MODULE 1: INTRODUCTION TO MIS IT for Managers 22MBA302

Module-1 Introduction to MIS

Concepts, Roles, Impacts, MIS & its users, Components of an IS, Management
as Control systems, MIS support to Organization Effectiveness, MIS for E- business Digital Firms –
E-Commerce, E – Communication, E-Collaborations, Real Time Enterprise, MIS: Strategic Business
Planning, Concept of corporate planning, Essentiality of strategic Planning, Balance Score card, Score
Card & Dash Board, Security Challenges in E- Enterprises, Impacts of Information Technology on
society.

Concept:
• The concept of Management Information Systems (MIS) has undergone significant evolution,
adapting to the changing needs of organizations.
• Originally focused on processing and presenting data as periodic reports, MIS has transformed into a
dynamic system essential for decision-making in today's competitive and ever-changing business
environment.

KEY STAGES IN MIS EVOLUTION :

1. Data Processing and Reporting:
• Initial MIS focused on processing organizational data into reports.
• Impersonal system, requiring individuals to extract and utilize processed data for their specific needs.
2. Data vs. Information:
• Distinction between raw data and information emerged.
• Information seen as a product of data analysis, akin to raw material and finished product.
3. Individual-Oriented Concept:
• Shift towards individual-oriented systems recognizing diverse information needs.
• Emphasis on presenting information to provoke decisions, actions, or investigations.
4. Exception Reporting:
• Introduction of exception reporting, where the system highlights deviations from established norms.
• Norms for exceptions subject to change due to competitive and dynamic business environments.
5. Need-Based Exception Reporting and Databases:
• MIS evolved to handle need-based exception reporting.
• Introduction of databases to store data accessible by anyone, allowing varied perspectives on the
same data.
6. End User Computing and Decentralization:
• Emergence of end user computing using multiple databases.
• Decentralization of MIS, empowering users to be independent of computer professionals.
• Transformation of MIS into a decision-making system.
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7. Interdisciplinary Approach:
• MIS incorporates principles from various academic disciplines (Management Science, Accounting,
Operations Research, etc.) for effective data analysis.
• Designing decision support tools involves a multi-disciplinary approach.
8. Foundation in Management Principles:
• MIS rooted in management principles and practices.
• Reliance on management control, recognizing the human element in decision-making.
9. System Design and Systems Theory:
• MIS heavily relies on systems theory for systematic planning and design.
• Open system design allows continuous adjustment to environmental changes.
10. Dynamic and Reviewable Concept:
• MIS is a dynamic concept subject to constant review and modification.
• Tailored to the organizational fabric, considering people, management functions, and control.
• Adaptation to changing business phases and growth cycles.

CONCEPTUAL VIEW OF MIS

PHYSICAL VIEW OF MIS

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MIS: DEFINITIONS
• Popularly known as the Information System, the Information and Decision System, the Computer-
based Information System
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
organisation.
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 function in the organisation.
3. The MIS is defined as a system based on the database of the organisation evolved for the purpose of
providing information to the people in the organisation.
4. The MIS is defined as a Computer-based Information System.
Final Definition:
MIS is a computerised business processing system generating information for the people in the organisation
to meet the information needs for decision-making to achieve the corporate objectives of the organisation.

FEATURES OF MIS:
1. Handling of a voluminous data.
2. Confirmation of the validity of data and transaction.
3. Complex processing of data and multidimensional analysis.
4. Quick search and retrieval.
5. Mass storage.
6. Communication of the information system to the user on time.
7. Fulfilling the changing needs of the information.
8. MIS uses computers and communication technology to deal with these points of supreme importance.

ROLE OF MIS:
• The role of MIS in an organization can be likened to the vital role of the heart in the human body.
• In this analogy, information serves as the blood, and MIS functions as the heart.
• The heart, like MIS, ensures the systematic supply of essential elements (information) to various
parts of the body (organization), responding dynamically to changing needs.
1. Data Collection and Processing:
a. MIS collects data from diverse sources within the organization.
b. Processes and regulates data, ensuring its relevance and accuracy.

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2. Information Distribution:
a. Functions akin to the heart supplying blood to different body elements.
b. Distributes processed information to individuals, groups, and management levels as needed.
3. Diverse Information Needs:
a. Satisfies diverse information needs of individuals, groups, managers, and top management.
b. Utilizes various systems like Query, Analysis, Modeling, and Decision Support Systems.
4. Support for Management Functions:
a. Aids in Strategic Planning, Management Control, Operational Control, and Transaction
Processing.
b. Supports decision-making at different organizational levels.
5. Operational Support:
a. Assists clerical personnel in transaction processing and provides data for queries.
b. Helps junior management in planning, scheduling, and control of operations.
6. Short-Term Planning:
a. Supports middle management in short-term planning, target setting, and business function
control.
b. Utilizes management tools for planning and control.
7. Top Management Support:
a. Assists top management in goal setting, strategic planning, and business plan implementation.
b. Plays a crucial role in the overall administration, management, and operations of the
organization.

IMPACT OF MIS
1. Efficient Function Management:
• MIS supports marketing, finance, production, and personnel management.
• Facilitates easy tracking and monitoring of functional targets.
2. Informed Decision-Making:
• Functional managers are kept informed about progress, achievements, and shortfalls.
• Provides alerts and probable trends for proactive decision-making.
• A disciplined information reporting system creates a structured database.
3. Enhanced Planning and Forecasting:
• Supports long-term perspective planning.
• Forecasts business trends based on historical data.

