Unit-1

Information can be defined as meaningfully interpreted data. If we give you a number

1-212-290-4700, it does not make any sense on its own. It is just a raw data.
However if we say Tel: +1-212-290-4700, it starts making sense. It becomes a
telephone number. If I gather some more data and record it meaningfully like −
Address: 350 Fifth Avenue, 34th floor
New York, NY 10118-3299 USA
Tel: +1-212-290-4700
Fax: +1-212-736-1300
It becomes a very useful information - the address of New York office of Human
Rights Watch, a non-profit, non-governmental human rights organization.
So, from a system analyst's point of view, information is a sequence of symbols that
can be construed to a useful message.
An Information System is a system that gathers data and disseminates information
with the sole purpose of providing information to its users.
The main object of an information system is to provide information to its users.
Information systems vary according to the type of users who use the system.
A Management Information System is an information system that evaluates,
analyses, and processes an organization's data to produce meaningful and useful
information based on which the management can take right decisions to ensure
future growth of the organization.
Information Definition
"Information can be recorded as signs, or transmitted as signals. Information is any
kind of event that affects the state of a dynamic system that can interpret the
information.
Conceptually, information is the message (utterance or expression) being conveyed.
Therefore, in a general sense, information is "Knowledge communicated or received,
concerning a particular fact or circumstance". Information cannot be predicted and
resolves uncertainty."
Information Vs Data
Data can be described as unprocessed facts and figures. Plain collected data as raw
facts cannot help in decision-making. However, data is the raw material that is
organized, structured, and interpreted to create useful information systems.
Data is defined as 'groups of non-random symbols in the form of text, images, voice
representing quantities, action and objects'.
Information is interpreted data; created from organized, structured, and processed
data in a particular context.
"Information is a data that has been processed into a form that is meaningful to recipient
and is of real or perceived value in the current or the prospective action or decision of
recipient."
Information, Knowledge and Business Intelligence
Professor Ray R. Larson of the School of Information at the University of California,
Berkeley, provides an Information Hierarchy, which is −
 Data − the raw material of information.
 Information − Data organized and presented by someone.
 Knowledge − Information read, heard, or seen, and understood.
 Wisdom − Distilled and integrated knowledge and understanding.
Scott Andrews' explains Information Continuum as follows −
 Data − A Fact or a piece of information, or a series thereof.
 Information − Knowledge discerned from data.
 Business Intelligence − Information Management pertaining to an
organization's policy or decision-making, particularly when tied to strategic or
operational objectives.
Information/Data Collection Techniques
The most popular data collection techniques include −
 Surveys − A questionnaires is prepared to collect the data from the field.
 Secondary data sources or archival data: Data is collected through old
records, magazines, company website etc.
 Objective measures or tests − An experimental test is conducted on the
subject and the data is collected.
 Interviews − Data is collected by the system analyst by following a rigid
procedure and collecting the answers to a set of pre-conceived questions
through personal interviews.

MIS - Classification of Information

Information can be classified in a number of ways and in this chapter, you will learn
two of the most important ways to classify information.
Classification by Characteristic
Based on Anthony's classification of Management, information used in business for
decision-making is generally categorized into three types −
 Strategic Information − Strategic information is concerned with long term
policy decisions that defines the objectives of a business and checks how well
these objectives are met. For example, acquiring a new plant, a new product,
diversification of business etc, comes under strategic information.
 Tactical Information − Tactical information is concerned with the information
needed for exercising control over business resources, like budgeting, quality
control, service level, inventory level, productivity level etc.
 Operational Information − Operational information is concerned with
plant/business level information and is used to ensure proper conduction of
specific operational tasks as planned/intended. Various operator specific,
machine specific and shift specific jobs for quality control checks comes under
this category.
Classification by Application
In terms of applications, information can be categorized as −
 Planning Information − These are the information needed for establishing
standard norms and specifications in an organization. This information is used
in strategic, tactical, and operation planning of any activity. Examples of such
information are time standards, design standards.
 Control Information − This information is needed for establishing control over
all business activities through feedback mechanism. This information is used
for controlling attainment, nature and utilization of important processes in a
system. When such information reflects a deviation from the established
standards, the system should induce a decision or an action leading to control.
 Knowledge Information − Knowledge is defined as "information about
information". Knowledge information is acquired through experience and
learning, and collected from archival data and research studies.
 Organizational Information − Organizational information deals with an
organization's environment, culture in the light of its objectives. Karl Weick's
 Organizational Information Theory emphasizes that an organization reduces
its equivocality or uncertainty by collecting, managing and using these
information prudently. This information is used by everybody in the
organization; examples of such information are employee and payroll
information.
 Functional/Operational Information − This is operation specific information.
For example, daily schedules in a manufacturing plant that refers to the
detailed assignment of jobs to machines or machines to operators. In a
service oriented business, it would be the duty roster of various personnel.
This information is mostly internal to the organization.
 Database Information − Database information construes large quantities of
information that has multiple usage and application. Such information is
stored, retrieved and managed to create databases. For example, material
specification or supplier information is stored for multiple users

