Wednesday, January 6, 2010

WHAT IS MIS.......

A management information system (MIS) is a subset of the overall internal controls of a business covering the application of people, documents, technologies, and procedures by management accountants to solve business problems such as costing a product, service or a business-wide strategy. Management information systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization.[1] Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. Decision Support Systems, Expert systems, and Executive information systems.[1]
It has been described as, "MIS 'lives' in the space that intersects technology and business. MIS combines tech with business to get people the information they need to do their jobs better/faster/smarter. Information is the lifeblood of all organizations - now more than ever. MIS professionals work as systems analysts, project managers, systems administrators, etc., communicating directly with staff and management across the organization."
[edit] Overview
At the start, in businesses and other organizations, internal reporting was made manually and only periodically, as a by-product of the accounting system and with some additional statistic(s), and gave limited and delayed information on management performance. Previously, data had to be separated individually by the people as per the requirement and necessity of the organization. Later, data and information was distinguished and instead of the collection of mass of data, important and to the point data that is needed by the organization and was stored.
In their infancy, business computers were used for the practical business of computing the payroll and keeping track of accounts payable and accounts receivable As applications were developed that provided managers with information about sales, inventories, and other data that would help in managing the enterprise, the term "MIS" arose to describe these kinds of applications. Today, the term is used broadly in a number of contexts and includes (but is not limited to): decision support systems, resource and people management applications, project management and database retrieval application.
[edit] Definition
An 'MIS' is a planned system of the collecting, processing, storing and disseminating data in the form of information needed to carry out the functions of management. In a way it is a documented report of the activities those were planned and executed. 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." [3]
The terms MIS and information system are often confused. Information systems include systems that are not intended for decision making. The area of study called MIS is sometimes referred to, in a restrictive sense, as information technology management. That area of study should not be confused with computer science. IT service management is a practitioner-focused discipline. MIS has also some differences with Enterprise Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision support.
Professor Allen S. Lee states that "...research in the information systems field examines more than the technological system, or just the social system, or even the two side by side; in addition, it investigates the phenomena that emerge when the two interact." .


section one :: technology, organization and business: What is MIS?
Concepts: What do you think of MIS? Is it a technical aspect which only people in computer science or engineering can handle, is it the issue of management or just another buzzword in administration which makes computer support look important. The section will explore different aspects of ideas and concepts which explain the problematic issues happening in modern management today.

What is MIS?
The concepts of MIS have been around since the computer era started. The idea of better living and work was initiated by the advancement of computer technology over the years. 3 schools of thoughts started the idea of automation and computerization; engineering school, computer science and business school. Each had different approaches and understandings to the word "management" and "information system". The word "management" makes it difficult for people to grasp what to be done and what should be learnt to deal with the issue. Presently, 4 ideas of MIS are
- system management = system design and set up, what is the best system design
- information management = information delivery to people who need it, what is the system which delivers information effectively
- information system = the system that holds and distributes useful information, what is the system which delivers information
- management of technology = managing the information system cost-effectively, what is the system which is worth the investment.

All aspects are important to the organization and, obviously, all knowledge is complementary to each other in order to achieve effective and efficient system and get the most out of the money spent.

All of these perspectives are essential in their own ways. As the technology changes, the complexity of management grows. In the 60s, computer required an expert to operate and to set up and the cost of applying computer technology was quite substantial. The following 70s, computer seemed to be more corporate friendly with relatively high-cost and maintenance. Personal computer started to play major role in the 80s. Since then, the computer have been integrated into all aspects of life especially, in business.

The changes occurred in technology and world economy affecting each other in creating inevitable modern ways to do business. Information systems is an essential part of business because the technology has been integrated into the business infrastructure and processes. Rapid computing, communication, database and applications created by technology (multimedia, barcode, video conference etc.) stimulate the competition and new standards of business.

From the other perspective, we can answer why IS is important by referring to:

- Emergence of the Global Economy
Management and Control in a Global Market Place
Competition in World Markets
Global Workgroups
Global Delivery System
Old Economy
Skilled Labor: Work Fast, Knows Specific Skills
Hi-Tech Production: Produce More with Less Costs
Lean Management: Small but Effective
Product Oriented: Make Better/Cheaper Product New Economy
Skilled Labor: Work Smart, Use Effective Tools
Hi-Tech Communication
Smart management: Responsive and Adaptive
Consumer Oriented: Control and Satisfaction
Information Oriented/Information is Product

- Transformation of Industrial Economics
Knowledge and Information-Based Economy
New Products and Services
Knowledge: a central productive and strategic asset
Time-Based Competition
Shorter Product Life
Turbulent Environment
Limited Employee Knowledge Base

