MI 13-02 MANAGEMENT INFORMATION SYSTEM

MI 13-02
management information system

Q.1. “Business re-engineering requires a major change in the minds.”

Subtraction This with appropriate arguments.

Michael Hammer defines re-engineering as the fundamental rethinking and radical redesign of business process to achieve dramatic improvements in the critical contemporary measures of performance such as cost, quality, service and speed.

The approach to re-engineering aims at customer focus. It requires one to take a different view of the business the view based o the process and not on the tasks or functions. It requires organization restructuring and redesigning based on the process, which terminates at the customer door contributing to the value desired by the customer. The definition of re-engineering is loaded with a number of important concepts and its understanding is necessary for successful re-engineering of business.

The first and the foremost is fundamental rethinking. The fundamental rethinking calls for questing everything that is being followed, practiced and found acceptable for centuries. It rejects old legacies and proven practices.

Redical redesign is the second important concept used in the definition of re-engineering. The redical redesign calls for off loading the activity outside the business organization if it contributes to the customer desired value. It begins with the objective of activity elimination, then improvisation and finally outsourcing. It suggests only to do, what can be done best, and rest to be done through outsource.

Business re-engineering requires a major change in the minds etc. In the present world, business performance is measured in terms of order book, turnover, inventory, payables and receivables, etc. It is analyzed on the basis of cost, overheads, customer complaints, pending orders and queries. These measures and methods, though not wrong are not meaningful in the present competitive business world. For example, the order book may be full if it takes a long time process the order but the business is exposed to the risk of not getting the repeat business orders. What is required by re-engineering is a change of focus, from physical aspect to time aspect of the business. Instead of orders, order processing cycle time important. Procuring the right material of the right quality is important but how soon can the material be procured is vital.

Another change in the management philosophy should be from delegation to empowerment down the line. The relationship should be used on trust and not on command control principle. Once the business has been re-engineering the management thinking would be oriented towards customer satisfaction. The focus world shift from the management of the company to the management of corporate relations between the management, the suppliers and the customers. These relations would take shape in the arrangement such as an alliance, a franchise strengthening the endeavour of the organization to service the customer.

Q.2 Discuss the reasons for occurrence of delays in the business process?

A business process is complex and lengthy and if conventionally designed and implemented on functional lines, a number of processing steps are repeated across the process. The process operators repeatedly search, access, refer, compute and analyze the same data or a ser of the data in different contexts across the process for achieving the local objectives of the department or function. This increases the process cycle time.

In the conventional functional processing, a transaction awaits for scrutiny, analysis and approval by the decision makers if all methods of scrutiny, analysis, approval and decision making are put in the redesigned process using information technology capabilities the time taken in the transaction and processing is saved.

The delays arising out of queuing and hold up due to the absence of the decision maker, the time taken for signatures and counter signature, filling and updating the records, an communication to all the concerned agencies are saved reducing the process cycle time. The entire business process is normalized by removing the decision makers and giving their role to the information technology.

The information technology id capable of handling progressive updation and documentation of a transaction. It can handle first the receipt of goods, then in warding and the acceptance followed by inspection. At each stage, no separate document is generated. The information technology provides the capability of updating a receipt transaction in stages with the appropriate comments or remarks. The saves paper flow and delay due to non attendance of documents. The issues revolving around secrecy, confidentiality and safety of the data and information can also be handled effectively using IT. In the conventional approach of processing, such data is kept under the custody of the senior people in the organization and its availability is person dependent. The information technology provides the capability of handling this aspect of the information whereby the access, usage and update rights cab be given to selected trained people and the system keeps an account of its use in all aspect - who, when, why and from which location. The use of this capability reduces bureaucratic dependence on the senior person in the hierarchy or the authority reducing the processing time.

Q.3 Explain the relevance of IT in re-engineering?

It is experienced that the role of the information technology as an enabler is very important and significant in re-engineering. Its contribution, compared to other technologies to the radical redesigning of the process is maximum. The range of technologies in all fields based on the microprocessor applications affect a number of factors of the business processes. Any business processes in the course of execution gathers and processes the data and stores it for further use.

