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Waterfall Model

By Dinesh Thakur

The model states that the phases are organized in a Linear Order.  In other words, the output of one phase becomes the input for the next phase. Various phases have already been explained under a general model of system development. The different phases of the waterfall model are:

    Proposal Definition
    Feasibility Study
    Requirement Analysis
    System Design
    Coding & Testing
    Implementation
    System Maintenance
Limitations of the Waterfall Model.  1. The waterfall model assumes that the requirements of a system can be frozen (i.e. baseline) before the design begins. This is possible for systems designed to automate an existing manual system. But for new systems, determining the requirements is difficult, as the user does not even know the requirements. Hence, having unchanging requirements is unrealistic for such projects.

2. Freezing the requirements usually requires choosing the hardware (because it forms a part of the requirements specification). A large project might take a few years to complete. If the hardware is selected early, it is likely that the final software will use a hardware technology on the verge of becoming obsolete. It is a document driven process that requires formal documents at the end of each phase.

3. This model stresses that the requirements should be completely specified before the beginning of the next phase. But it is not possible in all the systems.




Different Approaches to Development of MIS

By Dinesh Thakur

There are two basic approaches for development of MIS :

a) System development life cycle : The system development life cycle have following steps of development :

i) Systems Planning

ii) Systems Analysis

iii) Systems Design

iv) Systems Implementation

v) Systems Operation and Support (System Maintenance)

b) Prototyping : Prototyping is the process of creating an incomplete model of the future full-featured system, which can be used to let the users have a first idea of the completed program or allow the clients to evaluate the program.

Advantages :

i) The designer and implementer can obtain feedback from the users early in the project development.

ii) The client and the contractor can compare that the developing system matches with the system specification, according to which the system is built.

iii) It also gives the engineer some idea about the accuracy of initial project estimates and whether the deadlines can be successfully met.

The process of prototyping involves the following steps :

i) Identify basic requirements.

ii) Develop initial prototype.

iii) Review : The customers, including end-users, examine the prototype and provide feedback for additions or changes.

iv) Revise and Enhance the Prototype : Using the feedback both the specifications and the prototype can be improved. If changes are introduced then a repetition of steps 3 and 4 may be needed.

Types of prototyping : System prototyping are of various kinds. However, all the methods are in some way based on two major types of prototyping :

Throwaway Prototyping : Throwaway or Rapid Prototyping refers to the creation of a model that will eventually be discarded rather than becoming part of the finally delivered system. After preliminary requirements gathering is accomplished, a simple working model of the system is constructed to visually show the users what their requirements may look like when they are implemented into a finished system. The most obvious reason for using Throwaway Prototyping is that it can be done quickly.

Evolutionary Prototyping : Evolutionary Prototyping (also known as Breadboard Prototyping) is quite different from Throwaway Prototyping. The main goal when using

Evolutionary Prototyping is to build a very good prototype in a structured manner so that we can refine it or make further changes to it. The reason for this is that the Evolutionary prototype, when built, forms the heart of the new system, and the improvements and further requirements will be built on to it. It is not discarded or removed like the Throwaway Prototype. When developing a system using Evolutionary Prototyping, the system is continually refined and rebuilt.

Incremental Prototyping : The final product is built as separate prototypes. At the end the separate prototypes are merged in an overall design.

Advantages of Prototyping :

i) Reduced Time and Costs : Prototyping can improve the quality of requirements and specifications provided to developers. Early determination of what the user really wants can result in faster and less expensive software.

ii) Improved and Increased User Involvement : Prototyping requires user involvement and allows them to see and interact with a prototype; allowing them to provide better and more complete feedback and specifications. Since users know the problem better than anyone, the final product is more likely to satisfy the users desire for look, feel and performance.

Disadvantages of Prototyping :

i) Insufficient Analysis : Since a model has to be created, developers will not properly analyse the complete project. This may lead to a poor prototype and a final project that will not satisfy the users.

ii) User Confusion of Prototype and Finished System : Users can begin to think that a prototype, intended to be thrown away, is actually a final system that merely needs to be finished or polished. Users can also become attached to features that were included in a prototype for consideration and then removed from the specification for a final system.

iii) Excessive Development Time of the Prototype : A key property to prototyping is the fact that it is supposed to be done quickly. If the developers forget about this fact, they will develop a prototype that is too complex.

iv) Expense of Implementing Prototyping : The start up costs for building a development team focused on prototyping may be high. Many companies have to train the team for this purpose which needs extra expenses.

 

Stages of Development of MIS

By Dinesh Thakur

In order to develop a system successfully, it is managed by breaking the total development process into smaller basic activities or phases. Any system development process, in general, is understood to have the following phases 

 i) Systems Planning

ii) Systems Analysis

iii) Systems Design

iv) Systems Implementation

v) Systems Operation and Support

 

Black Box system

By Dinesh Thakur

The transformation process in certain sub-system, especially at the lowest level may not be defined. However, the inputs and outputs are known. Such a sub-system, whose processes are not defined, is called a black box system.

 

    Black Box 

 

Different Dimensions of Information

By Dinesh Thakur

Information may be understood to have various dimensions. However, for our purpose, the following dimension of information will be of interest.

i)                    Economic dimension,

ii)                   Business dimension, and

iii)                 Technical dimension.

Economic Dimension

This dimension of information refers to the cost of information and its benefits.

Cost of information

It may include

 

i)                   Cost of acquiring data,

ii)                  Cost of maintaining data,

iii)                 Cost of generating information, and

iv)                 Cost of communicating information.

 

The cost is related to the response time required to generate information and communicate it. For systems with low response time, cost is high.
Value of information

Before a particular piece of information is acquired, decision-makers must know its value. In decision theory, the value of information is the value of the change in decision behavior because of the information. The change in the behavior due to new information is measured to determine the benefits from its use. To arrive at the value of new information, the cost incurred to get this information is deducted from the benefits.

