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MANAGEMENT INFORMATION SYSTEM
MIS
Management
Information
System
Management: It is the process by which managers create, direct, maintain and operate purposive organization through systematic, coordinated co-operative human effort. Information: Information consists of data that have been retrieved, processed or other wise used for informative or inference purposes, argument or as a basis for forecasting or decision making. System: System can be described simply as a set of elements joined together for a common objective. Example: organization is a system, and the parts are divisions, departments, units etc. are subsystem.
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Changing Environment and its impact on Business
Change handling in an organization reality & integral part of every manager Need for changes 1. External factors Market place, Govt. laws, Technology & Economic changes 2. Internal factors org work force, structure, introduction of new products
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Forces for change:
1. 2. 3.
4. 5. 6.
People life style, purchasing habits, compensation packages, org structure, culture & mgt style. Technology Information processing due to advance in its computers & s/w, laptops, spread sheet, ppt, e-commerce, e-business, ERP Electronic data interchange, electronic fund transfer, networks- LAN,WAN & WWW. Built resistance to change Communication Competition Social trends
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Process of change management
Design organizati on Develop culture Create change vision
Deliver business benefits
Process of change manageme nt
Define change strategy
Manage people performan ce
Develop leadership Build communi cation
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Key components involved in implementing business
Data Information Information & Decision technology Production technology
Custom er & supplier power Environ Econo mental mic factors Culutra l technol ogy
Manage ment
Style Syste m Risk meas ures
Business process
Inter organizati onal Cross functiona l Intra functiona l
People
Skills Behavior Culture Values
Product services and performan ce
Cost Quality Customer satisfactio n Innovation Shareholde rs value
Formal organizati on Informal group Structure Team/wor k group Jobs Coordination
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What is Data?
Raw Material Is the collection of facts, which is unorganized but can be organized in to useful information
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Types of Data
Alphanumeric Data
Numbers, Letters, and Other Characters
Image Data
Graphic Images and Pictures
Audio Data
Sound, noise, or tones
Video Data
Moving images or pictures.
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Data Transformed into Information
Information
A collection of facts organized in such a way that they have additional value beyond the value of facts themselves. Guidelines and procedures used to select, organize, and manipulate data to make it suitable for a specific task. Raw facts
Process Knowledge
Data
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Characteristics of valuable information
To be valuable to managers and decision makers, information should have the characteristics: Accurate (error free)
Inaccurate information generated from inaccurate data (Garbage in, Garbage Out (GIGO)
Complete (contains all facts)
Investment report w/o all important costs is incomplete.
Economical (for its value)
Must balance value of the information w/ cost of producing it.
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Characteristics of valuable information
Flexible (can be used for many purposes)
Information can be used by many individuals for different purposes
Reliable (you can depend on)
Reliability depends on the source of the information.
Relevant (to the decision maker)
Information regarding lumber does not help a computer chip maker.
Simple (to understand and use)
TMI (Too Much Information) causes Information overload. Causes decision maker to loose track of whats really important.
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Characteristics of valuable information
Timely (when is needed)
Last quarters numbers may not help for this quarter.
Verifiable (you can check if it is correct)
Check the source of the data.
Accessible (authorized users can obtain info.)
Information should be easily accessible by authorized users to be obtained in the right format and at the right time to meet their needs.
Secure (security issues)
Information should be secure from access by unauthorized users.
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Data Versus Information
Monthly Sales Report for West Region Sales Rep: Charles Mann Emp No. 79154 Item Qty Sold Price TM Shoes 1200 $100
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Information system levels
Strategic planning Tactical planning Supervisory Functional
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Information system and decision making
Intelligence find or recognize a problem, need, or opportunity.
Design consider ways to solve the problem, fill the need, or take advantage of an opportunity. Choice examine and weigh the merits of each solution, estimate the consequences of each, and choose the best one. Implementation carry out the chosen solution, monitor the results, and make adjustments as necessary. Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
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Information system and decision making
Defining the problem Developing an alternative solution Select the solution Design the solution Implement the solution
Define a problem or opportunity using systems thinking (recognizing systems, sub-systems and system inter relationship in a situation) Design and evaluate alternate system solution
Select the system solution that best meet your requirements
Design the selected system solution to meet your requirements
Implement and evaluate the success of the designed system
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Foundations of Information Systems in Business
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Foundation Concepts: Information Systems and Technologies
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Information Systems Framework
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Information Systems Concepts (Continued)
Foundation Concepts Fundamental concepts about the components and roles of information systems. Information Technologies Major concepts, developments, and management issues in information technology.
