Management Information Systems (MIS)
Session-14
Kushal Anjaria
Process Barrier
Process barriers in Management Information Systems (MIS)
refer to the obstacles that arise from the procedures,
workflows, and structures within an organisation that hinder
effective communication, information flow, and decision-
making processes. These barriers can significantly impact an
organisation's information system's efficiency,
responsiveness, and adaptability, affecting overall
performance and strategic objectives. Process barriers can
manifest in various forms and can be caused by a range of
issues within the organisation's processes and systems:
Process barriers can hinder the development of MIS by
creating delays, increasing costs, and impacting the quality
of the final product. One common process barrier is
communication breakdowns between team members. This
can occur when team members have different backgrounds,
experiences, or perspectives, making it difficult to
understand each other's ideas and suggestions. Another
process barrier is the lack of coordination among team
members, which can result in duplication of effort or
conflicting priorities. Inadequate resources can also create
process barriers in MIS development. For example, if the
development team does not have access to the necessary
hardware or software, they may be unable to implement
certain features or functionalities. Similarly, if the
development team lacks the necessary skills or expertise,
they may struggle to design or develop specific components
of the MIS.
Here's an explanation concerning process barriers in MIS:
First-Order Effect: Poor Use of IS
Explanation: When an information system is not utilized
effectively—whether due to lack of training, inadequate
design, poor user interface, or resistance to change—this
represents the first order effect. This can manifest as users
avoiding the system, using it for only a fraction of its
capabilities, or using it incorrectly.
Relation to Process Barriers: Process barriers contribute to
the poor use of IS by creating obstacles that prevent users
from effectively engaging with the system. These barriers
can be bureaucratic, such as overly complicated approval
processes, or technical, such as poor system integration or
user-unfriendly interfaces.
Second Order Effect: Effect on KPI
Explanation: The inefficiencies or misuse of IS have direct
consequences on the performance metrics of the
organization. KPIs might include measures of productivity,
quality, efficiency, or customer satisfaction. When IS is
poorly utilized, these indicators can show negative trends
because the processes they are meant to enhance or measure
are not being optimally managed.
Relation to Process Barriers: Process barriers that hinder the
effective use of IS will directly affect KPIs because they
disrupt the flow of information and the execution of
processes that are critical to achieving these key metrics. For
instance, if a process barrier causes delays in data
processing, KPIs related to timeliness and customer
satisfaction might be negatively impacted.
Third Order Effect: Increase Total Cost of Ownership
Explanation: An information system's total cost of
ownership (TCO) includes all costs associated with
acquiring, implementing, and operating the system over its
life cycle. Poor IS utilisation leads to a higher TCO because
the organisation does not achieve the expected return on
investment. Inefficiencies in the system's use require
additional spending on training, support, and possibly
modifications to the system to correct its shortcomings.
Relation to Process Barriers: Process barriers that lead to
poor use of IS and negatively affect KPIs will, in turn,
necessitate additional investments to overcome these issues.
This could mean more money spent on reworking processes,
additional training for staff, more robust integration
solutions, or even penalties for failing to meet contractually
obligated performance metrics. All these factors contribute
to an increased TCO for the information system.
Process barriers in MIS can initiate a cascade of negative
effects starting with the poor use of the system, leading to
detrimental impacts on KPIs, and culminating in a higher
total cost of ownership for the IS. Addressing these barriers
is essential for ensuring that the information system serves
its intended purpose and delivers value to the organization.
Strategic Barriers:
Strategic barriers in Management Information Systems
(MIS) refer to the high-level, often organizational-wide
obstacles that prevent the effective use and alignment of
information systems with the company's strategic goals.
These barriers can stem from a lack of vision, inadequate
planning, or misalignment between the business strategy and
IT capabilities. Strategic barriers can have a profound
impact on an organization's ability to leverage technology
for competitive advantage and can manifest in several ways:
Types and Examples of Strategic Barriers
1. Vision and Leadership Barriers: A lack of clear
strategic direction from leadership can result in
MIS that do not support or align with the business
goals. Without a strong vision, information systems
may be underutilized or misdirected.
 2. Alignment Barriers: These occur when there is a
disconnect between the organization's business
strategies and the design and implementation of its
MIS. If the MIS is not designed with strategic
objectives in mind, it can lead to missed
opportunities or strategic missteps.
3. Resource Allocation Barriers: Insufficient
allocation of resources, including funding,
personnel, and time, can impede the development
or integration of systems that are critical to
strategic initiatives. An underfunded IT department
may struggle to keep pace with technological
advancements or business growth.
4. Cultural Barriers: Organizational culture can
significantly impact the success of an MIS. A
culture resistant to change or innovation can hinder
the adoption of new systems or processes that are
crucial for strategic initiatives.
5. Planning and Forecasting Barriers: Failure to plan
adequately for future needs or to anticipate changes
in the market can lead to MIS that are ill-suited for
future challenges, rendering them obsolete or
ineffective for long-term strategic goals.
6. Policy and Regulatory Barriers: Restrictions
imposed by policies or regulations can limit the
scope, reach, or functionality of MIS. This can
restrict the strategic use of information systems to
comply with data protection laws, industry
standards, or internal policies.
Overcoming Strategic Barriers
Organizations can take proactive steps to overcome these
strategic barriers:
• Strategic IT Planning: Aligning IT planning with
business strategy to ensure that MIS initiatives
support overall business objectives.
• Leadership Commitment: Gaining commitment
from top management to champion and drive the
strategic use of MIS throughout the organization.
• Resource Investment: Ensuring adequate resources
are allocated to developing and maintaining MIS to
support strategic goals.
• Culture of Innovation: Fostering a corporate culture
that values and encourages the use of technology
for innovation and competitive advantage.
• Continuous Review and Adaptation: Regularly
review and adapt MIS in response to changes in the
business environment and technological
advancements.
• Compliance Strategy: Developing strategies to
meet regulatory requirements without stifling
innovation or strategic use of MIS.
Addressing strategic barriers requires an understanding that
the role of MIS extends beyond mere operational support
and includes enabling the strategic objectives of the
organization. It involves ensuring that all levels of
management understand and support the strategic role of
MIS and that there is a continuous alignment process as both
business strategies and technologies evolve.
MIS purviews and data requirements
Management Information Systems (MIS) are critical for
organizations as they support decision-making, strategic
planning, and operational activities. Within an MIS, data can
exist in various states – processed, analyzed, and projected.
Each state plays a vital role in contributing to the overall
effectiveness and utility of the system.
Processed Data
Importance:
• Accuracy: Processed data refers to raw data that
has been validated and formatted for use. This
ensures accuracy and consistency, which is critical
for reliable decision-making.
• Efficiency: By processing data, an organization can
automate repetitive tasks, reduce the need for
manual intervention, and increase the overall
efficiency of its operations.
• Integration: Processed data can be integrated from
various sources, providing a unified view that is
essential for comprehensive analysis and reporting.
• Readiness: It makes data ready for further analysis
and interpretation, acting as a foundational step in
transforming raw data into meaningful information.
Analyzed Data
Importance:
• Insights: Analyzed data provides insights by
identifying patterns, trends, and correlations that
are not apparent in raw or processed data.
• Decision Support: It forms the basis for informed
decision-making, allowing managers and
stakeholders to make decisions based on empirical
evidence rather than intuition.
• Strategic Planning: Analysis can help predict future
trends and behaviors, which is essential for
strategic planning and forecasting.
• Performance Measurement: It enables
organizations to measure performance against KPIs
and other benchmarks, helping to identify areas of
strength and those requiring improvement.
Projected Data
Importance:

