MANAGEMENT INFORMATION SYSTEMS

Kapil Saini- Kapsintouch@gmail.com

INFORMATION:
THE MOST VALUABLE RESOURCE
Five Main Resources Personnel Material Machines

(including

facilities and energy)

Physical

Money Information (and data)

Conceptual

HOW RESOURCES ARE MANAGED

Acquire Assemble, or prepare Maximize use Replace --Factors Increasing complexity of business activity

International economy Worldwide competition Increasing complexity of technology Shrinking time frames Social constraints Size Speed

Improved computer capabilities

WHO ARE THE USERS?

Managers Non-managers Persons & organizations in the firms environment

THE INFLUENCE OF MANAGEMENT LEVEL ON INFORMATION SOURCE

Strategic planning level Management control level

Environmental

Operational control level

Internal

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THE INFLUENCE OF MANAGEMENT LEVEL ON INFORMATION FORM

Strategic planning level Management control level

Summary

Operational control level

Detail

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MANAGERS CAN BE FOUND ON ALL LEVELS AND IN ALL FUNCTIONAL AREAS OF THE FIRM
Strategic planning level Management Control Level

Operational Control Level

Finance Function Human Resources Function Information Services Function Manufacturing Function Marketing Function
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WHAT MANAGERS DO -FAYOLS FUNCTIONS

Strategic
Planning Level

Management Operational
Control Level Control Level

Plan
Direct
Staff
Control

Organize
Plan
Control
Staff
Organize

Direct
Staff
Plan

Organize

Control

Direct

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MANAGEMENT SKILLS

Communications Problem solving

How can an information specialist help?

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SYSTEM COMPONENTS

COMPONENT PARTS OF A SYSTEM THAT CAN CONTROL ITS OWN OPERATIONS

Objectives

Control mechanism

Input

Transformatio n

Output
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OPEN-LOOP SYSTEM

Input

Transformation

Output

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OPEN VERSUS CLOSED SYSTEMS

Open system
Connected

to its environment by means of resource flows connected to its environment

Closed system
Not

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SYSTEMS
CAN BE COMPOSED OF SUBSYSTEMS OR ELEMENTAL PARTS

System
Subsyste mA
Subsystem A-1 Subsystem A-2

Subsyste mB
Subsystem B-1

Elemental Part C

Subsystem B-2

Subsystem A-3

Elemental part B1

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PHYSICAL AND CONCEPTUAL SYSTEMS

Physical system
The

business firm Composed of physical resources

Conceptual system
Represents

a physical system Uses conceptual resources

Information Data

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A SYSTEMS VIEW
Business

operations are embedded within a larger environmental setting Reduces complexity Requires good objectives Emphasizes working together Acknowledges interconnections Values feedback
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DATA AND INFORMATION

Information processor
Key

element in the conceptual system Computer Noncomputer Combination

Data is the raw material transformed into information

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THE CBIS MODEL

Computer-based Information System

(CBIS) Problem
Decisions Accounting Information System Management Information System

Information Problem Solution

Decision Support Systems The Virtual Office Knowledgebased Systems

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IS AND EUC

THE END-USER COMPUTING COMMUNICATION CHAIN

Informatio n Specialists
Support

Communication

User

Computer
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JUSTIFYING THE CBIS

Justify in the same manner as any other large investment Economic
Cost

reduction Reduced inventory investment Increased productivity (CAD/CAM)

Noneconomic
Perceived

value

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ACHIEVING THE CBIS

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REENGINEERING THE CBIS

Business Process Reengineering (BPR)

Reworking

systems Good system features retained Becoming development methodology of choice

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ROLES PLAYED BY THE MANAGER AND BY THE INFORMATION SPECIALIST

Phase Manager Information Specialist

Planning Analysis Design

Define problem Control Control Control Control

Support System Study Design system Implement system Make available

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Implementatio n Use

WHAT IS A FIRM?

Physical System
Closed-loop Controlled

by management Uses feedback to ensure objectives met Open because of environmental interaction

Managed through use of a conceptual system

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IMPORTANCE OF ENVIRONMENT
Very reason for a firms existence Firm takes resources from environment, transforms them, and returns goods and services to environment

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The Firms Environment

Society

Financial Community

Government

Global Community Customers

Suppliers Labor unions

The Firm

Competitors Stockholders or owners 2-26

A Value Chain
Firm Infrastructure
rg i Ma

Support Activities

Human resource management Technology development Procurement

Primary Activities
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Ma rg

Marketing Service InboundOperations Outbound logistics logistics and sales

in

THE INFORMATION RESOURCES

Two views of information management

1. Manage data by implementing computerbased database management systems (DBMS) 2. Manage resources that produce the information

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THE INFORMATION RESOURCES

Software

Hardware

Database

Information Specialists Users

Information

Facilities

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STRATEGIC PLANNING

Long-range planning
Intends

to give firm most favorable position in its environment Specifies strategies for achieving objectives

Need for each business area to create its own strategic plan

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The Functional Areas Should Cooperate in Developing Their Strategic Plans

Strategic planning for information resources

Strategic planning for marketing resources

Strategic planning for financial resources

Strategic planning for manufacturing resources

Strategic planning for human resources

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STRATEGY SET TRANSFORMATION

Organizational strategy set
Mission Objectives Strategy Other strategic organizational attributes MIS strategic planning process

MIS strategy set

System objectives System constraints System design strategies

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Strategic Planning for Information Resources

Influence on Information Resources

Business strategy
Influence on Business Strategy

Information resources and IS strategy

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STRATEGIC PLAN FRAMEWORK FOR INFORMATION RESOURCES

Strategic Plan for Information Resources

AIS Objective s Required Informatio n Resources

MIS Objective s Required Informatio n Resources

DSS Objective s Required Informatio n Resources

Virtual Office Objective s Required Informatio n Resources

Knowledgebased systems Objectives

Required Informatio n Resources

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DFD- DATA FLOW DIAGRAM

ELEMENTS
1.

