1. Be able to understand the impact of management information on decision making Definitions of Management Information System: “The study of MIS is not about the use of computers, it is about the provision and use of information relevant to the user. Computers are one – albeit important – means of producing information and concentration on the means of production rather than the needs of the user can lead to expensive mistakes. ” (Lucey [1997] pg 195) A system to convert data from internal and external sources into information and to communicate that information, in an appropriate form, to managers at all levels in all functions to enable them to make timely and effective decisions for planning, directing and controlling the activities for which they are responsible. ” (Lucey [1997] pg 2). MIS is a planned system of collecting, processing, storing and disseminating data in the form of information needed to carry out the functions of management.
According to Phillip Kotler “A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. ” (Kotler, Phillip and Keller, Kevin Lane; Marketing Management, Pearson Education, 12 Ed, 2006) According to Philip Kotler “A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. ” About MIS:
MIS provides information to hold the “planning and control functions. ” Every business organisation needs MIS as the complexity in the change of the environment is taking place in day-to-day business environment. It should be developed as, it helps organisation, to do specific marketing, well defined production of specific products, with good financial back ground. It also aids in decision making. It is “formal system” that provides the management take decision on time with accurate information. The major impacts of the management system are elaborated below:
Facilitate Planning: It mends the quality of a product by providing accurate information to make sound a decision, as the complexity, the source of the information varies in period of time. It also encourages the manager who has loss the personal contacts with the” scene of operation”. Decreasing the over load: MIS summarises large amount of the data to avoid confusion when the information is over flooded. Simulate the decentralization: It regularly monitors the change of organisational plan and procedures by measuring performance and observing the operations.
Improves co-ordination: It initiate the decision making by enlighting each department about the problem and requirements of various departments which make the organisation to make collective decision. Controlling: It is the major link between planning and control, so as to evaluate and progress the performance, using computers helping “processing and storage” of the data with low cast. It mainly accumulates process, treasures and retrieves the data. This is evaluates and distributes the information. There are Five attributes’ which play a major role in MIS these mentioned below which s should be “useable”
Timeliness: The entity which is maintains MIS should accomplish in affording and categorizing the accurate and current information to relevant users. It should be designed in such manner that it would be accelerate the information, with in less period of time. It should accumulate the data, edit it and abstract it. The mistakes should be rectified by the adjusting. Relevance: Appropriate information should be given to the manager. Decision making would be useless is the information out dated, not relevant and gratuitous.
It mainly focuses on the information which is needed in particular way, to the particular person and to the relevant department. It directly gives the function and the performance of each employee regularly. Completeness: To take decision, the information provide should be complete accurate, in precised way. The over load that is which is flooded should be summarise so as to avoid confusion. Accuracy: A complete system of mechanised and standard control ought to endure the “information system processing” action. Information must be balanced and controlled and edited in regular intervals.
Proper audit functions externally and internally must be done so as to attain accuracy. Consistency: The data which is received should be arranged informally, consistensively. The wrong method of collecting data and reporting the data can affect the trend analysis as well as the information. Data collection methods and reporting change in regular intervals, so the entity must have proper method to evaluate the changes. The methods must be filed into form of document and well defined so as to communicate with proper person in aright time with highly effective counselling system.
The components of MIS are elucidated below: “Transaction processing monitor”: It also known as transaction processing system. It is destructive programme which monitor the programs related to the transaction. For example in airlines booking, if the seats are reserved should be blockage of that seat so as to avoid double booking, this also a type of transaction. It is mainly maintained for effective function, recovery process and to avoid failures. “Decision support systems”: There are particular class which aid the entity to take decision.
The decision can be made consider the raw data, the business and the documents. Which are designed in the by the DSS. The information is mainly accumulated by the comparison of sales, revenue, and inventory. “Knowledge work systems”: The major role of the component to generate to new knowledge as well as information to enhance the entity for proper usage of new information and knowledge for achieving goals, effective presentation and publishing of the programme. “Executive support system”: It mainly gets the data from DSS. It summarises the data in a useful manner for taking effective decision.
