Systems Approach & Framework for Management Information Systems
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Transcript of Systems Approach & Framework for Management Information Systems
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Systems Approach & Framework for
Management Information Systems
Dr. Ashok Agarwal
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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
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System
Essential characteristics of a system are “composed of interacting parts, each one having interest of its own.”
(R Ackoff)
Set of components that interact to accomplish some purpose
Sub-systems Interfaces Goal
MIS-DSS/AKA
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Some ExamplesUniversity :
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
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The System and its Environment
Inputs
Raw materials costsResources
Processes
ProceduresProgramsToolsActivitiesDecisions
Outputs
Performance ConsequencesFinished ProductsServices delivered
Decision maker
System boundary
Environment
Stockholders Banks
Vendors
Com
petit
ors
Government
Customers
Wea
ther
con
ditio
ns
FeedbackFeedback
MIS-DSS/AKA
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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
Systems Characteristics
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Control :A standard for acceptable performance.A procedure to measure performance.Comparison actual : AcceptableFeedback
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
Systems Characteristics contd…
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Decision Process(H. Simon)
Programmed Non-programmed
Decisions Decisions
* Routine * Fuzzy
* Repetitive * Complex non-repetitive
* Standard Solution Exist * No standard solution
MIS-DSS/AKA
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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
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Reality
Implementation of solution
Simplification
Assumptions
Verification, testing of proposed solution
Choice Phase
Solution to the modelSensitivity analysisSelection of best (good) alternative(s)Plan for implementation
Design Phase
Formulate a modelSet criteria for choiceSearch for alternativesPredict and measure outcomes
Validation of the model
Intelligence Phase
Organizational objectivesSearch and scanning proceduresData collectionProblem identificationProblem ownershipProblem classificationProblem statement
Problem statement
Alternatives
Solution
MIS-DSS/AKA
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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
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Information CharacteristicsParameters Strategic
PlanningManagement
ControlOperational
Control
Accuracy Low High
Level of Detail Aggregate Detailed
Time Horizon Future Present
Frequency of use Infrequent Frequent
Source External Internal
Type of Information
Qualitative Quantitative
Age of Information
Older Current
MIS-DSS/AKA
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Factors Affecting Decision Making
Factor Trend ResultsTechnology Increasing
Information/computers Increasing
Structural complexity Increasing
Competition Increasing
International markets Increasing
Political stability Decreasing
Consumerism Increasing
Government intervention Increasing
Changes, fluctuations Increasing
More alternatives to choose from
Larger cost of making errors
More uncertainty regarding the future
Need for quick decisions
MIS-DSS/AKA
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Decision Support Systems
Assist managers in their decision making processes. Support RATHER than replace managerial judgment. Improve the effectiveness of decision making rather
than efficiency.
Utilize technology to :
MIS-DSS/AKA
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A Framework for MIS (Gorry & Scott Morton)
Type of Decision
Operational Control
Management Control
Strategic Planning
Support Needed
Structured Inventory recording
Linear programming for manufacturing
Plant location
Clerical, EDP or OR models
Semistructured Bond trading Setting market budgets for consumer products
Capital acquisition analysis
DSS
Unstructured Selecting a cover for Time magazine
Hiring managers R&D portfolio development
Human intuition
MIS-DSS/AKA
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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 participation A MUST
MIS-DSS/AKA
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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
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Individual economy : knowledge & Information based economies.
Hierarchical/centralized : Flattened / Decentralized
Formal Plans : Informal Communication Network
Global Organizations
MIS-DSS/AKA
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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