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Explain the transaction stages from manual system to automated systems? Hardware support for MIS Generally hardware in the form of personal computers and peripherals like printers, fax machines, copier, scanners etc are used in organization to support various MIS activities of the organization. Advantages of a PC : Advantages a personal computer offers are – a) Speed – A PC can process data at a very high speed. It can process millions of instructions within fraction of seconds. b) Storage – A PC can store large quantity of data in a small space. It eliminates the need of storing the conventional office flat files and box files which requires lots of space. The storage system in a PC is such that the information can be transferred from place to another place in electronic form. c) Communication – A PC on the network can offer great support as a communicator in communicating information in the forms of text and images. Today a PC with internet is used as a powerful tool of communication for every business activity. d) Accuracy – A PC is highly reliable in the sense that it could be used to perform calculations continuously for hours with a great degree of accuracy. It is possible to obtain mathematical results correct up to a great degree of accuracy. e) Conferencing – A PC with internet offers facility of video conferencing worldwide. Business people across the globe travel a lot to meet their business partner, colleagues, and customers etc to discuss about business activities. By video conferencing inconvenience of traveling can be avoided. A block diagram of a computer may be represented as
Input unit is used to give input to the processor. Examples of input unit –Keyboard, scanner, mouse, bar code reader etc.
MB0047-Management Information System A processor refers to unit which processes the input received the way it has been instructed. In a computer the processor is the CPU – Central Processing Unit. It does all mathematical calculations, logical tasks, storing details in the memory etc. Output unit is used to give output s from the computer. Examples of output unit – Monitor, printer, speakers etc.
Organization of Business in an E enterprise – Software Applications in MIS Internet technology is creating a universal bench or platform for buying and selling of goods, commodities and services. Essentially Internet and networks enable integration of information, facilitate communication, and provide access to everybody from anywhere. And software solutions make them faster and self-reliant as they can analyze data information, interpret and use rules and guidelines for decision-making. These enabling capabilities of technology have given rise to four business models that together work in an E enterprise organization. They are: • E business • E communication • E commerce • E collaboration These models work successfully because Internet technology provides the infrastructure for running the entire business process of any length. It also provides email and other communication capabilities to plan, track, monitor and control the business operations through the workers located anywhere. It is capable of linking to disparate systems such as logistics, data acquisition and radio frequency used systems and so on. Low cost connectivity physical, virtual and universal standards of Internet technology make it a driving force to change conventional business model to E business enterprise model. Internet has enabled organizations to change their business process and practices. It has dramatically reduced cost of data and information processing, its sending and storing. Information and information products are available in electronic media, and is a resident on the network. Once everyone is connected electronically, information can flow seamlessly from any location to any other location. For example, product information is available on an organization website which also has a feature of order placement. An order placed is processed at the backend and status of acceptance, rejection is communicated instantaneously to the customer. Such order is then placed directly on the order board for scheduling and execution. These basic capabilities of Internet have given rise to number of business models. Some of them are given in Table
These technologies help to save time. resource and enable faster decision making. collaboration.MB0047-Management Information System The Internet and networks provide platform and various capabilities whereby communication. and conversion has become significantly faster. products or services is made up of the following components. • Enquiry processing • Order preparation • Order placement • Order confirmation • Order planning • Order scheduling • Order manufacturing • Order status monitoring • Order dispatching -3- . transparent and cheaper. The business process of serving the customer to offer goods. The technology adds speed and intelligence in the business process improving quality of service to the customer.
Training. competitive advantage. Transformation stage manual systems to automated systems The manual system which was prevalent in the organizations before industrial revolution was slowly transformed into digital form by means of computer and related electronic instruments.MB0047-Management Information System • Order billing • Order receivable accounting • Order payment processing The entire process in parts or full can be handled through these technologies and software solutions. Auctioning • Manufacturing. the technology is flexible and capable of handling any business models such as: • Retailing. It provides important strategic. Learning. We go into details of each one of them. improved customer loyalty and retention and better quality offer to the customer. A transformation had to necessarily go through the following stages a) Appraisal of the procedures b) Types of documents c) Storage systems d) Formulations and coding e) Verification and validation f) Review g) Documentation -4- . Further. Consulting The resultant effect is the reduction in cost of business operations. Trading. Four major applications mentioned earlier make this achievement possible. Distribution & Selling • Outsourcing. Subcontracting • Servicing.