Business Dimension

This dimension relates to the business angle of information. Its value to the organization, sustainability of getting the information from a managerial standpoint, accuracy and reliability of the information, scope and appropriateness of the information are the parameters for understanding the business dimension of the information. This dimension has got more to do with the ‘what’ of the information rather than the ‘how’. Business dimension of information can have the following parameters:

  1. Time dimension – information has to be timely to be of any value. The basic utility of information within an organization is in decision-making. If the information is not timely then the decisions derived out of it will have poor quality. Hence, time is an important dimension of information.
  2. Accuracy dimension – information has to be accurate to satisfy the user. Again this is an important dimension as inaccurate information leads to bad decision-making.
  3. Reliability dimension – information has to be reliable so that users have confidence.
  4. Appropriateness dimension – information must be relevant to the receiver. It must be appropriate to his needs.
  5. Scope dimension – information should be within the scope.
  6. Completeness of content dimension – information should be complete and not in bits and pieces.

Technical Dimension

The technical dimension relates to the information gathering, summarizing, storing and retrieval, analysis and cost aspects of information. It can have the following parameters:

1. Information gathering – the means of capturing the data and storing it

2. Analysis methodology – the data processing methodology

  • Costs of information –
  1. Cost of data acquisition – the cost of data acquisition from the point of view of time and resource (technical) costs. A piece of data is supposed to be costly to acquire if say, it is recovered from a secondary source after processing it for a long time. On the other hand the cost of acquisition of data is low for such cases when (say), the customer is himself putting such data into the system (like in the case of ATMs or online banking, the systems cost of acquiring data is very low is such cases)
  2. Cost of data maintenance – is the cost of maintaining the data in terms of technical costs of space and efforts (technical) in maintaining it. A data source that requires a lot of technical efforts like indexing, etc., and requires huge storage (for say storing images, etc.), is said to be more costly.
  3. Cost of data access – is the cost in terms of resource requirements (both processing and network) for accessing the data. Data that can be accessed after utilizing a lot of CPU and network resources is said to be costly to access.

Technological Issues

  Networking and communication – relates to transmission of data in a network

 

  •       1. Methodology – the methodology of networking and communication.
  •       2. Protocol – the rules and procedures followed in the transmission of data in the network.
  •       3. Topology – the layout of the network.

Data Management 

Data management and maintenance – the means by which data is stored and maintained (in a database).

 Visualization and reporting – the manner in which data information is presented.

The above dimensions of information are to be kept in mind while designing systems for managers. Lack of attention to detail in any dimension of information may result in huge problems at a later date.

 




Differentiate between Open and Closed Systems

By Dinesh Thakur

An open system is one that interacts with its environment and thus exchanges information, material, or energy with the environment, including random and undefined inputs. Open systems are adaptive in nature as they tend to react with the environment in such a way organizing’, in the sense that they change their continued existence.

Such systems are ‘self organizing’, because they change their organization in response to changing conditions. A closed system is one, which doesn’t interact with its environment. Such systems, in business world, are rare. Thus the systems that are relatively isolated from the environment but not completely closed are termed closed systems.


Differentiate between Deterministic and Probabilistic Systems

By Dinesh Thakur

A deterministic system is one in which the occurrence of all events is known with certainty. If the description of the system state at a particular point of time of its operation is given, the next state can be perfectly predicted.

A probabilistic system is one in which the occurrence of events cannot be perfectly predicted. Though the behavior of such a system can be described in terms of probability, a certain degree of error is always attached to the prediction of the behavior of the system.

Discuss the Different Types of System

By Dinesh Thakur

Types of System : Physical or Abstract : Physical system is tangible entities that may be static or dynamic in nature. Abstract system is conceptual or non-physical. The abstract is conceptualization of physical situations.

Open and Closed : An open system continually interacts with its environment. It receives input from the outside and delivers output to outside. A closed system is isolated from environment influences.

Sub System and Super System : Each system is part of a large system. The business firm is viewed as the system or total system when focus is on production, distribution of goal and sources of profit and income.

The total system consists of all the objects, attributes and relationship necessary to accomplish an objective given a number of constraints. Sub systems are the smaller systems within a system. Super system denotes extremely large and complex system

Permanent and Temporary System : A permanent system is a system enduring for a time span that is long relative to the operation of human. Temporary system is one having a short time span.

Natural and Man Made System : System which is made by man is called man made system. Systems which are in the environment made by nature are called natural system.

Deterministic and Probabilistic : A Deterministic system is one in which the occurrence of all events is perfectly predictable. If we get the description of the system state at a particular time, the next state can be easily predicted. Probabilistic system is one in which the occurrence of events cannot be perfectly predicted.

Man-made Information System : It is generally believed that the information reduces uncertainty about a state or event. An information system is the basis for interaction between the user and the analyst. It determines the nature of relationship among decision makers.

An information system may be defined as a set of devices, procedures and operating system designed around user-base criteria to produce information and communicating it to the user for planning control and performance.

 

Different Types of Decisions

By Dinesh Thakur

Organizational decisions differ in a number of ways. The following basis are used to classify the decisions:

Purpose of Decision-making

On the basis of the purpose of decision-making activities, the organizational decisions are divided into 3 categories:

Strategic Planning Decisions: Strategic planning decisions are those decisions in which the decision-maker develops objectives and allocates resources to achieve these objectives. Such decisions are taken by strategic planning level (top level) managers.

Management Control Decisions: Management control decisions are taken by management control level (middle level) managers and deal with the use of resources in the organization.

Operational Control Decisions: Operational control decisions deal with the day-to-day problems that affect the operation of the organization. These decisions are taken by the managers at operational level (bottom level) of the organization.

