mis final - copy

8/2/2019 MIS Final - Copy

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Recent Trends in MIS


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anagement n ormat onSystem

Definition:

o Computer-based system that makes information available tothe users with similar needs

o Information describes the firm or one of the major systems

o Periodic reports, special reports and outputs of mathematical

simulations

o Output is used to make decisions to solve the firmsproblems


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A View of MIS Model

Data Base

Reportwritingsoftware

Mathematicalmodels

Organizationalproblemsolver


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Benefits of MIS

Facilitates

PlanningMinimizes

InformationOverload

EncouragesDecentralization

BringsCoordination

MakeControl

Easier

InformationFlow Channel

Core Competencies

Enhances SupplyChain Management

Quick Reflexes


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Limitations of MIS

o Quality of outputs is based on the quality of inputsand processes

o Static MIS system may not have adaptability with

the fast changing and complex environment

o MIS cannot provide information for every type of

decision

o MIS has focus on quantitative factors

o MIS is not so useful for making non-programmeddecisions

o MIS effectiveness is linked with changes in top

management and organizational structure


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Decision Support System

o Supports business or organizational decision-making activities

o Information supported :

o inventories of information assets from datawarehouses

o comparative sales figures between one period and the

nexto projected revenue figures based on product sales

assumptions


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Decision Support System

FundamentalComponents

Database ModelUser

Interface


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Classification of Components of

DSS

o Inputs: Factors, numbers, and characteristics to analyzeo User Knowledge and Expertise: Inputs requiring manual

analysis by the usero Outputs: Transformed data from which DSS "decisions" are

generated

o Decisions: Results generated by the DSS based on usercriteria


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Applications of DSS

Clinical decisions for medical diagnosis

Engineering projects

Verifying credibility of loans applicant

Agricultural production

Sustainable development

Forest management


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Benefits of DSS

Improves personal efficiency

Speed up the process of decision making

Increases organizational control

Encourages exploration

Creates a competitive advantage over competition

Reveals new approaches to thinking about the problem space

Helps automate managerial processes


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Executive Information Systems

o Def: It is a set of management tools supporting the information

and decision-making needs of management by combining

information available within the organization with external

information in an analytical framework.

o Emphasis is on graphical displays and easy-to-use user

interfaces

o Offers strong reporting and data mining capabilities


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Applications of EIS

o Manufacturingo Evaluation of vendors, buyers, purchased materials

o Inventory planning and control

o Marketingo sales forecasting

o Role of price and quality in competition

o Market trends

o Financeo review financial ratios & highlight financial trends

o recognizes the importance of cost standards and flexible budgeting

o Industry statistics

Ad t d


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Advantages and

DisadvantagesAdvantages

Offersefficiency to

decision

makers

Timely deliveryof company

summaryinformation

Timely deliveryof companysummary

information

Timely deliveryof company

summary

information

Disadvantages

Informationoverload for

some managers

Highimplementation

costs

System maybecome slow,large, and hard

to manage

May lead to lessreliable and less

secure data


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Project Management


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Project Management

o The principal goal of project management is to meet customerexpectations, constraints and requirements in a timely manner

o

PMIS contains the intelligence essential to the effectiveplanning, organization, directing and control of the project

o Many businesses are choosing to implement PM solutions inorder to get an organization-wide view of projects and identify

which are mission-critical for the business and to help executethose projects efficiently


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SDLC


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Project Management Software

o They offer better control and efficiency, ensuring the successfulcompletion of the projects on time and within budget,respecting the company's work processes

o It thus eliminating the learning curve and associated costs

o PM software covers many types of software to help in projectmanagement including scheduling, cost control and budget

management, resource allocation, collaboration software, etc.


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Project Management Software

o Microsoft Office Project Server

o Oracle Project Portfolio Management

o TeamworkPM

o eGroupWare


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EDI


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EDI

o Electronic Data Interchange; developed in the 1980s it was the firsttype of IT system to improve communications with business

partners

o It is the computer to computer exchange, between two companies, ofstandard business documents in electronic format without humanintervention.

