Unit-1

Management Information System

Meaning

It is an integrated man machine system Provides information To support the operations & decision making

MIS is an Information system which helps in providing the management of an organization with information which is used by management for decision making.

Definition:-

"An integrated user-machine system for providing information to support operations, management and decision making functions in an organization. The system utilizes computerized and manual procedures; models for analysis, planning, control and decision making; and a database."

MIS is referred to as set of procedures that collects, processes, stores and disseminates information to support decision-making.

Management information systems are those systems that allow managers to make decisions for the successful operation of businesses.

4 Components of MIS

1. Data gathering Data pertinent to the operations of the organization are gathered from both internal and external sources.

2. Data Entry

The above data is inputted and stored in databases as the information processing core of the system.

3. Data transformation

Data is transformed into useful information through the application of computer software and judgments made by technical support staff and other system users.

4. Information Utilisation

This useful information is retrieved as needed by the management and technical personnel and applied to a wide variety of decisions related to the conduct of organizational operations.

MIS Evolution

1960 Electronic data processing (EDP), transaction processing systems (TPS) 1960s, another role was added to the use of computers: the processing of data into useful informative reports

1970s, Decision support systems (DSS) was born 1980 Executive information systems EIS

Expert systemsKnowledge management systems

1990s Enterprise Resource Planning (ERP) systems. 1990s MIS to e-commerce

Data, Information, Knowledge and Intelligence Data:

Data means raw facts or data in context

Information

“Data processed for meaning is information “

Information is produced by assigning meaning to data relevant to mental objects.

Knowledge

“Knowledge is the subjective interpretation of Information” and approach to act upon in the mind of perceiver.

Intelligence

“Information processed for understanding is intelligence”.

Intelligence deals with all the things which should be known in advance of initiating a course of action

Intelligence or wisdom embodies awareness, insight, moral judgments, and principles to construct new knowledge and improve upon existing ones.

Following Bank example would illuminate the definitions:

- Data: The numbers 100 or 5, out of context

- Information: Principal amount of money: $100, Interest rate: 5%

- Knowledge: At the end of Year I get $105 back

- Intelligence: Concept of growth

Concept of MIS

Management

Management is usually defined as planning, organizing, directing, staffing and controlling the business operation. This definition, which evolved from the work of Henri Fayol in the early 1900s, defines what a manager does, but it is probably more appropriate to define what management is rather than what management does.

If management has knowledge of the planning, organizing, directing, and controlling of the business, its decisions can be made on the basis of facts, and decisions are more accurate and timely as a result.

Jnformation

Information is what is used in the act of informing or the state of being informed. Information includes knowledge acquired by some means. It is processed data which in turn is collection of raw facts, observations and figures.

System

A system is a scientific method of inquiry, that is, observation, the formulation of an idea, the testing of that idea, and the application of the results. Data are facts and figures. However, data have no value until they are compiled into a system and can provide information for decision making.

Data versus Information

Data

Data refers to raw, unevaluated facts, figures, symbols, objects, events, etc. Data may be a collection of facts lying in storage, like a telephone directory or census records.

Information

Information is data that have been put into a meaningful and useful context and communicated to a recipient who uses it to make decisions. Information involves the communication and reception of intelligence or knowledge

Information is refined data

Input Process Output

Objectives of MIS:

Managers play a key role in any organization. They are responsible for taking decisions appropriate to the need of the market. Information systems have become the main tool used by managers in decision making. Managers perceive information as the driving force to achieve success in any business.

Hence there is a need for MIS as:

Support of its business process and operations Support of decision making by its employees and managers Support of its strategies for competitive advantage-(Gaining a

strategic advantage )

Advantages of MIS (uses and Benefits)

Strategic Planning

Management Control

Operational Control

In all the levels the information is very essential.

1. MIS can be used in Problem solving process.

Rawmaterial Process Finished

product

Information

ProcessData

2. It facilitates Decision making.

3. MIS improves the quality of decision.

4. It facilitates planning:

MIS improves the quality of plants by providing relevant information for sound decision – making. Due to increase in the size and complexity of organizations, managers have lost personal contact with the scene of operations.

5. Communicating information.

6. Improving the efficiency of operations.

7. Minimizing the duplication of efforts.

8. It makes control easier:

MIS serves as a link between managerial planning and control. It improves the ability of management to evaluate and improve performance. The used computers has increased the data processing and storage capabilities and reduced the cost.

