essentials of mis
TRANSCRIPT
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MIS Essentials
Dr Sharad L. JoshiProfessor
Vishwakarma Institute of Management,Pune
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What is MIS? Study of Information Systems focusing
on their use in Business and
Management MIS combines the theoretical work of
computer science, management scienceand operations research with a practicalorientation toward developing systemsolutions to real life problems andmanaging information technology
resources.
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Types of systems Transaction Processing Systems (Dealing with day-to-
day events and actions - Financial Transactions,Student Attendance, Phonecalls, Train Reservation)
Office Automation Systems (Word, Excel) Knowledge WorkSystems(Tally, PowerPoint, CAD)
Management Info. Systems (Based on TPS StudentAbsenteeism Report, Product-wise Sales, Slow
moving items report, Customer Outstandings Report ) Decision Support Systems (Production Scheduling,
Data Mining supported analytics)
Executive Support Systems (Dashboards)
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M.I.S. Model applicable to all
6 types of systemsInformationHerbert Simon Model
of Decision Making
Data
Monitoring/Feedback
Processing Logic
Computers
Human Beings
Database
Intelligence Design Choice
Decision Implementation
Performance
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Salient Features of Modern
MIS Use of Web based GUIs for acquiring and displaying
data
Increasingly faster SQL processors and search
engines to access / explore data Use of graphics and animation in GUIs
Use of multi-layer clientserver architecture to servelarge number of users (Client is Front end; server,
back end) Component based software engineering
Wide range of software products / packages
Use of advanced mining/ analytical tools
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Computer capabilities which assist(mainly)in T.P.S.
Capturing
Storing
Summarizing
Arranging
Verifying
Retrieving
Calculating
Reproducing
Classifying
Communicating
Note : For OAS, KMS, DSS and EIS moresophisticated capabilities of computer are used.
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Tools for MIS
On Line Transaction Processing (OLTP)
Internet based, interactive data captureand query processing
Relational Data Base Management
Mathematical Models, BusinessAnalytics
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M.I.S. Outputs
OLTP SYSTEM RDBMSAPPLICATIONDEVELOPMENT
SYSTEMS
DATABASE
AccountingApplications
QueryApplications
AnalysisApplications
ControlApplications
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Steps in Systems Development
for routine M.I.S. Acquiring Data, usually, through an On Line Transaction
Processing System as well as devices such as Bar Code, RFIDand Biometric terminals, or off line Data Entry
Placing Data into Tables using a Relational Data BaseManagement System(e.g. ORACLE)
Printing Reports or obtaining Screen Displays using RDBMSfeatures like SQL and DML, mainly for
Accounting Applications
Query Applications
Analysis Applications
Control Applications
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TYPES OF REPORTS, for each
of the types of Applications Statutory Compliance (Income Tax deducted
at source from salary) Knowledge update (Budget Vs Actual, Report
on slow moving items) Operation Update (Daily Sales Report,
Product Delivery Report) Decision Analysis ( Sales up or down
subsequent to price increase) Action Update (Whether urgent supplies
sought have actually arrived)
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Michael Porter on Competitive
Advantage Sustainable competitive advantage is achieved
through either or combination of Cost Leadership,Differentiation and Focus.
Specific activities through which a company cancreate competitive advantage are Inbound Logistics,Operations, Outbound Logistics, Marketing & Salesand Service
Information , used strategically, should assist inachieving superior performance in any of the areas
stated above, creating competitive advantage.
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How to gain competitive
advantage?I.T. changes the context, creating new opportunities and new threats.Competitive advantage, depends on how well, and how effectively anorganization adapts to forces of change.
Explore possibility of re-engineering existing business using IT (likebanks and newspapers)
Use information to locate niches, new market segments - geographical,demographical, social etc use Data Mining
Change structure e.g. Decentralized to Centralized ( e.g. BOLT incase of shares) or vice versa
Use IT to add value Better service, less mistakes and earn betterprices
Increase efficiency, reduce costs, compete on lower price Enter new markets otherwise inaccessible ( thru eServices) e.g. Call
Center Standardize, Improve control, expand business the way MNCs do
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MIS and organizational change MIS changes the organizations, by reducing levels in
hierarchy, restructuring flow of work, changingproducts/ processes, making decisions data-centric(rather than judgmental) and making knowledgemore important than seniority.
