Unit I

Core Concepts in Information Systems

What is MIS?

An information system designed by an organization to collect collect, manipulate, and disseminate data or information on a program.

Includes hardware, software, people, communications systems, and data.

Allows managers to plan, monitor, and evaluate operations and performance of an activity Designed and used for administrative purposes

Role of MIS in Business

Roles:

support of business operations

support of managerial decision making

support of strategic competitive advantage

‘In an organization, information is the blood and MIS is the heart’.

Subsytems and Supersystems of IS

I

Organization:- business process- people- data- strategy

ISITITInformation Technology

Information Systems

BusinessEnvironment

Progress in MIS

IN

REAL

TIME

AT

VERY

LOW

COST

Information can be created in multimedia

Information can be stored

Information can be retrieved

Information can be shared

Information can be distributed

Information can be processed

Information can be transmitted

Enabling Role of Information Technology

Old Business Rule Technology intervention

New Business Rule

Information can appear only at one place

Shared databases Information appears simultaneously

Only experts can perform complex jobs

Expert Systems Generalists can act as experts

Businesses must choose between centralization and decentralization

Telecommunication networks

Centralization and decentralization possible

Managers make all the decisions

Software tools Decision making is part of everyone’s job

Enabling Role of Information Technology

Old Business Rule Technology intervention

New Business Rule

Field persons need offices

Wireless/internet/laptops

Field offices can be virtual

Personal contacts Internet / email Effective contacts

Find out the information

Enterprise software Information comes to you

Plans get revised periodically

On line computing Plans get revised instantly

Impact of MIS and IT on an Organization

As transactional Information Systems:

enables enterprise-wide shared and integrated databases through :

i. improved decision making

ii. improved MIS reporting

enables enterprise-wide cross functional work flow automation through :

i. improving Intra-organizational transactions

ii. reducing in business processes lead times

iii. improved inventory and working capital management

iv. improved financial reconciliation

Impact of MIS on an organization

Improves business process performance through:

automation of business processes

simplification of business processes

elimination of non value adding business processes

reengineering of business processes

Impact of MIS on an organization

MIS as a coordination and planning information system results in:

improved coordination among sales, production stores, purchase, and accounts due to close loop systems and online data.

dynamic scheduling of production and purchase based on feedback from sales and visa versa

Sales Order Processing

Fin. Accounting

Hist./Stats.

Sales Quotations

SalesContracts

EDI

Manually

Order entry

Invoicing

Delivery

Close Order

Dispatch ListDispatch NotesConsignment Notes

Invoice

Margin ControlCustomer Monitoring

Inventory CheckAdditional Costs

InstallmentsSales Order/

Quotation Existence

Margin ControlCustomer Monitoring

Inventory CheckAdditional Costs

InstallmentsSales Order/

Quotation Existence

Sales Order

Order AcknowledgmentPicking Lists

Sales Statistics

Display codes

Period Codes

Layout Codes

Sales Budget

Sorting CodesParameters

group 1budgetsales

col.1 diff.

group 2budgetsales

col.2

budgetsalesdifference

from/till

group 1 group 2

The Competitive Edge • To be competitive today you need:

the flexibility to take on new business opportunities as they arise

a business framework that lets you

i. optimize business processes

ii. cut costs

ii. improve customer service

iv. shorten your time to market

comprehensive decision support tools to provide up-to-date information on revenues, budget performance, sales, and cash-flow

• E-business can help provide the competitive edge you need

E-Business

Telecommunication

Information Technology

Business E-Business

What is E-Business?• E-business is a new way of conducting, managing, and executing business transactions using IT and telecommunications networks (Internet and Extranet)

• E-business is remaking the business world by:

- redefining virtually every business process and function- changing conventional concepts and rules about strategic

alliances, outsourcing, competition, industry specialization, and customer relationships

- creating a wealth of information about customers, enabling businesses to anticipate and satisfy individual needs with pinpoint precision

- blurring the lines between industries- challenging every business to reinvent itself

It provides companies with new, more cost and time-efficient means

for working with customers, suppliers, and development partners