DESIGNING OF MIS

The basic decision has to take into account a general approach, so that suitable systems
can be developed for different organizations depending upon their role, functions and decision
making requirement. In each organization, data gets generated at different levels. This data when
processed and analyzed becomes information which, when properly communicated in time for
the decision making can result in decision actions.

Designing of MIS involves the following steps:

a. Defining the problem or decision area.
b. Setting of system objectives.
c. Establishing system constrains(both internal and external)
d. Determining information needs.
e. Determining information source.
f. Finding out alternative solutions.
g. Evaluating alternative solutions.
h. Selecting the best alternative.
i. Preparing decision report.
j. Implementing and monitoring the selected alternative.
k. Documentation.

a) Defining the problem or decision area:
Undoubtedly problems exist in any dynamic business. What usually lacks is the clear
identification of the problems and a priority system for their solution. The problem may be in the
marketing where sales are poor or there could be problems in the inventory are where large

 stocks exists and every year it is increasing. Therefore, management must take the first step in
MIS designing by formulating problems to be solved. The precise definition of the problems is
crucial. Otherwise, the problem solver would be restricted to a solution or a system that is sub
optimal or that encompasses more than it is needed.
b) System objectives:
The system objective should clearly be stated in terms of the functions the information
system is to perform. The objective could be to cater specifically for information needs of
finance, personnel, material or any other specific area of business. It could also be to meet of
meet the total information needs of the organization. In short, system objective should be stated
in terms of what managers can do and how effectively they would be able to function after their
information requirements have been met. To give an example, in the field of inventory, the
objective could be to design better decision rules so that various levels of inventory could
adequately be controlled.
The following questions should be answered while laying down the objectives of MIS
design:
(a) What is the purpose of the system?
(b) Why is it expected to do?
(c) What is it needed?
(d) What are the users and what are their objectives?
The objectives of MIS system design have to match the organization objectives. The aim
being to improve decision making, lower cost, meet customer demands and improve the image of
the organization.
c) Establishing system constraints:
In designing MIS the designer has to face certain limitations; sometimes called problem
boundaries or restrictions. Constraints enable the designer to stipulate the conditions under which
objectives may be attained and help to consider the limitations that restrict the design. To state it
in another way, constraints, which are provided by the manager, user or the designer himself,
limit freedom of action in designing a system to archive the objectives.
Constrains may be classified as (a) internal or(b) external to the organizations as shown
in figure:
Internal constraints:
(i) Top management support:
It is very essential for MIS system. A good environment for information system must be
set. Approval and support of top management should be taken. Their feedback and guidelines
definitely influence the kind of system managers may design.
(ii) Organizational policy:
Considerations frequently set limits on objectives and modify an intended approval for
design of a system. In every organization managers occupying various positions, influence
information flow, particularly in a decentralized system. Also company policies frequently
 define or limit the approach to system design among these polices are those concerned with
product and service, R & d, marketing finance and personnel.
(iii) Man power:
Perhaps the most signification constraint of all, is the one concerning people of
MANPOWER. Men problem is probably the fact, most often mentioned where failure to achieve
expected results is concerned. Here we have the difficulties associated with the natural human
reaction to change, the lack of interest and support, frequently met in systems design and
operation.
(iv) Cost:
It is a major resource limitation. The cost to achieve an objective should be compared
with the benefits to be derived. The other resource requirements could be space, air conditioning,
power etc.. and other facilities for setting up the information system inadequacy of resources can
greatly limit the system design.
(v) Acceptance:
Acceptance of the computerized MIS system perhaps presents the most difficult aspect of
the problem in organizations, as it causes a natural human reaction against the change .
(vi) Self Imposed restrictions:
There are those placed on the design by the manager or the designer. The data
requirements, the data volume and the rate of processing are constraints imposed by the
immediate users.
External constraints
i). Customer:
Foremost among the consideration surrounding the external environments are those
concerning the customer. Order entry, billing, and other systems that interface with systems of
the customer must be designed with the customer’s needs in mind. If certain outputs from the
system sure not acceptable to the customer, a definite limitation is to be faced.
ii). Government:
A variety of additional external constrains should be considered in addition to the
customer. The government(central, state, local)imposes certain restrictions on the processing of
data, in maintaining and in the conduct of business like taxes and reporting.
iii). Unions:
Unions can affect the operation of systems involving members in matters such as
compensation, grievances and working conditions.
iv). Suppliers:
They are also an important group to be considered when designing information systems
because these systems frequently interface with that group.
 d) Determining information needs:
A clear statement of information needs is fundamental necessity to good system design.
Unless managers can provide the specifications for What they want out of an information
system, the design effort will produce less than optimum results, If on the other hand, the user
manager can define the objectives and spell out the items of information’s that are needed to
reach the objective, he or she is, then, at least half way through in system
A manager needs information for a variety of reasons concerned with the management
process. The type of need that he or she will have at various times for various purposes depends
largely upon following factors:
Personal Attributes such as
i) Knowledge of information systems
ii) Managerial style i.e. Leadership style and decision making ability
iii) Manager’s perception of information needs.
Organizational Environment such as
i) Nature of the company,
ii) Level of management and
iii) structure of the organization
e) Determination of information sources:
The step for determining information needs is hardly completed, before we consider the
information sources. Although some systems require considerable external information, for the
most part, the natural place to turn for information is inside the firm –books, records, files,
accounting documents etc. thus most analysis refers to the step of determining information
requirements on analyzing the present system. We must not only uncover information sources for
the particular subsystem under consideration but also take into account how they fit into the
overall integrated sources of information and techniques of analysis.
f) Finding out alternative solutions:
Once the problem has been understood, the solutions for the problem are to be found out.
Ideally, one has to attempt to find out more than one alternative solution, but it should not be
much more. It should be narrow down to a few. Because having too many alternative affects the
problem solving process, increase costs and become unmanageable.
g) Evaluating alternative solutions:
Each alternative has its own advantages and disadvantages that contribute to solving the
problem in question. These must be evaluated and attached to the proposed alternative. In certain
business problems, the costs and benefits are party intangible or immeasurable. In such a
situation the problem solver should make approximations using surrogate measures and
probabilities.
h) Selecting the best alternative:
In this stage, the problem solver may have many alternatives which have more benefits
than costs. In such a situation he applies a decision rule or a yardstick (e.g. rate of return or time
etc.) to summaries and rank the alternatives finally the best alternative is chosen.
i) Preparation of design report:
The conceptual design report is, in a sense, a proposal for the expenditure of funds and
for organizational changes. Because it is directed to management, it should have a concise
summary of the problems that constitutes the system, the objectives, the general nature of the
system, reasons why the concept was selected over others, and the time and resources required to
design and implement the system.
j) Implementing and monitoring the selected alternative:
Once, the best alternative or system has been selected it must be implemented and
followed up. If it does not perform well and incurs more costs than implemented and controlled.
k) Documentation: For the smooth running of the MIS it is necessary that the following types
of documentations are to prepared:
i) For those providing input, a simple overview of the system, a clear description of exactly
what input is expected and a note above what input is not acceptable.
ii) For those running and maintaining the system, all the technical documentation generated
during the development process.
iii) For those using the output, a simple overview of the system, a clear description of what
the output means and a note about its limitations.