2 Evolution of Concepts

Dr. Sudhanshu Joshi

Learning Objectives

The Learning objectives of the module are to explore relationship between corporate culture and Strategies, to address the following questions:

What is the definition and Scope of Management Information System?
How do MIS affect the Strategic decisions of the firm?
Why is technology important?

Introduction

Management Information System (MIS) refers to a computer based system that provides managers with the tools for organizing, evaluating and efficiently running their departments.MIS simply means right information, to the right people, at the right place and right time, in the right form, at the right cost.A management information system (MIS) is a computerized database of information organized and programmed in such a way that it produces regular reports on operations for every level of management in a company. It is usually also possible to obtain special reports from the system easily. The main purpose of the MIS is to give managers feedback about their own performance; top management can monitor the company as a whole. Information displayed by the MIS typically shows “actual” data over against “planned” results and results from a year before; thus it measures progress against goals

1.1. Components of Management Information System:

The three sub-components of MIS are Management, Information and System.

System: It emphasizing a fair degree of integration and a holistic view.

Information: It emphasized on processed data in the context in which it is used by end users.

Management: It focus on the ultimate use of such information systems for managerial decision making.

Why MIS: It’s Role

2.1 Functional Uses of MIS:

The functional uses of MIS are as under:

It enhances quality of our operations and quality of our services.

We achieve efficiency, transparency and speedy decision making.

2.2 Strategic Uses of MIS:

The strategic uses of MIS are as under:

Precise development of strategies, planning, forecasting and monitoring.

We can use it not only a problem solving technique but also a decision making tool.

Different Types of Information Systems:

3.1 Transaction Processing System: The first business application of computers (in the mid- 1950s) performed repetitive, high-volume, transaction-computing tasks. The computers summarizing and organizing transactions and data in the accounting, finance, and human resources areas. Such systems are generally called transaction processing systems (TPSs).

3.2 Management Information Systems (MISs): These systems access, organize, summarize and display information for supporting routine decision making in the functional areas.

3.3 Office Automation Systems(OASs): Such as word processing systems were developed to support office and clerical workers.

3.4 Decision Support Systems: It was developed to provide computer based support for complex, nonroutine decision.

3.5 Intelligent Support System (ISSs): Include expert systems which provide the stored knowledge of experts to nonexperts, and a new type of intelligent system with machine- learning capabilities that can learn from historical cases.

3.6 Knowledge Management Systems: Support the creating, gathering, organizing, integrating and disseminating of organizational knowledge.

3.7 Mobile Computing: Information systems that support employees who are working with customers or business partners outside the physical boundaries of their company; can be done over wire or wireless networks.

Management Support Systems: It includes following:

3.8.1. Decision Support System:

It is a computer-based information system that combines data in an attempt to solve semi-structured and some unstructured problems with extensive user involvement. Following techniques are used in decision support system:

(i) What if analysis: The study of the impact of a change in the assumptions (input data) on the proposed solution.

(ii) Goal-seeking analysis: Study that attempts to find the value of the inputs necessary to achieve a desired level of output.

3.8.2. Group Decision Support Systems:

It is an interactive computer-based system that supports the process of finding solutions by a group of decision makers.

Typical MIS System

Classification through functional disciplines

Organisational Systems & MIS 5.1 Classification of Management

Management can be divided into three parts namely top management, middle management and operational management. The above described strategic decisions are taken by the top management, tactical decisions are taken by the middle management and operational decisions are taken by the operational management.

There is a direct link between organisational system and MIS. It involves right information in right time at right level. The operational level mainly focuses on accuracy and timeliness of information collection and dissemination. On the other hand, tactical and strategic level mainly emphasize on relevance of information. In other words, we can say that efficiency is focused at operational level whereas effectiveness is focused at tactical and strategic level.

5.2 The Technology Component:

Information Technology (IT) has changed the way organisations function and carry out their activites. Computers have fundamentally changed MIS from an abstract concept to concrete system that provide efficiency and transparency in the organisation.The technology component involves computer hardware, computer software and data communication.

Computer Hardware: Computer hardware is the collection of physical parts of a computer system. This includes the computer case, monitor, keyboard, and mouse. It also includes all the parts inside the computer case, such as the hard disk drive, motherboard, video card, and many others. Computer hardware is what you can physically touch.

Computer Software: Computer software (often called just software) is a set of instructions and associated documentation that tells a computer what to do or how to perform a task or it can mean all the software on a computer, including the applications and the operating system.

