Unit 2

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MANAGEMENT: Management has been define in process or activities that describe what

managers do in the operation for their organization plan, organize, initiate and control
operations. They plan by setting strategies and goals and selecting the best course of action
to achieve the goals. They organize the necessary tasks for the operational plan, set these
tasks up into homogenous groups and assign authority delegation; they control the
performance standards and avoiding deviation from standard.

Here are some of the important roles of the MIS:

➢ The MIS satisfies the diverse needs through variety of systems such as query
system, analysis system, modelling system and decision support system.
➢ The MIS helps in strategic planning, management control, operational control and
transaction processing. The MIS helps in the clerical personal in the transaction
processing and answers the queries on the data pertaining to the transaction, the
status of a particular record and reference on a variety of documents.
➢ The MIS helps the junior management personnel by providing the operational
data for planning, scheduling and control, and helps them further in decision-
making at the operation level to correct an out of control situation.
➢ The MIS helps the middle management in short term planning, target setting and
controlling the business functions. It is supported by the use of the management
tools of planning and control.
➢ The MIS helps the top level management in goal setting, strategic planning and
evolving the business plans and their implementation.
➢ The MIS plays the role of information generation, communication, problem
identification and helps in the process of decision-making. The MIS, therefore,
plays a vital role in the management, administration and operation of an
organization.
DESIGN OF INFORMATION SYSTEM
DEVELOPMENT OF INFORMATION SYSTEM, IMPLEMENTATION, TESTING AND
CONVERSION
The systems development life cycle comprises different phases, namely system analysis,
design, coding, testing, and implementation and maintenance.
System Analysis
System analysis is a process of examining the system with the potential goal of improving or
modifying it. It consists of understanding the working of the existing system, defining the
problems, identifying their reasons or the business opportunities that we want the system to
seek. The aim of this phase is to determine the requirements of the proposed system or the
features of the system. The system analysis phase comprises three activities, namely
➢ system investigation
➢ feasibility study
➢ requirements definition
System Investigation
This is the first step involved in system analysis that is performed to determine whether the
user’s request to change or improve the existing system is valid. To determine this, an
investigation team is made which includes one or two system analysts and representatives of
the departments where the new system will be installed. This team interviews the staff to
study the problems they have with the existing systems. This study gives them the idea of the
way the workers want the new information system to function. After investigation, the team
prepares a written report that summarizes the objectives and scope of the problem.
Feasibility Study
If the preliminary report concludes that the need of a new information system is justified,
then a more comprehensive study of the proposed system begins by a larger investigation
team. The objective of this team is to determine the feasibility of the proposed system. In the
feasibility study, the information needs of the users, resource availability, cost estimates for
system development, benefits of the system to the organization after it is developed and the
cost to be incurred on its maintenance are determined. While conducting feasibility study,
the important aspects that are examined are the
➢ technical feasibility,
➢ operational feasibility
➢ economic feasibility
Technical feasibility assesses the current resources (such as hardware and software) and
technology, which are required to accomplish the user requirements in the software within
the allocated time and budget. For this, the software development team ascertains whether
the current resources and technology can be upgraded or added in the software to
accomplish specified user requirements. The following are the purposes of technical
feasibility:  To analyse the technical skills and capabilities of the system development team
Operational feasibility assesses whether the new system performs all the intended
operations. The following are the purposes of operational feasibility: To determine whether
the problems anticipated are of high priority or not. To determine whether the solution
suggested by the system development team is acceptable or not. To analyse whether users
will adapt to a new software or not.
A system is said to be economically feasible if it focuses on the following issues:  Cost
incurred on system development to produces long-term gains for an organization.  Cost
required to conduct full system investigation.  Cost of hardware, software, development
team and training.
Requirements Definition
Once it is determined that the proposed system is feasible, the next thing that the analyst
needs to identify is the system requirements, that is, what functions the system is going to
perform or what features it will include to perform its tasks.
System Implementation and Maintenance
Once the system is developed, it is implemented and made operational. The implementation
of the system involves two main activities, which are training and conversion. In most cases,
training takes place before conversion. However, if training is done on the job, it may occur
after conversion.
The Evolution of Management Information Systems (MIS)

A management information system (MIS) is a computer system that gathers data from
multiple business systems, analyzes the information, and provides reports that help guide
management in decision-making.

MIS started as a data capturing and processing system and evolved into a more complex and
intelligent system. Here’s how MIS evolved through the years.

1950-1960: Electronic Data Processing (EDP)

Electronic Data Processing (EDP) systems, also called Transaction Processing Systems
(TPS), were groundbreaking at the time. It was the first large-scale computer information
system to centralize and process day-to-day transactions and activities such as cash
deposits, ATM transactions, and payment orders. Shifting from manual to electronic made
transaction processing and record-keeping a much faster process.

1960-1970: Management Information Systems (MIS)

1970-1980: Decision Support Systems (DSS)


Decision Support System (DSS) provided historical and ad hoc reports on both internal and
external information. For example, internal sales reports and external market pricing. With
this came the need for expert skills to manage these computer networks. Information
technology (IT) soon became a burgeoning career and a degree in Management Information
Systems became sought after.

1980-1990: Executive Information Systems (EIS)

As PCs put power in the hands of executives, they could purchase software tailored to their
department’s needs, such as accounting, project management, and HR systems. It resulted in
multiple systems within an organization working independently. This led to Executive
Information Systems (EIS), a more refined version of the DSS system. It allowed executives
to analyze their department’s output and how it impacted the business’s overall
performance.

1990-2000: Enterprise Resource Management (ERP) Systems

Multiple information systems that were not integrated resulted in employees wasting time
duplicating information across systems. MIS had to become efficient. It did that by
creating Enterprise Resource Management (ERP) systems that integrated knowledge
management systems and expert systems.

• Knowledge-based systems organize and disseminate business knowledge within an


organization. Example: placing a best practices resource on the intranet.
• Expert systems started to use artificial intelligence to provide advice and
solutions. Example: proposing faster delivery routes or assessing risk profiles for
credit applications.

How Is MIS Changing?

MIS systems are becoming more intelligent. Most of the trends below are not new but they
will continue to shape how management information systems function in the future.

1. Automation and cross-functional integration

2. Big data analytics

3. Artificial intelligence (AI)

4. Cyber security
Elements of MIS

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