It is a “reporting tool”. Example are “staffing, billing, scheduling” in additional it would arrange the data with quick approach. Information system is defined by as “information system is the setoff inters related components that collect, process, store, and distribute information used by /support on ore more business process”. The preliminary purpose of the information system is To collect the data this is not in uniform way. The data may be collected, differentiated and stored. Then it is converted to information for the knowledge.
It mainly helps the decision making as well as to operate the business according to regular schedule to achieve strategic goals. Futures of MIS operation would be controlled; internal information is highlighted, summary of information and decision making. 2. Be able to understand the importance of information sharing within the organization Decision Making: It is the centre of MIS where the manager is highly engaged in taking decision. It is mainly categorised in three types. Strategic decision making: By taking some “objective, polices and resources” the decision is taken.
Here the main issue is to predict the feature of the entity and it s environment then the decision is taken according to the characteristics of the organization. It is majorly done by the managers who are in high level, they mainly deals with problems which are not routine and complex. Management control decision: It is mainly defines the efficiency of the operational units and utilization of resources’. It includes the interaction with the people initiating the task. It is carried out according to the board “Polices and Objectives” that are founded by the strategic planers.
Operational control decision: It involves the number of individuals and units in the entity that are carrying out the specific task. The use of resources and analysing the output. It is mainly evaluates the decision related to the operating controlled in this type of decision the entity would response according to the day-to-day business condition. It concentrates on the survival in the market environment. “Privacy Impact Assessment”: This involves the entity to analyse “the privacy task” in accumulate, utilization and sharing information. It involves why now where it is applied. Data protection Act” is primary principal that elaborates the situation of utilizing “sensitive personal and personal information” the seventh principle tell that “security measures” should be taken while, accumulating, storing, processing the information. Daniel (1957) “the idea of identifying critical success factor as a basis for determining the information needs manager was proposed”. In an entity some factors are play crucial role for success. Some of them are new product enhancement, better distribution and good advertisement, CSF indicate the areas which are critical and helps identifying the “corporate information” needs.
These are mentioned as “cost drives value drives”. It also mentioned the movement of the research and development like quality service and customer service. There recognised both internally and externally. CSF helps the firm to be competitive helps in achieving strategic goal, initiates the relation with other business activity and size of the investment. Security means protection of “information and its systems” from various aspects like misuses, disruption, destruction. The major goal is to protect the “CIA- confidentiality, integrity, availability” of the information.
Security has become the toper of the list information system is facing issues. The threats are Hacking, computer viruses, worms, malware which is fallowed by unauthorized asses that leads to vandalism. The security system increased as it is handled by the researchers’ like generating anti virus, firewalls and Trojans. Monitoring programs and maintain the polices helps in controlling the threats. The main characteristics of information security should be Confidentiality: only authorised people asses the information. Integrity: proper monitoring like stored, detection of the data should be maintained.
Authentication: it can be done by the individual who had claimed the information. “Knowledge Management” includes strategies in firm to generate, to distribute, identify and adopting of “insides and experiences”. It mainly aims individuals and the organization to reduce the work and on the time allotted for training given to the new employees and helps to adopt in the environment that is changing in the regular intervals. The primary strategy of the knowledge management include involvement of the knowledge is managed for achieving strategically goals.
It also assists the entity by motivating the individuals, by utilizing the knowledge to develop new products and services. It provides data, information to all the employees in a firm for effective decision making. It enhances the firm for collaboration of process by utilizing technology. It is predominant in small business to rise continuously. Security and Controls: “Security is to safe guard for the resources and activities” in developed countries the security system is widely. Electronic communication privacy act, the computer fraud and abuse act in 1986 helps in controlling the destroying of the data and trespassing.
Ethical Considerations: The association of information technology professionals (ATTP) considers ethical consideration which is the main responsibilities of information system professional. The professional, organization and entity should maintain the ethical responsibilities like obtaining the liability of the work, giving preference to integrity, raising the professional performance, advancement in privacy, health and welfare of the individuals. For decision making the ethical decision should be considered it mainly includes “business ethics”.
