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  1. 1. Submitted To: Submitted By:Dr. Harshvardhan Halve Amrita Pandey(201002AlokPaliwal(201002Akshay Gupta(201002AkhilAgarwal(2010022)AkankshaPahwa(2010021)AdityaVikramMehra(2010020)<br />
  2. 2. What is Management Information System?<br />MIS is a system that provides information needed to manage the organizations effectively.<br />They are regarded to be the subset of the overall internal control procedures, in a business, which covers the application of people, documents, technologies and procedures used by management accountants to solve business problems such as costing a product, service or a business wide strategy.<br />Management information systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization.<br />
  3. 3. Data, information and Systems<br />Data: is a fact, number, statement or a picture that is “given”. It is the raw material in the production of information.<br />Information: is the data after manipulation, that has meaning within a context.<br />Systems: a set of components that work together to achieve a common goal. Often a system has several sub-systems. A system can be open or closed, depending on the nature of information flow in the system.<br />
  4. 4. Characteristics of useful information<br />Relevant:the information must be pertaining to the problem at hand.<br />Complete: partial information is often worse than no information.<br />Accurate: erroneous information might lead to disastrous decisions.<br />Current: decisions should be based on the latest information available, because what was a fact yesterday might no longer be one today.<br />Economical: in business setting ,the cost of obtaining information must be considered as one cost element involved in any decision.<br />
  5. 5. Four stages of processing<br />Input: collecting and entering the data into the information system.<br />Data Processing: here the data is manipulated into information using mathematical, statistical and other tools.<br />Output: the information is displayed or presented.<br />Storage: data and information are maintained for later use.<br />
  6. 6. Ethical and Societal Issues<br />Consumer Privacy: organizations collect (and sometimes sell) huge amount of data on individuals.<br />Employee Privacy: IT supports remote monitoring of employees, violating privacy and creating stress.<br />Freedom of Speech: IT increases opportunities for pornography, hate speech, intellectual property crime, an d other intrusions; prevention may abridge free speech.<br /><ul><li>IT Professionalism: No mandatory or enforced code of ethics for IT professionals--unlike other professions.
  7. 7. Social Inequality: Less than 20% of the world’s population have ever used a PC; less than 3% have Internet access. </li></li></ul><li>MAIN COMPONENTS OF INFORMATION SYSTEMS<br />Software<br />Hardware<br />Telecommunications<br />People<br />Procedures<br />Data<br />
  8. 8. SOFTWARE AND HARDWARE<br /> Computer software, is the collection of computer programs and related data that provide the instructions telling a computer what to do and how to do it<br /> Computer hardware refers to the physical parts of a computer and related devices. Internal hardware parts of a computer are often referred to as components. External hardware devices are usually called peripherals<br />
  9. 9. TELECOMMUNICATIONS<br /> Science and technology associated, in general, with communications at a distance. A telecommunications system requires a analog or digital transmitter, a compatible receiver, and a physical (cable or wire) or non-physical (wireless) connection<br />
  10. 10. PEOPLE<br /> Information systems professionals who analyze organizational information needs, design and build information systems, prepare computer programs<br />
  11. 11. PROCEDURES<br />Procedures refers to rules for achieving optimal and secure operations in data processing<br />
  12. 12. DATA<br />Data refers to representation of facts, concepts, or instructions in a formalized manner suitable for communication, interpretation, or processing by humans or by automatic means<br />
  13. 13. Types of Management Information System<br />
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  22. 22. Analyses Buying Patterns<br />Maintain Customer Records<br />Customer <br />Relationship<br />Improve Quality of Customer Service<br />Predicts switching of customer<br />
  23. 23. Business info system-past , present and future<br />PRESENT<br />Year - 1970’s<br />Main activities - Mainframe computers were used<br /> Computers and data were centralized<br /> Main focus was to automate existing <br /> process<br />Skills required - Programming in COBOL<br />Systems were tied to a few business functions: payroll, inventory, billing <br />
  24. 24. Year - 1980s<br />Main activities - PCs and LANs are installed.<br /> Departments set up own computer <br /> systems makes departments less<br />dependent on the IT department.<br /> End-user computing with Word Processors<br /> and Spreadsheets.<br /> Main focus is automating existing<br />processes.<br />Skills required - PC support, basic networking<br />
  25. 25. Year - 1990s<br /> Main activities - No more stand-Wide Area Networks (WANs) <br /> become corporatestandards.<br /> Senior management looks for system integration<br />and dataintegration .<br /> No more stand-alone systems.<br /> Main focus is central control and corporate learning<br /> Skills required - Network support, systems integration, database<br /> administration<br />
  26. 26. Year - 2000s<br />Main activities - Wide Area Networks expand via the Internet to<br />includeglobalenterprises and business partners<br /> supply chainand distribution.<br /> Senior management looks for data sharing across<br />systems. <br /> Main focus is efficiencies and speed in inventory, <br /> manufacturing, distribution.<br />Skills required - Network support, systems integration<br />
  27. 27. Present<br />Dynamic business environment <br />Modern business organizations become more and more dependent on their information systems to deal with the complexity and changeability of the context (markets) in which they operate and consequently their internal organization structures. <br />Developments like dynamic cooperation networks, mass customization of products and services, and end-to-end process control require automated means to control operational business processes, for the simple reason that humans cannot oversee the entire operation in an efficient and effective way anymore<br />Consequently, business requirements to information systems increase at a dazzling pace. <br />
