Management Information System

Definitions
Data Information Systems Information System Management Information system End user Diff types. Managerial end user.

Data
Data: - are raw facts or observations, typically about physical phenomena or business transactions. More specifically, data are objective measurements of the attributes (characteristics) of entities, such as people, places, things, and events.

Information
Information: - is processed data, which has been placed in a meaningful and useful context for an end user. Data is subjected to a value-added process (data processing or information processing) where:
Its form is aggregated, manipulated, and organized. Its content is analyzed and evaluated It is placed in a proper context for a human user

Information is data that has been processed into a form that is meaningful to the recipient and is of real or perceived value in current or prospective actions or decisions.

Data, Information, and Knowledge

Data: raw facts Information: collection of facts organized in such a way that they have value beyond the facts themselves Knowledge: awareness and understanding of a set of information and ways that information can be made useful to support a specific task or reach a decision

Data, Information, and Knowledge (continued)

Types of Data

System
A group of interrelated or interacting elements forming a unified whole. A group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process (dynamic system).

Components of a Dynamic System

Environment

Control Signals

Control

Feedback Signals

Input

Processing

Output

System Boundary Other systems

System Concepts
Environment

Feedback Signals Control Signals

Feedback Signals

Control by Management

Control Signals

Input of Raw Materials System Boundary

Manufacturing Process

Output of Finished Products

Other Systems

Components of System
Input Processing ( transformation ) Output Feedback Control System boundary Environment

System
Open system Closed system Sub system Adaptive system

Information system
An information system (IS) can be any organized combination of people, hardware, software, communications networks, and data resources that collect, transforms, and disseminate information in an organization

Components of an INFORMATION System

Components of an Information System (Continued)

IS Resources and Products

People Resources
Specialists: system analysts, programmers, operators End users : anyone else using the system

Hardware Resources
Machines: computers, video monitors, disks, printers, scanners Media: floppies, tapes, disks, plastic cards, paper forms, ... Software Resources system, application, procedures Programs: OS , spreadsheet programs, payroll programs , .... Procedures: data entry, error correction, paycheck distribution, ... Data Resources database, model base, knowledge base Product descriptions, customer records, inventory databases,...

Network resources
Communication media, network support, ...

A Business as a System
The community Competitors Management Control Feedback Information Systems Customers Stockholders

Government Agencies

Suppliers

Economic Resources: People Money Material Land Facilities Energy Information

Organizational Processes: Production Marketing Finance Personnel Other Processes

Goods and Services: Products Services Payments Contributions Information Other Effects

Input Financial Institutions

PROCESSING

Output Labor Unions

Stakeholders in the Business Environment

Major Roles of IS
Support Competitive Advantage
Support Business Decision Making

Support of Business Processes and Operations

IS in the E-Business Enterprise

Every business competes globally (whether they realize it or not) IS supports business operations through the use of:
Intranets Extranets Internet Other information technologies

IS in the E-Business Enterprise (contn)

Enterprise Collaboration Systems
Support communication, coordination, & collaboration.
Virtual teams

Electronic Commerce
Buying & selling, and marketing & servicing of products, services, & information.

Managerial challenges of information technology

Information systems can be mismanaged and misapplied so that they create both technological and business failure.
Top Five Reasons for Success
User involvement Executive management support Clear statement of requirements Proper planning Lack of executive support Realistic expectations Technological incompetence

Top Five Reasons for Failure

Lack of user input Incomplete requirements and specifications Changing requirements and specifications

In Summary, the IS Function

Is a major functional area of business. Is an important contributor to operational efficiency, employee productivity and morale, and customer service & satisfaction. Is a major source of information and support for decision making. Provides a strategic advantage in developing competitive products & services.

Types of Information Systems

Types of Information Systems

Operations Support Systems
Transaction processing systems
Batch transaction data accumulate over time, processed periodically. Real-time data processed immediately after a transaction occurs.

Process Control Systems monitor & control physical processes. Enterprise Collaboration Systems

Types of Information Systems (continued)

Management Support Systems Management Information Systems pre-specified reports & displays to support decision-making. Decision Support Systems provide interactive adhoc support. Executive Information Systems critical information tailored to the information needs of executives.

Types of Information Systems

Other Classifications
Expert systems expert advice Knowledge management systems support the creation, organization, & dissemination of business knowledge Functional business systems support the basic business functions Strategic information systems strategic advantage

Management Information systems

Management information system (MIS): an organized collection of people, procedures, software, databases, and devices that provides routine information to managers and decision makers Primary focus of an MIS is operational efficiency

Management Information systems

Is a integrated user-machine system for providing information to support the operations, management, analysis and decision-making functions in an organization.

