Showing posts with label MIS. Show all posts

Classification of Information in MIS

The Information can be Classified in a number of ways provide a better understanding. John Deaden of Harvard University classifies Information in the following Manner:

Action Information: The information which induces action is called an action information. For Example:- when the attendance of the student for a particular subject suddenly falls down 40% calls for immediate action.

Non-Action Information: Non-Action Information which is communicates only the status of a situation is a no action information. for Example:- While watching the live cricket match you understand that India's Current Run rate is 4 per over whereas its required run rate is 7 Per over.you have this information but this is non-action information.

Recurring Information: The Information that is generated at regular information. For Example:-The monthly Sales reports, Account statements.

Non-Recurring Information: Non Repetitive in nature. For Example: The financial analysis or the report on the market research.

Internal Information: The information is generated through the internal sources of the organisation.

External Information: The Information is Generated through the External sources of the organisation.

What is the Waterfall Model in SDLC?

The waterfall model of the software life cycle which 1st put forward by Royce in 1979. It become popular in the 1970s. However, when Boehm brought attention to it. there are many variants of the waterfall model depending on the organisation the use the model and the specific projects.

Fig 1: Linear-Sequential Waterfall model

The Above figure depicts Linear-Sequential Waterfall model.

Another variant of the waterfall model is the one in which each phase's results flow into the next and the process. Ideally process in an orderly fashion. this can be illustrated from the following figure.

Fig 2 : Waterfall Model

In the waterfall model "With feedback the process is structured as a cascade of phases where the output of one phase constitute the input to the next one. The Waterfall model consist of the Following Phases.

1. Feasibility study

Feasibility study is study about finding out the Problems. in this phase feasibility is an evaluation and analysis of the potential of proposed which is based on extensive investigation and research to support to process in decision making.
Aims

Work out on overall understanding of the problems.
Generate Different Solution for solving the Problem.
Find out the Solution among alternative which is suitable and best.
Analysis each and every alternatives solution in terms of :

What are the Resources Required
What are the Cost of Development
How much time taken in development etc

_________________________________________________________

2. Requirement analysis and Specification

In this phase Developer understand the exact requirements of the customers. after the knowing requirement of the customers. developer need to gathering information and analysis it.
Aims

Requirement gathering and analysis
Analysis the collected data.. is relevant or not
Requirement specification
Find out if any requirement is not completed. and solve it.

3. Design and Specification

In this design phase developer transform the Gathered requirement specification data into a particular format and bring it in a structure format.
Aims

Design phase transforms requirement specification data into a Programming language structure.
Bring all gathered customers requirement in a particular format for developing the software.

4. Coding and Module testing

In this Phase developer start developing this software. now in this phase developer start coding using programming language according to the requirement of the customers.
Aims

Convert software design into source code.
Dividing in module if software have many function.
Testing each module after the coding. if developer test individual module is working correctly or not.

5. Integration and System testing

In this phase After the developing every module and its testing developer integrate all module and made one software/system. "For example: developer divided one software into 4 module and after the developing of module 1, 2, 3, and 4 developer integrate all module each other and developed one software" after the integration he test whole software and test each and every functions of the software.
Aims

Integrate all module in a system.
Ensure that the developed system functions working according to the requirement of the customers as specified in the document.

6: Delivery

In this phase of waterfall model after the complete development of the software. developer distribute and provide software to user for fulfilling user needs.

7. Maintenance

Corrective Maintenance:

Corrective maintenance is kind of maintenance in which correct errors which are not discovered during the projects development phase.

Perfection Maintenance:

Perfection maintenance in also a kind of maintenance in which developer improve implementation of the system.
and developer try to enhance the Facilities and Functions of the system.

Adoptive Maintenance:

As per the Environment Software must be maintenance. (For example:- A software which is developed for Window xp in 2005 but Now peoples are using Window 7 or 8. in this case developer maintain his software and develop according to window 7 and 8 supporting)

Waterfall model in system development life cycle from Management Study online

What is Rational Decision Making in MIS?

