Physical Structure Of Management Information System

Physical Structure Of oversight knowledge schemeJump toPhysical Structure of perplexity Information SystemsManagement Information System Types values of Management Information SystemsDis returnss of Management Information Systems Management Information Systems in BankingConclusion and RecommendationsThe report on Management breeding systems reviews the situation of information systems in an government activity. It is a system through which organization takes an good closing which friend to attain the over single targets of an organization. A wariness Information System is a system which enlighten ups of people, computers and procedures for pile up and organizing of information that pull up stakes help mangers to take decision in an organization. It aims as to provide information to the height level managers so that they commode take effective decisions in an organization.Information system is a system which helps manager to make effective decisions for an organiza tion. Information system can be defined as a set of interrelated components that collect, process, store and distribute information to the vigilance of an organization for making effective decisions, to ensure coordination and control in an organization. (Laudon, 2006)Information systems consist of information related to people, pastures and things in an organization or outside the organization .i.e. the environment surrounding business. (Laudon, 2006)Functions of an Information SystemInformation systems consist of three distinguished activities which provide information to an organization to make relevant decisions, to control operations of an organization, to identify problems and to create new products and function. Three important activities in an information system are input, processing and output. (Laudon, 2006)Input collects information from within the organization or from its external business environment.Processing converts the information to an useful and meaningfu l form i.e. informationOutput helps to make acquirable the processed information to the user of information. Output also provides feedback to the organization.Management Information SystemA centering information system is a computerized system (Sarkissian, 2009) that is designed to provide useful information to an organization which will help them to make decision so as to attain their short term and long term goals.MIS is a combination of people, computers and procedures for collecting and organizing information in an organization that is useful for decision making in an organization. (Sarkissian, 2009). MIS is an integrated system for gathering relevant information, convert it in to right information and supplying the relevant information to c at oncerned executive thus it is a system to provide the right information to the right person at the right time.( solicitude-hub.com)The main objective of MIS is to provide necessary information to an organization so as to manage organiz ation effectively. It is a communication tool mingled with the top forethought and staffs that helps organization to attain their overall goals.( Sarkissian, 2010)Physical Structure of Management Information SystemsA MIS is an organized system which consists of people, hardware, and communication networks and data sources that collects, alters and distributes information in an organization. It is a tool which helps mangers in making decisions by providing regular tend of accurate information in an organization. (Sarkissian, 2009)The physical components of an MIS include hardware, software, database, personnel and procedures.HardwareHardware consists of all physical components of a computer system exchangeable key processing unit (CPU), input devices, output devices, storage and communication devices. (Sarkissian, 2009) software systemSoftware is an interface between the information system and users of information system. Software can be of two types system software and applica tions. The system software includes the operating system and special purposes programs. Application is developed to achieve a specific task. Software plays an important part in MIS. (Sarkissian, 2009)DatabaseA database is a substitutionly managed and organized collection of data. Database helps to store data in an organized manner and to make available to those who need that data. Database helps to reduce duplication of data as it is centrally managed data one data can be store at one place avoiding redundancy and duplication of data. (Sarkissian, 2009)ProceduresProcedures are essential for effective use of information system. Procedures consist of various instructions uniform user instructions, instructions for input preparation and operating instructions. These instructions help in using information system effectively. (Sarkissian, 2009)PersonnelNumber of personnel is required for implementation of MIS like computer operators, programmers, systems analysts and managers. gentle man beings are key requirements for implementation of MIS. In MIS both technical and managerial level people are required for proper implementation of MIS. (Sarkissian, 2009)Types of Management Information SystemsThere are four types of Management Information systems (Sarkissian, 2009)Transaction processing systemsTPS is a type of MIS which records a huge volume of recurring and routine data. They were introduced in the 1960 and are apply widely today. TPS record