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4. Common Understanding:
1. Begins with defining data entities and attributes.
2. Utilizes a data dictionary for common understanding of terms.
3. Promotes clarity in communication and understanding of events.
5. Systemization of Business Operations:
1. Calls for effective system design.
2. Streamlines operations, improving business administration.
3. Introduces discipline through the use of systems and procedures.
6. Alignment with Corporate Goals:
1. MIS goals and objectives align with overall business goals.
2. Guides the organization towards corporate objectives.
7. Impact on Managerial Efficiency:
• Well-designed systems focus on managerial needs.
• Provides a wealth of information for managerial tools and techniques.
• Enables experimentation and modeling for better decision-making.
• Utilizes computer tools and techniques not possible manually.
8. Reduced Clerical Overhead:
• Transfers clerical work to computerized systems.
• Relieves human resources from drudgery, allowing for more valuable work.
• Directly impacts the reduction of clerical overhead.
9. Information-Based Work Culture:
• Seventy percent of time spent on recording, searching, processing, and communicating
reduced.
• Creates a culture of using information efficiently and effectively.
10. Improvement in Decision-Making:
• Improves the ability to make informed decisions.
• Reduces the time spent on routine tasks, allowing for more strategic thinking.
• Overall, contributes to improved decision-making ability.

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• User Levels:
Represents different levels of users in the organization: Clerk, Assistant, Officer, Executive, and Manager.
• User Tasks:
Describes the specific tasks of each user level.
 Clerk: Search data and report.
 Assistant: Collect and organize data, perform rudimentary analysis.
 Officer: Integrate data from different systems, analyze, and comment.
 Executive: Decision-making, planning, achieving organizational goals.

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KEY COMPONENTS OF INFORMATION SYSTEM

The key components of an Information System are as follows:

1. Hardware:
Hardware represents the physical components of the Information System, including computers,
servers, networking devices, and other peripherals. These components work together to process and
store data.
2. Software:
Software encompasses the programs and applications that enable users to interact with the hardware.
This includes operating systems, database management systems, and various application software
designed for specific business functions.
3. Data:
Data is raw information that serves as the foundation for decision-making. It can take various forms,
such as text, numbers, images, and multimedia. Effective Information Systems rely on accurate and
timely data for meaningful output.
4. Procedures:
Procedures are the documented processes and guidelines that govern the use and management of the
Information System. Well-defined procedures ensure consistency, security, and proper utilization of
the system resources.
5. People:
People are an integral component of the Information System, including end-users, IT professionals,
and system administrators. Human involvement is crucial for data input, system maintenance, and
decision-making based on the information generated.
6. Networks:
Networks facilitate communication and data exchange between different components of the
Information System. This includes local area networks (LANs), wide area networks (WANs), and the
internet, connecting users and systems across various locations.
7. Communication Channels:
Communication channels refer to the pathways through which data is transmitted within the
Information System. This includes wired and wireless communication channels, ensuring seamless
connectivity and data flow.

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8. Feedback:
Feedback mechanisms enable the system to receive information about its performance and output.
This information is essential for continuous improvement and adaptation to changing business
requirements.
9. Control:
Control mechanisms are implemented to manage and regulate the operation of the Information
System. This involves security measures, access controls, and monitoring to ensure the system's
integrity and protect against unauthorized access.
10. Environment:
The environment encompasses the external factors that may influence or be influenced by the
Information System. This includes economic, social, legal, and technological factors that shape the
context in which the system operates.

MANAGEMENT AS A CONTROL SYSTEM

Management Information System (MIS) serves as a crucial control system within organizations, playing a
pivotal role in monitoring, regulating, and optimizing various business processes. Here is a 7-mark answer
highlighting how MIS functions as a control system:
1. Monitoring Performance:
MIS provides a real-time and historical overview of organizational performance by collecting and analyzing
data from different departments and functions. Through performance metrics and key performance
indicators (KPIs), management can monitor how well the organization is achieving its goals and objectives.
2. Data Accuracy and Integrity:
MIS ensures the accuracy and integrity of data by implementing controls and validation checks. This helps
in maintaining reliable information, reducing errors, and preventing misleading reports, thereby enhancing
the overall quality of decision-making.

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3. Resource Allocation:
Management relies on MIS for effective resource allocation. By analyzing data on resource utilization and
efficiency, the system assists in optimizing the allocation of human, financial, and technological resources to
improve productivity and achieve organizational objectives.
4. Decision Support:
MIS acts as a decision support system by providing relevant and timely information to management. This
enables leaders to make informed decisions based on data-driven insights, reducing uncertainties and
enhancing the effectiveness of strategic and operational decisions.
5. Coordination and Integration:
MIS integrates information from various organizational units, ensuring that data flows seamlessly across
departments. This promotes coordination and collaboration, allowing different parts of the organization to
work together efficiently and align with common goals.
6. Control of Access and Security:
MIS includes access controls and security measures to safeguard sensitive information. It ensures that only
authorized personnel have access to specific data, protecting against unauthorized use or manipulation of
information, and maintaining the confidentiality and integrity of data.
7. Continuous Improvement:
MIS supports the concept of continuous improvement by providing feedback on organizational processes.
Through performance analysis and feedback mechanisms, management can identify areas that need
improvement, implement changes, and monitor the impact of these changes over time.