Levels of Programmability

Simon on the basis of level of the programmability of a decision, proposed two types of decisions:

Programmed, also known as structured decisions
Non-programmed, also known as unstructured decisions.

Programmed/Structured Decisions

Programmed or structured are those decisions, which are well defined and some specified procedure or some decision rule might be applied to reach a decision. Such decisions are routine and repetitive and require little time for developing alternatives in the design phase. Programmed or structured decisions have traditionally been made through habit, by operating procedures or with other accepted tools.

Non-programmed /Unstructured Decision

Decisions, which are not well defined and have not pre-specified procedures decision rule are known as unstructured or non-programmed decisions.

Knowledge of Outcomes

Another approach of classifying decisions is the level of knowledge of outcomes. An outcome defines what will happen, if a decision is made or course of action taken. When there is more than one alternative, the knowledge of outcome becomes important. On the basis of the level of knowledge of outcomes, decision-making can be classified into three categories.

  1. Decision under certainty: Decision-making under certainty takes place when the outcome of each alternative is fully known. There is only one outcome for each alternative.
  2. Decision under risk: Decision-making under risk occurs when there is a possibility of multiple outcomes of each alternative and a probability of occurrence can be attached to each outcome.
  3. Decision under uncertainty: Decision-making under uncertainty takes place when there are a number of outcomes for each alternative & the probabilities of their occurrences are not known.

Simon’s Model of Decision-Making

By Dinesh Thakur

Herbert Simon made key contributions to enhance our understanding of the decision-making process. In fact, he pioneered the field of decision support systems. According to (Simon 1960) and his later work with (Newell 1972), decision-making is a process with distinct stages. He suggested for the first time the decision-making model of human beings. His model of decision-making has three stages:

• Intelligence which deals with the problem identification and the data collection on the problem.
• Design which deals with the generation of alternative solutions to the problem at hand.
• Choice which is selecting the ‘best’ solution from amongst the alternative solutions using some criterion. 

The figure given below depicts Simon’s decision-making model clearly.

                                     Human Decision-making Process

Intelligence Phase

This is the first step towards the decision-making process. In this step the decision-maker identifies/detects the problem or opportunity. A problem in the managerial context is detecting anything that is not according to the plan, rule or standard. An example of problem is the detection of sudden very high attrition for the present month by a HR manager among workers. Opportunity seeking on the other hand is the identification of a promising circumstance that might lead to better results. An example of identification of opportunity is-a marketing manager gets to know that two of his competitors will shut down operations (demand being constant) for some reason in the next three months, this means that he will be able to sell more in the market.

Thus, we see that either in the case of a problem or for the purpose of opportunity seeking the decision-making process is initiated and the first stage is the clear understanding of the stimulus that triggers this process. So if a problem/opportunity triggers this process then the first stage deals with the complete understanding of the problem/opportunity. Intelligence phase of decision-making process involves:
Problem Searching: For searching the problem, the reality or actual is compared to some standards. Differences are measured & the differences are evaluated to determine whether there is any problem or not.
Problem Formulation: When the problem is identified, there is always a risk of solving the wrong problem. In problem formulation, establishing relations with some problem solved earlier or an analogy proves quite useful.

Design Phase

Design is the process of designing solution outlines for the problem. Alternative solutions are designed to solve the same problem. Each alternative solution is evaluated after gathering data about the solution. The evaluation is done on the basic of criteria to identify the positive and negative aspects of each solution. Quantitative tools and models are used to arrive at these solutions. At this stage the solutions are only outlines of actual solutions and are meant for analysis of their suitability alone. A lot of creativity and innovation is required to design solutions.

Choice Phase

It is the stage in which the possible solutions are compared against one another to find out the most suitable solution. The ‘best’ solution may be identified using quantitative tools like decision tree analysis or qualitative tools like the six thinking hats technique, force field analysis, etc.

This is not as easy as it sounds because each solution presents a scenario and the problem itself may have multiple objectives making the choice process a very difficult one. Also uncertainty about the outcomes and scenarios make the choice of a single solution difficult.

 

What do you understand by Decision Making? Discuss the nature and characteristics of Decision

By Dinesh Thakur

The word “decision “is derived from the Latin word “decido”. Which means “A decision, therefore is

  • A Settlement
  • A fixed intuition to bringing to a conclusive result
  • A judgment
  • A resolution

Decision : A decision is the choice out of several options made by the decision maker to achieve some objective in a given situation.

Business Decision : Business decisions are those which are made in the process of conducting business to achieve its objective in a given situation.

Characteristic of Business Decision Making :

a) Sequential in nature.

b) Exceedingly complex due to risk and trade off.

c) Influenced by personal values.

d) Made in institutional setting and business environment.

Rational Decision Making : A rational decision is the one which, effectively and efficiently, ensure the achievement of the goal for which the decision is made .In reality there is no right or wrong decision but a rational decision or irrational decision which depends on situation.

Type of Rationality :

Objectively : Maximum the value of the objectives.

Subjective : If it is minimize the attainment of value in relation to the knowledge and awareness of subject.

Consciously : Extent the process of the decision making is a conscious one

Organizationally : degree of the orientation towards the organization.

Personal: Rational to the extent is achieve’s an individual’s personal reason (goals).

Type of Decision Making System : There are two types of decision making system on the basis of knowledge about the environment.

 

(i) Closed : If the manager operates in a known environment then it is called closed decision making system.

Conditions :

a) Manager knows the set of decision alternative and know their outcome in term of values.

b) Manager has a model, by which decision alternatives can be generated, tested and ranked.

c) The manager can choose one of them, based on some goal or objective.

(ii) Open : If the manager operates in unknown environment then it is called open decision making.

Conditions :

a) Manager does not know all alternatives.

b) Outcome is not known.

c) No methods or models are used.

d) Decide objective or goal; select one where his aspirates or desire are met best.

