UNIT-2

MIS
 UNIT-2

unit lessons
LO1 Preparation of MIS Design
L02 Selection of Design Document
L03 Conversions of manual MIS
MIS –Development to Operation

Preparation Followed by Approach

3
MIS Design – Preparation

🞂 Identification of the important types of strategic,

managerial, and operational decisions
🞂 Relationships among decisions
🞂 Determining the flow of decisions

4
MIS Design – Preparation

Carry out :
🞂 analysis of decision flows
🞂 analysis of the information requirement of the major
classes of decisions

Thus, correct information deficiencies are uncovered

5
MIS Design

“ Once done with understanding the requirements

for MIS Design, we need to freeze the
approach.”

8
MIS Design – Strategies/Approach

Six strategies for determining MIS design :

⮚ Organization-chart approach
⮚ Integrate-later approach
⮚ Data-collection approach
⮚ Database approach
⮚ Top-down approach
⮚ Total-system approach

9
MIS Components

Management information systems are typically computer

systems used for managing five primary Components :

1. Hardware.
2. Software.
3. Data (information for decision making).
4. Procedures (design development and documentation).
5. People (individuals, groups, or organizations).

10
MIS Design is ready.

How to Develop ?

11
MIS Development -SDLC
System Development Life Cycle = SDLC

A structured step-by-step approach for developing information

systems

12
MIS Development -SDLC

MIS Design

13
Software Versions ?

94.0.4606.71
● First Number: Tracks major changes
● Second Number: Tracks minor changes
● Third Number: Tracks patches or mere bug fixes
● Fourth Number: Tracks changes less significant than a
patch
MIS Design Document : Components

15
Copyright@IPER/2016-17/BBA-4/MIS/Manish Nair
MIS - The Manual System
• Prone to error
• Lack of security
• Duplication of data
• Data inconsistency
• Lack of backups

16
Decision making &
MIS
DECISION MAKING

“A decision is a judgment. It is a choice between alternatives. It is rarely a

choice between right and wrong. It is at best a choice between “almost
right” and “probably wrong”.-Drucker

“A manager by profession is a decision maker; Uncertainty is his opponent,

overcoming it is his mission.”
Decision making is not easy

🞂 It must be done amid

1. ever-changing factors
2. unclear information
3. conflicting points of view
Decisions and Decision Making

🞂 Decision = choice made from available

alternatives

🞂 Decision Making = process of identifying

problems and opportunities and resolving them
The Significance of
Decision Making

1. Decision making is the one truly distinctive

characteristic of managers.
2. Decisions made by top managers commit the total
organization toward particular courses of action.
The Significance of Decision
Making (cont’d)

3. Decisions made by lower levels of management

implement the strategic decisions of top managers in
the operating areas of the organization.
4. Decisions invariably involve organizational change
and the commitment of scarce resources.
Categories of Decisions/Types
Programmed Decisions (routine, almost automatic
process)
◦ Situations occurred often enough to enable decision
rules to be developed and applied in the future (There
are rules or guidelines to follow)
◦ Made in response to recurring organizational problems
(managers have made decision may times before)

Example: deciding to reorder office supplies

12/18/2022
Categories of Decisions/Types
Non-programmed Decisions – (Unusual
situations that have not been often addressed)
🞂 In response to unique, poorly defined and largely
unstructured, and have important consequences to the
organization
🞂 No rules to follow, since the decision is new

🞂 These decisions are made based on information, and a

managers intuition and judgment

Example: should the firm invest in a new technology?
The Decision-Making Process

Define the problem/

Setting
managerial Searching Comparing &
Objectives by identifying For potential evaluating
the alternatives Renew alternatives
Limiting factors search

Revise or update
objectives/problem

The act
Follow-up Implementing of choice/
and decisions select the
control best alternative

Take
corrective
action as necessary
Decisions and
Decision Making
🞂 Many decisions that managers deal with every day
involve at least some degree of uncertainty and
require non-programmed decision making

▪ May be difficult to make

▪ Made amid changing factors
▪ Information may be unclear
▪ May have to deal with conflicting points of view
Conditions that influence decision
making
● Certainty
● all the information the decision maker needs is fully
available ( DSS)
● Risk
● Non programmed decisions are tailored to the situations
● Lacks complete information
● future outcomes associated with each alternative are
subject to chance
● Uncertainty
● Sometimes cant even assign probabilities
● information about alternatives and future events is
incomplete
● managers may have to come up with creative approaches
to alternatives
Ambiguity
● by far the most difficult decision situation
● goals to be achieved or the problem to be solved is
unclear
● alternatives are difficult to define
● information about outcomes is unavailable
Conditions of Decision Failure

Organizational
Problem

Low Possibility of Failure High

Certainty Risk Uncertainty Ambiguity

Programmed Nonprogrammed
Decisions Decisions

Problem
Solution
Network & Virtual
Organizations
Network Organizations
🞂 Network organizations are basically described as
small and medium-sized companies that manage
themselves and execute their work through face-
to-face communication, telephone, post and fax.
🞂 Network means nodes and links. The nodes can
be people, teams or even organizations networks
operate at many levels.
How Network Org Work?
🞂 A network organization recognizes an individual's
place in the organizational hierarchy.
🞂 Formal communication assists descending
transmission of orders and increasing transmission
of information.
🞂 Work rotates around a particular job description
that takes place in a particular space, such as
office in a particular building, street, town or state.
🞂 The reward system is based on permanence.
🞂 The network characterizes a flexible structure that
permits companies to survive in competitive
environment.
Characteristics of Network Org
Virtual Organizations
🞂 Virtual organizations are highly complex and challenging.
🞂 The development of the Information and
Communication Technology (ICT) facilitated a
decentralization of work and created pressures for new
organizational structures and job contents.
🞂 mobile and wireless technologies has transformed the
working life entirely by increasing possibilities to work
whenever in any place.
🞂 The globalization of economies and businesses
augments the number of enterprises without
boundaries, creating multi-site working in cross-cultural
contexts.
How Virtual Org Work?
🞂 virtual organizations assure the flexibility,
responsiveness, lower cost, and improved
resource utilization necessary to meet changing
task requirements in a extremely disordered and
dynamic international business environment.
🞂 Virtual organizations are dynamic networks of
knots (individuals, organizational sub-units,
organizations) whose (computer-mediated) links
are configured dynamically and only for specific
problems
Characteristics of Virtual Org
 Network Vs Virtual Org

Read more at : https://www.civilserviceindia.com/subject/Management/notes/networked-

and-virtual-organizations.html
Knowledge-based
Enterprises
Knowledge-based Enterprises
🞂 The explosion of information, shrinking technological
costs, rise of artificial intelligence, globalization of
talent, rapid innovation cycles and economics of
capital markets are re-shaping the role of financial
and knowledge capital in an enterprise.
🞂 Business performance in the early capitalist era relied
significantly on capital efficiency (combined with
other factors); however, it can now be argued that
winners and losers in Industry 4.0 will be driven by
“knowledge efficiency”