2.

3.

4.

Dos and Donts when constructing a Data Flow Diagram

ZERO LEVEL DFD

FINANCE FILE STORE Updated data Financial requirements

FINANCE DEPARTMENT

FINANCIAL DECISIONS

TOP MGMT.

FIRST LEVEL DFD

FINANCE DEPARTME NT
Financial requireme nts

1.0
FUNDs
ACQUISITI ON

Acquire d funds

2.0
FUNDs
UTILISATI ON

Repo rt

Updated data

Updated data

SOURCES OF FUNDS

APPLICATION OF FUNDS

TOP MANAGEM ENT

SECOND LEVEL DFD

PURCHASE ORDER Purchase order details

Invoice

1.0 invoice Verify signed invoice

Signed

Unsigned invoice

1.3 Verify Merchandise ordered Invoice Unverified details invoice

Invoice package

Pricing detail

1.5 price invoice INVOICE LOG

Audited invoice

RECEIVED INVOICE
Signed invoice

APPROVED INVOICE
Invoice package

Illegal invoice

1.2 Verify Acceptance merchandise

1.4 Receive Purchase authorization

Acceptance detail Payment voucher

1.6 Price invoice

PAYABLE INVOICE

DATA DICTIONARY
A data dictionary is a catalog of the elements in a system.these elements center around data and the way they are structured to meet the requirements and organization needs. Data dictionaries are an integral component of structured analysis since DFDs by themselves donot describes the subject of the investigation.

Why is a data dictionary important:

1.To manage the details in large systems. 2.To communicate a common meaning for all system elements. 3. To document the features of the system. 4.to facilitates analysis of the details in order to evaluate characteristics and determine where system changes should be made. 5.To locate errors and omissions in the system.

DATA DICTIONARY For DATA STORE

Data Dictionary For DATA STORE

DATA STORE NAME :Received invoice table DESCRIPTION : INCOMING DATA : FLOW OUTGOING DATA: FLOW

Details about the received bills

Signed invoice from 1.1

Invoice details to1.3

DATA DICTIONARY For DATA-ELEMENT

Data Dictionary For DATA-ELEMENT

DATA ELEMENT DATA DESC. TYPE LENGTH ALIASES RANGE

Purchase order number : : : : : : : Identification and authorization for each order given to an outside supplier Char 7 PON 00001 to 9999999 PURCHASE ORDER TABLE,

DATA STORE

DATA DICTIONARY For DATA-STRUCTURE

Data Dictionary For DATA-STRUCTURE

DATA STRUCTURE : Payment voucher DESCRIPTION : Invoice and internal approvals and audits of invoiceand purchasing authorization,indicates paymentcan be made for : services Invoice package,invoice : details,vendor name,invoice date,amount due 200 daily

CONTENTS : VOLUME

DATA DICTIONARY For DATA-FLOW

Data Dictionary For DATA-FLOW

DATA FLOW NAME : Invoice package DESCRIPTION : Singed billing details from vendor and internal purchasing authorizationunaudited for correct total and tax 1.3 verify merchandise ordered 1.4 receive purchasing authorization. DEST. PROCESS DATA STRUCTURES : : 1.5 price invoice Invoice package,invoice details,receiving acknowledgment,purchasing authorization

SOURCE PROCESS :

DATA DICTIONARY For PROCESS

Data Dictionary For PROCESS

PROCESS NAME : DESCRIPTIONS INCOMING DATA FLOW :

1.3 Verify merchandise ordered Matches every incoming invoice with a valid purchase order number Invoice details,purchase order details

OUTGOING DATA : FLOW LOGIC SUMMARY :

Invoice package,unverified package

MANAGEMENT INFORMATION SYSTEM AND DECISION SUPPORT SYSTEM

MIS DEFINITION

A computer-based system that makes information available to users with similar needs.
Users

are typically comprise a formal organizational entity Describes what has happened in the past

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An MIS Model
Environment
Organizational problem solvers

Data

Information

Report writing software

Mathematical models

Database

Management Information System

Environment

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Organizational Information Systems

Executive Information System (EIS)

Marketing Manufacturing Financial Human resource informationinformation information information system system system system

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SIMONS TYPES OF DECISIONS

Programmed decisions
repetitive

and routine have a definite procedure

Nonprogrammed decisions
Novel

and unstructured No cut-and-dried method for handling problem

Types exist on a continuum

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SIMONS PROBLEM SOLVING PHASES

Intelligence
Searching

environment for conditions calling for a solution developing, and analyzing possible courses of action a course of action from those

Design
Inventing,

Choice
Selecting

available

Review
Assessing

past choices
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DEFINITIONS OF A DECISION SUPPORT SYSTEM (DSS)

General definition - a system providing both

problem-solving and communications capabilities for semistructured problems Specific definition - a system that supports a single manager or a relatively small group of managers working as a problem-solving team in the solution of a semistructured problem by providing information or making suggestions concerning specific decisions.
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A DSS Model Environment

Individual problem solvers Other group members

Report writing software

Mathematical Models

GDSS GDSS software software

Database

Decision support system Environment

Legend:
Data Communication Information

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