Types of Decision : Types of decision are based on the degree of knowledge about the out come of the events which are yet to take place.

Certainty : If the manager has full knowledge of event or outcome then it is a situation of certainty.

Risk : If the manager has partial knowledge or probabilistic knowledge then it is decision under risk.

Uncertainty : If the manager does not have any knowledge, it is decision making under uncertainty MIS converts the uncertainty to risk and risk to certainty. The decision at the low level management is certain, at middle level of the management the decision is under risk and at the top level management the decision is in under uncertain.

Nature of decision : Decision making is a complex task. To resolve the complexity the nature of decision are of two types :

Programmed and Non-Programmed Decision :

a) If a decision can be based on a rule, methods or even guidelines, it is called the programmed decision.

b) A decision which can not be made by using a rule or model is the non-programmed decision.




Different Types of Systems

By Dinesh Thakur

Different kinds of system may be understood as

Abstract and physical systems

An abstract or conceptual system is an orderly arrangement of interdependent ideas or constructs, which may or may not have any counterpart in the real world.

On the other hand, physical systems are generally concrete operational systems made up of people, materials, machines, energy and other physical things; Physical systems are more than conceptual constructs.

Deterministic and Probabilistic Systems

A deterministic system is one in which the occurrence of all events is known with certainty. A probabilistic system is one in which the occurrence of events cannot be perfectly predicted. Though the behavior of such a system can be described in terms of probability, a certain degree of error is always attached to the prediction of the behavior of the system.

Open and Closed Systems

An open system is one that interacts with its environment and thus exchanges information, material, or energy with the environment, including random and undefined inputs. Open systems are adaptive in nature, as they tend to react with the environment in such a way, so as to favor their continued existence. Such systems are ‘self organizing’, in the sense that they change their organisation in response to changing conditions.

A closed system is one, which does not interact with its environment. Such systems in business world, are rare, but relatively closed systems are common. Thus, the systems that are relatively isolated from the environment but not completely closed, are termed closed system.

User Machine Systems

Most of the physical systems are user-machine (or human –machines) systems It is difficult to think of a system composed only of people who do not utilize equipment of some kind to achieve their goals. In user-machine systems, both, i.e. human as well as machine perform some activities in the accomplishment of a goal (e.g. decision-making). The machine elements (may be computer hardware and software) are relatively closed and deterministic, whereas the human elements of the system are open and probabilistic.

Business Expert Systems

By Dinesh Thakur

A Business Expert System (BES) is a knowledge based information system, which is based on artificial intelligence. A Knowledge Based information system adds a knowledge base that uses its knowledge about a specific, complex application area to act as an expert. 

Also, BES provides decision support to managers in the form of advice from an expert in a specific problem area such as medical, engineering and business. BES is interactive in nature and it is able to answer the questions asked by a user. For answering the questions, an expert system searches its knowledge base for facts and rules and explains its reasoning process and results in the expert advice to the end user. The main components of BES are:

1)      Knowledge base                 

2)      Inference engine                 

3)      User interface


Components of BES

 

Knowledge base contains the facts about the specific expert area and heuristics that describe the reasoning procedures of an expert on the subject.

The inference engine contains the logic of reaching an inference from the stored data and from the knowledge base.

Expert systems may be developed by using either the programming language like LISP, PROLOG or C or by using the expert system packages. Using the expert system packages, one can design an expert system that combines the features of DSS and expert systems. This integration makes the application development process easier and faster for the end users.




Decision Support System

By Dinesh Thakur

 DSS is an information system application that helps in decision-making. DSS is used in planning and analyzing alternatives. DSS differs from most traditional information system in that each DSS is distinct from the other information system and is specifically made for managers.

All though it is used by managers it is part of organization’s MIS. A DSS is prepared for a specific managerial task and special problem and thus its use is limited to that problem. Decision support systems tend to be designed to serve management control level and strategic planning level managers.

The elements of DSS include a database, a model base and a software providing interactive dialogue facility for a manager. The data in the database is a combination of master files, and data from external sources. The second component of DSS is a library of models to manipulate and analyze the data in the desired ways.

The third component is the user interface through this the user can communicate with the DSS. The physical interface generally consists of a terminal attach to the mainframe computer either directly or by telephone. DSS can be differentiated from MIS in terms of its processing capabilities. whereas MIS process data to convert it into information, DSS  processes information.

                                               Element of DSS

 

to support the decision making process of a manager. e.g. a salary information system provides information to every employee regarding his basic salary, allowances and deductions. However if any employee wants to make deposits in some schemes for income tax rebates he can make use of DSS. DSS helps the user to decide in which scheme how much he should invest to get maximum benefits.




ESS – What is ESS?

By Dinesh Thakur

Executive Support System (ESS) is an extension of the management information system, which is a special kind of DSS; An ESS is specially developed for the use of chief executive of an organization to support his decision-making.

 It involves various types of decision-making systems but it is more specific and person oriented. It is designed to cater to the information needs of the chief executive.

 

 

Office Automation systems have gained a greater importance in recent years. Justify the statement and identify different types of OAS.

By Dinesh Thakur

Office automation refers to the application of computer and communication technology to office functions. Office automation systems are meant to improve the productivity of managers at various levels of management by providing secretarial assistance and better communication facilities.

Office automation system is the combination of hardware, software and people in information system that process office transactions and support office activities at all levels of the organization. These systems include a wide range of support facilities, which include word processing, electronic filing, electronic mail, message switching, data storage, data and voice communications, etc.

Office activities may be grouped under two classes, namely.

1) Activities performed by clerical personnel (clerks, secretaries, typists, etc) and

2) Activites performed by the executives (manages, engineers or other professionals like economists, researchers etc.)

