Management Information Systems

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Management Information Systems
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Overview

• MANAGEMENT CHALLENGES
• WHY INFORMATION SYSTEMS?
• CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS
• NEW ROLE OF INFO SYSTEMS IN ORGANIZATIONS
• LEARNING TO USE INFO SYSTEMS NEW OPPORTUNITIES
  WITH TECHNOLOGY

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• GLOBALIZATION
• MANAGEMENT CONTROL
• COMPETITION IN WORLD MARKETS
• GLOBAL WORK GROUPS
• GLOBAL DELIVERY SYSTEMS

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• TRANSFORMATION
• KNOWLEDGE-BASED ECONOMIES
• PRODUCTIVITY
• NEW PRODUCTS SERVICES
• KNOWLEDGE AS AN ASSET
• TIME-BASED COMPETITION
• SHORTER PRODUCT LIFE
• TURBULENT ENVIRONMENT
• LIMITED EMPLOYEE

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• TRANSFORMATION OF ENTERPRISE
• FLATTENING
• DECENTRALIZATION
• FLEXIBILITY
• LOCATION INDEPENDENCE
• LOW TRANSACTION COSTS
• EMPOWERMENT
• COLLABORATIVE WORK

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• SOCIOTECHNICAL PERSPECTIVE
• OPTIMIZE SYSTEM PERFORMANCE
• TECHNOLOGY ORGANIZATION MUTUALLY ADJUST TO ONE
  ANOTHER UNTIL FIT IS SATISFACTORY

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• NEW OPTIONS FOR ORGANIZATIONAL DESIGN
• FLATTENING ORGANIZATIONS
• SEPARATING WORK FROM LOCATION
• REORGANIZING WORK-FLOWS
• INCREASING FLEXIBILITY
• REDEFINING ORGANIZATIONAL BOUNDARIES

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• THE CHANGING MANAGEMENT PROCESS
• ELECTRONIC COMMERCE
• ELECTRONIC BUSINESS
• ELECTRONIC MARKET

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• CHALLENGE OF INFO SYSTEMS
• STRATEGIC COMPETITIVE EFFECTIVE
• GLOBALIZATION MULTINATIONAL INFO
• INFO ARCHITECTURE SUPPORT GOALS
• INVESTMENT VALUE OF INFORMATION
• RESPONSIBILITY CONTROL ETHICS

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Technology and Industrial Revolution Overview

• Pre-industrial revolution Exploit material
• Industrial revolution Exploit energy
• Post-industrial revolution Exploit information
• Substitution of knowledge for manual labour is
  the greatest change in the history of work
  Peter Drucker in Rise of Knowledge Worker

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Introductory Framework

• Importance of MIS
• Decision making (rational) managerial function
• Reliable, timely info essential
• MIS a logical, well-structured method of info
  collection, processing, and disseminating to
  decision-makers
• Era of liberalization and globalization
• Era of computers and IT
• MIS nerve center

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• Provides MI at various levels of decision-making
• Often not adequately planned for provides
  inaccurate, irrelevant, or obsolete info
• Was unrecognized, but vital
• Now business and management have grown to
  unprecedented levels of complexity
• Environmental pressures necessitates that info be
  an important resource
• Managers are transducers transfer info to
  decisions
• Computer based Management Info Systems (CBMIS)
  organizations cannot survive without

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MIS A concept

• Management
• Koontz Art of getting things done through and
  with the people in formally organized groups

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Managerial functions

• Planning
• Organizing
• Staffing
• Directing
• Control

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• Planning
• Process of foreseeing the future
• What, when, who, how, where, why
• Setting goals and objectives
• Lay down policies, procedures, budgets,
  strategies, programmes and schedules, to achieve
  the plans

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• Organizing
• Process of identifying the entire job
• Dividing the job into convenient subtasks
• Allocating subtasks to persons/groups
• Delegating authority, for effective operation and
  achievement of goals

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• Staffing
• Right person at the right job
• Define job requirements people perspective
• Select suitable person/s for the positions
• Training and development (?)
• Organizing vis-à-vis Staffing (?)
• Job-orientation vs. person-orientation

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• Directing
• Issuing commands classical view
• Modern philosophy
• Communication
• Motivation
• Leadership
• People have to be guided, motivated and led by
  the MANAGER

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• Controlling
• Controlling and planning two sides of the same
  coin
• Ensures that activities are performed as per
  plans
• Fixing standards of work measurements
• Measurement of actual performance
• Taking corrective measures
• Decision-making is the essence of management

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Management hierarchy

• Robert Anthony 3 levels of business activities
• Strategic management (Top management)
• Exploring different markets, formulating
  policies, plans and budgets
• Management control (Middle management)
• Facilitator role scheduling, monitoring
• Operational control (Operating management)
• Process and control the basic products and
  services
• Raw matl procurement, selling of products,
  physical recording and posting of cheques

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Interaction amongst the 3 levels

• Policies, plans, objectives and budgets of Top
  management
• Passed to middle mngt as Revenue, cost, profit
  goals
• Review and agreement
• Middle mngt issues specific schedules and
  operating goals along with yardsticks of
  measurement
• Operating mngt produce goods and services to
  meet the revenue and profit goals

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Information

• Processed data, presented in a form which assists
  decision-makers
• May contain an element of surprise, reduce
  uncertainty
• May provoke a manager to initiate action
• Data and Info relative concepts
• Recency
• Producer-consumer relationship
• Often used interchangeably

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Info needs of different levels

• According to J. Kanter (1996)
• Top Management
• Unstructured
• Non-programmed
• Futuristic
• Approximate
• External

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• Operating Management
• Structured
• Programmed
• Historical
• Exact
• Internal

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New perspective of Information

• MIS MI S
• MIS must provide MI to managers for
  decision-making
• MI quality info
• Timeliness
• Accuracy
• Completeness
• Adequacy
• Explicitness
• MI a subset of the entire available info

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System

• A set of interconnected elements to achieve a
  common objective
• Elements are interrelated and interdependent
• Composed of sub-systems, which in turn may be
  made up of other subsystems
• The set of elements may be Input(s),
  Process(es), or output(s)
• Info system converts data into information

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• Cybernetic systems self-regulating,
  self-monitoring (feedback and control elements
  attached)
• A system cannot exist in vacuum
• It exists and functions in an environment,
  separated by its boundary
• Several systems may share the same environment
• Some systems may be connected by a shared
  boundary
• Open system interacts with its environment,
  exchanges inputs and outputs
• Closed systems do not interact, or exchange any
  inputs or outputs with its environment

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MIS A Definition

• An MIS is
• An integrated (computer-based) user-machine
  system
• For providing information
• To support decision-making functions
• In an organization

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• The system utilizes
• Computer hardware and software
• Manual procedures
• Models for decision-making, and
• A database

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Interdisciplinary Nature

• Borrowed concepts from
• Computer science
• Accounting
• Operations Research
• Management sciences

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MIS Characteristics

• System approach
• Takes Comprehensive view in the light of its
  objective
• Management oriented
• Top down approach followed
• Derived from the overall business objectives
• Need based
• Caters to info needs at different levels
• Exception based
• Exception based reporting principle

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• Futuristic
• On the basis of projections
• Integrated
• Blends info from several operational areas
• Common data flows
• Should avoid data duplication and redundancy
• Long term basis
• Strive to be futuristic
• Divide and conquer
• Use partitioning into subsystems
• Central database
• Let subsystems access the master data

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MIS Functions

• Data capturing
• Processing of data
• Storage
• Retrieval
• Dissemination of MI finished product of MIS