MIS concepts

MIS – Its other names
 Information processing system
 Information and decision system
 Organizational information system
 Business information system

M I S
 Management
 Information
 System
MIS
Management Information System

 ‘ the art of getting things done through the
effort of others
 Planning
 Organizing
 Directing
 Controlling
 posdcorb
1. Management

What do Managers do?
 Traditional
 Organizing
 Planning
 Control
 Mintzberg
 Interpersonal
 Informational
 Decisional
 Luthans
 Traditional 50%
 Formal Communication 30%
 Networking 20%

2. Information
 Information: Clusters of facts that are
meaningful and useful to human beings in
the processes such as making decisions
 Data processed into a meaningful form is
information.

 Data: Streams of raw facts representing
events such as business transactions
 Information: Clusters of facts that are
meaningful and useful to human beings in
the processes such as making decisions
Data and Information

3. System
 A system is a group of interrelated
components working toward the attainment
of a common goal by accepting inputs and
producing outputs in an organized
transformation process.
 Interrelation
 Subsystems
 supersystem

What is a System?
 A system is…
 A set of interrelated components
 With a clearly defined boundary
 Working together
 To achieve a common set of objectives
 By accepting inputs and producing outputs
 In an organized transformation process

Systems: Some Examples
 University
 Inputs: Students, Faculty,
Textbooks
 Processes:
Education/Courses
 Output: graduates
 Feedback: surveys,
grades
 Toyota Plant
 Inputs: raw materials,
components
 Processes: assembly line
 Output: mini-vans
 Feedback: customer
surveys, quality reports
 Fast Food IS
 Inputs: consumer orders
 Processes: processing
software
 Output: receipts, cook’s
order list
 Feedback: invalid entry
message
 Video Store IS
 Inputs: rentals, returns
 Processes: processing
software
 Output: reports, rental
agreement
 Feedback: error repots

Three basic implications of a
system
 Must be designed to achieve a
predetermined objective
 Interrelationships and interdependence
must exist among the components
 The objectives of the organisation as a
whole have a priority than the objectives
of the sub system

Elements or components of a
system & its role
 Input - Capturing and assembling
 Processor - transformation
 Outputs - value to user
 Controls - guides the system
 Feedback - actual against standard
 Environment - Super system
 Boundaries and interface -limits when
interfaces with another

Manufacturing
Process
Input of
Raw Materials
Output of
Finished Products
Environment
Other Systems
Control by
Management
Control
Signals
Control
Signals
Feedback
Signals
Feedback
Signals
System Boundary
A Manufacturing System: Generic Components

Systems thinking
Systems Thinking has been defined as an approach to
problem solving, by viewing "problems" as parts of an
overall system, rather than reacting to specific part,
outcomes or events and potentially contributing to
further development of unintended consequences.
Systems thinking is not one thing but a set of habits or
practices within a framework that is based on the
belief that the component parts of a system can best
be understood in the context of relationships with
each other and with other systems, rather than in
isolation.
Systems thinking focuses on cyclical rather than linear
cause and effect.

Types of system
Aman Jindal (MIS), page 9
1.Conceptual &
Empirical
2.Natural &
Manufactured
3.Social, People-
machine and Machine
4.Closed & Open
System
5.Adaptive & Non
Adaptive
6. Deterministic &
Probabilistic
7. Permanent &
Temporary
8. Stationary & Non-
stationary
9. Sub system & Super
system

Information System
The information system is a system of group of
interrelated components working together
towards a common goal by accepting inputs and
producing outputs in an organized
transformation process.
In this system there are three basic components or
functions are involved. i.e., Input, Processing
and Output.

What is an Information
System?
 An organized combination of…
 People
 Hardware and software
 Communication networks
 Data resources
 Policies and procedures
 This system…
 Stores, retrieves, transforms, and
disseminates information in an organization

What Is an Information System -
Contd
 IS Resources:
 Hardware Resources
 Software Resources
 People Resources
 Data Resources
 Network Resources
 Products:
 Paper Reports
 Visual Displays
 Multimedia Documents
 Electronic Messages
 Graphics images
 Audio Responses

Functions of an Information
System
Input of
Data
Resources
Processing Data
Output of
Information
Products
Control of System Performance
Storage of Data Resources
Classify, sort, summarize,
Analyze, arrange, calculate
etc

