Management Information System- Concept of Information
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The document discusses the concept of information within the context of Management Information Systems, highlighting the difference between data and information, as well as its various characteristics and types. It outlines the sources, dimensions, and relevance of information in decision-making processes across different management levels. Additionally, it emphasizes the importance of assessing an organization's information needs for effective planning and strategy formulation.
Management Information System- Concept of Information
- 1. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Affiliated Institution of G.G.S.IP.U, Delhi BCOM(H) Management Information System 888307 Concept of Information By: Saguna Khajuria Assistant Professor
- 2. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Information Data Processed Information Data is a term used for raw figures, facts, symbols etc. Information is the second component in the term Management Information System. Information is defined as data that has been processed and used for inference purposes, argument or decision making.
- 3. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Characteristics of Information • Relevance • Accuracy • Completeness • Timeliness • Adequacy • Reliability • Validity • Redundancy • Quality • Impartiality • Mode & Format • Summarization
- 4. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Types of Information • Operational- Information used by lower level management for making day to day decisions. Eg: Outstanding orders from customers • Tactical- Information used by middle level management for short term planning. Eg: Sales target for second quarter • Strategic- Information required by top level management for making strategic decisions. Eg: Mergers & Acquisitions
- 5. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Sources of Information • External Sources – Government policies – Economic trends – Technological changes – Competitors activities – Customer reactions • Internal Sources – Sales forecast – Financial resources & plans – Availability of internal resources – Budget allocation & utilization
- 6. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Dimensions of Information • Economic dimensions- refers to the cost of information and its benefits • Business dimension-relates to the business angle of information and its value to the organization • Technical dimension- relates to the information gathering, summarizing, storing & retrieving aspects of information.
- 7. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Cost-Benefit Analysis of Information Identification of costs & benefits Evaluation of costs & benefits Select the appropriate information
- 8. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Assessing information needs of the organization • The nature of business function – Marketing functions – Finance functions – Production functions – Human resource management • Types of decision making – Structured decisions – Semi-structured decisions – Unstructured decisions
- 9. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Assessing information needs of the organization • Level of Management – Top level – Middle level – Lower level
- 10. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Relevance of Information in Decision Making Business Intelligence Design Strategy Choice Review Status reports Trend reports Exception report Adhoc enquiry report Statistical model Analytical tools Projections What-if analysis Evaluation of alternatives Feedback Decision making strategiesInformation required at each stage
- 11. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75