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MIS Essentials: DR Sharad L. Joshi Professor Vishwakarma Institute of Management, Pune
MIS Essentials: DR Sharad L. Joshi Professor Vishwakarma Institute of Management, Pune
What is MIS?
Study of Information Systems focusing on their use in Business and Management MIS combines the theoretical work of computer science, management science and operations research with a practical orientation toward developing system solutions to real life problems and managing information technology resources.
Types of systems
Transaction Processing Systems (Dealing with day-today events and actions - Financial Transactions, Student Attendance, Phonecalls, Train Reservation) Office Automation Systems (Word, Excel) Knowledge Work Systems(Tally, PowerPoint, CAD) Management Info. Systems (Based on TPS Student Absenteeism Report, Product-wise Sales, Slow moving items report, Customer Outstandings Report ) Decision Support Systems (Production Scheduling, Data Mining supported analytics) Executive Support Systems (Dashboards)
Processing Logic
Data Computers Human Beings Database Monitoring/Feedback Performance
Decision Implementation
Intelligence
Design
Choice
Use of Web based GUIs for acquiring and displaying data Increasingly faster SQL processors and search engines to access / explore data Use of graphics and animation in GUIs Use of multi-layer clientserver architecture to serve large number of users (Client is Front end; server, back end) Component based software engineering Wide range of software products / packages Use of advanced mining/ analytical tools
Note : For OAS, KMS, DSS and EIS more sophisticated capabilities of computer are used.
On Line Transaction Processing (OLTP) Internet based, interactive data capture and query processing Relational Data Base Management Mathematical Models, Business Analytics
M.I.S. Outputs
OLTP SYSTEM
RDBMS APPLICATION DEVELOPMENT SYSTEMS
DATABASE
Accounting Applications
Query Applications
Analysis Applications
Control Applications
Acquiring Data, usually, through an On Line Transaction Processing System as well as devices such as Bar Code, RFID and Biometric terminals, or off line Data Entry Placing Data into Tables using a Relational Data Base Management System(e.g. ORACLE) Printing Reports or obtaining Screen Displays using RDBMS features like SQL and DML, mainly for Accounting Applications Query Applications Analysis Applications Control Applications
Statutory Compliance (Income Tax deducted at source from salary) Knowledge update (Budget Vs Actual, Report on slow moving items) Operation Update (Daily Sales Report, Product Delivery Report) Decision Analysis ( Sales up or down subsequent to price increase) Action Update (Whether urgent supplies sought have actually arrived)
Sustainable competitive advantage is achieved through either or combination of Cost Leadership, Differentiation and Focus. Specific activities through which a company can create competitive advantage are Inbound Logistics, Operations, Outbound Logistics, Marketing & Sales and Service Information , used strategically, should assist in achieving superior performance in any of the areas stated above, creating competitive advantage.
I.T. changes the context, creating new opportunities and new threats. Competitive advantage, depends on how well, and how effectively an organization adapts to forces of change. Explore possibility of re-engineering existing business using IT (like banks and newspapers) Use information to locate niches, new market segments - geographical, demographical, social etc use Data Mining Change structure e.g. Decentralized to Centralized ( e.g. BOLT in case of shares) or vice versa Use IT to add value Better service, less mistakes and earn better prices Increase efficiency, reduce costs, compete on lower price Enter new markets otherwise inaccessible ( thru eServices) e.g. Call Center Standardize, Improve control, expand business the way MNCs do
MIS changes the organizations, by reducing levels in hierarchy, restructuring flow of work, changing products/ processes, making decisions data-centric (rather than judgmental) and making knowledge more important than seniority. However, as observed by Levitt, computers alone cannot change the organization. For that to happen, People, Tasks (what to do), Processes (how to do) and Technology have all to change simultaneously.
Intelligence phase involves scanning social, competitive and organizational environment and understanding/ identifying the problem Design phase involves generating alternatives to solve the problem and evaluating each of the alternatives qualitatively and quantitatively. Choice phase involves ranking the alternatives based on a variety of criteria and choosing the most suitable among them.
Note that the model does not include implementation and feedback, which is said to be its limitation.
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Humans have a psychological need for feedback. Humans have a psychological value for unused data. Humans have a tendency for over consumption of information for the following reasons: Having information is considered a sign of competence ( hence demand for Terminals and Passwords). Much of the information is gathered for supervision and not for decision making. Information is often gathered to persuade and to represent. For the above reasons, organizations favour information gathering activity.
