Category: Management Information System

A Management Information System (MIS) is a computer-based system that provides managers with the tools and information. They need to make informed decisions for planning, organizing, and controlling business operations. MIS collects, processes, stores, and disseminates data from various sources within an organization, converting it into meaningful and actionable information.

Key components and features of a Management Information System include:

  1. Data Collection: MIS gathers data from various sources. Such as transaction processing systems, databases, sensors, and external sources, such as market research data.
  2. Data Processing: The collected data stand processed and transformed into useful information through various operations. Such as sorting, filtering, aggregating, and summarizing.
  3. Database Management: MIS typically uses databases to store and organize the data for easy retrieval and analysis.
  4. Data Analysis and Reporting: MIS provides tools for data analysis and generates reports, charts, graphs, and dashboards to present the information to managers in a clear and understandable format.
  5. Decision Support: MIS assists managers in making decisions by providing relevant, timely, and accurate information that supports their judgment and problem-solving processes.
  6. Integration of Departments: MIS integrates data and processes from different departments within an organization, facilitating communication and collaboration between departments.
  7. Security and Data Integrity: MIS implements security measures to protect sensitive data and ensures. The integrity of the information stored and transmitted within the system.
  8. Real-Time Information: Some MIS systems offer real-time or near-real-time information. Enabling managers to monitor operations and respond to changes promptly.
  9. Forecasting and Planning: MIS can include forecasting and planning modules that use historical data to predict future trends and support strategic planning.
  10. Customization: MIS can be tailored to the specific needs and requirements of an organization. Providing flexibility in terms of the data collected and the reports generated.

MIS plays a crucial role in enhancing the efficiency and effectiveness of business operations by providing managers with timely, relevant, and accurate information. It helps identify areas of concern, spot trends, and make data-driven decisions to improve performance, streamline processes, and gain a competitive advantage. MIS stands commonly used in various industries, including manufacturing, finance, healthcare, retail, and service sectors. To facilitate data-driven decision-making at all levels of management.

  • Enterprise Architecture framework (EA framework) and their Components

    Enterprise Architecture framework (EA framework) and their Components

    An Enterprise Architecture framework (EA framework) provides a collection of best practices, standards, tools, processes, and templates to assist in the creation of the Enterprise Architecture and architectures of various scopes. The Oracle Enterprise Architecture framework (OEA framework) and their Components for better understand. The previous business framework of Enterprise Architecture Components is very helpful for making a new company framework architecture. Also, EA is the process of translating business goals and strategy into practical enterprise change by building, communicating, and optimizing the key requirements, rules, and models that describe the desired state of the enterprise and facilitate its change and evolution.

    Enterprise Architecture framework (EA framework) and with their Components deeply understand.

    There are many Enterprise Architecture frameworks, each with different strengths and weaknesses. Some focus on modeling existing architecture, others focus on finding solutions to business problems. Also, Enterprise Architecture frameworks provide a common terminology and generic concepts that make it easy for stakeholders to communicate without taken into consideration various languages.

    India Enterprise Architecture Framework (PDF) by Dr. Pallab Saha (Chief Architect, The Open Group). As well as, They have been adopted by many organizations government agencies for operational use. Two often-cited architectural frameworks that are commonly considered a founding framework are The Open Group Architectural Framework (TOGAF), and The Zachman Framework.

    Types of Enterprise Architecture framework:

    We codify the basics of enterprise architecture in these four major framework systems. Each of them has strengths and weaknesses. Each of these systems has been in use for over a decade at the least. They each have a long and storied history. As well, each of them takes decades and decades of information structure and put it to use. They are Four Types;

    The Zachman Framework:

    This Framework uses the method of taxonomy to organize a massive variety of documents and materials into categories that suit them. Also, The Zachman Framework goes beyond IT. It offers structural connections into any aspect of an enterprise. The basis of the Framework focuses on six descriptive foci and six-player perspectives. As well as, The foci are data, function, network, people, time, and motivation. The perspectives are planner, owner, designer, builder, subcontractor, and enterprise.

    It is a framework that shows the interconnected relationship within an enterprise. It was published in 1987 by John Zachman. Also, The framework is based on architecture and engineering principles. The framework represents two dimensions, the first dimension concerns the different perspectives of people involved in the architecture process which are: Planner, Owner, Designer, Builder, Subcontractor, and User.

    The second dimension deals with the basic questions: what, how, where, who, when, and why. Also, Zachman’s framework presents a comprehensive view of the actual processes of an enterprise which guides decision making, IT resources, and architecture principles. However, it does not provide an avenue for practical application of the framework as much guidance for planning, implementation, and maintenance of the architecture.

    The interconnective web that these twelve total points create gives you a structure that communicates how best your company can operate. When you understand why each point can connect and relate to each other, you discover a powerful facet of your business. This can help guide proper decisions on your business. Keep in mind that these details are broad, and refining them can only give a more concentrated web of information.

    The Open Group Architectural Framework (TOGAF):

    The Open Group Architectural Framework or TOGAF is one of the most common framework structures in business today. Also, TOGAF accounts for over 80 percent of the entire business framework structure. It contains all the needed pieces for a powerful framework. It has a common vocabulary to use, recommended standards and compliance methods, suggested software and tools, and even a method to define best practices.

    TOGAF was developed based on the Department of Defence’s Technical Architecture Framework for Information Management in 1995. Also, The framework provides rules for governance, designing, developing, and implementing an EA. Its main components are the architecture capability framework, Architecture Development Method (ADM), Architecture Content Framework, and Enterprise Continuum. As well as, The important part of TOGAF is the ADM which specifies the process of developing the architecture. However, it does not provide a set of architectural principles.