User resistance is a major behavioral factor associated with the adoption of new systems. The following are compiled by Jiang et al. policies. Change in job content 2. how can performance of individual corporations be determined? Ans: Management organizations: An organization is a structure that uses the resources from the environment like manpower. raw materials. Job security The major behavioral factors are a) Decision styles symbolic processing of AI is heuristic; DSS and ANN are analytic b) Need for explanation – ES provides explanation. Uncertainty or unfamiliarity or misinformation 7. Explain the various behavioral factors of management organization? As per Porter. (2000) ; Reasons that employees resist new systems: 1. responsibilities and procedures that are adopted by the organization. Over expectation was observed in most early intelligent systems. -5- . DSS may provide partial explanation. Loss of status 3. It constitutes the rules. Change in decision making approach 6.MB0047-Management Information System 2. Explanation can reduce resistance to change c) Organizational climate some organizations lead and support innovations and new technologies whereas other wait and lag behind in making changes d) Organizational expectations – over expectation can result in disappointments and termination of innovation. Behavioral factors The implementation of computer based information systems in general and MSS in particular is affected by the way people perceive these systems and by how they behave in accepting them. Change in interpersonal relationships 4. Loss of power 5. ANN does not. capital and returns the output like products and services to the environment.
it is found that a majority is concerned with competition between corporations. Strategic information systems theory is concerned with the use of information technology to support or sharpen an enterprise's competitive strategy. Performance of individual corporations: Out of many possible interpretations of a strategy an organization adopts in business. and defending them against imitation by other firms. Porter's classic diagram representing these forces is indicated below. Competition means cultivating unique strengths and capabilities. market. Another alternative sees competition as a process linked to innovation in product. its adversaries. -6- . The performance of individual corporations is determined by the extent to which they manage the following (as given by Porter) – a) The bargaining power of suppliers; b) The bargaining power of buyer; c) The threat of new entrants; d) The threat of substitute products; And e) Rivalry among existing firms. or technology. Competitive strategy is an enterprise's plan for achieving sustainable competitive advantage over. or reducing the edge of.MB0047-Management Information System e) Resistance to change – can be strong in MSS because the impacts may be significant.
the geographic areas in which it sells. Under Porter's framework. i. the range of product varieties it offers. They are: -7- .MB0047-Management Information System There are two basic factors which may be considered to be adopted by organization in their strategies: a) low cost b) Product differentiation Enterprise can succeed relative to their competitors if they possess sustainable competitive advantage in either of these two. the distribution channels it employs.e. or the breadth of the enterprise's target markets within its industry. enterprises have four generic strategies available to them whereby they can attain above average performance. the types of buyers it serves. and the array of related industries in which it competes. Another important consideration in positioning is 'competitive scope'.
MB0047-Management Information System a) Cost leadership; b) Differentiation; c) Cost focus; And d) Focused differentiation. packaging. services. Product (quality. options. personal selling. publicity). returns) ; 2. brand name. scientists in the laboratory designing products or processes. credit terms) ; 3. As per Borden 1964. coverage. sales promotion. allowances. service technicians performing repairs. quoted in Wiseman 1988many differentiation bases can be classified as 4 P’s as given below: 1. Place (channels. warranties. sizes. features. but perform activities more efficiently than its competitors (lower cost). locations. style. competitive advantage grows out of the way an enterprise organizes and performs discrete activities. enterprises create value for their customers. discounts. -8- . inventory. a firm must either provide comparable value to the customer. Promotion (advertising. To gain competitive advantage over its rivals. and treasurers raising capital. Price (list. The various attributes listed above can be sharpened the firms product by the support of a suitable information technology. Porter's representation of them is indicated below According to Porter. or perform activities in a unique way that creates greater buyer value and commands a premium price (differentiation). The operations of any enterprise can be divided into a series of activities such as salespeople making sales calls. payment period. transport) ; And 4. The ultimate value an enterprise creates is measured by the amount customers are willing to pay for its product or services. A firm is profitable if this value exceeds the collective cost of performing all of the required activities. By performing these activities.