E.g. Purchase orders, invoices, etc.

o Designed to be independent of communication and softwaretechnologies i.e. it can be transmitted using any methodology agreedto by the sender and recipient.

E.g. EDI via VAN, Internet based EDI, AS1, AS2, etc


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EDI

o EDI is very useful in supply chain.

o EDI is used in nearly all the major industries such asautomotive, aerospace, retail, finance and CPG sectors.

o These systems became the basis for electronic markets, whichlater developed into electronic commerce.


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Order Delivery Cycle

Without EDI With EDI


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Benefits of EDI

o A faster business cycle

o Increased reduced costs

o Reduced errors, such as shipping and billing errors.

o Automation of business procedures

o Can be an important component of just-in-time production systems

o

Solution to supply chain problems like bullwhip

o Can be used as a catalyst for gaining efficiencies across organisationalboundaries, this strategic potential is expected to be, in the mediumterm, even more significant that the short-term cost, speed and qualitybenefits.


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Drawbacks of EDI

o Accompanying business process change with adoption of EDI

o Cost in time and money in the initial set-up

o Exchanging documents with external entities and integratingthat data into the companys internal systems should haveappropriate checks and balances


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Data Mining

o Data Mining is the process of finding correlations or patterns

among dozens of fields in large relational databases

o extraction of interesting (non-trivial, implicit, previously

unknown and potentially useful) patterns or knowledge from

huge amount of data

o data mining refers to extracting or mining knowledge from

large amounts of data

o Discover Previously unknown data characteristics,relationships, dependencies, or trends

o Alternative name - Knowledge discovery (mining) in databases

(KDD)


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Mining Large Data Sets

o There is often information hidden in the data that isnot readily evident

o Human analysts may take weeks to discover usefulinformation

o Much of the data is never analyzed at all

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

1995 1996 1997 1998 1999

The Data Gap

Number of

analysts


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Extraction of Knowledge fromData


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Knowledge Discovery Process


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Data Mining & Warehouse Data

o Data Warehousing provides the

Enterprise with a memory

o Data Mining provides the

Enterprise with intelligence


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Data Mining Methods

o Prediction Methods

o Use some variables to predict unknown or future values ofother variables

o Types: Regression, Classification, Collaborative Filtering

o Description Methods

o Find human-interpretable patterns that describe the data

o Types: Clustering / similarity


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Results of Data Mining

o Forecasting what may happen in thefuture

o Classifying people or things into

groups by recognizing patternso Clustering people or things into groups

based on their attributes

o Associating what events are likely to

occur togethero Sequencing what events are likely to

lead to later events


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Data Mining is NOT

o Brute-force crunching of bulk data

o Blind application of algorithms

o

Going to find relationships wherenone exist

o Presenting data in different ways

o A database intensive task

o A difficult to understand technologyrequiring an advanced degree incomputer science


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Applications of Data Mining

o Banking: loan/credit card approval - predict good customersbased on old customerso Customer relationship management - identify those who are

likely to leave for a competitor

o Targeted marketing - identify likely responders to promotionso Fraud detection: telecommunications, financial transactions -

from an online stream of event identify fraudulent events

o Manufacturing and production - automatically adjust knobswhen process parameter changes

o Molecular/Pharmaceutical - identify new drugso Scientific data analysis - identify new galaxies by searching for

sub clusters

o Web site/store design and promotion - find affinity of visitor topages and modify layout


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Supply Chain Management

Supply Chain Organizational


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Supply Chain OrganizationalDynamics

o Remote Input/output mode: In this case the member participates from aremote location with in the application system supported by one or morehigher-level participants.

o Application processing node: In this case a member develops and shares asingle application such as an inventory query or order processing system.

o Multi participant exchange node : In this case the member develops andshares a network interlinking itself and any number of lower level participantswith whom it has an established business relationship.

o Network control node: In this case the member develops and shares anetwork with diverse application that may be used by many different types of

lower level participants.o Integrating network node: In this case the member literally becomes a data

communications/data processing utility that integrates any number of lowerlevel participants and applications in real times.


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Framework for impact of IT on SCM


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Thank You

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