 Information systems perform three vital
roles in business firms.
They support:
 Business processes and operations
 Business decision making; and
 Strategic competitive advantage

What is MIS?
 Right Information
 To the right person
 At the right place
 At the right time
 In the right form
 At the right cost

What is Management
Information System?
(MIS) are designed to provide past, present, and future
routine information appropriate for planning, organizing, and
controlling the operations of a functional area in an
organization
A manual or computerized system that collects, processes,
and reports data needed to manage a planning delivery
system.
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

 is an integrated user-machine system for
providing information to support
operations , management , and decision
making functions in an organization.
The system utilizes computer hardware and software
,manual procedure , models for analysis, planning
,control and decision making and a database
- Davis & Olson
MIS – Definition

 Information system that focuses on
developing business applications that
provide managerial end users with
predefined management reports that
would give managers the information they
needed for decision making process
- James O’Brien
MIS – Definition

Characteristics of MIS
 Management oriented
 Management directed
 User-machine system
 Integrated system
 Involves large planning
 Sub systems
 Data base
 Information as a resource
 Flexibility in use

IV. Common data flows: The integration of different sub systems will lead to a
common data flow which will further help in avoiding duplicity and
redundancy in data collection, storage and processing. For example, the
customer orders are the basis for many activities in an organization viz. billing,
sales for cashing, etc. Data is collected by a system analyst from its original
source only one time. Then he utilizes the data with minimum number of
processing procedures and uses the information for production output
documents and reports in small numbers and eliminates the undesirable data.
This will lead to elimination of duplication that simplify the operations and
produce an efficient information system.
V. Heavy planning-element: The preparation of MIS is not a one or two day
exercise. It usually takes 3 to 5 years and sometimes a much longer period. So
the system expert has to keep 2 things in mind – one is that he has to keep
future objectives as well as the firm’s information well in advance and also he
has to keep in mind that his MIS will not be obsolete before it gets into action.

VI. Sub System concept:When a problem is seen in 2 sub parts, then the better
solution to the problem is possible. Although MIS is viewed as a single entity
but for its effective use, it should be broken down in small parts or subsystems
so that more attention and insight is paid to each sub system. Priorities will be
set and phase of implementation will be made easy. While making or breaking
down the whole MIS into subsystems, it should be kept in mind that the
subsystems should be easily manageable.
VII. Common database:This is the basic feature of MIS to achieve the
objective of using MIS in business organizations. It avoids duplication of files
and storage which leads to reduction in costs. Common database means a
“Super file or Master file” which consolidates and integrates data records
formerly stored in many separate data files. The organization of the database
allows it to be accessed by each subsystem and thus, eliminates the necessity of
duplication in data storage, updating, deletion and protection.

VIII. Computerized: MIS can be used without a computer. But the use of
computers increases the effectiveness and the efficiency of the system. The
queries can be handled more quickly and efficiently with the computerized
MIS. The other benefits are accuracy, storage capacity and timely information.
IX. User friendly/Flexibility: An MIS should be flexible i.e. there should be
room for further modification because the MIS takes much time in preparation
and our environment is dynamic in nature.MIS should be such that it should be
used independently by the end user so that they do not depend on the experts.
X. Information as a resource: Information is the major ingredient of any MIS.
So, an MIS should be treated as a resource and managed properly

Components of MIS
1. Hardware
2. Software
3. Control
4. Databases and application programs
5. People
6. Telecommunications and networks

Typical Inputs and Outputs
 Inputs: Information from the TPS
 Outputs: hard and softcopy reports
 Scheduled reports
 On-demand reports
 Key-indicator (business
fundamentals)
 Exception reports
MIS 175 Spring 2002 Chapter 10 39

STRUCTURE OF MIS
MIS Structure may be described by variety of
different approaches, such as:
1. Physical components
2. IS Processing functions
3. Decision support (Structured & Un
structured)
4. Levels of management activities
5. Organisational functions

1. Physical components
1. Hardware
2. Software
3. Database
4. Procedures
5. Operating personnel
6. Input and output

2. Processing functions
(What system does)
1. To process transactions
2. To maintain master files
3. To produce reports
4. To process enquiries
5. To process interactive support
applications