The real problem is the degree of structure. Prototyping is a process of progressively ascertaining the information needs. questioning the information needs. the development of the MIS calls for determining the strategy of development. The development strategy determines where to begin and in what sequence the development can take place with the sole objective of assuring the information support. streamlining the operational systems and procedures and move user interaction. For example. the personal boundaries do not exist. This process. trying it out on a smaller scale with respect to the data and the complexity. The designer first develops systems independently and starts integrating them with other systems. to appreciate that the information is a corporate resource. The designer then takes steps to remove the inadequacies. Bringing the multiple users on the same platform and changing their attitudes toward -9- . greater is the stabilization of the rules. enlarging the system scope and meeting the varying information needs. the plan consists of various systems and subsystems. a lot of input data comes from the purchase department. The choice of the system or the subsystem depends on its position in the total MIS plan. and formalization in the system and procedures which determine the timing and duration of development of the system. When it comes to information the functional. of all personnel. the user's understanding of the systems and the complexity and its interface with other systems. inadequacies in the prototype visàvis Fulfillment of the information needs. Determining the position of the system in the MIS is easy. the development strategy is Prototyping of the System. it is observed that the user's and the designer's interaction is smooth. the designer's task becomes difficult. This may call upon changing the prototype of the system. ensuring that it satisfies the needs of the users. the departmental. therefore. and all have to contribute as per the designated role by the designer to fulfill the corporate information needs. the size of the system. decision making and the understanding of the overall business activity. Compare various types of development aspect of Information System? Explain the various stages of SDLC? Development of Information Systems a) Development and Implementation of the MIS Once the plan of MIS is made. the procedures. Here. and assess the problems of development and implementation. The attitudes of various users and their role as the originators of the data need to be developed with a high degree of positivism. As discussed earlier. which is used in accounts and inventory management. It requires. b) Prototype Approach When the system is complex. and their needs are clearly understood and respected mutually. Higher the degree of structuredness and formalization. The development becomes a method of approach with certainty in input process and outputs. This calls upon each individual to comply with the design needs and provide without fail the necessary data inputs whenever required as per the specification discussed and finalised by the designer. when there are multiple users of the same system and the inputs they use are used by some other users as well. identifies the problem areas. In the prototyping approach. developing methodology.MB0047-Management Information System 3.
therefore. if any. and they are very much structured and rule based. These systems have a fairly long duration of survival and they contribute in a big way as sources of data to the Corporate MIS. and an understanding of the corporate business. as a corporate resource. Examples of such systems are pay roll. They have 100% clarity of inputs and their sources. These details more or less remain static from the day the system emerges and remains in that static mode for a long time. is the managerial task of the system designer. . helps considerably. Therefore. they have birth and death. Such systems. Minor modifications or changes do occur but they are not significant in terms of handling either by the designer or the user of the system.10 - . Their emergence may be sudden or may be a part of the business need. experience. Table below shows the difference between the two approaches helping the designer select an approach. have a life and they can be developed in a systematic manner. in overcoming the problem of changing the attitudes of the multiple users and the originators of the data. and can be reviewed after a year or two. c) Life Cycle Approach There are many systems or subsystems in the MIS which have a life cycle. basic financial accounting. finished goods accounting and dispatching. order processing. The qualification. share accounting. that is. their role is important and needs to be designed from the view point as an interface to the Corporate MIS. and so on. knowledge. a definite set of outputs in terms of the contents and formats. of the state of art. for significant modification.MB0047-Management Information System information.
Not to forget that his role is to offer a service and not to demand terms. In the process of implementation. the work design may make the new job impersonal. The process evokes a behavior response which could be either favorable or unfavorable depending upon the strategy of system implementation. The second fear is about the role played by the person in the organization and how the change affects him. The system designer should not question beyond a limit the information need of the user. therefore. the designer should respect the demands of the user. Remember that the system design is for the use of the user and it is not the designer's prerogative to dictate the design features. The designer should not recommend modifications of the needs. The first and the foremost fear is about the security to the person if the changeover from the old to new is not a smooth one. For a successful implementation he has to handle the human factors carefully. He should try to develop suitable design with appropriate technology to meet the information needs. Not to mix up technical needs with the information needs. It brings about organizational change; it affects people and changes their work style.11 - . The user of the system has a certain fear complex when a certain cultural work change is occurring. On many occasions. the system designer acts as a change agent or a catalyst. In short. . There are certain guidelines for the systems designer for successful implementation of the system. unless technically infeasible. the new role may reduce his importance in the organization. Care has to be taken to assure the user that such fears are baseless and the responsibility. 2. 3. 1. and a fear complex may get reinforced that the career prospects may be affected.MB0047-Management Information System d) Implementation of the Management Information System The implementation of the system is a management process. rests with the designer.