A rational decision is the one which, effectively and efficiently. Ensures the achievement of the goal for which the decision is made. If it is raining, It is rational to look for a cover so that you do not get wet. If you are in business and want to make profit, then you must be produce goods and sell them at a price higher than cost of production. In reality, there is no right or wrong decision but a rational or an irrational decision. The quality of decision-making is to be judge on the rational and not necessarily on the result it produces.

Fig: Process of decision making

The rationality of the decision made is not the same in every situation. It will vary the organisation, the situation and the individual's view of the business situation. The Rationality, therefore, is a multidimensional concept. For Example:- the business decisions in a private organisation and a public sector undertaking differ under the head of rationality. The reason for this difference in rationality is the different objectives of the decision makers. Any business decision if review by a shareholder, a consumer, an employee, a supplier and a social scientist, will result in a different critiscum due to difference individual's rationality this is because each one of them will view the situation in different contexts and the motive with in different objectives, Hence, weather a decision is right or wrong depends on a specific rational view.

Simon Herbert A* differentiates among the types of rationality. A decision, in a given situation is:

Objectively Rational: If it maximizes the value of the objectives.
Subjectively Rational: If it maximizes the attainment of value within limitation of the knowledge and awareness of the subject.
Consciously Rational: The extent the process of the decision- making is deliberate and a conscious one.
Organizationally Rational: The degree if the orientation towards the organisation.
Personally Rational: The extent it achieves and individual's personal goals.

In other words, So long as the decision maker can explain with logic and reason, the objectivity and the circumstances in which the decision is made, it can be termed as a rational decision. Whether the rationality applied is appropriate or not could be point for debate.

Rational decision making in mis from Management Study online

Ascertaining the Problems: According to Peter Drucker Point of View "The most common source of mistakes in the management decisions is the emphasis on finding the right answers rather than the right question's." The main task is to define the actual problem very clearly. The management may find out the problem as the "Quality of the product is Poor". But actually Quality of the product is too Better as compare with competitors product. the real problem is maybe somewhere else. For Example: - The Problem may be the Poor quality of the product and you thinking to improving the quality of the advertising.

Insufficient Knowledge: For relevant decision, Decision maker need total information about problem and its alternative solution for the decision making, if complete knowledge is not study by the decision maker. Decision maker fail to make a rational decision so, An important function of a manager/decision maker is to determine the dividing line is reached between insufficient knowledge and the enough information to make a decision.

Not Enough Time to be Rational: In Any business organisation a decision maker in under pressure to make decision, If time is limited, He/she may make hasty decision. Which may not satisfy the test of rationality of decision.

The Environment may not cooperate: Sometimes, the timing of the decision is such that one is forced to make decision but the environment is not conductive for it. The decision may fail to test of rationality as the environmental factors considered in the decision-making turn out to be untrue. For Example:- In the Product Pricing, the factors of oil and petroleum product price is considered as stable. but the post-decision environment proves the consideration to be wrong.

Other Limitations: Other Limitation are the need for a compromise among the different positions, Misjudging the monitor and values of people, Poor communications, Misappraisal of uncertainties and risks, and inability to handle the available knowledge and human behavior.

Problems in Decision Making from Management Study online

Whats is the Types of Information

Information is very useful for every Business organisation. information is most important for Decision making. in the process of decision making is generally divided into There Types are:-

Strategic Level
Tactical Level
Operational Level

1. Strategic Level:

For Strategic decision making, decision maker needs strategic information, Which is wholistic, Unstructured and draws heavily form the external environment. it would also require more futuristic inputs like the emerging technologies, Competition, consumer preferences, Socio-eco-political changes etc. As these inputs would be used for long term planning.

