Management Information System Understanding

Compile by Zafar Ayub

Basic Concepts

Data - User inputs into a computer is Data, likes raw material before data processing. Data maybe relates as facts, figures, events, transactions, images, songs, and documents. Data is also refers to unprocessed information.

Information - When data is processed into meaningful format, by specific program, it becomes information. Information is also know as results.

Conclusion - When data feeding operator fill any type of form, commonly page have empty fields with specific field heading, and operator fill this form (mean data input), and when press execute or save command all data going for main software for processing, and store in central database system, and output report is information.

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Example - Student admission form, at time of submission college collect required student data like name, age, pervious history of education, certificates, picture and signature. When admission department process in their system with some specific program (student enrolment software), after successful process, students get admission and issuing student ID card, student ID card is information of student. NADRA ID card, passport, business agreement, purchase invoice, compile presentation, electric bill, and video film are all of information's.

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• Student documents, signature, pics

Data

• Admission process

Process • Enrolment and

Student ID

Information

Policy – A policy is typically described as a principle or rule to guide decisions and achieve rational outcomes, within organization.

Business Policies are the guidelines developed by an organization to govern its actions.

Business Policy defines the scope or spheres within which decisions can be taken by the subordinates in an organization.

They define the limits within which decisions must be made.

Business policy also deals with acquisition of resources with which organizational goals can be achieved.

Business policy is the study of the roles and responsibilities of top level management

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Policy describe organization goals and long term run acting plan.

Policies are generally adopted by the board of or senior governance body within an organization.

All policies are documented with board of director approval, also know as law of company.

Conclusion - organization guidelines, scope of work, working limits, resource management, responsibilities of senior management, long term goal, define at board, and documented.

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Strategy – A strategy is a plan of action, designed to achieve policy goals.

Business Strategy develop acting time line chart of an organization.

A strategy is the practical methodology used to achieve a target as prescribed by a policy.

Strategy is concerned with those organizational decisions which have not been faced before in same form.

Strategy is the high level approach to an issue that is planned to produce change through implementation of a policy.

Board of directors discus business strategies and convey to senior management

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On the behalf of business strategy company outcomes may possible.

Strategy also be documented but not law of company.

Conclusion - action plan, practical methodology, discus on possibilities, high level approach, pass on senior management, outcomes depends, not a company law.

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Procedure – A procedure is a set of executions guidelines, in the manor of organization policies and strategies.

Step-by-step sequence of activities that must be followed in the symmetric order to correctly perform a task.

A procedure is sometimes called a work instruction.

A Procedure tells users how to, and who will, implement the policy.

Detail documents, which are part of organization manual or law book.

A procedure is a way that you achieve consistent results.

Procedures define by senior management, with board of directors approval.

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With government / standardized institute collaboration, these procedures also be packed in SOP (Standard Operate Procedures).

For execution of SOP’s, senior management pass through to management; monitor and take reporting with them.

Conclusion – step by step instructions, how and who will done job, document and part of law book, make continues result, define by senior management, SOP, pass through to management.

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Comparison – this step may clear concepts and confusions;

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Policy what should be done?

Strategy when and where should be done?

Procedure how should be and who will be done?

Example – Organization vision to deploy central data storage for business activities;

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Policy board of director visualize that company

data must be store, in Head Office data center

Strategy board define scope that should be

done before 2011-2012 audit, and IT department perform main roll

Procedure head of IT define process of

data storage in HO and branch offices, and for execution forward to IT managers with dead lines

People - All skill human manpower, which may qualified, technical trained, obey the policy, follow the procedures, and share information with system / organization, known as People.

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We make deference between peoples in an organization with respect to their job rolls and responsibilities; these job roll also known as organization chart.

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Job Job roll Pictures Board of

director

Define business policies,

strategies and control it

Senior

Management

Develop and monitor working

procedures as per board

Management Execute and reporting policies

with respect to procedures

Staff Support operation

Labor Workforce

Hardware - All physical devices which are used for input data, process on it, generate output, store data and make communication links are Hardware.

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Input Process

Store Output

Communication

Hardware support during business process, it may divide into two categories like,

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Computerized Hardware

• Desktops, laptops, workstations, servers, printers, scanners, and storage

Specialize Hardware

• Biometrics, IP cameras, PABX, photocopier, and USB

Software - All computer define instructions / programs, which may operate hardware and process user input data for output, known as Software.

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• Operator input data User

• Oracle form is data entry form Application

Software

• Windows XP used as operating system

System Software

Hardware • Computer

Software's perform key roll in business processing, all of computer activate with system software (operating system), and specialized programs are used for business processing.

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System Software

• Windows XP, Red Hat Linux, Sun Solaris Unix, and Mac OS X

Application Software

• MS Office, WinZip, Norton antivirus, Oracle 10g database, yahoo messenger, EA games, and Photoshop

Network – An interconnected system of computers, devices, communication channels / links, terminals, and specialize software known as Network.

Today business industries used network as core IT tool in their business processing.

Network is support and maintain communication link between computer to computer, department to data center, branch to head office, and customer / end user to organization.

With the network, efficient and real time reporting possible.

Network replace branch back office with central head office ERP.

Remote monitoring is possible by network technology.

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Network facilitate online and offline both business transaction type activity.

Network place symmetric business facility for all clients and company users.

Immediate board dissension and policies implementation.

Effective business control with-in and out of organization.

Conclusion – core IT tool, communication link, real time reporting, support central ERP, remote monitoring, online business, symmetric business environment, immediate policy action, and control of business.

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Categories – network may separate into two categories with respect to their geographical boundary and working limitation;

With respect to geographical boundary;

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LAN (Local Area Network)

• Within building communication network is LAN

MAN (Metropolitan Area Network)

• Within city building to building and branch to branch connectivity, knows as MAN

WAN (Wide Area Network)

• City to city and world wide network connectivity, is WAN

With respect to working limitation;

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Internet

• Open web base, email, storage, chat, and VoIP service for any user around the world.

Intranet

• An Internet like network with-in organization; web base application, email, storage, real time reporting, and VoIP service for organization users world wide.

Externat

• A network provide selective network resource of company to their partner, customer, supplier, and open market.

What is Information Technology?

IT is technical knowledge of data and information, which are associate with relative software's and deployed on hardware based system, and environment is network.

Information technology deals in data, information, hardware, software, and network.

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IT

Data

Information

Hardware Software

Network

What is Information System?

An information system can be organize combination of data and information, which may associate specialize software running on hardware with network environment; and all of these activities should be perform with respect to organization policies, strategies, and procedures.

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IT

Data

Information

Hardware Software

Network

• Company rules Policy

• Company action plan

Strategy

• SOP Procedure

What is Management Information System?

An MIS, complete information system model; with respect to people with their level of authorization in an organization, interaction with-in system.

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IT

•Data, information, hardware, software, network

IS

•Policies, strategies, procedures

MIS

•people