transactions relating to inventories, bare materials, customers and gross revenue. Many organizations use these systems to record day to-day transactions like fixs use these systems to record deposits and payments make into bound accounts and Manager Use TPS to record transactions related to payments made to suppliers, customer billing and so on. (sarkissian, 2010). These systems help manager to determine trends in data and help them to plan accordingly in order to achieve overall organizational objectives.Operations in formation systemsThese systems were introduced after TPS. They access data from TPS and organize data into a useable form. They were basically use to obtain data related to sales, inventory, and accounting and other performance related information. Operations information systems are used to plan and schedule production and assembly functions. (sarkissian, 2010). They help managers to take various curial decisions like how much raw materials to be ordered, when to schedule production and when to assemble the utmost products. It also help managers to take decisions about the manpower which will be require in the production and assembly processes.Decision support systemsA DSS helps managers to make important decisions. It consists of three fundamental componentsDatabase prudence system (DBMS) it stores large amount of data related to all problems the DSS has been designed to tackle.Model-based management system (MBMS) it helps to convert data from DBMS into useful information which h elp managers in decision making process.Dialog generation and management system (DGMS), it provides a user-friendly interface between the system and the managers who are not experts in computer. (sarkissian, 2010).Expert systemsThese systems uses human knowledge stored in a computer to solve problems same as human beings. These systems recognize, organise and solve a problem. They also explain their solutions and learn from their experience. (sarkissian, 2010)Advantages of MISMIS helps organization in their functioning. MIS record, process and tabulate all business transaction which helps organization to refer to the relevant data and to make repairments in the business transaction where the organization feels that they are lacking behind. (Moorty, 2009)For example the organization can compare actual and projected sales and can take necessary steps to improve their sales performance. (Moorty, 2009)MIS helps the top management of an organization in good decision making. It also hel ps the top management to evaluate whether the allocated resources have been properly utilized and whether the targets are been met by each department.It helps to facilitate a two way communication process in an organization. (Moorty, 2009). The top management communicates to employees what is expected from them and employees discuss their problems to their top management. Therefore MIS ensure an effective communication in an organization.Facilitates planning and controllingMIS provides relevant information from the top management to people working as staffs in an organization. It helps the top management to facilitate proper planning of organizational activities by providing relevant data of past and present. MIS integrates all information and ensures that each department is aware of the problems and requirements of another department and thus leads to co-ordination in an organization. (management-hub.com)Relevant InformationMIS only provides relevant data by densification the huge amount of data which helps management in quick decision making.Fast reaction to market changesMIS provides facts, data and trends which help organization to react straight accordingly to the changes happening in the market. (Pirraglia, 2010)Competitive advantagesToday Competition is rattling strong in any industries. It is important for an organization to identify their combative advantage in order to differentiate them in the market. MIS provides huge amount of data to management which help them to identify their competitive advantage and to make strategies to enhance their competitive advantages through their decisions. (Pirraglia, 2010)Disadvantages of MISMIS is a useful tool for management for making effective decisions for an organization. But there are many limitations of MIS which are as follows.MIS cannot be used independentlyMIS cannot be use independently in an organization. MIS provides only information which is useful for an organization but the interpretation and an alyzes of the information requires human being and and then MIS cannot use interpedently in an organization. (Moorty, 2009)MIS ExpenseMIS helps in effective decision making process but the implementation of MIS in an organization can be precise expensive as all the divisions and processes of an organization should be reviewed. Training of new employees for the MIS can also add up to implementation charges. Besides this the installation charges are also huge. (Vitez, n.d)Employee TrainingMIS helps in effective decision making through review of all the processes and operations of an organization and proper trained employees are important for MIS implementation. Employees are involved in all the operations and processes of an organization and providing proper training to the employees will help the organization to achieve their overall objectives. (Vitez, n.d)MIS FlexibilityMIS once installed in an organization whitethorn prove to be inflexible. And