MIS
To the managers, Management Information System is an implementation of the
organizational systems and procedures. To a programmer it is nothing but file
structures and file processing. However, it involves much more complexity.
The three components of MIS provide a more complete and focused definition,
where System suggests integration and holistic view, Information stands for
processed data, and Management is the ultimate user, the decision makers.
Management information system can thus be analyzed as follows −
Management
Management covers the planning, control, and administration of the operations of a
concern. The top management handles planning; the middle management
concentrates on controlling; and the lower management is concerned with actual
administration.
Information
Information, in MIS, means the processed data that helps the management in
planning, controlling and operations. Data means all the facts arising out of the
operations of the concern. Data is processed i.e. recorded, summarized, compared
and finally presented to the management in the form of MIS report.
System
Data is processed into information with the help of a system. A system is made up of
inputs, processing, output and feedback or control.
Thus MIS means a system for processing data in order to give proper information to
the management for performing its functions.
Definition
Management Information System or 'MIS' is a planned system of collecting, storing, and
disseminating data in the form of information needed to carry out the functions of
management.
Objectives of MIS
The goals of an MIS are to implement the organizational structure and dynamics of
the enterprise for the purpose of managing the organization in a better way and
capturing the potential of the information system for competitive advantage.
Following are the basic objectives of an MIS −
 Capturing Data − Capturing contextual data, or operational information that
will contribute in decision making from various internal and external sources of
organization.
 Processing Data − The captured data is processed into information needed
for planning, organizing, coordinating, directing and controlling functionalities
at strategic, tactical and operational level. Processing data means −
o making calculations with the data
o sorting data
o classifying data and
o summarizing data
 Information Storage − Information or processed data need to be stored for
future use.
 Information Retrieval − The system should be able to retrieve this
information from the storage as and when required by various users.
 Information Propagation − Information or the finished product of the MIS
should be circulated to its users periodically using the organizational network.
Characteristics of MIS
Following are the characteristics of an MIS −
 It should be based on a long-term planning.
 It should provide a holistic view of the dynamics and the structure of the
organization.
 It should work as a complete and comprehensive system covering all
interconnecting sub-systems within the organization.
 It should be planned in a top-down way, as the decision makers or the
management should actively take part and provide clear direction at the
development stage of the MIS.
 It should be based on need of strategic, operational and tactical information of
managers of an organization.
 It should also take care of exceptional situations by reporting such situations.
 It should be able to make forecasts and estimates, and generate advanced
information, thus providing a competitive advantage. Decision makers can
take actions on the basis of such predictions.
 It should create linkage between all sub-systems within the organization, so
that the decision makers can take the right decision based on an integrated
view.
 It should allow easy flow of information through various sub-systems, thus
avoiding redundancy and duplicity of data. It should simplify the operations
with as much practicability as possible.
 Although the MIS is an integrated, complete system, it should be made in such
a flexible way that it could be easily split into smaller sub-systems as and
when required.
 A central database is the backbone of a well-built MIS.
Characteristics of Computerized MIS
Following are the characteristics of a well-designed computerized MIS −
 It should be able to process data accurately and with high speed, using
various techniques like operations research, simulation, heuristics, etc.
 It should be able to collect, organize, manipulate, and update large amount of
raw data of both related and unrelated nature, coming from various internal
and external sources at different periods of time.
 It should provide real time information on ongoing events without any delay.
 It should support various output formats and follow latest rules and regulations
in practice.
 It should provide organized and relevant information for all levels of
management: strategic, operational, and tactical.
 It should aim at extreme flexibility in data storage and retrieval.
Nature and Scope of MIS
The following diagram shows the nature and scope of MIS −

