Management Information System Essay
Strategy Support While computers cannot create business strategies by themselves they can assist management in understanding the effects of their strategies, and help enable effective decision-making. 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 coherent reports unmanageable volumes of data that would otherwise be broadly useless to decision makers.
By studying these reports decision-makers can identify patterns and trends that would have remained unseen if the raw data were consulted manually. 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. These Decision Support Systems (ADS) enable more informed decision making within an enterprise than would be possible without MIS systems.
Data Processing 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. Where in the past business information had to be manually processed
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MOB is a management process by which managers and subordinates agree upon a series of objectives for the subordinate to attempt to achieve within a set time frame. Objectives are set using the SMART ratio: that is, objectives should be Specific, Measurable, Agreed, Realistic and Time-specific. The aim of these objectives is to provide a set of key performance indicators by which an enterprise can Judge the performance of an employee or project. The success of any MOB objective depends upon the continuous tracking of progress.
In tracking this performance it can be extremely useful to make use of an MIS system. Since all SMART objectives are by definition measurable they can be tracked through the generation of management reports to be analyses by decision-makers. Benefits of MIS The field of MIS can deliver a great many benefits to enterprises in every industry. Expert organizations such as the Institute of MIS along with peer reviewed Journals such as MIS Quarterly continue to find and report new ways to use MIS to achieve business objectives.
Core Competencies Every market leading enterprise will have at least one core competency – that is, a function they perform better than their competition. By building an exceptional management information system into the enterprise it is possible to push out ahead of the competition. MIS systems provide the tools necessary to gain a better understanding of the market as well as a better understanding of the enterprise itself. Enhance Supply Chain Management Improved reporting of business processes leads inevitably to a more streamlined production process.
With better information on the production process comes the ability to improve the management of the supply chain, including everything from the sourcing of materials to the manufacturing and distribution of the finished product. Quick Reflexes As a corollary to improved supply chain management comes an improved ability to react to changes in the market. Better MIS systems enable an enterprise to react competition and produce a better service and a larger piece of the pie. B. Define System. What are the different types of Systems? Explain with examples.
Definition: Systems is a set of interrelated elements or components that collect (input) manipulate (process) and disseminate (output) data and information and provide a feedback mechanism to meet an objective. Types of Systems: 1 . Transaction Processing Systems (TAPS) 2. Management Reporting Systems (MRS.) 3. Decision Support Systems (ADS) 4. Office Information Systems (OSI) 5. Professional Support Systems (ASS) 6. Executive Information Systems (IIS) As the name implies, Transaction Processing Systems (“TAPS”) are designed to process routine transactions efficiently and accurately.
A business will have several (sometimes many) TAPS; for example: Billing systems to send invoices to customers Systems to calculate the weekly and monthly payroll and tax payments Production and purchasing systems to calculate raw material requirements Stock control systems to process all movements into, within and out of the business A management reporting system (“MRS.”) is mainly concerned with internal sources of information. MRS. usually takes data from the transaction processing systems and summaries it into a series of management reports.
MIS reports tend to be used by middle management and operational supervisors. Sections in situations where there is uncertainty about the possible outcomes of those decisions. ADS comprise tools and techniques to help gather relevant information and analyses the options and alternatives. ADS often involves use of complex spread-sheet and databases to create “what-if” models. 4. Executive Information Systems (IIS) An Executive Information System (“IIS”) is designed to help senior management make strategic decisions. It gathers analyses and summarizes the key internal and external information used in the business.
A good way to think about an IIS is to imagine the senior management team in an aircraft cockpit – with the instrument panel showing them the status of all the key business activities. IIS typically involve lots of data analysis and modeling tools such as “what-if” analysis to help strategic decision-making. 5. Office Information Systems (OSI) Office Automation Systems are systems that try to improve the productivity of employees who need to process data and information. Perhaps the best example is the wide range of software systems that exist to improve the productivity of employees working in an office (e. . Microsoft Office XP) or systems that allow employees to work from home or whilst on the move. . Professional Support Systems (ASS) Professional support systems help in tasks specific to various professions. Professional support systems offer the facilities needed to perform tasks specific to a given profession. For example, automotive engineers use computer-aided engineering (CAE) software together with Mortal reality’ systems to design and test new models for fuel efficiency, handling, and passenger protection before producing prototypes, and later they use CAE in the design and analysis of physical tests.
