INTRODUCTION

COMPILED BY:MR S.N.SINGH

CONTENT

DEFINITION

NEEDS

BUSINESS APPLICATIONS OF INFORMATION SYSTEMS

DEFINITION
MIS
A system for collecting, processing and disseminating information to decision makers in a business organization is commonly known as Management Information System(MIS).

WHY INFORMATION?
All managerial functions are performed through decision making , rational decision making needs timely and reliable information.

INFORMATION SYSTEM
As the three levels of management perform different function in an organization, according they will require different categories of information.
TOP MANAGEMENT

Requires unstructured or non programmed futuristic, approximate and external information.

MIDDLE MANAGEMENT

Requires some element of both the categories of information.

OPERATIONAL MANAGEMENT

REQUIRES STRUCTURED,ROGRAMMED,HISTORICAL,EXACT AND INTERNAL INFORMATION.

WHO DEVELOPS INFORMATION SYSTEM

IN HOUSE APPLICATION SOFTWARE PACKAGES

REGARDLESS OF THE DEVELOPMENT METHODS LAUNCHING A NEW INFORMATION SYSTEM INVOLVES RISK AS WELL AS BENEFITS.

INFORMATION SYSTEM COMPONENETS

SYSTEM:- A system is a set of related components that produces specific results.

THE FIVE MAIN COMPONENTS OF AN INFORMATION SYSTEM

UNDERSTANDING THE BUSINESS

IT professionals must understand a companys business operation in order to design successful system. Each business situation is different.
FOR EXAMPLE: A retail store, an internet auction site, and a hotel chain all have unique information system requirements. System Analysts use a process called BUSINESS PROCESS MODELLING to represent a companys operation and information needs. Business process modeling requires a business profile and a series of models that document various business process.

BUSINESS PROFILE & BUSINESS MODEL

BUSINESS PROFILE:- A business profile is an overview that describes a companys overall functions, processes, organization, products, services, customers, suppliers, competitors, constraints and future direction .
BUSINESS MODELS:- A business model is a graphical representation of one or more business process that a company performs, such as accepting an airline reservation, selling a ticket, or crediting a customers account.

BUSINESS MODEL :HANDLE SALES ORDER

Event: Receive sales order

PROCESS: Check Customer Status.

PROCESS: Verify Customer Credit

Result: Completed sales order

PROCESS: Enter Customer Order Data

A simple business model might consists of an event , three processes and a result.

TOPIC TO BE DISCUSSED
MIS CHARACTERSTICS

MIS FUCTION

INDUSTRIAL OVERVIEW AND IMPACT OF INTERNET

MIS CHARACTERISTICS

SYSTEM APPROACH. MANAGEMENT APPROACH. NEED BASED. EXCEPTION BASED. FUTURE ORIENTED. LONG TERM PLANNING . INTEGRATED. COMMON DATA FLOW. SUBSYSTEM CONCEPT. CENTRAL DATABASE.

SYSTEM APPROACH:
The information system follows a System`s Approach. In other words System`s Approach, in the sense intended here, means taking comprehensive view or a complete look at the interlocking subsystem that operate within the organization.

MANAGEMENT ORIENTED:
This is an important characteristics of MIS.fot the designing of MIS,top-down approach should be followed. Top-down approach suggests that the system development starts from the determination of management needs and overall business objective.

NEED BASED:
MIS design should be as per the information needs of mangers at different levels, viz.,stratergic planning level, management control level and operational control level.

EXCEPTION BASED:
MIS should be developed on the exception based reporting principle,which means an abnormal situation,i.e. the maximum ,minimum or exception values vary beyond tolerance limits. In such situation, there should be exception reporting to the decision-maker at the required level.

FUTURE ORIENTED:
MIS should also look at the future i.e. MIS should not merely provide past or historical information; rather it should provide information, on the basis of projection based on which action may be initiated.

LONG TERM PLANNING:

MIS is developed over relatively long period. A heavy element of planning is involved. This MIS designer must have the future objective and needs of the company in the mind .

INTEGRATED:
Integration is significant because of its ability to produce more meaningful information. FOR EXAMPLE : In order to develop an effective production scheduling system, it is necessary to balance such factors as: Set-up cost, Work force, Overtime-rates, Production capacity, Inventory level, Capital requirement, Customer service A system that ignores any one of the above elements may not be a successful system. thus MIS has to take this fact in consideration that integration is the important factor and characteristic in order to develop the meaningful information.

COMMON DATA FLOWS:

Because of the integration concept of MIS, there is an opportunity to avoid duplication and redundancy in the that gathering, storage and dissimination.System designers are aware that a few key source documents account for much of the information flow.
FOR EXAMPLE:

Customers` orders are the basis for billing the customer for the goods ordered, setting up account receivable, initiating production activity,sales analysis, sales forecasting etc.

SUB-SYSTEM CONCEPT:
The process of MIS development and one is likely to lose insight frequently. Thus, the system, through viewed as a single entity, must be broken down into digestible sub-system which are more meaningful at the planning stage.

CENTRAL DATABASE:
A Central Database is the mortar that hold the functional system together. Each system requires access to the master file of data covering inventory perssonel, vendor, customer etc.

MIS FUNCTION
DATA CAPTURING. PROCESSING OF DATA. STORAGE OF INFORMATON. RETRIEVAL OF INFORMATION. DISSEMINATION OF MI.

DATA CAPTURING:
MIS captures data from various internal and external sources of an organisation.Data capturing may be manually or by computer terminals.

PROCESSING OF DATA:
The captured data is processed to convert it into the required the required management information. Processing of data is done by such activities as calculating, comparing, sorting, classifying and summarizing.

STORAGE OF INFORMATON:
In this activity, data and information are retained in an organized manner for the later use. Stored data is commonly organized in into fields, records, files and databases.

RETRIEVAL OF INFORMATION:
MIS retrieves information from its stores as and when required by various users.

DISSEMINATION OF MI:
Management Information(MI), which is a finished product of MIS, is disseminated to the users in the organization. It could be periodic, through report or through on-line through computer terminal.

DIAGRAMATIC REPRESENTATION OF FUNCTION OF MIS

Source
Source
DATA CAPTURE PROCESSING

User User

DISSEMINATION

User User

Source Source Source

RETRIEVAL

STORAGE OF DATA

INDUSTRIAL OVERVIEW AND IMPACT OF INTERNET

NEW KIND OF COMPANIES:
Traditionally, IT companies were identified as Product-Oriented or ServiceOriented . Product-Oriented: manufactured computers, router or microchips. Service-Oriented: companies including sellers and providers of information and various IT services. Most successful IT companies offers a mix of product, technical and financial services, consulting, and customer support. Many firms believe that long-term profitability lies in value-added services rather than hardware, which customer sometime view as a commodity. The newest company category is the Internet-dependent firm, often described as a dot-com(.com) company because its primary business depends on the Internet rather than a traditional business channel.Google,Yahoo,AOL and eBay are example of pure dot-com companies

IMPACT OF THE INTERNET

Internet-based commerce is called e-commerce(electronic commerce) or I-commerce(Internet commerce).E-commerce include two main sector: B2C(Business-To-Consumer) B2B(Business-To-Business)

B2C(Business-To-Consumer):
B2C commerce is changing traditional business model and creating new ones. For example, a common business model is a retail store that sells a product to a customer. To carry out that same transaction on the Internet, the company must develop an online store and deal with a totally different set of marketing, advertising and profitability issues.

B2B(Business-To-Business):
Although the business-to-consumer(B2C) sector is more familiar to retail customer, the volume of business-to-business(B2B) transactions is many times greater.