Objective of MIS

Introduction

 Managers are crucial for organizational success.

 They make decisions based on the market's needs.

 Information systems are essential tools for decision-making.

 Information is seen as a driving force for success.

Purpose and Benefits of MIS

1. Efficient Planning and Control

o Aids in planning and controlling management functions.

o Provides timely and quick information to get tasks done.

2. Performance Reporting

o Provides reports on the performance of resources: men, materials, machinery, money,

and management.

o Highlights resource utilization in the organization.

3. Cost Control

o Identifies idle time, labor turnover, wastages, losses, and surplus capacity.

o Helps in cost management.

4. Variance Analysis

o Compares actual performance with standards and budgets.

o Highlights variances for corrective actions.

5. Strength Identification

o Brings attention to the organization's strengths.

o Assists in leveraging opportunities.

6. Production Statistics

o Reports on rejection, defects, and spoilage in production.

o Analyzes their effects on costs and product quality.

 Characteristics of MIS
Introduction

 Purpose of MIS: Aids executives in making decisions to advance organizational goals.

 Gathers data from operations, external inputs, and past activities to provide actionable insights.

 Confidence in decision-making is key to MIS effectiveness.

Key Characteristics

1. Management-oriented

o Focuses on providing information for decision-making at all management levels (top,

middle, lower).

2. Integrated

o Offers a complete view of all subsystems, working as a unified entity.

3. Common Data Flows

o Manages data seamlessly to avoid duplication and redundancy.

4. Strategic Planning Oriented

o Ensures long-term usability with modifications for future needs.

5. System Approach

o Adopts a holistic approach to achieve organizational objectives.

6. Need-Based

o Designed to cater to varying information needs across management levels.

7. Understandable

o Presents information in a clear, interpretable format.

8. Relevant

o Provides information that is pertinent and meaningful to decision-makers.

9. Complete

o Contains all necessary facts to solve specific problems.

10. Available

o Readily accessible information in the desired form when needed.

11. Reliable

o Provides trustworthy, accurate, and verifiable information.

12. Concise

o Avoids information overload, providing just enough data.

13. Timely

o Delivers information at the right time to prevent missed opportunities.

14. Cost-effective

o Balances the cost of information gathering with its benefits.

15. Accuracy

o Ensures data and calculations are precise for effective decisions.

16. Usefulness

o Supplies information directly helpful to specific managerial decisions.

 Applications of MIS
1. Planning

o Provides crucial information for strategic planning stages.

2. Recording

o Produces regular operational reports for management at all levels.

3. Controlling

o Filters and delivers data for operational efficiency and strategic control.

4. Measuring

o Assists in performance metrics analysis, like manufacturing costs and profits.

5. Decision-Making

o Provides socio-economic and operational data for informed decision-making.

6. Analyzing

o Processes and analyzes data to generate specific operational insights.

7. Policy Making

o Supplies essential data for creating organizational policies.

8. Strategy Forming

o Supports strategic planning to align with organizational goals.

9. Managing

o Assists top-level management in resource allocation and organizational success.

 Benefits of MIS
1. Facilitates Planning

o Improves the quality of planning by providing relevant and accurate information.

o Addresses the challenges of managing large, complex organizations.

2. Minimizes Information Overload

o Converts extensive data into summarized, manageable formats.

3. Encourages Decentralization

o Enables authority delegation by providing performance monitoring at lower levels.

4. Brings Coordination

o Integrates specialized activities across departments.

o Links decision centers to ensure collaboration.

5. Simplifies Control

o Acts as a bridge between planning and control functions.

o Improves performance evaluation and cost-effectiveness through technology.

6. Processes Information

o Collects, processes, stores, retrieves, evaluates, and disseminates information.

7. Increases Productivity

o Reduces time, errors, and costs by leveraging technologies like OLTP and CIS.

8. Enhances Decision-Making

o Provides relevant information to solve problems and seize opportunities.

9. Improves Communication and Teamwork

o Facilitates information sharing among teams and supports collaborative tools like EDI.

10. Facilitates Organizational Transformation

o Helps businesses remain competitive, enter new markets, and innovate operations.
 Limitations of MIS
1. Dependence on Design

o An improperly designed MIS has limited relevance and functionality.

2. Cannot Replace Managerial Judgment

o Serves as a tool for decision-making but cannot replace human insight.

3. Quality of Output Depends on Input

o Outputs are only as good as the data and processes used.

4. Lack of Customization

o Requires manual analysis of information before decision-making.

5. Limited Flexibility

o May struggle to adapt to fast-changing and complex environments.