Biochemists use special three-dimensional modeling software to visualize the electoral structure and probable effect of new drugs before investing in lengthy clinical tests. A. List and explain all types of business information systems. Major types of business information systems include structural databases and information management software that can include the following; 2. E-commerce Systems (SEC) 3. Management Information Systems (MIS) 4. Decision Support Systems (ADS) 5.
Expert Systems (SEES) Definition: A Transaction Processing System (TAPS) is a type of information system that collects, stores, modifies and retrieves the data transactions of an enterprise. A orientation is any event that passes the ACID test in which data is generated or modified before storage in an information system Features of Transaction Processing Systems The success of commercial enterprises depends on the reliable processing of transactions to ensure that customer orders are met on time, and that partners and suppliers are paid and can make payment.
The field of transaction processing, therefore, has become a vital part of effective business management, led by such organizations as the Association for Work Process Improvement and the Transaction Processing Performance Council. Transaction processing systems offer enterprises the means to rapidly process transactions to ensure the smooth flow of data and the progression of processes throughout the enterprise.
Typically, a TAPS will exhibit the following characteristics: Rapid Processing The rapid processing of transactions is vital to the success of any enterprise – now more than ever, in the face of advancing technology and customer demand for immediate action. TAPS systems are designed to process transactions virtually instantly to ensure that customer data is available to the processes that require it. Reliability Similarly, customers will not tolerate mistakes. TAPS systems must be designed to ensure that not only do transactions never slip past the net, but that the systems themselves remain operational permanently.
TAPS systems are therefore designed to incorporate comprehensive safeguards and disaster recovery systems. These measures keep the failure rate well within tolerance levels. Standardization Transactions must be processed in the same way each time to maximize efficiency. To ensure this, TAPS interfaces are designed to acquire identical data for each transaction, regardless of the customer. Controlled Access only those employees who require their use. Restricted access to the system ensures that employees who lack the skills and ability to control it cannot influence the transaction process.
Transactions Processing Qualifiers In order to qualify as a TAPS, transactions made by the system must pass the ACID test. The ACID tests refers to the following four prerequisites: Atomicity Atomicity means that a transaction is either completed in full or not at all. For example, if funds are transferred from one account to another, this only counts as a bone fide transaction if both the withdrawal and deposit take place. If one account is baited and the other is not credited, it does not qualify as a transaction. TAPS systems ensure that transactions take place in their entirety.
Consistency TAPS systems exist within a set of operating rules (or integrity constraints). If an integrity constraint states that all transactions in a database must have a positive value, any transaction with a negative value would be refused. Isolation Transactions must appear to take place in isolation. For example, when a fund transfer is made between two accounts the debiting of one and the crediting of another must appear to take place simultaneously. The funds cannot be credited to n account before they are debited from another.
Durability Once transactions are completed they cannot be undone. To ensure that this is the case even if the TAPS suffers failure, a log will be created to document all completed transactions. These four conditions ensure that TAPS systems carry out their transactions in a methodical, standardized and reliable manner. Types of Transactions While the transaction process must be standardized to maximize efficiency, every enterprise requires a tailored transaction process that aligns with its business strategies and processes. For this reason, there are two broad types of transaction:
Batch Processing Batch processing is a resource-saving transaction type that stores data for processing at pre-defined times. Batch processing is useful for enterprises that need to process large amounts of data using limited resources. Examples of batch processing include credit card transactions, for which the transactions are processed monthly rather than in real time. Credit card transactions need only be processed once a month in order to produce a statement for the customer, so batch processing saves IT resources from having to process each transaction individually.
Real Time Processing In many circumstances the primary factor is speed. For example, when a bank customer withdraws a sum of money from his or her account it is vital that the transaction be processed and the account balance updated as soon as possible, allowing both the bank and customer to keep track of funds. Electronic commerce, commonly known as e-commerce or commerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks.
The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage. The use of commerce is conducted in this way, spurring and drawing on innovations in electronic funds earners, supply chain management, Internet marketing, online transaction processing, electronic data interchange (DE’), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at some point in the transaction’s lifestyle, although it can encompass a wider range of technologies such as e-mail as well.