the designer should be prepared to change the system specifications or even the design during the course of development. Realize that through serving the user. Hence. 5. Not to expect perfect understanding and knowledge from the user as he may be the user of a Non computerized system. Ensure that the user makes commitment to all the requirements of the system design specifications. he is his best guide on the complex path of development. so that he is emotionally involved in the process of development. 11. Impress upon the user that you are one of the users in the organization and that the information is a corporate resource and he is expected to contribute to the development of the MIS. 14. is not as easy in the computer system as it calls for changes in the programs at cost. 13. 9. Conduct periodical user meetings on systems where you get the opportunity to know the ongoing difficulties of the users. Impress upon the user the global nature of the system design which is required to meet the current and prospective information need.12 - . Ensure that the overall system effort has the management's acceptance. 16. 16. Train the user in computer appreciation and systems analysis as his perception of the computerized information system will fall short of the designer's expectation. Ensure that the other organization problems are resolved first before the MIS is taken for development. 6. Not to challenge the application of the information in decision making. 12. Impress upon the user that the change. The Lewin's model suggests three steps in this process. Implementation of the MIS in an organization is a process where organizational transformation takes place. This change can occur in a number of ways. Impress upon the user that perfect information is nonexistent; His role therefore still has an importance in the organization. Ensure that he appreciates that his commitments contribute largely to the quality of the information and successful implementation of the system. 8. The first step is unfreezing the organization to make the people more receptive and interested in the change. It is the sole right of the user to use the information the way he thinks proper. 10.MB0047-Management Information System 4. 15. which is easily possible in manual system. Enlist the user's participation from time to time. Impress upon the user that the quality of information depends on the quality of input. 7. The second step is choosing a Course of action where the process begins and reaches the desired level .
The system analyst gives a system development project. This itself can be achieved by improving the human factors. such as a consultant playing the role of a catalyst. System concepts which are important in developing business information systems expedite problem solving and improve the quality of decision making. and eliminating the organizational problems before implementing the system. The resistance can occur due to three reasons. requirements. validation. and providing incentives to the users. viz.. the factors inherent in the design of the system and the factors arising out of the interaction between the system and its users. . SDLC System development cycle stages are sometimes known as system study. The problem of resistance can be handled through education. The system analyst has to do a lot in this connection. and the third step is Refreezing. design. collection and analysis.MB0047-Management Information System of stability. and participation. where the change is consolidated and equilibrium is reinforced. testing and operation. persuasion. It may be represented in the form of a block diagram as shown below: a) Feasibility study It is concerned with determining the cost effectiveness of various alternatives in the designs of the information system and the priorities among the various system components. They are confronted with the challenging task of creating new systems and planning major changes in the organization. This process is implemented through an external change agent. Many a times. meaning and direction. The significant problem in this task is the resistance to change. the factors internal to the users of information. The typical breakdown of an information systems life cycle includes a feasibility study. prototyping.13 - . implementation.
.MB0047-Management Information System b) Requirements. d) Prototyping A prototype is a simplified implementation that is produced in order to verify in practice that the previous phases of the design were well conducted. c) Design It is concerned with the specification of the information systems structure. The database design is the design of the database design and the application design is the design of the application programs. the application areas of the system within the enterprise and the problems that the system should solve. Implementation alternatives are carefully verifies and compared. e) Implementation It is concerned with the programming of the final operational version of the information system. collection and analysis It is concerned with understanding the mission of the information systems.14 - . f) Validation and testing It is the process of assuring that each phase of the development process is of acceptable quality and is an accurate transformation from the previous phase. There are two types of design: database design and application design. that is.