2. Tactical Level:

Tactical information would be used for medium/short-term planning by the middle management, Budgets, forecasts, analysis, cash/funds flow projections are part of the tactical information. Such an information is mostly form internal environments and partly form external environments like Customer Perceptions, Competitors strategy, Pricing etc. it has medium term impact.

3. Operational Level:

Operational level is mainly for/form operating people ranging peoples form a 'shift' to a day or a week or a month. it is basically about what is currently happening around within the organisation and mainly drown form internal sources it is also covers a specific product, specific activity and a smaller Group/number of happen.

One the basic of Implementation/Execution

we can divide information into planning information and Control Information.

1. Planning Information:

Planning information cover whole Organization.
Planning information has a long time span.
Planning information looks for and analyses trends/patterns.
Planning information used for working futuristic trends/forecast.

2. Control Information:

Control information is concerned with small, specific part of organisation.
Control information has a shorter time span
Control information looks for specific details for functional activity.
Control information used for assessing actual performance Vis-à-vis budgeted.

What is the Source of Information and its Concepts

We know that data is the foundation of all information. A few aspect of data, source of data and methods of collecting the data for the purposes of converting them into information are described in the paragraphs which is follow:-

Primary Data and Secondary Data:

Data are the raw material used for obtaining information. Data is derived form a number of sources, both internal as well as external. If the data is collected for the first time by the researcher, it is Classified as a Primary data. if however, data is borrowed by the researcher form the other sources, it is referred to as secondary Data.

Primary Data: Primary data could be gathered directly form the respondent. Different techniques like Observations, questionnaires, interviews etc. can be use for obtaining primary data, which can then be converted into information.
Secondary Data: Secondary data sources include internal records as well as external records. Sources like Newspaper, Magazines, trades journals, Governments publications, Government policy documents, research reports, web sites etc are includes in secondary data Sources.

Management Information System and Information Concept

Management information system should provide the information which has a surprise value and which reduces the uncertainty in decision making. it should simultaneously build the knowledge base. While designing MIS due regard should be given to the communication theory of transmitting the information form the sources of the destination. MIS should use the redundancy of data and information as a measure to control the error in communication.

Information is a quality product for organization. The quality can be ensured if the inputs of the management information system MIS are controlled on the factors of impartiality, validity, reliability, consistency and age. MIS should give regard to the information used for planning, performance, control and knowledge database.

Recognizing that the information may be misused if it falls into wrong hands, The MIS design should have the features of filtering, blocking, suppression's and delay delivery.

What is the Process of Information in MIS

As Start, Data has to be processed before information could be available. Hence, Information passed form various operations have to be carried out in Converting data into meaningful Information. we are going to understand each and every process of Information. which is given below:-

1. Capturing:

Yes, in Information Processing this is the first step and task of retrieving the relevant information. in this process data's are collect from the events and transaction for the various environment. this data has to be recorded or we can say stored in database.

2. Verifying:

Verifying, after Capturing data the second step is verifying. Under information process verifying step play a vital role, in the Process, Analyzer checked the data is valid or not for correctness. if the data is incorrect, after processing data outcome (information) is also incorrect and we know that incorrect information have no value and this information in useless for decision maker. that's way verifying is most important step in Information Process.

3. Classifying:

Classifying, Yes after capturing and verifying the data classifying is also important. Information must be classified on the basis of nature, class, size, of the data. this method of keeping information is make easy to retrieve information in a reasonable time in future work or on decision making time. its means data has must to be placed in specific categories. that's why its is most important process of information.

4. Arranging/shorting:

Arranging, when classifying process has completed after this data must be arranging. Its means data has must to be placed in a particular order and in particular sequence may be in data arranging in Priority basis, and may be size, date, time, year, and ascending or descending order basis. Method of arranging/shorting is help to find out data very easily. that my this process in important.

(-----Incomplete for full Post stay tune------)

What is meaning and Characteristics of Information

Initially, We have said that MIS is a system, and i MIS system is Based upon Information, So we can say Information is a blood of the Organisation, just like human body is noting without blood same as Business Organisation never take even one step without information. Thus, Information is most raw material for any business organisation.