- Transformation of Business Enterprise
Flattening
Decentralization
Flexibility
Location Independence
Low transaction and Coordination Costs
Empowerment
Collaborative Work and Teamwork

- The Emerging of Digital Firm
Digitally Relationship Embedded with Customers, Suppliers and Employees
Core Businesses Processes Accomplished via Digital Network
Digital Management of Key Corporate Assets
Rapid Sensing and Responding to Environmental Changes
Knowledge Management
-Concepts: Knowledge Supports Organizational Growth
-Knowledge Sharing Exists
-IT Supports Knowledge Management
-Modern HRD
.

What is the problem in Managing IS?: the problems covers hardware, software, design, management and implementation. Considering external changes, specifically in technology and education, the problems in MIS are created by:
- Rapid Changes in Technology: New inventions/creations always exist
- Changes Technology Standards : Making choices is difficult
- Different Academic Institutions Provides Different Knowledge and Skills: A result of changes in technology: this causes different perceptions and attitudes toward standard or BEST technology
The concept of MIS is intertwined with "Learning Organization"(brint.com) and "Knowledge Management" (CIO.com) idea as a result of the New Economy (Hotwired.com)or with another perspective,the knowledge economy(www.enterweb.org). While "Learning Organization" focuses on the changes of organization in order to compete in new economy and "Knowledge Management" emphasizes on distributing information and knowledge to encourage learning and making less mistakes, MIS has a focus on optimizing technology for better communication and managing the task. These 3 concepts share common goal of pushing organization to change, learn and optimize its existing knowledge.
To think about
> Give examples of business in new economy
> What is your perception of new economy? Explain the changes you see
> What do you think of the concepts of Knowledge Management?
> Think of a small company, what is the existing knowledge management you see.

> new economy requires information/knowledge: why?
> HR is the most important assets: why?
> Organizing/managing information needs technology: why?
> IS's roles are to: provide tech support/ create new ways of using tech/
suggest the better way of using tech

(some more articles)

What is a System?
A system is a group of interrelated components working together toward a common goal.
An Information System: Interrelated components working together to collect, process, store and disseminate information to support decision making, coordination, analysis and visualization in an organization

IS Resources O'Brien
Information System Activities::
Input of Data resources:: data entry/ data acquisition
Processing Data into Information:: data processing
Output of Information Products:: information products: reports/ forms
Information Quality:: updating:: time-content-form
Storage of Data Resources:: data access/ organization
Control of System Performance:: system performance/accessibility/ reliability of connection
Major Roles of IS:
Support Business Process: Office automation system
Support Decision Making: Production planning, cost reduction
Support Competitive Advantage: Investment analysis
The terms you see in MIS:
Transaction Process System:: TPS process data resulting from business transaction
Process Control System:: Monitor and control industrial process/ flow of the operation
Enterprise Collaboration System:: Workgroup, team support for communication
Management Information System:: provides information for management
Decision Support System:: provides information for decision making
Executive Information System:: Tailored information provided to executives
Expert System:: Knowledge-based system providing expert advice
Knowledge Management System:: knowledge-based system that support the creation, organization, and dissemination of business knowledge within organization
Strategic Information System:: Support operation and management process that provide a firm with strategic -competitive advantage.
Functional Business System:: system for specific functions

larger version

Knowledge, Information and Data are now considered resources, valuable resources. The new economy requires businesses to compete using not only traditional tactics and tools, but also the access of information and technical technology know-how. Therefore, the understanding and integration of three domains (organization, management and technology) determine the ability of organization to compete and grow.
MIS is the art of managing technology in an organization covering 3 issues:

1- Designing technology/communication system/database for organization for the best use and the most effective infrastructure (intranet)
2- Managing technology within organization= make the operation smooth (evaluation/fine tuning)
3- Using the technology as a strategic tool to deliver organization's policy and objectives

Also MIS is an art of integrating all sciences and managerial skills into practice: computer science, organization theory, operation management, business knowledge and psychology.
Factors to be considered:

Organization's scale and objectives-Large and small organizations are affected by the changes all alike. The scale of change and the magnitude of effects will be different. Still, the approaches are the same- How to make people change effectively and smoothly.

Leader's Vision/Knowledge- The leader's vision of technology and change is crucial, maybe the most essential one. Any changes require leadership, vision and responsibilities.

Technology Availability and the environment- Even though all are planned and thought through, some resources; technical and physical, might not be supportive

Comments: Most cases used in MIS study are western cases which have their own cultural characteristics; problem solving, underlying western culture, and its large scale of business. Therefore, in studying case study, you need to analyze and synthesize your own approach to the problems.