    Created and owned by The Open Group, TOGAF is as much an engine as a framework. It holds the steps and keys to creating independent architecture. This method of creation is the Architectural Development Method or ADM. Also, TOGAF is often viewed as more an overarching process. The details and methods contained within TOGAF help guide businesses through any step of business organization.

    Federal Enterprise Architectural Framework:

    Also, The Federal Enterprise Architectural or FEA is one of the newest attempts to create a solid structure for organizations. The US Federal Government developed it in 2006. It helps organize the myriad of different agencies and organizations under its control. Its predecessor, the FEAF (Federal Enterprise Architectural Framework), started in 1996.

    The FEA combines the best of both the Zachman Framework and TOGAF. Also, The FEA has five reference models. They cover business, service, components, technical, and data. These five points combine with a segment model to create a perspective on how best to install enterprise architecture.

    The segment model at its core allows a distinction of any number of organizations and connections. Also, FEA was the foundation for a massive restructuring of a high-end government. As such, the framework is a strong core to follow when building a strong foundation for a future company.

    Gartner Methodology framework:

    The last type, Gartner, differs from the previous three. It does not conform to the structures of frameworks, taxonomy, or models. As well as, Created by the company of the same name, Gartner is a practice that focuses on a constant state of adapting to the environment around you.

    Gartner is one of the leading IT research businesses in the entire world. They contain some of the best minds on the subject of IT. As such, they have a long-running history of smooth communication among all of its experts. Also, Gartner’s focus and strength come from its ability to focus a thousand different moving parts into a singular goal and vision.

    Gartner implements the idea of combining business owners, information specialists, and technology implementors into a single unified entity. Instead of creating webs of framework or a singular process, Gartner relies on a constant recorrection that allows the three core entities to tackle any oncoming problem.

    Components of enterprise architecture framework (EA framework):

    In addition to the three major framework components discussed above.

    1. Description advice: some kind of Architecture Artifacts Map or Viewpoint Library
    2. Process advice: some kind of Architecture Development Method, with supporting guidance.
    3. Organization advice: including an EA Governance Model

    An ideal EA framework should feature:

    • Business value measurement metrics.
    • EA initiative model.
    • EA maturity model, and.
    • Enterprise communication model.

    Most modern EA frameworks (e.g. TOGAF, ASSIMPLER, EAF) include most of the above. Zachman has always focused on architecture description advice.

    Enterprise Architecture frameworks typically include:

    • Common vocabulary, models, and taxonomy.
    • Processes, principles, strategies, and tools.
    • Reference architectures and models.
    • Prescriptive guidance (EA processes, architecture content, implementation roadmap, governance).
    • Catalog of architecture deliverables and artifacts.
    • Enterprise Architecture Content Metamodel, and.
    • Recommended a set of products and configurations (optional).

    Utilizing an Enterprise Architecture framework streamlines the process for creating and maintaining architectures at all levels (e.g. enterprise architectures, functional business segment architectures, cross-cutting technology domain architectures, and solution architectures) and enables an organization to leverage the value of architecture best practices.

    Several EA frameworks exist in the industry intending to address the basic challenge of assessing, aligning, and organizing business objectives with technical requirements and strategies. Examples include the Zachman Enterprise Framework, The Open Group Architecture Framework (TOGAF), OMB Federal Enterprise Architecture (FEA), and The Gartner Methodology (formerly the Meta Framework).

    Each framework possesses different strengths and weaknesses, which makes it difficult to find anyone existing framework that is ideal for all situations.

    Enterprise Architecture framework (EA framework) and their Components
    Enterprise Architecture framework (EA framework) and their Components; Photo #Pixabay.

    Components of Enterprise Architecture (EA):

    Enterprise Architecture is all about the elements that make up an enterprise and how these elements inter-relate. Also, Enterprise Architecture frameworks contain a list of recommended standards and compliant products for designing information systems in terms of a set of building blocks and how these building blocks relate together. It supports the integration of the business, system, and technology architectures while aligning business and IT strategy.

    The four architectural disciplines based on a hierarchical, multi-level systems theory approach that is commonly accepted as subsets of the overall enterprise architecture:

    1. Business Architecture: it represents the fundamental structure of an organization from the business strategy viewpoint such as goal systems, governance, key business process, and organization.
    2. Application Architecture: it represents the fundamental structure of an enterprise that provides a blueprint of the individual application system to be deployed, their interaction with the core business process.
    3. Data (Information) Architecture: it represents the fundamental structure of the logical and physical data assets of the organization and its data management resources.
    4. Technology Architecture: it represents the fundamental structure of an enterprise that describes the hardware platforms and software infrastructure that support the applications.

    Often used to denote the compound set of applications, information, and technology architectures are IT architecture. Also, IT architecture is defined as the organizing logic for data, applications, and infrastructure, captured in a set of policies, relationships, and technical choices to achieve desired business and technical standardization and integration. Thus, representing the business and IT structure of an enterprise is EA.

  • Enterprise Architecture (EA): Definition, Importance, and Benefits

    Enterprise Architecture (EA): Definition, Importance, and Benefits

    Enterprise Architecture is designed to ensure alignment between the business and IT strategies, operating model, guiding principles, and software development projects and service delivery. This article explains about Enterprise Architecture (EA) by their topic into Definition, Importance, and Benefits. EV is one of the fields that is more relevant than ever but is yet fighting for proving value and viability.

    EA (Enterprise Architecture) explains in their topics; Definition, Importance, and Benefits.