MIS: A SUPPORT TO THE MANAGEMENT

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DIGITAL FIRM

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MANAGEMENT INFORMATION SYSTEM (MIS) FOR E-BUSINESS:

Key aspects of how MIS is employed in the realm of E-business:

1. E-Commerce Platform Integration:

MIS facilitates the integration of E-commerce platforms, managing the online transactions, customer
interactions, and order processing. It ensures seamless connectivity between the front-end website and
back-end databases, enabling efficient handling of sales and customer data.
2. Customer Relationship Management (CRM):
MIS supports CRM systems for E-businesses, helping to track customer interactions, analyze buying patterns,
and personalize the customer experience. This information is valuable for targeted marketing, improving
customer satisfaction, and fostering long-term relationships.
3. Supply Chain Management (SCM):
MIS aids in the integration and management of the E-business supply chain. It tracks inventory levels,
monitors supplier relationships, and optimizes the logistics process, ensuring a streamlined and efficient flow
of products from suppliers to customers.
4. Data Analytics for Market Insights:
MIS leverages data analytics tools to gather insights from vast amounts of E-business data. This includes
analyzing customer behavior, market trends, and competitor activities. These insights are crucial for making
informed decisions, identifying opportunities, and staying competitive in the online marketplace.
5. Security and Fraud Prevention:
Security is paramount in E-business. MIS implements robust security measures to protect sensitive customer
data, financial transactions, and the overall integrity of the online platform. This includes encryption, secure
payment gateways, and monitoring for potential fraudulent activities.
6. Real-time Reporting and Dashboards:
MIS provides real-time reporting and dashboards, offering a comprehensive view of E-business performance.
Managers can monitor sales, website traffic, and other key metrics instantly, enabling quick decision-making
and timely responses to market changes.
7. Mobile Optimization:
As E-business extends to mobile platforms, MIS ensures mobile optimization. It involves responsive design,
mobile apps, and analytics to understand and enhance the mobile user experience, as a growing number of
customers access E-businesses through smartphones and tablets.
8. E-Business Strategy Alignment:
MIS aligns with the overall E-business strategy, helping to implement and adjust technology solutions to
meet business goals. It ensures that technology investments support the organization's objectives, whether
they are focused on market expansion, customer acquisition, or operational efficiency.
9. Feedback Mechanisms:
MIS incorporates feedback mechanisms, such as customer reviews and analytics, to gauge customer
satisfaction and identify areas for improvement. This iterative process supports the continuous enhancement
of products, services, and the overall E-business experience.
10. Regulatory Compliance:
In the ever-evolving landscape of online business, MIS helps E-businesses stay compliant with various
regulations, such as data protection laws and online transaction regulations. This is crucial for building trust
with customers and avoiding legal issues.

ORGANISATION OF BUSINESS IN DIGITAL FIRM

Four business models that together work in an E-enterprise organisation

1. E-business
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2. E-communication

3. E-commerce

4. E-collaboration

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1. E-BUSINESS

E-Business Scope:
• Limited to executing core business processes.
• External interfaces include suppliers, customers, contractors, and consultants.
Core Business Processes:
• Procurement, manufacturing, selling, distribution, delivery, and accounting.
• Best run by application packages like ERP (Enterprise Resource Planning).
Extended Enterprise Scope:
• Inclusive of customers, suppliers, and distributors.
• Best suited for planning and execution using SCM (Supply Chain Management).
Backend Support Systems:
• Transaction processing, workflow, workgroup, and process control applications.
• Support main ERP/SCM enterprise management systems.

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Event Processing Example:
• Supplier sends goods, processed using E-business systems suite.
• Involves barcode or RFID scanning, receipt processing, and seamless updates.
Workflow System Usage:
• Used for checking, confirming, and certifying quality in stages.
• Involves a workgroup with specific roles in receipt processing.
Integration of E-Business Systems:
• Uses internet/intranet/extranet capabilities for seamless event processing.
• Redefines conventional business models into customer-centric process models.
Functional E-Business Systems:
• ERP/SCM/CRM as dedicated software packages for core management functions.
• Supported by frontend and backend systems for transaction processing and control.
Current E-Business System Focus:
• Built through ERP for manufacturing resource management.
• SCM for logistics and distribution, and CRM for customer relations.
Functional Systems in E-Business:
• Marketing, Production, Procurement, Human Resource, Accounting & Finance.
• Evolved from information-driven to knowledge-driven systems with IT integration
2. E-COMMERCE
E-commerce Overview:
 Second significant application after ERP, focusing on buying and selling of goods.
 Encompasses online activities from design and development to marketing, selling, delivery,
service, and payment.

Internet-Based Operations:
 Leverages internet and web technology for a comprehensive online commercial scope.
 E-commerce process model involves the buyer, seller, and a unique participant called the
'Merchant Server.'
Merchant Server Role:
 Ensures secure payments to the seller through authorization and authentication of commercial
transactions.
 Order tracking may be included as a feature for customers to monitor delivery status.

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E-commerce process model can be viewed in four ways and categories.