3. Based on output for
users
1. Transaction documents – sales invoice,
etc
2. Preplanned reports
3. Preplanned inquiries
4. Adhoc reports
5. User Machine dialog

5. Based on organisational
functions
Matrix of functional subsystems and management
activities such as strategic planning,
management control, operational control,
transaction processing
o Sales & Marketing subsystem
o Production subsystem
o Logistics subsystem
o Personnel subsystem
o Finance & accounting subsystem
o Information processing subsystem
o Top management subsystem

Impacts of MIS
 Economic Impact
 Transaction Cost
 Organiastional & Behavioural Impact
 IS flattens organisations
 Virtual organisations
 Organisational resistance to change

47
Types of OSS
 Transaction Processing Systems
 Record and process business transactions
 Example: sales processing, inventory systems,
accounting systems
 Process Control Systems
 Monitor and control physical processes
 Example: using sensors to monitor chemical
processes in a petroleum refinery
 Office Automation Systems
 Digitizes the office processes

Chapter 1 Foundations of
Information Systems in Business 48
Types of Management Support
Systems
 Management Information Systems (MIS)
 Reports and displays
 Example: daily sales analysis reports
 Decision Support Systems (DSS)
 Interactive and ad hoc support
 Example: a what-if analysis to determine where to
spend advertising dollars
 Executive Information Systems (EIS)
 Critical information for executives and managers
 Example: easy access to actions of competitors

Other Categories of Information
Systems
Expert Systems
Knowledge Management Systems
Functional Business Systems
Strategic Information Systems
Cross-Functional Information Systems

Types of Information Systems
IN DETAIL

1. Transaction Processing Systems
2. Office Automation Systems
3. Decision Support Systems
4. Management Information Systems
5. Expert Systems
Types of Information Systems

• A transaction processing system is used to
handle the processing and tracking of
transactions.
• A transaction is an event that can occur as
a series of steps, such as taking and
fulfilling an order from a customer.
Transaction Processing Systems

• Office automation systems are used to
automate routine office tasks, such as the
creation of documents, billing, and others.
• Office automation systems can be built from off-
the-shelf applications – standard productivity
software that most users are familiar with.
• In some office systems, commercial software
may be customized to perform specific tasks,
but this is not always necessary.
Office Automation Systems

• A management information system (MIS) is designed to provide
information that is design for use by different types of managers.
• This type of system can create reports that meet the needs of managers at
different levels.
• Senior-level managers need different types of information than mid- or
low-level managers. These people may need entirely different types of
information, or to view the same type of information in unique ways.
Management Information Systems

• A decision support system collects various types of business data, and is
used to generate special reports that help managers make decisions.
• A decision support system may use data from a company's transaction
processing system and from external sources, such as stock market reports,
information about competitors, and so on.
• These systems provide highly tailored, structured reports that can be used
for very specific business situations.
Decision Support Systems

Input and feedback
Query, model and
analysis results
Interaction
Manager or
Staff Specialist
Decision Support
Software
Mathematical modeling tools
Database manager
External Data Sources
Governmental
Customers and
Supplies
Competition and
global markets

• An expert system is a specialized information system that
performs tasks normally done by people, such as making
decisions.
• Expert systems are used to approve bank loans, make
large-scale purchasing decisions, and assist with
medical diagnoses.
• Expert systems rely on huge, detailed databases
(knowledge bases). Special software, called an inference
engine, analyzes data to answer questions or make
choices.
Expert Systems

Historical
Perspective
•Electronic data processing (EDP),
•Transaction processing systems (TPS)
•Decision support systems (DSS) was born
•Executive information systems EIS
•Expert systems
•Knowledge management systems
•Enterprise Resource Planning (ERP) systems.
•MIS to e-commerce

History of the Role of IS
Data
Processing
Management
Reporting
Decision
Support
Strategic &
End User
Electronic
Commerce
1950-1960 1960-1970 1970-1980 1980-1990 1990-2000
Electronic
Data
Processing
- TPS
Management
Information
Systems
Decision
Support
Systems
- Ad hoc
Reports
End User
Computing
Exec Info Sys
Expert Systems
SIS
Electronic
Business &
Commerce
-Internetworked
E-Business &
Commerce

Functions of MIS
1. data processing
It includes the collection, transmission, storage,
processing and output of data. It simplifies
the statistics and reduces to the lowest cost
by supplying an unified format.
2. function of prediction
It predicts the future situation by applying
modern mathematics, statistics or
simulation.

