devlopment of mis

7/29/2019 Devlopment Of MIS

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Development Process of MIS


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MIS PlanMIS goals and objectives

It is necessary to develop the goals and objectives for the MIS which will

support the business goals which will consider management philosophy,

policy constraints, business risks, internal and external environment of the

organization and the business.

The goals and the objectives of the MIS would be so stated that they canbe measured.

The typical statements of the goals are as under:

Provide on-line information on the stocks, markets and the accounts

balances.

The query processing should not exceed more than three seconds.

The focus of the system will be on the end user computing and access

facilities.

Information support will be the first in the strategic areas of

management such as marketing or service or technology.


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Business VS MIS

Business Plan MIS PlanBusiness goals and objectives. Management information system,

objectives, consistent to the business

goals and objectives.

Business plan and strategy Information strategy for the business

plan implementation playing asupportive role.

Strategy planning and decisions. Architecture of the Management

Information system to support

decisions.Management Plan for execution and

control.

System development schedule,

matching the plan execution.

Operation plan for the execution. Hardware and software plan for the

procurement and the implementation


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Strategy Planning

Development strategy: An online, a batch, a realtime.

System Development Strategy: An approach tothe system development Operational versusFunctional; Accounting versus Analysis; Databaseversus Conventional Approach; Distributed versusDecentralized processing; one Database versusMultiple databases.

Resource for System Development: In-houseversus external, customized development versusthe use of packages


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Vision/Mission / Goals/ Objective

Vision - A vision statement is a mental picture of

what you want to accomplish or achieve. For

example, you may want to develop a profitable

winery or a successful organic dairy business. Mission - A statement of mission is a general

statement of how you will achieve your vision.

There is a very close relationship between thevision and mission. The mission is an action

statement that usually begins with the word to.


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Vision Mission Goal Objectives

A vibrant rural

economy driven

by value-added

agriculture

To create and

facilitate the

development of

value-added

agriculturalbusinesses.

to improve profitability

To increase efficiency

To capture a bigger market

share

To provide better customerservice

To improve employee

training

To reduce carbon emissions

A goal should meet the

following criteria:

Suitable: Does it fit with the

vision and mission?

Acceptable: Does it fit with

the values of the company

and the employees?

Understandable: Is it statedsimply and easy to

understand?

Flexible: Can it be adapted

and changed as needed?

To earn at least a 20 percent after-tax

rate of return on our net investment

during the next fiscal year.

To increase market share by 10

percent over the next three years.To lower operating costs by 15

percent over the next two years by

improving the efficiency of the

manufacturing process.

To reduce the call-back time of

customers inquiries and questions to

no more than four hour.Objectives should meet the following

criteria:

Measurable: What will happen and

when?

Suitable: Does it fit as a measurement

for achieving the goal?Feasible: Is it possible to achieve?

Commitment: Are people committed

to achieving the objective?

Ownership: Are the people

responsible for achieving the

objective included in the objective-

setting process?


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Mission / Goals /ObjectivesMission Goal Objectives

"Provide to our valued

customers prompt and high

quality food and service in

a friendly and courteous

manner."

Reduce the average

customer waiting time by

10 minutes"

(addresses "prompt"

service)

"Reduce cholesterol in

food by 10% within a year"

(addresses "high quality

food")

"Improve customer

perception of courtesy

within a year"

(addresses "friendly and

courteous manner")

"Add five more tables to

the dining room by (date)"

"Add one cook to the staff

during peak periods by

(date)

"Begin using unsaturatedfats by (date)"

"Begin using low fat salad

dressing by (date)"

"Provide eight hours ofcustomer service training

to all team members by

(date)"

"Establish awards for

courteous service andbegin by (date)"

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Model of MIS planContents Particulars Focus

Corporate Information Business and current operations.

Information on Key Responsibility Area

Where do we stand?

Mission/ Goals/

Objectives

Current and new Where do we want to reach

Business Risk and

rewards

Clear quantitative statements on these

factors showing a trade off between

risks and rewards

What are the risks and how to

resolve

Business Policy and

Strategy

Details of strategic and policy

decisions

How we will achieve the goals

and objectives

Information Need Strategic Planning : managerial and

operational

What is key information

Architecture IT details Tools and technology

Schedule of

development

Details of systems and subsystem When and how will be it

achieved

Organization ad

execution plan

Manpower and delegation details

Internal and external sources

Who will achieve

Budget and ROI Investment schedule and benefits How much will it cost


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Class of Information

Information need by the management for

business execution is complex task.

Complexity is classified on basis of its

application and user


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Classes of InformationInformation Class Example of information User

Organisational No. of employees, products

,services locations, types ofbusiness, turnover and

details of the above

entities

Many user at all levels

One can define the organizational information as the information required by a number

of personnel, departments and divisions or the functions in the organization. Such

information can be determined by constructing a matrix of information versus user asshow in Table

Information Entity Manager

(Personnel)

Manager

(Production)

Manager

(Administration)

Manager

(Accounts)

Employees

attendance

X X X

Salary Wages and

Overtime

X X X X

Human Resources

Information

X X X


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Classes of information

Information Class Example of information User

Functional

ManagerialKnowledge

Purchase, sales, production, stocks,

receivables, payables, budgetsTrends in sales, production and

technology

Deviations from budgets, targets,

norms etc.

Competitors information

Functional Heads and

otherMiddle and Top

Management

The functional information is defined as a set of information required by the

functional head in conducting the administration and management of the function.

