Thanks to visit codestin.com
Credit goes to www.scribd.com

0% found this document useful (0 votes)
7 views27 pages

ITM Module 1

Management Information Systems (MIS) are integrated systems that utilize hardware, software, data, and human elements to support decision-making and organizational operations. MIS plays a crucial role in enhancing efficiency, communication, and strategic planning within organizations by providing timely and relevant information. Additionally, it impacts organizational performance by streamlining processes, facilitating data management, and fostering an environment conducive to innovation.

Uploaded by

rajisuma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
7 views27 pages

ITM Module 1

Management Information Systems (MIS) are integrated systems that utilize hardware, software, data, and human elements to support decision-making and organizational operations. MIS plays a crucial role in enhancing efficiency, communication, and strategic planning within organizations by providing timely and relevant information. Additionally, it impacts organizational performance by streamlining processes, facilitating data management, and fostering an environment conducive to innovation.

Uploaded by

rajisuma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 27

Information Technology for Managers Module-1

What is MIS?

MIS is an organized integration of hardware and software technologies, data, processes, and
human elements. It is a software system that focuses on the management of information
technology to provide efficient and effective strategic decision making.

What is MIS? MIS is the acronym for Management Information Systems. MIS is a set of
procedures which, when executed, provides information to support decision making.

A Management Information System is

 An integrated user-machine system

 For providing information

 To support the operations, management, analysis, and decision-making functions

 In an organization

The system utilizes

 Computer hardware & software

 Manual procedures

 Models for analysis, planning, control, and decision making, and

 A database

MIS Definition:

 Management Information System (MIS) is an integrated man/machine system for


providing information to hold up the operations, management and decision making
functions in an organization-G.B. Davis
 A formal method of collecting timely information in a presentable form in order to
facilitate effective decision making and implementation, in order to carry out
organisational operations for the purpose of achieving the organisational goals-Walter I.
Kennevan

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 1


Information Technology for Managers Module-1

 A Management Information System is an organized portfolio of formal systems for


obtaining, processing, and delivering information in support of the business operations
and management of an organization.

MIS Meaning
MIS Meaning: A management information system is an acronym of three words, viz.,
Management, information, system. In order to fully understand the term MIS, let us try to
understand these three words.

1.Management: Management is the art of getting things done through and with the
people in formally organised groups.

2.Information: Information is data that is processed and is presented in a form which


assists decision-making. It may contain an element of surprise, reduce uncertainty or
provoke a manager to initiate an action.

3.System: A system is an orderly grouping of interdependent components linked together


according to a plan to achieve a specific goal. The term system is the most loosely held
term in management literature because of its use in different contexts.
Role of Management Information Systems in an Organization
The role of the MIS in an organization can be compared to the role of heart in the body.
The information is the blood and MIS is the heart. In the body the heart plays the role of
supplying pure blood to all the elements of the body including the brain. The heart works
faster and supplies more blood when needed. It regulates and controls the incoming
impure blood, processes it and sends it to the destination in the quantity needed. It fulfills
the needs of blood supply to human body in normal course and also in crisis.
MIS plays exactly the same role in the organization. The system ensures that an
appropriate data is collected from the various sources, processed, and sent further to all
the needy destinations. The system is expected to fulfill the information needs of an
individual, a group of individuals, the management functionaries, the managers and the
top management. MIS satisfies the diverse needs through a variety of systems such as

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 2


Information Technology for Managers Module-1

Query Systems, Analysis Systems, Modeling Systems and Decision Support Systems,
MIS helps in Strategic Planning, Management Control, Operational Control and
Transaction Processing.
MIS helps the clerical personnel in the transaction processing and answers their queries
on the data pertaining to the transaction, the status of a particular record and references
on a variety of documents. MIS helps the junior management personnel by providing the
operational data for planning, scheduling and control, and helps them further in decision
making at the operations level to correct an out of control situation.
MIS helps the middle management in short them planning, target setting and controlling
the business functions. It is supported by the use of the management tools of planning and
control. MIS helps the top management in goal setting, strategic planning and evolving
the business plans and their implementation. MIS plays the role of information
generation, communication, problem identification and helps in the process of decision
making. MIS, therefore, plays a vital role in the management, administration and
operations of an organization.
Impact of Management Information Systems in an Organization
Since the MIS plays a very important role in the organization, it creates an impact on the
organization’s functions, performance and productivity. With good support, the
management of marketing, finance, production and personnel become more efficient. The
tracking and monitoring of the functional targets becomes easy. The functional, managers
are informed about the progress, achievements and shortfalls in the probable trends in the
various aspects of business. This helps in forecasting and long term perspective planning.
The manager’s attention is brought to a situation which is exceptional in nature, inducing
him to take an action or a decision in the matter. A disciplined information reporting
system creates a structured data and a knowledge base for all the people in the
organization. The information is available in such a form that it can be used straight away
or by blending analysis, saving the manager’s valuable time.

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 3


Information Technology for Managers Module-1

MIS creates another impact in the organization which relates to the understanding of the
business itself. MIS begins with the definition of a data entity and its attributes. It uses a
dictionary of data, entity and attributes, respectively, designed for information generation
in the organization. Since all the information system use the dictionary, there is common
understanding of terms and terminology in the organization bringing clarity in the
communication and a similar understanding throughout the organization. MIS calls for a
systematization of the business operation for an effective system design.

A well designed system with focus on the manger makes an impact on the managerial
efficiency. The fund of information motivates an enlightened manger to use a variety of
tools of management. It helps him to resort to such exercises as experimentation and
modeling. The use of computers enables him to use the tools techniques which are
impossible to use manually.