broad in scope and a learning organization. efficiency. competitiveness and profitability. In E business enterprise. reduction in inventory. Internet capabilities have given E business enterprise a cutting edge capability advantage to increase the business value. The effect of these radical changes is the reduction in administrative and management overheads. SCM. faster delivery of goods and services to the customers.15 - . product. wherever necessary. traditional business organization definition has undergone a change where scope of the enterprise now includes other company locations. It has empowered customers and vendors / suppliers through secured access to information to act. In E business enterprise traditional people organization based on 'Command Control' principle is absent. It is no longer functional. use digital technologies and work on databases. and wireless technology for improving the business performance measured in terms of cost. knowledge bases. It is lean in number. E business enterprise is open twenty four hours. . and project or matrix organization of people but E organization where people work in network environment as a team or work group in virtual mode. business partners. . It has opened new channels of business as buying and selling can be done on Internet. flat in structure. All this is possible due to Internet and web moving traditional paper driven organization to information driven Internet enabled E business enterprise. Today most of the business organizations are using Internet technology. network. most of the things are electronic.MB0047-Management Information System 4. application packages. They are supported by information systems. E business enterprise is more process driven; Technology enabled and uses its own information and knowledge to perform. It is replaced by people organization that is empowered by information and knowledge to perform their role. The business processes are conducted through enterprise software like ERP. directories and document repositories. decision support. and being independent. and CRM supported by data warehouse. and decision support systems. faster communication and effective collaborative working. and knowledge management systems. They are using E business. It enables to reach new markets across the world anywhere due to communication capabilities. vendors; customers transact business anytime from anywhere. managers. Compare & Contrast E-enterprise business model with traditional business organization model? Explain how in E-enterprise manager role & responsibilities are changed? Explain how manager is a knowledge worker in E-enterprise? Ans:Managing the E enterprise Due to Internet capabilities and web technology. The cost of business operations has come down significantly due to the elimination of paper driven processes. customers and vendors. It has no geographic boundaries as it can extend its operations where Internet works.
The basis of conventional organization design is command & control which is now collaborates & control. white goods and many such goods are bought and sold on Internet. This Change has affected the organization structure. reporting mechanisms. The paradigm shift to E enterprise Has brought four transformations. The comparison between conventional Organization design and E enterprise is summarized in Table Comparison between Conventional Design and E Organization In E enterprise. and CRM run on Internet (Internet / Extranet) & Wide Area Network (WAN). scope of operations. business is conducted electronically. • Enterprise Resource Management to Enterprise Network Management. automated. The enterprise solutions like ERP. • Industrial manufacturing economy to knowledge based service economy.MB0047-Management Information System Ecommerce Solutions to reach faraway locations to deliver product and services. These transformations have made conventional organization design obsolete. CDs. Buyers and sellers through Internet drive the market and Internet based web systems. and business processes at large. computer. Books. work practices. The new channel of business is well known . The business processes across the organization and outside run on E technology platform using digital technology. Hence today's business firm is also called E enterprise or Digital firm. electronically transacted business process. workflows. • Manual document driven business process to paperless. Buying and selling is possible on Internet. namely: • Domestic business to global business.16 - . SCM.
This is just not a technical change in business operations but a cultural change in the mindset of managers and workers to look beyond the conventional organization. E audit. is a reality and is going to increase in number. E money are the examples of the Ecommerce application. insurance. On the same lines. It is effectively used for strategic planning for survival and growth. To achieve the said benefits of E business organization.17 - . considering multiple locations and multiple information needs arising due to global operations of the business into a comprehensive MIS. Another challenge is to convert domestic process design to work for international process. where integration of multinational information systems using different communication standards. The last but not the least important is the challenge to organize and implement information architecture and information technology platforms. ATM. Internet and networking technology has thrown another challenge to enlarge the scope of Organization where customers and vendors become part of the organization. and laws of security are to be adhered strictly. Automate processes after reengineering the process to cut down process cycle time. & use of Credit cards. Allow people to work from anywhere. Make use of groupware technology on Internet platform for faster response processing. The organization structure should be lean and flat.MB0047-Management Information System as Ecommerce. This technology offers a solution to communicate. E billing. Smart card. and collaborate with customers. coordinate. banking. it is necessary to redesign the organization to realize the benefits of digital firm. vendors and business partners. . increase in profit and productivity and so on. MIS produces more knowledge based products. The role of MIS in E business organization is to deal with changes in global market and enterprises. Knowledge management system is formally recognized as a part of MIS. MIS for E business is different compared to conventional MIS design of an organization. which uses Internet and web technology and uses E business And Ecommerce solutions. It means changing the organization behavior to take competitive advantage of the E business technology. The digital firm. healthcare are being managed through Internet E banking. Get rid of rigid established infrastructure such as branch office or zonal office. country specific accounting practices.