• B 2 C: Business Organisation to Customer
• B 2 B: Business Organisation to Business
• C 2 B: Customer to Business Organisation
• C 2 C: Customer to Customer
1. In B2B model, the participants in E-business are two organisations with relations as buyerseller,
distributor-dealer and so on.
Information Delivery Application
• Issuing business circular
• Product catalogues publications
• News clippings
• Messaging
Transaction Processing Application
• Order processing
• Order execution
• Payment processing
• Money transfer
2. In B2C model, the participants in E-business are an organisation, and customer as an individual.
The customer is an individual consumer. The E-business applications in B2C are the
following:
Information Delivery and Sharing Application
• Organisation manual

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• Database of knowledge
• Business information
Transaction Processing Application
• Payments to employee
• Issue of shares/bonds
• Delivery through courier
3. In C2B model, the customer/consumer deals with business organisation in individual capacity.
Information Delivery and Sharing Application
• Downloading of information from website/portal
• Viewing the bank balance
• Seeing manuals/drawings/pictures/images, and so on
Transaction Processing Application
• Requesting an item
• Obtaining travel advance
• Inquiry processing
• Credit card payment
• Cash withdrawal through ATM
4. In C2C model, both the parties are individuals and play the role of buyer/seller as the case may
be.
Information Delivery and Sharing Application
• Messaging e-mail
• Reports
• News groups
• Interests groups
Transaction Processing Application
• Payment approvals
• Memos
• Sanctions and confirmations
• Issues and receipts
In E-business models, we have considered two parties who engage in business activity. But
to perform these activities certain intermediaries are required to handle the communication
traffic between the two parties in B2B, B2C, C2B and C2C.
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THE INTERMEDIARIES ARE:
1. Hardware Suppliers: Server, clients, routers and network card providers
• Network access providers: ISP, EDI, DoT
• Information access providers: Browsers such as Netscape, Adobe and Internet Explorer.
• Payment processors: Master Card, Visa.
• Website design providers: Consultants and web developing companies.
• Web directory providers: Yahoo, Alta Vista, and Lycos.
2. Digital Firm Models are developed using these intermediaries.
The components of E-business models are:
• Internet for external communication
• Intranet/Extranet for internal communication
• Network and TCP/IP protocols and tools for delivery mechanism
• Web server and web browsers software for access, process and download and mailing.
• Back-end integrated systems for application processes
3. The people involved in E-business model other than users of the models are:
• Web master • Content provider
• Web designer • Content designer
• Web developer/programmer • Web administrator

3. E-COMMUNICATION
Types of electronic communications

1. Email

2. Instant messaging and live chat

3. Websites and blogs

4. SMS/text messaging

5. Phone and voicemail

6. Video

1. Email

In an email stats report covering 2021 to 2025, research firm Radicati predicts that businesses and
consumers’ total number of emails sent and received per day will surpass 319 billion by the end of 2021.
With so many emails flying in and out and no clear prioritization, the risk of losing vital intel is high.

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Although it’s not the most efficient for workplace communication, especially in highly collaborative
environments, email has its uses:
 Providing directions, data and links to online sources
 Sharing brief status updates
 Sending attachments
 Delivering timely information, such as a weekly newsletter to an email list
If you don’t have an effective email organization strategy in place, you’re wasting precious time searching
through your inbox, separating junk mail from high-priority and digging for conversation strings.
2. Instant messaging and live chat
Instant messaging (IM) refers to the real-time or instantaneous transmission of messages via the internet or
an internal network or server.
IM tools such as Slack and Facebook Messenger reduce, and often eliminate, the unnecessary and time-
consuming back-and-forth of phone calls and emails. IM also lets you immediately raise and address issues
that could otherwise languish unnoticed for days or weeks.
Live chat is similar to IM in that participants can send one another messages in real time. Both parties
usually need to be in each other’s “friends” or “connections” list with IM. To use live chat, you don’t have to
be friends with someone. It’s similar to live-chat apps on websites where customers can chat with a service
rep. Live chats are also session-based. Unlike open-ended IM chat, you need to initiate another session after
terminating the first one.
3. Websites and blogs
According to a 2021 post by online statistics portal Statista, there are 1.88 billion websites. Of this number,
e-commerce platform Oberlo found that approximately 600 million have blogs. Research by Top Design
Firms also found that 28% of U.S. small businesses still do not have a website.
Unless potential customers know your brand well, they won’t know you’re in business without a website.
Most people research a company or product before they visit a store or make a purchase, and often prefer
transacting with businesses online. Market intelligence firm eMarketer expects online grocery shopping to
surpass $100 billion in 2021.
Even if you don’t have a home website, blogs can solidify your reputation as a go-to industry expert—
provided you consistently publish insights that address your audience’s pain points.
4. SMS/text messaging
According to a recently published Pew Research study, 97% of Americans “now own a cellphone of some
kind.” Additionally, 85% of Americans now have a smartphone compared to just 35% in 2011 when Pew
first surveyed smartphone ownership. Worldwide, Statista found that active smartphone subscriptions stand
at more than 6 billion in 2021, and projects they’ll surpass 7.5 billion in 2026.
This means things will continue to look up for companies taking advantage of the power of short message
service (SMS) and text messaging for customer communications. Here’s why:

 Convenience: More customers have access to it

 Ease: Most SMS platforms also support template use for repetitive tasks such as opt-in confirmation,
order or issue resolution confirmation, appointment reminders and delivery notifications
 Speed: It takes only a few seconds for messages to reach vast audiences

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5. Phone and voicemail
With most business communication now happening via mobile and desktop apps or cloud-based platforms,
it’s easy to forget the old-school phone system. Customer behavior may have evolved in response to
technology, but there’s still a need for a personal touch.
Voicemail systems have come a long way too. Modern voicemail services take messages and send them as
text (voicemail to text) or email (voicemail to email).
But you don’t have to have a phone system to make calls. With more audio communications happening over
the cloud, Slack has a built-in calling feature for making voice calls. Slack also supports adding guest roles
to your workspace for temporary contacts (contractors, vendors, clients or interns).
6. Video
Explainer videos are short videos that highlight the features of a product or service. They’re particularly
helpful for potential customers researching a product or current customers trying to understand how one
functions. Explainer videos can also be used for online advertising.
Video conferencing platforms have multiple uses besides organizing conferences or conducting meetings:
 HR and recruitment initiatives, such as interviewing job candidates and onboarding new employees
 On-demand training and live, instructor-led courses
 Employee engagement through remote team-building activities, such as virtual happy hours or
personal-fact guessing games

