MIS &ACC PACKAGE

ACC 323 (PART 2)

  Information processing in business has brought a huge shift towards
increasingly automated business processes and communication
leading to achieving greater efficiency in accounting and other
business processes.
Information need
MIS –  Planning − Information at planning stage includes that of business
Information resources, assets, liabilities, plants and machineries, properties,
need and suppliers, customers, competitors, market and market dynamics,
fiscal policy changes of the Government, emerging technologies, etc.
Objective
 Recording − Business processing these days involves recording
information about each transaction or event. This information
collected, stored and updated regularly at the operational level.
  Controlling − A business need to set up an information filter, so that
only filtered data is presented to the middle and top management. This
ensures efficiency at the operational level and effectiveness at the
tactical and strategic level.

 Measuring − A business measures its performance metrics by collecting

MIS – and analyzing sales data, cost of manufacturing, and profit earned.
Information
need  Decision-making − MIS is primarily concerned with managerial
decision-making, theory of organizational behavior, and underlying
human behavior in organizational context. Decision-making
information includes the socio-economic impact of competition,
globalization, democratization, and the effects of all these factors on an
organizational structure.
 MIS is an information system that provides information in the form
of standardized reports and displays for the managers. MIS is a
broad class of information systems designed to provide information
needed for effective decision making.

MIS – Main objective is to aid Managers in making decisions. Decision-

Information making generally takes a four-fold path −
Objective  Understanding the need for decision or the opportunity,
 Preparing alternative course of actions,
 Evaluating all alternative course of actions,
 Deciding the right path for implementation.
  1.5 .1. Rational Decision making
• A rational decision seeks to achieve the desired goal
productively.
• E.g., seek to be employed after graduation
 Types of rationality
MIS –
• Objective rationality – maximizing the value of the objective.
Information • Subjective rationality – maximizing the value of what is
Objective strongly perceived.
• Conscious rationality – maximizing what the decision maker
is conscious of.
• Organizational rationality – maximizing organizational values.
• Personal rationality – maximizing personal goals.
  1.5.2. Challenges of rational decision-making
• Problem identification – determining the main problem.
• Insufficient knowledge – it is difficult to have complete information.
• Spontaneity - most decisions may be taken based on impulse and not by
reasoning.

MIS – • Broad inclusion – others may not share the rational decision.

Information  1.5.3. The decision making process

• Step 1: Identify the problem - diagnose the problem and the possibilities.
Objective • Step 2: Analyze the problem – situate the problem by scope, context and
impact.
• Step 3: Collecting relevant data – identify causal factors, Intelligence
gathering.
• Step 4: Determine alternative solution – identify other possibilities.
• Step 5: Select the best solution – decide on the appropriate option.
 Is a structured step-by-step approach for
developing information systems that meet or
exceed the expectations of the users within the
budget and time frame.
MIS
DEVELOPME There are literally seven phases involved in
SDLC
NT LIFE
Typical activities include Planning, gathering
CYCLE
business requirements and analysis, system
design , implementation, testing and
deployment.
 Phase 1: Planning
MIS Activities:
DEVELOPME Define the system to be developed
NT LIFE Set the project scope including tasks,
CYCLE resources, and timeframes.
 Phase 1: Planning
Define the systems to be developed: you must
SYSTEM identify which system is required to support the
DEVELOPME organization strategic goals. Organizations trace
all proposed systems and prioritize term based on
NT LIFE
critical success factors
CYCLE(SDLC)
e.g. Achieve order fulfillment excellence through
online process improvement
 Phase 1: Planning
Set project scope: project scope clearly defines
the high level system requirements. This helps
SYSTEM you avoid scope creep and feature creep
DEVELOPME Scope creep occurs when the scope of the project
NT LIFE increases beyond its original intentions
CYCLE(SDLC) Feature creep occurs when developers add extra
features that were not part of the initial
requirements.
 Phase 1: Planning
Develop the project plan: The project plan
SYSTEM usually defines the what, when and who
DEVELOPME questions of the system,] development, including
NT LIFE all the activities to be performed, the individuals
CYCLE(SDLC) or resources, who will perform them and how
long it will take
 Phase 2: Analysis

SYSTEM Activities:

DEVELOPME Gathering business requirements

NT LIFE Prioritize the requirements
CYCLE(SDLC)
.
 Phase 2: Analysis
Activities:
Collecting business requirements: Business requirements
are the thorough set of employee/ end- user requests that
the systems must meet to be successful. They state what the
system must do from a business point of view. The
SYSTEM business requirements drive the entire system. For instance
DEVELOPME the information system must track all customer sales by
NT LIFE product region , and sales representative

CYCLE(SDLC) An extremely useful way is to do a joint application

development(JAD)session ,where the users and IT
specialists meet, to define and review business
requirements for the system.