Management Information Systems (continued)

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IS and MIS
When Information Systems are designed to provide accurate, timely and relevant information needed for effective decision making by managers, they are called Management Information System.

Objective of MIS
Deliver the right information to the right people, at the right time, with the right form. MIS should improve the workers productivity. Who has what information about whom and when, where, and how will all be decided in the process of building an information system.

Characteristics of MIS
Comprehensive Integrated Coordinated Transformation of data into information Relevant information Conformation with managers styles and characteristics Selective sharing of data Feedback- Cost/benefit, supply of relevant and timely information and systemic failure

Misconceptions
MIS is a computerized information system More data lead to effective decision making Managers know their all information needs Managers do not have to understand how MIS works

Need for MIS

Decision making Strategic planning Management control Operational planning and control Provide managers with information Regular, routine operations Control, organize and plan better

Decision Support Systems

Decision support system (DSS): an organized collection of people, procedures, software, databases, and devices used to support problem-specific decision making Focus of a DSS is on decision-making effectiveness

Specialized Business Information Systems

Knowledge management systems (KMSs): an organized collection of people, procedures, software, databases, and devices to create, store, share, and use the organizations knowledge and experience Artificial intelligence (AI): field in which the computer system takes on the characteristics of human intelligence

Information Management vs. Knowledge Management

Information management can be described as delivering the right information to the right people at the right time with the right form.
Knowledge management can be illustrated as getting the right people to have the right conversation at the right time.

Expert Systems
Give the computer the ability to make suggestions and act like an expert in a particular field Allow organizations to capture and use the wisdom of experts and specialists The knowledge base contains the collection of data, rules, procedures, and relationships that must be followed to achieve value or the proper outcome

Trends In Information system

Expanding Roles of Information Systems

1950s-1960s: Data Processing
electronic data processing systems
Purpose: transaction processing, record keeping, traditional accounting

1960s-1970s: Management reporting

Management Information Systems
Purpose:mgt. reports for pre-specified information to support decision making

1970s-1980s: Decision Support

Decision Support Systems
Purpose: Interactive ad hoc support of the managerial decision process Improving and customising decision making

Expanding Roles of Information Systems (cont)

1980s-1990s: Strategic and End User Support

End User Computing Systems: direct productivity support Executive Information Systems:Critical Information Expert Systems: Knowledge based expert advise for end users Strategic Information Systems: for competitive advantage Purpose; Promoting survival and prosperity of organisation

1990s 2000s :

Global internetworking

Internetworked information systems for end-user, enterprise, and inter-organizational computing, collaboration, including global operations and management on the internet and other interconnected enterprise and global networks.
OBrien p 31

INFORMATION SYSTEMS ( IS / MIS)

ORGANIZATIONS

TECHNOLOGY

INFORMATION SYSTEMS

MANAGEMENT

FUNCTIONS OF AN INFORMATION SYSTEM (General Systems Model)

ENVIRONMENT
Customers ORGANIZATION INFORMATION SYSTEM
INPUT PROCESS OUTPUT

Suppliers

FEEDBACK

Regulatory Agencies
Dr. Chen, Information Age

Stockholders

Competitors
TM -42

Information Systems in the Functional Areas of Business

Finance and accounting Sales and marketing Manufacturing Human resource management Legal information systems

Functional Perspectives of MIS

Financial MIS Will integrate information from multiple sources Functions
Costing P&L reporting Auditing Funds management

Functional Perspectives of MIS

Manufacturing Design and Engineering Master Production Scheduling Inventory Control Materials Planning Manufacturing and Process Control Quality Control

Functional Perspectives of MIS

Marketing Market research
Web-based market research

Pricing

Functional Perspectives of MIS

Transportation and Logistics Route and schedule optimization Human Resources Accounting

Information Systems in Industry

Airline industry Investment firms Banks Transportation industry Publishing companies Healthcare organizations Retail companies Power management and utility companies Professional services

Information systems in the Company

Marketing
sales marketing promotion price setting new products orders

Production
production planning purchasing distribution engineering operations stock management quality control

Finances
budgetting general ledger billing analytical bookkeeping financial operations A/C payable A/C receivable

Personel
human resources payroll cost estimations applications contracts training

Global Challenges in Information Systems

Cultural challenges Language challenges Time and distance challenges Infrastructure challenges Currency challenges Product and service challenges Technology transfer issues State, regional, and national laws Trade agreements

Electronic Banking
account status exchange rates economic information bank transfers order checks reports batch payments
Security via magnetic cards, password , control totals

Hospital Information Systems

patient registration laboratory management radiology medical files pharmacy stock management and purchasing human resources and scheduling billing and A/C receivable book keeping operation theater

Other Applications
Transport
just in time routing shipping

Insurance Tourism Department stores