9. Time saving (with use of computer process)

10. It brings Co-ordination:

MIS facilities integration of specialized activities by keeping each department aware of the problem and requirements of other departments. It connects all decision centers in the organization

11. Job security (for IT persons)

12. MIS assembles, process, stores, Retrieves, evaluates and disseminates the information.

Functions of MIS

1. Data capturing

MIS captures data from within and outside the organization and from internal and external sources of the organization. Data capturing may be manual or through computer terminals.

2. Store and processing of data

The captured data is processed to convert it into the required management information. Processing of data is done by such activities as calculating, comparing, sorting, classifying and summarizing.

3. Storage of information

MIS stores processed or unprocessed data for future use. Stored data is commonly organized into fields, records, files and databases.

4. Retrieval of information

MIS retrieves information from its stores as and when required by various users. As per the requirements of management users the retrieved information is distributed or processed again.

5. Dissemination of information

Information which is a finished product of MIS is disseminated to the users in the organization. The main function of MIS is to help the managers and the executives in the organization in decision making.

User

Source

Data capture Processing Dissemination

Storage of data

Retrieval

Importance of MIS:

1. MIS is always management oriented and keeps in view every level of management and gets the desired information.

2. Integrated - refers to how diff components (sub systems) are actually tied up together. eg: diff departments of organization linked together.

3. Useful for planning - as every organization makes log-term and short-term plans with the help of information like sales & production, capital investments, stocks etc management can easily plan.

4. Effective MIS helps the management to know deviations of actual performance from pre-set targets and control things.

5. It is important for increasing efficiency.

6. MIS provides updated results of various departments to management.

7. MIS is highly computerized so it provides accurate results .

8. MIS adds to the intelligence , alertness , awareness of managers by providing them information in the form of progress and review reports of an ongoing activity.

9. Helps managers in decision- making .

Characteristics of MIS

1. Management-oriented:

The designing of MIS take care of the managers who meet the information requirement. The development of the system starts after deciding the management needs and keeping in view the overall objectives of the management. The basic objective of MIS is to provide information support to the management in the organization for decision making

2. Management directed:

When MIS is management-oriented, it should be directed by the management because it is the management who tells their needs and requirements more effectively than anybody else. Manager should guide

the MIS professionals not only at the stage of planning but also on development, review and implementation stages so that effective system should be the end product of the whole exercise in making an effective MIS.

3.Integrated:

It means a comprehensive or complete view of all the sub systems in the organization of a company. Development of information must be integrated so that all the operational and functional information sub systems should be worked together as a single entity. This integration is necessary because it leads to retrieval of more meaningful and useful information.

4. Common data flows:

The integration of different sub systems will lead to a common data flow which will further help in avoiding duplicity and redundancy in data collection, storage and processing. For example, the customer orders are the basis for many activities in an organization viz. billing, sales for cashing, etc. Data is collected by a system analyst from its original source only one time.

5. Heavy planning-element:

The preparation of MIS is not a one or two day exercise. It usually takes 3 to 5 years and sometimes a much longer period. So the system expert has to keep 2 things in mind – one is that he has to keep future objectives as well as the firm’s information well in advance and also he has to keep in mind that his MIS will not be obsolete before it gets into action.

6. Sub System concept:

When a problem is seen in 2 sub parts, then the better solution to the problem is possible. Although MIS is viewed as a single entity but for its effective use, it should be broken down in small parts or subsystems so that more attention and insight is paid to each sub system. While making or breaking down the whole MIS into subsystems, it should be kept in mind that the subsystems should be easily manageable.

7. Common database:

This is the basic feature of MIS to achieve the objective of using MIS in business organizations. It avoids duplication of files and storage which leads to reduction in costs. Common database means a “Super file or Master file” which consolidates and integrates data records formerly stored in many separate data files. The organization of the database allows it to be accessed by each subsystem and thus, eliminates the necessity of duplication in data storage, updating, deletion and protection.

8. Computerized:

MIS can be used without a computer. But the use of computers increases the effectiveness and the efficiency of the system. The queries can be handled more quickly and efficiently with the computerized MIS. The other benefits are accuracy, storage capacity and timely information.

9. User friendly/Flexibility:

An MIS should be flexible i.e. there should be room for further modification because the MIS takes much time in preparation and our environment is dynamic in nature. MIS should be such that it should be used independently by the end user so that they do not depend on the experts.

