1. Management Information Systems

2. 2 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

3. 3 GLOBALIZATION –MANAGEMENT & CONTROL –COMPETITION IN WORLD MARKETS –GLOBAL WORK GROUPS –GLOBAL DELIVERY SYSTEMS

4. 4 TRANSFORMATION –KNOWLEDGE-BASED ECONOMIES –PRODUCTIVITY –NEW PRODUCTS & SERVICES –KNOWLEDGE AS AN ASSET –TIME-BASED COMPETITION –SHORTER PRODUCT LIFE –TURBULENT ENVIRONMENT –LIMITED EMPLOYEE

5. 5 TRANSFORMATION OF ENTERPRISE –FLATTENING –DECENTRALIZATION –FLEXIBILITY –LOCATION INDEPENDENCE –LOW TRANSACTION COSTS –EMPOWERMENT –COLLABORATIVE WORK

6. 6 SOCIOTECHNICAL PERSPECTIVE –OPTIMIZE SYSTEM PERFORMANCE: –TECHNOLOGY & ORGANIZATION MUTUALLY ADJUST TO ONE ANOTHER UNTIL FIT IS SATISFACTORY

7. 7 NEW OPTIONS FOR ORGANIZATIONAL DESIGN: –FLATTENING ORGANIZATIONS –SEPARATING WORK FROM LOCATION –REORGANIZING WORK-FLOWS –INCREASING FLEXIBILITY –REDEFINING ORGANIZATIONAL BOUNDARIES

8. 8 THE CHANGING MANAGEMENT PROCESS: –ELECTRONIC COMMERCE –ELECTRONIC BUSINESS –ELECTRONIC MARKET

9. 9 CHALLENGE OF INFO SYSTEMS –STRATEGIC: COMPETITIVE & EFFECTIVE –GLOBALIZATION: MULTINATIONAL INFO –INFO ARCHITECTURE: SUPPORT GOALS –INVESTMENT: VALUE OF INFORMATION –RESPONSIBILITY & CONTROL: ETHICS

10. 10 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

11. 11 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

12. 12 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

13. 13 MIS – A concept: Management Koontz – Art of getting things done through and with the people in formally organized groups

14. 14 Managerial functions: Planning Organizing Staffing Directing Control

15. 15 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

16. 16 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

17. 17 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

18. 18 Directing –Issuing commands – classical view –Modern philosophy Communication Motivation Leadership –People have to be guided, motivated and led by the MANAGER

19. 19 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

20. 20 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

21. 21 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

22. 22 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

23. 23 Info needs of different levels: According to J. Kanter (1996) Top Management –Unstructured –Non-programmed –Futuristic –Approximate –External

24. 24 Operating Management: –Structured –Programmed –Historical –Exact –Internal

25. 25 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

26. 26 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

27. 27 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

28. 28 MIS: A Definition: An MIS is –An integrated (computer-based) user-machine system –For providing information –To support decision-making functions –In an organization

29. 29 The system utilizes: –Computer hardware and software –Manual procedures –Models for decision-making, and –A database

30. 30 Interdisciplinary Nature: Borrowed concepts from: –Computer science –Accounting –Operations Research –Management sciences

31. 31 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

32. 32 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

33. 33 MIS Functions: Data capturing Processing of data Storage Retrieval Dissemination of MI – finished product of MIS