4. E-COLLABORATION

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E-Collaboration Overview:
• Involves groups, teams, or virtual teams working together to achieve common objectives.
• Enabled by e-technologies and Internet support for communication and access to databases.
Collaboration Process:
• Teams collaborate within or between organizations.
• Achieves results through cooperative work on projects and assignments.
Advantages of E-Collaboration:
• Taps into collective wisdom, knowledge, and experience of team members.
• Can be conducted regardless of physical location, forming virtual teams.
Internet Platform and Web Technology:
• E-collaboration operates on an Internet platform.
• Utilizes web technology for communication and collaboration.
GroupWare Software:
• Enhances effectiveness with software like Lotus Notes, Novell GroupWare, Microsoft Exchange, and
Netscape Communicator.
• Facilitates communication, coordination, and document sharing among group members.
E-Collaboration Applications:
• Effectively works on applications such as calendaring, scheduling, project management, workflow,
workgroup tasks, document creation, and knowledge management.
Physical Location Independence:
• Teams need not be in one physical location.
• Virtual teams collaborate on projects or assignments from different locations.
E-Collaboration System Model:
• Components include Internet, Intranet, Extranet, LAN, WAN networks.
• Utilizes GroupWare tools, browsers, and application packages for customer requirement processing.
Database Support:
• Supported by databases on various servers, including mail server, material database, knowledge
server, and document server.
Collective Work Systems:
• Facilitates collaborative work, allowing members to work together on projects.
• Maximizes efficiency by leveraging technology for communication and cooperation.
E-collaboration system components are Internet, Intranet, Extranet and LAN, WAN networks for
communication through GroupWare tools, browsers. Application packages are software suit, which help
process customer requirements. It is supported by databases present on various servers like mail server,
material database, knowledge server, document server and so on.

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MAIN APPLICATIONS OF E-COLLABORATION
1. Calendar and Schedule Management:
 GroupWare tools aid in the preparation of calendars and schedules.
 Automate scheduling, notification, and reminders for meetings and appointments.
 Facilitate time management and conflict-free arrangement of meetings.
2. Project Management:
 Essential for high-level collaboration among team members.
 GroupWare tools assist in scheduling, tracking, and charting group status during project execution.
 Ensures efficient project process execution towards completion.
3. Workflow Management:
 GroupWare tools handle tasks requiring progressive incremental working.
 Manages the flow of tasks with specific roles and responsibilities for each stage.
 Facilitates communication between stages, triggers processes, and secures completed tasks for
handover to the next stage.
4. Work Group Applications:
 Differs from workflow by sharing a common database among group members.
 Members collaborate using GroupWare tools to achieve common goals.
 Involves communication, coordination, and collaboration by sharing knowledge, software, and
databases for completing group assignments.

REAL TIME ENTERPRISE (RTE):

Special case of a digital firm focused on real-time execution of business needs.
Instantaneous servicing or response to any request through real-time information collaboration.
Real-Time Information Accessibility:
• Information is captured, processed, and stored in real time.
• Extracted from transaction documents, databases, and emails for immediate and on-demand use.
Goals of RTE:
• Provide accurate and timely information to decision-makers.
• Connect all operations and enable real-time information sharing.
Platform and Benefits of RTE:
• Operates on a platform of Strategy, Technology, and People.
• Shortens cycle times such as 'Order to Cash' and 'Lead to Order'.
• Collaboration facilitated through automated business processes.

Customer, Supplier, and Business Partner Collaboration:

• Customers interact in real time for orders, inventory checks, secure payments, and support.
• Suppliers monitor customer demand, manage inventory, and collaborate on deliveries and billing.
• Business partners work together on business leads, joint campaigns, and prospect conversion.
Technology Usage in RTE:
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• Internet and complementary technologies used for real-time automation and integration.
• Central repository provides a single real-time view of data extracted from spreadsheets, ERP, CRM,
SCM, etc.
Efficient RTE Characteristics:
• Business process automation connecting organizations, systems, and processes.
• Real-time creation and storage of information for exchange with customers, vendors, and partners.
• Processes ensuring currency and consistency of information across the global network.
• Event-driven processes with automated triggers for sense and respond, reducing human intervention.

RTE functions with the help of four technology components:

1. Internet/Intranet & Web Technology: While ability of this technology to assist real time
processing by sourcing data/information from all resources is undoubtedly high, it’s success depends
upon widespread acceptance on the security, design and development complexity and its integration
in existing IS and IT platform. Great care should be taken about Web—Services and industry
standards while selecting the technology and the service provider. There are over 20 different Web-
Services standards and protocols.
2. Enterprise Software: Organisations planning to move over RT processing mostly would have an
enterprise software like ERP, SCM or CRM. The leading enterprise software solutions offer
integration capability. This however needs to be examined from the view point of its suitability and
the degree of collaboration it offers.
3. Infrastructure supporting RTE: Organisations contemplating to go over as RTE have basic
network (LAN/WAN & Internet/Extranet) infrastructure within and across the organisations. Most of
them would have data warehousing systems which is the soft infrastructure, offering a single source
of data for the organisation to access. What is then needed in the event of going over to RT
processing is making data warehousing system real time as well. This is a very challenging and
complex task to achieve.
4. Solution providers for Information sharing: Hosted solution providers offer application suite to
maximise real time information sharing. This suite offers capability to build an integrated application
around business process workflows and common data repository, like Data Warehouse. The cost of
information sharing across the organization, then, is lower because of using a hosted solution.
WHY ORGANIZATIONS ARE MOVING TOWARDS RTE
There are five forces which are driving this movement.
1. The differentiation between competition and the organisation is zeroing down to the quality of
delivery in terms of cost, time and speed. RTE approach ensures such delivery.
2. The demand for operational excellence through value based management supported by information
through score card and dash board.
3. The competition is now on how you integrate SCM and CRM on the platform of ERP and leverage
the integration to mutual advantage.
4. The rapid development and convergence of emerging technologies such as RFID, Ubiquitous
Computing, Neural Network, Pattern recognition, and Mobile computing into Internet, web, IT,
Network, Communication, Wireless technology. These technologies enable automation of processes
with least human intervention.
5. It offers competitive advantage due to
• Availability of superior competitive intelligence.
• Reduced response time to customer call.
• Transparency and visibility to entire value chain.