    An Enterprise Architecture (EA) translates business vision and strategy into effective enterprise change by; creating, communicating, and improving the essential requirements, principles, drivers, and models. That describe the enterprise’s future state and enable its evolution. From narrow IT-oriented approaches (Enterprise IT Architecture or EITA) to more broad views; the scope, meaning, and importance of Enterprise Architecture vary.

    The EA establishes the organization-wide roadmap to achieve the mission through optimal performance of its core business functions within an efficient information technology (IT) environment. Enterprise architectures are blueprints; they define the organization’s current (baseline) and desired (target) settings, and specify. The mechanisms to transform the enterprise to achieve target outcomes systematically.

    Meaning and Definition of Enterprise Architecture (EA):

    Below are some of the enterprise architecture definition by some top thinkers and firms.

    According to Wikipedia;

    “A well-defined practice for conducting enterprise analysis, design, planning, and implementation, using a comprehensive approach at all times, for the successful development and execution of strategy. Enterprise architecture applies architecture principles and practices to guide organizations through the business, information, process, and technology changes necessary to execute their strategies. These practices utilize the various aspects of an enterprise to identify, motivate, and achieve these changes.”

    Defined from an Information & Technology Perspective;

    “Enterprise Architecture is explicitly describing an organization through a set of independent, non-redundant artifacts, explaining how these deliverables interrelate with each other and developing a set of prioritized, aligned initiatives and roadmaps to understand the organization, communicate this understanding to stakeholders, and move the team forward to its desired state.”

    Defined from a Business Perspective;

    “Enterprise Architecture illuminates how an organization and all of its members can achieve its objectives, through the creation of a series of engineered models and project initiatives, which can be easily understood by all of the people associated with the organization.”

    Enterprise Architecture is an individual or each definition;

    An in-depth understanding of Enterprise Architecture is obtained if one considers its constituent words: “Enterprise” and “Architecture”. These are two words which while appearing simple enough to understand, require a thorough understanding of the context of Enterprise Architecture.

    An enterprise defines by Federal Chief Information Officer (CIO) Council as, “an organization or cross-organizational entity supporting a defined business scope and mission”. It consists of people, information, technologies that perform business functions, in a defined; organizational structure that is distributed in multiple locations that respond to internal and external events and provide specific services to its customers.

    In producing an output in the form of products and services, an enterprise as a whole moves through various activities in a cyclic form. This refers to the enterprise life cycle. It is dynamic and iterative due to changes over time owing to the new business processes, technology advancement, capabilities, maintenance, disposition, and re-use of existing elements of the enterprise.

    The definition of “architecture”, and more specifically about enterprises or systems, is a lot more complicated. This makes all the more so, given that there exists no single agreed definition. Taking into account the general view of the composition of architecture itself. We are led to adopt the definition of Architecture according to ANSI/IEEE standard 1471-2000. This defines “architecture” as “the fundamental organization of a system embodied in its components. Their relationships with each other and the environment and the principles guiding its design and evolution”.

    Importance of Enterprise Architecture (EA) in Organization:

    The definitions of EA emphasize EA as a framework and EA as a process for transforming an enterprise. The increasing pace of information technology has influenced the increased need for Enterprise Architecture. Adopting EA is the key to the survival of an enterprise due to the high rates of change and complexity in the world economy.

    An enterprise that aspires to achieve its vision must be able to identify. Its current or as-it state and have a concrete plan on how to get to its target or to-be state. Without an appropriate communication method and tools, it can be challenging to communicate the vision of the enterprise.

    However, EA depicts an enterprise’s current state and aspired future state with visual models making communication much easier and faster. Enterprise Architecture plays an important role in an organization. It is critical to the survival and success of the organization while enabling the organization to achieve the right balance between IT efficiency and business innovation.

    Typically, EA helps to facilitate business success such as competitive advantage through the effective use of information management strategies and IT resources. Enterprise Architecture can use by a company to organize and structure. Its enterprise infrastructure providing stakeholders and system architects with appropriate architectural details.

    Enterprise Architecture may, however, develop for a wide variety of reasons. EA develops for:

    Alignment:

    To ensure that the implemented enterprise aligns with management’s intent.

    Integration:

    The connectivity and interoperability of business rules, processes, information flow, and interfaces are consistent across the organization.

    Convergence:

    Pushing towards a standardized IT portfolio based on the Technical Reference Model (TRM). Thus, creating a common organizational language.

    Change:

    Facilitating and managing improvement in all aspects of the enterprise.

    Another important reason to consider EA adoption is the need for an organization to stay committed to its long-term goals. The agility of an enterprise is dependent on a long-term implementation strategy using EA while short-term implementation creates a temporary illusion of an agile enterprise.

    Therefore, EA is a mechanism to help her adopters remain focused on the achievement of long-term visions while providing a framework for managing everyday operational risks. To respond to the constant changes in business needs, a stable platform is needed to support enterprise operations.

    The traditional approach to building an information system, by purchasing applications specifically for a department or a unit area; increases complexity, introduces redundancy, and hinders the enterprise from growing. This knows as business silos. It is whereby individually the application functions effectively but when combine gives no foundation for execution of enterprise processes.

    However, the introduction of EA into an enterprise process is a holistic approach taken to address the organization-wide application needs. With, a clear understanding of how each component relates to others both at the data, software, and hardware levels of abstraction resulting in integrated silos architecture.

    Enterprise Architecture (EA) Definition Importance and Benefits
    Enterprise Architecture (EA): Definition, Importance, and Benefits – #Pixabay.

    Benefits of Enterprise Architecture:

    During the past few years, IT has not only affected how organizations do business. Such as automating its processes but has extended to how customers, stakeholders, and regulatory bodies interact with the organization.