Since the MIS works on the basic systems such as transaction processing and databases,
the drudgery of the clerical work is transferred to the computerized system, relieving the
human mind for better work. It is observed that a lot of manpower is engaged in this
activity in the organization. The study of the individual’s time utilization and its
application has revealed that seventy percent of the time is spent in recording, searching,
processing and communication. This is a large overhead in the organization. MIS has a
direct impact on this overhead. It creates an information based work culture in the
organization.

Components of MIS
Components of Management Information System (MIS)
The MIS has various components, which are as follows:
1. Executives
Executives are the people who utilize MIS. These people are computer professionals who operate
MIS for data processing to achieve organizational goals like planning and decision-making.

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 4


Information Technology for Managers Module-1

2. Hardware
The hardware components of MIS include various input and output devices that helps in feeding
data as well as displaying the information when required. The input devices include the
keyboard, scanners and mouse. The output devices may be the monitor, printer, network devices,
and so on.
3. Software
Computer programs which are designed to do a specific task for example, MS Office, Banking
Software’s, Railway’s applications etc, different kinds of software available to process the
data/information in an organization such as ERP (enterprise resource planning) and CRM
(customer relationship management).
4. Organizational Procedures
Procedures are sets of rules or guidelines that an organization establishes for the use of a
computer-based information system. The procedures may vary from one organization to another.
It may also vary from one department to another as per the requirement. For example, the
working of production department is different from the working of sales department. The
production department requires information regarding the raw material or quantity of goods to be
produced. So, the production department sets its procedures in such a way that the MIS system
helps in retrieving the information required by the department. In the similar way, the sales
department requires information regarding the quantity of goods sold and the other expenses that
occurred during the sales of the product. Therefore, the sales department sets the procedures in
such a way that they get only that information which is required from the MIS.

Functions of MIS
The main goal to set up an MIS in a company is to utilize the information by its managers for
managerial purpose for decision making. MIS performs following functions to achieve
organizational goal:

1.To collect useful data:


MIS executes the data through computer system using the sources of an organization. The
organizational data is stores in computer system or as a paper record by its end users.

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 5


Information Technology for Managers Module-1

2. Data Processing:
Processing data includes converting the storage data into the required information to take
beneficial actions. Data processing includes mathematical and logical operations like,
calculations, sorting, classifying and summarizing the data. The data processing signifies
processing activities as:
 Organize data
 Analysis on data
 Apply statistical, mathematical, operations
 To create predictive modeling
 Research and forecasting

3. Information storage and retrieval:


MIS stores data as an organizational record and processed for future use. The data organizes as a
fields, records, files and databases for future use. Information retrieval comprises to access the
stored data as per the requirements of the management users.

4. Disseminating management information:


Information of finished product is categorizes and dispersed to the users in an organization as per
the needs. This information could be periodic, through reports or online through computer
terminals. Figure shows various functions performed by MIS.

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 6


Information Technology for Managers Module-1

Management Control System:


The management control system is also referred to as MCS and is defined as an informal as well
as a formal framework that an organization puts in place to compare its strategy and goals
against the actual outcome.

It is a measurement tool that determines whether the business is able to perform its functions
effectively and is it able to meet its objectives.

It wants to be consistent in its efforts to reach goal alignment. The information after the
comparisons helps the management in making important managerial decisions.

Meaning of management control system

An organization adopts the management control system to keep a vigilant eye on its performance
levels. The system helps to communicate the objectives and goals of a business entity to the
managers and ensuring that everyone works towards attaining them as quickly and effectively as
possible.

It is a comprehensive system where a framework is crafted to control and monitor internal


aspects of the business as well as the external behavior and environment.

The organizations that have adopted a management control system use it for both nonfinancial
and financial measures as both of them leave a direct impact on the business which needs to be
monitored.

Here one of the internal factors can include human resources and the external factor can be
industry development, for instance, new regulations for a product.

There are several factors that have a direct influence on the designing of a management control
system. These are –

1. Size and spread of an entity

A small firm is very different from a larger one in terms of size and spread. The content and
nature for a management control system hence will also be different to suit individual purposes.

2. Types of responsibility centers

You cannot have one MCS for different types of responsibility centers as identifying, measuring,
and comparing individual centers is not possible; hence, you need its implementation
accordingly.

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 7


Information Technology for Managers Module-1

3. Decentralization and delegation

The extent of decentralization and delegations differs from company to company so that it can
meet the necessary challenges head-on.

4. Nature of operations in terms of divisibility

The MCS is affected by the nature of operations in terms of divisibility within an organization.
In some companies, the division is as per the products whereas in others it can be something else.

5. Perceptions of people

The perception of every individual is different about his job satisfaction or work ethics. While
designing the management control system, it is necessary to keep this factor in mind.

MIS support to Organization Effectiveness:


Management Information Systems (MIS) play a critical role in supporting organizational
effectiveness by providing tools and processes to collect, process, store, and distribute
information within an organization. Here's how MIS contributes to organizational effectiveness:

1. Data Management:

MIS helps in organizing and managing vast amounts of data efficiently. It ensures data
accuracy, integrity, and security, allowing decision-makers to rely on credible information.

2. Decision Making:

MIS provides timely and relevant information to managers and decision-makers, enabling them
to make informed and effective decisions. It helps in analyzing trends, forecasting, and
identifying potential opportunities or threats.

3. Operational Efficiency:

By streamlining processes and automating routine tasks, MIS enhances operational efficiency. It
reduces manual errors, saves time, and optimizes resource utilization.

4. Communication and Collaboration:

MIS facilitates communication and collaboration within and across departments. It allows
sharing of information, documents, and resources, fostering teamwork and improving overall
productivity.

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 8


Information Technology for Managers Module-1

5. Strategic Planning:

MIS supports strategic planning by offering insights into market trends, customer behavior, and
industry changes. It aids in formulating long-term goals and devising strategies to achieve them.