Role of MIS

A management information system (MIS) plays an important role in

business organizations.
What is MIS role: There are many roles of MIS and some of the
important MIS role are discussed below:
1. Decision making
2. Coordination among the department
3. Finding out Problems
4. Comparison of Business Performance
5. Strategies for an Organization

Decision making
Management Information System (MIS) plays a significant role in the
decision-making process of any organization. In any organization, a
decision is made on the basis of relevant information which can be
retrieved from the MIS.

Coordination among the department

Management Information System satisfy multiple need of an
organization across the different functional department.

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 MIS, information will help in finding out the
solution to that problem.

Comparison of Business Performance

MIS store all past data and information in its Database. That why the
management information system is very useful to compare business
organization performance.

Strategies for an Organization

Today each business is running in a competitive market. An MIS
supports the organization to evolve appropriate strategies for the
business to assent in a competitive environment.

IMPACT OF THE MANAGEMENT INFORMATION SYSTEM

MIS plays a very important role in the organization; it creates an impact

on the organization’s functions, performance and productivity.

The impact of MIS on the functions is in its management with a good MIS
supports the management of marketing, finance, production and
personnel becomes more efficient. The tracking and monitoring of the
functional targets becomes easy. The functional managers are informed
about the progress, achievements and shortfalls in the activity and the
targets. The manager is kept alert by providing certain information
indicating and probable trends in the various aspects of business. This
helps in forecasting and long-term perspective planning. The manager’s
attention is bought to a situation which is expected in nature, inducing
him to take an action or a decision in the matter. Disciplined information
reporting system creates structure database and a knowledge base for all
the people in the organization. The information is available in such a form
that it can be used straight away by blending and analysis, saving the
manager’s valuable time.

The MIS creates another impact in the organization which relates to the
understanding of the business itself. The MIS begins with the definition of
data, entity and its attributes. It uses a dictionary of data, entity and
attributes, respectively, designed for information generation in the
organization. Since all the information systems use the dictionary, there is
common understanding of terms and terminology in the organization
bringing clarity in the communication and a similar understanding of an
event in the organization.

The MIS calls for a systematization of the business operations for an

effective system design. This leads to streaming of the operations which
complicates the system design. It improves the administration of the
business by bringing a discipline in its operations as everybody is required
to follow and use systems and procedures. This process brings a high
degree of professionalism in the business operations.

The goals and objectives of the MIS are the products of business goals and
objectives. It helps indirectly to pull the entire organization in one
direction towards the corporate goals and objectives by providing the
relevant information to the organization.

A well designed system with a focus on the manager makes an impact on

the managerial efficiency. The fund of information motivates an
enlightened manager to use a variety of tools of the management. It helps
him to resort to such exercises as experimentation and modelling. The use
of computers enables him to use the tools and techniques which are
impossible to use manually. The ready-made packages make this task
simple. The impact is on the managerial ability to perform. It improves
decision-making ability considerably high.

Since, the MIS work on the basic system such as transaction processing
and database, the drudgery of the clerical work is transferred to the
computerized system, relieving the human mind for better work. It will be
observed that lot of manpower is engaged in this activity in the
organization. Seventy (70) percent of the time is spent in recording,
searching, processing and communicating. This MIS has a direct impact on
this overhead. It creates information –based working culture in the
organization.

