Module 1: Introduction to MIS 1

Management of Information System?

A management information system, or MIS, is a computer-based system that optimizes the
collection, transfer, and presentation of information throughout an organization by using an
integrated structure of databases and information fow.
A management information system (MI! is a system or process that pro"ides the information
necessary to manage an organization e#ecti"ely. MI and the information it generates are
generally considered essential components of prudent and reasonable business decisions.
An MI has been called a method, a function, an approach, a process, an organization, a system,
and a subsystem.
MIS Elements
Management $unctions
o %lanning
o &ontrolling
o 'ecision Ma(ing
Information ystem
Management Information
STEPS IN PLANNING
1. electing ob)ecti"es
*. Identifying acti"ities re+uired to achie"e the stipulated ob)ecti"es
,. 'escribing the resources or s(ills, or both, necessary to perform the acti"ities
-. 'e.ning the duration of each acti"ity to be underta(en
/. 'etermining the se+uence of the acti"ities
Te MIS !ersus te "ata Processing System
"ata #rocessing systems, or "P systems, are concerned with transaction handling and record-
(eeping, usually for a particular functional area.
Here are a few diferences between an MIS and a DP system0
1. 1he integrated database of an MI enables greater fe2ibility in meeting the information
needs of management.
*. An MI integrates the information fow between functional areas (accounting, mar(eting,
in"entory management, etc.!, whereas '% systems tend to support a single functional
area.
,. An MI caters to the information needs of all le"els of management, whereas '% systems
focus on the clerical and operational le"els.
-. Management3s information needs are supported on a timelier basis with an MI than they
are with a '% system. An MI, for e2ample, has online in+uiry capability for the immediate
generation of reports, whereas a '% system usually produces only scheduled reports.
$aracteristics of Management Information Systems
1hese are desirable characteristics of an MI0
1. An MI supports transaction handling and record (eeping.
*. An MI uses an integrated database and supports a "ariety of functional areas.
,. An MI pro"ides operational-, tactical-, and strategic-le"el managers with easy access to
timely but, for the most, structured information.
-. An MI is somewhat fe2ible and can be adapted to meet the changing information needs
of the organization.
/. An MI can boost system security by limiting access to authorized personnel.
Main Ty#es of %esources
1he manager manages ."e main types of resources0
%ersonnel
Material
Machines (including facilities and energy!
Money
Information (including data!
&at Managers "o
'espite the ob"ious di#erences that e2ist between management le"els and between
functional areas, all managers perform the same functions and play the same roles.
Management 'unctions. 4arly in this century, around 151-, the $rench management
theorist 6enri $ayol recognized that managers perform ."e ma)or management functions.
$irst, managers plan what they are to do. 1hen, they organize to meet the plan. 7e2t, they
sta# their organization with the necessary resources. 8ith the resources in place, they direct
them to e2ecute the plan. $inally, they control the resources (eeping them on course.
All managers, regardless of their le"el or functions area, perform these functions to some
degree, although perhaps with "arying emphasis.
Managerial %oles. 8ithin the past twenty-."e years the idea of managerial roles has
become more popular, 6enry Mintzberg, a professor at Mc9ill :ni"ersity in &anada, decide the
Management Information System
Module 1: Introduction to MIS *
$ayol3s functions did not tell the whole story. 6e de"eloped a more detailed framewor(
consisting of ten managerial roles that managers play, in"ol"ing interpersonal, informational
and decisional acti"ities.
Management S(ills
A successful manager should possess many s(ills, but two stand out as being basic -
communication and problem sol"ing. Managers communicate with their subordinates, their
superiors, other persons in other units of the .rm, as well as with persons outside the .rm.
1hey also sol"e problems by ma(ing changes to the .rm3s operations so that the .rm can
achie"e its ob)ecti"es.
$ommunication S(ills. Managers recei"e and transmit information in both written and oral
forms. 8ritten communications include reports, letter, memos, electronic mail, and
periodicals. ;ral communications occur during meetings, while using the telephone and "oice
mail, when ta(ing tours of facilities, and during business meals and social acti"ities.
Pro)lem*Sol!ing S(ills. 8e de.ne problem sol"ing as all of the acti"ities that lead to the
solution of a problem.
MANAGEMENT +N,&LE"GE
1he term literacy has been used to describe two types of (nowledge that are the (ey to use
the computer. ;ne (ind of (nowledge is computer literacy< the other is information literacy.
&omputer =iteracy. 1he (nowledge of the computer that is necessary to function in today3s
world is called computer literacy. 1his (nowledge includes an understanding of computer
terminology, a recognition of the strengths and wea(nesses of the computer, an ability to use
the computer (although not necessarily being a programmers!, and so on.
Information =iteracy. In addition to understanding the computer, the modern manager should
ha"e information literacy. Information literacy consists of understanding how to use
information at each step of the problem-sol"ing process, where that information can be
obtained, and how to share information with others.