Changes in MIS program may require huge costInformation FlawsMIS helps management in effective decision making by providing information to the management. The main disadvantage of MIS could be that MIS sometimes gives improper or inadequate information to the management which makes it difficult for management in making decisions. (Vitez, n.d)Analysis and DiscussionExample Lakshmi Vilas BankLakshmi Vilas Bank is a fast growing private sector border in India. The bank provides its banking services to several customers through a network of 271 branches and 168 ATMs spread over 14 states and one union territory. (lvbank, 2010)The products of Lakshmi Vilas bank consists of business credit, home loans, rental loans, political machine loans, education loans, SME credit facilities, NRI Services and online banking. It also provides mutual funds products and life insurance products of Aviva Life Insurance Co. Ltd. and general insurance products of Bajaj Allianz General Insurance Co. Ltd. (lvbank, 2010)The LVB has been whir l various technology products through innovative delivery channels like NEFT, RTGS, SMS Alerts, SMS Pull Services, Net Banking, ATMs Mobile Payments and E-commerce. (cxotoday)Online services provided by Lakshmi Vilas bankNational electronic Fund Transfer (NEFT)NEFT is an efficient, see to it and reliable system of funds transfer between accounts of customers of different banks. (lvbank, 2010) REAL TIME GROSS SETTLEMENT SYSTEM (RTGS) RTGS enables an efficient, secure and reliable transfer of funds between accounts of customers of different banks. (lvbank, 2010)INTERNET BANKING Internet banking allows customers to do their financial transaction from secure website of bank. Lakshmi Vilas Bank started internet banking on exalted 9, 2008. This facility is available to all their customers, who wish to do online banking. (lvbank, 2010)SMS BANKING Lakshmin Vilas bank also provides SMS banking to their customers. Using the mobile customers can enquire about their account balance and the c ondition of their cheque book (lvbank, 2010) Electronic Clearing Service (ECS)Lakshmi Vilas Bank provides ECS facility to their customers. It allows fund transfer electronically and it is generally used for bulk credit and debit transactions like distribution of dividends, interest, salary pension, payment of bills. (lvbank, 2010)Problems Faced By Lakshmi Vilas BankThe Banks systems were unable to provide collective information to the manager which resulted into delay in decision making process even during emergency. (Microsoft, 2009)The accounts and planning team spend a huge amount of time in collating financial data from 250 branches which was submitted in various format. Analyzing all these data and preparing statutory reports took valuable time and resources of the bank. (Microsoft, 2009)The efficiency of the bank was affected due to lack of up to date information (Microsoft, 2009)Customers valued fast information and more reliable information.Employees Productivity was affect edManagement was facing problem in their decision making process due to unavailable of proper information.Use of Information systems in Lakshmi Vilas BankLakshmi Vilas Bank International Visa Debit Card.The Visa debit cared introduced by Lakshmi Vilas Bank has help the bank to provide its new as well as existing customers with the facilities to shop, pay their bills, book their movie or airline and rail tickets online. (lvbank, 2010)MPLS architectureIt is the first bank in Tamil Nadu to achieve 100% Multiprotocol Label Switching (MPLS) Architecture. The implementation of MPLS architecture helped LVB to reduce network operating cost as well as to provide higher availability of network for the branches. It helped bank to better performance of the application at branches through lesser congestion o the network.MPLS architecture will help bank to reduce maintenance and operational cost of 21 hubs of their bank. (cxotoday)Enterprise storage solutionLVB has acquired enterprise storage sol ution which is a centralized system and will help bank to consolidate all its business database into one single system to effectively manage their customers. This solution has helped the bank to improve their overall efficiencies. (Information week, 2010)Datacraft IT security infrastructure and datacenter upgradingDatacraft is a provider of IT solutions and services. It had given IT security infrastructure and datacenter upgrading to LVB which will help the bank to avail the benefit of security for all their branches. (ciol, 2010)D2K technologiesThe bank chose MIS solution offered by D2K technologies while helped bank for consolidating real and accurate information for internal and compliancy related reports.