Introduction of Information in business organisation.

Information derived form data, Data is noting but random, Unorganized collection of indication or measurements of certain qualities or attitudes relating to an entity, recorded either in alphabetical, numerical, alphanumerical, Voice, image, text or any other form. on other hand, Information is like a Finish product. Information. Therefore, is defined as data that is collected, collated, processed, logically, organised, and analyzed so as to be of use to the decision maker.

Information, According to the Davis and Olson, is "Data that has been Processed into a form that is meaningful to the recipient and is of real or perceived value in current or protective actions or decisions".

Therefore, The difference which make the difference. information brings clarity and creates an intelligent human response in the mind.

Characteristics of Information

Its improves representation of an entity
Its update the level of knowledge
Its has surprise value
Its reduces uncertainty
Its aids in Decision making

Role of Management Information System (MIS)

Simply MIS stand For Management Information System. For Simply Understanding Management Information System (MIS) we can divide in to three Word and Understand Part by part

Management: - “Management is function to do the work at the Right time, by the right Person, For the Right Job.”
Information: - “Information is the Collection of Organized data which plays a Vital Role for decision making.”
System:-“System Consist for a set of elements which Provides a Framework to convert Unorganized (Data) into Organized Information.”

Meaning of Management Information System

Management information system refers to such system which provides accurate information to the entire level of management for decision making process. For right job at the right time, by the right person.

Management information System

Role of Management Information System

Management information system (MIS) has become Very Necessary due to Emergence of high complexity in Business Organization. It is all to know that without information no Organization can take even one step properly regarding the decision making process. Because it is matter of fact that in an organization decision plays an essential role for the achievement of its objectives and we know that every decision is based upon information. If gathered information are irrelevant than decision will also incorrect and Organization may face big loss & lots of Difficulties in Surviving as well.

Helps in Decision making: - Management Information System (MIS) plays a significant Role in Decision making Process of any Organization. Because in Any organization decision is made on the basis of relevant Information and relevant information can only be Retrieving from the MSI.

Helps in Coordination among the Department: - Management information System is also help in establishing a sound Relationship among the every persons of department to department through proper exchanging of Information’s.

Helps in Finding out Problems: - As we know that MIS provides relevant information about the every aspect of activities. Hence, If any mistake is made by the management then Management Information Systems (MIS) Information helps in Finding out the Solution of that Problem.

Helps in Comparison of Business Performance: - MIS store all Past Data and information in its Database. That why management information system is very useful to compare Business organization Performance. With the help of Management information system (MIS) Organization can analyze his Performance means whatever they do last year or Previous Years and whatever business performance in this year and also measures organization Development and Growth.

What is a Characteristics of MIS?

A management information system has the following characteristics:

System approach: The information system follows a System’s approach. The system’s approach implies a wholistic approach to the study of the system and its performance to achieve the objective for which it has been formed.

Management oriented: For designing of MIS top-down approach should be followed. Top-down approach suggests that the system development starts from the determination of the management needs and overall business objectives. Management oriented characteristic of MIS also implies that the management actively directs the system development efforts.

Need based: MIS design and development should be as per the information needs of managers at different levels that are strategic planning level, management control level and operational control level.

Exception based: MIS should be developed on the exception based reporting principle, which means an abnormal situation, that is the maximum, minimum or expected values vary beyond the limits. In such cases there should be exception reporting to the decision-maker at the required level.

Future oriented: Besides exception based reporting, MIS should also look at the future. In other words MIS should not merely provide past or historical information, rather it should provide information on the basis of projections based on which actions may be initiated.

Integrated: Integration is significant because of its ability to produce more meaningful information. For example, in order to develop an effective production scheduling system, it is necessary to balance such factors as: set-up costs, work force, overtime rates, production capacity, inventory level, capital requirements and customer services. Integration means taking a comprehensive view of the subsystems that operate within the company.