However, as observed by Levitt, computers alonecannot change the organization. For that to happen,
People, Tasks (what to do), Processes (how to do)and Technology have all to change simultaneously.
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Herbert Simon Model 3
Phases Intelligence phase involves scanning social,
competitive and organizational environment andunderstanding/ identifying the problem
Design phase involves generating alternatives tosolve the problem and evaluating each of thealternatives qualitatively and quantitatively.
Choice phase involves ranking the alternativesbased on a variety of criteria and choosing the mostsuitable among them.
Note that the model does not include implementationand feedback, which is said to be its limitation.
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HUMANS AS INFORMATION
PROCESSORS- 11. Humans have a psychological need for feedback.
2. Humans have a psychological value for unused data.
3. Humans have a tendency for over consumption of
information for the following reasons: Having information is considered a sign of competence ( hence
demand for Terminals and Passwords).
Much of the information is gathered for supervision and not fordecision making.
Information is often gathered to persuade and to represent.
For the above reasons, organizations favour informationgathering activity.
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HUMANS AS INFORMATIONPROCESSORS- 2
4. Information overload adversely affects theinformation processing performance of humans.
5. Individual differences in ability and approach result inhigher or lower need for information, its form andprocessing.
6. Nonverbal inputs also contribute to informationavailability and processing.
7. Humans have a limited ability to absorb and analyzequantitative data.
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TIPS FOR MIS DESIGNERS- 1
1) Information systems should filterirrelevant data.
2) Info. System should assist in definingproblem rather than leaving it to theusers.
3) Codes for human use should notexceed 5 to7 characters.
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TIPS FOR MIS DESIGNERS- 2
4) System should highlight importantdifferences as compared to assuming
that humans will notice them.5) System should provide statistical
analysis of data averages, variances,
co- relations etc. Data should beconsistent, free of basis.
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TIPS FOR MIS DESIGNERS- 3
6) Information should be provided in theform needed.
7) Information should be built around ananchor point and provide for deviationsfrom there.
8) System should provide alternatives inorder of preferences.
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TIPS FOR MIS DESIGNERS- 4
9) System output should beunderstandable both by the novice and
the skilled.10) System should provide for feedback
points such as data not received, not
processed, not circulated etc.11) System may contain some data which may
not be usable. The designers should develop
tolerance towards such demands.
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TIPS FOR MIS DESIGNERS- 5
12) Information should be kept below theoverload point.
13) Managers critical to the system must beincluded.
14) System should provide for short bursts ofinformation to suit needs of some managers.
15) The system should provide summarizeddata but should also allow for easy browsingthrough raw data.
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I.T and ITES Syllabus Topics
Evolution of computers,generations
Tele-communication, Networks
IT enabled services such as call centers,Geographical Information Systems
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Example of GIS,indicating influenceof political partiesin Corporation
Elections
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Relational Data Base ManagementSystems (RDBMS)
As an example of RDBMS study three tables for aTrain Reservation Systems viz. Form Table,Passenger Table and Train Table.
Form Table is related to Passenger Table thru FormNo. Form Table is related to Train Table thru TrainNumber.
Two examples of SQL queries follow.
Strength of the system is that despite simple tabledesign, it is capable of handling millions of records,fast and accurately.
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SQL Example 1- TrainReservation
Purpose List trains between Mumbaiand Delhi
Query
select TrainNo, TrainName
from Train_Table
where From = Mumbai and To =Delhi
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SQL Example 2- TrainReservation
Purpose Get passenger list for train 2423,compt SC7 and date = 23rd March 2012
Queryselect S-BNo, Name, Sex,Age
from Form_Table, Passenger_Table
where Form_table.FormNo =
Passenger_Table.FormNo andTrainNo = 2423 and Date = 23-03-
2012 and Compt = SC7
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Data Warehousing and DataMining (vs Dabases).
Data Warehouses are similar to Databases in that both maintainand access tables which may contain diverse data likenumbers, text, pictures, audio clips, video clips etc.
Data Warehouse has better analysis capabilities (OLAP) whileDatabase has better transaction processing capabilities (OLTP).DB is write-optimized ; DW is read-optimized . DW is betterfor analytics. Note that DW and DM handle data in GB and TB.