10 .Information as a resource:

Information is the major ingredient of any MIS. So, an MIS should be treated as a resource and managed properly.

Disadvantages of MIS (Limitations)

1. Unemployment –

While information technology may have streamlined the business process it has also created job redundancies, downsizing and outsourcing. This means that a lot of lower and middle level jobs have been done away with causing more people to become unemployed.

2. Privacy

Though information technology may have made communication quicker, easier and more convenient, it has also bought along privacy issues. From cell phone signal interceptions to email hacking, people are now worried about their once private information becoming public knowledge.

3. Lack of job security

Industry experts believe that the internet has made job security a big issue as since technology keeps on changing with each day. This means that one has to be in a constant learning mode, if he or she wishes for their job to be secure.

4. Dominant culture

While information technology may have made the world a global village, it has also contributed to one culture dominating another weaker one. For example it is now argued that US influences how most young teenagers all over the world now act, dress and behave. Languages too have become overshadowed, with English becoming the primary mode of communication for business and everything else.

5. Constant monitoring:

MIS goes for constant monitoring to be effective. It takes more work and time of people to carry out this function.

6. High expenses:

It needs more money to develop and implement information system.

7. Require more time:

As already said that MIS is not an easiest task to complete in two or three days it takes more than one year to develop and install. So more and more time is required to implement MIS

8. Training is required

To run MIS effectively it needs highly trained people to operate the system.

9. Captures wrong or incomplete information:

As MIS accepts what the input is given there may be wrong and incomplete information

10. Training time for employees:

MIS needs trained people to operate. So training is to be given. It also wastes the time that are involved in training programme.

11. MIS takes only quantitative factors

MIS does not take the qualitative factors like employee morale, satisfaction level etc. It takes only quantitative factors.

12. Quality depends upon the input

Role of MIS

(In decision making and in an organization)

Main role is to provide information for decision making

Great quantity of data is used in various ways

Gather, analyze and report data in day to day transactions

With use of computers it gives statements and reports to implement strategy

For DSS it applies what-if analysis

MIS not only provides information but also it saves valuable time by using computers

It facilitates faster decision making

It encourages MBO process

MIS also helps a company to become a market innovator

Also it gains competitive advantage by unique feature.( by the use of information)

MIS is important for all levels of organization.

Also it is essential for all the operations and functions of an organization

Information flow is continuous in all levels and operations

Hence MIS plays a vital role in an organization and also in decision making process. It can be simplified in general roles are,

Information Flow(in an manufacturing unit) :-

A management information system is a system that has important tools to support, analyze, deliver and add reliability to any organization. It ensures that appropriate data is collected from various sources, processed and sent to needy destinations. Also this helps to solve businesses problems. The term MIS is often used to submit to a group of information management methods tied to the support of human decision making, e.g. Decision Support Systems, Expert systems, and Executive information systems.

Supports for business process

Supports for decision making

Supports for competitive advantage

Customer A/CPurchasing

Manufacturing

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DistributionR &

D

Inventory

Impact Of MIS:

MIS has a major impact on the functions of any organization. The organization derives benefits from the systems in the following form:a) speedy access to information,b) interpretation of data,c) quick decisions,d) speedy actions,e) increased productivity and thereby increase in the profitf) reduced transaction cost

Nature & Scope of MIS:

1. Effective utilization of information technologies in organizational context.

2.Information systems applications in organisations such as transaction processing, routine data processing, decision support, office support, computer-integrated manufacturing, expert support, executive support and support for strategic advantage plus the coordination and interaction of such applications.

3. MIS systems can be used to transform data into information useful for decision making. Computers can provide financial statements and performance reports to assist in the planning, monitoring and implementation of strategy.

4. MIS systems provide a valuable function in that they can collate into coherent reports unmanageable volumes of data that would otherwise be broadly useless to decision makers.

5. MIS systems can also use these raw data to run simulations hypothetical scenarios that answer a range of ‘what if’ questions regarding alterations in strategy. For instance, MIS systems can provide predictions about the effect on sales that an alteration in price would have on a product.

6. Not only do MIS systems allow for the collation of vast amounts of business data, but they also provide a valuable time saving benefit to the workforce.

7. MBO is a process by which mangers and subordinates agree upon a series of objectives for subordinates to attempt to achieve within a set time frame. The aim of this objective is to provide a set of key performance indicators by which an enterprise can judge the performance of an employee or project.

Information System

Organized collections of hardware, software, policies, procedures & people which store, process & provide access to information system.

