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Module 1 Basic Concepts of MIS

( Management Information System )

MIS - an Introduction

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Data is raw facts or observations about physical phenomena or business transactions, facts describing those events.Data is objective measurements of the attributes of entities.

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Data Versus Information

1200100

WestCharles Mann

79154 TM Shoes

Monthly Sales Report for West Region

Sales Rep: Charles MannEmp No. 79154Item Qty Sold PriceTM Shoes 1200 $100

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Information system generates information from data.

Information is processed data, converted into a meaningful and useful context for specific end users.

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Information is data subjected to value added process

Managers at all levels of the organisation require a steady flow of information for effective and efficient functioning.

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Qualities of InformationRelevantCompleteTimelyAccurateCost effectiveReliable ConciseClarity

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Attributes of Information Quality

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1) Time Dimension-Timeliness - Info should be provided when it is neededCurrency - should be up-to-date when it is providedFrequency – should be provided as often as neededTime Period – can be provided about past, present , and future time periods

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2) Content Dimension-Accuracy - Info should be free from errorsRelevance- should be related to the information needs of a specific recipient for a specific situationCompleteness – all the information that is needed should be provided Conciseness – Only the info that is needed should be provided

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3) Form Dimension-Clarity - Info should be provided in a form that is easy to understandDetail – Info can be provided in detail or summary formOrder – info can be arranged in a predetermined sequence Presentation – can be presented in narrative , numeric , graphic , or other formsMedia - Info can be provided in the form of printed paper documentation, video displays, or other media

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Information as a ResourceInformation Resource Management (IRM) is an approach to management based on the concept that information is an organizational resource.Features of Information:1) Information is seen as an organizational resource.2) Information comes from various sources- internal and external sources

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3) Information has a cost 4) Information has a return on investment5) It can be reused indefinitely6) The managerial cost for additional usage is low7) It is intangible8) It can be structured or unstructured

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A manager should know how to manage this important resource.

Computer-based Information Systems are excellent tools for collecting , storing , processing, and presenting information.

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What IS a system?A group of interrelated or interacting elements forming a unified whole, ORA group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process (dynamic system).Three basic interacting components: Input Processing (transformation process) Output

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SYSTEMSYSTEM

INPUT OUTPUTPROCESS

FEEDBACK

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Add Feedback and Control Loops..

And the system, now called a cybernetic system, becomes even more useful.

Self-monitoringSelf-regulating

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FUNCTIONS OF AN INFORMATION FUNCTIONS OF AN INFORMATION SYSTEMSYSTEM

INPUT OUTPUTPROCESS

FEEDBACK

INFORMATION SYSTEMINFORMATION SYSTEM

ENVIRONMENTENVIRONMENT

Customers SuppliersCustomers Suppliers

Regulatory Stockholders CompetitorsRegulatory Stockholders CompetitorsAgenciesAgencies

ORGANIZATIONORGANIZATION

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Other System CharacteristicsA system exists and functions in an environment containing other systems.Subsystem – a component of a larger system.Systems that share the same environment may be connected to one another through a shared boundary, or interface.Open versus closed system - A system that interacts with other systems in its environment is open systemAdaptive system – a system that has the ability to change itself or its environment in order to survive.

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Information system is an organised combination of people, hardware , software, communication networks and data resources

that collects , transforms and disseminates information in an organisation.

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Components or Resources of an INFORMATION System

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Resources of an Information System (Continued)

People Resources – people are required for the operation of all Information Systems

End Users IS Specialists – system analysts, programmers,

computer operatorsHardware Resources

Computer systems ( machine ) Peripherals

Software Resources System software Application software Procedures – operating instructions for people

who will use an IS

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Resources of an Information System (Continued)

Data ResourcesData resources are transformed by

information processing activities into information products for end users

Data resources are organized into databases that hold organized and processed data

Network ResourcesCommunication mediaNetwork support

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Information System ActivitiesThe basic information processing activities that occur in information systems are : Input, Processing, Output, Storage, and Control activities

1)Input of Data Resources – data about business transactions and other events must be captured and prepared for processing, involves data entry activities using user interfaces

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2) Processing of Data into Information- by data processing activities such as calculating, comparing, sorting, classifying, and summerizing

These activities organize, analyse, and manipulate data , thus converting them into information for end users

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Conversion of facts into meaningful information is known as data processing - a systematic sequence of operations on data

- Where the form is aggregated, manipulated and organised,

- The content is analysed & evaluated,- And it is placed in a proper context.

