is supported by middle management
who in turn control and direct operation level people in day to day activity.
At the bottom of pyramid is transaction processing system that processes data for day to day
transaction. Management reporting system summarises data from transaction processing system
and produces report for middle managers. Managers need specialised system in respective area for
decision making called decision support system. Top management needs summery of performance
of various function to arrive at performance of different periods. They also need external
information to compare company performance with respect to competition.

Management pyramid and MIS Hierarchy is as follows:

MIS in traditionally set organisation mirrors the organisation pyramid.

Supporting
Organization
Information management
System
levels

Executive
Information
systems

Management Top Managment

reporting
systems And
Decision
Support
systems Middle Management

Transaction
processing systems
Operational level
managers and
functionaries

Changing Role of MIS in digital Age

MIS managers who lead the MIS function is also changing with change in
world. Accordingly, MIS function is also undergoing tremendous
transformation from technology centre to Business centre, cautious optimiser
to innovation driver, owner of IT resources to orchestrator of IT services.

Following figure shows dramatic change expected in role of MIS:

 Changing Role of MIS Managers in the Digital Age

Traditional Role of MIS

. Technology centric
. Cautious optimizer
. Slow speed actor
. Owner of IT resources

Digital Economy Role of MIS

. Business Centric
. Innovation driver
. Agile performer
. Technology orchestrator

Constituent of MIS:

MIS comprises several elements that make it work properly. The five major constituent of MIS is as
follows:

Constituents of MIS
MIS is not just software but much more

The five major constituents are:

People – users and information systems professionals.

Business processes- define before software development.
Data – MIS’s job is to collect, store, process and present data.
Hardware, networking systems
Software – not only the application software but the system software such as
operating systems, data base management systems, programming language, etc.

Evolution of MIS Development Approach:

Traditional method of software development is follows staged approach as described by waterfall

method. The model was again changed into spiral model where a step of prototype after each
iteration was added. This change was to ensure that risk of final software not meeting original
requirement can be minimised. Traditional approach i.e. waterfall method is as follows.
 Evolution of MIS Development Approaches
Traditional Approach : Waterfall Method

System requirement

Software requirement

Analysis

Program Design

Codling

Testing

Operations

The upward arrow shows it era the interaction between the various phases to successive steps

MIS development split into two tier architecture, one following slow pace legacy development called
traditional MIS and other fast paced innovation centric approach called Digital MIS. Combining the
team for business development and operation together the rapid development of MIS can be
achieved. Details of two speed MIS is as follows:

Evolution of MIS Development Approaches

Modern Approach : Two – Speed MIS

Executive Innovation
System of
Information for customer
innovation
systems intimacy
Management Digital MIS
Traditional Competitive
reporting systems supporting
MIS And Decision differentiators System of
Support systems on speed, agility
Innovation
supporting different ion
Stability and features
Management
Reporting
systems
Emerging
Transaction technology in System of record
processing operations
systems

Management effectiveness and MIS:

Nagandhi Estafen provide a good model for analysis of management effectiveness in achieving goal
and objectives. Model pus a lot of emphasis on management philosophy and environment factors on
which effectiveness is dependent.

Environmental factors provide opportunities to survive and grow with certain constraint. It is difficult
to control. It is left with management to change its philosophy towards various players of business
i.e. employee, consumers, suppliers, government, community and shareholder. Attitude towards
employee, consumers are required to be changed for higher satisfaction.

Management practises. therefore, emerge out of management philosophy and environment in

which it operates. So, design improves management effectiveness leading to enterprise
improvement. Details of Nagandhi Estafen model is as follow:
 Management Effectiveness and MIS
Management Philosophy Management
practices
Attitudes to wards
employees, Planning Management
consumers, organising effectiveness
suppliers, staffing
government Directing
community, coordinating
shareholders. controlling

Environment Factors
Social, Economical,
Educational,
Political, Legal.
Enterprise
Effectiveness

Management effectiveness start with setting of goal, objective, and Targets. Goal are long term
aims , objectives are short term milestone where as targets refer to physical achievement in
organisation business. Difference between these identity can be understood with example in
different three organisation as follows.

Management Effectiveness and MIS

Management effectiveness id archived by setting up Goals, Objectives and Targets

Manufacturing Organisation Hospital State Transport Organisation

GOALS Be a leader in the household Be a hospital Connect all villages of population

consumer goods industry, with providing total 50000 and above by S.T. Service.
modem amenities. service to the
patients.
OBJECTIV Provide complete product range in Establish 300-bed Manage state transport expense in
ES processing. hospital in five three years at the rate of ₹5 per
years. kilometre travel.
TARGETS 20 percent growth per annum in Achieve ₹ 800 per Achieve 90 percent average seat
turnover . bed per day occupancy every day .
earnings.

MIS: A Tool for Implementation of Management Process

Setting of goal objective and targets help to pull the resources of organisation in one direction and
solve. Achievement of targets help in accomplishing objective and accomplishment of objective
leads to achievement of goal.

Modern business has become more technology oriented and manager is required to up to date on
technological advancement. MIS therefore, is a tool for effective execution of management
processes. Process of management requires a lot of data and information for execution of plan.
Decision and action are promoted due to lot of feedback given by control system incorporated in
management system.