6. Quantitative Focus

o Only considers quantitative factors, neglecting qualitative aspects.

7. Less Useful for Non-Programmed Decisions

o Not ideal for creative or strategic decisions that are unstructured.

8. Dependency on Information Sharing

o Ineffective in organizations with poor information-sharing practices.

9. Affected by Organizational Instability

o Frequent changes in management, structure, or staff reduce its effectiveness.

10. Costly Implementation

o High expense of implementation may deter some organizations.

 Success and Failure of MIS

Factors Contributing to Success

1. Integration with Managerial Functions

o MIS is aligned with managerial roles and business objectives.

2. Appropriate Technology

o Uses suitable data processing and analysis technology.

3. User-Oriented Design

o Designed to meet user needs and ensure operational feasibility.

4. Continuous Surveillance

o Adapts to changing information needs with an open system design.

5. Results-Oriented

o Focuses on business outcomes and identifies causes of non-achievement.

6. Avoids Information Overload

o Prevents unnecessary data generation and "noise" in communication.

7. Considers Human Factors

o Recognizes human behavior in management processes.

8. Meets Diverse Information Needs

o Tailors information for different objectives and avoids generalization.

9. User-Friendly Design

o Ensures ease of operation and accessibility.

10. Adaptability to Changing Needs

o Designed to handle evolving information requirements.

11. Supports Critical Success Factors

o Focuses on mission-critical applications for top management needs.

12. Relies on Employee Involvement

o Requires intelligent, honest participation from employees and adherence to policies.

Factors Contributing to Failures

1. Data Processing Focus

o Designed as a data processor rather than an information processor.

2. Irrelevant Information

o Fails to provide essential managerial information, resulting in an impersonal system.

3. Ignoring Business Complexity

o Neglects the intricacies of business systems during MIS design.

4. Quality Control Neglect

o Lacks proper checks and controls for input, process, and output quality.

5. Unstreamlined Transactions

o Developed without refining transaction processing systems.

6. Insufficient Training

o Users and data generators lack proper training and understanding of their roles.

7. User Needs Overlooked

o Does not cater to critical user needs, such as query responses or user-friendly design.

8. Overreliance on Computerization

o Assumes computerized MIS can solve all managerial planning and control issues.

9. Administrative Lapses

o Deviations from standardized procedures lead to incomplete and inaccurate information.

10. Imperfect Information Delivery

o Fails to provide universally perfect information due to human biases and assumptions.

11. External and Organizational Factors

o Failures caused by the organizational environment, staff, and policies.

 Software Development Life Cycle (SDLC)
SDLC is a structured approach for developing software applications. It provides a systematic process for
planning, creating, testing, and deploying an information system.

Stages in SDLC

1. Requirement Analysis: Understand and document what the system should do.

2. System Design: Create a blueprint for the solution, including architecture, UI, and database
design.

3. Implementation: Translate designs into code and build the system.

4. Testing: Validate the system against requirements.

5. Deployment: Release the software for use.

6. Maintenance: Update and fix software as needed over time.

1. Waterfall Model
Description

The Waterfall Model is a linear and sequential approach. Each phase must be completed before moving
to the next. There is little room for changes once a phase is complete.

Advantages

 Easy to understand and manage.

 Clearly defined milestones.

 Best suited for projects with well-understood requirements.

Disadvantages

 Inflexible to changes during development.

 No working software until the end.

 Not suitable for complex and evolving projects.

2. Spiral Model
Description

The Spiral Model emphasizes iterative development and risk management. It combines elements of both
iterative and Waterfall models. Each cycle (spiral) results in a more refined product.

Advantages

 Focuses on risk assessment.

 Suitable for large and complex projects.

 Allows for iterative refinement of requirements.

Disadvantages

 High cost and time.

 Requires specialized expertise in risk analysis.

3. Prototyping Model

Description

The Prototyping Model involves building a prototype (working model) before developing the final
system. The prototype is iteratively refined based on user feedback.

Advantages

 Improves user involvement.

 Reduces misunderstandings in requirements.

 Early visibility of the system.

Disadvantages

 Can lead to scope creep.

 May increase development costs.

4. Iterative Model

Description

The Iterative Model breaks the development process into smaller cycles. Each iteration delivers a
functional version of the product. Enhancements are added in subsequent iterations.

Advantages

 Delivers early, usable versions of the product.

 Easy to incorporate feedback and changes.

 Risk is reduced with each iteration.

Disadvantages

 Requires careful planning and resource management.

 May extend the project timeline.