FORMS OF MIS Session-15

SCENARIO BEFORE AND AFTER ERP

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 SCENARIO BEFORE AND AFTER ERP
Sr no Parameters Before ERP After ERP

1 Information systems Standalone systems Integrated systems

2 Coordination Lack of coordination among business Supports coordination among

functions (e.g., manufacturing, sales) business functions

3 Database Non-integrated database Integrated database

4 Interface Heterogeneous, different interfaces Standard interface across the

system

5 Information Redundant, inconsistent information Consistent, real-time information

6 System Architecture It May not be the state of the art Client-server architecture

7 Cycle time Costly bottlenecks Time and Cost reduction of Business

Process

8 Business Process Fragmented Re-engineering based complete

business process that confirms best
practices

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EVOLUTION OF ERP

Sr No Types of system Time Focus

1 Material Requirement The 1970s Production and production requirements

Planning (MRP) system
2 Manufacturing Resource The 1980s Production + financial accounting system
Planning (MRP-II)
3 MRP-II with manufacturing The 1990s Focus on the product + financial accounting system +
execution system service/upgrade/customization based on customers’
needs
4 ERP (Enterprise resource The late Supply chain, receiving, inventory management,
planning) system 1990s customer order management, production planning,
shipping, accounting, human resource management,
and other business functions.

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MIS SUPPORTS DECISION MAKING PROCESS

Decisions Taken

Strategic Unstructured

Tactical Semi-structured

Structured
Operational
DECISION STYLES – MIS BASED VIEWS
MIS HAS COMPONENTS ACROSS LAYERS OF ORGANIZATION
 TPS AND ROLES AND RESPONSIBILITIES
OF OPERATIONAL LAYER
Roles: This layer consists of employees who execute day-to-
day tasks, such as technicians, support staff, and frontline
workers.
Responsibilities: Their primary responsibilities involve
carrying out specific tasks, following procedures, and
ensuring daily operations run smoothly. They may also be
responsible for reporting progress, issues, and other
relevant information to their supervisors or managers.
TPS LAYER OF MIS
What it should look for?
• Transaction Processing System (TPS) needs-
• Transaction Owner
• Service Provider
• Transaction Processor (Rules/Logics)
• Transaction Monitor (Databases and Events)
• Transaction Logs
• Transaction Sessions (Cycles)
 MRS AND TACTICAL LAYER
Roles: This layer includes middle management, team leaders,
and supervisors who oversee the operational staff.
Responsibilities: Tactical roles involve planning, organising,
and coordinating the activities of the operational layer to
meet short-term and medium-term goals. They are
responsible for allocating resources, monitoring performance,
problem-solving, and ensuring the operational layer meets
its targets. They also link the strategic and operational
layers, communicating goals, priorities, and feedback
between the two.
 MANAGEMENT REPORTING SYSTEM
Does not look into details of Transactions
What is a Report?
Aims at serving Middle Management •Data / Information arranged
in a sequence or
Mostly looks at the Routine Reports received in a manner that
would provide inputs for
 Example: Trial Balance/Raw material utilization product wise/ employee decisions
attendance reports
 Stock holding costs product wise

Preparation of Information Matrix

Categories of Reports:
 Detailed Reports (Journal/ Day Book)
 Historical (Party wise account for last 15 days)
 Summary( Summary of payments made as on date party wise, Trial
Balance) MIS;CHAPTER-9,PRM-43
 Exception ( Outstanding advances employee wise)
 Prediction/Projections( project a balance sheet, P& L Account)
 STRATEGIC LAYER AND ESS
Roles: The strategic layer consists of top-level
management, such as CEOs, board members, and executive
directors, who are responsible for setting the organisation’s
overall direction and long-term objectives.
Responsibilities: The primary responsibilities of the
strategic layer involve defining the organisation’s vision,
mission, and goals, developing long-term strategies and
policies, and making high-level decisions that shape the
organization's future. This layer also monitors the
organisation’s overall performance, evaluates the
effectiveness of strategies, and makes adjustments as
needed to ensure long-term success.
 ESS: SMART PRINCIPLES
❑ Synergetic. Must be ergonomically and visually compelling for a user to synergise
information about different aspects within a single screen view.
❑ Monitor KPIs. Must display critical KPIs required for effective decision-making for
the domain to which a dashboard caters.
❑ Accurate. Information being presented must be accurate to gain user confidence in
the dashboard. The supporting dashboard data must have been well-tested and
validated.
❑ Responsive. Must respond to predefined thresholds by creating user alerts in
addition to the visual presentation on the dashboard (e.g., sound alarms, e-mails,
pagers, blinkers) to draw immediate user attention to critical matters.
❑ Timely. Must display the most current information possible for effective decision-
making. The information must be real-time and right-time.
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 ESS LAYER OF MIS
Traditionally, ESS supports strategic layer and thus
unstructured decisions
 It receives inputs from the tactical layer
 It desires external interfaces
 It supports business solutions through
 Scenario Building
 Alternate paths mapping

ESS has the following properties

 User Interfaces Component
 Database
 Menu-driven dashboard
 Model
 CHALLENGES IN DEVELOPING IS
User-Led ISD
IT centre-Led ISD

High: High: IT Domain

Business Collaborative Knowledge
Logics
ISD

Involvement
Involvement
of
of
Users
IT- Centre

Low: Business Low: IT Domain

Logics Knowledge

Undesirable Ideal Undesirable

CHALLENGES IN DEVELOPING IS
ONE POSSIBLE ANSWER: PURSUE SDLC
Tools: Use Systems Thinking approach;
Systems Requirement Events analyses; MCS of OMNIS model;
Determination #1 Context Diagrams; Estimates of projects
(Time, efforts, cost…)

Systems
Analysis #2

Systems
Design #3

Systems
Implementation #4

Systems
Maintenance #5
CONTEXT DIAGRAM
ONE POSSIBLE ANSWER: PURSUE SDLC
Tools: Use Systems Thinking approach;
Systems Requirement Events analyses; MCS of OMNIS model;
Determination #1 Context Diagrams; Estimates of projects
(Time, efforts, cost…)
Tools: Functional Systems of OMNIS
Systems model – Processes (Rules/Logics),
Analysis #2 Events…Transactions.., Process Flow
Diagrams…
Systems
Design #3

Systems
Implementation #4

Systems
Maintenance #5

CHAPTER-7,MIS-PRM43
PROCESS FLOW DIAGRAM
ONE POSSIBLE ANSWER: PURSUE SDLC
Tools: Use Systems Thinking approach;
Systems Requirement Events analyses; MCS of OMNIS model;
Determination #1 Context Diagrams; Estimates of projects
(Time, efforts, cost…)
Tools: Functional Systems of OMNIS
Systems model – Processes (Rules/Logics),
Analysis #2 Events…Transactions.., Process Flow
Diagrams…
Systems Tools: E-R Diagrams (one of the tools which is
Design #3 included in this course- there are others..);
Information Matrices; Data and Process
Matrices…
Systems Tools: User involvement through quality
Implementation #4 systems mapping; Tests- Unit, White Box, Black
Box, Integration, Validations, Performance tests
– Alpha, Beta; Installation Tests……
Systems
Maintenance #5
 SDLC- THE LIMITATIONS
Traditional SDLC methodology for current IT Projects are not
always appropriate:
Many systems projects fail to meet objectives
 Difficulty in estimating costs
 Each project is often so unique that previous experience may not provide
the necessary skills
 Objectives may be too broad or too narrow
 Opportunity may not be appropriately leveraged.
 There may not be enough time to comply each step of the SDLC