One benefit of this can be to enable the quality of service to be benchmarked with that agreed to across multiple locations or between different business units. there can be no "agreement" between third parties (these agreements are simply a "contract"). operation. In practice. . etc. SLAs have been used since late 1980s by fixed line telecom operators as part of their contracts with their corporate customers. This can be a legally binding formal or informal "contract" (see internal department relationships). This internal benchmarking can also be used to market test and provide a value comparison between an in-house department and an external service provider. may be used by internal groups to support SLA(s). MTTR. The "level of service" can also be specified as "target" and "minimum. Contracts between the service provider and other third parties are often (incorrectly) called SLAs — as the level of service has been set by the (principal) customer. internet service providers will commonly include service level agreements within the terms of their contracts with customers to define the level(s) of service being sold in plain language terms (typically the (SLA) will in this case have a technical definition in terms of MTTF.MB0047-Management Information System 5. however. whilst providing a measurable (average) target value that shows the level of organization performance. various data rates. the term SLA is sometimes used to refer to the contracted delivery time (of the service) or performance. In some contracts. guarantees. What do you understand by service level Agreements (SLAs)? Why are they needed? What is the role of CIO in drafting these? Explain the various security hazards faced by an IS? Ans:A service level agreement (frequently abbreviated as SLA) is a part of a service contract where the level of service is formally defined. The SLA may specify the levels of availability. serviceability. responsibilities. performance.18 - . Each area of service scope should have the "level of service" defined. It is important to note that the "agreement" relates to the services the customer receives." which allows customers to be informed what to expect (the minimum). and Real Estate) in larger organization have adopted the idea of using service-level agreements with their "internal" customers — users in other departments within the same organization. Operating Level Agreements or OLA(s). penalties may be agreed upon in the case of non-compliance of the SLA (but see "internal" customers below). and not how the service provider delivers that service. such as billing.) A service level agreement (SLA) is a negotiated agreement between two parties where one is the customer and the other is the service provider. Internal departments (such as IT. As an example. This practice has spread such that now it is common for a customer to engage a service provider by including a service-level agreement in a wide range of service contracts in practically all industries and markets. The SLA records a common understanding about services. priorities. HR. and warranties. or other attributes of the service.
perhaps in an innovative way. At a minimum.19 - . How many projects should the manager have had? Did he really have the capacity to handle 14 projects? A CIO should explore running their area more like a service operation rather than a cost center. and to encourage their use. the staff needs to understand where the service is being used to be properly remunerated or to demonstrate where the value is. and knowledge to deliver the service required. and I did them well.' But there is no real business measurement there. The information systems management also has the job of helping the end users adapt to the changes caused by information systems. replaced. Other business departments have them. Most IT organizations do not have any idea of the life cycle of an application – how long they want it to last. so that he can effectively measure his internal business performance. and there are other products that can monitor hardware performance. and networks under the CIO's control. through a specification (a service-level specification) and using subordinate "objectives" other than those related to the level of service. they say. One of the major roles of the CIO is to make the organization information systems savvy and increase the technological maturity of the information systems organization. Organizations can also specify the way the service is to be delivered. how this can help them perform better. The underlying SLAs should be some sort of a chargeback system with business units. but CIOs generally do not because IT has always been viewed as a cost center. he needs to do what other executives do and have his own business metrics and performance measurements. If information systems are now providing a service. such as network and server uptime. infrastructure. Finally. by their nature. . The second part of the IT operations equation is computer equipment. "output" based — the result of the service as received by the customer is the subject of the "agreement. There are software’s to help with the people picture. CIOs need to institute life cycle management with their applications and computer equipment. and develop metrics that track the performance of the information systems staff. is to implement service level agreements (SLAs) with business units. Measurements in IT tend to be vague and lacking in context. and when it needs to be refurbished. 'I had 14 projects last year. as well as the equipment comprising the applications. For example. If the CIO wants to be taken seriously. A major part of the CIO's job is to make the users aware of the opportunities arising as a result of technical innovations. they should set up what is expected and what levels of service the equipment will provide. Role of CIO in drafting SLA’S One of the major responsibilities of the CIO is to establish the credibility of the systems organization. It sets the expectation on the technical areas of the CIO's operations.MB0047-Management Information System Service-level agreements are. particularly when it comes to apportioning staff time. The first step. This type of agreement is known as an "input" SLA. This latter type of requirement is becoming obsolete as organizations become more demanding and shift the delivery methodology risk on to the service provider. The systems department should not only focus on providing better service to the various lines of business but also help businesses operate better. and CIOs must have a firm handle on how that equipment is being used. and familiarizing them with computers and information systems applications." The (expert) service provider can demonstrate their value by organizing themselves with ingenuity. capability.