(Microsoft, 2009)Microsoft SQL Server 2008Microsoft SQL Server 2008 provides security and reliableness to banks business applications. As Mentioned by chief technology officer of Lakshmi Vilas Bank which says that the speed with which they were able to provide information to i nternal stakeholders, customers and government departments has improved significantly. (Microsoft, 2009)Advantage of information Technology and MIS in the Lakshmi Vilas BankMIS in LVB helps the bank in their accurate reporting and functions of the bank. It helps them to plan their business activities, performance their business review and to give-and-take information in accurate time. (expressindia, 2001)Savings and Earning Potential UpMIS has help bank to savings in many forms. The branch is not busy preparing dictation and the account department does not spend much of their time collating reports of 251 branches. On an average each person saves almost 3 hours a day guide to huge savings in people cost. The systems has also helped bank to available all the data centrally and that is why the branches doesnt have to submit their report to central office. (Microsoft, 2009)Improves Financial Management ComplianceThe time spends on consolidation of statements from 251 branches by th e account department and planning department has been reduced by 30%. As stated by assistant manager of Lakshmi Vilas Bank, Compliance and reporting to the RBI and other government agencies have become fast and accurate as per compliance requirements. (Microsoft, 2009)Dashboards Enable Management with Decision MakingThe decision support system type of MIS enables management in fast decision making process by providing tabular and graphically representation of information. This system provides banks management by setting new goals by evaluating past trends. Each employee of the bank can access relevant and more secure information from central location. Customers and all stake holders of the bank can access relevant information from the bank. (Microsoft, 2009)Conclusion and RecommendationsInformation system is a system which helps management to take effective decisions for an organization. It is a tool which collect, process, store and distribute information to the management. Informa tion systems are useful for providing information rather than raw data to the management. Data only shows number whereas information provides logical agnizeing of a figure.Information systems basically consist of data related to people, process and procedures deep down the organization as well as it provides information of external business environment affecting the business.Information system performs the functions of processing of input into output .i.e. collecting of data and processing of the data into information and thereby helping managers in their decision making process.Management information system is a computerized system of providing information to the manager so that they can take long term and short term decisions in an organization.MIS is organized system which consists of people, hardware, and communication networks that collect data and transform that data into information.There are various types of Information systems based on different levels of organization i.e . strategic level dealing with the top most management for their long term decisions. Management level which deals with various managers with their plans and operational level that deals with the day to day activities of business.There are different types of Management information systems like Transaction processing systems that records huge volume of recurring and routine data like raw materials, inventories, customers and sales. Operations information systems track data from TPS and whose aim objective is to plan and schedule production and assembly functions. Decision support systems deal with making important decisions. Experts systems is a system which helps organization in solving their problems like human beings through their past experience.MIS helps organization by providing various benefits like MIS compares the performance of an organization which helps managers to identify whether the organization is performing good or not. It helps management in their decision making pr ocess by providing useful information to them. It is a tool of communication between top level management and employees. It provides only relevant data to management by compressing huge amount of data. It helps to ensure better co-ordination in an organization. It helps company to identify their competitive advantage and help them to enhance the value of their products.Besides various benefits there are some limitations of MIS like MIS cannot be independently used in an organization. The expense of installing MIS is very huge. MIS is a technical product which requires organization to provide training to huge number of their employees. Once a MIS is installed it is very costly to change that MIS system. Sometimes it may happen that MIS provides inadequate data which may not prove helpful for an organization.We have also taken example of Lakshmi Vilas bank in order to understand the impact of information systems on the working of the bank. It helped this bank to increase the speed and accuracy of information flow in the organization as well as outside the organizationToday MIS is a useful tool of making effective decisions in an organization so it is very important that it should have no limitations. The cost of implementing MIS in an organization is very huge and is not flexible enough so it is important to make available MIS which doesnt cost much for an organization and which can accept changes.As stated earlier in our example of Lakshmi Vilas bank, the bank is using Information systems effectively and earning profits from it but there are many things bank should focus onWith the increase in technology Bank should update their IS so that they can provide their customer with better services and increase its productivity.The IS used in a bank should be more secure.Thus Management Information system helps management in their effective decision making process and help them to run their organization profitably.