Information literacy is not dependent on computer literacy. A manager can be information
literate but not computer literate. In fact, if one had to choose, information literacy is more
important. Ideally, howe"er, a manager should be both information literate and computer
literate.
$aracteristics of Information
1imeliness0 Information must reach the user in a timely manner, )ust when it is needed< not too
early, because by the time it is used it would be out-of-date< not too late because the user will
not be able to incorporate it into his>her decision ma(ing.
Appropriateness0 Information must be rele"ant to the person who is using it. It must be within
the sphere of his>her acti"ities so that it can be used to reduce uncertainty in his>her decision
ma(ing.
Accuracy0 Accuracy costs. 8e don3t always need 1??@ accurate information so long as we
(now the degree of accuracy it represents (eg0 A or - /@!. (Bemember the "alue of
information!.
&onciseness0 Information should always contain the minimum amount of detail that is
appropriate for the user. 1oo much detail causes information o"erload.
:nderstandability0 1he format and presentation of information are "ery important. ome
people prefer tabular information, whereas others may need it in a graphical form. Also the
use of colors enhances the understandability of what is presented.
T-E E.,L/TI,N ,' $,MP/TE%*0ASE" IN',%MATI,N S1STEMS
1he initial e#orts to apply the computer in the business area focused on data. 1hen came an
emphasis on information and decision support. 1oday, communication and consultation are
recei"ing the most attention.
Te Initial 'ocus on "ata
'uring the .rst half of the twentieth century, when punched-are and (eydri"en boo((eeping
machines were in their heyday, .rms generally ignored the information needs of managers. 1his
practice continued with the .rst computers, since they were restricted to accounting applications.
1he name gi"en to these early computer-based accounting applications was electronic data
processing (4'%!. 1he term 4'% is no longer popular, ha"ing been shortened to data processing
('%!. 8e use the term accounting information system (AI! to describe the system that processes
the .rm3s data. 1he AI produces some information as a byproduct of the accounting processes.
Te Ne2 'ocus on Information
In 15C-, a new generation of computing e+uipment was introduced that e2erted a strong infuence
on the manner in which computers were employed. 1he new computers were the .rst to use
silicon chip circuitry, and they o#ered opportunities for more processing power per dollar. 1he
concept of using the computer as a management information system, or MI, was promoted by
Management Information System
Module 1: Introduction to MIS ,
the computer manufacturers as the )usti.cation for upgrading to new e+uipment. 1he MI
concept recognized that computer applications should be implemented for the primary purpose of
producing management information. 1he concept was +uic(ly adopted by many of the larger
.rms.
1he road tra"eled by these pioneers was roc(y. Actual accomplishments seldom matched those
initially en"isioned. 1here were se"eral reasons for this shortfall0 a general lac( of computer
literacy among users, a general lac( of business literacy and an ignorance of the management
role on the part of information specialists, computing e+uipment that was both e2pensi"e and
limited by today3s standards, and so on. Dut one error in particular characterized the early
systems. 1hey were too ambitious. $irms belie"ed they could build giant information systems to
support all managers. ystem designs snowballed, and the tas( became unmanageable. ome
.rms stuc( it out, in"ested more resources, and e"entually de"eloped wor(able systems -
although more modest in size than originally pro)ected. ;ther .rms decided to scrap the entire
MI idea and retreated to '%.
Te %e!ised 'ocus on "ecision Su##ort
8hile many watched from the sidelines as .rms grappled with their giant MIs, some information
scientists at the Massachusetts Institute of 1echnology (MI1! formulated a di#erent approach.
1hese scientists were Michael . cott Morton, 9. Anthony 9orry, and %eter 9. 8. Eeen, and their
concept was named the decision support system ('!. A ' is an information-producing
system aimed at a particular problem that a manager could be located anywhere in the
organization - on any le"el and in any functional area.
$or the .rst few years of the ' era, there was a considerable argument concerning ' and
MI. 'id the ' o#er a new approach to computer use, and if so, howF 1hese arguments were
ne"er really settled, but the issue does not seem to be as critical today as it once was.
1he MI is intended to pro"ide problem-sol"ing information to a group of managers in a general
way, whereas the ' is intended to support a single manager in a speci.c way. 8e regard the
management information system (MI! as an information-producing system that supports a group
of managers who represent an organizational unit such as a management le"el or a functional
area.
T-E $/%%ENT ',$/S ,N $,MM/NI$ATI,N
'uring the time that the ' e"ol"ed, interest was also focused on another computer application -
oGce automation (;A!. ;A facilitates communication and increases producti"ity among
managers and oGce wor(ers through the use of electronic de"ices.
;A got its start in 15C-, when IDM announced its Magnetic 1ape>4lectric 1ypewriter (M1>1! - a
typewriter that could type words that had been recorded on magnetic tape. 1his automatic typing
operation led to the ;A application that is called word processing.
;Gce automation grew to include a wide "ariety of such applications as "ideo conferencing, "oice
mail, electronic mail, electronic calendaring, facsimile transmission, and des(top publishing. 8e
use the term "irtual oGce to describe all of the oGce automation applications. All of these
applications are intended to facilitate communication.