IMPORTANCE OF MIS
It goes without saying that all managerial functions are performed through
decision-making; for taking rational decision, timely and reliable
information is essential and is procured through a logical and well
structured method of information collecting, processing and disseminating
to decision makers. Such a method in the field of management is widely
known as MIS. In today’s world of ever increasing complexities of business
as well as business organization, in order to service and grow , must have
a properly planned, analyzed, designed and maintained MIS so that it
provides timely, reliable and useful information to enable the
management to take speedy and rational decisions.

MIS has assumed all the more important role in today’s environment
because a manager has to take decisions under two main challenges:

First, because of the liberalization and globalization, in which

organizations are required to compete not locally but globally, a manager
has to take quick decisions, otherwise his business will be taken away by
his competitors. This has further enhanced the necessity for such a
system.

Second, in this information age wherein information is doubling up every

two or three years, a manager has to process a large voluminous data;
failing which he may end up taking a strong decision that may prove to be
very costly to the company.

In such a situation managers must be equipped with some tools or a system,

which can assist them in their challenging role of decision-making. It is because
of the above cited reasons, that today MIS is considered to be of permanent
importance, sometimes regarded as the name centre of an organization. Such
system assist decision makers in organizations by providing information at
various stages of decision making and thus greatly help the organizations to
achieve their predetermined goals and objectives. On the other hand, the MIS
which is not adequately planned for analyzed, designed, implemented or is
poorly maintained may provide developed inaccurate, irrelevant or obsolete
information which may prove fatal for the organization. In other words,
organizations today just cannot survive and grow without properly planned,
designed, implemented and maintained MIS. It has been well understood that
MIS enables even small organizations to more than offset the economies of scale
enjoyed by their bigger competitors and thus helps in providing a competitive
edge over other organizations.

MIS and the User

Every person in the Organization is a user of the MIS. The people in the organization
operate at all levels in the hierarchy. A typical user is a clerk, an assistant, an officer, an
executive or a manager. Each of them has a specific task and a role play in the
management of business. The MIS caters to the needs of all persons.
The main task of a clerk is to search the data, make a statement and submit it to the higher
level. A clerk can use the MIS for a quick search and reporting the same to higher level. An
assistant has the task of collecting and organizing the data, and conducting a rudimentary
analysis of it. The MIS offers the user tools to perform these tasks. An officer has a role of
integrating the data from different systems and disciplines to analyze it and make a critical
comment if anything adverse is found.

In MIS offers the methods and facilities to integrate the data and report the same in a proper
format. An executive plays the role of a decision maker. He is in a position of responsibility
and accountability; a position of a planner and a decision maker. He is responsible for
achieving the targets and goals of the organization. The MIS provides facilities to analyze
the data and offers the decision support systems to perform the task of execution. The MIS
provides action-oriented information.
The manager has a position of responsibility and accountability for the business results. His
management role expands beyond his management function. The MIS provides information
in a structured or unstructured format for him to react. The MIS caters to his constant
changing needs of information. The user of the MIS is expected to be a rational person and
the design of the MIS is based on this assumption.
However, in reality the impact created on individuals by MIS is difficult to explain.
The recent major technological advances in communication such as Multimedia, Imaging,
Graphical User Interface (GUI) etc and the ability to access the data stored at different
locations on the variety hardware of platforms would make MIS more attractive and efficient
proposition. An intelligent user of information can demonstrate the ability of decision making,
since his manipulative capability is considerably increased, with the information now being
available on his desktop.

Through the MIS, the information can be used as a strategic weapon to counter the threats
to business, make businesses more competitive, and bring about the organizational
transformation through integration. A good MIS also make an organization seamless by
removing all the communication barriers.

Management as a control system

Planning, organizing, staffing, coordinating, directing and controlling are the 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 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.
Definition
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. Rober 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 this 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 of 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 top management would have standards
relating to the business performance, such as production, sales, inventory, quality, etc. The
operational management would have standard relating to the shift production, rejection,
down time, utilization of resources, and sale in 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 known as the critical success factors.
The system should recognize them and have controls instituted on them.