An information system can be defined technically as a set of interrelated component that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization.

The information system is a system of group of interrelated components working together towards a common goal by accepting inputs and producing outputs in an organized transformation process.

Definition of Information Technology:

The branch of engineering that deals with the use of computers and telecommunications to retrieve and store and transmit information

Information technology is the use of computers and networks to store, process, and receive data

Information technology, in simple terms, is concerned with all forms of tools, techniques, and technology applied for transmitting, storing, processing and disseminating information.

An IS Framework for Business Professionals

The figure illustrates a useful conceptual framework that outlines what a manager or business professional needs to know about information systems. It emphasizes five areas of knowledge:

•Foundation Concepts

This includes fundamental behavior, technical, business, and managerial concepts like system components and functions, or competitive strategies

•Information Technologies

It involves concepts, developments, or management issues regarding hardware, software, data management, networks, and other technologies

•Business Applications

It includes major uses of IT for business processes, operations, decision making, and strategic/competitive advantage.(production ,finance, marketing and HR)

•Development Processes

Business applications

Information technologies

Foundation concepts

Management challenges

Development process

IS

This includes how end users and IS specialists develop and implement business/IT solutions to problems and opportunities arising in business. (SDLC stages)

• Management Challenges

This includes how effectively and ethically manage the IS function and IT resources to achieve top performance and business value in support of the business strategies of the enterprise. (Biometric system, back up files, disaster recovery, security etc)

Types of Information system (Establishing Framework)

Two categories depending upon their focus on the kind of activities in a business enterprise

1. Operations Support Systems2. Management Support Systems

OperationsSupportSystems

Management SupportSystems

TransactionProcessing

Systems

ProcessControl

Systems

EnterpriseCollaboration

Systems

Management Information

Systems

DecisionSupportSystems

ExecutiveInformation

Systems

Information Systems

Operations Support Systems

- Focus on the operations of the enterprise- Objective is to improve the operational efficiency

- Use internal data primarily- For lower level of managers

Classified into the following categories

a) Transaction Processing Systemb) Process Control Systemc) Enterprise Collaboration System

a) Transaction Processing Systems

• Process business exchanges• Maintain records about the exchanges• Handle routine, yet critical, tasks• Perform simple calculations

Transaction can be internal or external

Internal: occurring inside the organization

External: occurring outside the company, customer places an order from a company catalogue(online or real transaction processing and Batch processing)

b) Process Control System

Monitors & control physical process

c) Enterprise Collaboration Systems

- Enhance team and workgroup communication and productivity, and include applications that are sometimes called office automation system.

Management Support System

Management Support Systems provide information and support needed for effective decision making by managers

Classified into following categories

a) Management Information Systemb) Decision Support Systemc) Executive Support System

a.) Management Information System

Routine information for routine decisions Operational efficiency Use transaction data as main input Databases integrate MIS in different functional areas

- Offers summary and exception reports on the operations of the enterprise and are also called as operations support systems.

b) Decision Support System

- Gives direct computer support to managers during the decision making process.

- The users have full control of the system.

c) Executive information system

Provide critical information tailored to the information needs of executives

- Top managers do not have the time to study and analyze large volume of data. They need an IS that will analyze the data & present it in elegant manner so they can have quick & effective decisions.

- The system that delivers high level information in a friendly way is called EIS.

Other categories

Expert systems

Expert Systems are knowledge-based systems that provides expert advice and act as expert consultants to the users

Expert systems are computer programs that capture the knowledge of a human expert and use it to solve complex problems.

Knowledge management system

Used for managing knowledge in organization, supporting creation, capture, storage and dissemination of information

End user computing systems

End user computing systems support the direct, hands on use of computers by end users for operational and managerial applications

Business information systems

Business information systems support the operational and managerial applications of the basic business functions of a firm

Strategic information systems

Strategic information systems provide a firm which strategic products, services, and capabilities for competitive advantage

Components of an Information system

There are 5 types namely

1. People resources2. Hardware resources 3. Software resources4. Data resources5. Network resources

(i) People Resources:

People are required for the operation of all information systems. These people resources include end users and are specialists.

•End Users (also called users or clients) are people who use an information system or the information it produces. Most of us are information system end users. And most end users in business are knowledge workers, that is, people who spend most of their time communicating and collaborating in teams of workgroups and creating, using, and distributing information.