This can be done through – a) Infiltration and industrial espionage b) Tapping data from communication lines c) Unauthorized browsing through lines by online terminals.MB0047-Management Information System or disposed of. Examples are earthquake. iv) Fire hazard: it can happen because of electrical short circuits. There are power cuts and sometimes high voltage serge destroys a sensitive component of the computer. software and hardware errors course the biggest problem. ii) Fraud and unauthorized access: This hazard is due to dishonesty. iii) Power and communication failure: In some locations they are the most frequent hazards than any other else because availability of both of them depends upon the location. it is easy for applications to linger long after they should be gone. floods. and for companies to spend far too much money on maintaining ailing applications. lockout or there may be chances of riots in the area. . etc. cheating or deceit. Security Hazards faced by an Information system: Security of the information system can be broken because of the following reasons: i) Malfunctions: In this type of security hazard. neglect and incompetence. all the components of a system are involved. tornadoes and lightening. vii) General hazards: this category covers many more hazards which are not covered anywhere and difficult to define and come spontaneously. People. Sometimes communication channel are busy or noisy. vi) Natural Disasters: Natural disasters are not controllable. More dangerous are the problems which are created by human beings due to the omission.20 - . They are not frequent hazards but if they happen they destroy the things or ruin them. v) Sabotage and riots: sometimes the employees destroy the computer centre in case of strike. Lacking this knowledge. flammable liquids etc.
The system provides up-to-the-minute information on the food items ordered and breaks out percentages showing sales of each item versus total sales. The information system facilitates decision making. The system also compares the weekly sales totals versus food costs. and then enters it online via one of the six terminals located in the restaurant dining room. hardware. the reasons for the void are keyed in. Questions to be analysed: 1. managerial control and operational control? What information would you require to make such decisions? 2. When the kitchen runs out of a food item. In addition. Management information is an important input for efficient performance of various managerial functions at different organization levels. Explain the probable effects that making the system more formal would have on the customers and the management. Case Summary: A waiter takes an order at a table. database. Acceptance of the system by the users is exceptionally high since the waiters and waitresses were involved in the selection and design process. allowing planning for tighter cost controls. especially if the voids consistently related to food or service. the cooks send out an ‘out of stock’ message. the hot-item printer if it is a hot sandwich or the bar printer if it is a drink. whenever an order is voided. The order is routed to a printer in the appropriate preparation area: the cold item printer if it is a salad. Solution: 1. communication networks and data sources that collects.21 - . Case Study: Information system in a restaurant. A customer’s meal check-listing (bill) the items ordered and the respective prices are automatically generated. enabling them to give better service to the customers. Other system features aid management in the planning and control of their restaurant business. Management functions include planning. software. transforms and distributes information in an organization. This may help later in management decisions. personnel and procedures. In the light of the system.MB0047-Management Information System 6. This gives the waiters faster feedback. controlling and decision making. relevant and accurate information to managers. Decision making is the core of management and aims at selecting the best . This helps management plan menus according to customers’ tastes. A management information system (MIS) is an organized combination of people. The physical components of an MIS include hardware. This ordering system eliminates the old three-carbon-copy guest check system as well as any problems caused by a waiter’s handwriting. What would make the system a more complete MIS rather than just doing transaction processing? 3. An MIS helps decision making by providing timely. describe the decisions to be made in the area of strategic planning. which will be displayed on the dining room terminals when waiters try to order that item. All potential users were asked to give their impressions and ideas about the various systems available before one was chosen.