    However, Enterprise Architecture faces the re-engineering of the whole organization from all perspectives such as; users, systems, geographical location, and mode of dispersion to improve the working processes in the organization. Using EA properly, an enterprise can get significant business and IT benefits:

    • It provides a clear model of the organization’s business, application, data and technology architecture, dependencies, and inter-relatedness. This will help the organization to make business decisions based on a holistic view instead of as a stand-alone part.
    • Enterprises can increase their business values by aligning IT with their business strategy; it helps the organization to unlock the power of information, unifying information silos that inhibit business processes.
    • EA ensures organizations invest in projects that are targeted towards their goals, objectives, and visions. It identifies opportunities for reuse and integration which prevents inconsistent processes and information.
    • It provides an organization with a planning process to better understand its business strategy; which helps the organization to respond faster to competitive pressures and deploy a higher quality faster.
    • EA identifies duplicate and overlapping processes, services, data hardware, and software, traces high-cost areas of IT assets to develop a fairer cost model, and ensures compliance with legal and regulatory laws.
    Deeply explain;

    The goal of Enterprise Architecture is to add business value to the organization and not only uses for the documentation of the processes, systems, and information that exist in the organization. The alignment of business and information technology strategy is a key issue in an organization based on the impact IT has on the overall organization.

    In such an organization EA provides the fundamental technology and process infrastructure. IT develops the application, technology, and data foundation necessary for the delivery of the needed integration and standardization while business defines the strategies. That uses the capabilities that are in place.

    Thus, the integration of business strategy with IT objectives is not only an IT issue but an organizational concern. Enterprise Architecture has been widely adopted by many private and government organizations to cope with ever-increasing complexity. It has been promoting as a key tool for the transformation and modernization of government institutions around the world.

    This ensures the proper use and optimization of the organization’s technical resources in other to reduce costs while increasing their strategic agility. EA is not just a technology map but a strategy for the entire enterprise. Organizations such as UPS, Toyota Motor Marketing Europe, Dow Chemical Company have adopted EA to strategic areas such as; budget allocation, information sharing, performance measurement, and component-based architecture.

    Also, EA uses as a management tool for aligning IT and business objectives concerning the current and future vision of an enterprise. As a tool, it helps stakeholders and business owners manage dynamic changes and challenges in a timely and cost-effective way.

  • Advantages and disadvantages of Expert Systems

    An expert system is a computer program that designs to emulate and mimic human intelligence, skills, or behavior. An expert system an advanced computer application that implements to provide solutions to complex problems or to clarify uncertainties through the use of non-algorithmic programs where normally human expertise will need. Advantages and disadvantages of Expert Systems; They design to solve complex problems by reasoning through bodies of knowledge, represented mainly as if-then rules rather than through conventional procedural code. Expert systems are most common in the complex problem domain and consider as widely use alternatives in searching for solutions that require the existence of specific human expertise.

    Here explain the advantages and disadvantages of expert systems.

    Expert systems are most common in the complex problem domain and consider as widely use alternatives in searching for solutions that require the existence of specific human expertise. The expert system is also able to justify its provided solutions based on the knowledge and data from past users. Normally expert systems use in making business marketing strategic decisions, analyzing the performance of real-time systems, configuring computers, and perform many other functions that normally would require the existence of human expertise.

    The difference between an expert system with a normal problem-solving system is that the latter is a system where both programs and data structures encode; while for an expert system only the data structures hard-coded and no problem-specific information encodes in the program structure. Instead, the knowledge of human expertise capture and codify in a process known as knowledge engineering.

    Hence, whenever a particular problem requires the assistance of certain human expertise to provide a solution; the human expertise which has been codified will use and process to provide a rational and logical solution. This knowledge-based expert system enables the system to frequently add new knowledge; and, adapt accordingly to meet new requirements from the ever-changing and unpredictable environment.

    Advantages of Using Expert System:

    An expert system has been reliably used in the business world to gain tactical advantages and forecast the market’s condition. In this globalization era where every decision made in the business world is critical for success; the assistance provided from an expert system is undoubtedly essential and highly reliable for an organization to succeed.

    Examples given below will be the advantages for the implementation of an expert system in business:

    1] Providing consistent solutions:

    It can provide consistent answers for repetitive decisions, processes, and tasks. As long as the rule base in the system remains the same, regardless of how many times similar problems are being tested, the conclusions drawn will remain the same.

    2] Provides reasonable explanations:

    It can clarify the reasons why the conclusion was drawn and be why it considers as the most logical choice among other alternatives. If there are any doubts in concluding a certain problem; it will prompt some questions for users to answer to process the logical conclusion.

    3] Overcome human limitations:

    It does not have human limitations and can work around the clock continuously. Users will be able to frequently use it in seeking solutions. The knowledge of experts is an invaluable asset for the company. It can store the knowledge and use it as long as the organization needs it.

    4] Easy to adapt to new conditions:

    Unlike humans who often have trouble adapting to new environments, an expert system has high adaptability and can meet new requirements in a short period. It also can capture new knowledge from an expert and use it as inference rules to solve new problems.

    Disadvantages of Using Expert System:

    Although the expert system does provide many significant advantages, it does have its drawbacks as well.

    Examples given below will be the disadvantages for the implementation of an expert system in business:

    1] Lacks common sense:

    It lacks common sense needed in some decision making since all the decisions made base on the inference rules set in the system. It also cannot make creative and innovative responses as human experts would in unusual circumstances.

    2] High implementation and maintenance cost:

    The implementation of an expert system in business will be a financial burden for smaller organizations since it has high development costs as well as the subsequent recurring costs to upgrade the system to adapt to the new environment.