Common data flows: Because of the integration concept of MIS, there is an opportunity to avoid duplication and redundancy in data gathering, storage and dissemination. System designers are aware that a few key source documents account for much of the information flow. For example, customer’s orders are the basis for billing the customer for the goods ordered, setting up accounts receivables, initiating production activity, sales analysis, sales forecasting etc.

Herbert Simon Decision Making Model

Herbert Simon made key contributions to enhance our understanding of the decision-making process. In fact, he pioneered the field of decision support systems. According to (Simon 1960) and his later work with (Newell 1972), decision-making is a process with distinct stages. He suggested for the first time the decision-making model of human beings. His model of decision-making has three stages:

Intelligence which deals with the problem identification and the data collection on the problem.
Design which deals with the generation of alternative solutions to the problem at hand.
Choice which is selecting the 'best' solution from amongst the alternative solutions using some criterion.

The figure given below depicts Simon's decision-making model clearly.

Simon's decision-making model

Intelligence Phase:

This is the first step towards the decision-making process. In this step the decision-maker identifies/detects the problem or opportunity. A problem in the managerial context is detecting anything that is not according to the plan, rule or standard. An example of problem is the detection of sudden very high attrition for the present month by a HR manager among workers. Opportunity seeking on the other hand is the identification of a promising circumstance that might lead to better results. An example of identification of opportunity is-a marketing manager gets to know that two of his competitors will shut down operations (demand being constant) for some reason in the next three months, this means that he will be able to sell more in the market. Thus, we see that either in the case of a problem or for the purpose of opportunity seeking the decision-making process is initiated and the first stage is the clear understanding of the stimulus that triggers this process. So if a problem/opportunity triggers this process then the first stage deals with the complete understanding of the problem/opportunity. Intelligence phase of decision-making process involves:

a. Problem Searching
b. Problem Formulation

Problem Searching: For searching the problem, the reality or actual is compared to some standards. Differences are measured & the differences are evaluated to determine whether there is any problem or not.

Problem Formulation: When the problem is identified, there is always a risk of solving the wrong problem. In problem formulation, establishing relations with some problem solved earlier or an analogy proves quite useful.

Design Phase:

Design is the process of designing solution outlines for the problem. Alternative solutions are designed to solve the same problem. Each alternative solution is evaluated after gathering data about the solution. The evaluation is done on the basic of criteria to identify the positive and negative aspects of each solution. Quantitative tools and models are used to arrive at these solutions. At this stage the solutions are only outlines of actual solutions and are meant for analysis of their suitability alone. A lot of creativity and innovation is required to design solutions.

Choice Phase:

It is the stage in which the possible solutions are compared against one another to find out the most suitable solution. The 'best' solution may be identified using quantitative tools like decision tree analysis or qualitative tools like the six thinking hats technique, force field analysis, etc.
This is not as easy as it sounds because each solution presents a scenario and the problem itself may have multiple objectives making the choice process a very difficult one. Also uncertainty about the outcomes and scenarios make the choice of a single solution difficult.

Role of Information in Decision Making

Information plays a vital role in decision-making. Even to take very simple decisions, we need information. To understand the role played by information in decision-making, we have to understand how decisions are taken. Decision-making is basically a process that includes the following stages:

Information is thus, very important to take decisions. Imagine a simple decision like the one a driver (say) makes when he puts on the brakes to stop a speeding vehicle when he sees a child crossing the road (in middle of the road). The driver decides on braking based on a lot of information processing that happens in his brain. At every stage of the decision-making he uses information that he captures visually. All decisions are like this.

