Application of mis

APPLICATION OF
MANAGEMENT INFORMATION SYSTEM
Presented by:
Deepa Bhattarai
Msc ISE(II)

APPLICATION OF MIS
1. In Manufacturing sector
2. In Service Sector
3. In Decision Support System and
knowledge management
4. In monitoring organization
performance and information security
and control

1. IN MANUFACTURING SECTOR
Personal Management
Product Management
Financial Management
Material Management
Marketing Management

PERSONNEL MANAGEMENT
• It has a primary function of providing suitable
manpower in number and certain ability, skill and
knowledge, as the business organizations demands
from time to time
• Its goal is to control personnel cost through
continuous increase in manpower productivity by
resorting the following techniques:
 HRD through training and upgrading skills.
 Motivational through leadership and job
enrichment
 Promotion and reward through rewards and
appraisal
 Structuring the organization

INPUT TRANSACTION DOCUMENTS
 Personal application form
 Appointment letter
 Attendance and leave record
 Biodata
 Appraisal form
 Productivity data on jobs
 Wages/salary aggreement
 Record of complaints, grievance, accidents
 Industry data of wages, salary structure
 Industry data on manpower, skill, qualification

APPLICATIONS
Accounting
Query
Analysis
Control

FINANCIAL MANAGEMENT
 Its function has a primary objective of
meeting the financial needs of the business,
from time to time, by the way to provide
working capital and long-term capital to run
the business with the goal of containing the
cost of the capital at minimum
 Declaration of audit financial results, submit
all reports and returns to the government
and tax authorities

FM TOOLS
 Break-even analysis
 Cost analysis
 Cash flow projections
 Ratio analysis
 Capital budgeting and ROI analysis
 Financial modeling
 Management accounting
 Expense analysis, auditing and control

INPUT TRANSACTION DOCUMENTS
 Payments- to suppliers, authorities,
employees, shareholders, financial
institutions and others.
 Receipts- from customers, authorities,
employees, shareholders, financial
institutions and others.
 Data from stock exchange of the share
prices, consolidated financial results of the
other companies.

APPLICATIONS
 Accounting
 Query
 Decision analysis
 Control

PRODUCTION MANAGEMENT (PM)
 The Objective of PM function is, to provide
manufacturing services to the organization.
 This involves the manufacture of products of
a certain specified quality and within certain
costs in a stipulated time fulfilling the
promises given to the customer.
 The PM function is supported by other
functions, viz. Production Planning and
Control, Industrial Engineering,
Maintenance and Quality Control.

APPLICATIONS
 Performed through Production Planning and
Control
 Bill of material processing
 Drawing and Process Planning
 Scheduling and Monitoring systems as
support systems

MATERIALS MANAGEMENT
 To provide material for production,
maintenance and services at economical
prices, in an appropriate quantity and quality
with least stock outs and with no extra cost
of carrying the inventory.
 The scope of materials management
function is procurement, stocking control of
inventory.

APPLICATIONS
 Forecasting and planning
 Procurement
 Purchase ordering
 Goods receipt
 Issuing the material
 Processing of returns
 Bill passing and control

MARKETING MANAGEMENT
 It deals with satisfying the consumer. The
scope of function starts from identifying the
need of customer, evolving product concept,
designing the product, positioning the
product in market and selling in the
appropriate price.
 Activities-
 Market research
 Consumer survey
 Advertising
 Sales promotion campaign
 Stocking of products

2. IN SERVICE SECTOR
INTRODUCTION
Unlike the manufacturing sector, the
service sector does not have physical
goods to be manufactured for the
customer.
The data processing applications like
payroll, accounting and inventory are
required in the service industry too,
but they may not be all critical to the
service industry

INTRODUCTION
Service is essentially a process of human
interaction.
Any human interaction is knowledge
based, hence information based

INTRODUCTION
 Tom peters in ‘The service Edge’ states
five principles of a distinctive service.
1. Listen, understand, and Respond to the
customers.
2. Define a superior service and establish a
service strategy.
3. Set standards and measure and performance.
4. Select, train and empower the employees
to work for the customers.
5. Recognize and reward the accomplishments.

CREATING A DISTINCTIVE SERVICE
 Service VS product
SERVICE PRODUCT
Service is not tangible. Product is tangible(real or
Definite)
Services are offered on Demand Products are offered on
payment
Service cannot be Demonstrated Product can be demonstrated
To judge quality of service is
difficult due to its customers
response and behavior
It can be possible to judge
quality of product

 To summaries, the service conscious
management would create service focused
organization, where:
1. The organization listens, understands and
responds swiftly to the changing character of the
customer wants, needs and expectations.
2. The organization develops and maintains a
‘customer-friendly’ service delivery system.
3. Organization employs, inspires and develops a
customer-oriented frontline personnel.
 in sort, the service function essentially is a
human interaction between the service receiver
and the provider.