•IS Specialists are people who develop and operate information systems. They include system analysts, software developers, system operators, and other managerial, technical, and clerical IS personnel.

(ii) Hardware Resources:

Hardware resources include all physical devices and materials used in information processing.

•Machines- Physical devices (computers, peripherals, telecommunications networks, etc.)

•Media- All tangible objects on which data are recorded (paper, magnetic disks etc.)

Examples of hardware in computer-based information systems are:

•Computer Systems – Which consist of central processing units containing microprocessors, and a variety of interconnected peripheral devices.

•Computer peripherals – Which are devices such as a keyboard or electronic mouse

For input of data and commands, a video screen or printer for output of information, and magnetic or optical disks for storage of data resources.

(iii) Software Resources:

Software resources include all sets of information processing instructions.

•Program - a set of instructions that causes a computer to perform a particular task.

•Procedures - set of instructions used by people to complete a task.

Examples of software resources are:

•System software – such as an operating system program, that controls and supports the operations of a computer system.

•Application software – are programs that direct processing for a particular use of computers by end users.

•Procedures – are operating instructions for the people who will use an information

system.

(iv) Data Resources:

Data constitutes a valuable organizational resource. Thus, data resources must be managed effectively to benefit all end users in an organization. The data resources of information systems are typically organized into:

•Databases - a collection of logically related records or files. A database consolidates many records previously stored in separate files so that a common pool of data records serves many applications.

•Knowledge Bases - which hold knowledge in a variety of forms such as facts and rules of inference about various subjects.

Data versus Information.

The word data is the plural of datum, though data is commonly used to represent both singular and plural forms. The term’s data and information are often used interchangeably. However, you should make the following distinction:

Data: - are raw facts or observations, typically about physical phenomena or business transactions. More specifically, data are objective measurements of the attributes (characteristics) of entities, such as people, places, things, and events.

Information: - is processed data, which has been placed in a meaningful and useful context for an end user. Data is subjected to a “value-added” process (data processing or information processing) where:

•Its form is aggregated, manipulated, and organized.•Its content is analyzed and evaluated•It is placed in a proper context for a human user

(v) Network Resources:

Telecommunications networks like the Internet, intranets, and extranets have become essential to the successful electronic business and commerce operations of all types of organizations and their computer-based information systems. Telecommunications networks consist of computers, communications processors, and other devices interconnected by communications media and controlled by communications software. The concept of network resources emphasizes that communications networks are a fundamental resource component of all information systems.

Network resources include:

•Communications media (twisted-pair wire, coaxial cable, fiber-optic cable, and microwave, cellular, and satellite wireless systems.

•Network support (people, hardware, software, and data resources that directly support the operation and use of a communications network).

Operation elements of an MIS:-

1) Physical Components

HardwareSoftwareData baseProceduresPersonnel

2) Processing Functions

Processing Transactions Maintain Master FileProduce reports Produce InquiriesSupport Applications

3) Outputs for users:-

Transactions documents Preplanned reports (Sales Analysis)Preplanned Inquiries (pay rate)Adhoc ReportsUser machine dialogue results

MIS as a subsystem

Organizational function subsystemManagerial activities subsystem

Organizational Functions

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Data BaseDBMS

Activities subsystem

Following functions carried out by the activities

Strategic planning - Formulation of objectivesManagement control -Resource allocationOperational control - Scheduling activitiesTransactions - Processing of orderMIS as a pyramid (Robert)

Higher Unstructured

Lower Structured

Action & Monitoring Decision support

Mar

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Operatioal control

Trasactions

Management control

Strategic planning

Strategic planning

Management control

Operational control

TPS

Information concepts

Information

“Information is data that has been processed into a form that is meaningful to the recipient and is of real or perceived value in current or progressive decision”

Data Processing:-

Conversion of facts into meaningful information.

• The Four Stages of Data Processing

– Input: Data is collected and entered into computer.

– Data processing: Data is manipulated into information using mathematical, statistical, and other tools.

– Output: Information is displayed or presented.

– Storage: Data and information are maintained for later use.

Management of Information

Control problems faced by larger & smaller organizations New IT provide organizational with tools This can be effective, only if management has basic skills

(designing implementing, controlling Info system)

Data representation

Represent data in the form of binary digits called bits

Bit ---------- 0 & 18Bits -------- 1 Byte

8 bits represents a character (eg) A-01000001A character is called as byte.