In the first category, the following is a list of activities

a)      Typing

b)      Mailing

c)      Scheduling of meetings and conferences,

d)      Calendar keeping and

e)      Retrieving documents

 

The following is a list of activities in the second category (managerial category)

a)      Conferencing

b)      Production of information (messages, memos, reports, etc) and

c)      Controlling performance

 

As already discussed, information technology facilitates both types of activities. A wide variety of office automation devices like fax machine, copier, phones etc. are used in officer.

Some of the applications of office automation systems are discussed, in brief.  

 
WORD PROCESSING

 

This refers to the computer –assisted preparation of documents (like letters, reports, memos, etc) from textual data. Data once entered can be manipulated in various ways.

 
ELECTRONIC FILING

 

This facilitates the filling of incoming and outgoing mail/documents on a magnetic media. Information is captured from the documents and is stored for future reference.

 
ELECTRONIC MAIL

 

It involves the transfer of letters and other documents through telecommunication lines, rather than through physical delivery. An electronic mail system requires a telecommunication network and software.




What is DSS? What is the purpose of Decision Support System in MIS

By Dinesh Thakur

Decision Support System refers to a class of systems which support in the process of decision making and does not always give a decision it self. Decision Support Systems (DSS) are a specific class of computerized information system that supports business and organizational decisionmaking activities.

A properly designed DSS is an interactive softwarebased system intended to help decision makers compile useful information from raw data, documents, personal knowledge, and/or business models to identify and solve problems and make decisions

DSS is an application of Hebert Simon model, as discussed, the model has three phases :

i) Intelligence

ii) Design

iii) Choice 

The DSS basically helps in the information system in the intelligence phase where the objective is to identify the problem and then go to the design phase for solution. The choice of selection criteria varies from problem to problem.

It is therefore, required to go through these phases again and again till satisfactory solution is found. In the following three phase cycle, you may use inquiry, analysis, and models and accounting system to come to rational solution.

These systems are helpful where the decision maker calls for complex manipulation of data and use of several methods to reach an acceptable solution using different analysis approach. The decision support system helps in making a decision and also in performance analysis. DSS can be built around the rule in case of programmable decision situation. The rules are not fixed or predetermined and requires every time the user to go through the decision making cycle as indicated in Herbert Simon model.

Attributes : 

i) DSS should be adaptable and flexible.

ii) DSS should be interactive and provide ease of use.

iii) Effectiveness balanced with efficiency (benefit must exceed cost).

iv) Complete control by decision-makers.

v) Ease of development by (modification to suit needs and changing environment) end users.

vi) Support modeling and analysis.

vii) Data access.

viii) Standalone, integration and Web-based

DSS Characteristics : 

i) Support for decision makers in semi structured and unstructured problems.

ii) Support managers at all levels.

iii) Support individuals and groups.

iv) Support for interdependent or sequential decisions.

v) Support intelligence, design, choice, and implementation.

vi) Support variety of decision processes and styles

Classification of MIS

By Dinesh Thakur

The discipline of MIS can be categorized in the following 6 classes:

Transaction Processing System

TPS processes transaction and produces reports. It represents the automation of the fundamental, routine processing used to support business operations.  It does not provide any information to the user to his/her decision-making. TPS uses data and produces data as shown in the following diagram.

Data Processing Data

Previously, TPS was known as Management Information System. Prior to computers, data processing was performed manually or with simple machines. The domain of TPS is at the lowest level of the management hierarchy of an organization.

Management Information System (MIS)

MIS is an information system, which processes data and converts it into information.  A management information system uses TPS for its data inputs. The information generated by the information system may be used for control of operations, strategic and long-range planning. Short-range planning, management control, and other managerial problem solving. It encompasses processing in support of a wide range of organizational functions & management processes. MIS is capable of providing analysis, planning & decision making support. The functional areas of a business may be marketing, production, human resource, finance and accounting.

Decision Support System (DSS)  

A decision support system (DSS) is an information system application that assists decision-making. DSS tends to be used in planning, analyzing alternatives, and trial and error search for solution. The elements of the decision support system include a database, model base & software. The main application areas of DSS are Production, finance and marketing.

    Element of DSS

DSS can be differentiated from MIS on the basis of processing the information. MIS processes data to convert it into information. DSS processes information to support the decision making process of a manager.

Executive Support System  (ESS)

Executive Support System (ESS) is an extension of the management information system, which is a special kind of DSS; An ESS is specially tailored for the use of chief executive of an organization to support his decision-making. It includes various types of decision-making but it is more specific and person oriented.

Office Automation Systems (OAS)

Office automation refers to the application of computes and communication technology to office functions.  Office automation systems are meant to improve the productivity of managers at various levels of management of providing secretarial assistance and better communication facilities.
Office activities may be grouped under two classes, namely

i)   Activities performed by clerical personnel (clerks, secretaries, typist, etc.,) and
ii) Activities performed by the executives (managers, engineers or other professionals like economist, researches etc.)

In the first category, the following is a list of activities.

a) Typing
b) Mailing
c) Scheduling of meetings and conferences,
d) Calendar keeping, and
e) Retrieving documents

The following is a list of activities in the second category (managerial category)

a) Conferencing.
b) Production of information (messages, memos, reports, etc.) and controlling performance

Business Expert Systems: These systems are one of the main types of knowledge-based information systems. These systems are based on artificial intelligence, and are advanced information systems. A business expert system is a knowledge based information system that uses its knowledge about a specific, complex application area to act as an expert. The main components of an expert system are:

a. Knowledge Base
b. Interface Engine
c. User Interface

 Knowledge Base

 

Describe the MIS Structure Based on the Physical Components

By Dinesh Thakur

Structure of MIS may be understood by looking at the physical components of the information system in an organization. The physical components of an organizational information system may be hardware, software, database, manual procedures and operating persons. A brief description of these components has been outlined in the following paragraphs: 

Hardware 

Hardware refers to the physical data processing equipment and peripheral devices, For example, CPU, monitor, keyboard, printer, drives, tapes, communication devices, etc.

