2. 



An information system designed by an
organization to collect collect, manipulate, and
disseminate data or information on a program
Includes hardware, software, people,
communications systems, and data
Allows managers to plan, monitor, and evaluate
operations and performance of an activity
Designed and used for administrative purposes

3. Roles:
- support of business operations
- support of managerial decision making
- support of strategic competitive advantage
 ‘In an organization, information is the blood
and MIS is the heart’.


4. Subsystems and supersystems of IS
Business
Environment
Information
I ITIT
Technology
IS
Information
Systems
Organization:
- business process
- people
- data
- strategy

5. Computer Based Information Systems : 4 Phases
Planning and Coordinational
Accounting and Transactional
Benefit
Costs, complexity and
uncertainty increase as
sites gain sophistication
over time
Operate
150 K
Build
1500 K
Operate
100 K
Operate
50 K
Operate
INR 10 K
Integrate/Transform
(BPR)
Build
500 K
Automate Cross-Functional Transactions
Build
200 K
$
Cost
Net return
Customer and Supplier
Relationship Impact
Automate Functional Transactions
Build
INR 50 K
Automate Accounting
Key:
Operate - Cost to run & maintain site for 1 year.
Build - Cost to design, build & implement
3-12 months

6. Progress in MIS
IN
Information can be created in multimedia
Information can be stored
Information can be retrieved
REAL
VERY
Information can be shared
Information can be distributed
TIME
AT
LOW
Information can be processed
Information can be transmitted
COST

7. Enabling Role of Information
Technology
Old Business Rule
Technology intervention New Business Rule
Information can appear Shared databases
only at one place
Only experts can perform
complex jobs
Businesses must choose Telecommunication
between centralization and
decentralization
Managers make all the
Software tools
decisions
Information appears
simultaneously
Expert Systems Genera
experts.
Centralization and
networks
decentral
possible
Decision making is
part of everyone’s job

8. Enabling Role of Information Technology
Old Business Rule
Technology interventi
Field persons need offices
Wireless/internet/lapt
virtual
Personal contacts
Effective contacts
Internet / email
Find out the information
Plans get revised
periodically
On line computing
Enterprise software
you
Plans get revised
instantly
Reference : Reengineering the corporation by Michael Hammer & James Champy, 1993-9

9. Impact of MIS and IT on an Organization
•As transactional Information Systems:
- enables enterprise-wide shared and integrated
databases through :
i. improved decision making
ii. improved MIS reporting
- enables enterprise-wide cross functional work flow
automation through :
i. improving Intra-organizational transactions
ii. reducing in business processes lead times
iii. improved inventory and working capital management
iv. improved financial reconciliation

10. Impact of MIS on an organization
• Improves business process performance through:
- automation of business processes
- simplification of business processes
- elimination of non value adding business processes
- reengineering of business processes

11. Work Flow: Purchase Process
Material
Request
Purchase
Request
Supply Chain
Processing
Purchase
Order
Material
Receipt
Goods
Receipt
Outbound
Outbound Shipment
Delivery
Goods Receipt
Processing
Requisition of a valve
Material
Issue

12. Impact of MIS on an organization
• MIS as a coordination and planning information
system results in:
- improved coordination among sales, production
stores, purchase, and accounts due to close loop
systems and online data
- dynamic scheduling of production and purchasebased on feedback from sales and visa versa

13. Sales Order Processing
Sales
Quotations
Sales
Contracts
Order entry
EDI
Manually
Outbound Advice
Delivery
Sales Order
Margin Control
Customer Monitoring
Inventory Check
Additional Costs
Installments
Sales Order/
Quotation Existence
Order
Acknowledgment
Picking Lists
Dispatch List
Dispatch Notes
Consignment Notes
Invoicing
Fin. Accounting
Hist./Stats.
Close Order
Invoice

14. Sales Statistics
SET UP STATISTICS
Parameters
Period Codes
Sorting Codes
Sales Budget
Display codes
Layout Codes
col.1
group 1
budget
sales
group 2
budget
sales
col.2
diff.
budget
sales
difference
from/till
group 1 group 2

15. The competitive edge
• To be competitive today you need:
- the flexibility to take on new business opportunities as
they arise
- a business framework that lets you
i. optimize business processes
ii. cut costs
ii. improve customer service
iv. shorten your time to market
- comprehensive decision support tools to provide upto-date information on revenues, budget
performance, sales, and cash-flow
• E-business can help provide the competitive
edge you need

16. E-Business
Information Technology
Business
Telecommunication
E-Business

17. • E-business is a new way of conducting, managing, and executing
business transactions using IT and telecommunications networks
(Internet and Extranet)
• E-business is remaking the business world by:
- redefining virtually every business process and function
- changing conventional concepts and rules about strategic
alliances, outsourcing, competition, industry specialization, and
customer relationships
- creating a wealth of information about customers, enabling
businesses to anticipate and satisfy individual needs with
pinpoint precision
- blurring the lines between industries
- challenging every business to reinvent itself
It provides companies with new, more cost and time-efficient means
for working with customers, suppliers, and development partners