MANAGEMENT INFORMATION SYSTEM

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1 WHAT IS MIS MANAGEMENT INFORMATION SYSTEM The MIS is defined as a system which provides information support for decision making in the organisation The MIS is defined as an integrated system of men and machine for providing the information to support the operations, the management and the decision making function in the organisation The MIS is a system based on database of the organisation evolved for the purpose of providing information to the people in the organisation The MIS is defined as computer-based information system What MIS does- Handling of voluminous data Confirmation of the validity of data and transaction Complex processing of data and multidimensional analysis Quick search and retrieval Mass storage Communication with user on time Fulfilling the changing needs of the information DECISION MAKING : Decision- is a statement of conclusive result, a judgment and a resolution A DECISION is the choice out of several options made by the decision maker to achieve some objective in a given situation Characteristics of Business decision making : Sequential in nature- not isolated, chain complex process due to risk and trades off- Influenced by personal values of decision maker Made in institutional setting and business environment require creativity, imagination and deep understanding 1

2 DECISION MAKING PHASES (Herbert Alexander Simon) INTELLIGENCE: Raw data collected, processed and examined, identifies a problem solving for decision DESIGN: Inventing, developing, and analyzing the different decision alternatives and testing the feasibility of implementation CHOICE: Select one alternative as a decision based on the selection criteria Programmed decisions- based on rule, method or even guidelines [ex gas cylinder order] : Programmed decisions are made through MIS, effectiveness of rule can be analyzed, reviewed and modified time to time for improvement. For lower lever of management. Non-programmed decisions- no rules, no model, infrequent, MIS can help to develop support system and give relevant information, for top management Role of MIS in decision making : Analysis phase: MIS has the data, the data is scanned, examined, checked and edited through MIS Design phase : Manager can generate and test the different decisions Choice phase: Manager can make analysis of all the alternatives The MIS tries to convert every open system to a closed decision making system by providing information support for the best decision. The MIS gives information support to manager. A good MIS tries to convert a decision-making situation under uncertainty to the situation under risk and further to certainty Programmed decisions are made through MIS, effectiveness of rule can be analyzed, reviewed and modified time to time for improvement 2

3 MIS can help to develop support system and give relevant information, for top management for non programmed decision Organization Structure of MIS Centralized or Decentralized organization of MIS Allocation of hardware and software resources Maintenance of MIS Fitting the organization of MIS in the corporate organization, its culture and the management philosophy Decision Support System DSS is a system that provides information for making semi-structured and unstructured decisions DSS provides tools, data models and languages to end user, while MIS provides information to end users DSS has much analytical capabilities than MIS DSS works on iterative process DATA BASE Production data Marketing data Finance data Human Resource data Components of DSS DSS SOFTWARE Manage database Manage model base Manage end user interface MODEL BASE Statistical models Forecasting models Planning models Operational models User Interface 3

4 MIS Development process Study the business environment Study the organization and culture Identify mission and business goal Identify critical success factors Identify critical business applications Ascertain the business strategy Identify business decision needed to implement strategy Develop key performance indicators Determine MIS Goals supporting business goals Identify data and information needs meeting the MIS Goals and business goals Develop IS and IT strategy to meet the goal Determine IS and IT support structure to meet data and information needs Determine MIS superset Link and Map MIS and information outcomes to business goals Design information reporting structure Periodic reports Exception reports Control reports Design KMS and BI System 4

5 USER INTERFACE DESIGN The point at which a user or a user department or organization interacts with a computer system. The part of an interactive computer program that sends messages to and receives instructions from a terminal user. MIS is designed for User who are human being. The human beings are drivers of MISto meet their information needs The information system is used by an interactive process between human being and MIS. MIS is operated by user. Many times MIS software is being good the USER INTERFACE are not properly built causing discomfort to user 5

6 Evaluation of Information system MIS TESTING : Unit testing : smallest portion test, it is code level testing. confirms quality od data, limit, range and data flow. Integration testing : confirms works together Validation testing: confirms requirement specification of user System testing: whole system testing after first 3 tests confirms, Security-stressperformance on live mode 6