Software

Software is a broad term given to the instructions or programs that direct the operating of the hardware. Software could be of two types, i.e. system software and application software.

Database

The database consists of all data utilized by application software. Data is stored in files.

Procedures

Formal operating procedures, which are required to operate a system, such as manuals, are also regarded as physical elements.

Operating Personnel

Personnel like Computer Operators, Computer Programmers, System Analysts, System Managers, etc., are the operating people of the information systems.

Input and Output Various physical inputs and outputs from the information system, existing in forms like printout, reports etc.

 

Different Functional Information Systems

By Dinesh Thakur

Functional Information System is based on the various business functions such as Production,  Marketing, Finance and Personnel etc. These departments or functions are known as functional areas of business. Each functional area requires applications to perform all information processing related to the function. The popular functional areas of the business organization are:

• Financial Information System
• Marketing Information System
• Production/Marketing Information System
• Human Resource Information System 

Financial Information System

Financial information system is a sub-system of organizational management information system. This sub-system supports the decision-making process of financial functions at the level of an organization.

Marketing Information System 

This sub-system of management information system provides information about various functions of the marketing system of an organization. Marketing is another functional area of the business organization, which is engaged in marketing (selling) of its products to its customers.

Important functions of the marketing process include the following.

• The marketing identification function
• The purchase motivation function.
• The product adjustment function
• The physical distribution function
• The communication function
• The transaction function
• The post-transaction function

Production /manufacturing Information System

Manufacturing or production information system provides information on production /operation activities of an organization and thus facilitates the decision-making process of production managers of an organization. The main decisions to be taken in manufacturing system are:

• Product Design

Human Resources Information System   

This functional information system supports the functions of human resource management of an organization. The human resource management function, in its narrow sense, it also known as personnel management .The function involves:

• Manpower planning.
• Staffing
• Training and development
• Performance evaluation, and
• Separation activities

Discuss the major types of Information System

By Dinesh Thakur

Formal Information System: It is based on organizational chart represented by the organization.

Informal Information System: it is an employee based system designedto meet personal and vocational needs and to help in the solution of workrelatedproblems. It also funnels information upward through indirectchannels. It works within the framework of the business and its stated policies.

Computer Based Information System (CBIS): This category of information system depends mainly on the computer for handling business applications. System analyst develops different types of information systems to meet variety of business needs. There is a class of system collectively known as computer based information system. They can be classified as

• Transaction Processing System (TPS)
• Management Information System(MIS)
• Decision Support System (DSS)
• Office Automation System (OAS) 

Transaction Processing System (TPS) : The most fundamental computer based system in an organization pertains to the processing of business transactions. A transaction processing system can be defined as a system that captures, classifies, stores, maintains, updates and retrieves transaction data for record keeping and input to the other types of CBIS.

Transaction Processing System is aimed at improving the routine business activities. A transaction is any event or activity that affects the whole organization. Placing order, billing customers, hiring of employees and depositing cheques are some of the common transactions.

Types of transactions that occur vary from organization to organization but this is true that all organizations process transaction as a major part of their daily business activities. Transaction Processing System provides speed and accuracy and can be programmed to follow routines without any variance.

Management Information System (MIS) : Data processing by computers has been extremely effective because of several reasons. The main reason is that huge amount of data relating to accounts and other transactions can be processed very quickly. MIS are more concerned with levels of management with information essential to the running of smooth business. This Information must be as relevant, timely, accurate, complete and concise as is economically feasible.

Decision Support System (DSS) : It is an information system that offers the kind of information that may not be predictable. Business professionals may need such information only once. These systems do not produce regularly scheduled management reports. Instead, they are designed to respond to wide range of requests. It is true that all the decisions in an organization are not of a recurring nature. Decision support systems assist managers, who make decisions that are not highly structured, often called unstructured or semi structured decision. The decision support systems support, but do not replace, judgments of managers.

Office Automation System (OAS) : Office Automation Systems are among the newest and most rapidly expanding computer based information systems. They are being developed with the hope and expectation that they will increase the efficiency and productivity of office workers, typists, secretaries, administrative assistants, staff professionals, managers and others.

Different Types of System in MIS

By Dinesh Thakur

The word system is derived from the Greek word “system” which means a organized relationship among the following unit or component. “A system is an orderly grouping of interdependent components linked together according to a plan to achieve a specific goal”. 

The word component may refer to physical parts (engine, wheels of cars), management steps (planning, organizing, controlling) or a sub subsystem in a multi level structure. It is to be noted that a system is not a randomly arranged set. It is arranged with some logic governed by rules, regulation, principles and policies.

In MIS we are usually concerned with man-made system involving input, process and output, as represented in figure. A system may have multiple inputs and multiple outputs.

All systems operate in an environment. The environment may influence the system in its design and performance. When a system is designed to achieve certain objective, it automatically sets the boundaries for itself. The understanding of boundaries of the system is essential to bring clarity in explaining the system components and their arrangement.

system components and their arrangement

                                                         A typical system

Characteristics of System :

 

Following characteristics are present in all systems :

a) Organization

b) Interaction

c) Interdependence

d) Integration

e) Central Objective

 

Organization : Organization implies structure and order. It is the arrangement of components that helps to achieve objectives. Hierarchical relationship starting with the president on top and leading down ward to the blue collar worker represent the organization structure

Interaction : Interaction refers to the procedure in which each component interact with other components of the system. In an organization, for example purchasing must interact with product, advertising with sales and payroll with personnel.