    3] Difficulty in creating inference rules:

    Domain experts will not be able to always explain their logic and reasoning needed for the knowledge engineering process. Hence, the task of codifying out knowledge is highly complex and may require high

    4] May provide wrong solutions:

    It is not error-free. There may error occur in the processing due to some logical mistakes made in the knowledge base, which will then provide the wrong solutions.

    Advantages and disadvantages of Expert Systems Image
    Advantages and disadvantages of Expert Systems, Image from Pixabay.

    Classified as Expert System:

    A good expert system expects to grow as it learns from user feedback. Feedback incorporates into the knowledge base as appropriate to make the expert system smarter. The dynamism of the application environment for expert systems base on the individual dynamism of the components.

    This can classify as follows:

    Most dynamic:

    Working memory. The contents of the working memory, sometimes called the data structure, changes with each problem situation. Consequently, it is the most dynamic-component of an expert system, assuming, of course, that it keeps current.

    Knowledgebase:

    The knowledge base need not change unless a new piece of information arises that indicates a change in the problem-solving procedure. Changes in the knowledge base should carefully evaluate before being implemented. In effect, changes should not be based on just one consultation experience. For example, a rule that is found to be irrelevant less than one problem situation may turn out to be crucial in solving other problems.

    Least dynamic:

    Inference engine. Because of the strict control and coding structure of an inference engine, changes make only if necessary to correct a bug or enhance the inferential process. Commercial inference engines, in particular, change only at the discretion of the developer. Since frequent updates can be disruptive and costly to clients, most commercial software developers try to minimize the frequency of updates.

  • What is the Concept of Corporate Planning?

    Learn and Explain, What is the Concept of Corporate Planning?

    A plan is a predetermined course of action to be taken in the future. It is a document containing the details of how the action will be executed and it is made on a timescale. The goals and the objective that a plan is supposed to achieve are the prerequisites of a plan. The setting of the goals and the objective is the primary task of the Management without which planning cannot begin. Also learned, Management As a Control System! What is the Concept of Corporate Planning?

    Planning means taking a deep look into the future and assessing the likely events in the total business environment and taking a suitable action to meet any eventuality. It further means generating the courses of action to meet the most likely eventuality. Planning is a dynamic process. As the future becomes the present reality, the course of action decided earlier may require a change. Planning, therefore, calls for a continuous assessment of the predetermined course of action versus the current requirements of the environment. The essence of planning is to see the opportunities and the threats in the future and predetermine the course of action to convert the opportunity into a business gain and to meet the threat to avoid any business loss.

    Planning involves a chain of decisions, one dependent on the other since it deals with a long-term period. A successful implementation of a plan means the execution of these decisions in a right manner one after another.

    Planning, in terms of future, can be long-range or short-range. Long-range planning is for a period of five years or more, while short-range planning is for one year at the most. The long-range planning is more concerned about the business as a whole and deals with the subject like the growth and the rate of growth, the direction of the business, establishing some position in the business world by way of a corporate image, a business share and so on. On the other hand, short-range planning is more concerned with the attainment of the business results of the year. It could also be in terms of action by certain business tasks, such as the launching of a new product, starting a manufacturing facility, completing the project, achieving intermediate milestones on the way to the attainment of goals. The goals relate to long-term planning and the objective related to the short-term planning. There is a hierarchy of objectives which together take the company to the attainment of goals. The plans, therefore, relate to the objectives when they are short-range and to goals when they are the long-range.

    Long-range planning deals with resource selection, its acquisition, and allocation. It deals with the technology and not with the methods or the procedures. It talks about the strategy of achieving the goals. The right strategy improves the chance of success tremendously. At the same time, a wrong strategy means a failure in achieving the goals.

    Corporate business planning deals with the corporate business goals and objectives. The business may be a manufacturing or a service; it may deal with the industry or trade; may operate in a public or a private sector; may be a national or an international business. Corporate business planning is a necessity in all cases. Though the corporate business planning deals with a company, its universe is beyond the company. The corporate business plan considers the world trends in the business, the industry, the technology, the international markets, the national priorities, the competitors, the business plans, the corporate strengths and the weaknesses for preparing a corporate plan. Planning, therefore, is a complex exercise of steering the company through the complexities, the difficulties, the inhibitions and the uncertainties towards the attainment of goals and objective.

    #Dimensions of Planning:

    The corporate business plan has five dimensions. These are time, entity, organization, elements and characteristics.

    #Time:

    The plan may either be long-range or short-range, but the execution of the plan is, year after year. The plan is made on a rolling basis where every year it is extended by one year, keeping the plan period for the next five years. The rolling plan provides an opportunity to correct or revise the plan in the light of any new information the planner may receive.

    #Entity:

    The planning entity is the thing on which the plan is focused. The entity could be the production in terms of quantity or it could be a new product. It could be about the finance, the marketing, the capacity, the manpower or the research and development. The goals and the objectives would be stated in terms of these entities. A corporate plan may have several entities.

    #Organization:

    The corporate plan would deal with the company as a whole, but it has to be broken down for its subsidiaries, if any, such as the functional groups, the divisions, the product groups and the projects. The breaking of the corporate business plan into smaller organizational units helps to fix the responsibility for execution. The corporate plan, therefore, would be a master plan and it would comprise several subsidiary plans.