6. Performance Monitoring and Control:

It helps in monitoring organizational performance through key performance indicators (KPIs)


and other metrics. This monitoring assists in identifying deviations from targets and
implementing corrective actions.

7. Customer Relationship Management:

MIS systems often include customer databases and tools for managing relationships. By
understanding customer needs and preferences, organizations can tailor their products or services
accordingly.

8. Adaptability and Innovation:

MIS fosters an environment conducive to innovation by providing access to information that can
spark new ideas or improvements. It also helps in adapting to changes in technology, regulations,
or market conditions.

MIS for E- business Digital Firms

Managing Information Systems (MIS) in e-businesses and digital firms is crucial for their
success. Here are key components and considerations for an MIS in such contexts:

1. Data Management: E-businesses deal with vast amounts of data. An MIS should include
databases and data warehouses to efficiently collect, store, and manage this information.

2. E-commerce Platforms: Integration of e-commerce platforms, such as online


marketplaces, payment gateways, and customer relationship management (CRM)
systems, is essential for conducting business online.

3. Website Analytics and Performance Tracking: Implementing tools for tracking website
traffic, user behavior, and performance metrics helps in understanding customer
preferences and improving user experience.

4. Cybersecurity Measures: Robust security protocols, including encryption, firewalls, and


intrusion detection systems, are vital to protect sensitive customer data and ensure secure
transactions.

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 9


Information Technology for Managers Module-1

5. Supply Chain Management (SCM) Integration: For digital firms involved in product-
based e-business, integrating SCM systems can optimize inventory management, order
processing, and logistics.

6. Customer Relationship Management (CRM): An MIS should incorporate CRM systems


to manage customer interactions, track leads, and personalize marketing efforts.

7. Mobile Integration: Considering the increasing use of mobile devices, optimizing


platforms for mobile accessibility and developing mobile applications can enhance
customer reach.

8. Cloud Computing and Infrastructure: Utilizing cloud services for storage, computation,
and software delivery can offer scalability, flexibility, and cost-efficiency for digital
firms.

9. Data Analytics and Business Intelligence (BI): Leveraging analytics tools helps in
extracting insights from data, enabling informed decision-making and strategic planning.

10. Regulatory Compliance: Ensuring adherence to legal and regulatory requirements,


especially regarding data protection and consumer privacy, is crucial to avoid legal
issues.

11. User Experience Enhancement: Continuous improvement of the user interface (UI) and
user experience (UX) based on data-driven insights helps in retaining customers.

12. Adaptability and Innovation: An effective MIS should be adaptable to technological


advancements and open to innovation to stay competitive in the rapidly evolving digital
landscape.

E-COMMERCE:

Electronic commerce or E-Commerce is a term for any type of business, or commercial


transaction that involves the transfer of information across the Internet. It covers a range of
different types of businesses, from consumer based retail sites, through auction or music sites, to
business exchanges trading goods and services between corporations. It is currently one of the
most important aspects of the Internet to emerge. E-Commerce allows consumers to
electronically exchange goods and services with no barriers of time or distance. Electronic
commerce has expanded rapidly over the past five years and is predicted to continue at this rate,
or even accelerate. In the near future, the boundaries between “conventional” and “electronic”
commerce will become increasingly blurred as more and more businesses move sections of their
operations onto the Internet.

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 10


Information Technology for Managers Module-1

There are a number of ways in which companies can make money from the internet. Probably
the best known way of making money is by selling some commodity; this could be a non-IT
commodity such as a CD or item of clothing or it could be some piece of application software, a
font, a browser plug-in or an operating system. Other forms of revenue rising are:

• Auction sites which auction items on the Internet and make profits by taking some commission
from the sales.

• Affiliate sites which contain a link to a normal retailing site and are paid when a visitor from
the affiliate site makes a visit to the retail site to make a purchase. The affiliate site will usually
attract visitors by offering some information such as providing links to resources and tutorials on
some specific topic or technology such as Java.

• Banner adverts. These advertisements will contain links to the company doing the advertising;
they will be displayed on a site and will result in some revenue being earned by the site owner
when the banner advert is clicked.

• Bulk-buying sites where a site collects a number of users together all of whom want to buy
some item; the site negotiates a discount with the supplier and takes a commission.

• Shopping malls where a number of e-commerce sellers congregate together on the same
website; often these sellers will be related to each other, for example they may all sell luxury
goods. The mall owner takes a percentage of their profit.

• Portals which contain massive amounts of material on a particular topic, for example a portal
devoted to fishing. Such sites will contain thousands of resource links, tutorials and indexes.
They will also contain links to merchants who sell goods associated with the portal topic. There
may be a number of ways that the portal owner would make money, for example they could be
paid by a merchant for each visit from the portal or the merchant may pay a flat fee for being
included in the portal.

• Digital publishing sites which are effectively magazines on the web. They make profits in a
number of ways including advertising and charging vendors for references to their website.

• Licensing sites which make some software available to other sites, for example search engines
which allow a visitor to the site to search for material more easily.

• Community sites: These are like portals but involve the visitors more, for example a
community site devoted to nurses might include a number of chat rooms which allow nurses to
talk together in real time and swap advice. Money is made from such sites in the same way as
with portals.

• Name-your-price sites are websites where the buyer haggles with the retailer and names what
price they will pay for a particular product. Such sites make profits in the same way as normal

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 11


Information Technology for Managers Module-1

retail sites. Such applications have changed the face of retailing, for example the fast
communication of the Internet has made bulk buying sites feasible and popular and has given
rise to a number of novel commercial models. The most popular model is one which involves a
pyramid of services, ranging from those that are free, to those which are charged at a premium
rate. For example, a site which sells a piece of software might give the basic software away for
free and then offer increasingly more sophisticated versions of the software to buyers. This form
of partially free charging has percolated down from the internet to conventional software sales;
for example, the company Qualcomm that markets the Eudora email reader makes a version of
the program available for no cost, but will charge for fully featured versions.