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• Significant reduction in cost of serving customer needs

MIS: STRATEGIC BUSINESS PLANNING

Essentiality of Business Planning:
Business planning is essential for survival, ensuring timely and informed decision-making. Long-range
planning is a systematic approach to navigate the enterprise through uncertainty and achieve organizational
goals.
1. Market Forces:
Unpredictable factors such as demand, supply, market trends, and consumer behavior.
Business planning essential to reorient the organization quickly in response to market forces.
2. Technological Change:
Rapid technological breakthroughs threaten existing businesses but create new opportunities.
Corporate plan ensures recovery of business investment before technological changes take over.
3. Complex Diversity of Business:
Wide scope with diverse products, market segments, manufacturing methods, and external dependencies.
Business planning necessary to handle uncontrollable factors and prevent loss of business opportunities.
4. Competition:
Direct or indirect competition requires continuous evolution of new strategies.
Business planning crucial for developing and implementing strategies to protect business interests.
5. Environmental Impact:
Beyond management control, various environments (social, economic, technological) affect business.
Environmental changes difficult to predict; corporate planning helps forecast changes and evolve
strategies to meet them.

TOOLS OF PLANNING
1. Creativity:
• Arises from experience, judgment, and intuition.
• Essential for decision-making in unprecedented situations.
• Conceptual skills include rapid idea generation, flexibility in perspective, original interpretation,
and clarity in complex situations.

2. Systems Approach:
• Considers all relevant factors and their inter-relationships.
• Analytical study of the total system, generating alternative courses of action.
• Examines critical and non-critical, significant and insignificant, and controllable and
uncontrollable factors.
• Uses scientific analysis, models, and tools such as Gantt chart, PERT/CPM for decision-making.
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3. Sensitivity Analysis:
• Tests the validity of solutions under variable conditions.
• Examines the impact of changes in assumptions, constraints, and new conditions on the solution.
• Assesses the criticality of factors influencing the solution.
• Utilizes decision tree analysis, methods of discounting, payoff matrix, simulation, and modeling.
4. Business Modeling:
• Represents a real situation on a mini scale, emphasizing significant factors.
• Models can be physical or mathematical, static or dynamic.
• Tested for utility and effectiveness, comparing model results with actual outcomes.
• Long-range strategic models are often dynamic, while short-range operational models are static.
5. Business Model:
• Framework for how an organization conducts and delivers value to customers.
• Involves infrastructure, people, organizational structure, and business functions.
• Constant monitoring and adaptation required to align with changes in the environment.
• Purpose lies outside the business itself, often in creating customer value.
6. Competitive Forces (Porter's Five Forces):
• Potential Entrants: Economies of scale, proprietary products, brand identity, and switching costs.
• Rivalry among existing competitors: Product differences, brand identity, switching costs, and
innovation.
• Supplier Power: Differentiation, switching costs, supplier merits, cost percentage, and forward
integration.
• Buyer/Customer Power: Volume, low switching costs, substitute products, price sensitivity, and
buyer brand.
• Substitutes as Threat: Switching costs, relative price performance, and customer propensity to
substitute.

EIGHT KEY ASPECTS OF BUSINESS WHICH EVERY ENTERPRISE MUST MANAGE

1. Value Proposition: Why should customer buy from you? – Compelling Value Proposition for
customer to choose among others. Nirma soap: ‘Doodh ki safeti’or shoodh safety.
2. Revenue Model: Different revenue streams. – Revenue streams designed to appeal different types of
customer segments. Auto manufacturers; different revenue streams for different customer segments;
Individuals, corporate, taxi drivers, corporate employees.
3. Market Opportunity: Is there a market for that value? Market space, an opportunity and its size. –
Does customer sees value in your value proposition and is that customer segment large enough to
venture in. ‘Tata nano’: large segment at the bottom of the pyramid and take pride in becoming a car
owner.
4. Competition: Who else is in that space? – Your competitors holding significant market share and are
threat to you. In auto business Maruti vs Hyundai vs Chevrolet are threat to each other.
5. Competition Advantage: What is it bringing to market which you don’t? – Your advantage or edge
over competition. LIC Corporation: Experience in insurance policy marketing in India is a
competitive advantage.
6. Market Strategy: How do you plan to promote to attract customers? – Appropriate marketing
strategy to raise market share. Private banks used technology-driven market strategy for attracting
young professionals.
7. Organisation structure: What structure (s) is necessary to execute business intent.
– Present organisation structure empowered to execute strategies and deliver the value. Telecoms,

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private banks are examples of empowered organisation structure for implementing business
processes.
8. Management Team: Do you have core competency, experience, expertise etc?
– Key personnel at the top, possessing core competency, knowledge which competition do not
have. Pharmaceutical and Airplane manufacturers have core competency and knowledge
which competition does not have.