    #Elements:

    The plan is made out of several elements. The plan begins with the mission and goal which the organization would like to achieve. It may provide a vision statement for all to understand as also the purpose, focus, and direction the organization would like to move towards. It would at the outset, place certain policy statements emerging out of management s business philosophy, culture and style of functioning followed by policy statements. Next, it would declare the strategies in various business functions, which would enable the organization to achieve the business objectives and targets. It would spell out a program of execution of plan and achievements. It provides support for rules, procedures, and methods of plan implementation, wherever necessary. One important element of the plan is a budget stipulated for achieving certain goals and business targets. The budgets are provided for sales, production, stocks, resources, expenses which are monitored for the time in execution period. The budgets and performance provide meaningful measure about success and failure of the plan designed to achieve certain goals.

    #Characteristics:

    There are no definite characteristics of a corporate plan. The choice of characteristics is a matter of convenience helping to communicate to everybody concerned in the organization and for an easy understanding in execution. The features of a plan could be several and could have several parts. The plan is a confidential written document subject to the charge and known to a limited few in the organization. It is described in the quantitative and qualitative terms. The long-term plan is normally flexible while the short-term one is generally not. The plan is based on the rational assumptions about the future and gives weight age to the past achievements and corporate strength and weal messes. The typical characteristics of a corporate plan are the goals, the resources, the important milestones, the investment details and a variety of schedules.

    #Concepts of Corporate Planning:

    Corporate planning is the process of creating a path to profitability for the enterprise, including determining how and where to market the company’s products and services. When preparing a business plan the small business owner also forecasts financial results for the upcoming year — revenues, expenses and the resulting profit. Planning has its own terminology, concepts, and techniques that must be understood in order for the business owner to be able to create a realistic plan that can be implemented successfully.

    • Mission Statement: In defining his mission statement, the small business owner states the value he wants to provide his customers, employees or society as a whole. He articulates why he decided to go into business — what he wants to accomplish through building the company.
    • Business Model: The concept of a business model has two components: how the company is going to generate sales and why the company will be profitable. The business may have several revenue streams, such as selling products, offering service contracts for the products and selling subscriptions to premium content on the company’s website. The company also has factors related to its operations that will cause it to be able to earn a profit. Lower production costs, relative to other companies in its industry, is a positive factor for the company.
    • Goals: Goals, or objectives as they are also called, describe the end result the business owner seeks to achieve. During the planning process, the business owner and his management team set numerous goals — major goals, such as revenues and profit margin percentage, as well as goals for each department and sometimes each individual — to ensure that all members of the organization put forth their best efforts and work as a cohesive team.
    • Strategies and Tactics: Strategies describe how the company’s resources will be directed to accomplish the goals. A strategy could be, for example, to sell the company’s products through independent sales reps and in-house salespeople. Tactics are specific steps taken to implement each of the strategies, showing who is responsible for implementing them and when each step needs to be completed.
    • Competitive Advantage: Companies succeed over the long term because they create and maintain competitive advantages — aspects of their products or service levels that deliver greater value to customers than those of competitors. The customers perceive this greater value and continue to do business with the company becoming loyal, repeat customers.
    • Financial Forecast: The forecast is created using spreadsheet software. The business owner builds revenue models that calculate the expected sales — units and dollars. He then estimates what the expenses for the company will be — what will it cost to create products or services, market them and fund the company’s operations including facilities costs and staff salaries.
    • Risk Factors: All businesses, including small ones, face risks — environmental factors that may cause the company to not perform as well financially as anticipated. It is important for the small business owner to recognize these risks and plan ways to change his business strategy if necessary in response to the risks. These planned responses are called contingency plans.
    • Exit Strategy: A business owner may have a long-term goal of selling the company someday. How he intends to divest the business is termed his exit strategy. Although larger companies’ shareholders sometimes exit through selling their shares to the public through an initial public offering — IPO — a small business owner commonly exits the business through selling it to another individual who wants to operate it, or to a larger company.

  • Explain Management As a Control System!

    Learn and Study, Explain Management As a Control System!

    Planning, organizing, staffing, coordinating, directing and controlling are various! Steps in a management process. All the steps prior to a control are necessary but are not necessarily self-assuring the results unless it is followed by a strong control mechanism. The management experts have viewed these steps as Management Control System. They postulate the hypothesis that unless a control is exercised on the process, the goals will not be achieved. They advocate a system of effective control to ensure the achievement of the business objectives. Also learn, Management as, What? As an Art…As a Process! Explain Management As a Control System!

    A definition of control is the process through which managers assure that actual activities conform to the planned activities, leading to the achievement of the stated common goals. The control process measures a progress towards those goals and enables the manager to detect the deviations from the original plan in time to take corrective actions before it is too late. Robert J Mockler defines and points out the essential elements of the control process.

    The management is a systematic effort to set the performance standards in line with the performance objectives, to design the information feedback systems, to compare the actual performance with these predetermined standards, to identify the deviations from the standards, to measure its significance and to take corrective actions in case of significant deviations. This systematic effort is undertaken through the management control system.

    The control system is essential to meet the environmental changes discussed earlier, to meet the complexity of today s business, to correct the mistakes made by the people, and to effectively monitor the delegation process. A reliable and effective control system has the following features.

    Early Warning Mechanism:

    This is a mechanism for predicting the possibility of achieving the goals and the standards before it is too late and allowing the manager to take corrective actions.

    Performance Standard:

    The performance standard must be measurable and acceptable to all the organization. The system should have meaningful standards relating to the work areas, responsibility, and managerial functions and so on. For example, the management would have standards relating to the business performance, such as production, sales, inventory, quality, etc.  The operational management would have standards relating to the shift production, rejections, downtime, utilization of resources, sale in a typical market segment and so. On. The chain of standards, when achieved, will ensure an achievement of the goals of the organization.