ADVANTAGES AND LIMITATIONS:

E-commerce provides many new ways for businesses and consumers to communicate and
conduct business. There are a number of advantages and disadvantages of conducting business in
this manner.

Advantages of E-Commerce Some advantages that can be achieved from e-commerce include:

• Being able to conduct business 24 x 7 x 365.: E-commerce systems can operate all day every
day. Your physical storefront does not need to be open in order for customers and suppliers to be
doing business with you electronically.

• Access the global marketplace: The Internet spans the world, and it is possible to do business
with any business or person who is connected to the Internet. Simple local businesses such as
specialist record stores are able to market and sell their offerings internationally using e-
commerce. This global opportunity is assisted by the fact that, unlike traditional communications
methods, users are not charged according to the distance over which they are communicating.

• Speed: Electronic communications allow messages to traverse the world almost


instantaneously. There is no need to wait weeks for a catalogue to arrive by post: that
communications delay is not a part of the Internet / ecommerce world.

• Marketspace: The market in which web-based businesses operate is the global market. It may
not be evident to them, but many businesses are already facing international competition from
web-enabled businesses.

• Opportunity to reduce costs: The Internet makes it very easy to 'shop around' for products and
services that may be cheaper or more effective than we might otherwise settle for. It is
sometimes possible to, through some online research, identify original manufacturers for some
goods - thereby bypassing wholesalers and achieving a cheaper price.

• Computer platform-independent: Many, if not most, computers have the ability to


communicate via the Internet independent of operating systems and hardware. Customers are not
limited by existing hardware systems.

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 12


Information Technology for Managers Module-1

• Efficient applications development environment: In many respects, applications can be more


efficiently developed and distributed because the can be built without regard to the customer's or
the business partner's technology platform. Application updates do not have to be manually
installed on computers. Rather, Internet-related technologies provide this capability inherently
through automatic deployment of software updates.

• Allowing customer self service and 'customer outsourcing': People can interact with businesses
at any hour of the day that it is convenient to them, and because these interactions are initiated by
customers, the customers also provide a lot of the data for the transaction that may otherwise
need to be entered by business staff. This means that some of the work and costs are effectively
shifted to customers; this is referred to as 'customer outsourcing'.

• Stepping beyond borders to a global view. Using aspects of e-commerce technology can mean
your business can source and use products and services provided by other businesses in other
countries.

• A new marketing channel: The Internet provides an important new channel to sell to
consumers.

Limitations and Constraints of E-Commerce E-Commerce :

Some disadvantages and constraints of e-commerce include the following.

• Time for delivery of physical products: It is possible to visit a local music store and walk out
with a compact disc or a bookstore and leave with a book. E-commerce is often used to buy
goods that are not available locally from businesses all over the world, meaning that physical
goods need to be delivered, which takes time and costs money. In some cases there are ways
around this, for example, with electronic files of the music or books being accessed across the
Internet, but then these are not physical goods.

• Physical product, supplier and delivery uncertainty: When you walk out of a shop with an
item, it's yours. You have it; you know what it is, where it is and how it looks. In some respects
e-commerce purchases are made on trust. This is because, firstly, not having had physical access
to the product, a purchase is made on an expectation of what that product is and its condition.
Secondly, because supplying businesses can be conducted across the world, it can be uncertain
whether or not they are legitimate businesses and are not just going to take your money. It's
pretty hard to knock on their door to complain or seek legal recourse! Thirdly, even if the item is
sent, it is easy to start wondering whether or not it will ever arrive.

• Perishable goods: Forget about ordering a single gelato ice cream from a shop in Rome!
Though specialized or refrigerated transport can be used, goods bought and sold via the Internet
tend to be durable and non-perishable: they need to survive the trip from the supplier to the

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 13


Information Technology for Managers Module-1

purchasing business or consumer. This shifts the bias for perishable and/or non-durable goods
back towards traditional supply chain arrangements, or towards relatively more local e-
commerce-based purchases, sales and distribution. In contrast, durable goods can be traded from
almost anyone to almost anyone else, sparking competition for lower prices. In some cases this
leads to disintermediation in which intermediary people and businesses are bypassed by
consumers and by other businesses that are seeking to purchase more directly from
manufacturers.

• Limited and selected sensory information: The Internet is an effective conduit for visual and
auditory our information: seeing pictures, hearing sounds and reading text. However it does not
allow full scope for senses: we can see pictures of the flowers, but not smell their fragrance; we
can see pictures of a hammer, but not feel its weight or balance. Further, when we pick up and
inspect something, we choose what we look at and how we look at it. This is not the case on the
Internet. If we were looking at buying a car on the Internet, we would see the pictures the seller
had chosen for us to see but not the things we might look for if we were able to see it in person.
And, taking into account our other senses, we can't test the car to hear the sound of the engine as
it changes gears or sense the smell and feel of the leather seats. There are many ways in which
the Internet does not convey the richness of experiences of the world. This lack of sensory
information means that people are often much more comfortable buying via the Internet generic
goods - things that they have seen or experienced before and about which there is little
ambiguity, rather than unique or complex things.

• Returning goods: Returning goods online can be an area of difficulty. The uncertainties
surrounding the initial payment and delivery of goods can be exacerbated in this process. Will
the goods get back to their source? Who pays for the return postage? Will the refund be paid?
Will I be left with nothing? How long will it take? Contrast this with the offline experience of
returning goods to a shop.