IS is important to business, why?:

IS => Better Information:
IS => Better Communication:
IS => Better management:
IS => Better Idea:
IS => Better Learning Process
What do I need to know to understand MIS
It's quite clear that the system will be effective as long as the analysis, design, programming and implementation are done appropriately. Laudon & Laudon has stated the importance of all knowledge in many fields needed to be integrated and managed properly which would create a system that carry out the objectives and goal of the firm.
Knowledge required for studying MIS:
computer science database management
networking
programming
business management organization
evaluating technology
change management
human resource management
knowledge management
psychology human behavior

Conceptual Framework of MIS

>Laudon & Laudon :: MIS-organization and technology
>> socio technical approach
>James O' Brien :: MIS-Managing Information Technology in the E-Business Enterprise
>> Integrating multidisplinary processes in managing technology



There are no differences in both frameworks. In fact O' Brien perception explains more in details of what are underlying factors of management and organization in IS implementation.

O' Brien focuses on management which he believes that it will assist the changes and development. Both books provide 2 perspectives of developing effective IS in existing organization (Laudon) and for hi-tech - strategic competitive advantage (O'Brien). And both are important to understand and utilize.

As mentioned earlier, different kinds of organizations, culture, scale and types of business are important. Therefore, the analysis of each case needs a careful consideration and understanding of organization and environment. Success depends on good understanding of the problem or challenge and effective solution.
a little case
Intranet::
>How can we design an intranet system for organization?
>What is your concept of intranet?
>Why should we have in the intranet?
>What can intranet do for the organization?
>What are benefits the organization will gain from the intranet?
>In order to establish the intranet concepts, what do you have to know?
Business Cases

The use of ICT:: what businesses are doing with ICT..
>Commercial Bank: Should the databases for ATM be distributed or centralized database?
>Commercial Bank: What are the problems in designing databases for Online transaction?
>News Media: Should newspaper invest on Online-News-Service?
>Wholesale business: What Macro/Lotus/Big C can do with customers' information?
>Insurance company: How can AIA take advantage of new communication technology?
>Multinational company: Will intranet and email system help CP?
>Government services: How can the police use the internet to stop the crime?
MIS in Business Environment

>MIS is a part & process of business (L&L)

The diagram shows the relationship between different disciplines and the process of carrying out business solutions. Interestingly, IS involves in all functions of business. As it is an infrastructure of the business, it is needed to be managed within each functionality (accounting, marketing etc) and throughout the organization (strategic level) which makes the designing and implementing effective IS quite a challenge.
What is your Job as an IT officer?(if you happen to be one)
.
What do you want/have to do as an IT professional?
1 System Support: provide help to all computer/technical problems in organization
2 Programmer: maintain/fix/program/design system for business applications
3 IT manager: plan for technology use in organization
4 Information support officer: design, plan and implement technology in organization
5 General Manager: use/plan technology as a strategic tool for organization
6 CIO: Chief Information Officer: use/plan technology for all functions in organization
Problems you will face as an IT professionals.
always problems..
1 System Support: users do not learn how to solve problems themselves
2 Programmer: users require more features in applications or system
3 IT manager: resistance to change or to accept new system/ better training
4 Information support officer: getting information from users in designing system
5 General Manager: making decisions on choosing/changing technology
6 CIO: Chief Information Officer: maintain e
Concepts of MIS: Management information systems
Main Ideas
1 Some problems do not need technology: understand problems and business clearly
2 Technology is costly: if you make wrong decisions
3 Problems of IS is mainly caused by human: The implementation and design of the system depend on user acceptance
4 Technology is not a business tool: Technology is organizational infrastructure
5 Productivity cannot be measured?
6 Learning technology: Teaching technology: Adapting Technology
7 Organization+management+technology = MIS
Assignment #1: answer these questions.
>Choose the best person for the Job: who will be the best MIS manager?
>Why MIS is important?

cases:
1) the book industry and digital revolution
2) China's baby step in E-Commerce
3) the case of DNA scan


How to Analyze a Business Information System Problem
Business information system problems in practice represent a combination of management, organization and technology issues. In order to appropriately approach the problem, these are steps that have to be considered:

1) identify the problem: what kind of problem is it? make sure you understand the problem clearly
2) what is the solution to the problem: are there any alternatives
3) how will this solution provide value for the firm
4) what technologies could be used to generate the solution
5) what chnages to organizational processes will be required by the solution
6) what management policy will be required to implement the solution

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