BALANCED SCORE CARD

 Developed in nineties by Dr. Robert Kaplan and Dr. Davie Norton.

 Traditional approach which relies on accounting data.
 Balance view of four business aspects; Finance, Process, People and Customer.
 Objectives, Measures, Targets and Initiatives in these four aspects of the business.

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• Advantage of BSC is that it clarifies the organisation’s vision and enables to think in terms of more
clear strategy for action.
• Deals with internal business processes and their outcomes, and impact of outcomes on business
performance.
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• BSC approach recommends view of organisation in four perspectives with setting clear
vision and then for evolving effective competitive strategy.
The four perspectives are
1. The learning and growth HR perspective
2. The business process perspective
3. The customer perspective
4. The financial perspective
The Balanced Scorecard is made up of four key elements. These elements are defi ned as:
1. LEARNING AND GROWTH: HR Perspective:
• Identity and Resources of the Organisational Framework
• Measures: HR Performance, Employee Satisfaction, Training, IP developments, Empowerment,
Knowledge creation.
• This perspective works at the ability of employees. Internal business processes will only succeed if
adequately skilled and motivated employees, supplied with accurate and timely information, are
driving them.
2. INTERNAL BUSINESS PROCESS: Efficiency, Effectiveness Perspective
• Internal Perspectives are the critical processes necessary for delivery of superior performance in
achieving results in key result areas.
• Measures: Project Performance, Operation Performance, Rejections/Reworks, Cycle Times, Success
Rates, Repeat business value.
• In this perspective, the managers must identify the internal mission critical key processes that are
crucial to the organisations operations and performance. These processes are the ones that deliver
superior value to their customer and achieve financial targets.

3. CUSTOMERS: Satisfaction and Loyalty, Perspective:

• Identifies Customers, Markets, Value Proposition and Satisfaction
• Measures: Market Share, Retention, New Customers, Satisfaction Indices, Customers Profitability,
Customer retention, and so on
• This perspective aims at identifying the customer and market segments in which the business units
will choose to compete.

4. FINANCIALS Perspective:
• Financial indicators will vary from organisation to organisation but they are based on the
expectancy of the organisation’s strategic objective.
• Measures: Revenue, Growth, Reductions, Margins, Profitability, Cash Flow, ROI, Forecasts,
Financial ratios.

The Balanced Scorecard retains the financial perspective as a measure of economic consequences of
action already taken. Financial performance measures indicate whether a business strategy
implementation and execution are contributing to bottom-line improvement.

The benefits of BSC approach to strategic management of business can be summarized as

follows:
• It helps link performance measures to strategy at all levels in the organisation i.e.
strategy – plan and action, operations, and outcomes and impact on targets.
• It provides a multidimensional comprehensive view of operations and performance,
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and its impact on vision and target.
• People (Customers, Suppliers, Employees) have one method (BSC) to understand and
communicate vision, goals, strategies, plan, action, targets and achievements.
• Generates business knowledge on continuing basis through strategic feedback to become
a learning organisation.

SCORE CARD AND DASH BOARD: DIFFERENCE AND DISTINCTION

DASHBOARD:
1. Real-Time Monitoring: Dashboards are designed for real-time monitoring, similar to an automobile
dashboard, providing immediate insights into key metrics such as speed, fuel level, and engine
temperature.
2. Integration with Operating Systems: Dashboards are directly linked to the operating systems of the
car, enabling a direct connection to performance metrics. This integration allows for continuous
assessment and reporting.
3. 3As Warning System: The dashboard employs the 3As (Attention, Alert, and Action) framework to
warn the driver through exception displays when performance metrics deviate from the norm. This
proactive system ensures timely responses to potential issues.
4. Metrics-Driven Safety Assessment: Internally, the dashboard system calculates various metrics to
determine the safety of the car's operation. If deviations are detected, the 3As are displayed,
emphasizing a focus on processes critical to driving and ensuring safety.

5. Alignment, Visibility, and Collaboration: Dashboards contribute to organizational alignment,

visibility, and collaboration by allowing decision-makers to define, monitor, and analyze business
performance and strategy through key performance indicators (KPIs).

6. Enhanced Decision-Making: With the ability to define, monitor, and analyze KPIs, dashboards
empower decision-makers with the information needed to make informed and timely decisions,
ultimately contributing to improved business performance.

SCORE CARD:
1. Objective-Focused Progress Tracking: Scorecards chart progress at specific points in time (e.g.,
day, week, or month) towards achieving organizational objectives, providing a focused snapshot of
performance.

2. Key Result Areas and KPIs: Built for key result areas, scorecards utilize Key Operations Indicators
(KOIs) to measure and monitor performance in critical business operations, aligning with strategic
objectives.

3. Implementation of Business Strategies: Scorecards are integral to implementing business strategies

by assessing performance in key areas, ensuring that organizations achieve significant results aligned
with their strategic plans.

4. Periodic Performance Snapshots: Commonly perceived as displaying periodic snapshots of

performance, scorecards offer a summary-level view of business activity, allowing for a quick
assessment of progress and alignment with objectives.

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5. Comparison Against Targets: Scorecards compare actual performance against predefined targets,
determining whether business operations are within acceptable ranges and highlighting areas that
may require attention or improvement.