• Privacy, security, payment, identity, and contract: Many issues arise - privacy of
information, security of that information and payment details, whether or not payment details (eg
credit card details) will be misused, identity theft, contract, and, whether we have one or not,
what laws and legal jurisdiction apply.

• Defined services and the unexpected: E-commerce is an effective means for managing the
transaction of known and established services, that is, things that are everyday. It is not suitable
for dealing with the new or unexpected. For example, a transport company used to dealing with
simple packages being asked if it can transport a hippopotamus, or a customer asking for a book
order to be wrapped in blue and white polka dot paper with a bow. Such requests need human
intervention to investigate and resolve.

• Personal service: Although some human interaction can be facilitated via the web, e-
commerce can not provide the richness of interaction provided by personal service. For most

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 14


Information Technology for Managers Module-1

businesses, e-commerce methods provide the equivalent of an information-rich counter attendant


rather than a salesperson. This also means that feedback about how people react to product and
service offerings also tends to be more granular or perhaps lost using e-commerce approaches. If
your only feedback is that people are (or are not) buying your products or services online, this is
inadequate for evaluating how to change or improve your e-commerce strategies and/or product
and service offerings. Successful business use of e-commerce typically involves strategies for
gaining and applying customer feedback. This helps businesses to understand, anticipate and
meet changing online customer needs and preferences, which is critical because of the
comparatively rapid rate of ongoing Internet-based change.

• Size and number of transactions: E-commerce is most often conducted using credit card
facilities for payments, and as a result very small and very large transactions tend not to be
conducted online. The size of transactions is also impacted by the economics of transporting
physical goods. For example, any benefits or conveniences of buying a box of pens online from a
US-based business tend to be eclipsed by the cost of having to pay for them to be delivered to
you in Australia. The delivery costs also mean that buying individual items from a range of
different overseas businesses is significantly more expensive than buying all of the goods from
one overseas business because the goods can be packaged and shipped together.

E-communication:
E-communication, or electronic communication, refers to the exchange of information,
messages, or data through electronic means such as emails, instant messaging, social media,
video conferencing, and more. It has revolutionized how people connect and interact across the
globe, enabling rapid, efficient, and often real-time communication.

With the advent of technology, e-communication has become a cornerstone of modern life,
facilitating business operations, personal connections, education, and various other facets of
society. Its benefits include speed, convenience, and the ability to bridge geographical distances,
allowing individuals and organizations to communicate swiftly and effectively regardless of
location.

However, while e-communication offers numerous advantages, it also presents challenges such
as security concerns, misinterpretation of messages due to lack of non-verbal cues, and
information overload. As such, it's crucial to use e-communication thoughtfully, ensuring clarity,
professionalism, and security in all interactions.

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 15


Information Technology for Managers Module-1

"E-Communication" in Management Information Systems (MIS) refers to the use of electronic


methods and technologies for communication within an organization. This encompasses various
forms of electronic communication tools such as email, instant messaging, video conferencing,
and collaboration platforms.

These tools play a crucial role in MIS by facilitating:

1. Efficient Communication: E-communication allows for quick and efficient exchange of


information among employees, teams, and departments. It helps in reducing delays in
decision-making processes and enables faster responses to queries or issues.

2. Collaboration: Through electronic communication, teams can collaborate regardless of


their physical location. They can share documents, discuss ideas, and work together on
projects using tools like shared cloud storage, online document editing, and virtual
meeting platforms.

3. Information Sharing: MIS relies on the effective sharing of information across the
organization. E-communication enables the dissemination of important updates,
announcements, policies, and reports to relevant stakeholders promptly.

4. Remote Work and Flexibility: With the rise of remote work, e-communication has
become essential for organizations to facilitate seamless communication among remote
teams. It allows employees to work from anywhere while staying connected and
productive.

5. Record Keeping and Documentation: Electronic communication tools often provide


the ability to archive messages and conversations, creating a valuable repository for
future reference and record-keeping purposes.

E-collaborations:
E-collaborations, or electronic collaborations, refer to the process of individuals or
groups working together using electronic or digital tools. This can encompass various
forms, such as:

1. Online Meetings and Discussions: Platforms like Zoom, Microsoft Teams, or Google
Meet facilitate real-time discussions, brainstorming sessions, and decision-making among
team members located in different places.

2. File Sharing and Collaboration Tools: Google Drive, Dropbox, or OneDrive allow
multiple users to access, edit, and collaborate on documents, spreadsheets, presentations,
and other files simultaneously.

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 16


Information Technology for Managers Module-1

3. Project Management Software: Tools like Asana, Trello, or Jira assist in organizing
tasks, setting deadlines, and tracking progress, enabling teams to collaborate effectively
on projects.

4. Communication Channels: Email, instant messaging apps like Slack or Microsoft


Teams, and even social media platforms can serve as channels for ongoing
communication and collaboration.

5. Virtual Whiteboards and Mind Mapping Tools: Platforms such as Miro or Lucidspark
enable teams to visualize ideas, create mind maps, and collaborate on concepts in a
virtual space.

E-collaboration in Management Information Systems (MIS) refers to the use of electronic


tools and technologies to facilitate collaboration, communication, and information
sharing among individuals or groups within an organization. It encompasses various
digital platforms, software, and communication channels that enable teams to work
together regardless of geographical barriers. Here are some examples and aspects of e-
collaboration in MIS:

1. Communication Tools: Utilizing email, instant messaging, video conferencing, and


collaboration software (like Slack, Microsoft Teams, or Zoom) to facilitate real-time or
asynchronous communication among team members.

2. Document Sharing and Management: Platforms like Google Drive, Dropbox, or


SharePoint allow teams to store, share, and collaborate on documents, spreadsheets, and
presentations in a centralized and accessible manner.

