Management Information System

Organization And Information Systems

System: A system is a collection of elements/components that interact with each other to accomplish the defined goal Eg: University system Banking system University system: The components are: admission, teaching, examination, evaluation Each of these components interacts to train and graduate the student

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Management Information System
Organization And Information Systems

Each component in turn may be system (sub) In general, a system has 3 basic elements; Input Processing Output To support interaction a feedback mechanism is incorporated and graphically shown as;

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Management Information System
Organization And Information Systems

Information System (IS): An information system is a set of interrelated elements that collect (input) data, manipulate (process) data and disseminate (output) information and provide a reaction (feedback) to meet the objective If an information system is automated using computer as machine, then it is referred as Computer Based Information System (CBIS) and is the blend of Information System and Computer System (Hardware & Software) Information Technology: Refers to the technology of       storing retrieving processing communicating sharing protecting/securing
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MIT- Maharaja Institute of Technology

Management Information System
Organization And Information Systems

Data/information across geographical locations Makes use of Computer (hardware/software) technology Storage technology Communication technology

Organizational structure:

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Management Information System
Organization And Information Systems

Environment: It is the real world surrounding the boundary of a system Boundary: An imaginary area encompasses the system and separates it from the environment Changing Environment and its impact on business: Any change in the environment will introduce some sort of pressure/stress on system to undergo change in the system If changes are not accommodated in the system, the system starts decaying and terminates finally The changes are accommodated by: - changing the goal set of the system (new goals) - changing the levels in achieving the goals
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Management Information System
Organization And Information Systems

Types of changes in environment: - Economical (Capital, Labor, Price change, Fiscal and monetary policy, customers) - Technological - Social - Political - Ethical Data: The term ‘data’ represents Facts or figures About an event/object/entity Eg: USN, Name, Branch, DOB, Sex... etc, Represents data about the entity/object student Acc#, prev_bal, amt_credited, new BAL... Etc, Represents data about the event of bank transaction

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Management Information System
Organization And Information Systems

Information:

Information is the data that has been processed into a form that is meaningful to the recipient in order to take appropriate actions/decisions Eg: Summing all the marks and finding the average of marks scored by students to declare the class obtained. Searching all the customers in the bank who have not remitted the last 3 installments towards loan to send reminder Terms data and information are interchangeably used in many context but in reality the two are different In a vague way, data is like the raw material for processing and information is like the finished product of processing Information of one processing may become data for another processing Attributes of data: The quality of data/information depends on the attributes associated with it - Accuracy - Timeliness - Completeness
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MIT- Maharaja Institute of Technology

Management Information System
Organization And Information Systems

- Consistency - Reliability - Relevance - Privacy/protection - Source - Communication ability Levels of people: 3 levels of people are involved in any typical organization - Operational level Management - Middle level Management - Top level Management Operational management involved in     planning scheduling controlling and decision making for routine operations
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Management Information System
Organization And Information Systems

Unit manager, supervisor Eg: production of number of items to be manufactured/fabricated per unit to meet the production target Middle management involved in     short term planning setting targets controlling business functions

Production manager, purchase manager Eg: A production mangers sets the target for production of number of items for next quarter based on demand from the marketing division and plan to ship the same across business centers. Top management involved in     goal setting strategic planning evolving business plans implementation of plans

Managing Director, CEO, CAO, CE, Chairman Eg: Planning for production of new product
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Management Information System
Organization And Information Systems

Information needs for different levels of people:

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Management Information System
Organization And Information Systems

According to decision oriented view Management mainly comprises of the following:      Decisions: Decisions are the actions to be taken in order to support the management in the business activities. Two types of decisions: - programmed decisions - Non-programmed decisions Programmed decisions: These decisions are characterized by large volume of data and predefined  rules  procedures
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Planning Organizing Coordinating Directing Control

Management Information System
Organization And Information Systems

 algorithms And decisions can automated easily Handled by operational management Decisions are structured and frequency for decision is frequent The result of the decision guarantees optimal solution

Techniques used: Linear programming Simulation models Statistical models Eg: finding optimal product mix, Minimum cost production schedule, Optimal sequencing of machines, Minimizing mean flow time Non-programmed decisions:
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Management Information System
Organization And Information Systems

These decisions do not have pre-established     rules procedures algorithms data requirements are not known advance

Cannot be automated easily and completely

Need for decision is not frequent Environmental, social, technical information is required which keep changing with respect to time, geographical location Unstructured decisions due to change in type of parameters and number parameters keep changing The outcome of the decision will not guarantee optimal solution but it may be near to optimal solution Eg: Decision Support systems – interactive information systems that support/help in taking unstructured/ non-programmed decisions JIT – Just-In-Time production decisions TQM – Total Quality Management decisions
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MIT- Maharaja Institute of Technology

Management Information System
Organization And Information Systems

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