3. function of plan
It arranges reasonably the plans of each
functional department in accordance with the
restrictions afforded by enterprises and provides
the appropriate planning reports according to
different management.
4. function of control
It monitors and inspects the operation of plans
and comprises with the differences between
operation and plan in accordance with the data
afforded by every functional department, and be
assistant to managers to control timely each
method by analyzing the reasons why the
differences comes into being

5. function of assistance
It derives instantly the best answers of
related problems by applying to various
of mathematics' mode and analyzing a
plentiful data stored in computers in the
hope of using rationally human
resource, financial resource, material
resource and information resource for
relative abundant economic benefits.

Functional Aspects of MIS
 MIS is an integrated collection of
functional information systems, each
supporting particular functional areas.
Schematic

An Organization’s
MIS
Financial
MIS
Marketing
MIS
Human
Resources
MIS
Etc.
Accounting
MIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databases
of
external
data
Databases
of
valid
transactions
Transaction
processing
systems
Business
transactions
Business
transactions
Extranet
Internet
Etc.

Financial MIS
 Provides financial information to all financial
managers within an organization.
 MIS has many responsibilities to the accounting
function. Payroll processing and reporting, as well
as tax accountability are major functions for the
MIS department. In addition, all reporting and
documentation for payroll and tax matters fall to
MIS. Weekly, monthly, quarterly and year-end
reporting to management are also important duties
for MIS. Compliance with all federal, state and
local agencies, as well as reports to both
governmental agencies and management are also
vital for your MIS department.
Schematic

Financial statements
Uses and management
of funds
Financial statistics
for control
Operational
databases
Databases
of valid
transactions
for each
TPS
Transaction
processing
systems
Business
transactions
Business
transactions
Internet or
Extranet
Financial
MIS
Business
transactions
Databases of
external data
Databases of
internal data
Financial
DSS
Financial
ES
Financial
applications
databases
Customers,
Suppliers

Inputs to the Financial
Information System
 Strategic plan or corporate policies
 Contains major financial objectives and often
projects financial needs.
 Transaction processing system (TPS)
 Important financial information collected from
almost every TPS - payroll, inventory control,
order processing, accounts payable, accounts
receivable, general ledger.
 External sources
 Annual reports and financial statements of
competitors and general news items.

Financial MIS Subsystems and
Outputs
 Financial subsystems
 Profit/loss and cost systems
 Auditing
 Internal auditing
 External auditing
 Uses and management of funds

Manufacturing MIS
Schematic
Perhaps no other department depends on your MIS department more
than operations. Sales and profits information must be received at least
daily in order for your company to operate properly. Staffing decisions,
including scheduling assignments, are based on reports generated
through your MIS department. Monthly, quarterly and yearly financial
statements, as well as expense reporting information must be received by
operations from your MIS associates. Without MIS input, operations is
literally flying blind and cannot function properly in this highly competitive
environment.

Quality control reports
Process control reports
JIT reports
Operational
databases
Databases
of valid
transactions
for each
TPS
Transaction
processing
systems
Business
transactions
Business
transactions
Internet or
Extranet
Manufacturing
MIS
Business
transactions
Databases of
external data
Databases of
internal data
Manufacturing
DSS
Manufacturing
ES
Manufacturing
applications
databases
Customers,
Suppliers
MRP reports
Production schedule
CAD output

Inputs to the Manufacturing
MIS
 Strategic plan or corporate policies.
 The TPS:
 Order processing
 Inventory data
 Receiving and inspecting data
 Personnel data
 Production process
 External sources

Manufacturing MIS Subsystems
and Outputs
 Design and engineering
 Master production scheduling
 Inventory control
 Manufacturing resource planning
 Just-in-time inventory and manufacturing
 Process control
 Computer-integrated manufacturing (CIM)
 Quality control and testing

Marketing MIS
 marketing function depends on MIS for many of
its most important activities. Sales and product
analysis information is required and generated
daily by your MIS department. Ordering
information, from which product details are
generated, must be quickly and accurately
received through the function of MIS associates.
Decisions on product placement, as well as
marketing strategies are created through the
efforts of MIS reports. Marketing management
makes all major decisions after analysis of data
generated by your MIS team.
Schematic