• Forecasting: Projected data is used for forecasting

and predicting future outcomes based on historical
data and trends. This is critical for budgeting,
planning, and setting organizational goals.
• Risk Management: By understanding potential
future scenarios, organizations can prepare for risks
and uncertainties, putting in place measures to
mitigate potential negative impacts.
• Resource Allocation: It helps in effective resource
allocation by predicting future resource
requirements, ensuring that resources are allocated
to areas that will deliver the most value.
• Innovation and Growth: Projected data can inspire
innovation by highlighting future opportunities and
guiding the development of new products, services,
or market strategies.

Integrating Processed, Analyzed, and Projected Data in MIS

The integration of processed, analyzed, and projected data

within an MIS is crucial for creating a comprehensive
system that supports all levels of organizational function:

• Operational Level: Processed data helps with the

day-to-day operations and transactions of the
organization.
• Managerial Level: Analyzed data supports tactical
decision-making by providing managers with
insights into the operational efficiency and
effectiveness.
• Strategic Level: Projected data is used by senior
management for strategic decision-making, long-
term planning, and setting the direction of the
organization.

A well-designed MIS leverages all three states of data to

provide a full spectrum of information that is critical for
various stakeholders. Processed data ensures that the basic
data is correct and usable, analyzed data helps understand
the current state and historical performance, and projected
data provides a forward-looking perspective to guide future
actions. The value of an MIS is significantly enhanced when
it effectively processes data into information and then
transforms that information into actionable insights and
strategic foresight.