3. Project Management Software: Tools such as Asana, Trello, or Jira help in planning,
organizing, and tracking tasks and projects, allowing teams to collaborate efficiently, set
deadlines, assign responsibilities, and monitor progress.

4. Virtual Meetings and Webinars: Conducting meetings, presentations, training sessions,


and webinars through online platforms, enabling remote participation and collaboration
among geographically dispersed teams.

5. Collaborative Decision-Making: Using online forums, discussion boards, or decision-


making platforms that enable teams to exchange ideas, discuss issues, and collectively
make decisions even when not physically present in the same location.

6. Virtual Teams and Remote Work: Enabling employees to work from different
locations using technology to stay connected, collaborate, and contribute to projects,
regardless of physical distance.

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 17


Information Technology for Managers Module-1

7. Knowledge Sharing Platforms: Implementing intranets, wikis, or knowledge bases


where employees can contribute their expertise, share information, and access resources
to enhance collective knowledge within the organization.

8. Security Measures: Implementing security protocols, encryption, and access controls to


ensure the confidentiality and integrity of shared information and data.

Real Time Enterprise:

"Real Time Enterprise" (RTE) refers to an approach where businesses aim to make
immediate, data-driven decisions by leveraging up-to-date information. This concept
revolves around using technology to enable faster data collection, analysis, and decision-
making processes.

RTE involves:

1. Data Integration: Aggregating data from various sources in real time.

2. Analytics: Employing tools to process and analyze data swiftly.

3. Decision-Making: Using real-time insights to make quick, informed decisions.

4. Agility: Adapting rapidly to changing conditions or market demands.

Implementing an RTE strategy often involves the use of technologies like IoT (Internet of
Things), AI (Artificial Intelligence), machine learning, and advanced analytics. These
technologies enable the collection of real-time data from sensors, devices, and various
systems, allowing businesses to gain insights and react promptly to market shifts,
customer preferences, or operational changes.

Ultimately, RTE aims to create a more agile and responsive business environment,
helping companies stay competitive in fast-paced markets by making data-driven
decisions in real time.

MIS: Strategic Business Planning

Management Information Systems (MIS) play a crucial role in strategic business


planning. MIS involves the use of technology, people, and processes to effectively
manage information within an organization. When it comes to strategic business
planning, MIS aids in several ways:

1. Data Collection and Analysis: MIS gathers, processes, and analyzes data from various
sources within and outside the organization. This information helps in understanding

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 18


Information Technology for Managers Module-1

market trends, consumer behavior, and industry changes, which are vital for strategic
planning.

2. Decision Making: MIS provides accurate, timely, and relevant information to the
management, enabling informed decision-making. It offers insights into performance
metrics, allowing leaders to identify strengths, weaknesses, opportunities, and threats.

3. Forecasting and Predictive Analysis: Through historical data and advanced analytics,
MIS supports forecasting models and predictive analysis. This assists in anticipating
future trends and potential scenarios, aiding in proactive planning.

4. Resource Allocation: MIS assists in resource allocation by providing information on


resource availability, utilization, and requirements. This helps in optimizing resources for
strategic initiatives.

5. Integration with Strategy: MIS aligns with the strategic goals of the organization. It
ensures that technological advancements and information systems are in sync with the
long-term vision and objectives of the business.

6. Risk Management: MIS identifies and assesses risks by monitoring various aspects of
the business environment. It allows for the implementation of risk mitigation strategies
within the strategic plan.

7. Communication and Collaboration: MIS facilitates communication and collaboration


among different departments and stakeholders. This is crucial for ensuring that everyone
is working towards the same strategic goals.

8. Performance Measurement: MIS establishes metrics and key performance indicators


(KPIs) to measure the progress and success of strategic plans. It helps in evaluating
whether the set objectives are being met and assists in making necessary adjustments.

Concept of corporate planning:


Corporate planning is a sophisticated planning tool. It has been introduced into the
corporate world recently, first in USA and later in all advanced industrial countries. For
example, BHEL practices corporate planning vigorously. In simple words, corporate
planning is the determination of the long-term goals of a company as a whole and then
developing plans to achieve these goals giving due weightage to environmental changes.
It is planning for overall organisational performance.

Hussey defines corporate planning as, “the formal process of developing objectives for
the corporation and its component parts, evolving alternative strategies to achieve these
and doing this against a background of systematic appraisal of internal strengths and

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 19


Information Technology for Managers Module-1

weaknesses and external environmental changes, the process of translating strategy into
detailed operational plans and seeing that these plans are carried out.”

As per Drucker’s view, “Corporate planning is not confined to taking strategic decisions
in the light of future conditions but is also concerned with the implementation of these
decisions in the best possible way and undertaking periodic review of these decisions in
the light of new development.”

Corporate planning is quite comprehensive as it includes – (i) strategic planning, (ii)


operational planning and (iii) project planning.

Corporate planning involves the process of setting goals, developing strategies, and
outlining actions to achieve long-term success within an organization. It's a
comprehensive approach that considers various aspects of a company's operations,
market dynamics, resources, and future aspirations. Here's an overview:

1. Goal Setting: Corporate planning starts with defining the company's mission, vision, and
objectives. These objectives should be SMART (Specific, Measurable, Achievable,
Relevant, Time-bound) to provide clear direction.

2. Environmental Analysis: Understanding the external environment is crucial. This


involves a thorough analysis of market trends, competitor strategies, regulatory changes,
technological advancements, and other factors that may impact the business.

3. Internal Assessment: Evaluating the company's strengths, weaknesses, opportunities,


and threats (SWOT analysis) helps in understanding its current position. This includes
assessing internal resources, capabilities, and limitations.

