Management Information System

1. INFORMATION SYSTEM / TECHNOLOGY FOR
MANAGERS
Prepared By Darshan Bhattarai

2. ABSTRACTS
 Basic IT
 Information Technology
 How IT Effects business
 MIS
 Objectives of MIS
 MIS Sub-systems
 Organization System and MIS
 MIS and Decision Making
 Components of Decision Making and MIS
 MIS and its CHALLENGES

3. BEFORE WE BEGIN
 The mouse isn’t fragile
 Typing ability is helpful but not necessary for managerial works
 You cannot destroy your computer by pressing any KEYS!!
 Have patience, stroking multiple times won’t make your work faster.
 Virus doesn’t get in from dusts around you… They are
software/programs…
 Following the right steps, even data deleted from your computers
recycle bin can be brought back, but follow the measures.
 A Computer just follows your orders so be the master, don’t be the
slave!!!
 Relax, enjoy and learn with no deadlines…..
REMEMBER ---
Inexperience is not an indication of you intelligence !!

4. INFORMATION TECHNOLOGY
 Information Technology involves the processing of information by a computer.
Usually this means the use of hardware, software, services, and the
supporting infrastructure to manage and deliver information.
 IT has changed our daily personal lives radically over recent years
 The use of mobile phones to make calls and send text messages,
 The use of social networking sites for community related services,
 The use of websites to book cheap flights and
 The use of ATM machines for banking are all an integral part our society
today.
 Clearly the business environment has been hugely impacted by these
developments and practically every company has had to adapt IT in some
form in order to compete effectively and have comparative advantage.
 E-Business can be defined as the application of IT to business processes; i.e.
the process of doing business with trading partners electronically. This
includes, for example, processing business transactions electronically,
integrating business processes electronically and transferring payments
electronically and delivering services electronically

5. BASIC TERMINOLOGIES OF IT
 Hardware- Hardware can be defined as IT-related machinery and
equipment.
 Software - Software can be defined as the set of instructions for the
computer - it dictates what is to be done.
 Operating System - The Operating System (O/S) is the first
program (set of instructions) to come to life when the computer is switched
on.
 Networks - A network is a group or a number of people or things linked
or connected together, either physically or by association.
 Email - Email allows you to send text messages across a network, either
an internal network or an external one like the Internet.
 The Internet - The Internet is a computer network made up of
thousands of networks worldwide. No one knows exactly how many
computers are connected to the Internet. It is certain, however, that these
number in the millions.

6. HOW IT EFFECTS BUSINESS
 IT can give your company a significant competitive advantage;
the other side of this coin is that if you fail to embrace
technology in your business, your competitors will get ahead.
 Moreover an eBusiness approach consolidates a company's
position in the market, opening up new business opportunities
and improving profit margins.
Competitiveness:
 eBusiness offers a reliable, cost effective and involuntary means
of doing business. Routine tasks can be automated and
customers, if they wish, can avail of a 24-hour service.
 More players will enter the market as technology enables firms to
penetrate overseas, this represents both an opportunity and a
threat.
 New technologies can change the face of your business; look at
the Irish airline industry and consider how the internet has
changed the entire business model in this market.

7. HOW IT EFFECTS BUSINESS (CONTD..)
Security:
 Information Technology can give companies a competitive
advantage. However, this can mean that customers, suppliers,
contractors, and business partners are routinely allowed access
to critical business data and to the systems that process and
store the information. Consequently, companies must have a
security program.
 The three fundamentals of a security program are
 Confidentiality - only authorized parties can read the details of the transaction
 Integrity - unauthorized modifications of the transaction will be detected
 Availability - systems are reliable and recoverable
 There are many areas that a company may address as part of a security
program and these include:
 Regular Backups and Recovery;
 Anti Virus Protection;
 Disaster Recovery;
 Audit Logs and Monitoring of unusual activity
 Authorized User Access utilizing password control.

8. HOW IT EFFECTS BUSINESS (CONTD..)
Cost Benefits
 Lower transaction expenses are a reality and labor costs associated with
administration can be slashed.
 Supply costs can be reduced. The extensive availability of Internet-based
information means that companies have a wider choice of suppliers and by
extension, there is more competitive pricing.
 Publication and distribution fees fall. Publishing a brochure online enables a
vast number of people to access it, while also allowing the company to
update the information on an ongoing basis.
 The role of the Middleman becomes less important as companies can sell
direct to the customer.
Marketing
 Websites help to build brand awareness offering new avenues of promotion.
 Customer loyalty deepens because web based purchasing affords
customers the opportunity to communicate with the company.
 Conversely, a web site also allows the firm to offer better service to
consumers.

9. MANAGEMENT INFORMATION SYSTEM
 MIS refers broadly to a computer-based system that
provides managers with the tools for organizing,
evaluating and efficiently running their departments.
 However MIS doesn’t Solely mean a computing
System.

