Management Information System Process and Systems

Management
Information
System
Dr Kshitija Gandhi

Retail Industry: Reliance
Mart
• Supply chain inventory
• Sales Data
System
• Reduce costs
• Improve customer satisfaction
• Maintain its competitive edge.
Benefits

Healthcare Industry: Electronic Health
Records (EHR)
• Information.
• To access patient histories, lab results, and
treatment plans in real time
System
• Reduce costs
• Improve customer satisfaction
• Maintain its competitive edge.
Benefits

Manufacturing Industry: Enterprise Resource Planning (ERP) at Toyota
System
• Business processes
• Streamline operations
Benefits
• Reduce waste
• Integrate Various activities
• Enhance productivity by providing real-time data
real-time data of inventory levels, production
production schedules, and financial
performance. data

Hospitality
Industry
Transportation
Industry
E-commerce Industry:
Amazon’s Recommendation
Engine

MIS
Management Information Systems
(MIS) is a field that combines
technology, people, and processes
to manage information in
organizations effectively.
It involves the study and use of
information systems to support
decision-making, coordination,
control, analysis, and
visualization in an organization.

Components of MIS
•Operates and control operations
•Enter, analyse and diagnose data
People
•Uses different procedures
•Effective information generation
Data Process
•In written format
•Appropriate way of communication
Data
Communication

Components of MIS
• Processed Data
• Recorded for future reference
Information
• Optimising output by connecting
various sub system
System
Planning
• Hardware: computer Equipment
• Software: programmes : invoice, wage
sheet
Hardware and
Software

Objectives
of MIS
Efficient
Planning and
controlling
Cost
Controlling
Strength of
Management
Comparison of
Performance
Production
statistics
System

Need of MIS
SUPPORT STRATEGIES FOR
COMPETITIVE ADVANTAGE
SUPPORT FOR BUSINESS
DECISION MAKING
SUPPORT FOR BUSINESS
PROCESS AND OPERATION

Features
Management Oriented
Management Directed
Integrated System
Common data Flow
Avoid Redundancy

Features
Flexibility
Common Data Base
Heavy Planning Elements
Computerization
Periodic Evaluation

Advantages
Generate Competitive Advantage
Implementation of Management by Objectives
Fast Reaction to Market Changes
Management Information System
Change in Industry Structure

Advantages
Change in Industry Structure
Functional Use
External and Internal Changes
Availability to Customer Data

MIS : Supply Chain Management
Supply chain management
meant managing movement and
storage of raw materials, work-
in-progress inventory, and
finished goods from point of
origin to point of consumption.
It involves managing the
network of interconnected
smaller business units, networks
of channels that take part in
producing a merchandise of a
service package required by the
end users or customers.

Definition of Supply Chain Management
• Design, planning, execution, control, and monitoring of supply chain
activities
• With the objective of creating net value,
• Building a competitive infrastructure
• Leveraging worldwide logistics
• Synchronizing supply with demand and measuring performance
globally.

Objectives of Supply Chain
Management
To decrease
inventory cost by
more accurately
predicting demand
and scheduling
production to
match it.
01
To reduce overall
production cost
by streamlining
production and by
improving
information flow.
02
To improve
customer
satisfaction.
03

SCM consists of
Operations management
Logistics
Procurement
Information technology
Integrated business operations

SCM Processes
Customer
Relationshi
p
Management
Customer
Service
Management
Demand
Management
Customer
Order
Fulfillment
Manufacturi
ng Flow
Management
Procurement
Management
Product
Development
and
Commercializat
ion
Returns
Management

Features
Tries to minimize the cost to the customer
Confirms the product as per customer requirement
Coordinating for procurement, distribution as
per customer requirement
Emphasizes on logistic management by providing
facilities to the suppliers, integration of
various components
Management of relationship with supplier and
customer. Coordination for best facilities to
the supplier and value less cost to the customer

Features
It is the management of network interconnected businesses involved in the
ultimate provision of products and services required by end customer.
Network includes material flow from supplier to main supplier
Transformation of material into semi finished and finished products
Distribution of products to their customers and their downstream customers
at all levels.

Models of Supply Chain
Management
Efficiency Supply
Chain Model
Efficiency
is
important
Cement,
Paper,
Commodity,
Fashion
Responsive Supply
Chain Model
On demand
situations
Level of
uncertainty
Custom order
products,
trendy
products

Efficiency
Supply chain
Model
• Continuous Flow Models
• Manufactures same products
with little fluctuations
• Most traditional supply
chain model
• Best suitable for matured
industries that operate
with a certain degree of
stability
• Stability in high demand
situations

The Fast Chain
Models
• Trendy products : Short life
cycle
• Flexible model
• Best suitable for fashion
industry
• Fast supply chain model
• Shortening time from idea to
marketing
• Highest forecast and assumption
accuracy
• End to end efficiency with
affordable cost

Efficient Chain
Model
• Used in highly competitive
market
• Pricing plays important
role
• Commoditized organizations
where production cycle and
competition are solely
based on prices
• Inventory management and
order fulfillment are
prime areas.
• Steel and cement Industry

Responsive
Supply Chain
Models
• Custom configured
Model
• Providing custom
configurations during
assembly and production
• High degree of correlation
between asset and total
cost
• Combination of agile model
and continuous flow model
• Combination model is used
: product is build before
configuration
• Agile model : downstream
processes

Agile
Model
Useful for businesses that deal in specialty
order items
Uses for made to order basis : manufactured
after receiving order
Best suited for industries that deal with
unpredictable demand and products that are made
at order
Need excess production capacity
Processes are designed for smallest batches of
products.
Focus on ability to fulfill demand on short
notice
Remain static in small demand

Flexible
Model
Freedom to meet high demand
peaks and mange long period
for low movement
Switched on and off easily
Suitable for industries
where extremely high demand
followed by low movement
Products associated with
holidays and seasonal
products
Every model must be
efficient and responsive to
deliver the best in
support, improve
productivity and meet
consumer demand.

