Management Information Systems (MIS) –
Lecture 5 Notes
Class Discussions and Conclusion
Course: Management Information Systems
Professor: Prof. Surojit Mukherjee
Institution: Vinod Gupta School of Management, IIT Kharagpur
Week: 01, Lecture 05
Introduction
This concludes the Introduction to MIS section covering fundamental concepts,
construction features, equipment, platforms, benefits, and general aspects of
management information systems.
Key Characteristics of MIS:
Vast and evolving subject - scope increases daily with new technologies
Traditional yet modernizing - continuously updated with AI and emerging fields
Growing importance - information value increases day by day
Never becomes outdated - adapts to technological changes
Enterprise Resource Planning (ERP) - Introduction
Definition
ERP is one of the backbones of MIS in modern enterprises - a software platform that
cuts across all functionalities.
Key Concept: Integration
All business functions are interconnected and integrated
Manufacturing activities impact: Purchase, Materials Management, Finance, Sales
No isolated functions - everything affects everything else
Networked world - we are all interconnected
ERP Power: One-Person Access
Single individual can access information from multiple departments
Sales person can independently check:
o Material management data
o Finance information
o Credit management status
o Availability checks
No dependency on other individuals
Real-time access to cross-functional information
Benefits of Integration:
Increased speed and efficiency
Enhanced productivity and value creation
Smarter business operations
Independent decision-making capability
Globalization: Challenges and Opportunities
Labor Arbitrage and Outsourcing
How Outsourcing Started:
Western countries discovered cheap labor in Asian countries
Technology enabled global connectivity
Geographic location became irrelevant - workers can be anywhere
Time zone management and shift work enable 24/7 operations
Benefits for Countries like India:
Billions of dollars in foreign exchange earnings
Lakhs of employment in call centers and IT services
Major companies: TCS, Infosys, Wipro, IBM, Cognizant, CTS
GDP contribution enables imports of petroleum, drugs, chemicals, food
Value addition to country's economy
Challenges:
Network and connectivity dependencies
Technology disruptions (natural disasters, COVID-19)
Infrastructure failures (undersea cable damage)
Broadband and electricity dependencies for remote work
Case Study: Uber and Airbnb Business Models
Key Insights:
No physical assets - Uber owns no cars, Airbnb owns no hotels
Platform-based business - managing information systems only
Sophisticated software platforms requiring skilled developers
Indian potential - we have talent, skills, education, and large engineer pool
Message: Aatma Nirbhar (Self-Reliance)
India produces 1 million engineers annually
Capability to develop quality platforms for business enterprises
Opportunity to create indigenous business models
Entrepreneurial potential for country and society development
Customer and Supplier Intimacy
Customer Delight Strategy
Beyond Basic Service:
Basic expectations: Clean room, TV, AC, bathroom, bed
Delight factors: Personalized preferences (favorite fruits, flowers)
Information capture: Previous visit preferences recorded
Proactive service: Delivering preferences without asking
Environmental Consciousness:
Eco-friendly packaging (paper/jute bags vs. plastic)
Customer pride in environmental responsibility
Additional value beyond product quality and price
Supplier Relationships
Building Intimacy:
Lower costs through good relationships
Priority customer status during material shortages
Preferential treatment over competitors
Integration is key to supplier-customer relationships
Supply Chain Integration:
Three components: Supplier - You - Customer
Information sharing to identify supplier needs
Proactive help to build relationships
Mutual dependency for business success
Case Study Questions for Self-Study:
Amazon and Swiggy Success Factors:
Return policy building customer confidence
Discount and loyalty offers as incentives
No-questions-asked refund policies
Timely delivery and quality service
Data Monetization Reality:
Browsing history sold to marketing agencies
Personal preferences become commercial data
Targeted advertising based on purchase history
Revenue streams beyond core products
Mobile Pocket Office
Business Applications of Mobile Devices
Point of Sales (PoS) Systems:
Sales agents use iPads/iPhones for order taking
Real-time transmission to warehouses/factories
Elimination of human error in order processing
Automatic ERP integration and invoice generation
Customer Satisfaction Surveys:
Direct data capture ensuring authenticity
No manipulation possible - online transmission
Quality assurance through digital processes
Genuine feedback collection
Rural Banking Applications:
Payment banks in areas without ATMs
Cash delivery based on mobile requests
Grameen Bank model (Prof. Muhammad Yunus, Nobel laureate)
Financial inclusion in remote areas
Advantages of Mobile Business Applications:
Error reduction compared to manual processes
Speed and efficiency in transactions
Real-time integration with backend systems
Authentic data capture without manipulation possibilities
MIS: Comprehensive Perspective
Multi-Disciplinary Nature
Combines:
Computer Science - technical foundation
Management Science - business applications
Operations Research - analytical tools
Practical Orientation - real-world implementation
Behavioral Issues - human factors
Four Main Actors:
1. Hardware and Software Suppliers - technology providers
2. Business Firms - system users
3. Managers and Employees - system operators
4. Firm's Environment - contextual factors
Environmental Factors:
Customer satisfaction requirements
Legal compliance needs
Social responsibility expectations
Cultural context considerations
Organizational Perceptions:
Company culture influences customer loyalty
Brand reputation affects purchase decisions
Multicultural values becoming increasingly important
Corporate social responsibility as differentiator
Technology-Organization Fit
Critical Success Factor
Performance is optimized when technology and organization mutually
adjust and mesh until a satisfactory fit is obtained
CIO Challenges:
Technology selection must suit specific organizational needs
Avoiding "following the Jones's" - wrong investments
Understanding unique requirements of each organization
Decision-making on appropriate technology choices
Organizational Uniqueness:
Similar functions across companies (finance, sales, purchase, HR, manufacturing)
Different business processes and cultures
Customized technology selection required
Proper fit essential for success
Risk of Poor Fit:
Technology rejection by users
Financial losses from wrong investments
Replacement costs and implementation delays
Reputation damage for IT leadership
Key Takeaways
1. ERP integration enables cross-functional efficiency and independence
2. Globalization offers opportunities but requires infrastructure reliability
3. Indigenous innovation potential exists in India's talent pool
4. Customer delight goes beyond basic service expectations
5. Supplier intimacy creates competitive advantages
6. Mobile technology revolutionizes business processes
7. Technology-organization fit is crucial for MIS success
8. Multi-disciplinary approach essential for effective MIS implementation
Future Direction
Next Sessions Will Cover:
Detailed ERP discussion and implementation strategies
Supply Chain Management systems and integration
Customer Relationship Management (CRM) applications
Specific MIS topics beyond introductory concepts
Final Message
MIS Success Requires:
Proper technology selection aligned with organizational needs
Understanding of business processes and cultural context
Integration mindset across all business functions
Continuous adaptation to technological changes
Balance between technology and human factors
The future belongs to organizations that can effectively mesh technology with
organizational culture to create optimal information management systems.
