A
PROJECT REPORT
On
MANAGEMENT INFORMATION SYSTEMS
AND
MARKET MONITORING SYSTEMS
University School of Management Studies (GGSIPU)
Submitted by:
Prashant Bedwal
M.B.A.
3rd Semester
Roll No.-
09416603909
Index
S.NO. TOPIC PAGE NO.
1. Introduction to background
2. Literature Review
Research Methodology
3. Research objective
Data collection
Data analysis
4. Management Information System (MIS)
5. Comments from industry experts
6. Conclusion & limitations
7. Possible Areas for Further Study
8. Bibliography and References
INTRODUCTION TO BACKGROUND
Why study information system and information technology? That’s the same
as asking why anyone should study accounting, finance, operations
management, marketing, human resource management, or any other major
business function. Information systems and technologies are a vital
component of successful business and organizations. they thus constitute
an essential field of studying business administration and management.
Information technologies, including Internet – based information systems,
are playing a vital and expanding role in business. Information technology
can help all kinds of business improve the efficiency and the effectiveness of
their business processes, managerial decision making, and work group
collaboration, thus strengthening their competitive positions in a rapidly
changing marketplace.
Virtually no business or organization, large or small, can compete without
information systems and information technology. If we are to understand
the information systems and their functions, we first need to be clear on the
concept of a system. In its simplest form, a system is a set of interrelated
components, with a clearly defined boundary, working together to achieve a
common set of objectives.
LITERATURE REVIEW
A literature review is a body of text that aims to review the critical points of
current knowledge and or methodological approaches on a particular topic.
Literature reviews are secondary sources, and as such, do not report any
new or original experimental work. Its ultimate goal is to bring the reader up
to date with current literature on a topic and forms the basis for another
goal, such as future research that may be needed in the area. Following
section depicts some of the Articles and researches done in the area of
Management of information technology.
A Marketing Information System can be defined as 'a system in which
marketing information is formally gathered, stored, analysed and distributed
to managers in accordance with their informational needs on a regular
basis' (Jobber, 2007)
The system is created through an understanding of the information needs
of marketing management. It is available to supply information when, where
and how the manager requires it. Data is taken from the marketing
environment and transferred into the information that marketing managers
can use in their decision-making processes.
Data: Basic form of knowledge. Example. one isolated statistic. Information:
A combination of Data that provide relevant knowledge.
A Marketing Information System can be defined as 'People, equipment
and procedures to gather, sort, analyze, evaluate and distribute needed,
timely and accurate information to marketing decision makers' (Gray
Armstrong, 2008)
A marketing information system (MIS) consists of people, equipment and
procedures to gather, sort, analyze, evaluate and distribute needed, timely
and accurate information to marketing decision makers. The MIS begins and
ends with marketing managers. First, it interacts with these managers to
assess their information needs. Next, it develops the needed information
from internal company records, marketing intelligence activities and the
marketing research process. Information analysis processes the information
to make it more useful. Finally, the MIS distributes information to managers
in the right form at the right time to help them in marketing planning,
implementation and control.
COMPONENTS OF A MARKETING INFORMATION SYSTEM
A marketing information system (MIS) is intended to bring together disparate items of
data into a coherent body of information. An MIS is, as will shortly be seen, more than
raw data or information suitable for the purposes of decision making. An MIS also
provides methods for interpreting the information the MIS provides. Moreover, as
Kotler's definition says, an MIS is more than a system of data collection or a set of
1
information technologies:
"A marketing information system is a continuing and interacting structure of people,
equipment and procedures to gather, sort, analyse, evaluate, and distribute pertinent,
timely and accurate information for use by marketing decision makers to improve their
marketing planning, implementation, and control".
Figure 9.1 illustrates the major components of an MIS, the environmental factors
monitored by the system and the types of marketing decision which the MIS seeks to
underpin.
Figure 9.1 The marketing information systems and its subsystems
The explanation of this model of an MIS begins with a description of each of its four main
constituent parts: the internal reporting systems, marketing research system, marketing
intelligence system and marketing models. It is suggested that whilst the MIS varies in
its degree of sophistication - with many in the industrialised countries being
computerised and few in the developing countries being so - a fully fledged MIS should
have these components, the methods (and technologies) of collection, storing, retrieving
and processing data notwithstanding.
Internal reporting systems: All enterprises which have been in operation
for any period of time nave a wealth of information. However, this
information often remains under-utilised because it is compartmentalised,
either in the form of an individual entrepreneur or in the functional
departments of larger businesses. That is, information is usually categorised
according to its nature so that there are, for example, financial, production,
manpower, marketing, stockholding and logistical data. Often the
entrepreneur, or various personnel working in the functional departments
holding these pieces of data, do not see how it could help decision makers in
other functional areas. Similarly, decision makers can fail to appreciate how
information from other functional areas might help them and therefore do
not request it.