Feedback
The control system would be effective, if it continuously monitors the performance and send
the information to the control centre 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 on time
for corrective action.

Realistic
The system should be realistic so that the cost of control is far less than the benefits. The
standards 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 form the performance
standards on the principle of management by exception.

A standard is meaningful when it is achievable and provides a challenge to the achiever. A

management control system has a set of objectives, standards to measure, a feedback
mechanism and an action centre 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 be changed with ease so
that the impact of changed environments is handled effectively.

MIS - A Support to the Management

The management process is executed through a variety of decisions taken at each step of planning,
organizing, staffing, directing coordinating and control. If the management is able to spell out the
decisions required to be taken, the MIS can be designed suitably. The decisions required to be taken
in these steps are tabulated in Table below.

Table: Decisions in Management

Steps in Management Decision

Planning A selection from various alternatives - strategies, resources,

methods, etc.

Organization A selection of a combination out of several combinations of the

goals, people, resources, method and authority.

Staffing Providing a proper manpower complement.

Directing Choosing a method from the various methods of directing the

efforts in the organization.

Coordinating Choice of the tools and the techniques for coordinating the efforts
for optimum results.

Controlling A selection of the exceptional conditions and the decision

 guidelines

The objective of the MIS is to provide information for a decision support in the process of
management. It should help in such a way that the business goals are achieved in the most efficient
manner. Since the decision making is not restricted to a particular level, the MIS is expected to
support all the levels of the management in conducting the business operations. Unless the MIS
becomes a management aid, it is not useful to the organization.

MIS - Development Process

In MIS, the information is recognized as a major resource like capital and time. If this
resource has to be managed well, it calls upon the management to plan for it and
control it, so that the information becomes a vital resource for the system.
 The management information system needs good planning.
 This system should deal with the management information not with data
processing alone.
 It should provide support for the management planning, decision-making and
action.
 It should provide support to the changing needs of business management.
Major challenges in MIS implementation are −
 Quantity, content and context of information − how much information and
exactly what should it describe.
 Nature of analysis and presentation − comprehensibility of information.
 Availability of information − frequency, contemporariness, on-demand or
routine, periodic or occasional, one-time info or repetitive in nature and so on
 Accuracy of information.
 Reliability of information.
 Security and Authentication of the system.
Planning for MIS
MIS design and development process has to address the following issues
successfully −
 There should be effective communication between the developers and users
of the system.
 There should be synchronization in understanding of management, processes
and IT among the users as well as the developers.
 Understanding of the information needs of managers from different functional
areas and combining these needs into a single integrated system.
 Creating a unified MIS covering the entire organization will lead to a more
economical, faster and more integrated system, however it will increase in
design complexity manifold.
 The MIS has to be interacting with the complex environment comprising all
other sub-systems in the overall information system of the organization. So, it
is extremely necessary to understand and define the requirements of MIS in
the context of the organization.
 It should keep pace with changes in environment, changing demands of the
customers and growing competition.
 It should utilize fast developing in IT capabilities in the best possible ways.
  Cost and time of installing such advanced IT-based systems is high, so there
should not be a need for frequent and major modifications.
 It should take care of not only the users i.e., the managers but also other
stakeholders like employees, customers and suppliers.
Once the organizational planning stage is over, the designer of the system should
take the following strategic decisions for the achievement of MIS goals and
objectives −
 Development Strategy − Example - an online, real-time batch.
 System Development Strategy − Designer selects an approach to system
development like operational verses functional, accounting verses analysis.
 Resources for the Development − Designer has to select resources.
Resources can be in-house verses external, customized or use of package.
 Manpower Composition − The staffs should have analysts, and programmers.
Information system planning essentially involves −
 Identification of the stage of information system in the organization.
 Identification of the application of organizational IS.
 Evolution of each of this application based on the established evolution
criteria.
 Establishing a priority ranking for these applications.
 Determining the optimum architecture of IS for serving the top priority
applications.