The business process requires the formation and its analysis for decision making. In the course of execution, it checks, validates and controls a number of aspects of the business process before taking a decision for implementation. It performs the validating, checking, computing, communicating and processing at a mind-boggling speed and precision. The search capabilities of the IT are so versatile that an unknown entity can be searched with a limited or a hazy clue. Since, the speed is very high, such search is handled with the quick access capabilities.

Similarly IT provides storage capabilities in a number of ways. There are different media to store the data and information. The storage of the data can be structured around the hardware and software. It is possible to store data in a distributed order in different locations and still be one database in the whole organization sharable by all. It is possible to process the data at one location and affect the update at other different locations. The data can be an on line data or an off line data as the need be. The capacity of the storage medium is very high. Day by day the storage medium is becoming smaller in size but at the same time its data holding capacity is increasing. The capability of the IT for data capture speedy processing and storage and communication to any location helps to build the knowledge database.

The use of information technology enables the re-engineering of the value stream process to be an expeditious process. The information technology is an enabler and the information systems are tools and the decision support systems are drivers for the process performance. A re-engineered value stream process will generate the transactions to effect the business result. The management information system will capture the data on the various milestones in the process and create the MIS report for management at all levels.

Q.4. Explain the System Development Life Cycle with a neat illustration?

The XYZ ltd. Is in the consultancy business of information and communication systems. It has the latest hardware and software, and system analysts and programmers specialized in the various fields. At any time more than a dozen projects are ongoing in the various companies. XYZ ltd. Has specialized in the software development in manufacturing, commercial, banking, insurance and the decision making systems.

To convert all its activities in an automated maintenance system an analyzing have to follow many of the steps. At a first step, the system analyst studies the client existing system as it is. The study helps in understanding the current situation. Considerable data and information is gathered after discussions with the key personnel in the system. In this aspect the following aspects are understood:

* The basic procedure of data flow
* The purpose of data and its use in the system
* The logical flow of information
* The use of formula, rules, guidelines
* The decision making points
* Filling, documentation and distribution

After understanding the current system capabilities the object of the proposed system is set and flow chart is made and discussed with the key personnel. After that a feasibility study of the system is revised by the analyst. With this the feasibility of the systems study is complete paving the way for the computer system design. A computer system design consists of the following steps :

* Input design
* File design
* Processing routines
* Decision routines
* Systems breakup
* Logical flow of processing
* Storage and backups
* Print format design for reports

Now after completing of designing, the next step is the testing phase, in which all types of testing is done like updation, validation and checklist etc. After successful completion of testing now it is the time of implementing the system. Once the system is implemented successfully the maintenance phase is started for.

Q.5 Brielfy explain the implementation phase of MIS with a neat diagram?

Before installing a new MIS in any organization, it is desirable to know whether there is already and old MIS in operation. If so, then the old system is allowed to operate in parallel, till the new system is fully operational. The implementation plan involves the following steps:

* Preparing organizational plans
* Planning of work flow
* Training of personnel
* Development of software
* Acquiring computer hardware
* Designing the format for data collection

Approaches of MIS development

There are seven approaches, which are used for developing MIS :


a) Top Down Approach : This approach develops a corporate plan as a guide for designing the information system. Here top management takes the lead in formulating objectives, policies and plans and communicates them down the line to middle and supervisory management for translating them into reality

b) Bottom-up Approach

c) Integrative approach

d) Traditional approach

e) Prototyping approach

f) End user development approach

g) Systematic approach for development in small organizations

Q.6 Briefly explain the various DBMS models?

A database model is the method of organizing data and represents the logical relations among data elements in the database. The most popular database model are:

(a) Hierarchical model

(b) Network model

(c) Relational model

A) Hierarchical Model :

This structure help to establish logical relationships among various data elements of multiple files and arrange the elements in a hierarchy. Each box in the model is a record and is sometime referred to as a mode. In such a model, each record on one level can be related to multiple records on the next lower. A record that has subsidiary records is called a parent and the subsidiary records are called children. Data elements in this model are well suited for a one to many relationships with other data elements in the database. The figure below provides an example of the hierarchical model.

This model is ideally suited for problems in which the data elements have a natural hierarchical structure. The disadvantage is that it is necessary to identify the grouped of files that must be logically integrated before the database. Hence, a hierarchical data model may not always be flexible enough to accommodate the dynamic needs of an organization.