Characteristics of Information:-

1) Quality:-

The parameters of a good quality are difficult to determine for information. Quality of information refers to its fitness for use, or its reliability. It can be evaluated in terms of four utilities.

In terms of Utilities:-

Form Place Time Possession(Form matches) (Easily accessible) (Available) (Proccessor controlling its value)

2) Timeliness:- Available when it is needed Current information in changing environment

Timeliness means that information must reach the recipients within the prescribed timeframes. For effective decision-making, information must reach the decision-maker at the right time, i.e. recipients must get information when they need it. Delay destroys the value of information. The characteristic of timeliness, to be effective, should also include up-to-date, i.e. current information.

3) Completeness:-

Completeness of information is the extent to which it is all here

Information that is complete means, information that covers key issues and is difficult to support the decision making at hand without critical omissions.

Care must be taken not to provide extra information than needed.

The information which is given to a manager must be complete and should meet all his needs. Incomplete information may result in wrong decisions and thus may prove costly to the organization.

4) Relevance:- Information is said to be relevant if it answers especially for the recipient what, why, where, when, who and why? In other words, the MIS should serve reports to managers which are useful and the information helps them to make decisions. 5) Accuracy

Information should be accurate. It means that information should be free from mistakes, errors &, clear Accuracy also means that the information is free from bias. Wrong information given to management would result in wrong decisions. As managers decisions are based on the information supplied in MIS reports, all managers need accurate information.

6) Adequacy:

Adequacy means information must be sufficient in quantity, i.e. MIS must provide reports containing information which is required in the deciding processes of decision-making. The report should not give inadequate or for that matter, more than adequate information, which may create a difficult situation for the decision-maker. Whereas inadequacy of information leads to crises, information overload results in chaos.

7) Verifiable, Flexible, accessible are some of the other characteristics

Different types of Information

The information can be classified in a number of ways provide to better understanding. Jhon Dearden of Harvard University classifies information in the following manner:

(1) Action Verses No-Action Information:

The information which induces action is called action Information. ‘No stock’ report calling a purchase action is an action information.

The information which communicates only the status is No-Action Information. The stock balance is no-action information.

(2) Recurring Verses No-Recurring Information:

The information generated at regular intervals is Recurring Information. The monthly sales reports, the stock statement, the trial balance, etc are recurring information. The financial analysis or the report on the market research study is no recurring information.

(3) Internal and external information:

The information generated through the internal sources of the organization is termed as Internal Information, while the information generated through the govt. reports, the industry survey etc., termed as External Information, as the sources of the data are outside the organization.

The information can also be classified, in terms of its application:

a. Planning Information:

Certain standard norms and specifications are used in planning of any activity. Hence such information is called the Planning Information. e. g. Time standard, design standard.

b. Control Information:

Reporting the status of an activity through a feedback mechanism is called the Controlling Information. When such information shows a deviation from the goal or the objective, it will induce a decision or an action leading to control.

c. Knowledge Information:

A collection of information through the library records and the research studies to build up a knowledge base as information is known as Knowledge Information.

d. Organization Information:

When the information is used by everybody in the organization, it is called Organization Information. Employee and payroll Information is used by a number of people in an organization.

e.Functional/ Operational Information:

When the information is used in the operation of a business it is called functional/Operational Information.

f. Database Information:

When the information has multiple use and application, it is called as database information. Material specification or supplier information is stored for multiple users.

Other categories of Information system classification

1) Personal information system:-

Components:-It has 3 Components

1) Programs2) Data key roles are played by user, user

operator & developer3) Procedure

2) Work group info system:-

Components:-

a. PC’S (LAN)b. Procedures c. Interconnected Hardwared. Hardware

3) Organizational info system:-

All 5 components are used

Business model

A business model describes the rationale of how an organisation creates, delivers, and captures value - economic, social, or other forms of value. The term business model is thus used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, offerings, strategies, infrastructure, organisational structures, trading practices, and operational processes and policies.

Users of information within the organization:- Finance Personnel Sales Market Research Production Purchase etc

Users of information outside the organization:-

Government Auditor Shareholders Customers

Sources of information:-It has 2 sources

1)Internal:- 2)External:-File recorder Trade PublicationsLetters Government StatisticsReportsDocuments etc

Strategic information system:-

Support strategic objectives of an organization. That gives strategic advantage over it competitors.

Business as a system:-Following components are used

Input Processing Output Feedback Control Environment

Reasons for MIS failure

Inadequate analysis -problems, needs and constraints aren’t understood in the early stages.

