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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)"
d l f l
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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.
l d f
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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.
f f
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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