Difference between management information system and data processing system?

Answer 1

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Answer 2

Data processing versus Management information

Most managers have a systematic way of developing information. In many instances, managers obtain information by informal means. Along with informal information, a formal, routine and systematic means of obtaining information is very important for every manager.

Data Processing

'Data' are facts and figures while 'processing' is manipulation of those facts and figures. Data processing means performing operations, through which facts and figures are collected, assigned meaning, communicated to others and retained for later use. The data processing cycle is shown below…

Figure 3-2: Data processing cycle

Record Classify Communicate

Sort

Calculate

Summarize

Compare

Management Information and Decision Making

Management information and decision making systems are already providing valuable tools for public works agencies where they have been implemented. The categories of these tools range widely and include Artificial Intelligence systems and decision models. Public works managers have found maintenance managers and GIS particularly useful in their activities.

Management information system (MIS)

The data processing along with other data provide input for the MIS. The interactions of data processing with MIS at different levels of management can be seen below…

Figure 3-3: Interactions of data processing and MIS

Top management

Middle management

Operating systems

Typically, data processing and MIS both are built up from the database through control and planning.

Maintenance Management Information Systems

Maintenance Management Information Systems are essentially database management systems that allow managers to set priorities and schedule preventive maintenance. The system can track all maintenance activities and work crews, materials, and time to repair data, permitting planning for future activities.

Decision Support System

Decision support system recognizes the fact that automates systems will not replace the manager. Decision support system reduces uncertainty and hence enhances the quality of management. A decision support system will accomplish one or more of the following:

1. Retrieve specific pieces of data.
2. Analyze data elements in the data base.
3. Interact with several data bases and analyze problems.
4. Estimate the consequences of decisions.
5. Propose decisions.

MIS can be defined as a "network of computer-based data processing procedures developed in an organization and integrated as necessary with other manual, mechanical and/or electronic procedures for the purpose of providing timely and effective information to support decision making……" [1]

There are four main factors, which must be taken into account in developing and producing information.

1. Timeliness - Out of date information is of no use to the manager.
2. Completeness - All of the information must be included, particularly for decision support system.
3. Conciseness - The system must be able to summarize vast amounts of data that is generally dumped onto the manager.
4. Relevance - One of the goals of MIS is to produce information that will generate action or provide insight.

Computer Use

Information systems depend on the computer. Hence, the design of the computer system will affect the information system. The arrangement of basic system or the manner in which they are managed will affect the information system.

Centralized versus Decentralized data processing

In centralized data processing all assets are controlled and operated by a single department whereas in decentralized data processing each department has its own data processing operation, funds its own requirements and reports to higher management on the success or failure of its data processing support.

Distributive data processing

Computer technology has assisted in reducing the problem of centralization versus decentralization. Distributive data processing takes advantage of both these types of techniques. For organization-wide applications, the mainframe is used via the communication link. Selective data from each system can be sent back and forth as required. Consequently, the best of both systems can be utilized and the results a cost-effective and service driven data processing systems.

Geographic Information Systems

GIS are computer systems designed to manage information related to geographic locations. They can also store, analyze, and retrieve large volumes of non-graphic data from other systems and display graphic-map images and ties them to descriptive data from a specific location. The system allows the user to enter, retrieve, manipulate, store and display geographic information quickly and accurately.

GIS information includes two forms of data:

Spatial data: Based on a geographic coordinate system; items can include land parcel, area and district, facility, and natural features.

Attribute data: Traditional database information that can be referenced geographically, such as by addresses, and can include location by events, conditions, Demographics, and construction permits or police reports

Microcomputers

Microcomputers are being used increasingly for stand-alone functions that might be too expensive to program on a mainframe. Some examples of stand-alone functions are:

1. Fleet management
2. Project management
3. Traffic signal timing optimization
4. Sanitation routing
5. Storm water drainage analysis
6. Pavement management
7. Hardy cross-flow analysis

Use of microcomputers in organizations has both advantages and disadvantages. For data processing operation it frees up response time. They represent computing ability in the form of spreadsheet programs that are not available on mainframes. The major disadvantage is the loss of control by the top management.

Databases

The earlier computer applications were characterized by large volume of redundant transactions on punched cards. The applications that followed allowed the speed and processing power of the computer to be exploited. But still, each application needed its own data file due to which expensive duplication of data was called for. This lead to the development of standardized data files called data bases. These data bases, once inserted into the system, can be accessed by all the application programs. In addition to the advantage of shared data base management systems have the ability to sort, rearrange and present the data for report purposes.

Expert Systems

Expert systems are computer programs that attempt to duplicate an expert's reasoning process to solve problems in a given field. Unlike conventional computer programs that process algorithms, expert systems use heuristics ("if-then" rules) to advise and guide users.

Systems that can be useful to public works managers include a computer model to determine whether a contaminated industrial site can be cleaned up or whether the contamination poses a permanent hazard

Do's and Don'ts for developing a public works MIS

DO: Talk to a data processing manger before making decisions on budgeting, motor equipment and other tasks that involve data.

DO: Learn about data processing to facilitate the facts and ideas with the data processing manager.

DO: Consider the cost of computerization. Will the benefits equal or greater that costs.

DO: Review operations thoroughly prior to computerization.

DO: Evaluate the manual system now in place.

DO: Thoroughly understand the purposes, goals and objectives of the operation.

DON'T: Go out and buy a microcomputer before u know what u want it to accomplish.

DON'T: Buy a microcomputer without consulting the data processing manager about

compatibility and commonability.

DON'T: Ask the data processing office for one-time reports that cost more to produce

than the value received.

DON'T: Forget that MIS is a resource to assist the manager, reduce uncertainty and

improve decisions.

References:

1. Donald H. Sanders and Stanley J. Birkin, Computers and Management, 3rd ed. (New York: McGraw Hill, 1980).

2.Don Nelson and Edward Brinson Serra , Public Works Receiving the Goods, ( Houston :Philbrook, 1986