Systems Approach & Framework for Management Information Systems

1. Systems Approach & Framework for Management Information Systems Dr. Ashok Agarwal

2. Management Information Systems A system to provide Relevant Information : in Right time in Right format to all levels of the organizations to support the Decision Making Process MIS-DSS/AKA

3. Set of componentsthat interact to accomplish some purpose Sub-systems Interfaces Goal System • Essential characteristics of a system are “composed of interacting parts, each one having interest of its own.” • (R Ackoff) MIS-DSS/AKA

4. Some Examples University : Components: Students, Faculty, Staff, Administration Building, Equipment, Ideas and Procedures. Goals : *Educating Student * Producing Research * Providing service to community Business Organizations : Components : Marketing, Productions, Sales, Research, Finance Etc. Goals : * Stake holders return * Social objective (?) MIS-DSS/AKA

5. Environment Customers Government The System and its Environment Weather conditions Inputs Raw materials costs Resources Processes Procedures Programs Tools Activities Decisions Outputs Performance Consequences Finished Products Services delivered Competitors Feedback Feedback Vendors Decision maker Banks Stockholders System boundary MIS-DSS/AKA

6. Systems Characteristics System Boundary : System separate from environment Physical (walls) Non-physical (Time) Type of Systems : Open : System Interacting with its environment. Closed : No interactions MIS-DSS/AKA

7. Systems Characteristics contd… Control: A standard for acceptable performance. A procedure to measure performance. Comparison actual : Acceptable Feedback System Efficiency Efficiency : Measure of I/O Ratio Effectiveness : Degree to which goals are achieved. Peter Drucker : Effectiveness doing Right things. Efficiency doing things Right. MIS-DSS/AKA

8. Decision Process(H. Simon) Programmed Non-programmed Decisions Decisions * Routine * Fuzzy * Repetitive * Complex non-repetitive * Standard Solution Exist * No standard solution MIS-DSS/AKA

9. Decision Making Process(H. Simon) Intelligence : Searching for conditions that call for decisions. Design : Development and Evaluation of alternative courses of Action. Choice : Selection of a Course of Action. MIS-DSS/AKA

10. Intelligence Phase Simplification Reality Organizational objectives Search and scanning procedures Data collection Problem identification Problem ownership Problem classification Problem statement Assumptions Problem statement Design Phase Formulate a model Set criteria for choice Search for alternatives Predict and measure outcomes Validation of the model Alternatives Choice Phase Verification, testing of proposed solution Solution to the model Sensitivity analysis Selection of best (good) alternative(s) Plan for implementation Implementation of solution Solution MIS-DSS/AKA

11. Planning & Control Systems : A Framework for Analysis (R.Anthony) Management activity classified into three categories ; Each one different to require distinctive Planning & Control Systems. Strategic Planning : Defining objectives. Resource needed. Policies relating to acquisitions, use and deposition of resources. Typically top management-innovation/creativity Management Control : Getting and using resources efficiently & effectively to accomplish objectives. Involves significant interpersonal interaction. Operational Control : Process of assuring specific tasks are efficiently & effectively done. BOUNDARIES QUITE OFTEN VAGUE MIS-DSS/AKA

12. Information Characteristics MIS-DSS/AKA

13. More alternatives to choose from Factors Affecting Decision Making Larger cost of making errors More uncertainty regarding the future Factor Trend Results Technology Increasing Information/computers Increasing Structural complexity Increasing Competition Increasing International markets Increasing Political stability Decreasing Consumerism Increasing Government intervention Increasing Changes, fluctuations Increasing Need for quick decisions MIS-DSS/AKA

14. Utilize technology to : Decision Support Systems Assist managers in their decision making processes. Support RATHERthan replace managerial judgment. Improve the effectiveness of decision making rather than efficiency. MIS-DSS/AKA

15. A Framework for MIS (Gorry & Scott Morton) MIS-DSS/AKA

16. Implications for Design & Implementation : The people involved in building DSS for semi-structured decisions need to be different in terms of skills and attitudes compared to those building systems for structured Decisions. Technology supporting ill-structured problems uses computer power – differently – from large data processing operations. Models supporting managers decisions may differ from optimization algorithms. Process by which DSS are constructed – ongoing evolutionary service THAN Delivery of final product. Managers participationA MUST MIS-DSS/AKA

17. Global Organizations Evolving Technology Internet/Networked structures Seamless dataflow across the company Linkage with External entities (customer-suppliers) Changing Business Environment Flattening organizational structure Location independence Ability to operate Globally Business function distributed globally (design, mfg, customer support) 24x7 operations Communications with Suppliers/Distributors. MIS-DSS/AKA

18. Global Organizations Individual economy : knowledge & Information based economies. Hierarchical/centralized : Flattened / Decentralized Formal Plans : Informal Communication Network MIS-DSS/AKA

19. Digital Firm All significant business processes and relationships with customers, suppliers and employees are digitally enabled and key corporate assets are managed digitally (Intellectual property, core competencies, financial & human assets) MIS-DSS/AKA