Sales by customer
Sales by salesperson
Sales by productOperational
databases
Databases
of valid
transactions
for each
TPS
Transaction
processing
systems
Business
transactions
Marketing
MIS
Databases of
external data
Databases of
internal data
Manufacturing
DSS
Manufacturing
ES
Marketing
applications
databases
Pricing report
Total service calls
Customer satisfaction

Inputs to Marketing MIS
 Strategic plan and corporate policies
 The TPS
 External sources:
 The competition
 The market

Marketing MIS Subsystems and
Outputs
 Marketing research
 Product development
 Promotion and advertising
 Product pricing

Human Resource MIS
 Human Resources relies heavily on your MIS
department. All benefits information, from
program administration fall to the MIS
department to implement and track.
 In addition, the training and development
department relies on MIS to enroll and monitor
participants in their training program through
their learning management systems.
 Performance reviews and salary administration
also must be managed through your MIS
department. All reports for all employees also
are a major accountability for the MIS team.

Benefit reports
Salary surveys
Scheduling reportsOperational
databases
Databases
of valid
transactions
for each
TPS
Transaction
processing
systems
Business
transactions
Human
Resource
MIS
Databases of
external data
Databases of
internal data
Manufacturing
DSS
Manufacturing
ES
Human
resource
applications
databases
Training test scores
Job applicant profiles
Needs and planning
reports

Inputs to the Human Resource
MIS
 Strategic plan or corporate policies
 The TPS:
 Payroll data
 Order processing data
 Personnel data
 External sources

Human Resource MIS
Subsystems and Outputs
 Human resource planning
 Personnel selection and recruiting
 Training and skills inventory
 Scheduling and job placement
 Wage and salary administration

Other MISs
 Accounting MISs
 Provides aggregated information on accounts
payable, accounts receivable, payroll, and
other applications.
 Geographic information systems (GISs)
 Enables managers to pair pre-drawn maps or
map outlines with tabular data to describe
aspects of a particular geographic region.

DECISION SUPPORT
SYSTEMS
A decision support system is a computer application
that helps users analyze problems and make business
decisions more confidently. It uses data routinely
collected in organizations and special analysis tools
to provide information support to complex decisions.
DSS is more suited to handling unique and non-routine
decision problems. Each problem might require a
different approach to problem definition, analysis and
resolution.

DECISION SUPPORT
SYSTEMS DSS is designed to support managerial decision-making, usually,
at middle and top levels of management.
 Decisions made at the top level are mostly futuristic and non-
repetitive in nature. Such decision situations are highly uncertain and
even specification of information requirements for decisions are
difficult.
 They are classified as non-programmable or unstructured decision
situations. The cost of a wrong decision is usually very high, for
example a decision to sell off a line of business.
 This is in sharp contrast to programmable or structured decisions
where the decision procedure can be well defined and every
information requirement can be pre-specified. Most of the decisions
taken at lower levels of management fall into this category.

CHARACTERISTICS OF DSS
 It is designed and run by managers.
 It contains a database drawn from internal files and external
environment.
 It focuses on decision processes rather than on transaction
processing.
 It is concerned with a small area of managerial activity or a small
part of a large problem.
 It permits managers to test the probable results of alternative
decisions.
 It supports decision-making, usually in solving semi-structured
complex problems.
 It helps in refining managerial judgment applied to problem solving.
 It improves managerial decisions and thereby managerial
effectiveness.
 The decision maker retains control over decisions throughout the
decision process.

A combination of
Hardware
Software
Infrastructure and
Trained personnel
organized to facilitate
Planning
Control
Coordination and
Decision Making
in an organization.
DEFINITION:

 Executive Support System (ESS)
 Management Information System (MIS)
 Decision Support System (DSS)
 Knowledge Management System (KMS)
 Transaction Processing System (TPS)
 Office Automation System (OAS)
TYPES OF INFORMATION SYSTEMS

An Executive Support System ("ESS") is
designed to help senior management make
strategic decisions.
Executive Support System

Decision-support systems ("DSS") are
specifically designed to help management make
decisions in situations where there is
uncertainty about the possible outcomes of
those decisions.
Decision Making System

A management information system (“MIS”) is
mainly concerned with internal sources of
information and summarizes it into a series of
management reports.
Management Information
System