10.  The three sub-components
 Management, Information and System
- together bring out the focus clearly &
effectively.
 System emphasizing a fair degree of integration and a
holistic view;
 Information stressing on processed data in the context
in which it is used by end users;
 Management focusing on the ultimate use of such
information systems for managerial decision making.
MANAGEMENT INFORMATION SYSTEM

11. OBJECTIVES OF MIS
 Facilitate the decision-making process
 Collects information in a systematic and a routine
manner.
 Provide requisite information at each level of
management to carry out their functions.
 Highlighting the critical factors to be closely
monitored
 Provide a system of people, procedures, query
facilities for collecting, storing, retrieving and
transmitting information.

13. MANAGEMENT INFORMATION SYSTEM
MIS Subsystems
STRATEGIC
PLANNING
MANAGEMENT
CONTROL
OPERATIONAL
CONTROL
TRANSACTION
PROCESSING
PRODUCTION
MARKETING
LOGISTICS
PERSONNEL
FINANCE
INFORMATION
PROCESSING
TOP
MANAGEMENT
ACTIVITI
ES

14. MAJOR FUNCTIONAL
SUBSYSTEM
USES
Marketing Information System Sales forecasting, Sales planning, Sales
analysis
Manufacturing Information System Production planning & scheduling, cost
control analysis
Personnel Information System Salary Admin, Planning HR requirement,
performance analysis
Accounting Information System Financial Analysis, cost analysis,
Capital planning, etc.
Logistics Information System Planning & control of Purchasing,
inventories, distribution.
Information Processing System Planning of Information System, cost –
effectiveness analysis
Top Management System Strategic Planning, resource allocation

15. STEPS FOR DESIGNING MIS

17. MIS AND DECISION MAKING
 Decision making is an integral part of the
functioning of any organization.
 To facilitate decision making in this ever-competitive
world it is imperative that managers have the right
information at the right time to bridge the gap between
need and expectation.
 To facilitate better flow of information adequate
Management Information Systems (MIS) is the need of
the hour.
 Thus it is important to have an understanding of the
MIS followed in an organization by all levels of
management in order to take effective decisions.

18.  Management information systems give decision-
makers the data they need to fulfill their
responsibilities.
 Such systems provide background, current data
and trend analysis so the manager has data
available on all aspects of the business.
 Managers using management information systems
can improve business performance since they have
detailed information on their business environment
and their decisions reflect the company position in
the marketplace.
MIS AND DECISION MAKING

19. COMPONENTS OF DECISION MAKING
 Data
 Managers have to be informed about their business in general
and about their area of responsibility in particular. Management
information systems give the manager access to key data about
his department and about the company in general. If the manager
needs reference information for a bid or for regulatory purposes,
management information systems are a good source.
 Decisions
 Decisions are only as valid as the information on which they are
based. Management information systems improve manager
decision-making, because they provide information that is
accurate, timely, relevant and complete. Self-checking and cross-
checking features in management information systems reduce
errors, and IT professionals design the systems to offer a
complete picture of a situation or highlight that specific
information is missing. Companies that use management
information systems ensure that all managers work from the
same set of data and make their decisions based on identical
information.

20.  Trends
 A key part of management's responsibilities is preparing forecasts
for strategic planning and budgets. A manager can look for trends
by asking the systems to project past performance patterns into
the future. MIS have sophisticated mathematical analysis tools
that can evaluate relationships and calculate probable future
trends.
 Scenarios
 Management information systems can evaluate different
possibilities and let managers examine scenarios. What-if
scenarios are a powerful tool that helps managers decide on the
best strategy for the company. Management information systems
calculate what happens based on their collection of data on how
the company operations performed in the past. Managers can
with this knowledge they can develop the optimal strategy for the
company.
COMPONENTS OF DECISION MAKING IN MIS

21. MIS AND ITS CHALLENGES (TECHNICALLY)
 Some of the distinguishing challenges that the people face
while planning, using or approving management information
systems are:
 MIS requires a wide variety of knowledge areas including
accounting, finance, marketing and manufacturing. Therefore
having both technical and practical experience in these
subjects is very useful.
 Both technology and technology-related products are
emerging at very high pace. Consequently no one can
possibly be proficient in all new technologies and therefore
compromises has to be made.
 MIS problems are difficult to define. Some times a situation
may be seen as a problem but in fact it may be just a cause of
a problem.
 There is a lack of sympathetic relationship between MIS
personnel and users and management and MIS personnel
because employees are more loyal to their profession rather
than needs of the organizations.

22. MANAGERIAL LITERACY
 Though technology receives most of the credit,
managers play an intricate role when dealing with MIS.
 Managerial literacy in both technology and information
determine how effective strategies will be when
implemented.
 A technology-literate manager will know how and when
to apply technology, meaning that she will know what to
purchase to execute certain processes and the most
appropriate time to make the purchase.
 An information-literate manager is able to define what
information is needed and how to access it, can convert
it from information to business intelligence, and can
make the best decision based on the information.

23. INFORMATION MANAGEMENT
STRATEGIES
 Promoting the understanding of information importance in the
organization
 Improving the organization of existing information
 “Informatization” of the process
 Information support to human activity
 Language development (taxonomies and coding systems)
 Using meta-information
 Use of templates and patterns
 Creation of information model
 System development
 Process improvement through IT
 Information design
 Optimal mix of information channels
 Standardization and simplification
 Intelligent use of Low Technology