4. Strategy Formulation: Based on the analysis, strategies are developed to achieve the
defined objectives. This might involve market expansion, product diversification, cost
leadership, differentiation, or other strategic approaches.

5. Resource Allocation: Allocating resources effectively is essential. This includes


financial resources, human capital, technology, and other assets. Prioritizing and aligning
resources with the chosen strategies is crucial.

6. Implementation: Plans need to be executed effectively. This involves breaking down the
strategy into actionable steps, assigning responsibilities, creating timelines, and
monitoring progress.

7. Performance Monitoring and Control: Regular evaluation of performance against set


targets is vital. Adjustments might be necessary based on changing circumstances or
unexpected challenges.

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 20


Information Technology for Managers Module-1

8. Adaptation and Flexibility: Corporate planning isn't a rigid process; it should be


adaptable to changes in the business environment. Being flexible allows companies to
adjust strategies as needed to stay competitive.

Corporate planning is often led by top management and involves various departments
within an organization. Its aim is to provide a roadmap for the company's growth and
success, ensuring that resources are utilized efficiently to achieve long-term objectives.

Corporate Planning characteristics are:

1. Corporate planning is a formal and systematic process.

2. It is a rational process. It requires imagination, foresight, reflective thinking,


judgement and other mental facilities.

3. Corporate planning is a continuous process. It is a dynamic exercise that goes on


throughout the company’s life.

4. Corporate planning has a long-term perspective.

5. Corporate planning provides an integrated framework within which each of the


functional and departmental plans are tied together.

6. Corporate planning is basically concerned with the future impact of present decisions.

Essentiality of strategic Planning:


A culture of strategic planning can provide a framework for aligning priorities, making
decisions, allocating resources, and measuring impact.

Strategic planning is not just a functional exercise. It means the difference between being
a struggling nonprofit and an innovative, cause-driven organization changing the world.
Creating a culture that believes in planning is paramount not just to survive a project, but
to thrive long after the project is complete. Strategic planning takes ideas, inspiration, and
down-in-the-dirt hard work to make transformations.

As discussed in Dana O’Donovan and Noah Rimland Flower’s Stanford Social


Innovation article, “The Strategic Plan is Dead. Long Live Strategy,” today strategy must
break free from a static plan that just sits on the shelf; it must become more adaptive and
directive.

A number of nonprofit organizations have developed successful strategic plans that


inform both their current activities and their long-term vision—notable ones include The

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 21


Information Technology for Managers Module-1

Brooklyn Public Library, American Kidney Fund, and Habitat for Humanity
International.

At Longwood Gardens, strategic planning helped our organization grow from a working
farm in the 1700s to one of the best-in-class horticultural display gardens in the world—a
place that aims to inspire its more than 1 million annual visitors through excellence in
garden design, horticulture, education, and the arts.

We have methodically established “The Longwood Way,” a culture of strategic planning


that provides us with a framework for aligning priorities, making decisions, allocating
resources, and measuring our impact. Astounding results of this approach include:
absolute clarity about our organization’s mission, identity, and direction; significant
revenue and visitation increases; value-driven performance reviews; a visionary site
master plan; and increased collaboration and satisfaction among staff.

Here are the five essentials of strategic planning that nonprofits large or small can employ
to transform their organization.

1. Begin at the top.


2. Be inclusive at all levels.
3. Remember that skill of the hand is important to vision.
4. Create the guidebook for decisions of all sizes.
5. Understand that flexibility is critical.

Balanced Scorecard

The Balanced Scorecard is a strategic performance management framework used by


organizations to align business activities with their vision and strategy. It incorporates
various perspectives to measure organizational performance beyond just financial
indicators. There are four primary perspectives typically included in a Balanced
Scorecard:
1. Financial Perspective: This perspective focuses on financial objectives and measures like
revenue growth, profitability, cost reduction, and return on investment. It helps assess the
economic health and success of the organization.
2. Customer Perspective: Here, the organization evaluates its performance from the
viewpoint of its customers. Metrics might include customer satisfaction, retention,
acquisition, and market share. Understanding and meeting customer needs are critical for
long-term success.
3. Internal Business Processes Perspective: This perspective involves identifying the key
processes necessary to deliver value to customers and stakeholders. Metrics may revolve
around operational efficiency, quality improvement, innovation, and cycle times.

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 22


Information Technology for Managers Module-1

4. Learning and Growth (or Organizational Capacity) Perspective: This perspective focuses
on the organization's ability to innovate, improve, and learn. Metrics can include
employee training, skill development, technology adoption, and employee satisfaction.
The Balanced Scorecard provides a balanced view of an organization's performance by
considering both financial and non-financial factors. It helps in setting strategic goals,
tracking performance against those goals, and making informed decisions to improve
overall performance.
Implementing a Balanced Scorecard involves defining strategic objectives in each
perspective, identifying key performance indicators (KPIs) to measure progress toward
those objectives, and regularly reviewing and adjusting strategies based on performance
data.

The balanced scorecard (BSC) is a strategic planning and


management system. Organizations use BSCs to:
 Communicate what they are trying to accomplish
 Align the day-to-day work that everyone is doing with strategy
 Prioritize projects, products, and services
 Measure and monitor progress towards strategic targets
The name “balanced scorecard” comes from the idea of looking at strategic measures in
addition to traditional financial measures to get a more “balanced” view of
performance. The concept of balanced scorecard has evolved beyond the simple use of
perspectives and it is now a holistic system for managing strategy. A key benefit of using
a disciplined framework is that it gives organizations a way to “connect the dots”
between the various components of strategic planning and management, meaning that
there will be a visible connection between the projects and programs that people are
working on, the measurements being used to track success (KPIs), the strategic objectives
the organization is trying to accomplish, and the mission, vision, and strategy of the
organization.