B) Network Model:

In the network, each record in the database can have multiple parents, i.e. the relationships among data elements can have a many to many relationship. The figure below shows a network model for an inventory system.

In the network model, databases can be translated from hierarchical model to network and vice versa. The main difference between the network model and hierarchical model is that in a network model, a child can have a number of parents whereas in a hierarchical model, a child can have only one parent.

The advantage of the network model is that it promotes flexibility and data accessibility, since data elements at a lower level can be accessed without accessing the data elements above them. This model is efficient, easy to understand and can be applied to many real world problems that require routine transactions. The disadvantage is that:

(i) it is complex to design and develop

(ii) it has to be fine tuned frequently so that relationships among different pieces of data are true representations of the real world.

C) Relational Model:

In this model, data is represented using two-dimensional tables called relations, which are made of columns and rows. Each column represents a field, also referred to as an attribute, each row represent a record, also referred to as a tupelo. Relational databases are a popular way of databases use three fundamental operations: select project and join. The select operation is a horizontal cut so that only selected rows (records) are included in the query results. The project operation creates a subset of columns (or a new table) designed to meet the information needs of the user. The join operation joins, or links two or more tables, if the information requested by the user is not found in one table.

The advantages of a relational model are that it enables a computer system to accommodate a variety of file inquiries in an efficient manner. Also additional indexes can be constructed at a later point of time as new data processing requirements dictate. The major disadvantages of the relational model are that the index portion of the file must be created and maintained along with the file records. In some cases the index portion of the file may be larger than the file itself resulting in wastage of storage space..

Q.7 What is strategic MIS? Explain its characteristics.

Strategic MIS is the set of systems which are considered critical to the current or future business competitiveness, and hence the survival of an organization. Strategic MIS also supplies an organization with business intelligence. In other words, if an information system is used in creative was to achieve goals and fulfill set organizational missions, it can considered to be a strategic MIS.

Strategic MIS cab be external or internal system. External strategic MIS are used mainly by external quantities in the business environment, such as customers, suppliers, distributors etc and have a value added component that gives developers some time to read the benefits of the system innovation. In general, strategic MIS can be divided into three main categories:

a) Systems that focus on innovation fro competitive edge.

b) Systems that use information as a weapon

c) Systems that increase productivity and lower the costs of goods and services.

Q.8 The role of MIS in an organization can be compared to the role of heart in

the body. Discuss.

The role of MIS in an organization can be compared to the role of the heart in the body. The information is the blood and MIS is the heart. In the body, the heart plays the role of supplying pure blood to all the elements of the body including the brain. The heart works faster and supplied more blood when needed. It fulfills the needs of blood supply to human body in normal course and also in crisis.

MIS plays exactly the same role in the organization. The system ensures that an inappropriate data is collected from various sources, processed and sent further to all the needy destinations. The system is expected to fulfill the information needs of

An individual, group of individuals, managers etc. MIS satisfies diverse needs through a variety of systems such as query systems, analysis systems, modeling systems, decision support systems. MIS also helps in strategic planning, management control, operational control and transaction processing. MIS helps junior management by providing operational data for planning, scheduling, controlling and also helps them further in decision making at the operational level to correct an out of control situation. MIS helps middle management in short terms planning target setting and controlling the business functions.

MIS also helps top management in goal setting, strategic planning and also evolving the business plans in addition to their implementation. MIS infect plays the role of information generation, communication, problem identification and helps in the process of decision making. Thus MIS plays a vital role in management, administration and operations of an organization.

Factors contributing to success of MIS: If MIS is to be a success, then it should have all the feature listed below:

* MIS is integrated into the management functions. It sets clear objectives to ensure that MIS focuses on the major issues of the business. Also adequate development resources are provided and human & organizational barriers to progress are removed.
* An appropriate information processing technology required to meet the data processing and analysis needs of the users of MIS is selected.
* MIS is oriented, defined and designed in terms of the users requirements and its operational viability is ensured.
* MIS is kept under continuous surveillance, so that its open system is modified according to the changing information needs.
* MIS focuses on results and goals, and highlights the factors and reasons for non achievements.
* MIS is easy to operate and therefore, the design of MIS has such good feature which make up a user friendly design.