Information System Requirements

The following diagram illustrates a brief sketch of the process of information
requirement analysis −
The following three methodologies can be adopted to determine the requirements in
developing a management information system for any organization −
 Business Systems Planning (BSP) − this methodology is developed by IBM.
o It identifies the IS priorities of the organization and focuses on the way
data is maintained in the system.
o It uses data architecture supporting multiple applications.
o It defines data classes using different matrices to establish relationships
among the organization, its processes and data requirements.
 Critical Success Factor (CSF) − this methodology is developed by John
Rockart of MIT.
o It identifies the key business goals and strategies of each manager as
well as that of the business.
o Next, it looks for the critical success factors underlying these goals.
o Measure of CSF effectiveness becomes an input for defining the
information system requirements.
 End/Means (E/M) analysis − this methodology is developed by Wetherbe and
Davis at the University of Minnesota.
o It determines the effectiveness criteria for outputs and efficiency criteria
for the processes generating the outputs.
o At first it identifies the outputs or services provided by the business
processes.
o Then it describes the factors that make these outputs effective for the
user.
o Finally it selects the information needed to evaluate the effectiveness of
outputs
Information System Analysis and Design
System analysis and design follows the typical System/Software Design Life Cycle
(SDLC) as discussed in the previous chapter. It generally passes through the
following phases −

 Problem Definition
 Feasibility Study
 Systems Analysis
 System Design
 Detailed System Design
 Implementation
 Maintenance
In the analysis phase, the following techniques are commonly used −

 Data flow diagrams (DFD)

 Logic Modeling
 Data Modeling
 Rapid Application Development (RAD)
 Object Oriented Analysis (OOA)
Technology for Information Systems
The technology requirement for an information system can be categorized as −
 Devices
 Data center systems − It is the environment that provides processing, storage,
networking, management and the distribution of data within an enterprise.
 Enterprise software − These are software system like ERP, SCM, Human
Resource Management, etc. that fulfill the needs and objectives of the
organizations.
 IT services − It refers to the implementation and management of quality IT
services by IT service providers through people, process and information
technology. It often includes various process improvement frameworks and
methodologies like six sigma, TQM, and so on.
 Telecom services
System Test Planning and Execution
The system should be fully tested for errors before being fully operational.
The test plan should include for each test −

 Purpose
 Definition
 test inputs
 detailed specification of test procedure
 details of expected outputs
Each sub-system and all their components should be tested using various test
procedures and data to ensure that each component is working as it is intended.
The testing must include the users of the system to identify errors as well as get the
feedback.
System Operation
Before the system is in operation, the following issues should be taken care of −
 Data security, backup and recovery;
 Systems control;
 Testing of the system to ensure that it works bug-free in all expected business
situations;
 The hardware and software used should be able to deliver the expected
processing;
 The system capacity and expected response time should be maintained;
 The system should be well documented including;
o A user guide for inexperienced users,
o A user reference or operations manual for advanced users,
o A system reference manual describing system structures and
architecture.
Once the system is fully operational, it should be maintained throughout its working
life to resolve any glitches or difficulties faced in operation and minor modifications
might be made to overcome such situations.
Factors for Success and Failure
MIS development projects are high-risk, high-return projects. Following could be
stated as critical factors for success and failure in MIS development −
 It should cater to a specific, well-perceived business.
 The top management should be completely convinced, able and willing to
such a system. Ideally there should be a patron or a sponsor for the system in
the top management.
 All users including managers and other employees should be made an integral
part of the development, implementation, and use of the system.
 There should be an operational prototype of the system released as soon as
possible, to create interest among the users.
 There should be good support staff with necessary technical, business, and
interpersonal skills.
 The system should be simple, easy to understand without adding much
complexity. It is a best practice, not to add up an entity unless there is both a
use and user for it.
 It should be easy to use and navigate with high response time.
 The implementation process should follow a definite goal and time.
 All the users including the top management should be given proper training,
so that they have a good knowledge of the content and function of the system,
and can use it fully for various managerial activities such as reporting,
budgeting, controlling, planning, monitoring, etc.
 It must produce useful outputs to be used by all managers.
 The system should be well integrated into the management processes of
planning, decision-making, and monitoring.