  28. 28. Technological advances<br />Developments in information technology range from basic computing technology via communication technology and a broad spectrum of data and process management technology to complete frameworks for enterprise information systems and e-business systems.<br />Consequently, technology push forces have a major influence on current developments<br />
  29. 29. FUTURE<br />Artificial intelligence<br />The future executive information systems will become <br />diverse because of integrating potential new applications<br /> and technology into the systems, such as incorporating<br /> artificial intelligence (AI) and integrating multimedia <br />characteristics making it - timely, efficient and effective<br /> in supporting the decision making process.<br />
  30. 30. Information system in business functions<br />IS’s serve various purpose throughout the organization in different <br />business functional areas-<br />Accounting –<br />Information system helps record business transactions, <br />produce periodic financial statements, and create reports <br />required by law, such as balance sheet and <br />profit- and-loss statement.<br />Accounting ISs contain controls to ascertain adherence <br />to standard: such as double entry<br />
  31. 31. Finance<br />Finance information system help organize budgets,<br />manage cash flow, analyze investments, and make <br />decisions that could reduce interest payments and <br />increase revenues from financial transactions.<br />
  32. 32. Marketing<br />Marketing information system help analyze demand <br />for various products in different region and <br />population groups in order to more accurately<br />market the right product to right producer.<br />Marketing ISs provide information that helps <br />management decides how many sales <br />representatives to assign to specific products in<br />specific geographical area<br />
  33. 33. Human Resource<br />Human resource information system help in <br />record- keeping and employee evaluation.<br />HR management system have evolved to serve many<br />purposes such as recruiting, selection. <br />Placement, benefit analysis. Online benefit <br />information for employee to access through the <br />intranet, requirement project and other services<br />
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  35. 35. ERP (Enterprise Resource Planning)<br /><ul><li>ERP is software driven business management system
  36. 36. Helps to integrate all functions of a business including planning, </li></ul>manufacturing, sales, and marketing<br /><ul><li>Helping the management for setting better business practices
  37. 37. Equip them with correct information for taking timely decisions.</li></li></ul><li>How ERP evolve over the time<br /> @In the 1970s, the concept of Material Requirement Planning <br /> (MRP)came <br /> @ In the 1980s, the concept of MRP-II (Manufacturing Resource<br /> Planning) evolved.<br /> @ Gradually extended to areas like Finance, HR, Engineering and Project <br /> Management etc.<br />@ Eventually gave way to ERP that covered cross-functional coordination <br /> and Integration to support the production process<br />@ Main modules :finance and accounting, customer order <br /> management, materials management and decision <br /> support/data warehousing. <br />
  38. 38. ERP in India<br /><ul><li> Implementation after the liberalization of the economy
  39. 39. Important to provide improved quality at lower prices
  40. 40. Earliest implement by manufacturing companies, followed by FMCG, automotive, </li></ul>steel, oil, textile and pharma companies<br /><ul><li> Major companies implement ERP :</li></ul>TISCO, TELCO, Nestle, Reliance, Godrej, Larsen & Toubro, HLL, Maruti, BPCL,<br />IOCL, ONGC, Coke, Pepsi, ITC, Colgate-Palmolive, P&G, Shopper's Stop and M&M <br /><ul><li> Majority of ERP implementation exercises in India proved to be failures</li></li></ul><li>Case study:<br />Implementation <br />Of<br /> Information <br />System <br />by BPCL<br />
  41. 41. Implementation of Information System by BPCL<br />NEED:<br /><ul><li>To focus on specific customer segments </li></ul> and address their individual needs<br /><ul><li> To take effective decisions in short time
  42. 42. Speedy and effective communication
  43. 43. To communicate with recipients over</li></ul>multiple locations<br />Current situation:<br /><ul><li>Communication structure hamper the </li></ul> integration of activities<br /><ul><li>High costs of traditional communications</li></li></ul><li>How it implement ???<br /># Divided its IT initiatives into a three-pronged strategy:<br />@To create a communication network within the organization<br />@ To create a basic information network for the entire corporation<br />@To process transactions with customers all over the country<br /># Establish an intranet to improve communication systems <br /> within the organization. <br /># Took help from Microsoft Consulting Services.<br /># Conducted feasibility testing of the solution with the help of a pilot implementation<br /># Connected its corporate office in Mumbai with the various regional offices<br /># Seven web servers were deployed to provide intranet connectivity to users all <br /> over the country<br /># Internet gatewayswere made available to connect organization to outer world<br />
  44. 44. Information Technology Initiatives taken by BPCL<br /><ul><li>Introduced 'Query by Mail' (QBM):
  45. 45. Remote users could extract business transactions from corporate databases
  46. 46. Conserve the WAN bandwidth and schedule database queries at night
  47. 47. Setup a data warehouse :
  48. 48. Facilitate information retrieval from corporate databases
  49. 49. Employees to access and update personnel records such as contact details </li></ul> and salary information <br /><ul><li>Introduction of the Petrocard:
  50. 50. 4K-microprocessor smart card used at retail outlets across the country.
  51. 51. By March 2001, around 2.5 lakhs customers were using Petrocard with over</li></ul> 20,000 daily transactions<br /><ul><li>Introduce Fleet card for transport companies:
  52. 52. Made it easier for them to track the position of their </li></ul> inventory<br />
  53. 53. Benefits of Information System and ERP<br />@ Qualitative benefits:<br />#Employees constantly connected to each other and to the outside world<br />#Building employee skills and competencies<br />#Communication costs reduced drastically<br />#Provide Security of information.<br />#Allowed the company to retain existing customers and attract new customers.<br />#Cash management become easier.<br />@ Quantitative benefits:<br />#Increase its share of I&C customers from 14.9% in 2000 to 15.8% in 2001<br />#BPCL's revenues grew by 2.28% in 2000-01, even as the revenues of the petroleum<br /> industry declined by 3.4%<br />