Characteristics of the Balanced Scorecard Model (BSC)

Information is collected and analyzed from four aspects of a business:

1. Learning and growth are analyzed through the investigation of training and knowledge
resources. This first leg handles how well information is captured and how effectively
employees use that information to convert it to a competitive advantage within the
industry.

2. Business processes are evaluated by investigating how well products are manufactured.
Operational management is analyzed to track any gaps, delays, bottlenecks, shortages, or
waste.

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 23


Information Technology for Managers Module-1

3. Customer perspectives are collected to gauge customer satisfaction with the quality,
price, and availability of products or services. Customers provide feedback about their
satisfaction with current products.

4. Financial data, such as sales, expenditures, and income are used to understand financial
performance. These financial metrics may include dollar amounts, financial ratios, budget
variances, or income targets.

Scorecard:
Creating a scorecard and dashboard can vary depending on what specific metrics or
information you want to track.

1. Define Objectives: Identify the key objectives or goals you want to measure.

2. Select Metrics: Choose specific metrics that align with each objective.

3. Set Targets: Establish realistic targets for each metric.

4. Collect Data: Gather data regularly to track progress.

5. Analyze and Review: Assess the data against the targets to evaluate performance.

Dashboard:

1. Choose a Platform or Tool: Select a platform (Excel, Google Sheets, dedicated


dashboard software) to create your dashboard.

2. Layout Design: Design the dashboard layout with sections for different
metrics/objectives.

3. Visual Representation: Use graphs, charts, and tables to visually represent the data.

4. Real-Time Updates: If applicable, set up the dashboard to receive real-time data


updates.

5. Accessibility: Ensure the dashboard is accessible to relevant stakeholders or team


members.

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 24


Information Technology for Managers Module-1

Security Challenges in E- Enterprises:

E-enterprises, or electronic enterprises, face various security challenges that are unique to
the digital landscape. Some of the significant security challenges include:

1. Cyberattacks: E-enterprises are constantly targeted by cybercriminals using various


attack vectors like phishing, malware, ransomware, and DDoS attacks. These attacks can
lead to data breaches, financial losses, and reputational damage.

2. Data Breaches: The vast amount of sensitive data stored by e-enterprises makes them a
prime target for data breaches. Breaches can occur due to weak security protocols,
insufficient encryption, or human error, exposing sensitive customer and company
information.

3. Insider Threats: Employees or individuals with internal access to systems can pose a
significant threat. Whether through malicious intent or unintentional actions, insider
threats can result in data leaks or system compromises.

4. Compliance and Regulations: E-enterprises must adhere to various regulations and


compliance standards (such as GDPR, HIPAA, etc.), which require stringent data
protection measures. Failure to comply can lead to legal consequences and financial
penalties.

5. Cloud Security: With the migration of services and data to cloud platforms, ensuring the
security of cloud environments becomes critical. Misconfigurations, inadequate access
controls, and shared responsibility models can expose vulnerabilities.

6. Mobile Security: The proliferation of mobile devices in business operations introduces


security risks. Lost or stolen devices, unsecured Wi-Fi connections, and vulnerable
mobile apps can compromise sensitive data.

7. Supply Chain Risks: E-enterprises rely on a network of vendors and partners, which can
introduce security vulnerabilities. Weaknesses in third-party systems or services can be
exploited to gain access to the main enterprise systems.

8. Security Patch Management: Keeping systems and software up-to-date with the latest
security patches is crucial. Failure to promptly apply patches leaves systems vulnerable to
known exploits.

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 25


Information Technology for Managers Module-1

Addressing these challenges requires a comprehensive approach to cybersecurity, including


robust security policies, regular employee training, the use of encryption and authentication
protocols, constant monitoring of networks and systems, and proactive measures to mitigate
risks. Collaboration with cyber security experts and investing in cutting-edge security
technologies can also strengthen an e-enterprise's security posture.

Impacts of Information Technology on society

Information technology (IT) has significantly transformed society in numerous ways, impacting
various aspects of our lives:

1. Communication: IT revolutionized communication through email, social media, instant


messaging, and video conferencing, enabling instant global connectivity and breaking
down geographical barriers.

2. Access to Information: The internet provides a vast repository of information, allowing


people to access knowledge on virtually any topic. This has democratized education and
empowered individuals with information.

3. Economy and Business: IT has reshaped business models, enabling e-commerce, online
banking, and digital transactions. It has streamlined operations, improved efficiency, and
opened new markets.

4. Healthcare: Information technology has improved patient care, diagnosis, and treatment
through electronic health records, telemedicine, medical imaging, and health monitoring
devices.

5. Education: Technology has revolutionized education with online courses, digital


textbooks, educational apps, and interactive learning platforms, making education more
accessible and engaging.

6. Entertainment: Streaming services, online gaming, social media platforms, and digital
content creation tools have transformed the entertainment industry, changing how we
consume media and interact with content.

7. Social Interactions: Social networking sites and messaging apps have altered how
people connect, communicate, and build relationships, affecting social interactions and
behaviors.

8. Work Culture: Remote work, facilitated by IT, has become more prevalent, offering
flexibility and work-life balance but also raising challenges related to boundaries between
work and personal life.

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 26


Information Technology for Managers Module-1

9. Privacy and Security: IT advancements have raised concerns about data privacy,
cybersecurity threats, and ethical use of personal information, leading to debates about
regulation and protection.

10. Environmental Impact: While IT has helped optimize processes and reduce physical
resources through digitization, it has also contributed to electronic waste and energy
consumption.

The impact of information technology on society continues to evolve, presenting both


opportunities and challenges that require ongoing adaptation, regulation, and ethical
considerations.

Karthikeyan S M, Asst. Professor, Dept. of. CSE, SVIT, Bengaluru Page 27

You might also like