Stock Holder Theory: The responsibility of the organization is to use the profits and giving to them without any fraud and “violating the laws”. Social Contract Theory: In this organization should respect the ethics of the society and initiate the cooperation by making social contract. Technology Ethics: Information Consent: The people who are skilled in the technology should accept the risk. Justice: Burdens and Benefits should be distributed equally, and also the risk must be shared fairly, the people who do not get benefit they should not suffer high risk.
ISC are the devices and methods which guarantees the “accuracy, property and validity” of the information system activities. It is developed so as to check the “data entry, processing, storage and output” is accurate or not. It is designed so as to monitor and check the “quality and security” of the data and information security of the data can be done. Security Code: Accurate code must maintain so that the system is secured from hacking. Backup Files: This is mainly ensured in storing of files that are used in past.
These files are stored & kept them for the use that is managed. Security Monitors: It augments the unit of control, usage of “hardware, data & software”. It permits the authorised people only, by which destruction and fraud can controlled. Biometric Security: This is one of the advanced security system method in which the program is set in the way which allows only the authorised people, details like finger print, voice verification and retina scan. 3. Be able to use information to inform and support strategic decision making Strategic Information Management:
Myburgh (2002) described strategic management information as “Focuses on corporate strategy and direction. It emphasizes the quality of decision making and information needed to improve overall business performance”. It basically helps for organization in strategic planning and also fulfils the requirements of the organization’s entity. Strategic decision making process, involves in the finding of crisis & issues and analysis of the characteristics of issue. Structured Decision Making: In the structured decision making “data, process & evaluation” are 3 components that are enumerated generically.
Here the verdict is taken frequently according to the time, Hence it is a place for comparative firm that is “frame work encompassing both the decision and the individuals” who are making it. Profuse business make these “credit granting decision” that routine. Generally in this case most of the entities would be collect data for “credit granting decision”. The combined data is probably consistent. For example “the household debt” should be 25% lesser than the gross income. The decision could be judged in a structured way.
To make a structured decision computer programs can be developed so as to collect the data as well as to combine the data, hence gung extreme degree of entity to the process. As it as a routine and anticipated process hence there is no need of DSS for extravagant standard making. Alternatively there are number of automated tools by which considering the criteria they can take decision. Unstructured Decision Making: It is a strenuous process, where the firm or the individual generates alternative so that if one is not accessible the other would be in hand. The process complicated where the person do not known the path of solution.
The alternative is made so as to investigate the choice. It enhances the tumuli randomly by experimenting the choice. Which is a “Iterative naturalistic decision”. Some components are present as structured with slight variation. It is a dominant decision making where experts are present in the given field of domain. Different decision maker uses “data and processes” for conclusion. Then the decision is evaluated by the qualified and skilled people. These decisions are not made in regular intervals and made when the nature is not understood properly. Decision on new product can fit the type in either of the ways.
It primarily starts with the person who takes the decision. The decision makers are experts or the experienced people who are entrusted decisions; hence there is great value for “individual ability”. A program is constructed to accelerate the process that is used by a specific person, it is one of the approach. These are known as “Expert System”. It is not in the way the expert decision maker is compensated with system. But it indirectly supports as an alternative in decision making. The other approach is widely used by the decision maker so as to make quick review of the conclusion.
It is mainly done by “documentation and constant monitoring”. The major support of these type of decision is the experience which help in making decision and the individual approaches are allowed. Semi Structured Decision: It is the middle of both structured and unstructured; this is where true support system are enlighted. The “data, process and evaluation” are characterising in the process of agreement where the fewer use of structured decision making & more human judgement importance is given. The demand necessity is mainly data oriented. Dash Boards: It is “executive information system”.