Knowledge Management Systems ("KMS") exist
to help businesses create and share
information.
Knowledge Management
System

Transaction Processing Systems ("TPS") are
designed to process routine transactions
efficiently and accurately.
Transaction Processing
System

Office Automation Systems are systems that try
to improve the productivity of employee who
need to process data and information.
Office Automation System

Basically there are 5 components available.
Hardware
Software
Data
Procedures
People
Components of Information
System

The term hardware refers to machinery.
This category includes the computer itself,
which is often referred to as the central
processing unit (CPU), and all of its support
equipments.
Hardware

The term software refers to computer
programs and the manuals (if any) that support
them.
Software

Data are facts that are used by programs to
produce useful information.
Data

Procedures are the policies that govern the
operation of a computer system.
Procedures

People mean the end user of the Systems.
Every CBIS (Computer Based Information
System) needs people if it is to be useful.
People

The Systems Development
Life Cycle
 The Systems Development Life Cycle
(SDLC) is a 6 step procedure The six steps
of the SDLC are:
1. Analysis of the Current System
2. Define the new System Requirements
3. Design the new System
4. Develop the new System
5. Implement the new System
6. Evaluate and Maintain the System

Step 1: Analysis of the
Current System
 an analysis of the current system
must be made to determine
problems, opportunities and
objectives.
 The goal of systems analysis is to
obtain a clear understanding of the
system and its shortcomings and to
determine opportunities for
improvement.

Step 2: Define New Requirements
 A business could improve its MIS so that it
could handle more time cards per week. In
addition, it might want to add some features.
All of these would require changes to its
MIS.
Some required features could be:
 Automatically update personnel file
Automatically calculate regular and OT
hours
Automatically generate weekly/yearly to date
figures

Step 3: Design the New
System
 How the system is to be constructed is
determined. A computer specialist will be
brought in, and s/he will design the new
system.
The computer specialist has two goals to meet:
1. Design of the new system: Using design tools,
as well as systems flowcharts, program
flowcharts, etc., the computer specialist will
design the new system.
2. Controls and Security: Controls and security
passwords must be established here.

Step 4: Develop the New
System
 After the system has been designed and
approved, it must be developed. This is
when the hardware and software is actually
acquired.
 In addition, users must be trained on the new
system. Sometimes the vendors of the
software give training seminars. Also, any
new procedures or polices must be taught.
 Lastly, the system must be tested.

Step 5: Implement the New
System
After the system has been developed and
tested, it must be implemented. According to
the type of organizations
 Direct Implementation
 Parallel Implementation
 Phased Implementation
 Pilot Implementation

Step 6: Post-implementation
Evaluation and Maintenance
After the system has been implemented,
and has been running for a few months,
an evaluation is made to determine if it
is meeting its objectives.

MIS Planning
The management information system needs
good planning. This system should deal with
the management information not with data
processing alone. It should provide support
for the management planning, decision
making and action. It should provide support
to the changing needs of business
management.

Planning of MIS involves the following
steps:
 Defining the problem or decision area
 System objectives
 Establishing system constraints:
 Determining information needs:
 Determination of information sources:
 Finding out alternative solutions:
 Evaluating alternative solutions:
 Selecting the best alternative:
 Preparation of design report:
 Implementing and monitoring the selected alternative:
 Documentation

Following are the contents of
MIS planning

1. Set MIS Goals and
Objectives
 It is necessary to develop the goal and
objectives for the MIS which will support the
business goals.
 The MIS goals and objectives will consider
management philosophy, policy constraints,
Business risk, internal and external
environment of the organization and
business.
 The goals and objectives of the MIS would
be so stated that they can be measured.

2. Strategy for Plan
Achievement
 a) Development Strategy : Ex. an online, batch ,
a real time
 b) System Development Strategy : Designer
selects an approach to system development like
operational verses functional, accounting verses
analysis.
 c) Resources for the Development : Designer
has to select resources. Resources ca be in-
house verses external, customized or use of
package.
 d) Manpower Composition : The staff should
have an analyst and programmer

3. The Architecture of MIS
 The architecture of the MIS plan provides a
system and subsystem structure and their
input, output and linkage.
 It spells out in details the subsystem from
the data entry to processing, analysis to
modeling and storage to printing.