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Information Systems Concepts (Continued)
Business Applications The major uses of information systems for operations, management, and competitive advantage. Development Processes How business professionals and information specialists plan, develop, and implement information systems. Management Challenges The challenge of managing ethically and effectively.
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What IS a system?
A group of interrelated or interacting elements forming a unified whole, OR A group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process (dynamic system). Three basic interacting components:
Input Processing (transformation process) Output
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Add Feedback and Control Loops..
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Other System Characteristics
A system exists and functions in an environment containing other systems. Systems that share the same environment may be connected to one another through a shared boundary, or interface.
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Components of an INFORMATION System
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Components
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Components of an Information System (Continued)
People Resources End Users IS Specialists Hardware Resources Computer systems Peripherals Software Resources System software Application software Procedures
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Data Resources Data versus Information Network Resources Communication media Network support
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Components of an Information System (Continued)
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Components of a System
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Information Products
Focus is on the end-user. They are the result of IS activities Input Processing Output Storage Control
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Foundation Concepts: Business Applications, Development, and Management
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Major Roles of IS
Support Competitive Advantage Support Business Decision Making
Support of Business Processes and Operations
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The Present and the Future
E-Business The use of Internet technologies to internetwork and empower Business processes Electronic commerce, and Enterprise communication & collaboration Within a company & with its customers, suppliers, & other business stakeholders.
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Trends in Information Systems
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Types of Information Systems
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Types of Information Systems
Operations Support Systems Transaction processing systems
Batch transaction data accumulate over time, processed periodically. (Cheques in bank) Real-time data processed immediately after a transaction occurs. (ATM) e.g.: Sales process, inventory process & Accounting system
Process Control Systems monitor & control physical
processes.( petroleum refinery, steel production & pharmaceuticals)
Enterprise Collaboration Systems (Work group
communication) e.g.: emails, chat, video conference
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Types of Information Systems (continued)
Management Support Systems Management Information Systems pre-specified
reports & displays to support decision-making. e.g.: sales analysis, production performance & cost.
Decision Support Systems provide interactive ad hoc
support. e.g.: product, pricing, profitability, risk analysis & forecasting.
Executive Information Systems critical
information tailored to the information needs of executives. (easy access to analyze the business performance) e.g.: competitors actions & economic development.
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Types of Information Systems (continued)
Other Classifications Expert systems expert advice Knowledge management systems computer based
organising sharing diverse forms of business information creates with in organisation. support the creation, organization, & dissemination of business knowledge e.g.: doc libraries, discussion database, website database
Functional business systems (BIS) support the
basic business functions of organisation.
Strategic information systems strategic advantage
over its competitors. e.g.: innovationoperation efficiency
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Managerial challenges of information technology
Information systems can be mismanaged and misapplied so that they create both technological and business failure.
Top Five Reasons for Success
User involvement Executive management support Clear statement of requirements Proper planning Realistic expectations
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Top Five Reasons for Failure
Lack of user input Incomplete requirements and specifications Changing requirements and specifications Lack of executive support Technological incompetence
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Developing IS Solutions to Business Challenges
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First Assignment Questions
1.
2.
3.
4.
Define change management. Explain the process of change management. Explain how information technology is used to implement a variety of competitive strategies. What are the different types of decisions to be taken at different levels of organization? management information system means computers. Do you agree with the statement? Briefly explain the types of information system.
5.
last date for submission 19/10/2011.
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Presentations
Pick any one number from the following
1. 2. 3. 4. 5. 6. 7. 8.
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Topics
1. Airtel PCO (Public Calling Office) 2. BSNL Broadband 3. Reva electrical car 4. Lux soap 5. BSE stock exchange 6. VRL logistics 7. Caf Coffee Day 8. KSRTC
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Format for presentation
1. 2. 3. 4. 5. 6. 7. 8. 9.
Front page-----------------1 Contents------------------- 1 History--------------------- 2 Company profile ---------2 Organisation structure--1 vision & mission ----------1 4Ps/7ps of marketing --2 to 3 Conclusion -----------------1 Bibliography--------------1
last date for submission 22/10/2011.
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