PURPOSE EXPECTATION PERCEPTION
Annual health
checkup
Quick service and total
coverage at single location
with proper guidance and
advise
Depends on
socioeconomic status.
Normal treatment Proper guidance and very
less waiting time
Less paper work and
infrequent visit
Emergency Immediate
attention,necessary
resources and services are
immediately available
Doctor’s choice and a
norm of immediate
attention
Hospitalization Clean and quiet
surrounding.pleasant,stay
and fast recovery
Service with smile

SERVICE CONCEPT
 Service is an identifiable, intangible activity
or a process designed to fulfill certain
expectations of the customer/consumer.
 Kotler defines it as ‘service is an activity or a
benefit that one part can offer to another
which is essentially intangible and does not
result in the ownership of anything
 To understand the service better, it is necessary
to understand its character or attributes as
below

SERVICE CONCEPT
Service character or attributes as below
 Intangibility
 All services are fully intangible i.e they lack
‘physical existence’. They can be seen being
delivered and being received by the customer but
cannot be displayed.
 For example, teacher teaches in the class with
textbook, notebook, chalk or transparencies are
the goods associated with ‘teaching’, a service
where customer is a student.

SERVICE CONCEPT
 Inseparability of Receiver & Provider
 In Service case, receiver and provider must be
present.
 Service process cannot be executed unless both
are present at the site of service delivery.
 Storage
 Service being intangible cannot be stored like
goods, which can be stored in the warehouse
and can be used at a later date.

SERVICE CONCEPT
 Inconsistency( not in agreement)
 The inconsistency occurs due to different service
providers performing at different times.
 Though service process is the same, service
experience varies from incident to incident.
 Every customer has different service expectations.
 For example, bank’s ATM service is consistent
and is also standard when compared with other
banks. However, a service is remembered by its
quality

SERVICE CONCEPT
 The quality of service has two dimensions, namely:
1. Quality of resources used: service inputs,
equipment's, facilities, tools, designs and so on.
2. Functional quality of the process : empathy,
level of responsiveness, and process design
quality
 Note: all services have two components, one
basic core and second its features.

SERVICE QUALITY MODEL
 Service
Quality
Customer
perceived
standard
Customer
expectations
Functional core
objective
component
Added features
component
servicing

APPLICATION OF MIS IN SERVICE SECTOR
 Airlines
 Hotel
 Hospital
 Banking
 Insurance
 Utilities
 Finance

 Hotel
1. Keep track of customer profile
2. Monitoring occupancy level
3. Project future needs
4. Monitoring the level of expectation
5. Monitoring the communication needs
6. Customer database
ILLUSTRATION

3. Decision Support System and
knowledge management

DSS
 Decision support system helps the
information system in the intelligence phase
where the objective is to identify the
problem and then go to design phase for
solution
 Helps in making decision and also in
performance evaluation
 Validate decision by performing sensitive
analysis on various parameters
 An application of Herbert Simon Model

TYPES OF DSS
Status inquiry systems
Data analysis system
Information analysis system
Accounting systems
Model based systems

TYPES OF DSS
System Input
source
System Hardware User
Inquiry Database
files
Query PC, server,
client
Clerks,
assistant
Data
analysis
Database
and files
Package of
DP system
Mainframe,
server ,PC
Operations
manager
Information
analysis
Processed
data files
Analysis
progarmme,
simple
model
Mainframe,
mini,super
mini,server,
client PCs
Middle level
manager
Accounting
ROI
Master files
& database
Transaction
processing
system
“ Middle and
Top manager
Model Inventory
database,
external
data
Developmen
t of OR or
business
model
“ “

KNOWLEDGE MANAGEMENT
Ability of people and organization to
understand and act effectively
Important term for knowledge
management is IC(intellectual capital)
Knowledge and IC is set made of
information, ability, experience and
wisdom

KM PROCESSES
 Define, capture, manipulate, store and develop
 Develop information system foe knowledge creation
 Design application for improving organization's
effectiveness
 Create knowledge set, i.e. IC to increase economic
value of the organization
 Keep IC continuously on upgrade to use it as
central resource
 Distribute and share to concerned