Te Potential 'ocus on $onsultation
1here is a mo"ement presently under way to apply arti.cial intelligence (AI! to business problems.
1he basic idea of AI is that the computer can be programmed to perform some of the same logical
reasoning tas(s as a human. A special class of AI, e2pert systems, is recei"ing the most attention.
An e2pert system is one that functions as a specialist in an area. $or e2ample, an e2pert system
can pro"ide some of the same assistance to a manager as would come from a management
consultant. ;ne limitation of an e2pert system is that it does not impro"e its intelligence o"er
time. A way to o"ercome this limitation is to use neural networ(s that are electronic and
mathematical analogs of the human brain. 8e use the term (nowledge-based systems to
represent all "arieties of systems that apply arti.cial intelligence to problem sol"ing.
1he 155?s saw selected organizations in"est hea"ily in (nowledge-based systems, and dramatic
results were reported. 6owe"er, recent reports re"eal that the accomplishments may not ha"e
been a dramatic as .rst thought. 1he future of (nowledge-based systems remains unclear.
A transaction #rocessing system (1%! is an information system that captures and processes
data about business transactions.
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Module 1: Introduction to MIS -
A management information system (MI! is an information system that pro"ides for
management-oriented reporting based on transaction processing and operations of the
organization.
A decision su##ort system ('! is an information system that either helps to identify decision
ma(ing opportunities or pro"ides information to help ma(e decisions.
An e3#ert system is an information system that captures the e2pertise of wor(ers and then
simulates that e2pertise to the bene.t of none2perts.
A communications and colla)oration system is an information system that enables more
e#ecti"e communications between wor(ers, partners, customers, and suppliers to enhance their
ability to collaborate.
An o4ce automation system is an information system that supports the wide range of business
oGce acti"ities that pro"ide for impro"ed wor( fow between wor(ers.
A sta(eolder is any person who has an interest in an e2isting or proposed information
system. ta(eholders can be technical or nontechnical wor(ers. 1hey may also include both
internal and e2ternal wor(ers.
Information 2or(ers are those wor(ers whose )obs in"ol"e the creation, collection,
processing, distribution, and use of information.
+no2ledge 2or(ers are a subset of information wor(ers whose responsibilities are based
on a specialized body of (nowledge.
System o2ners H an information systemIs sponsor and e2ecuti"e ad"ocate, usually responsible
for funding the pro)ect of de"eloping, operating, and maintaining the information system.
System users H a JcustomerK who will use or is a#ected by an information system on a regular
basis H capturing, "alidating, entering, responding to, storing, and e2changing data and
information.
Internal users
&lerical and ser"ice wor(ers
1echnical and professional sta#
uper"isors, middle managers, and e2ecuti"e managers
Bemote and mobile users (internal but disconnected!
42ternal users
System designer H a technical specialist who translates system usersI business re+uirements
and constraints into technical solution. he or he designs the computer databases, inputs,
outputs, screens, networ(s, and software that will meet the system usersI re+uirements.
System )uilders H a technical specialist who constructs information systems and components
based on the design speci.cations generated by the system designers.
Systems analyst H a specialist who studies the problems and needs of an organization to
determine how people, data, processes, and information technology can best accomplish
impro"ements for the business.
A #rogrammer5analyst (or analyst5#rogrammer! includes the responsibilities of
both the computer programmer and the systems analyst.
A )usiness analyst focuses on only the nontechnical aspects of systems analysis
and design.
Te Systems Analyst as a Pro)lem*Sol!er
1rue problem situations, either real or anticipated, that re+uire correcti"e action
;pportunities to impro"e a situation despite the absence of complaints
'irecti"es to change a situation regardless of whether anyone has complained about the
current situation
S(ills Needed )y te Systems Analyst
8or(ing (nowledge of information technology
&omputer programming e2perience and e2pertise
9eneral business (nowledge
9eneral problem-sol"ing s(ills
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Module 1: Introduction to MIS /
9ood interpersonal communication s(ills
9ood interpersonal relations s(ills
$le2ibility and adaptability
&haracter and ethics
Te Ten $ommandments of $om#uter Etics
1. 1hou shalt not use a computer to harm other people.
*. 1hou shalt not interfere with other peopleIs computer wor(.
,. 1hou shalt not snoop around in other peopleIs computer .les.
-. 1hou shalt not use a computer to steal.
/. 1hou shalt not use a computer to bear false witness.
C. 1hou shalt not copy or use proprietary software for which you ha"e not paid.
L. 1hou shalt not use other peopleIs computer resources without authorization or proper
compensation.
M. 1hou shalt not appropriate other peopleIs intellectual output.
5. 1hou shalt thin( about the social conse+uences of the program you are writing or the system
you are designing.
1?. 1hou shalt always use a computer in ways that insure consideration and respect for your
fellow human
Management Information System