Interdependence : Independence is concerned with how a system is tied together; it is more than sharing a physical part or location. It means that parts of the system part or location with in the system, even through each part performance. A unique function successful integration will typically produce a better request as whole rather than if each component works independently.

Central Objective : Objective may be real or stated. Objective is determined by higher management and user must be aware about the central objective well in advance.




What do you understand by Information? What are the Characteristics of Information

By Dinesh Thakur

Data : Data is raw facts. Data is like raw material. Data does not interrelate and also it does not help in decision making. Data is defined as groups of non-random symbols in the form of text, images, voice representing quantities, action and objects.

 Information : Information is the product of data processing. Information is interrelated data. Information is equivalent to finished goods produced after processing the raw material. The information has a value in decision making. Information brings clarity and creates an intelligent human response in the mind.

According to Davis and Olson : “Information is a data that has been processed into a form that is meaningful to recipient and is of real or perceived value in the current or the prospective action or decision of recipient.”

 Data Processing Chart

It is a most critical resource of the organization. Managing the information means managing future. Information is knowledge that one derives from facts placed in the right context with the purpose of reducing uncertainty.

Characteristics of Information : The parameters of a good quality are difficult to determine forinformation.Quality of information refers to its fitness for use, or its reliability.Following are the essential characteristic features :

i) Timeliness : Timeliness means that information must reach the recipients within the prescribed timeframes. For effective decisionmaking, information must reach the decision-maker at the right time, i.e. recipients must get information when they need it. Delays destroys the value of information. The characteristic of timeliness, to be effective, should also include up-to-date, i.e. current information.

ii) Accuracy : Information should be accurate. It means that information should be free from mistakes, errors &, clear. Accuracy also means that the information is free from bias. Wrong information given to management would result in wrong decisions. As managers decisions are based on the information supplied in MIS reports, all managers need accurate information.

iii) Relevance : Information is said to be relevant if it answers especially for the recipient what, why, where, when, who and why? In other words, the MIS should serve reports to managers which is useful and the information helps them to make decisions.

iv) Adequacy : Adequacy means information must be sufficient in quantity, i.e. MIS must provide reports containing information which is required in the deciding processes of decision-making. The report should not give inadequate or for that matter, more than adequate information, which may create a difficult situation for the decision-maker. Whereas inadequacy of information leads to crises, information overload results in chaos.

v) Completeness : The information which is given to a manager must be complete and should meet all his needs. Incomplete information may result in wrong decisions and thus may prove costly to the organization.

vi) Explicitness : A report is said to be of good quality if it does not require further analysis by the recipients for decision making.

vii) Impartiality : Impartial information contains no bias and has been collected without any distorted view of the situation.




Discuss an Organizational Need for MIS in a Company

By Dinesh Thakur

To facilitate the management decision making at all levels of company, the MIS must be integrated. MIS units are company wide. MIS is available for the Top management. The top management of company should play an active role in designing, modifying and maintenance of the total organization wide management information system.

Information system and Information technology have become a vital component of any successful business and are regarded as major functional areas just like any other functional area of a business organization like marketing, finance, production and HR. Thus it is important to understand the area of information system just like any other functional area in the business. MIS is important because all businesses have a need for information about the tasks which are to be performed. Information and technology is used as a tool for solving problems and providing opportunities for increasing productivity and quality.

Information has always been important but it has never been so available, so current and so overwhelming. Efforts have been made for collection and retrieval of information, However, challenges still remain in the selection analysis and interpretation of the information that will further improve decision making and productivity.

MIS for a Business Organization :  

Support the Business Process : Treats inputs as a request from the customer and outputs as services to customer. Supports current operations and use the system to influence further way of working.

Support Operation of a Business Organization : MIS supports operations of a business organization by giving timely information, maintenance and enhancement which provides flexibility in the operation of an organizations.

To Support Decision Making : MIS supports the decision making by employee in their daily operations. MIS also supports managers in decision making to meet the goals and objectives of the organization. Different mathematical models and IT tools are used for the purpose evolving strategies to meet competitive needs.

Strategies for an Organization : Today each business is running in a competitive market. MIS supports the organization to evolve appropriate strategies for the business to assented in a competitive environment.




Factors responsible for Development of MIS

By Dinesh Thakur

 Factors Responsible for the development of MIS are numerous and have been a prime concern for many Researchers and Practitioners. Both Inter and external factors must be taken into account when trying to understand and organization’s criteria for deciding about technology. The following are the factors which are responsible for development of MIS :

1. External

2. Internal

External Factors : External Factors are conditions that exist in organization’s external environment. The factors can be found at the industry level or in national policies.

 

(a) Industry level : At the industry level, we are looking at characteristics as degree of diffusion of certain technologies, the availability of external know-how, for example, technology suppliers, the degree of innovativeness of the industry, the requirements imposed by major customers and external markets and overall levels of competition and technology sophistication in the industry.

(b) National Policies : For the external factors the national policies also affect the organization that indirectly affects the subsystems of the organization.

Internal Factors : Internal factors internal of the firm that may affect the development of MIS can be grouped into three categories:

i) Past Experience with Technology : The organizations past experience about the technology in terms of exposure and organizational learning ultimately affects its future in developing technology.

ii) Organizational Characteristics : An organization’s characteristic like size, influence the adoption of MIS application in organization. The adoption of certain technologies may appear more appropriate for the larger firms because of the large capital investments and the skilled human resources involve in the implementation and operation of such technologies. Smaller firms are less affected by organizational inertia and they show a greater degree of involvement of organizational member’s especially top management during implementation. Ready to use software and less expensive equipments of MIS application are more attractive to smaller firms.

iii) Organizational Pursued strategy : Internal factors deal with the organizations pursued strategy on both orientation and technology policy. An organization’s strategy reflects its action with market and technology, which ultimately modify its experience and consequently its overall characteristics and capabilities. The need for a strong technology has been advocated by a number of authors and investments in MIS should therefore be closely aligned with overall corporate strategy.