Evolution of computers,generations Tele-communication, Networks IT enabled services such as call centers, Geographical Information Systems
As an example of RDBMS study three tables for a Train Reservation Systems viz. Form Table, Passenger Table and Train Table. Form Table is related to Passenger Table thru Form No. Form Table is related to Train Table thru Train Number. Two examples of SQL queries follow. Strength of the system is that despite simple table design, it is capable of handling millions of records, fast and accurately.
Purpose List trains between Mumbai and Delhi Query select TrainNo, TrainName from Train_Table where From = Mumbai and To = Delhi
Purpose Get passenger list for train 2423, compt SC7 and date = 23rd March 2012 Query select S-BNo, Name, Sex,Age from Form_Table, Passenger_Table where Form_table.FormNo = Passenger_Table.FormNo and TrainNo = 2423 and Date = 23-032012 and Compt = SC7
Data Warehouses are similar to Databases in that both maintain and access tables which may contain diverse data like numbers, text, pictures, audio clips, video clips etc. Data Warehouse has better analysis capabilities (OLAP) while Database has better transaction processing capabilities (OLTP). DB is write-optimized ; DW is read-optimized . DW is better for analytics. Note that DW and DM handle data in GB and TB. Data Mining is better designed for quantitative and statistical analysis, whereas DW creates and uses simpler analyses, relying on qualitative interpretation. All these DB, DW and DM have 5 capabilities Store, Maintain, Access, Analyze and Present the data.
Decision Support Systems, in the past were based on low volume of data, and utilized special tools and models (like Linear Programming, Operations Research) for analysis. DSS has now been converted into Business Intelligence, or Analytics. It uses vast amount of data and analyses it thru sophisticated data warehousing and data mining tools.
Group Decision Support System uses Decision Support System methodology but allows a number of decision makers to work together to arrive at a decision acceptable to the group. One of the techniques used for GDSS is electronic brainstorming brainstorming thru an online chat. A variation of electronic brainstorming called Nominal Group Technique , where ideas generated are put to vote and selected, is also used. GDSS is more useful in case of virtual teams.
Business Analytics for Godrej Household Products Sales Force Automation (SFA)
SFA solution was implemented on Tablet computing devices with a view to capture transactions related to orders, collection and return of goods electronically and transmit them to the billing system and returns databases. The tablet computer also displays information about sales history, schemes, promotions and achievement Vs. target of salesmen. It can even suggest an order to the salesman for a particular outlet, based on its past record and current purchase. IBM XPD Desktop, located at the office, integrates data received thru tablet application with backend billing. The SFA solution utilizes IBM Business Analytics software.
E.I.S. started as Executive Information System, meant for senior executives but is currently used also at other levels where people need to take decisions based on latest and most relevant information. It uses data analysis tools and presentation techniques such as Executive Dashboards . Dashboards present information related to Key Result Areas (KRA) or Key Performance Indicators (KPI) in a single screen. Capability to drill down from aggregate data to components is an essential pre-requisite of EIS. Examples of dashboards follow.
Typical Dashboards.
Expert Systems try to incorporate experts knowledge into computer software so as to assist decision making by non-experts (e.g. medical diagnosis, Tax planning). The Expert Systems have knowledge Data Base and inference engine (i.e. logic) which is used to draw inferences. Artificial Intelligence ventures into areas which has always required human intelligence. Language Translation and Speech Recognition are two examples. AI uses algorithms similar to human reasoning, so as to assist, if not to take decisions.
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Software quality assurance covers attributes such as reliability, efficiency and promised performance . In order to assure quality of software, 3 aspects need to be attended to. Creating a quality profile Specifying qualitative and quantitative aspects of software ( such as number of problems reported, number of updates supplied) Process control thru Requirements, Design, Coding and Testing Checklists , software engineering, Documentation etc. Obtaining third party certification from agencies such as ISO about conformance to quality procedures.
Management Issues in MIS (3) Ethical Dimensions, Intellectual Property Rights, Global Information Systems
Ethical Aspects are mainly related to misuse of computer technology for personal benefit, intentional manipulation of data, indulging in cybercrime, violating data privacy, even insensitive automation. Intellectual Property Rights concern software and hardware piracy, violation of patents, breach of trade marks, breach of confidence relating to information held in trust. Managing Global Information Systems involve dealing with cultural, political and economic challenges posed by different countries, developing appropriate business and IT Strategies for the global marketplace and developing a portfolio of applications to support them.