Dash boards are in the organized layout. The product information is acquired through “local operating system”. Digital dash board “flows inherent” which are frequently checked. More of them prefers high level processing. The 3 digital dash boards are “desktop widgets”, “web browser” & “software application” itself. It primarily grades the function of unit like, human resource, customer relation, security, information technology, sales & operations. This dash board is like driven & IT division is a facilitator for the project of dash board which is mainly depends on “metrics”.
The advantages are, efficiency measurement, time, performance which is presented visually, new trends, identifies incorrect & negative trends. Competitive or Competitor Intelligence: Lindon and Lendrevie (1990) demonstrated competitive intelligence as “those activities by which a company determines and understand its competitors, determines and understands than strengths and weaknesses and anticipates their moves”. The first thing is to finding the consumer needs & after followed by “recognition of competitors”.
The final step is that analysing the company’s strengths & weaknesses. It mainly tells “market place” competitiveness, to under entity spirited competitors & environment. Generally these are the collections of data legally & analysing its vulnerability, intention & capability of competitor into their business line with the help of database & “open source” with decent enquiry. It primarily enhance the managers of industry of all dimension to build up decision by research & development and investigate long term plans for the business marketing.
This is continuous procedure where ethically & legally data is gathered and that helps for the good decision making. The 8 steps to start & complete competitive intelligence mission are– 1. Research of Competitor: This involves in establishing of analysing data & making decision about the product and are leading. 2. Research Competitor: Gathering different information, participation in sales and understanding of competition in high resolution. 3. Research the Competitive Environment: understand the threats & opportunities and analysing foreign business environment including regulations & laws. . Competitive Analysis: Qualitative & quantitative analysis is made between companies by data consideration, screening & processing the weakness & strengths of the both companies. 5. Plan Competitive Strategy: This is depends on qualified analysis of development of the strategic planning & marketing strategy according to research. 6. Organizational System: Establishment is made independently and this is lead by “leader of the enterprise”. 7. Computer System: MIS is depending on competitive intelligence.
Data gathering process transaction & delivery make CI data or information, warning & truly tracking. 8. Improvement System: The suggestion is taken by managing files like feedback; which suggests improvement for which enhancing the improvement of quality. 4. Be able to monitor and review management information Case study: Mark Goddard, IT Strategic Development Manager, (Tesco) “The creation of a centralized MIS solution based upon Business Objects and Teradata is enabling Tesco to create a single set of key business performance indicators across the UK and all international operations.
This consistency is crucial for Tesco and will enable meaningful international performance comparisons that will inform ongoing global expansion. ” The mixture of total web based business intelligence & Business Objects has close association with Teradata delivers speed, flexibility & functionality required to bring both ad hocreporting & standard in timely fashion to the Tesco users across the world,” says Goddard. Challenge: Tesco is one of top retailers in world. And it is widely spread over 13 countries with more than 326,000 people in 2,000 stores.
The main components of the internal strategies are persistence policies & processes. Basic logical global business technique is lots of “standard performance measures and operations”. Tesco decided to create single MIS answer for supporting both “group reporting requirements and local”. International business is extended by TESCO, importance to attain public of major concert across the world. In each international operation TESCO requires refined business alertness. Approach: The approach in IT expansion is main one of the key factors of “company’s international expansion”.
Then build up explanation & arrange the typical solution to all of the global operations, by following exact process, TESCO decided for the “centralize MIS” which is relocate for the extreme and advanced reporting to smaller tasks. It originates well-built reporting frame-work in between Ireland & UK by utilizing “Tera data, data warehouse & business object reporting tools”. The most important web based MIS solutions which are centralized can result in the solution which is cost effective. It was primarily started at South Korea where thirty hyper markets are located.
The data is send through “RMS operating system” to teradata by “wide area network” from UK. Then information is collected & leads into “data warehousing reporting form”. After South Korea will assessing to the web base which gives performance of other day. Results: It gives amount of wastage in stock, sales, the staff & customer satisfaction and the ability to track stock available; the provider’s performance is analyzed regularly. South Korea has succeeded in greater extent. It has enhanced its marketing strategy by checking performance of goods. “That is product category performance and format to store low cost ownership”.