Other Factors :

Customer Satisfaction : Development of MIS is affected by customer satisfaction. Customer of the services should be satisfied by the presented system.

Effective : Development should be effective in terms of organizational benefit & user satisfaction.

Efficient : Development should use all the resources, organization values efficiently.

 




Prerequisites of an Effective MIS

By Dinesh Thakur

(i) Qualified System and Management Staff : The prerequisite of an effective MIS is that it should be managed by qualified officers. These officers should have a mutual understanding about the roles and responsibilities of each other and be understand clearly the view of their fellow officers. For this, each organization should have two categories of officers :

 (a) System and Computer Experts who in addition to their expertise in their subject area , they should also be capable of understanding management concepts to facilitate the understanding of problems asked by concern. They should also be clear about the process of decision making and information requirements for planning.

(b) Management experts who should also understand quiteclearly the concepts and operations of a computer. This basic knowledge of computer will be useful will place them in a comfortable position, while working with systems, technicians in designing or other wise, of the information system.

(ii) Futuristic Perspective : An effective MIS should be capable of meeting the future requirements of its executives as well. This capability can be achieved by regular monitoring and updating the MIS.

(iii) Support of Top Management : For a management information system to be effective, it must receive the full support of top management. The Reasons for this are :

(a) Subordinate managers are usually lethargic about activities which do not receive the support of their superiors.

(b) The resources involved in computer based information system are larger and are growing larger and larger in view of importance gained by management information system.

(iv) Common Database : It is an integrated collection of data and information which is utilized by several information subsystems of an organization. A common database may be defined as a super file which consolidates and integrates data records formerly stored in a separate data file. Such a database can be organized as an integrated collection of data records into a single super file or it can be organized as an integrated collection of several data file.

(v) Control and maintenance of MIS : Control of the MIS means the operation of the system as it was designed to operate. Some times, users develop their own procedures or short cut methods to use the system which reduces its effectiveness.




What are the main managerial functions

By Dinesh Thakur

The main managerial functions are:

i)   Planning: It includes laying down policies, procedures, rules, programs after setting goals and objectives to achieve them.
ii) Organizing: organization of tasks is done by dividing activities, assigning duties and delegating authorities.
iii) Staffing: it is the process of putting the right person at the right job.
iv)  Directing: directing the people in order to achieve pre-determined goals and objectives.
v)   Controlling: Managers control the performance of work by setting performance standards.

Difference Between Traditional Marketing and Modern Marketing

By Dinesh Thakur

Traditional Marketing: In traditional marketing, more importance is given on selling the product. They start with production and marketing is done while selling and promoting the product to attain sales at profit. In this technique, the existing products are imposed on the market through aggressive selling and promotional pressures.

 Modern Marketing: Its main motive is customer satisfaction that is building a relationship with MIS customer and is achieved through an integrated, corporate wide set of marketing activities. This technique understands the needs and desires of the customer and product is designed accordingly.

 

Different Characteristics of MIS

By Dinesh Thakur

A management information system has the following characteristics:

1). System approach:

The information system follows a System’s approach. The system’s approach implies a wholistic approach to the study of the system and its performance to achieve the objective for which it has been formed.

2). Management oriented:

For designing of MIS top-down approach should be followed. Top-down approach suggests that the system development starts from the determination of the management needs and overall business objectives. Management oriented characteristic of MIS also implies that the management actively directs the system development efforts.

3). Need based:

MIS design and development should be as per the information needs of managers at different levels that are strategic planning level, management control level and operational control level.

1) Exception based:

MIS should be developed on the exception based reporting principle, which means an abnormal situation, that is the maximum, minimum or expected values vary beyond the limits. In such cases there should be exception reporting to the decision-maker at the required level.

2) Future oriented:

Besides exception based reporting, MIS should also look at the future. In other words MIS should not merely provide past or historical information, rather it should provide information on the basis of projections based on which actions may be initiated.

3) Integrated:

Integration is significant because of its ability to produce more meaningful information. For example, in order to develop an effective production scheduling system, it is necessary to balance such factors as: set-up costs, work force, overtime rates, production capacity, inventory level, capital requirements and customer services. Integration means taking a comprehensive view of the subsystems that operate within the company.

4) Common data flows:

Because of the integration concept of MIS, there is an opportunity to avoid duplication and redundancy in data gathering, storage and dissemination. System designers are aware that a few key source documents account for much of the information flow. For example, customer’s orders are the basis for billing the customer for the goods ordered, setting up accounts receivables, initiating production activity, sales analysis, sales forecasting etc.

Different MIS Functions

By Dinesh Thakur

MIS is set up by an organization with the prime objective to obtain management information to be used by its managers in decision-making. Thus, MIS must perform the following functions in order to meet its objectives.

1) Data Capturing:

MIS captures data from various internal and external sources of an organization. Data capturing may be manual or through computer terminals. End users, typically record data about transactions on some physical medium such as paper form or enter it directly into a computer system.

2) Processing of data:

The captured data is processed to convert it into the required management information. Processing of data is done by such activities as calculating, comparing, sorting, classifying and summarizing.

3) Storage of information:

MIS stores processed or unprocessed data for future use. If any information is not immediately required, it is saved as an organizational record. In this activity, data and information are retained in an organized manner for later use. Stored data is commonly organized into fields, records, files and databases.

4) Retrieval of information:

MIS retrieves information from its stores as and when required by various users. As per the requirements of the management users, the retrieved information is either disseminated as such or it is processed again to meet the exact demands.

5) Dissemination of MI:

Management information, which is a finished product of MIS, is disseminated to the users in the organization. It could be periodic, through reports or on-line through computer terminals.