    Strategic Controls: 

    In every business there are strategic areas of control knows the critical success factors. The system should recognize them and have controls instituted on them.

    Feedback: 

    The control system would be effective; it continuously monitors the performance and sends the information to the control center for action. It should not only highlight the progress but also the deviations.

    Accurate and Timely: 

    The feedback should be accurate in terms of results and should be communicated in time for corrective action.

    Realistic: 

    The system should be realistic so that the cost of control is far less than the benefits. The standers are realistic and are believed as achievable. Sufficient incentive and rewards are to be provided to motivate the people.

    The Information Flow:

    The system should have the information flow aligned with the organization structure and the decision makers should ensure that the right people get the right information for action and decision making.

    Exception Principle:

    The system should selectively approve some significant deviations from the performance standards on the principle of management by exception.

    A standard is control system has a set of objectives, standards to measure, a feedback mechanism and an action center as elements of the system. They need to be properly evolved and instituted in the organization with due recognition to the internal and the external environment. The system as a whole should be flexible to change with ease so that the impact of changed environment is handled effectively.

  • Characteristics of MIS Management Information Systems

    Characteristics of MIS Management Information Systems

    Characteristics of MIS (Management information systems). It is a set of systems that helps management at different levels to take better decisions by providing the necessary information to managers, for long-term planning. The management information system is not a monolithic entity but a collection of systems that provide the user with a monolithic feel as far as relevant information delivery, transmission and storage are concerned. Also learned, the Role of The MIS, and its Characteristics!

    Learn, Explain the Characteristics of Management Information Systems (MIS)! 

    The different subsystems working in the background have different objectives but work in concert with each other to satisfy the overall requirement of managers for good quality information. Management information systems can install by either procuring off the self-systems or by commissioning a completely customized solution.

    A management information system has the following characteristics:

    System approach:

    The information system follows a System approach. The system’s approach implies a holistic approach to the study of the system and its performance to achieve the objective for which it has stood formed.

    Management-oriented:

    For designing MIS top-down approach should follow. The top-down approach suggests that system development starts from the determination of the management needs and overall business objectives. Management-oriented characteristic of MIS also implies that the management actively directs the system development efforts.

    Need-based:

    MIS design and development should be as per the information needs of managers at different levels that are strategic planning level, management control level, and operational control level.

    Exception-based:

    MIS should develop with the exception-based reporting principle. This means an abnormal situation, that is the maximum, minimum or expected values vary beyond the limits. In such cases, there should be exceptions reporting to the decision-maker at the required level.

    Future-oriented:

    Besides exception-based reporting, MIS should also look at the future. In other words, MIS should not merely provide past or historical information. Rather it should provide information based on projections based on which actions may initiate.

    Integrated:

    Integration is significant because of its ability to produce more meaningful information. For example, to develop an effective production scheduling system, it is necessary to balance such factors as set-up costs, workforce, overtime rates, production capacity, inventory level, capital requirements, and customer services. Integration means taking a comprehensive view of the subsystems that operate within the company.

    Common data flows:

    Because of the integration concept of MIS, there is an opportunity to avoid duplication and redundancy in data gathering, storage, and dissemination. System designers are aware that a few key source documents account for much of the information flow. For example, customer’s orders are the basis for billing the customer for the goods ordered, setting up accounts receivables, initiating production activity, sales analysis, sales forecasting, etc.

    The Following Characteristics of Good Management Information Systems Explained!

    For information to be useful to the decision maker, it must have certain characteristics and meet certain criteria.

    Some of the characteristics of good information discuss as follows:

    Understandable:

    Since information is already in a summarized form, it must understand by the receiver so that he will interpret it correctly. He must be able to decode any abbreviations, shorthand notations, or any other acronyms contained in the information.

    Relevant:

    Information is good only if it is relevant. This means that it should be pertinent and meaningful to the decision maker and should be in his area of responsibility.

    Complete:

    It should contain all the facts that are necessary for the decision maker to satisfactorily solve the problem at hand using such information. Nothing important should stand left out. Although information cannot always be complete, every reasonable effort should make to obtain it.

    Available:

    Information may be useless if it is not readily accessible ‘ in the desired form when it needs. Advances in technology have made information more accessible today than ever before.

    Reliable:

    The information should count on being trustworthy. It should be accurate, consistent with facts, and verifiable. Inadequate or incorrect information generally leads to decisions of poor quality. For example, sales figures that have not stood adjusted for returns and refunds are not reliable.

    Concise:

    Too much information is a big burden on management and cannot process in time and accurately due to “bounded rationality”. Bounded rationality determines the limits of the thinking process which cannot sort out and process large amounts of information. Accordingly, information should be to the point and just enough – no more, no less.

    Timely:

    The information must deliver at the right time and in the right place to the right person. Premature information can become obsolete or forgotten by the time it stands needed.

    Similarly, some crucial decisions can delay because proper and necessary information is not available in time, resulting in missed opportunities. Accordingly, the time gap between the collection of the central database and the presentation of the proper information to the decision maker must reduce as much as possible.

    Cost-effective:

    The information is not desirable if the solution is more costly than the problem. The cost of gathering data and processing it into information must weigh against the benefits derived from using such information.

    The Characteristics of Management Information Systems (MIS) - ilearnlot
    Characteristics of MIS Management Information Systems
  • Role of the Management Information System (MIS)!

    Role of the Management Information System (MIS)!

    Learn and Understand, Role of the Management Information System (MIS)! 

    The role of the MIS in an organization can be compared to the role of the 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. Also learned, What is MIS? Role of the Management Information System (MIS)!

    It fulfills the needs of blood supply to the human body in the normal course and also in crisis. The 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.