If effectiveness of business has to be achieved it has to rest on business information. If efficient

information support is to be provided it call for a system with goal of generating management
information.
Organisation as a system:

A system is an assembly of elements arranged in local order to achieve certain objective. According
to Leavitt an organisation should be viewed as a socio- technical system consisting of people. Task.
Technology, culture and structure. Model is shown below.

Organisation as a system
An organisation should be viewed as a socio– technical system
consisting of people, tasks, technology, culture and structure.

Tasks

Culture People
Goal

Structure Technology

modified model of the organisation system

Organisation should be built in such a fashion that it adjusts with change in environment and that
the goals and objectives are achieved. If sub system goal and objectives are not congruent with that
of corporate organisation. Poor performance, resistance to change and Non-attainment of corporate
goal will be its consequences.

All organisation and their business go through different phases of growth cycle as, introduction,
Growth, maturity, and decline. Each phase generates new goal to be served. If changed or displaced
goal are not reflected in organisation as a system, the organisation is bound to suffer from decay.
The above phenomenon is described below as S Curve or sigmoid.

Organisation as a system
All organisations and their business go through the different phases of growth
cycle in stages as, introduction, growth, maturity and decline.

Each phase generates new goals to be served.

Maturity
Process Growth
Phase
Decline

Introduction Time

MIS for digital firm:

Complete Changeover to digital platform makes a organisation and its activity more flexible,
profitable, competitive and efficient than traditional people, paper and process driven organisation.
In a digital firm relationship with customer, supplier and employees are digital, meaning all
transaction. Communication, pictures, images, drawing, date and information are exchanged
through web and internet using enterprise software.

Conventional design of MIS designed to throw information on where, what, when in standard report
format is totally ineffective and useless. Following is a structure of conventional MIS.

Conventional design of MIS designed to throw information on ‘Where, What, When’

in standard report format is no longer effective and useful.
Executive
Information
System (EIS)

Data
Warehousing and
Mining Systems

Exception Reporting
Systems

Periodical Reporting Systems

ERP, SCM, CRM, PLM, and Home grown

Legacy Systems

Basic Data & Information capturing and Transaction

Processing Systems

IS Structure of Conventional Design of MIS

MIS design for digital firm has to focus on business strategy, key results area, critical success factors,
monitoring key performance indicators (KPIs) and key business measures as follows.

MIS for a Digital Firm

The MIS design for a digital firm has to focus on business strategy, key result
areas, critical success factors, monitoring key performance indicators (KPls) & key
business measures. Dash Board
Score Card
Balance Score
Card

Executive
Information systems

Knowledge Mgt. Content Mgt

systems

Data warehousing and Mining Systems

ERP, SCM, CRM, PLM, and Home grown Systems

Basic Data and information capturing and Transaction

Processing Systems.

MIS Model of a Digital Firm Focusing on Strategy.

Focus on MIS in digital firm needs shift in one-time information to just in time actionable information
which is a result of analytical processing of business and strategy behind it. This is best handled by
introducing introduction system designed to produce balance score card, score card and dash board.
The MIS in digital firm is strategy design of MIS. This completes the chapter of MIS in digital age.
Now the next learning started on chapter E-Business enterprises: A digital firm.

So, following are the learning objective of this new chapter.

Lerning objectives
E-enterprise
Conv organisation VS E-enterprises
Organisation
Drivers of E-enterprises
Customer centric E business system
E-business organisation system.
Use of work flow and Work group application
model
Role of Enterprise software
E-business model and application
Component of E-business models
Digital Firm
Real time Enterprise
Introduction to E-enterprises: A Digital Firm-

E-business operation through electronic exchange of data and information any where in the world at
any time. Digital firm is open 24 hour and being independent managers, customers, vendors can
transact business anytime from anywhere. Following are broad introduction of E-Business
enterprises-

Introduction to ‘E-Business Enterprise: A Digital Firm’.

 E-business enterprise has a global market, reach, source and global
competition.

 Due to extensive use of technology, the enterprise is now called a Digital

Firm.

 The term ‘E- Business enterprise’ was coined to convey the use of internet
and IT in key resource management processes and to transact the business
with customers, suppliers and business partners.

 Digital firms extensively use computing, convergence, and content

management technologies in internet platform for all E- business processes,
transactional and relational.

Paradigm shift of Digital form has brough following four transformation. The difference between
conversional design and Digital firm has been also elaborated below-
 Paradigm shift to Digital Firm
• Domestic business to global business.
• Industrial manufacturing economy to knowledge based service economy.
• Enterprise Resource Management to Enterprise Network Management.
• Manual document driven business process to paperless automated.

Conventional Organisation Design Digital Firm

• Top heavy organisation structure • Flat organisation structure

• Work and Work place location at one place • Separation of work from workplace location.

• Manual and document based work flows • Paperless work flows

• High administrative and management overheads Low overheads due to lean organisation

• Inflexible, rigid and linger business process cycles • Flexible, agile and responsive process cycles

• Private business process systems for self-use. They
are barred for usage to customer, vendors, and
business partners.
• Low and selective usage of technology
• Public Internet, wireless and network technologies
at all work centres.
• Use Internet, wireless and network technologies at
all work centres.

Rajeev Ranjan Raju

Roll No-S051