This information is purely local to that function and by definition, does not have a

use elsewhere.

This information is used by a manager to plan and control his function.

Functional information is largely factual, statistical and detailed in multi-dimensions

of the function


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Example

Sales Information Time Interval Required for

the product

the product groups,

the market segment,

the geographic zones,

the locations,

the customer,

sales organizationstructure.

Monthly

Quarterly

Bi- Annual

Annual

for understanding the

trend and making

comparisons against

the time scale.

Such as information is

used for planning,

budgeting andcontrolling the

operations of the

function.


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Assessment of functional Information

Work Design Responsibility Functional Objectives

For example, for the

customer order scrutiny

the available stock, the

price, the terms of

payment and the probabledelivery is an information

set evolved out of the work

design of customer order

processing.

The managers in the

functional areas of

management are responsible

for achieving the targets and

accomplishing the goals andobjectives.

inform and update the

information on targets at

regular intervals to enable

him to make or change

decisions in his domain ofoperations.

Most of these targets are

business targets such as the

turnover, production,

utilization, stocks and so on

For example, the

marketing manager has

a monthly target of $ 1

million order booking,

half a million invoicing,and not more than two

months receivables.

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Knowledge information

The information creates an awareness of those aspects of business

where the manager is forced to think, decide and act. Suchinformation shows the trend of the activity or a result against the

time scale.

For example, whether the sales are declining and the trendis likely to continue in the next quarter. The product is

failing continuously on one aspect and the reason of failureis the process of manufacturing.

Such information pin-points the area or entity and forcesthe manager to act. It highlights the deviations from thenorm or standard and also any abnormal developments

which are not in congruence with the forecasts orexpectations.

Such information gives rise to business decision, which willaffect the process of business significantly.

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Classes of informationInformation Class Example of information User

Decision Support Status information on particular aspects such

as utilisation , profitability standard ,

requirement versus availability.Information for problem solving and modeling.

Quantitative information on the business status

.

Non moving inventory, over due payments and

receivables

Middle management

and operations

management

Information is used in a decision support system for model building and problem

solving

one for justifying the need of a decision

an aid to decision making.

For example, the information on the non-moving inventory justified the decision of the

disposal at throwaway prices. The demand forecasts information aids in the decision ondetermining the economic order quantity for production or a sale.


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Classes of Information

This information is required by the operational and the lower levels of themanagement.

The main purpose of this information is fact finding and taking such actionsor decisions which will affect the operations at a micro level.

The decisions may be to stay on overtime, draw additional material, changethe job from one machine to the other, and send a reminder to the supplierfor the supply of material.

These decisions are such that they make the routine administration of thebusiness smooth and efficient. These decisions do not fall in the category ofthe managerial decisions.

Information Class Example of information User

Operational Support Information on production, sales,

purchases, dispatches, consumption etc inform of planned versus actual. The

information of monitoring of execution

schedules

Operational and

management supervisor s,officers


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Information RequirementThe sole purpose of the MIS is to produce such information

which will reduce uncertainly in a given situations.

The difficulty to determine a correct and complete set ofinformation is on account of the factors given below:

The capability constraint of the human being as aninformation processor, a problem solver and a decision maker.

The nature and the variety of information.

Reluctance of decision makers to spell out the information for

the political and the behavioral reasons. The ability of the decisions makers to specify the information.


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Methods of determining information

requirement

Asking or Interviewing

Determining from existing system

Analyzing critical success factors Experimentation and modeling


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Development and Implementation of

the MIS

Prototyping Approach

Life Cycle approach

Various systems and subsystems are

constructed and then integrated


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Prototyping approach

To illustrate the input data, formats,

messages, reports and the interactive

dialogues to the customer.

It is also used when technical solutions are

unclear to the development team.

To gain better understanding of the customer

needs.


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Mission, goals

Identify

information

needs

Definesubsystem

Define System

Objective

Examine

Feasbility

Develop Initial

Prototype

Specifications

Initial

prototype

Develop andTest

Refine the

needs

Modify

Prototype

specs

Developrevised

prototype

Define

subsystem

Is user

satisfied

Documentation

Training

Implement

Review


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Life Cycle Approach

Minor modifications or changes do occur but

they are not significant in terms of handling

either by the designer or the user of the

system.

Such system, have a life and they can be

developed in a systematic manner, and can be

reviewed after a year or two, for significantmodification, if any.


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The system development life cycle

consist of 5 major stages:

1. Define system and its objective

2. Development of the System

3. Installation of the System4. Operations of the System

5. Review and Evaluation


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System

Specification

Assess feasibility

Information Req.System

Conceptual Design

Physical Design System

specification

Program

Specifications

Develop the system

Install the System Conducts training

Operate the system

Review and Audit

Difference


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DifferencePrototype Life cycle

Open system with a high degree of

uncertainty about the information

needs.

Closed system with little or no

uncertainty about the information

needs.

Necessary to try out the ideas,

application and efficiency of the

information as a decision support

No need to try out the application or the

information as it is already proven

It is prototyping based so

Experimentation is necessary.

Scope of the design and the application is

fully determined with clarity andexperimentation is not necessary.

User of the system wants to tryout the

system before he commits the

specification and the information

requirements so user can not predictoverall system

The user is confident and confirms the

specifications and the information

needs so user can predict overall

system.

The system and applications is highly

custom oriented.

The system and application is universal

and governed by the principles and

practices.

Testing and training are done beforeimplementation of the system

Testing and training done afterimplementation of the system

devlopment of mis

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