    The MIS satisfies the diverse needs through a variety of systems such as Query Systems, Analysis Systems, Modelling Systems and Decision Support Systems the MIS helps in Strategic Planning, Management Control, Operational Control and Transaction Processing.

    The 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. The 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.

    If the gathered information is irrelevant than decision will also incorrect and Organization may face big loss & lots of Difficulties in Surviving as well.

    Helps in Decision making:

    Management Information System (MIS) plays a significant Role in Decision making Process of any Organization. Because in Any organization decision is made on the basis of relevant Information and relevant information can only be Retrieving from the MSI.

    Helps in Coordination among the Department:

    Management Information System also helps in establishing a sound Relationship among every person of the department to the department through proper exchanging of Informations.

    Helps in Finding out Problems:

    As we know that MIS provides relevant information about every aspect of activities. Hence, If any mistake is made by the management then Management Information Systems (MIS) Information helps in Finding out the Solution of that Problem.

    Helps in Comparison of Business Performance:

    MIS store all Past Data and information in its Database. That why management information system is very useful to compare Business organization Performance. With the help of Management information system (MIS) Organization can analyze his Performance means whatever they do last year or Previous Years and whatever business performance in this year and also measures organization Development and Growth.

    The 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. The MIS helps the top management in goal setting, strategic planning and evolving the business plans and their implementation.

    The MIS plays the role of information generation, communication, problem identification and helps in the process of decision making. The MIS, therefore, plays a vital role in the management, administration, and operations of an organization.

    Role of the Management Information System (MIS) - ilearnlot

  • What is Management Information System (MIS)?

    What is Management Information System (MIS)?

    Learn and Study, What is Management Information System (MIS)?

    Management information system, or MIS, broadly refers to a computer-based system that provides managers with the tools to organize, evaluate and efficiently manage departments within an organization. In order to provide past, present and prediction information, a management information system can include software that helps in decision making, data resources such as databases, the hardware resources of a system, decision support systems, people management and project management applications, and any computerized processes that enable the department to run efficiently. Also learn, Concept of Investment, What is Management Information System (MIS)?

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    What is MIS? MIS is the use of information technology, people, and business processes to record, store and process data to produce information that decision makers can use to make day to day decisions. MIS is the acronym for Management Information Systems. In a nutshell, MIS is a collection of systems, hardware, procedures and people that all work together to process, store, and produce information that is useful to the organization.

    #Management Information System Definition:

    The Management Information System (MIS) is a concept of the last decade or two. It has been understood and described in a number of ways. It is also known as the Information System, the Information and Decision System, the Computer-based information System.

    A management information system (MIS) is a broadly used and applied term for a three-resource system required for effective organization management. The resources are people, information, and technology, from inside and outside an organization, with top priority given to people. The system is a collection of information management methods involving computer automation (software and hardware) or otherwise supporting and improving the quality and efficiency of business operations and human decision making.

    As an area of study, MIS is sometimes referred to as information technology management (IT management) or information services (IS). Neither should be confused with computer science.

    The MIS has more than one definition, some of which are given below.
    1. The MIS is defined as a system which provides information support for decision making in the organization.
    2. The MIS is defined as an integrated system of man and machine for providing the information to support the operations, the management and the decision-making functions in the organization.
    3. The MIS is defined as a system based on the database of the organization evolved for the purpose of providing information to the people in the organization.
    4. The MIS is defined as a Computer-based Information System.

    Though there are a number of definitions, all of them converge on one single point, i.e., the MIS is a system to support the decision-making function in the organization. The difference lies in defining the elements of the MIS. However, in today s world MIS a computerized .business processing system generating information for the people in the organization to meet the information needs decision making to achieve the corporate objective of the organization.

    In any organization, small or big, a major portion of the time goes in data collection, processing, documenting it to the people. Hence, a major portion of the overheads goes into this kind of unproductive work in the organization. Every individual in an organization is continuously looking for some information which is needed to perform his/her task. Hence, the information is people-oriented and it varies with the nature of the people in the organization.

    The difficulty in handling these multiple requirements of the people is due to a couple of reasons. The information is a processed product to fulfill an imprecise need of the people. It takes time to search the data and may require a difficult processing path. It has a time value and unless processed on time and communicated, it has no value. The scope and the quantum of information are individual-dependent and it is difficult to conceive the information as a well-defined product for the entire organization. Since the people are instrumental in any business transaction, a human error is possible in conducting the same. Since a human error is difficult to control, the difficulty arises in ensuring a hundred percent quality assurance of information in terms of completeness, accuracy, validity, timeliness and meeting the decision making needs.

    In order to get a better grip on the activity of information processing, it is necessary to have a formal system which should take care of the following points:

    • Handling of a voluminous data.
    • Confirmation of the validity of data and transaction.
    • Complex processing of data and multidimensional analysis.
    • Quick search and retrieval.
    • Mass storage.
    • Communication of the information system to the user on time.
    • Fulfilling the changing needs of the information.

    The management information system uses computers and communication technology to deal with these points of supreme importance.

    Why the Need for MIS?

    The following are some of the justifications for having an MIS system:

    Decision makers need information to make effective decisions. Management Information Systems (MIS) make this possible.

    MIS systems facilitate communication within and outside the organization: Employees within the organization are able to easily access the required information for the day to day operations. Facilitates such as Short Message Service (SMS) & Email make it possible to communicate with customers and suppliers from within the MIS system that an organization is using.

    Record keeping: Management information systems record all business transactions of an organization and provide a reference point for the transactions.

    What is Management Information System (MIS) - ilearnlot