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ORGANISATION

MD

VP (Horizontals)

GM

AGM

Manager

AsstManager

FIN MKT OPN Maint HR Pur Admin Stores(Verticals)

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Organization where there is no or little communication between departments

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Departments function in isolation

Have their own objectives

More worried about their own problems

than others

Have own systems of data collection and

analysis

Available only to the top management (assummary reports)

Not to the other departments.

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The result

Various departments end up pulling it in

different directions

Sometimes the departmental objectives canbe conflicting

Thus disrupting the normal functioning of the

organization

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MANAGEMENT INFORMATION SYSTEMS

Support many of the day-to-day decision

making needs of the management.

Reports, charts, graphs, displays

Provide information that managers have

specified in advance.

Pre-defined information satisfies the needs

of managers at the operational levels ofthe organization who are faced with the

structured type of decision-making.

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THE PROBLEM WITH THESE M I S

They operate at departmental level

Give information that has been pre-

defined.

Each department will have its owndatabase and information systems.

These systems will produce different

reports of varying detail that werespecified when the systems were built.

Contd

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THE PROBLEM WITH THESE M I S

Do not have any information about otherdepartments.

Summary reports often fail in capturing the

real picture. Beyond designed reports, systems are of

no help.

Contd

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THE PROBLEM WITH THESE M I S

Lack the integrated approach. All these systems will perform in isolation.

Information to be derived from two

systems, Get the necessary reports from both

systems and then correlate and combine

the data.

Contd

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No good decisions with the isolated data

Lose valuable time that could have beenbetter spent in decision-making.

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Information - key resource

The right information at the right time

Enables decision- makers

Chances of succeeding is high.

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CURRENT SCENARIO

STIFF COMPETITION BUYERS MARKET

CHANGING MARKET NEEDS

WELL-INFORMED AND DEMANDING

CUSTOMER

GLOBALIZED OPERATIONS

SHORT LEAD TIMES

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CHARACTERISTICS OF M I S

RELEVANT

ACCURATE,

TIMELINESS

MECH

ANISM

TO CO

LLEC

T, CO

LLATE,

ANALYSEANDPRESENT HIGH

QUALITYINFORMATION

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INTEGRATED MANAGEMENT

INFORMATION Produces information using the input-

process-output cycle

Information system consists of threeelementspeople, procedures and data.

People follow procedures to manipulate

data to produce information

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In computer world, the definition of

information systems is An organized combination of people,

hardware, software, communication

networks

A data resource that collects, collates,

transforms and disseminates in an

organization.

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THE ENTERPRISE

The entire organization is considered as asystem

All the departments are its subsystems.

The information is stored centrally and isavailable to all departments

This transparency and information access

ensures that the departments no longerwork in isolation pursuing their own

independent goals.Contd

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THE ENTERPRISE

Each sub system works towards thecommon goal.

The ERP system helps to accomplish this

task Automating business process and

functions

Helping the organization to work and moveforward as a single entity

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