6. Communication of Strategy Performance: The selection of key indicators on a scorecard

facilitates effective communication of strategy performance to executives. This enables a focus on
the highest priority tasks needed to execute plans and strategies successfully.

Example of Multi Brand Retail Outlet

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SECURITY CHALLENGES IN E-ENTERPRISES

Introduction:
E-enterprises, reliant on digital platforms and technologies, face a multitude of security challenges that
necessitate robust measures to safeguard information, systems, and operations. As businesses increasingly
embrace digital transformation, understanding and addressing these security challenges become paramount.
1. Cyber Threat Landscape:
Diverse Cyber Attacks: E-enterprises encounter a broad spectrum of cyber threats, including malware,
ransomware, phishing, and denial-of-service attacks.
Sophistication: Cybercriminals continually enhance attack sophistication, using advanced techniques to
exploit vulnerabilities in systems and networks.
Insider Threats: Employees or insiders may pose security risks, intentionally or unintentionally
compromising sensitive data.
2. Data Security:
Data Breaches: E-enterprises are susceptible to data breaches, leading to unauthorized access and potential
misuse of sensitive information.
Data Encryption: Ensuring end-to-end encryption is crucial to protect data during transmission and storage.
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Regulatory Compliance: Adherence to data protection regulations is essential, with penalties for non-
compliance.
3. Cloud Security Concerns:
Data Storage in the Cloud: E-enterprises leveraging cloud services must address security concerns related to
data storage, access controls, and shared responsibility models.
Third-Party Risks: Dependency on third-party cloud service providers introduces additional security risks
that need careful consideration.
4. Mobile Security:
BYOD Challenges: Bring Your Own Device (BYOD) policies pose security risks, as personal devices may
lack adequate security measures.
Mobile Malware: Mobile devices are susceptible to malware attacks, emphasizing the need for mobile
security solutions.
5. Internet of Things (IoT) Security:
Proliferation of IoT Devices: The increasing number of interconnected IoT devices introduces new entry
points for cyber threats.
Weak Security Protocols: Many IoT devices have inadequate security measures, making them susceptible to
compromise.
6. Social Engineering Attacks:
Phishing: Social engineering attacks like phishing exploit human vulnerabilities, tricking individuals into
divulging sensitive information.
Educating Users: Employee awareness and training are crucial to recognize and thwart social engineering
attempts.
7. Regulatory Compliance:
Global Regulations: E-enterprises operating across borders must navigate diverse data protection and
privacy regulations.
Penalties for Non-Compliance: Violating regulatory standards can lead to severe financial penalties and
damage to an enterprise's reputation.
8. Incident Response and Recovery:
Cybersecurity Incident Response Plan: E-enterprises must have a well-defined incident response plan to
swiftly address and mitigate the impact of security incidents.
Data Backup and Recovery: Regularly backing up data and having robust recovery mechanisms are vital
components of resilience against cyber-attacks.
Conclusion:
Securing e-enterprises in the digital era demands a holistic approach encompassing technology, policies, and
user awareness. Addressing these security challenges ensures the resilience and sustainability of e-
enterprises amid the evolving threat landscape. Continuous monitoring, adaptation, and collaboration within
the cybersecurity community are essential for mitigating emerging risks and safeguarding the integrity of
digital business operations
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IMPACTS OF INFORMATION TECHNOLOGY ON SOCIETY:

1. Communication and Connectivity
2. Access to Information
3. Economic Impact
4. Education
5. Healthcare
6. Social Media and Culture
7. Privacy and Security
8. Environmental Impact
1. Communication and Connectivity
Positive Impact: IT has revolutionized communication, making it faster and more efficient. Email,
social media, and instant messaging have transformed the way people connect globally.
Negative Impact: There are concerns about the negative effects of excessive screen time and the
potential for digital communication to erode face-to-face interactions.
2. Access to Information:
Positive Impact: The internet has democratized access to information, empowering individuals with
knowledge on a wide range of topics.
Negative Impact: Information overload and the spread of misinformation or fake news are challenges
that have arisen due to the vast amount of information available.
3. Economic Impact:
Positive Impact: IT has driven economic growth by fostering innovation, streamlining business
processes, and creating new industries (e.g., tech, e-commerce).
Negative Impact: Automation and the use of AI may lead to job displacement in certain industries,
requiring adaptation and upskilling.
4. Education:
Positive Impact: IT has transformed education with online learning platforms, e-books, and interactive
educational tools, making learning more accessible and flexible.
Negative Impact: The digital divide—unequal access to technology and the internet—can exacerbate
educational inequalities.
5. Healthcare:

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Positive Impact: IT has improved healthcare through electronic health records, telemedicine, and
medical research advancements.
Negative Impact: Concerns about privacy and the security of health data have emerged with the
digitization of medical records.
6. Social Media and Culture:
Positive Impact: Social media platforms have connected people globally, facilitated social movements,
and provided new avenues for self-expression.
Negative Impact: Issues like cyberbullying, online harassment, and the spread of misinformation on
social media have raised concerns.
7. Privacy and Security:
Positive Impact: IT has enhanced security measures with encryption, biometrics, and secure
communication protocols.
Negative Impact: The increasing prevalence of cyber threats, hacking, and data breaches poses risks to
individual privacy and organizational security.
8. Environmental Impact:
Positive Impact: IT can contribute to environmental sustainability through technologies like smart
grids, energy-efficient systems, and remote collaboration reducing the need for physical travel.
Negative Impact: The production and disposal of electronic devices contribute to electronic waste (e-
waste) and environmental concerns.

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