.
 Phase 2: Analysis
Activities
SYSTEM Give precedence to the requirements: prioritize
DEVELOPME the requirements in accordance to the business
NT LIFE importance and place them in a comprehensive
CYCLE(SDLC) document, the requirement definition document.

.
 Phase 3: Design
Activities:
SYSTEM Design the technical architecture required to
DEVELOPME support the system
NT LIFE Design system models
CYCLE(SDLC)
.
 Phase 3: Design
Design the technical architecture required to
support the system: The technical architecture
portrays the software, hardware, and
telecommucation equipment needed to run the
SYSTEM system

DEVELOPME Design the system model: Modelling is an act of

NT LIFE drawing a graphical representation of the system to
be build. The IT specialists models everything to be
CYCLE(SDLC)
built including the screens, reports, databases and
software.

.
 Phase 4: Development

SYSTEM Activities:

DEVELOPME Build the technical infrastructure

NT LIFE Build the database and programs

CYCLE(SDLC) .
 Phase 4: Development
Activities:

SYSTEM Build the technical infrastructure: for the system to be

developed, a platform on which the systems will operate has to be
DEVELOPME created. It is thus necessary to purchase and implement the
NT LIFE equipment needed to support the technical architecture created in
the design phase
CYCLE(SDLC)
.
 Phase 4: Development

SYSTEM Activities:
Build the database and programs: The IT specialists then
DEVELOPME initiates and creates supporting databases and writing code/
NT LIFE creates all the software required for the system

CYCLE(SDLC)
.
 Phase 5: Testing

SYSTEM Activities:

DEVELOPME Write the test conditions

NT LIFE Perform the testing of the system
CYCLE(SDLC)
.
 Phase 5: Testing
Activities:
Write the test conditions: Test conditions are
detailed steps a system must perform with the
SYSTEM expected outcomes of each defined step.
DEVELOPME Perform the testing of the system: the tester has
NT LIFE to execute each test conditions and compare the
CYCLE(SDLC) expected results with the actual results to verify
that the system functions correctly

.
 Phase 6: Implementation

SYSTEM Activities:

DEVELOPME Write detailed user documentation

NT LIFE Provide training for the system users
CYCLE(SDLC)
.
 Phase 6: Implementation
Activities:
Write detailed user documentation: Once the
SYSTEM
system has been installed, the IS specialists must
DEVELOPME provide the user with a detailed documentation
NT LIFE that portrays how to use the developed system
CYCLE(SDLC)

.
 Phase 6: Implementation
Activities:
Provide training for the system users: there are several types of
trainings, the most popular ones are online training and Workshop
SYSTEM training

DEVELOPME Online training: users can get the training at any time, on their

NT LIFE own computers, at their own pace

CYCLE(SDLC) Workshop training: Is held in a classroom environment and is led

by an instructor, this type of training is most suitable for
difficult/complex systems, for which users require one-on –one
time with the coordinator

.
 Phase 7: Maintenance
Activities:
SYSTEM Create a helpdesk to solve system user queries
DEVELOPME
Create an environment to support system
NT LIFE changes
CYCLE(SDLC)
.
 Phase 7: Maintenance
Activities:
Create a helpdesk to solve system user queries: A
help desk is a group of people who respond to user’s
SYSTEM questions when encountering difficulties in utilizing
DEVELOPME the system. This is a comprehensive approach of
NT LIFE providing support to the users using a new system.
CYCLE(SDLC) Provide environment to support system changes:
The system might need to be updated to meet that
changes arising in the business environment
.
 • Operational feasibility – design of the MIS is
operationally feasible.
• Goal oriented – intended result known and failures
explainable.
Factors • Focused – information processing executed without
responsible for noise.
• Human sensitive - Put up human aspects of the
success of MIS
management process.
• User friendly – usable with very minimal learning.
• Need oriented - Serve the organization’s information
needs.
 • Poor conception – MIS often mistaken for a database
Why MIS system.
Fail? • Incompleteness – under identification of the
information needs.
• Poor quality control – quality requirements not
respected.
• Poor administration and usage – deviation in system
specification.