Data Mining is better designed for quantitative and statistical
analysis, whereas DW creates and uses simpler analyses, relyingon qualitative interpretation.
All these DB, DW and DM have 5 capabilities Store, Maintain,Access, Analyze and Present the data.
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Decision Support Systems(DSS) and
Group Decision Support Systems(GDSS)
Decision Support Systems, in the past were based on lowvolume of data, and utilized special tools and models (likeLinear Programming, Operations Research) for analysis. DSS
has now been converted into Business Intelligence, orAnalytics. It uses vast amount of data and analyses it thrusophisticated data warehousing and data mining tools.
Group Decision Support System uses Decision Support Systemmethodology but allows a number of decision makers to work togetherto arrive at a decision acceptable to the group. One of the techniques
used for GDSS is electronic brainstorming brainstorming thru anonline chat. A variation of electronic brainstorming called NominalGroup Technique , where ideas generated are put to vote andselected, is also used. GDSS is more useful in case of virtual teams.
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Business Analytics for Godrej HouseholdProducts Sales Force Automation (SFA)
SFA solution was implemented on Tablet computing deviceswith a view to capture transactions related to orders, collectionand return of goods electronically and transmit them to the
billing system and returns databases. The tablet computer also displays information about sales
history, schemes, promotions and achievement Vs. target ofsalesmen. It can even suggest an order to the salesman for aparticular outlet, based on its past record and current purchase.
IBM XPD Desktop, located at the office, integrates data receivedthru tablet application with backend billing.
The SFA solution utilizes IBM Business Analytics software.
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E (Executive/ Enterprise/Everybodys) Information System
E.I.S. started as Executive Information System,meant for senior executives but is currently used alsoat other levels where people need to take decisions
based on latest and most relevant information. Ituses data analysis tools and presentation techniquessuch as Executive Dashboards . Dashboards presentinformation related to Key Result Areas (KRA) or Key
Performance Indicators (KPI) in a single screen.Capability to drill down from aggregate data tocomponents is an essential pre-requisite of EIS.Examples of dashboards follow.
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Typical Dashboards.
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Expert Systems and ArtificialIntelligence
Expert Systems try to incorporate experts knowledgeinto computer software so as to assist decisionmaking by non-experts (e.g. medical diagnosis, Tax
planning). The Expert Systems have knowledge DataBase and inference engine (i.e. logic) which is usedto draw inferences.
Artificial Intelligence ventures into areas which has
always required human intelligence. LanguageTranslation and Speech Recognition are twoexamples. AI uses algorithms similar to humanreasoning, so as to assist, if not to take decisions.
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Management Issues in MIS (1)Information Security and Control
External Threats
Thru Internet and Thru Remote Access
Problems Hacking, Identity Theft, data loss
Firewalls offer a partial solution
Internal Threats
Password theft, Misuse of authorization, malware (viruses),physical theft of Hardware and Software
Anti Virus Solutions, Access Reviews, Frequent Change ofpasswords, back-ups and Business Process Continuity planning,physical controls, maintaining a log of all system activities (audittrails) are the techniques used to combat the threat.
Periodic Information Security Audit is advisable for both.
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Management Issues in MIS (2) SoftwareQuality Assurance
Software quality assurance covers attributes such as reliability,efficiency and promised performance .
In order to assure quality of software, 3 aspects need to be
attended to.1. Creating a quality profile Specifying qualitative and
quantitative aspects of software ( such as number of problemsreported, number of updates supplied)
2. Process control thru Requirements, Design, Coding and Testing
Checklists , software engineering, Documentation etc.3. Obtaining third party certification from agencies such as ISO
about conformance to quality procedures.
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Management Issues in MIS (3) EthicalDimensions, Intellectual Property Rights, GlobalInformation Systems
Ethical Aspects are mainly related to misuse of computertechnology for personal benefit, intentional manipulation ofdata, indulging in cybercrime, violating data privacy, even
insensitive automation. Intellectual Property Rights concern software and hardware
piracy, violation of patents, breach of trade marks, breach ofconfidence relating to information held in trust.
Managing Global Information Systems involve dealing with
cultural, political and economic challenges posed by differentcountries, developing appropriate business and IT Strategies forthe global marketplace and developing a portfolio ofapplications to support them.