iDcfinition of Management Information Systems Basics. Management information systems refer to the practice of integrating computer systems, Descriptive Information, Descriptive information provided by a MIS gives a company Diagnostic Information. A MIS also provides companies with diagnostic information Predictive Information. As indicated by its name, definition management information system (MIS) is an information system used for decision-making, and fi the coordination, control, analysis, and visualization of information in an organization. The study of 1 [management information systems involves people, processes and technology in an organizational context. HLvpes of Information System: TPS, DSS & Pyramid Diagram [A typical organization is divided into operational, middle, and upper level. The information requirements for uset Jat each level differ. Towards that end, there are number of information systems that support each level in lorganization, This tutorial will explore the different types of information systems, the organizational level that uses them at the characteristics of the particular information system lin this tutorial, you will learn the different Classification of Information. Pyramid Diagram of Organizational levels and information requirements ‘Transaction Processing System (TPS) ‘Management Information System (MIS) Decision Support System (DSS) Artificial intelligence techniques in business Online Analytical Processing (OLAP) [Pyramid Diagram of Organizational levels and information requirements [Understanding the various levels of an organization is essential to understand the information required by the us} who operate at their respective levels. Downloade by Prashant Ral Noupane(prashantarajS@gmal com)[The following diagram illustrates the various levels of a typical organization. econ Supe Spon oy [Operational management level [The operational level is concerned with performing day to day business transactions of the organization, [Examples of users at this level of management include cashiers at a point of sale, bank tellers, nurses in a hospita customer care staff, etc. [Users at this level use make structured decisions. This means that they have defined rules that guides them whil Imaking decisions. For example, if a store sells items on credit and they have a credit policy that has some set limit on the borrowing JAI the sales person needs to decide whether to give credit to a customer or not is based on the current cred jinformation from the system. [Tactical Management Level [This organization level is dominated by middle-level managers, heads of departments, supervisors, etc, The usel et this level usually oversee the activities of the users at the operational management level. [Tactical users make semi-structured decisions. The decisions are partly based on set guidelines and judgment calls. As an example, a tactical manager can check the credit limit and payments history of a customer and decid fo make an exception to raise the credit limit for a particular customer. The decision is partly structured in the sen [that the tactical manager has to use existing information to identify a payments history that benefits the organizatid jand an allowed increase percentage. [Strategic Management Level Downloads by Prashant Ral Noupane(prashantarajS@gmal com)[This is the most senior level in an organization. The users at this level make unstructured decisions. Senior lev. managers are concerned with the long-term planning of the organization. They use information from tactic jmanagers and external data to guide them when making unstructured decisions. [Transaction Processing System (TPS) Transaction processing systems are used to record day to day business transactions of the organization. They a jused by users at the operational management level. The main objective of a transaction processing system is janswer routine questions such as; + How printers were sold today? + How much inventory do we have at hand? + What is the outstanding due for John Doe? [By recording the day to day business transactions, TPS system provides answers to the above questions in a timel manner, + The decisions made by operational managers are routine and highly structured. + The information produced from the transaction processing system is very detailed, [For example, banks that give out loans require that the company that @ person works for should have memorandum of understanding (MoU) with the bank. Ifa person whose employer has a MoU with the bank appli for a loan, all that the operational staff has to do is verify the submitted documents. If they meet the requirement} then the loan application documents are processed. If they do not meet the requirements, then the client is advise 0 see tactical management staff to see the possibility of signing a MoU. [Examples of transaction processing systems include; Point of Sale Systems ~ records daily sales Payroll systems — processing employees salary, loans management, etc. Stock Control systems — keeping track of inventory levels, Airline booking systems — flights booking management [Management Information System (MIS) [Management Information Systems (MIS) are used by tactical managers to monitor the organization's curret performance status. The output from a transaction processing system is used as input to a management informatia| Downloade by Prashant Ral Noupane(prashantarajS@gmal com)[The MIS system analyzes the input with routine algorithms ie. aggregate, compare and summarizes the results [produced reports that tactical managers use to monitor, control and predict future performance. [For example, input from a point of sale system can be used to analyze trends of products that are performing w jand those that are not performing well. This information can be used to make future inventory orders ie. increasit Jorders for well-performing products and reduce the orders of products that are not performing well [Examples of management information systems include; Sales management systems — they get input from the point of sale system Budgeting systems — gives an overview of how much money is spent within the organization for the sho! and long terms. Human resource management system — overall welfare of the employees, staff turnover, etc. [Tactical managers are responsible for the semi-structured decision, MIS systems provide the information needd to make the structured decision and based on the experience of the tactical managers, they make judgement call ic. predict how much of goods or inventory should be ordered for the second quarter based on the sales of the firs quarter. [Decision Support System (DSS) [Decision support systems are used by senior management to make non-routine decisions. Decision support systei juse input from internal systems (transaction processing systems and management information systems) a lexternal systems, The main objective of det jon support systems is to provide solutions to problems that are unique and chang! fitequently. Decision support systems answer questions such as; + What would be the impact of employees’ performance if we double the production lot at the factory? + What would happen to our sales if a new competitor entered the market? [Decision support systems use sophisticated mathematical models, and statistical techniques (probability, predict jmodeling, etc.) to provide solutions, and they are very interactive. [Examples of decision support systems include; Financial planning systems — it enables managers to evaluate alternative ways of achieving goals. objective is to find the optimal way of achieving the goal. For example, the net profit for a business calculated using the formula Total Sales less (Cost of Goods + Expenses). A financial planning system wil Downloads by Prashant Ral Noupane(prashantarajS@gmal com)‘enable senior executives to ask what if questions and adjust the values for total sales, the cost of goods, et to see the effect of the decision and on the net profit and find the most optimal way. Bank loan management systems — itis used to verify the credit of the loan applicant and predict the likelihood of the loan being recovered, [Artificial intelligence techniques in business |Antficial intelligence systems mimic human expertise to identify patterns in large data sets. Companies such 4 |Amazon, Facebook, and Google, etc. use artificial intelligence techniques to identify data that is most relevant se Facebook as an example, Facebook usually makes very accurate predictions of people that you mig! know or went with to school. They use the data that you provide to them, the data that your friends provide an based on this information make predictions of people that you might know. [Amazon uses artificial intelligence techniques too to suggest products that you should buy also based on what ya} are currently getting, (Google also uses artificial intelligence to give you the most relevant search results based on your interactions wif [Google and your location. [These techniques have greatly contributed in making these companies very successful because they are able provide value to their customers |Online Analytical Processing (OLAP) [Online analytical processing (OLAP) is used to query and analyze multi-dimensional data and produce informatid that can be viewed in different ways using multiple dimensions. [Let's say a company sells laptops, desktops, and Mobile device. They have four (4) branches A, B, C and D. OLA ican be used to view the total sales of each product in all regions and compare the actual sales with the projectd sales. [Each piece of information such as product, number of sales, sales value represents a different dimension The main objective of OLAP systems is to provide answers to ad hoc queries within the shortest possible ti regardless of the size of the datasets being used. [There are various types of information systems, few of them are listed belo + Transaction processing system Downloade 2 Prashant Raj Neupane (prashantarajS@gmal om)fF Decision support system J+ executive information system J+ Management information system + Workflow system > Enterprise resource planning and J+ Expert systems. — —— ae SSeS {Che Role of Information Svstems in Running the 21st Century Organization fanagement Information Systems (MIS) focus on the use of Information and Communication Technologies (IC jin managing organizations. In the 21" century almost all organizations use Information and Communicati [Technologies to efficiently manage their operations, to help managers make better decisions and achie' competitive advantage, and to facilitate seamless internal and external communications with their employee customers, parters, and other stakeholders. [Businesses Pre-Information Systems [Until the 1990s, before the widespread adoption of personal computers and the Internet, companies were usi information systems to manage data processing and record-keeping activities associated with business transaction like maintaining the general ledger (book keeping), payroll, billing, inventory management, etc. The focus w: [mainly on maintaining files and databases related to day-to-day operations. Communications, both internal lexternal, relied on paper, telephone, faxes, and other analog media, Information systems have evolved over the la Downloads by Prashant Ral Noupane(prashantarajS@gmal com)[20 years, including the move from the mainframe computer of the 1970s to personal computers becoming 4] integral part of the tracking and organizational process in the 1980s. The arrival of the mainstream internet in t 1990s expanded business capabill ies and the role of information systems to a global system of interaction. [Today, the main focus of companies is to stay globally competitive by leveraging the capabilities of moder information and communication technologies (ICT). Companies can use ICT to provide products & services of highest quality at affordable prices and top-rated customer service, and help the companies to enter new marke} {through e-commerce. Globalization, collaboration, and integration have become the new drivers in this competiti jarena, To remain competitive, companies are investing in modem information systems like Enterprise Resour [Planning (ERP) software, which integrate the different functional areas of the business, and provide consiste real-time data for fast decision making. ERP systems help companies manage their operations seamlessly acto the globe. [Modern Day Use of Information Systems lin the past when a company received a customer order, whether it was for a servi requested or for a produ nurchased, the order needed to go through a process of paper-based workflow that was passed along to differe [departments, inbox-to-inbox. Throughout this process, the order often had to be re-typed as it passed throu; various departments, increasing the potential for human error. There was no accurate account order status becatu there was no official tracking device to alert each department, In order to retrieve order status informatio: [customers were frequently directed to contact the company’s warehouse for manual research! [Today, companies have eliminated the inaccuracy of paper-based tracking by implementing ERP systems, In recent study conducted by Panorama Consulting Solutions, 63 percent of companies used their ERP software climinate inefficiencies in processes such as order tracking. Instead of standalone computer systems, ERP uses| junified program that links various functional departments such as finance, HR, manufacturing, warehoust planning, purchasing, inventory, sales, and marketing. While each department may have its own set of softwi modules, the software is interconnected so that information can be shared throughout the organization. Once o {department is finished updating and processing the order, it is automatically routed to the next department so th leveryone is alerted to changes made. |Adopting the Global Market, [Many businesses have begun to participate in the global market, as it presents a chance for greater revenue ar larger business prospects. [Already, the global information systems market has seen consistent demands from several businesses. T [challenges vary depending on the size of businesses. For smaller businesses, controlling operations and stori jinformation are less complicated. As businesses grow, especially those intersecting with global relation| information systems are used to manage operations accurately without growing the number of employees. lecowing supply chains require that software solutions be used in the following sectors: Downloade 2 Prashant Raj Neupane (prashantarajS@gmal om)[F Web-based ordering + Customer relationship management J+ Product configuration [The Future of Information Systems |As companies try to reduce costs, improve productivity, employers are looking to ERP systems to help them gro} jand remain competitive globally. Information systems have enhanced productivity for businesses. A career j managing information systems is ideal for those looking to advance in a Fortune 500 company. As businesses a jons today require more and more technical skills, companies are looking for employees who will hel manage and operate the various information-based tools. J|Among the many degree and cert [programs pertaining to Enterprise Resource Planning (ERP), These programs provide hands-on experience jutilizing SAP ERP, the market leader in ERP software today. The ERP programs offered at The University ate programs available online at ‘The University of Scranton are the tw Scranton are: (i) a stand-alone, 4-course Graduate Certificate program; and (i) an ERP specialization within IMBA program, [Classification of Information System + Operations support system. In an organization, data input is done by the end user which is processed to generate information produets ie, J+ Transaction Processing System (TPS) In manufacturing organization, there are several types of transaction across department, J+ Process Control System. J+ Enterprise Collaboration System. .. > Management Support System, [What is the classification of information? Into how many times it has been categorized? [Information can be classified in a number of ways and in this chapter; you will learn two of the most important ways to classify information. Downloads by Prashant Ral Noupane(prashantarajS@gmal com)Information ———— Classification by Classification by Classification by Characteristics ‘Application Management Hierachy ‘Action vs non action Information Supervisor level Planning Information ee Recurring vs. Non cocaine perrteton} F-] Control information Middle Le women [LJ prolate | hopes [Classification by Characteristic [Based on Anthony's classification of Management, information that is used in business for decision-making lgenerally categorized into three types: Strategic Information: Strategic information deals with the objectives of a business with long term policy| decisions and checks whether these objectives are met up to their level or not. For example, acquiring a new plant, a new product, diversification of business etc, comes under strategic information, Tactical Information: Tactical information deals with the information needed to control over business resources, like budgeting, quality control, service level, inventory level, productivity level ete Operational Information: Operational information deals with plant/business level information and is used to handle proper conduction of specific operational tasks as planned/intended. Various operator specific, machine specific and shift specific jobs for quality control checks comes under this category. [Classification by Application in terms of applications, information can be categorized as: Planning Information: These are the information used in business organizations maintaining standard norms and specifications. Everything is planned here. This information is used in strategic, tactical, and operation] planning of any activity. Examples of such information are time standards, design standards. Downloade by Prashant Ral Noupane(prashantarajS@gmal com)‘Control Information: This information is required for specific activities performed by the system in order to attain their objectives. This information might be formal or informal. Itis used for controlling attainment, nature and utilization of important processes in a system. When this information did get any deviation from the| established standards, the system should develop a decision or an action leading to control the information| related to their objectives Knowledge Information: Knowledge is defined as "information about information”. Knowledge information| is acquired through experience and learning, and collected from archival data and research studies. Organizational Information: Organizational information deals with an organization's environment, where organizational objectives are met, Karl Weick’s Organizational Information Theory emphasizes that an] organization reduces its equivocality or uncertainty by collecting, managing and carefully. This information is used by everybody in the organization; examples of such information are employee and payroll information. Functional/Operational Information: This is operation specific information where the organization assists to perform its functions of day-day transactions, Mainly holds technical work For example, daily schedules in al manufacturing plant that refers to the detailed assignment of jobs to machines or machines to operators. In a service oriented business, it would be the duty roster of various personnel. This information is mostly internal to the organization. Database Information: Database information as we know that it is a collection of related data that is stored, retrieved and managed to form databases. It stores large quantities of information that has multiple usage andl application. For example, material specification or supplier information is stored for multiple users. It is atype of software program. [Information as Discipline Downloads by Prashant Ral Noupane(prashantarajS@gmal com)Inter-Disciplinary Perspectives in Information Systems i eres) Technical a (Gee) Information _\ vows SE sytem ED i S ae Process centric [Information Systems (IS) is a professional and academic discipline concerned with the strategic, managerial a operational activities involved in the gathering, processing, storing, distributing and use of information, and i associated technologies, in society and organizations IIS Opportunities & Challenges [838 words (3 pages) Essay 6th Sep 2017 Information Systems Reference this |Disclaimer: This work has been submitted by a university student. This is not an example of the work produce by our Essay Writing Service. You can view samples of our professional work here. [Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and not necessarily reflect the views of UKEssays.com. Downloade by Prashant Ral Noupane(prashantarajS@gmal com)[In this modern times, the world operates on numerous information systems. It is evolving rapidly and the functionality of itis seemingly increasing and so information system is becoming a requirement and not a choic |Get Help With Your Essay If you need assistance with writing your essay, our professional essay writing service is here to help! [Today, an electronic network which is the internet allows access to a vast amount of information sources. Th indicates every single individual and organisations can obtain information with no problems if the entity hq internet access. Currently, information is accessible from database, WAIS (Wide Area Information Servers lzopher, and a wide variety of sites which contains information across the web. Every large company worldwid that relies on e-commerce have been globalized through the internet and so companies such as Amazon, VF, Ebd lor Walmart are very successful in terms of marketing and sales. However, opportunities in a global scale presen| several challenges including culture and language, distance and time. [With the creation of the internet, the augmentation of global markets is feasible. There is an abundance in terms 4 the number of business transactions that occurs each day through the internet globally. The use of informati technology provides support to business processes that allows operations such as business-to-customer or busines| o-business transaction to be easier. [Cultural challenge The information system is conflicted internationally by cultural differences in various other countries and areas the world. Every country in the world has its own traditions and culture that may differ from and not accustome| to other country.A These dissimilaities form a cultural barrier in which affects companies that endeavor glob: trade. The difficulties that businesses will encounter are managing people, tastes, issue with ethics, gestures au specific groups averse to “Westernisation”. An American commercial fast-food franchise company such McDonalds may find it difficult to establish other franchisee in other continent like Asia due to preference of tast The technologies applied to entice the customers in the United States to McDonalds’ taste of food could 4 irrelevant as it may not work in Asia, Therefore, organisations managing food products must examine and alter tl taste of their food to ensure that they satisfy the local demands [Language challenge: Downloads by Prashant Ral Noupane(prashantarajS@gmal com)fOn the internet, the most common language used is English. However, there is only a fraction of 26.3 percentth speaks English as. opposed to. 74.7 percent of non-English speaking —_countri {hups:l/www.statista.comy/statistics/262946/share-of-the-most-common-languages-on-the-intemnet/). There is a seemingly an issue with the translation of information to other languages which causes a laborious process of translating the precise meaning of the info from one language to another. Google has provided a solution in translating dialogue, text, pictures, or real-time videos into 103 different language a levery-day/). The challenge that large companies which retains international partners must decide on choosing a :/Awww. ber in/news/poogle-translate-turns-10-now-supports-103-languages-translates-100-billion-words- lcommon language. Information is required to be translated due to the lack of computers capability to accurately translate words. [The Challenge of distance and time: [Time differences is a challenge for people to communicate with others that resides in a different part of the worl The products may have a delivery time of days, weeks or even months to be received to other countries. Thi [creates delays and disruption with business transaction which causes employees and customers located in differe [countries to have difficulty with getting connected. VF, an apparel manufacturer company has formed an idea [constructing “new communication tools that make it easier for everyone to work together”. (reading review) doing this, it allowed them to combat these challenges and provided asolution they need to increase the longevit lof their company. [Conclusion: [Looking at the global challenges in information system stated above shows us the overview of companies that us le-commerce must deal with.A Modem technology and the use of intermet is changing how Businesses a lorganisations around the globe is operating. More and more are advertising their products online to effective Jmake sales. Companies utitlise technology to ensure handling good teamwork is attained across geographic: boundaries. However, there is a concern for challenges that come with the development of technology information systems. Week 2 Management Information Systems in ion lintroduction to Information Systems provides the basics of information systems, a requirement for everyor Jworking in various types of organizations today. Information technology is an extremely important ai increasingly complex component of business and professional organizations Downloade by Prashant Ral Noupane(prashantarajS@gmal com)[An Information System is a man-made system that facilitates an organization's operational functions and suppor management decision-making by providing information that managers can use to plan and control the activities the firm. [Role of Management Inform: The role of management information 5} tems in organization decision-making processes is key to helpi businesses reduce waste and increase profits. MIS reports can be used by individual managers and groups managers and can be shown to employees to highlight where they are performing well and where they need grow. yhen management has an accurate report, they do not have to guess about who is doing well or what needs be improved or wonder where their blind spots are, The data help them see a clearer, less-biased picture th they could come up with on their own. Implementing Management Information Systems [Once management information systems are in place, implementing them into management workflow is vital their effectiveness. Management needs to be aware of how to access the data, run regular reports and find hel jwhen they need it. Visual presentations and opportunities for hands-on exploration of the systems help manage to get used to accessing data before they need to. [Help-desk personnel could choose to host a class or webinar that walks management through every step need to navigate through your company's MIS. Due to the importance of MIS data in decision making, it is imperati that management has a thorough understanding of how and when to best use the system. [Importance of Decision Making [Managers regularly make decisions that impact the daily lives of their employees, so having accurate data is jimportant. Changes introduced by management have the power to alter someone's life by: lincreasing or decreasing stress levels. increasing or decreasing workload. lincreasing or decreasing ease of job performance, lincreasing or decreasing job task understanding. Giving or taking away livelihood. Downloade 2 Prashant Raj Neupane (prashantarajS@gmal om)[The large impact of managerial decisions on the everyday lives of people as well as on the company’s bottom ine means that decisions cannot be made lightly or without adequate information. [Decision-Making Processes [Many companies train their managers to make decisions using a structured decision-making process. While the: [processes vary slightly from organization to organization, a basic seven-step process is common: Identify the problem, . Gather data related to the problem, Identify possible solutions to the problem. Consider pros and cons of each solution. . Choose the solution that minimizes risks while increasing benefits. Execute your plan, adjusting as needed. Review the effectiveness of your plan to help inform future decisions. limportance of MIS in Decision Making [The importance of MIS in decision making can be seen throughout the typical corporate decision-maki [process. MIS reports typically alert management about problems by highlighting poor performance, lower tha lexpected sales, problems in efficiency and so forth. [These same reports allow managers to gather data related to the problem by looking at trends over a cert [pcriod of time and seeing where improvements can be made. This information empowers managers to brainstory ja wide variety of possible solutions to the given problem so that they can consider the pros and cons of eac| Jone. This makes it possible for management to choose and execute a plan to solve the problem. [Future MIS reports should show improvement in the problem areas so that managers can accurately evaluate the| success of their given plan and make adjustments going forward. [Proactive Versus Reactive Decision Making [The importance of MIS in decision making lies in its ability to help managers become proactive versus reacti ldecision makers. Without proper data, crises can build in the background and then explode, causing manage to go into survival mode and make reactive decisions that Band-Aid the problem rather than prevent it in 1 first place. Downloade 2 Prashant Raj Neupane (prashantarajS@gmal om)[The role of management information systems in organization leadership is to give a heads up about growth ared before major crises emerge so that they can make proactive decisions. ‘This results in crisis prevention so th the company can focus on growth. [Goal Setting and MIS [Because MIS provides a plethora of information that helps with proactive decision making, itis also helpful f goal setting and review. When your management team sets goals for the week, month, quarter or year, those ca be programmed into your management information system. Then, it is easy to track actual performance again| jyour goals and then either increase or decrease your goals in the future to make them more probable and mi rofit margins more accurate. For instance, if your sales team sets a goal to do $25,000 in sales this month but is only able to come up with [515,000 in sales when working efficiently, you can try setting a different goal next month. Maybe you set a goal [for $20,000 and then run a customer special to make that more achievable and find that your team does $19,001 JYou know that the following month is busy for sales, and so that month your team does $21,000 in sales and ca be reasonably certain that $20,000 is a pretty accurate prediction of team sales going forward. The informatio jused to set these numbers and adjust them all comes from your MIS report showing total sales and employe performance trends, [Limitations of MIS in Decision Making While the role of MIS in decision making is vital to the health of most businesses, it's not without limitation| [Management information systems measure data but cannot always accurately collect information on things Ii {cam morale, job satisfaction and other abstract dynamics at play in the workplace. Human resources specialist [corporate psychologists and good old-fashioned relationship building can help make up for the blind spots MIS. MIS & Technology [Management information system (MIS) refers to a large infrastructure used by a business or corporation, where information technology (IT) is one component of that infrastructure that is used for collecting and transmitti data, A management information system helps a business make decisions and coordinate and analyze informatio Downloade 2 Prashant Raj Neupane (prashantarajS@gmal om)re Applicato Per oy Cea cry Business Peay Pers [information Systems vs Information Technology introduction It is often observed that term information system and information technology are used interchangeably. In a liter sense, information technology is a subset of information systems. Information systems consist of people, processe| [machines and information technology. The great advancement in information systems is due to development information technology and introduction of computers. information System [An information system can be defined as set of coordinated network of components, which act together tow. producing, distributing and or processing information. An important characteristic of computer-based informati Jsystems information is precision, which may not apply to other types. lin any given organization information system can be classified based on the usage of the information. Therefor information systems in business can be divided into operations support system and management support system, [information Technology [Everyday knowingly or unknowingly, everyone is utilizing information technology. It has grown rapidly a lcovers many areas of our day to day life like movies, mobile phones, the internet, ete. [information technology can be broadly defined as integration of computer with telecommunication equipment ff Storing, retrieving, manipulating and storage of data. According to Information Technology Association of Downloade by Prashant Ral Noupane(prashantarajS@gmal com)[America, information technology is defined as “the study, design, development, application, implementatio support or management of computer-based information systems.” linformation technology greatly enhances the performance of economy; it provides edge in solving social issues jell as making information system affordable and user friendly. linformation technology has brought big change in our daily life be it education, life at home, work plact lcommunication and even in function of government. [Comparison of Information System and Information Technology information system and information technology are similar in many ways but at the same time they are differen| JFollowing are some aspects about information system as well as information technology. + Origin: Information systems have been in existence since pre-mechanical era in form of books, drawing| etc, However, the origin of information technology is mostly associated with invention of computers. = Development: Information systems have undergone great deal of evolution, ie. from manual recor keeping to the current cloud storage system. Similarly, information technology is sceing constant chang with evermore faster processor and constantly shrinking size of storage devices. + Business Application: Businesses have been using information systems for example in form of manu books of accounts to modern TALLY. The mode of communication has also gone under big change, fi example, from a letter to email. Information technology has helped drive efficiency across organizati with improved productivity and precision manufacturing, [Future of Information System and Information Technology [Information technology has shown exponential growth in the last decade, leading to more sophisticated informati systems, Today's information technology has tremendously improved quality of life. Modern medicine hi benefited the most with better information system using the latest information technology. [information systems have been known to mankind in one form or the other as a resource for decision makin; However, with the advent of information technology information systems have become sophisticated, and the| jusage proliferated across all walks of life. Information technology has helped managed large amount of data int juseful and valuable information MIS & Business [Management Information Systems (MIS) and Business Process Management (BPM) [Management Information Systems (MIS) focuses on the use of Information and Communication Technologi (ICT) in managing organisations. In today's highly competitive and global economy, all organisations need to Downloade 2 Prashant Raj Neupane (prashantarajS@gmal om)fuse ICT to effic ntly manage their operations, help managers make better and faster decisions to achieve [competitive advantage, and facilitate seamless communications with employees, customers, partners, and other stakeholders. Competencies in such areas as big data analytics, cloud computing, Internet of Things and Jaugmented reality have become essential to survival in the rapidly changing business environment. [Organisations are under intense pressure to remain competitive, decrease costs and increase productivity by jimproving business processes. Business process management (BPM) helps managers improve organisational performance by analyzing, designing, implementing, monitoring, controlling and modifying operational busines| processes. BPM may include such continuous process improvement methodologies as Lean, Total Quality [Management and Six Sigma to enhance organisational efficiency and profitability. Is Great MIS Careers 1, Computer Systems Analyst 2. Software Developer 3. Web Developer 4, Information Security Manager 5. Technical Support Specialist [MIS Opportunities [Top Jobs for Management Information Systems Degree Majors 10 Careers for MIS Graduates. Management Information Systems (MIS) is a broad term for the technological systems businesses use to manage their daily operations, [Computer Systems Administrator. . [Search Engine Optimization Specialist [Database Administrator. [Information Security Analyst. |App Developer. Librarian. IIT Manager. Downloade 2 Prashant Raj Neupane (prashantarajS@gmal om)|What are the challenges of MIS? J+ + MIS requires a wide variety of knowledge areas ncluding accounting, finance, marketing and manufacturing Therefore + Both technology and technology-related products are emerging at very high pace. Consequently no one possibly be.. + + Many terms used in MIS are inaccurate and controversial because of high pace of new hardware, software and. > * MIS problems are difficult to define, Some times a situation may be seen as a problem but in fact it may be a symbol, [Week 3 STRTEGIC MANAGEMENT [Strategic information is used for gaining competitive advantage and formulating business strategies lorganizations. It may deliver a service or product that is at a lower price, differentiated and mainly concentrat lon a demanding market section, or which is innovative. [Concept of Strategy [A strategy is considered as a long-term plan that relates the strategic advantages of an organization to the challenges of the environment. It involves the determination of the long-term objectives of the organization and the adoption of courses of action. It also involves the allocation of resources necessary to achieve the objectives [When defined this way, objectives are considered as part of strategy formulation, According to the definition [provided by Thompson and Strickland, the strategy is the means used to achieve the ends. [Here ‘means’ refer to ways or actions and ‘ends’ refer to objectives. Strategy expresses the intention of Jmanagement about the way to achieve objectives of the organization. Downloade 2 Prashant Raj Neupane (prashantarajS@gmal om)Sources of Internal Information Information gathered and generated from various internal departments: Finance Personnel ka Marketing Department Purchasing Sales and customer services Manufacturing Distribution Administration Research and Development (“R&D”) Downloade by Prashant Ral Noupane(prashantarajS@gmal com)Internal 2 Internal vs. External Sources of Data # ¢ Internal External Many institutions and departments | |» When information is collected have information about their from outside source. regular functions, for their own saeroal pepo Such types of data are either 2 When those information are used mary or secondar in any survey is called internal sources of data Serpe tal meclsyeec be callected by census or sampling Routine surveillance, hospital records External JExternal sources of information for strategic management 1. Academic and Professional journals: from time immemorial, academic and professional journals have alway been a. Business directories: this is a pool of similar businesses with brief details about them. It can be online or offline. Databases (online and offline): the world that we now live in is not in short supply of databases that perfect fits. Customers: customers are goldmine when it comes to getting information that can be used for. [importance Of The External EnvironmentTan Chee Teik | General [March 1, 2013 [To keep the business ahead of the competition, managers must continually adjust their strategies to refle the environment in which their businesses operate. This article looks at how to study the political, economil and technolog conditions to. help formulating _ strateg [THE external environment plays a critical role in shaping the future of entire industries and those of individu businesses, To keep the business ahead of the competition, managers must continually adjust their strategies reflect the environment in which their businesses operat It is a useful exercise to do an external analysis atthe start of the strategy review process. Gather your team togeth to do a PEST analysis. After the analysis, you will get an overview of the environment that your business is in, t factors that may affect it, and the issues that require attention in the strategy During the discussion, the lead should fill in the factors suggested by the team regarding the political, economic, social, and technologie: conditions or PEST for short. On a flip chart, draw a large square with four parts as shown in Figure igure 1: Flip Chart for PEST Brainstorming POLITICAL, ECONOMIC SOCIAL TECHNOLOGICAL [Under political analysis, your team may want to consider the political stability of the region, what the chances military action are, the legal framework for contract enforcement, trade regulations and tariffs, intellectual proper protection, the favoured trading partners and related topic! [Under economic analysis, discuss the types of economic system in the countries the company operates, the amou lof government intervention in the free market, the efficiency of the financial markets, infrastructure quality, skill —level_~—=sof-—the.-~— workforce, labour costs,» and-—srelevant factor} Downloade by Prashant Ral Noupane(prashantarajS@gmal com)[The various central banks can lower the reserve requirements of the country’s banks so that in difficult times, th ldon’t have to keep high deposits at hand and this leads to freeing up more money for loans to companies [For social analysis, look into the demographics, education, class structure, culture, entrepreneurial spirit, and healt jand environmental consciousness. The values and attitudes that members of a firm bring to the workpla derived from sources such as religion, family, and social institutions. These are attitudes towards change, succes| jwork, risk-taking, use of time, competition, achievement motivation, and_—_authorit [For the technological analysis, discuss the recent technological developments, the technology's impact on co: impact on the value chain structure, andthe rate of__technological diffusioy ih ea eS Ea old Deed ate ANALYSIS Rizern tala coco Ea Das Many technological innovations have change the way mai jindustries operate. Those that are too slow to change have no choice but to fold, For example, the MP3 mus} format has changed the record industry. The sale of music albums have fallen drastically while the purchase 4 Jingle songs online has proliferated. The popularity of reading E-books has affected the sales of hard copiet [The PEST analysis is merely a checklist to ensure that you have analysed the salient factors. It is a great help ¥ guide the group through the initial analysis. When the team gets an accurate picture at the beginning of the strategi it will lead them to. adopt successful strateg: [Some scholars have put forth other specific forces that will have an impact on business organisations. They includ the stockholders, customers, the public, financial institutions, material suppliers, competitors, and labour union[A Management Information System or MIS is used by businesses to gather, compile and analyze informatio [Today, an MIS is highly integrated with a company's computer systems, usually involving databases with vat jamounts of data, While the type of information used can vary from one business to another and even betwed departments, the role of management information systems is almost always the same: to improve operation| strategies and decision-making, The Role of MIS Today [The amount of information available to any business today can be overwhelming. How this information Imanaged and therefore leveraged to better decisions depends on the goals and objectives of your business. Jul Jas no two people use their cell phones for the same things, no two businesses use MIS in the same way. junderstand the functions of management information systems in an organization, it's best viewed at four differed levels: transactions, operations, management and strategy. The Role of MIS in Transactions linformation management begins at the transaction level, where the information is gathered and stored. Thi [means deciding which information is important enough to be collected and stored. For example, if your busine ells clothes online, you would probably record customer information, including names, addresses and purchaj history. Once this information is compiled, it would give you insight into your customers’ demographics a preferences. However, if you also recorded items they searched for, items they browsed for more than a fe} Jceconds and items they removed from their shopping carts, you would have much more information that coul fell you how you can improve your sales. [Brought to you by Techwalla [Even at the transaction level, an MIS can have a vital role in your organization. Suppose a customer calls to a Jabout an item. If the customer service representative has the customer's transaction history at his or her fingertip| lhe or she could more easily assist by immediately knowing the customer's name, purchase history and retu history. Knowing if the customer is calling from New York or Los Angeles, the representative can more easi predict how long an item will take to be shipped. IMIS in Operations and Management Downloade by Prashant Ral Noupane(prashantarajS@gmal com)[Having accurate and timely information can help all operations in a company to make better decisions and. lensure everything runs smoothly. Knowing exactly how many orders have been placed, the producti Idepartment will know how much work they have to do today. linformation used at the operations level often goes hand-in-hand with better management decisions. F lexample, if the warehouse manager knows that 500 customers have pre-ordered an item that is due to arrive q [Friday, he may decide to have a few workers come in on Saturday to reduce Monday's workload. At the sant time, the accounting department will know that there will be an influx of cash when Monday's credit-card ordet jare all processed. The marketing department will be able to determine which ad campaigns were responsible f4 the bulk of those orders and which should be used again. The Role of MIS in Business Strategy |A well-optimized management information system can pay off beyond operations and management decision| |As the owner of a small company, you can review purchases over the past year to determine which markets 4 lexplore next. For example, suppose your retail website originally sold dresses and other garments and last ye jyou began offering shoes at a good profit margin. Today, however, dresses account for very few sales and a hig percentage of returns. Sales of shoes have been steadily increasing. At the same time, your web developers ha pointed out that "handbags" and "belts" are now the most popular search items on your website. Based on thi jinformation, you have the information you need to phase out dresses and begin offering these sought-afty Jaccessories to your customers. IMANAGEMENT [Purpose of a Management Information System [How to Use a Management Information System |A Management Information System, or MIS, collects data from many different sources and then processes an| lorganizes that data to help businesses make decisions. These days, technology and data collection are [prevalent that businesses large and small are using Management Information Systems to improve their outcome} JA good MIS can give your business a competitive advantage because it turns thousands of data points in helpful, usable information that can be used to tweak your strategy and increase profits.IL:DR (Too Long; Didn't Read) |A Management Information System collects all of business data from various sources, processes and organizes it. [How a Management Information System Works [The term Management Information System sounds complicated, but actually the concept is quite simple whq lyou break it down. A business collects many different types of data. For example, a clothing retailer trac inventory, manufacturing, personnel, online and in-store sales and marketing, just to name a few. An M collects all of this data from various sources, processes and organizes it. Next, the MIS takes all of this processq ldata and generates a user-friendly report that management can consult while making decisions. Using [clothing retailer example, a manager might look at an MIS report and lear that on Wednesdays, in-store busine is slow and, therefore, the store is overstaffed. The manager can now make the decision to cut back employ hours on Wednesdays, keeping in line with demand. Ultimately, utilizing this data will help maximize profi land ensure that business operations are running smoothly. It’s important to note that Management Information Systems don’t have to be massive networks. A sol [proprietor using just one computer could set up an MIS. One example of this would be a doctor who uses a IMIS to track scheduling, wait times, patient data, billing, dealings with insurance companies and accountin; [Or, a freelancer might use an MIS to track their hours, invoicing, clients, marketing efforts and sales, However, management must have the confidence that the data in an MIS is valid in order to make effecti ldccisions. If employees are not doing a good job at capturing the correct data, then management will junknowingly making decisions based on flawed information. [Types of Business Decisions [An MIS can be used to aid in the planning of many different functions of a business, such as marketing, logistic} personnel, finance and accounting, information planning and upper management. Using marketing as lexample, an MIS helps forecast sales and analyzes the behaviors of customers. A report might reveal that yo [potential customers are spending time shopping on your website, only to abandon their carts when they encount the checkout process. Now, you can tweak your checkout process or offer your customers other incentives f [completing their purchases, thus increasing sales. Some retail companies will go so far as to email custome jwho have abandoned their carts and offer promotional codes. You can bet that these savvy companies are doi 0 because their data showed that far too many customers were abandoning full carts, and this tactic works 4 Downloade by Prashant Ral Noupane(prashantarajS@gmal com)[Using a Management Information System is beneficial because it provides data for both the big and small pictu Jon operations, management, strategy and transactions. Knowledge is power. Understanding your business’ da helps you plan for operations and resource allocation in an organized and systematic way. With the rapi [development of technology and data systems, businesses that stay one step ahead remain competitive. A go% IMIS helps businesses make small, incremental changes that can add up to large outcomes. [Six Major Types of Information Systems IA typical organization has six of information systems with each supporting a specific organizational level. Thes| [systems include transaction processing systems (TPS) at the operational level, office automation systems (OAS) land knowledge work systems (KWS) at the knowledge level, management information systems (MIS) and [support Systems|(DSS) at the management level, and the executive support systems (ESS)at the strategic level [Contents [show] [Transaction Processing Systems) [Every firm needs to process transactions in order to perform their daily business operations. A transaction refel to any event or activity that affects the organization. Depending on the organization's business, transactions mal lciffer from one organization to another. In a manufacturing unit, for example, transactions include order entr receipt of goods, shipping, etc., while in a bank, transactions include deposits and withdrawals, cashing of chequ ete. Is Drinking Too Much Coffee Bad for Your Health? [However, some transactions, including placing orders, billing customers, hiring employees, employee recor keeping, etc., are common to all organizations. To support the processing of business transactions, the transactic [processing systems (TPS) are used in the organizations, [Office Automation Systems| Downloads by Prashant Ral Noupane(prashantarajS@gmal com)[An office automation system (OAS) is a collection of communication technology, computers and persons [perform official tasks. It executes office transactions and supports official activities at every organizational lev [These activities can be divided into clerical and managerial activities. [Clerical activities performed with the help of office automation system include preparing written communicatio} lypesetting, printing, mailing, scheduling meetings, calendar keeping.ete. Under managerial activities, offi Jautomation system helps in conferencing, creating reports and messages, and controlling performan jot [organizatiog. Many applications like word processing, electronic filing and e-mail are integrated in offi jautomation system, | Word Processing] [Word processing is used for the preparation of documents like letters, reports, memos, or any type of printab| material by electronic meat ‘The text is entered by keyboard and displayed on the computer's display unit. Th text can be edited, stored, and reproduced with the help of commands present in the word processor. Wor [processors have facilities for spell checking, grammar checking, counting (character, lines, pages, etc.), automati [page numbering, index creation, header and footer,ete [Email [E-mail or electronic mail facilitates the transfer of messages or documents with the help of computer ay [communication lines. This helps in speedy delivery of mails and also reduces time and cost of sending a pap [mail. E-mail supports not only the transfer of text messages but it also has options for sending images,audio, vidi Jand many other types of data. [Voice Mail] Voice mail, an important call service, allows recording and storing of telephone messages into the computer's, Jmemory. The intended person can retrieve these messages any time. | Knowledge Work Systems |A knowledge work system (KWS) is a specialized system built to promote the creation of knowledge and to ma |sure that knowledge and technical skills are proper integrated into business. It helps the knowledge workers lcreating and propagating new information and knowledge by providing them the graphics, analytic lcommunications, and document management tools. Downloade 2 Prashant Raj Neupane (prashantarajS@gmal om)[The knowledge workers also need to search for knowledge outside the organization. Thus, knowledge work syste must give easy access to external databases. In addition, knowledge work systems should have user-friend jinterface to help users to get the required information quickly and easily |Some examples of knowledge work systems are computer-aided design (CAD)systems, virtual reality system} Jand financial workstations. | Computer-aided design (CAD) systems: {These systems are used for automating the crestion and revision of designs using computers and graphics software. The CAD software has the capability to provide design {specifications for tooling and manufacturing process. This saves much time and money while making a jmanufacturing process, \Virtual Reali ‘System: These systems have more capabilities than CAD systems for visualization, rendering ai Jsimulation. They make use of interactive graphics software to build computer-generated simulations which almo} llook like real. They can be used in educational, scientific and business work. [Financial Workstations: [They are used to combine a wide range of data from internal as well as external source} This data includes contact management data, market data and research reports. Financial workstations help Janalyzing trading situations and large amount of financial data within no time. It is also used for portfoli |management, [Management Information Systems [Management information sys ems are especially developed to support planning, controlling, and decision-makin [functions of middle managers. A management information system (MIS) extracts transaction data from underlyin| [TPSs, compiles them, and produces information products in the form of reports, displays or responses. These information products provide information that conforms to decision-making needs of managers and supervisors. Management information systems use simple routines like summaries and comparisons whichenabl managers to take decisions for which the procedure of reaching at a solution has been specified in advance. |Generally, the format of reports produced by MIS is pre-specified. A typical MIS report is a summary report, su Jas a report on the quarterly sales made by each sales representative of the organization, Another type jmanagement information system report is an; for example, exception report that specifies the exception conditio the sales made by some sales representative is far below than expected. Downloade 2 Prashant Raj Neupane (prashantarajS@gmal om)[Usually, management information systems are used to produce reports on monthly, quarterly, or yearly basi |However, if managers want to view the daily or hourly data, MIS enables them to do so. In addition, they provi [managers online access to the current performance as well as past records of the organization. [Decision Support Systems |A decision support system (DSS) is an interactive computer-based information system that, like MIS, also serv Jat the management level of an organization. However, in contrast to MIS, it processes information to supp {the fiecision making procesd of managers. It provides middle managers with the information that enables them Jmake intelligent decisions. A [decision support system] in a bank, for example, enable a manager to analyze t Ichanging trends in deposits and loans in order to ascertain the yearly targets. [Decision support systems are designed for every manager to execute a specific managerial task or proble1 |Generally, they help managers to make semi-structured decisions, the solution to which can be arrived at logicall |However, sometimes, they can also help in taking complex decisions. To support such decisions, they u jinformation generated by OASs and TPSs. [Decision support systems have more analytical power as compared to other information systems. They employ jwide variety of decision models to analyze data or summarize vast amount of data into a form (usually form tables or charts) that make the comparison and analysis of data easier for managers. ‘They provide interacti lenvironment so that the users could work with them directly, add or change data as per their requirements, and a Inew questions. [Executive Support Systems [An executive support system (ESS) — an extension of MIS — is a computer based information system that helps i [decision making at the top-level of an organization. The decisions taken with the help of executive support syste jare non-routine decisions that effect the entire organization and, thus, require judgement and sight. |As compared to DSSs, ESSs offer more general computing capabilities, better telecommunications and efficie Kisplay options. They use the advanced graphics software to display the critical information in the form of char} lor graphs that help senior executives to solve a wide range of problems. To make effective decisions, they u |summarized internal data from MIS and DSS as well as data from external sources about events like new tax law} Downloade by Prashant Ral Noupane(prashantarajS@gmal com)[new competitors, etc. They filter, compress, and track data of high importance and make it available to the strategi lievel managers. Executive support systems help to monitor performance, track activities of competitors, identify opportunities, an} forecast trends. They also assist senior managers in answering the following question: | What business should we do? |. How are our competitors doing the business? |: Which units can be sold and which new units are to be bought? Supporting Business Functions in an Enterprise with Information [The principal business functions in a business firm are: I. Marketing and sales 2. Production 3. Accounting and finance 4. Human resources Figure 12.1: Outlines a general view of information systems supporting a company's operations and management. Emphasize that management support systems (MRS), decision support systems (DSS), and lexecutive information systems (EIS), rest on the foundation of transaction processing systems (TPS) that suppor business operations. TPSs are the major source of data used by the higher-level systems to derive information, [Professional support systems (PSS) and office information systems (OIS), which support individual and group knowledge work, are also a part of this foundation. 2.2 Marketing Information Systems [Figure 12.2 & Figure 12.3] [Marketing activities are directed toward planning, promoting, and selling goods and services to satisfy the need Jof customers and the objectives of the organization. [Marketing information systems support decision making regarding the marketing mix. These include: i. Product Downloade 2 Prashant Raj Neupane (prashantarajS@gmal om)