The internal records that are of immediate value to marketing decisions are:
orders received, stockholdings and sales invoices. These are but a few of the
internal records that can be used by marketing managers, but even this
small set of records is capable of generating a great deal of information.
Below, is a list of some of the information that can be derived from sales
invoices.
· Product type, size and pack type by territory
· Product type, size and pack type by type of account
· Product type, size and pack type by industry
· Product type, size and pack type by customer
· Average value and/or volume of sale by territory
· Average value and/or volume of sale by type of account
· Average value and/or volume of sale by industry
· Average value and/or volume of sale by sales person
By comparing orders received with invoices an enterprise can establish the
extent to which it is providing an acceptable level of customer service. In the
same way, comparing stockholding records with orders received helps an
enterprise ascertain whether its stocks are in line with current demand
patterns.
Marketing research systems: The general topic of marketing research has
been the prime ' subject of the textbook and only a little more needs to be
added here. Marketing research is a proactive search for information. That
is, the enterprise which commissions these studies does so to solve a
perceived marketing problem. In many cases, data is collected in a
purposeful way to address a well-defined problem (or a problem which can
be defined and solved within the course of the study). The other form of
marketing research centres not around a specific marketing problem but is
an attempt to continuously monitor the marketing environment. These
monitoring or tracking exercises are continuous marketing research studies,
often involving panels of farmers, consumers or distributors from which the
same data is collected at regular intervals. Whilst the ad hoc study and
continuous marketing research differs in the orientation, yet they are both
proactive.
Marketing intelligence systems: Whereas marketing research is focused,
market intelligence is not. A marketing intelligence system is a set of
procedures and data sources used by marketing managers to sift
information from the environment that they can use in their decision
making. This scanning of the economic and business environment can be
undertaken in a variety of ways, including2
Unfocused The manager, by virtue of what he/she reads, hears and
scanning watches exposes him/herself to information that may prove
useful. Whilst the behaviour is unfocused and the manager has
no specific purpose in mind, it is not unintentional
Semi- Again, the manager is not in search of particular pieces of
focused information that he/she is actively searching but does narrow
scanning the range of media that is scanned. For instance, the manager
may focus more on economic and business publications,
broadcasts etc. and pay less attention to political, scientific or
technological media.
Informal This describes the situation where a fairly limited and
search unstructured attempt is made to obtain information for a
specific purpose. For example, the marketing manager of a firm
considering entering the business of importing frozen fish from
a neighbouring country may make informal inquiries as to
prices and demand levels of frozen and fresh fish. There would
be little structure to this search with the manager making
inquiries with traders he/she happens to encounter as well as
with other ad hoc contacts in ministries, international aid
agencies, with trade associations, importers/exporters etc.
Formal This is a purposeful search after information in some
search systematic way. The information will be required to address a
specific issue. Whilst this sort of activity may seem to share the
characteristics of marketing research it is carried out by the
manager him/herself rather than a professional researcher.
Moreover, the scope of the search is likely to be narrow in scope
and far less intensive than marketing research
Marketing intelligence is the province of entrepreneurs and senior managers
within an agribusiness. It involves them in scanning newspaper trade
magazines, business journals and reports, economic forecasts and other
media. In addition it involves management in talking to producers, suppliers
and customers, as well as to competitors. Nonetheless, it is a largely
informal process of observing and conversing.
Some enterprises will approach marketing intelligence gathering in a more
deliberate fashion and will train its sales force, after-sales personnel and
district/area managers to take cognisance of competitors' actions, customer
complaints and requests and distributor problems. Enterprises with vision
will also encourage intermediaries, such as collectors, retailers, traders and
other middlemen to be proactive in conveying market intelligence back to
them.
Marketing models: Within the MIS there has to be the means of
interpreting information in order to give direction to decision. These models
may be computerised or may not. Typical tools are:
· Time series sales modes
· Brand switching models
· Linear programming
· Elasticity models (price, incomes, demand, supply, etc.)
· Regression and correlation models
· Analysis of Variance (ANOVA) models
· Sensitivity analysis
· Discounted cash flow
· Spreadsheet 'what if models
These and similar mathematical, statistical, econometric and financial
models are the analytical subsystem of the MIS. A relatively modest
investment in a desktop computer is enough to allow an enterprise to
automate the analysis of its data. Some of the models used are stochastic,
i.e. those containing a probabilistic element whereas others are
deterministic models where chance plays no part. Brand switching models
are stochastic since these express brand choices in probabilities whereas
linear programming is deterministic in that the relationships between
variables are expressed in exact mathematical terms.