4. The System Development
Schedule
 A schedule is made for development of the
system.
 While preparing a schedule due
consideration is given to importance of the
system in the overall information
requirements.
 This development schedule is to be weighed
against the time scale for achieving certain
information requirements.

5. Hardware and Software Plan
 Giving due regards to the technical and
operational feasibility, the economics of
investment is worked out.
 Then the plan of procurement is made after
selecting the hardware and software.
 One can take the phased approach of
investing starting from the lower
configuration of hardware going to the
higher as development take place.

Analyze the
organization’s
environment
Forecast internal
and external
developments
Evaluate
accomplishments
and resources
Establish
mission
goals
objectives
Develop
Strategies
Policies
Tactics
Develop
implementation
methods and
control
Articulate the
organization’s
plan
Feedback
Planning Process

Approaches to Development
of MIS
There are two basic approaches for
development of MIS

a) System development life
cycle
1. Analysis of the Current System
2. Define the new System Requirements
3. Design the new System
4. Develop the new System
5. Implement the new System
Evaluate and Maintain the System

b) Prototyping
Prototyping is a process of progressively
ascertaining the information needs,
developing methodology, trying it out on
a smaller scale with respect to the data
and the complexity, ensuring that it
satisfies the needs of the users, and
assess the problems of development
and implementation.

 This process, therefore, identifies the
problem areas, inadequacies in the
prototype visa is fulfillment of the
information needs. The designer then
takes steps to remove the inadequacies.
This may call upon changing the
prototype of the system, questioning the
information needs, streamlining the
operational systems and procedures
and move user interaction.

 System analysts are the facilitators of the
study of the problem and needs of a
business to determine how the business
systems and information technology can
best solve the problem and accomplish
improvements for the business.
 The system analyst is responsible for
examining the total flow of data throughout
the organization.

 Various aspects of an organization like personnel
interactions and procedures for handling problems
of the computer are studied by him.
 His main role is as consultant, supporting and
maintenance expert, he should work with a cross
section of people and should have the experience
of working with computers.
 He is a problem solver and takes problem as a
challenge and enjoys meeting challenges.
 He knows how to use the right tools, techniques
and experience at the right time.

In short -
 Systems analysts act as
 Outside consultants to businesses
 Supporting experts within a business
 As change agents
 Analysts are problem solvers, and
require communication skills
 Analysts must be ethical with users and
customers

Once the Analysis Phase begins, the
analyst plays a key role in making sure
that the overall project successfully
meets the needs of business. This
includes:

 Analyzing and understanding the current state
processes
 Developing an understanding of how present
and future business needs will impact
 Identifying the sources of requirements
 Developing a Requirements Management Plan
and disseminating the Plan to all stakeholders
 Identifying and documenting all business,
technical, product and process requirements
 Prioritize and rationalize the requirements
 Helping to define acceptance criteria for
completion of the solution

 Again, this does not mean that the analyst
physically does all of this work. There may
be other people on the team that contribute,
including the project manager. However, if
the finished solution is missing features, or if
the solution does not resolve the business
need, then the analyst is the person held
accountable.

Analyst Skills
Generally, analysts must have a good set
of people skills, business skills, technical
skills and soft skills to be successful.
These include:

 Good verbal and written communication
skills, including active listening skills.
 Well organized and knowing good processes
to complete the work
 Building effective relationships with
stakeholders.
 Careful and proactive communications
regarding requirements and changes.
 Negotiating skills to build a final consensus
 Ensuring that stakeholders know the
implications of their decisions, and providing
options and alternatives when necessary.

 Recognize IT as an indispensible resource
 Understand that IT is a complex resource
 Regard IT as owned by the entire organization
 Regard ISs as a source for gaining strategic
goals
 View ISs as a tool to control power
136

User Involvement
 The extent of user involvement depends on
organisation philosophy and attitude of system
analyst.
 Greater the involvement, more effective the
system would be
 Involvement helps in identifying the potential
problem areas that would require change

Conditions for user involvement
1. Job security
2. Trust in the ability of the system analyst
3. Trust in the users by the system analyst
and openness to accept suggestions
4. Common goal for users and analyst

Methods of involvement
 Formal method: representatives of the
departments in the committees
 Less formal method: regular meetings

MIS concepts

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