TOOLS FOR KM
Database management tools
Data warehousing, data mart, data
mining tools
Process modeling and management
tools
Work flow management tools
Search engine tool
Web based tools

4. MONITORING ORGANIZATIONAL
PERFORMANCE AND INFORMATION
SECURITY AND CONTROL

ORGANIZATIONAL PERFORMANCE
 What is Organizational performance?
• performance: the end result of an activity
• organizational performance: accumulated end
results of all the organization’s work processes
activities
 Why is measuring Organizational performance
important?
• Managers need to understand the factors that
contribute to high organizational performance
• Better asset management

ORGANIZATIONAL PERFORMANCE
 Why is measuring Organizational performance
important?(cont.)
• ability to provide customer value-must increased
monitor value obtained by customers.
customers will seek other sources of supply if value
is not obtained
• Impact on organizational reputation
• Improved measures of organizational knowledge

MEASURES OF ORGANIZATIONAL PERFORMANCE
 Organizational productivity
a measure of how efficiently employees do their
work
Productivity- overall output of goods or services
produced divided by inputs needed to generate the
output
Organizational effectiveness- measure of how
appropriate organizational goals are achieved.

TYPES OF PERFORMANCE CONTROL TOOLS
Financial
control
Informatio
n control
Benchmar
king
practices
Balanced
scorecard
approach
Performance
Control
tools

TOOLS FOR MONITORING PERFORMANCE
Financial controls
• Taken from organization’s main financial statements
• A number of financial rations used in organizations
Information control
• MIS used to provide management with needed
information on a regular basis
• Provide information, not merely data
• Organizes data in meaningful way
• Can access the information in a reasonable amount of
time

 Information controls(cont.)
 mangers need information about
• what is happening
• what is happening
• what are performance standards
• acceptable ranges of variation
• appropriate courses of action

Balanced scorecard approach
• performance measurement tool that
examines four areas
• determine whether goals in each area
are being met
• focus is still on areas that drive the
organization’s success

Benchmarking of best practices
• search for the best practices among other
organizations that lead to their superior
performance
• used to identify performance gaps and
potential areas of improvement
• look for internal best practices that can be
shared

INFORMATION SYSTEMS
SECURITY AND CONTROL

SYSTEM VULNERABILITY AND ABUSE
Advanced in telecommunication and
computer software
Unauthorized access, abuse, or fraud
Hackers
Denial of service attack
Computer virus

TELECOMMUNICATION NETWORK VULNERABILITY

SYSTEM VULNERABILITY AND ABUSE
Disaster
-destroys computer hardware, programs, data files
and their equipment
Security
-prevents unauthorized access, alteration, theft, or
physical damage
Errors
-cause computers to disrupt or destroy
organization’s record-keeping and operation
Bug
-program code defects or errors

CREATING A CONTROL ENVIRONMENT
Control
• methods, policies, and procedures
• ensures protection of organization’s assets
• ensures accuracy and reliability of records
General controls
• Establish framework for controlling design,
security, and use of computer programs
• Include software, hardware, computer
operations, data security, implementation and
administrative controls

CONT.
Application control
• unique to each computerized application
• include input, processing, and output
controls

PROTECTING THE DIGITAL FIRM
Online transaction processing: transactions
entered online are immediately processed by
computer
Fault- tolerant computer systems: contain extra
hardware, software, power supply component
High- availability computing: tools and
technologies enabling system to recover from a
crash
Disaster recovery plan: runs business in event of
computer outage

PROTECTING THE DIGITAL FIRM
Load balancing: distributes large number of requests
for access among multiple servers
Mirroring: duplicating all processes and transactions
of server on backup server to prevent any
interruption
Clustering: linking two computers together so that a
second computer can act as a backup to the
primary computer or speed up processing

INTERNET SECURITY CHALLENGES
Firewalls:
-prevent unauthorized users from accessing private
networks
-two types: proxies and stateful inspection
Intrusion detection system
-monitors vulnerable points in network to detect and
deter unauthorized intruders

SECURITY AND ELECTRONICS COMMERCE
Encryption: coding and scrambling of messages to
prevent their access without authorization
Authentication: ability of each party in a transaction
to ascertain identity of other party
Message integrity: ability to ascertain that
transmitted message has not been copied or
altered

SECURITY AND ELECTRONICS COMMERCE
Digital signature: digital code attached to
electronically transmitted message to uniquely
identify contents and sender
Digital certificate: attachment to electronic message
to verify the sender and to provide receiver with
means to encode reply
Secure electronic transaction(SET): standard for
securing credit card transactions over internet and
other networks

Application of mis

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Application of mis