Over the past three decades, subtle changes in the theory and practice of
marketing have been fundamentally reshaping companies. These changes
have also been evident in marketing and management related information
systems.
More and more, companies are faced with the need to control an ever larger
and rapidly changing marketing environment. The information processing
requirements of companies are expanding as their competitive environments
become more dynamic and volatile[1]. To handle the increasing external and
internal information flow and to improve its quality, companies will need to
take advantage of the opportunities offered by modern information
technology (IT) and information systems (IS). Managing marketing
information by means of IT has become one of the most vital elements of
effective marketing. By collecting and sharing marketing information and by
using it to promote corporate and brand image, IS offer new ways of
improving internal efficiencies of the firm. Information systems allow
dynamic marketing communication between personnel in corporate
planning, accounting, advertising and sales promotion, product
management, channels of distribution and direct sales.
Information technology-based marketing information systems (MkIS) have
been with us for many years. The importance of computers in marketing
was highlighted by Kotler. Traditionally, MkIS has been seen as a system to
support marketing management in its decision making. In addition to the
management perspective, MkIS can be an essential tool for the entire
marketing organization. Some researchers have classified IS in marketing by
the tasks for which they are customarily used. Moriarty and Swartz
proposed a concept of marketing and sales productivity (MSP) systems
which consists of four subsystems:
salesperson productivity tools, direct mail, telemarketing and sales
management.
However, these new, more operational, IS have not yet been used
in the context of the MkIS concept.
RESEARCH METHODOLOGY
RESEARCH OBJECTIVE
The objective of this research is to find out how to implement the
management of information systems in the production of new product in an
organization. By using the concept if MIS, it is seen that the organization
benefits by accurate decision making, management of time, coordination
within an organization among its employees.
DATA COLLECTION
For conducting the research, Secondary data has been used .Secondary
data has been collected in the form of journals and past paper works done
in the field. Various case studies as well as research papers has been
analyzed to know the need of MIS in an organization and that too specially
during the development of new product in an organization.
Secondary Data:-I have finalized some comments from the industry experts
on their perspective of trends in information systems and its applications.
DATA ANALYSIS
As no first hand information is collected through the mode of primary data,
there is no data to be analyzed.
MANAGEMENT INFORMATION SYSTEM(MIS)
A management information system (MIS) is a system or process that
provides information needed to manage organizations effectively.
Management information systems are regarded to be a subset of the
overall internal controls procedures in a business, which cover 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.
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. The term is commonly used to
refer to the group of information management methods tied to the
automation or support of human decision making.
For example : Decision support systems, Resource and people management
applications, Enterprise Resource Planning (ERP), Supply Chain
Management (SCM), Customer Relationship Management (CRM), project
management and database retrieval applications.
An 'MIS' is a planned system of the collecting, processing, storing and
disseminating data in the form of information needed to carry out the
functions of management. In a way it is a documented report of the activities
that were planned and executed.
The terms MIS and information system are often confused. Information
systems include systems that are not intended for decision making. The
area of study called MIS is sometimes referred to, in a restrictive sense,
as information technology management. That area of study should not be
confused with computer science. IT service management is a practitioner-
focused discipline. MIS has also some differences with ERP which
incorporates elements that are not necessarily focused on decision support.
CONCLUSIONS AND LIMITATIONS
Information technology has a key role to play in new flexible
organization forms such as strategic partnerships and cross-
functional networks. While new organizations will be designed around
business processes rather than functional hierarchies
Attention must be paid to details and to the multiple groups involved
with the implementation project
An innovative approach must be taken toward reconciling the new
system with existing organizational structures
An inclusive people-orientation must be maintained during the
system selection period and throughout these projects
POSSIBLE AREAS FOR FURTHER STUDY
Beyond merely filling in the blanks that exist in this area of study, the
future roles of information systems may lie beyond our current capacity to
imagine or comprehend.
For example, IT may even have the potential to replace, postpone, or heal
the lost sense of community identified by socio political observers
For example: What are the social contexts in which information systems are
helping to heal the growing sense of isolation many people feel today?
As is often the case in life, strength in one area can turn out to be weakness
in another. I believe the reverse may also be true. Just as a faint ray of hope
might sustain an individual trapped in a collapsed building or mine shaft for
longer than believed possible, the faint sign of human connection felt by a
lone individual who has access to the internet might sustain what remains
of the ‘social contract’.
The sphere of influence information systems enjoy is likely to broaden and
deepen as we succeed in expanding the interface between citizens and their
government.