budget forecasting. The cooks send ‘out of stock’ message when the kitchen runs out of a food item. tactical or operational information. annual budgeting. support unstructured decision making. This basically gives the waiters faster feedback. Executive support systems function at the strategic level. operating plan development. and relocation analysis are examples of decision-support systems and management information systems. especially if the voids are related to food or service. allowing planning for tighter cost controls. The item’s ordered list and the respective prices are automatically generated. tactical or technical. enabling them to give better service to the customers. Examples of executive support systems include sales trend forecasting. cost analysis. Here basically planning for future that is budgets. Tactical decisions cover both planning and controlling. It is basically a middle level where planning of menus is done and whenever an order is voided. budget forecasting. The decisions to be made in the area of strategic planning are future oriented and relate directly to planning activity. .MB0047-Management Information System alternative to achieve an objective. Transaction processing systems function at the operational level of the organization. Technical decisions pertain to implementation of specific tasks through appropriate technology. The information required to make such decision must be such that it highlights the trouble spots and shows the interconnections with the other functions. The decisions to be made in the area of managerial control are largely dependent upon the information available to the decision makers. profit planning. and manpower planning. and use advanced graphics and communications. order processing. They are future oriented and relate directly to planning activity. Examples of transaction processing systems include order tracking. The decisions may be strategic. policies. is done. the reasons for the void are keyed in which later helps in management decisions. The information required to make these decisions can be strategic. This is basically a top level where up-to-the minute information on the food items ordered and breaks out percentages showing sales of each item versus total sales is provided. Strategic decisions are characterized by uncertainty. There are 3 areas in the organization. which is basically displayed on the dining room terminals when waiter tries to order that item. This is basically a lower level where the waiter takes the order and enters it online via one of the six terminals located in the restaurant dining room and the order is routed to a printer in the appropriate preparation area. The decisions to be made in the area of operational control pertain to implementation of specific tasks through appropriate technology. target markets. managerial and operational control. It must summarize all information relating to the span of control of the manager. The top level where strategic planning is done compares the weekly sales totals versus food costs. machine control.22 - . objectives etc. compensation. Sales region analysis. and securities trading. The managerial control that is middle level also gets customer feedback and is responsible for customer satisfaction. They are strategic. Strategic decisions are characterized by uncertainty. plant scheduling.
increasing organizational control. Out-of-stock message 4. the organization can more . promoting learning and training. 3. and business units. Sales figures and percentages item-wise 2. Operating in a global environment requires an organization to focus on the efficient execution of its processes. DSSs serve the management level of the organization and help to take decisions. encouraging exploration and discovery on the part of the decision maker.23 - . Helps in planning the menu 3. Waiters’ handwriting issues 3. Cost accounting details 2. To make the system a success. An organization operates in an ever-increasing competitive. To accomplish these goals. It is also necessary to study the keys to successful Executive Information System (EIS) development and operation. it would make the system a more complete MIS and so the MIS should support this culture by providing such information which will aid the promotion of efficiency in the management services and operational system. global environment. knowledge will have to be formalized so that machines worldwide have a shared and common understanding of the information provided. creating a competitive advantage over competition. If the management provides sufficient incentive for efficiency and results to their customers.MB0047-Management Information System Advantages of an online computer system: 1. technological and environmental changes to the concerned level in the management. so that the action can be taken to correct the situation. Eliminates carbon copies 2. operational. generating new evidence in support of a decision. and speed to market. facilitating interpersonal communication. Improving personal efficiency. The systems developed will have to be able to handle enormous amounts of information very fast. Decision support systems would also make the system a complete MIS as it constitutes a class of computer-based information systems including knowledge-based systems that support decision-making activities. revealing new approaches to thinking about the problem space and helping automate the managerial processes would make the system a complete MIS rather than just doing transaction processing. customer service. levels. expediting problem solving (speed up the progress of problems solving in an organization). the organization must exchange valuable information across different functions. Faster feedback helps waiters to service the customers Advantages to management: 1. The management system should be an open system and MIS should be so designed that it highlights the critical business. By making the system more formal. which may be rapidly changing and not easily specified in advance.
business units. any frauds can be easily taken care of and if anything goes missing then it can be detected through the system. the system stores all the data which can be used later on when the hotel is in need of some financial help from financial institutes or banks. suppliers. and customers.MB0047-Management Information System efficiently exchange information among its functional areas. As the inventory is always entered into the system.24 - . As the transactions are taking place every day. .