Data Communication: Data communication consists of data processing and transitions. Transaction is a fundamental organisational function. It also involves data transmission. Transmission of data means transferring data via media, networks and various paths. Data transmission simply means delivering the right message to the right receiver.

5.3 Database Technology

At the heart of the information systems of an organisation is the central repository of organisation data.

Databases:

Data: It simply means raw facts.

Database: It is a shared collection of logically related data.

Database Management System (DBMS)

Database Management System is a large software package designed to store and manage databases. A database management system (DBMS) is system software for creating and managing databases. The DBMS provides users and programmers with a systematic way to create, retrieve, update and manage data.

6.1 Need of DBMS

Database Management System played a vital role in any kind of business due to following reasons:

There is an information explosion in today’s society. So we need to keep accurate records.

With the help of DBMS we can maintain our data properly, easily access to the data, and maintaining security of the data.

DBMS involves following:

Hardware

Software

Data

Users

Procedures

Hardware: It simply means actual computer system used for keeping and accessing the database. Large organization usually has a network with a central server and many client programs running on desktops. Smaller organizations may have the DBMS and its clients reside in a singly computer.

Software: The actual DBMS software allows the users to communicate with the database. Examples of DBMS software are Microsoft SQL Server; Oracle Corporation Personal Oracle; IBM DB2 etc.

Data: The database should contain all the data needed by the organization. The main emphasis is on the relevant data pertaining to one or more objects or entities. Entity simply means a thing of significance about which information needs to be known.

Users: There are different type of users. Each type of user needs different software capabilities. The different type of users are as under:

(i) Database Administrator (DBA): The Database Administrator (DBA) is the person or group in charge of implementing the database system within the organization.

(ii) End Users: The end users are the people who sit at workstations and interact directly with the system.

(iii) Application Programmers: The application programmers interact with the database by accessing the data from programs written in high-level languages such as Visual Basic etc.

Data Models:

Models generally allow people to conceptualize an abstract idea more easily. A data model is a way of explaining the logical layout of the data and the relationship of various parts to each other and the whole.

It involves following:

Relational Database Model, Object Oriented Database Management System and Object Relational Database Management System.

7.1 Relational Database Model:

A relational database management system (RDBMS) is a database management system (DBMS) that is based on the relational model as invented by E.F. Codd, of IBM’s San Jose Research Laboratory.

Relational database management system is a system where all data are kept in tables or relations. It is more flexible and easy to use. In the relational database model any kind of data can be easily and quickly accessed. It is a less time consuming model.

The main limitation of relational database management system is that it can’t handle large and complex database.

7.2 Object Oriented Database Management System:

Object oriented database management system evolve to short out the limitation of the relational database management system.

This system is able to handle large and complex data that relational databases could not.

An object database (also object-oriented database management system, OODBMS) is a database management system in which information is represented in the form of objects as used in object oriented programming.

Object databases are different from relational databases which are table-oriented. Object databases have been considered since the early 1980s.

7.3 Object Relational DBMS (ORDBMS):

Object Relational Database Management System (ORDBMS) is a combination of object oriented database management system (OODBMS) and relational database management system (RDBMS). In other words, object-relational databases are a hybrid of OODBMS and RDBMS.

It is mainly used to handle new types of data such as audio, video, and image files that relational databases were not equipped to handle.

It allows organizations to continue using their existing systems, without having to make major changes. It allows users and programmers to start using object-oriented systems in parallel.

Hyper Text Markup Language (HTML):

HTML is a collection of styles (indicated by markup tags) that define the various components of a World Wide Web document. HTML was invented by Tim Berners-Lee. Most web pages on the World Wide Web are created in a standard document format known as HTML. HTML is the standard markup language for creating Web pages.

A Simple HTML Document

<html>

<head>

<title>PageTitle</title>

</head>

<body>

<h1>MyFirstHeading</h1>

<p>Myfirstparagraph.</p>

</body>

</html>

Example Explained:

In the above example,

The <html> element is the root element of an HTML page.

The <head> element contains meta information about the document The <title> element specifies a title for the document.

The <body> element contains the visible page content The <h1> element defines a large heading.

The <p> element defines a paragraph

HTML Tags

HTML tags are element names surrounded by angle brackets:

<tagname>content goes here…</tagname>

HTML tags normally come in pairs like <p> and </p>

The first tag in a pair is the start tag, the second tag is the end tag

The end tag is written like the start tag, but with a forward slash inserted before the tag name

The start tag is also called the opening tag, and the end tag the closing tag.