Lack of management involved in the design -wrong expectations of a new system / no-one understands the system.

Emphasis on the computer system – Need procedures for handling input and output / select the right hardware and software

Lack of management knowledge of ICT systems and capabilities – managers know what they want from the system but don’t understand the technology. (Information and communications technology)

Lack of teamwork – An ICT manager must co-ordinate the accounts, marketing, sales etc. departments and help everyone understand the benefits of the system

Lack of professional standards – All systems need clear documentation that all users can understand (not just the ICT literate)

Adequate attention is not given to the quality control aspects of the inputs, the process and the outputs leading to insufficient checks and controls in the MIS.

Lack of administrative discipline in following the standardized systems and procedures, wrong coding and deviating from the system specifications result in incomplete and incorrect information

Lack of training and appreciation that the users of the information and the generators of the data are different, and they have to play an important responsible role in the MIS.

Roles and Responsibilities of a System Analyst

System analyst is the person who is responsible for the analysis of the system. He is the person who is responsible to deal with the customers and gather his requirements.

In some companies, this person might be called a Business Analyst, Business Systems Analyst, Systems Analyst or a Requirements Analyst.

The pure definition of a Systems Analyst is a programmer or consultant who designs and manages the development of business applications.

Typically, systems analysts are more involved in design issues than in day-to-day coding. However, systems analyst is a somewhat arbitrary title, so different companies define the role differently.

Typical Position Description:

Gather and analyze organizational data for developing information systems.

Study existing business procedures and computer programsto determine how both could be better organized and structured for the betterment of the organization.

Study technological and business trends to be able to recommend changes to technology and business process to take advantage of advances in both.

Design and guide the implementation of business computed-based information systems.

Prepare and present reports to management as needed.

Typical Duties

1. Analyze existing business operations and existing information systems (computerized or not).2. Study trends in technology.3. Study trends in business and be aware of competitors' exploitation of technology.4. Propose alternative solutions to business problems and select preferred solution. Justify selection.5. Recommend technology products (hardware and software) for purchase.6. Design new systems including process flow, user interface, reports, and security procedures.7. Prepare training material for users of new system.8. Supervise implementation of new system.

Most Desired Skills and Qualities

1. Excellent communication abilities (oral and written).2. Problem solving.3. Understanding of the potential of computer technology.4. Appreciation for the business's objectives.5. Ability to guide people through periods of change.6. Patience.7. Creativity.

Role of System Analyst differs from organization to organization. Most common responsibilities of System Analyst are following:

Steps involved in Analysis and MIS Design

(MIS planning and Design)

Generally there are nine steps to follow in MIS design. They are as follows:

1. Requirements Determinations

2. Requirements Specifications

3. Feasibility Analysis

4. Final Specifications

5. Hardware Study

6. System Design

7. System Implementation

8. System Evaluation

9. System Modification

Step 1: Requirements Determination

Arrived at by a consensus among managers

Priorities among applications determined

Pick high priority applications.

Step 2: Requirements Specification

Known as System Requirements Specification (SRS)

System analysisSystem analysis and designSystem analysis design and programming

Understand the existing System

Applications where a system is required are listed

Arrive at the specifications of the users’ Requirements after discussions with the user

A system may encompass several applications

Step 3: Feasibility Analysis

Formulate Goals of the system and quantify goals

Find alternative methods of meeting the goals

For each alternative assess resources needed

- Human Resources

- Time and Money

- Equipment needed

Assess cost of each alternative

Find the best alternative method subject to resource constraints

Step 4: Final Specifications

Specifications would state what the system would achieve.

Specifications drawn up are improved for implementation.

SRS written- given to user and agreement reached

Step 5: Hardware Study

Determine Hardware and Software required to execute the application.

Determine Response time,Volume of data to be processed, Frequency of reports etc & then pick the hardware.

Step 6: System Design

Logical Design of the System

Objects Identified

Database Designed

Program Specification drawn up

Implementation Plan Drawn up

Test Plan

Step 7 : System Implementation

Write Programs, Create Database,

Document System,Train Users,

Trial run of the system, Test and Accept

Step 8: System evaluation

Find out from Users whether the System meets specified requirements.

List areas of dissatisfaction and find reasons

Suggest if there has to be any improvements to the system

Step 9 : System Modification

Fix errors

Add/Delete features as required by users

Tune the System

Continuously monitor system and assess performance