Why we need conceptual design of Management Information System?

Answer 1

Management is a delicate system. Each decision made by management has the potential to bring big business or keep customers away.

If you do something simple like playing theme park tycoon (or any of them) you will see that all the pieces have to fit perfectly in order for the operation to run smoothly. Each decision that is made could be a potential time bomb. It all has to balance and if something is slightly out of line it could impact your business for a long period of time.

To study business gives you the tools to make the best decisions and to react quickly to the bad ones to alleviate the damage as soon as possible.

We have a bank here where I live. It is not a tiny bank because it has branches in 3 states, but neither is it a huge conglomerate. This bank decided not to take the bailout money that was being offered. The banks that did take it are trying to give it back so fast and this one small tiny bank is waving banners saying "No Bailout Money Needed". This banner reminds its customers that they are stable and their business is growing again.

Answer 2

Since the conceptual design sets the direction for the management information system (MIS). It is vital that managers participate seriously and heavily at this stage. Conceptual design is sometimes called feasibility design, gross design or high level design.

The conceptual design phase takes as input.

1. A crisp statement of a management information requirement and

2. a set of management objectives for the MIS

In the conceptual design stage that the alternative overall MIS designs are conceived and the best one is selected by the system analyst in consultation with the top management. The feasibility of meeting the management objectives for the MIS is assessed showing how the system will work at the high level is drawn. Therefore, conceptual design is also known as gross design; high level becomes the basis for the detailed MIS design.

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