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Management Information Systems
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Information systems
• It is an organized combination of people,hardware,software,communications networks, and data resources that collects , transforms , and disseminates information in an organization.
• A set of interrelated information technologies that work together to process, store, collect, and distribute information
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Management Information Systems (MIS)
• Management information system (MIS)• An MIS provides managers with information and
support for effective decision making, and provides feedback on daily operations
• Output, or reports, are usually generated through accumulation of transaction processing data
• Each MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization
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DefinitionsData
Raw facts such as an employee’s name and number of hours worked in a week, inventory part numbers or sales orders.
Information
A collection of facts organized in such a way that they have additional value beyond the value of the facts themselves.
DataInformation
$35,000 12 Units $12,000 J. Jones Western Region $100,000 100 Units
35 Units
Data Processing
Salesperson: J. Jones Sales Territory: Western Region Current Sales: 147 Units = $147,000
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Information Systems
An information system(IS) is typically considered to be a set of interrelated elements or components that collect(input), manipulate(processes), and disseminate (output) data and information and provide a feedback mechanism to meet an objective.
Definitions
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The Value of Information
• Accuracy • Timeliness• Accessibility• Engagement• Application• Rarity
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Characteristics of a Management Information System
• Provides reports with fixed and standard formats– Hard-copy and soft-copy reports
• Uses internal data stored in the computer system
• End users can develop custom reports• Requires formal requests from users
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– Objectives of Information Systems :• Essentially these can be seen as the benefits that an
organisation can achieve through the successful use of an Information System
• Efficient Operations– maximization of throughput with respect to the unit of
resource input– the organisation obtains maximum benefit with the
least waste from the resources it allocates to tasks• Effective Management
– the ability to produce the intended output in a satisfactory manner
– a measure of how well the products and/or services of an organisation meet customer needs
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Management of IS(Resources and Strategies)
Development of IS(Solutions to Business Problems)
Applications of IS(To Operations, Management and Strategic Advantages)
Technology of IS(Hardware , Software , Networks , and Data Management)
Foundation Concepts of IS(Fundamental Behavioral and Technical Concepts)
Major areas of Information Systems
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– Types of Computer-based Information Systems • Data Processing Systems
– accounts processing– routine product control– personnel
• Office Automation Systems :– document preparation and management– databases and associated software– email– diaries and schedulers– spreadsheets
• Management Information Systems– use data from data processing systems to produce
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summary information – generally simple statistical models– aggregate data, production, output, etc.
• Decision Support Systems :– extended MISs which incorporate more sophisticated
statistical and predictive models– allow “what-if” analysis and hypothesis testing– highly interactive, governed by user input
• Executive Information Systems :– can be further extensions of DSSs to allow development
of strategic modelling– can also be extended MISs which permit much higher
levels of aggregation of data– usually highly graphical, permitting access to a wide range
of information through a friendly user interface
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– Simple Classification of Information Systems• Informal Information Systems :
– evolving complex patterns of human behaviour– never formalized by the organisation– often vital to the effectiveness of communication within the
organisation and hence the effectiveness of the organisation itself
– “grapevine” can be negative and/or positive
• Manual Information Systems :– formalized procedures, not computer based, for production of
information within an organisation– Historically, prior to computers, all organizational information
systems operated in this way, with clerks
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processing the information. – Still many such systems through :
» organizational unwillingness to invest in new technology» development costs not balanced by business
advantage/productivity gains» specialist skills of staff cannot be replicated in
computerized system
• Computer-based Information Systems :– automated systems– use I.T.– Must often interface with some manual Information Systems – We are only really concerned with these, and we will focus
exclusively on these from now on.
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Information Systems
OperationsSupportSystems
ManagementSupportSystems
Support of business Operations
Support of ManagerialDecision Making
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INFORMATION TECHNOLOGY
Hardware
Software
Databases
Networks
Other related components
are used to buildINFORMATION SYSTEMS
Payroll System
Inventory System
Marketing System
Customer Service System
IS Vs IT
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Expanding Roles of IS1. Data Processing: 1950s-1960s
2. Management Reporting: 1960s-1970s
3. Decision support: 1970s-1980s
4. Strategic and End User Support: 1980s-1990s
5. Global Internetworking: 1990s-2000s
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Classification of IS
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Classification of ISInformation Systems
Operations Support System Management Support
System
Transaction processing systems
Process control systems
Office automation systems
Management information systems
Decision support systems
Executive information systems
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1. Operations support systems process data generated by business operations
Major categories are:
i) Transaction processing systems
ii) Process control systems
iii) Office automation systems
2. Management Support Systems provide information and support needed for effective decision making by managers
Major categories are
i) Management Information System
ii) Decision Support Systems
iii) Executive Information System
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1. Operations Support System
i) Transaction processing systems
• Process business exchanges• Maintain records about the exchanges• Handle routine, yet critical, tasks• Perform simple calculations
ii) Process control systems monitor and control industrial processes.
iii) Office automation systems automate office procedures and enhance office communications and productivity.
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2. Management support systems provide information and support needed for effective decision making by managers
Major categories are:
i) Management information systems
Routine information for routine decisions Operational efficiency Use transaction data as main input Databases integrate MIS in different functional areas
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ii) Decision Support System• Interactive support for non-routine decisions or problems• End-users are more involved in creating a DSS than an MIS
iii) Executive information systemsprovide critical information tailored to the information needs of executives
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Other categories
a) Expert systems
b) End user computing systems
c) Business information systems
d) Strategic information systems
a) Expert Systems are knowledge-based systems that provides expert advice and act as expert consultants to the users
b) End user computing systems support the direct, hands on use of computers by end users for operational and managerial applications
c) Business information systems support the operational and managerial applications of the basic business functions of a firm
d) Strategic information systems provide a firm which strategic products, services, and capabilities for competitive advantage
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Enterprise Resource Planning (ERP)
• Integrated programs that can manage a company’s entire set of business operations
• Coordinates planning, inventory control, production and ordering
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Information Systems Development
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IS as Discipline
IS is an interdisciplinary field influenced by Computer Science, Political Science, Psychology, Operations Research, Linguistics, Sociology, and Organizational Theory.
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Challenges
1. Workforce downsizing
2. Information overload
3. Employee mistrust
4. Difficult to built
5. Security breaches
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Opportunities
1. Enhanced global competitiveness2. Capture market opportunities3. Support corporate strategy4. Enhance worker productivity5. Improve quality of goods and services
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Conclusion
Information Systems are indispensable to the business, industry, academia and any organization to meet the future challenges