Management Information Systems

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

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

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

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

The Value of Information

• Accuracy • Timeliness• Accessibility• Engagement• Application• Rarity

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

– 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

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

– 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

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

– 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

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.

Information Systems

OperationsSupportSystems

ManagementSupportSystems

Support of business Operations

Support of ManagerialDecision Making

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

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

Classification of IS

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

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

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.

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

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

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

Enterprise Resource Planning (ERP)

• Integrated programs that can manage a company’s entire set of business operations

• Coordinates planning, inventory control, production and ordering

Information Systems Development

IS as Discipline

IS is an interdisciplinary field influenced by Computer Science, Political Science, Psychology, Operations Research, Linguistics, Sociology, and Organizational Theory.

Challenges

1. Workforce downsizing

2. Information overload

3. Employee mistrust

4. Difficult to built

5. Security breaches

Opportunities

1. Enhanced global competitiveness2. Capture market opportunities3. Support corporate strategy4. Enhance worker productivity5. Improve quality of goods and services

Conclusion

Information Systems are indispensable to the business, industry, academia and any organization to meet the future challenges