HTML Page Structure

Below is a visualization of an HTML page structure:

<html>

<head>

<title>Page title</title>

</head>

<body>

<h1>This is a heading</h1>

<p>This is a paragraph.</p>

<p>This is another paragraph.</p>

</body>

</html>

Note: Only the content inside the <body> section (the white area above) is displayed in a browser.

HTML Versions

Since the early days of the web, there have been many versions of HTML:

SQL (Structured Query Language)

SQL is a standard language for accessing and manipulating databases.

What is SQL?

SQL stands for Structured Query Language

SQL lets you access and manipulate databases

SQL is an ANSI (American National Standards Institute) standard

What Can SQL do?

SQL can execute queries against a database SQL can retrieve data from a database

SQL can insert records in a database SQL can update records in a database

SQL can delete records from a database SQL can create new databases

SQL can create new tables in a database

SQL can create stored procedures in a database SQL can create views in a database

SQL can set permissions on tables, procedures, and views

9.1 History of SQL:

SQL was initially developed at IBM by Donald D. Chamberlin and Raymond F. Boyce in the early 1970s. This version, initially called SEQUEL (Structured English Query Language), was designed to manipulate and retrieve data stored in IBM’s original quasi-relational database management system, System R, which a group at IBM San Jose Research laboratory had developed during the 1970s. The acronym SEQUEL was later changed to SQL because “SEQUEL” was a trademark of the UK-based Hawker Siddeley aircraft company.

In the late 1970s, Relational Software, Inc. (now Oracle Corporation) saw the potential of the concepts described by Codd, Chamberlin, and Boyce, and developed their own SQL-based RDBMS with aspirations of selling it to the U.S. Navy, Central Intelligence Agency, , and other U.S. government agencies. In June 1979, Relational Software, Inc. introduced the first commercially available implementation of SQL, Oracle V2 (Version2) for Vax computers.

After testing SQL at customer test sites to determine the usefulness and practicality of the system, IBM began developing commercial products based on their System R prototype including System/38, SQL/DS, and DB2 which were commercially available in 1979, 1981, and 1983, respectively.

10. MIS Development Process:

The management information system needs good planning.
This system should deal with the management information not with data processing alone.
It should provide support for the management planning, decision-making and action.
It should provide support to the changing needs of business management.

10. MIS Development Process:

In MIS, the information is recognized as a major resource like capital and time. If this resource has to be managed well, it calls upon the management to plan for it and control it, so that the information becomes a vital resource for the system.The management information system needs good planning.This system should deal with the management information not with data processing alone.It should provide support for the management planning, decision-making and action.It should provide support to the changing needs of business management.

Major challenges in MIS implementation are:

Quantity, content and context of information – how much information and exactly what should it describe.Nature of analysis and presentation – comprehensibility of information.

Availability of information – frequency, contemporariness, on-demand or routine, periodic or occasional, one-time info or repetitive in nature and so on Accuracy of information. Reliability of information.Security and Authentication of the system.

Planning for MIS

MIS design and development process has to address the following issues successfully:

There should be effective communication between the developers and users of the system.

There should be synchronization in understanding of management, processes and IT among the users as well as the developers.

Understanding of the information needs of managers from different functional areas and combining these needs into a single integrated system.

Creating a unified MIS covering the entire organization will lead to a more economical, faster and more integrated system, however it will increase in design complexity manifold.

The MIS has to be interacting with the complex environment comprising all other sub-systems in the overall information system of the organization. So, it is extremely necessary to understand and define the requirements of MIS in the context of the organization.

It should keep pace with changes in environment, changing demands of the customers and growing competition.

It should utilize fast developing in IT capabilities in the best possible ways.

Cost and time of installing such advanced IT-based systems is high, so there should not be a need for frequent and major modifications.

It should take care of not only the users i.e., the managers but also other stakeholders like employees, customers and suppliers.

Once the organizational planning stage is over, the designer of the system should take the following strategic decisions for the achievement of MIS goals and objectives:

Development Strategy: Example – an online, real-time batch.

System Development Strategy: Designer selects an approach to system development like operational verses functional, accounting verses analysis.

Resources for the Development: Designer has to select resources. Resources can be in-house verses external, customized or use of package.

Manpower Composition: The staffs should have analysts, and programmers.

Information system planning essentially involves:

Identification of the stage of information system in the organization. Identification of the application of organizational IS.

Evolution of each of this application based on the established evolution criteria.

Establishing a priority ranking for these applications.

Determining the optimum architecture of IS for serving the top priority applications.