A large percentage of electronic commerce is conducted entirely electronically for virtual items such as access to premium content on a website, but most electronic commerce involves the remonstration of physical items in some way. Online retailers are sometimes known as e-tellers and online retail is sometimes known as e-tail. Almost all big retailers have electronic commerce presence on the World Wide Web. Electronic commerce that is conducted between businesses is referred to as business-to-business or BIB. B can be open to all interested parties (e. G. Commodity exchange) or limited to specific, pre-qualified participants (private electronic market). Electronic commerce that is conducted between businesses and consumers, on the other hand, is referred to as business-to-consumer or BBC. This is the type of electronic commerce conducted by companies such as Amazon. Com. Online shopping is a form of electronic commerce where the buyer is directly online to the seller’s computer usually via the internet. There is no intermediary service.
The sale and purchase transaction is completed electronically and interactively in real-time such as Amazon. Com for new books. If an intermediary is present, then the sale and purchase transaction is called electronic commerce such as eBay. Com. Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of the business transactions. A management information system (MIS) is a system that provides information needed to manage organizations effectively.
Management information systems are which cover the application of people, documents, technologies, and procedures used by management accountants to solve business problems such as costing a product,service or a business-wide strategy. Management information systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization. Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e. G.
Decision Support Systems, Expert systems, and Executive information systems. Initially in businesses and other organizations, internal reporting was made manually and only periodically, as a by-product of the accounting system and with some additional statistics, and gave limited and delayed information on management performance. Previously, data had to be separated individually by the people as per the requirement and necessity of the organization. Later, data was distinguished from information, and so instead of the collection of mass of data, important and to the point data that is needed by the organization was stored.
Earlier, business computers were mostly used for relatively simple operations such as tracking sales or payroll data, often without much detail. Over time, these applications became more complex and began to store increasing amount of information while also interlinking with previously separate information systems. As more and more data was stored and linked man began to analyze this information onto further detail, creating entire management reports from the raw, stored data.
The term “MIS” arose to describe these kinds of applications, which were developed to provide managers with information about sales, inventories, and other data that would help in managing the enterprise. Today, the term is used broadly in a number of contexts and includes (but is not limited to): decision support systems, resource and people management applications, Enterprise Resource Planning (ERP), Supply Chain Management (SCM), Customer Relationship Management (CRM), project management and database retrieval applications.
An ‘MIS’ is a planned system of the collection, processing, storage and dissemination of data in the form of information needed to carry out the management functions. In a way, it is a documented report of the activities that were planned and executed. According to Philip Kettle “A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. The terms MIS and information system are often confused. Information systems include systems that are not intended for decision making. The area of study called MIS is sometimes referred to, in a restrictive sense, as information technology management. That area of study should not be confused with computer science. IT service management is a practitioner-focused discipline. MIS has also some differences with ERP which incorporates elements that are not necessarily focused on decision support.
Any successful MIS must support a business’s Five Year Plan or its equivalent. It must with feedback loops that allow for titivation of every aspect of the business, including recruitment and training regimens. In effect, MIS must not only indicate how things re going, but why they are not going as well as planned where that is the case. These reports would include performance relative to cost centers and projects that drive profit or loss, and do so in such a way that identifies individual accountability, and in virtual real-time.
Anytime a business is looking at implementing a new business system it is very important to use a system development method such as System Development Life Cycle. The life cycle includes Analysis, Requirements, Design, Development, Testing and Implementation. Decision Support Systems (ADS) are a class of computerized information system that purport decision-making activities. ADS are interactive computer-based systems and subsystems intended to help decision makers use communications technologies, data, documents, knowledge and/or models to complete decision process tasks.
A decision support system may present information graphically and may include an expert system or artificial intelligence (AY). It may be aimed at business executives or some other group of knowledge workers. Typical information that a decision support application might gather and present would be, (a) Accessing all information assets, including legacy and relational data resources; (b) Comparative data figures; (c) Projected figures based on new data or assumptions; (d) Consequences of different decision alternatives, given past experience in a specific context.
There are a number of Decision Support Systems. These can be categorized into five types: a) Communication-driven ADS Most communications-driven Dads are targeted at internal teams, including partners. Its purpose are to help conduct a meeting, or for users to collaborate. The most common technology used to deploy the ADS is a web or client server. Examples: chats and instant messaging software, online collaboration and net-meeting systems.