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3) Output of Information Products- information in various forms is transmitted to end users and made available to them in the output activity

Messages, reports, forms, graphic images, audio responses, paper documents, and multimedia are the general information products

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4) Storage of Data Resources- data and information are retained in an organized manner for later use.

Data is organised into fields, records, files, and databases.

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5) Control of System Performance- an information system should produce feedback about its input, processing, output, and storage activities.

This feedback must be monitored and evaluated to determine whether the system is meeting established performance standards.

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Information SystemImportant ingredient in developing competitive products and services that give an organization a strategic advantage in global market place.

Information Systems play a vital role in the business success of an enterprise.

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Towards a Definition of MIS

An Integrated, user-machine system for providing information to support -operations,- management, and -decision making functions

of an organizationDefinition by Gorden B.Davis

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MIS is :A Management support system that

produces - pre-specified reports, displays, and responses

on a periodic, exception, or demand basis.

Definition by James O’Brien

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SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCE OPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

APPROACHES TO INFO SYSTEMS

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

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Major Roles of IS

Top ManagementSupport CompetitiveAdvantage

Support Business

Decision Making

Support of Business Processes and Operations

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TYPES OF INFORMATION SYSTEMSTYPES OF INFORMATION SYSTEMS

DATA WORKERSDATA WORKERS

KIND OF SYSTEM GROUPS SERVEDKIND OF SYSTEM GROUPS SERVED

STRATEGIC LEVEL SENIOR STRATEGIC LEVEL SENIOR MANAGERSMANAGERS

MANAGEMENT LEVEL MIDDLE MANAGEMENT LEVEL MIDDLE MANAGERSMANAGERS

OPERATIONAL OPERATIONAL OPERATIONAL LEVEL OPERATIONAL LEVEL MANAGERS MANAGERS

KNOWLEDGE LEVEL KNOWLEDGE &KNOWLEDGE LEVEL KNOWLEDGE &

SALES & MANUFACTURING FINANCE ACCOUNTING HUMANSALES & MANUFACTURING FINANCE ACCOUNTING HUMAN RESOURCESRESOURCESMARKETINGMARKETING

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Major Roles of IS (continued)

Support Business Processes / Operations

Support Managerial Decision Making

Support Competitive & Strategic Advantage

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Trends in Information Systems

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MAJOR TYPES OF SYSTEMSEXECUTIVE SUPPORT SYSTEMS (ESS)DECISION SUPPORT SYSTEMS (DSS)MANAGEMENT INFORMATION SYSTEMS (MIS)KNOWLEDGE WORK SYSTEMS (KWS)OFFICE AUTOMATION SYSTEMS (OAS)TRANSACTION PROCESSING SYSTEMS (TPS)

*

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Types of Information Systems

EnterpriseCollaboration

Systems

ManagementInformation

Systems

ProcessControlSystems

TransactionProcessing

Systems

DecisionSupportSystems

ExecutiveInformation

Systems

OperationsSupportSystems

ManagementSupportSystems

InformationSystems

ProcessingProcessingBusinessBusiness

TransactionsTransactions

ControlControlof Industrialof IndustrialProcessesProcesses

Team andTeam andWorkgroupWorkgroup

CollaborationCollaboration

PrespecifiedPrespecifiedReportingReporting

for Managersfor Managers

InteractiveInteractiveDecisionDecisionSupportSupport

InformationInformationTailored forTailored forExecutivesExecutives

Support of

Support of

Busines

s

Busines

s

Operatio

ns

Operatio

ns

Support of

Support ofManagerial

Managerial

Decision Making

Decision Making

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Types of Information Systems

Operations Support SystemsTransaction processing systems

Batch processing systems – transaction data accumulate over time, processed periodically.

Real-time processing – data processed immediately after a transaction occurs.

Process Control Systems – monitor & control physical processes.

Enterprise Collaboration Systems

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Types of Information Systems (continued)

Management Support SystemsManagement Information Systems –

pre-specified reports & displays to support decision-making.

Decision Support Systems – provide interactive ad hoc support.

Executive Information Systems – critical information tailored to the information needs of executives.

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Types of Information Systems (continued)

Other ClassificationsExpert systems – expert adviceKnowledge management systems –

support the creation, organization, & dissemination of business knowledge

Functional business systems – support the basic business functions

Strategic information systems – strategic advantage

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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.

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As the problems of information management increase, new information technologies are evolved which provide tools such as – Decision support systems, Expert systems, AI, Transaction processing systems, Telecommunications, Networking, Office Automation System, Electronic mail, and Database management systems.