Information System Requirements

The following diagram illustrates a brief sketch of the process of information requirement analysis:

The following three methodologies can be adopted to determine the requirements in developing a management information system for any organization:

Business Systems Planning (BSP) – this methodology is developed by IBM.

It identifies the IS priorities of the organization and focuses on the way data is maintained in the system.
It uses data architecture supporting multiple applications.
It defines data classes using different matrices to establish relationships among the organization, its processes and data requirements.

Critical Success Factor (CSF) – this methodology is developed by John Rockart of MIT.

It identifies the key business goals and strategies of each manager as well as that of the business.
Next, it looks for the critical success factors underlying these goals.
Measure of CSF effectiveness becomes an input for defining the information system requirements.

End/Means (E/M) analysis – this methodology is developed by Wetherbe and Davis at the University of Minnesota.

It determines the effectiveness criteria for outputs and efficiency criteria for the processes generating the outputs.
At first it identifies the outputs or services provided by the business processes.
Then it describes the factors that make these outputs effective for the user.
Finally it selects the information needed to evaluate the effectiveness of outputs

Information System Analysis and Design

System analysis and design follows the typical System/Software Design Life Cycle (SDLC) as discussed in the previous chapter. It generally passes through the following phases:

Problem Definition Feasibility Study Systems Analysis System Design

Detailed System Design Implementation

Maintenance

In the analysis phase, the following techniques are commonly used:

Data flow diagrams (DFD) Logic Modeling

Data Modeling

Rapid Application Development (RAD) Object Oriented Analysis (OOA)

Technology for Information Systems

The technology requirement for an information system can be categorized as:

Devices

Data center systems – It is the environment that provides processing, storage, networking, management and the distribution of data within an enterprise.

Enterprise software – These are software system like ERP, SCM, Human Resource Management, etc. that fulfill the needs and objectives of the organizations.

IT services – It refers to the implementation and management of quality IT services by IT service providers through people, process and information technology. It often includes various process improvement frameworks and methodologies like six sigma, TQM, and so on.

Telecom services

System Test Planning and Execution

The system should be fully tested for errors before being fully operational.

The test plan should include for each test:

Purpose Definition test inputs
detailed specification of test procedure details of expected outputs
Each sub-system and all their components should be tested using various test procedures and data to ensure that each component is working as it is intended.
The testing must include the users of the system to identify errors as well as get the feedback.

System Operation

Before the system is in operation, the following issues should be taken care of:

Data security, backup and recovery; Systems control;

Testing of the system to ensure that it works bug-free in all expected business situations;

The hardware and software used should be able to deliver the expected processing;

The system capacity and expected response time should be maintained; The system should be well documented including;

A user guide for inexperienced users,
A user reference or operations manual for advanced users,
A system reference manual describing system structures and architecture.

Once the system is fully operational, it should be maintained throughout its working life to resolve any glitches or difficulties faced in operation and minor modifications might be made to overcome such situations.

Factors for Success and Failure

MIS development projects are high-risk, high-return projects. Following could be stated as critical factors for success and failure in MIS development:

It should cater to a specific, well-perceived business.

The top management should be completely convinced, able and willing to such a system. Ideally there should be a patron or a sponsor for the system in the top management.

All users including managers and other employees should be made an integral part of the development, implementation, and use of the system.

There should be an operational prototype of the system released as soon as possible, to create interest among the users.

There should be good support staff with necessary technical, business, and interpersonal skills.

The system should be simple, easy to understand without adding much complexity. It is a best practice, not to add up an entity unless there is both a use and user for it.

It should be easy to use and navigate with high response time.

The implementation process should follow a definite goal and time.

All the users including the top management should be given proper training, so that they have a good knowledge of the content and function of the system, and can use it fully for various managerial activities such as reporting, budgeting, controlling, planning, monitoring, etc.

It must produce useful outputs to be used by all managers.

The system should be well integrated into the management processes of planning, decision-making, and monitoring.

Summary

Management Information System played a vital role in decision making process of a business. It is very important due to increased business and management complexities. Increased business complexities include technological revolution, research & development and explosion of information. On the other hand, management complexities involve emerging management science technologies, difficult decision making process etc.The functional uses of MIS are -It enhances quality of our operations and quality of our services (ii) We achieve efficiency, transparency and speedy decision making. Strategic uses of MIS – (i) Precise development of strategies, planning, forecasting and monitoring (ii) We can use it not only a problem solving technique but also a decision making tool.

you can view video on Evolution of Concepts

References: