Management information system with relevance to Nepal
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This document provides an overview of information systems and technology for managers. It discusses basic IT concepts, how IT affects business, management information systems (MIS), MIS subsystems, the role of MIS in decision making, and challenges of MIS. Key points covered include how IT can provide competitive advantages or disadvantages, the objectives and components of MIS, and how effective information and managerial literacy are important for implementing MIS strategies.
Management information system with relevance to Nepal
- 1. INFORMATION SYSTEM / TECHNOLOGY FOR MANAGERS Prepared By Darshan Bhattarai
- 2. ABSTRACTS Basic IT Information Technology How IT Effects business MIS Objectives of MIS MIS Sub-systems Organization System and MIS MIS and Decision Making Components of Decision Making and MIS MIS and its CHALLENGES
- 3. BEFORE WE BEGIN The mouse isn’t fragile Typing ability is helpful but not necessary for managerial works You cannot destroy your computer by pressing any KEYS!! Have patience, stroking multiple times won’t make your work faster. Virus doesn’t get in from dusts around you… They are software/programs… Following the right steps, even data deleted from your computers recycle bin can be brought back, but follow the measures. A Computer just follows your orders so be the master, don’t be the slave!!! Relax, enjoy and learn with no deadlines….. REMEMBER --- Inexperience is not an indication of you intelligence !!
- 4. INFORMATION TECHNOLOGY Information Technology involves the processing of information by a computer. Usually this means the use of hardware, software, services, and the supporting infrastructure to manage and deliver information. IT has changed our daily personal lives radically over recent years The use of mobile phones to make calls and send text messages, The use of social networking sites for community related services, The use of websites to book cheap flights and The use of ATM machines for banking are all an integral part our society today. Clearly the business environment has been hugely impacted by these developments and practically every company has had to adapt IT in some form in order to compete effectively and have comparative advantage. E-Business can be defined as the application of IT to business processes; i.e. the process of doing business with trading partners electronically. This includes, for example, processing business transactions electronically, integrating business processes electronically and transferring payments electronically and delivering services electronically
- 5. BASIC TERMINOLOGIES OF IT Hardware- Hardware can be defined as IT-related machinery and equipment. Software - Software can be defined as the set of instructions for the computer - it dictates what is to be done. Operating System - The Operating System (O/S) is the first program (set of instructions) to come to life when the computer is switched on. Networks - A network is a group or a number of people or things linked or connected together, either physically or by association. Email - Email allows you to send text messages across a network, either an internal network or an external one like the Internet. The Internet - The Internet is a computer network made up of thousands of networks worldwide. No one knows exactly how many computers are connected to the Internet. It is certain, however, that these number in the millions.
- 6. HOW IT EFFECTS BUSINESS IT can give your company a significant competitive advantage; the other side of this coin is that if you fail to embrace technology in your business, your competitors will get ahead. Moreover an eBusiness approach consolidates a company's position in the market, opening up new business opportunities and improving profit margins. Competitiveness: eBusiness offers a reliable, cost effective and involuntary means of doing business. Routine tasks can be automated and customers, if they wish, can avail of a 24-hour service. More players will enter the market as technology enables firms to penetrate overseas, this represents both an opportunity and a threat. New technologies can change the face of your business; look at the Irish airline industry and consider how the internet has changed the entire business model in this market.
- 7. HOW IT EFFECTS BUSINESS (CONTD..) Security: Information Technology can give companies a competitive advantage. However, this can mean that customers, suppliers, contractors, and business partners are routinely allowed access to critical business data and to the systems that process and store the information. Consequently, companies must have a security program. The three fundamentals of a security program are Confidentiality - only authorized parties can read the details of the transaction Integrity - unauthorized modifications of the transaction will be detected Availability - systems are reliable and recoverable There are many areas that a company may address as part of a security program and these include: Regular Backups and Recovery; Anti Virus Protection; Disaster Recovery; Audit Logs and Monitoring of unusual activity Authorized User Access utilizing password control.
- 8. HOW IT EFFECTS BUSINESS (CONTD..) Cost Benefits Lower transaction expenses are a reality and labor costs associated with administration can be slashed. Supply costs can be reduced. The extensive availability of Internet-based information means that companies have a wider choice of suppliers and by extension, there is more competitive pricing. Publication and distribution fees fall. Publishing a brochure online enables a vast number of people to access it, while also allowing the company to update the information on an ongoing basis. The role of the Middleman becomes less important as companies can sell direct to the customer. Marketing Websites help to build brand awareness offering new avenues of promotion. Customer loyalty deepens because web based purchasing affords customers the opportunity to communicate with the company. Conversely, a web site also allows the firm to offer better service to consumers.
- 9. MANAGEMENT INFORMATION SYSTEM MIS refers broadly to a computer-based system that provides managers with the tools for organizing, evaluating and efficiently running their departments. However MIS doesn’t Solely mean a computing System.
- 10. The three sub-components Management, Information and System - together bring out the focus clearly & effectively. System emphasizing a fair degree of integration and a holistic view; Information stressing on processed data in the context in which it is used by end users; Management focusing on the ultimate use of such information systems for managerial decision making. MANAGEMENT INFORMATION SYSTEM
- 11. OBJECTIVES OF MIS Facilitate the decision-making process Collects information in a systematic and a routine manner. Provide requisite information at each level of management to carry out their functions. Highlighting the critical factors to be closely monitored Provide a system of people, procedures, query facilities for collecting, storing, retrieving and transmitting information.
- 13. MANAGEMENT INFORMATION SYSTEM MIS Subsystems STRATEGIC PLANNING MANAGEMENT CONTROL OPERATIONAL CONTROL TRANSACTION PROCESSING PRODUCTION MARKETING LOGISTICS PERSONNEL FINANCE INFORMATION PROCESSING TOP MANAGEMENT ACTIVITI ES
- 14. MAJOR FUNCTIONAL SUBSYSTEM USES Marketing Information System Sales forecasting, Sales planning, Sales analysis Manufacturing Information System Production planning & scheduling, cost control analysis Personnel Information System Salary Admin, Planning HR requirement, performance analysis Accounting Information System Financial Analysis, cost analysis, Capital planning, etc. Logistics Information System Planning & control of Purchasing, inventories, distribution. Information Processing System Planning of Information System, cost – effectiveness analysis Top Management System Strategic Planning, resource allocation
- 15. STEPS FOR DESIGNING MIS
- 17. MIS AND DECISION MAKING Decision making is an integral part of the functioning of any organization. To facilitate decision making in this ever-competitive world it is imperative that managers have the right information at the right time to bridge the gap between need and expectation. To facilitate better flow of information adequate Management Information Systems (MIS) is the need of the hour. Thus it is important to have an understanding of the MIS followed in an organization by all levels of management in order to take effective decisions.
- 18. Management information systems give decision- makers the data they need to fulfill their responsibilities. Such systems provide background, current data and trend analysis so the manager has data available on all aspects of the business. Managers using management information systems can improve business performance since they have detailed information on their business environment and their decisions reflect the company position in the marketplace. MIS AND DECISION MAKING
- 19. COMPONENTS OF DECISION MAKING Data Managers have to be informed about their business in general and about their area of responsibility in particular. Management information systems give the manager access to key data about his department and about the company in general. If the manager needs reference information for a bid or for regulatory purposes, management information systems are a good source. Decisions Decisions are only as valid as the information on which they are based. Management information systems improve manager decision-making, because they provide information that is accurate, timely, relevant and complete. Self-checking and cross- checking features in management information systems reduce errors, and IT professionals design the systems to offer a complete picture of a situation or highlight that specific information is missing. Companies that use management information systems ensure that all managers work from the same set of data and make their decisions based on identical information.
- 20. Trends A key part of management's responsibilities is preparing forecasts for strategic planning and budgets. A manager can look for trends by asking the systems to project past performance patterns into the future. MIS have sophisticated mathematical analysis tools that can evaluate relationships and calculate probable future trends. Scenarios Management information systems can evaluate different possibilities and let managers examine scenarios. What-if scenarios are a powerful tool that helps managers decide on the best strategy for the company. Management information systems calculate what happens based on their collection of data on how the company operations performed in the past. Managers can with this knowledge they can develop the optimal strategy for the company. COMPONENTS OF DECISION MAKING IN MIS
- 21. MIS AND ITS CHALLENGES (TECHNICALLY) Some of the distinguishing challenges that the people face while planning, using or approving management information systems are: MIS requires a wide variety of knowledge areas including accounting, finance, marketing and manufacturing. Therefore having both technical and practical experience in these subjects is very useful. Both technology and technology-related products are emerging at very high pace. Consequently no one can possibly be proficient in all new technologies and therefore compromises has to be made. MIS problems are difficult to define. Some times a situation may be seen as a problem but in fact it may be just a cause of a problem. There is a lack of sympathetic relationship between MIS personnel and users and management and MIS personnel because employees are more loyal to their profession rather than needs of the organizations.
- 22. MANAGERIAL LITERACY Though technology receives most of the credit, managers play an intricate role when dealing with MIS. Managerial literacy in both technology and information determine how effective strategies will be when implemented. A technology-literate manager will know how and when to apply technology, meaning that she will know what to purchase to execute certain processes and the most appropriate time to make the purchase. An information-literate manager is able to define what information is needed and how to access it, can convert it from information to business intelligence, and can make the best decision based on the information.
- 23. INFORMATION MANAGEMENT STRATEGIES Promoting the understanding of information importance in the organization Improving the organization of existing information “Informatization” of the process Information support to human activity Language development (taxonomies and coding systems) Using meta-information Use of templates and patterns Creation of information model System development Process improvement through IT Information design Optimal mix of information channels Standardization and simplification Intelligent use of Low Technology