First we get information about a problem, format it into a structure and then factor in the information about the context in which the problem has occurred. Like in the above case instead of the child being at the middle of the road and crossing it, the driver would have seen the child about to cross over with a few steps only he would probably not have braked to stop but would have slowed down, as he would have calculated that by the time the vehicle reaches the crossing stage, the child would already have passed. So if the problem was structured as 'how to not hit the child crossing the road?', and if the child was at the middle of the road, the driver would have braked but had the child been at (say) at ninety per cent completion level of crossing the road, the driver would have only slowed down and not braked to stop. Therefore, we see that the context has a major role in the decision-making and information is required both about the problem and about the context in which the problem occurred. The next stage for the decision maker would be to generate alternatives. In the driver's case such possible alternatives would be

Stages of Decision-making	Role of Information
Identification and structuring of problem/opportunity	One needs information to identify a problem and put it in a structured manner. Without information about a problem or opportunity, the decision-making process does not even start.
Putting the problem/ opportunity in context	Without information about the context in which the problem has occurred, one cannot take any decision on it. In a way, the information about the context defines the problem.
Generation of alternatives	Information is a key ingredient in the generation of alternatives for decision-making. One has to have information about possible solutions to generate alternatives.
Choice of best alternative	Based on the information about the suitability of the alternatives, a choice is made to select the best alternative.

what is the types of Decision Making

Organizational decisions differ in a number of ways. The following basis are used to classify the decisions:

Ø On the Basis of Purpose of Decision-making:

On the basis of the purpose of decision-making activities, the organizational decisions can be divided into 3 types:

Strategic Planning Decisions: Strategic planning decisions are those decisions in which the decision-maker develops objectives and allocates resources to achieve these objectives. Such decisions are taken by strategic planning level (top level) managers.

Tactical Decisions: Management control decisions (Tactical decision) are taken by management control level (middle level) managers and deal with the use of resources in the organization.

Operational Decisions: Operational decisions deal with the day-to-day activities and problems that affect the operation of the organization. These decisions are taken by the managers at operational level (bottom level) of the organization.

Ø On the Basis of Levels of Programmability:

Simon on the basis of level of the programmability of a decision, proposed two types of decisions:

Structured Decisions: Programmed or structured are those decisions, which are well defined and some specified procedure or some decision rule might be applied to reach a decision. Such decisions are routine and repetitive and require little time for developing alternatives in the design phase. Programmed or structured decisions have traditionally been made through habit, by operating procedures or with other accepted tools.

Unstructured Decision: Decisions, which are not well defined and have not pre-specified procedures decision rule are known as unstructured or non-programmed decisions.

Ø On the Basis of Knowledge of Outcomes:

Another approach of classifying decisions is the level of knowledge of outcomes. An outcome defines what will happen, if a decision is made or course of action taken. When there is more than one alternative, the knowledge of outcome becomes important. On the basis of the level of knowledge of outcomes, decision-making can be classified into three categories.

Decision under certainty: Decision-making under certainty takes place when the outcome of each alternative is fully known. There is only one outcome for each alternative.

Decision under risk: Decision-making under risk occurs when there is a possibility of multiple outcomes of each alternative and a probability of occurrence can be attached to each outcome.

Decision under uncertainty: Decision-making under uncertainty takes place when there are a number of outcomes for each alternative & the probabilities of their occurrences are not known.

Meaning & Characterstic of Decision Making in MIS

A decision is the choice out of several options made by the decision maker to achieve some objective in a given situation. A number of experts consider decision making as the single most important managerial function. Decisions are made at different levels in the organization structure, The decision made at different level vary in their content, Risk involved, complexity and the Implications. The information support required to decision making process varies according to the type of Decision and the level within the organization at which such is being made.

The thought process of selecting a logical choice from the available options.
When trying to make a good decision, a person must weight the positives and negatives of each option, and consider all the alternatives. For effective decision making, a person must be able to forecast the outcome of each option as well, and based on all these items, determine which option is the best for that particular situation.

Decision: A decision is the choice out of several options made by the decision maker to achieve some objective in a given situation.

Business Decision: Business decisions are those which are made in the process of conducting business to achieve its objective in a given situation.

Characteristic of Business Decision Making:

Topics