Cost and Management System
(CMS)
It consists of set
of formal methods
developed for
planning and
controlling on
organization’s
costs.
CMS should meet
two types of
challenges
• Profitability in
short Term
• Maintaining a
competitive
position in long
term

(CMS)
In short Run: Focus will be on :
Organizational Efficiency
•: Special Costs ( Manufacturing, Service,
Marketing,
Administration)
Long term : Focus will be on objectives
•: Cost Categories ( Customers, Suppliers, Products,
Distribution Channels)

(CMS)
• To plan, prepare financial statement
• To assess individual product or service
profitability
• To measure period profitability
• To establish process for cost plus
contract
• To create basis for performance
• Provide information about Life Cycle
Performance
Develop accurate
Production and Cost
System
• Basis to relate costs incurred in one
stage of the cost and profitability of
other stages
Provide information
about Life Cycle
Performance

(CMS)
• Cost beneficial improvements in production
and processing system
Understand
process and
Activities
• Cost can be controlled by monitoring the
activities
• Cost driver is important
Control of cost
• Measure and evaluate information
• Not only human intervention
• Equipment performance
• Define strategies
Generate
Information

Key points in designing of CMS
Core Competencies
Organisational Culture
Mission

Points to be considered while designing CMS
Input data to be gathered and format of data
Integration of current system and its effectiveness
Appropriate current Charts
Significant issues not addressed by Current CMS
Integrate various parameters as to update existing system

ERP : Enterprise Resource
Planning
Process
Model
Logical
Model
Physical
Model

Process Model
In this model information system is depicted as a collection of processes
that are put together and occur in predetermined sequences to gather,
capture, format and present information.
Process is something that converts input into output
A Process insists the following
entities to function
Methods or Procedures
Trained operators
Knowledge of methods and Machinery
Materials
Machinery

Physical Model
Consists of sub systems
interact with each other and to produce information in
desired format.
Efficiency with each module will interact with others
will determine the effectiveness of MIS
Data
Capturing
Data
Processing
Data
Storage and
Retrieval
Modelling
Stimulation
Reporting
Control
Support
Design
Support

•Collect and capture data
•Vary basis of volume and
complexity of data
Data capturing
•Storage of data of previous
model
•Must be retrievable for
processing
Data Storage
•Responsible for storing of
data capturing into usable
information
•A variety of processes to be
used to combine data to
information
Data
Processing

•Converting output from data processing
module into meaningful information
•Vary basis of volume and complexity of data
Information Reporting
Data Processing
Information
Reporting
• Take decision based on
information presented
Decision Support Module

• Keep control over various aspects
• Based on feedback mechanism
• Updates about the happening in the
system and to make necessary changes
in the system.
Control Support
Module
•Future consequences
•Forecast opportunities
•Useful for the growth
Modelling and
simulation Model

MIS - System Development Life
Cycle
Planning and Requirement Analysis
Designing System Architecture
Building or Developing the System
Testing the System
Deployment of the System
System Evaluation and Maintenance

Planning and Requirement
Analysis
Planning : The project planning part involves the following steps −
Planning
Reviewing various project requests
Reviewing
Prioritizing the project requests
Prioritizing
Allocating the resources
Allocating
Identifying the project development team
Identifying

Requirement Analysis
The requirement analysis part involves understanding
the goals, processes and the constraints of the system
for which the information system is being designed.
Requirement analysis has the following sub-processes −
•Conducting preliminary investigation
•Performing detailed analysis activities
•Studying current system
•Determining user requirements
•Recommending a solution

Designing System Architecture
System design specifies how the system will accomplish this objective.
System design consists of both logical design and physical design
activity, which produces 'system specification' satisfying system
requirements developed in the system analysis stage.
In this stage, the following documents are prepared −
•Detailed specification
Hardware/software plan

It has the following stages −
Acquiring hardware and
software, if necessary
Database design
Developing system processes
Coding and testing each
module
The final report prior to implementation phase includes
procedural flowcharts, record layout, report layout and
plan for implementing the candidate system.

Information on personnel, money,
hardware, facility and their
estimated cost must also be
available. At this point
projected cost must be close to
actual cost of implementation.

Testing the System
System testing requires a test plan that
consists of several key activities and
steps for programs, strings, system, and
user acceptance testing.
The system performance criteria deals
with turnaround time, backup, file
protection and the human factors.

Testing the System
Testing process focuses on both
•The internal logic of the
system/software, ensuring that all
statements have been tested;
•The external functions, by conducting
tests to find errors and ensuring
that the defined input will actually
produce the required results.

Deployment of the System
At this stage, system is put
system is put into
production to be used by
used by the end users.
users.
Sometime, we put system
system into a Beta stage
stage where users'
feedback is received and
and based on the
feedback, the system is
is corrected or improved
improved before a final
final release or official
official release of the
the system.

System Evaluation and Maintenance
Maintenance is necessary
necessary to eliminate the
eliminate the errors in the
in the working system
system during its working
working life and to tune the
tune the system to any
any variation in its working
working environment.
Often small system
deficiencies are found, as
found, as system is
brought into operation and
operation and changes are
changes are made to
remove them.
System planner must
always plan for resources
resources availability to
availability to carry on
carry on these
maintenance functions
functions

Management Information System Process and Systems

More Related Content

Similar to Management Information System Process and Systems(20)

More from kpgandhi(20)

Recently uploaded(20)

Management Information System Process and Systems

Editor's Notes