MANAGEMENT INFORMATION SYSTEM NFORMATION
- 1. MANAGEMENT INFORMATION SYSTEMS UNIT-1 INTRODUCTION SYLLABUS: Definition of System–Information System – Management Information System - characteristics and Role of Management Information System - Information System Activities And Resources – Types of Information Systems – Managerial of Information Technology –Strategic Uses of Information Challenges Technology.
- 2. BASIC CONCEPTS • Data: raw facts – Alphanumeric, image, audio, and video • Information: collection of facts organized in such a way that they have additional value beyond the value of the facts themselves – Value of Information is directly linked to how it helps decision makers achieve their organization’s goals and can be measured • in time required to make a decision • Increased profits to the company
- 3. BASIC CONCEPTS • The process of transforming data information into • An information system:
- 4. Understanding Management, Information and System What is Management? • Planning, control, and administration of an organization. • Management is generally hierarchical: • Top managers handle planning; • Mid – career managers control; • And, junior managers administer. What is Information? • Processed data to support management functions • Processing – record, summarize, store, and retrieve. • Present in the required reporting format.
- 5. What is a System? (in the context of MIS) • An inputs – processing - output and feedback matrix. • Supports the processing of data into information. Objectives of MIS • MIS processes data to support the management functions. • MIS manages information system (IS) productively: • Competitive advantage created from using information maximally: • Capturing Data – collects the relevant data. • Processing Data – transforms data into information. • Information Storage – store the information securely. • Information Retrieval – easy retrieval by authorized users. • Information Propagation – nonstop access and updating.
- 7. Information System What is an Information System (IS)? • Aunified data and knowledge (soft) infrastructure. • Collect/retrieve, process, store, and dispense information. • Supports decision making and control. Uses of IS in the Organization • Facilitates analysis of problems; • Provides deep insight into complex subjects; • Supports creation of new products.
- 8. Book Structure • Framework of major areas: – Foundation Concepts – fundamental behavioral, technical, business, and managerial concepts about information systems – Information Technologies – major concepts, developments, and management issues in IT – Business Applications – major uses of IS for operations, management, and competitive advantage – Development Process – how an IS is planned, developed, and implemented to meet business opportunities – Management Challenges – effectively and ethically managing IT at the end-user, enterprise, and global levels of a business
- 9. Computer-Based Information Systems • Computer-based information system (CBIS): single set of hardware, software, databases, telecommunications, people, and procedures configured to collect, manipulate, store, and process data into information
- 10. Computer-Based Information Systems • CBIS components – Hardware: computer equipment used to perform input, processing, and output activities – Software: computer programs that govern the operation of the computer – Database: organized collection of facts and information – Telecommunications: electronic transmission of signals for communications – Networks: connect computers and equipment in a building, around the country, and around the world
- 11. • Information Data that has been put into a meaningful and useful context. Usually to help make a decision. • Management Information System A combination of computers and people that is used to provide information to aid in making decisions and managing a firm. • Information Technology (IT) Computer Technology (Hardware and Software) Processing and Storing Information Communication Technology Transmitting information What is MIS?
- 12. Why is MIS Important? • MIS affects all areas of business – Manufacturing – Accounting & Finance – Human resources – Marketing – Top management • Performance evaluations—expectations
- 13. Manufacturing Process Input of Raw Materials Output of Finished Products Environment Control by Management Control Signals Control Signals Feedback Signals Feedback Signals System Boundary Other Systems Example - A Manufacturing System
- 14. History of the Role of IS Data Processing Management Reporting Decision Support Strategic & End User Electronic Commerce 1950-1960 1960-1970 1970-1980 1980-1990 1990-2000 Electronic Data Processing - TPS Management Information Systems Decision Support Systems -Ad hoc Reports End User Computing Exec Info Sys Expert Systems SIS Electronic Business & Commerce -Internetworked E-Business & Commerce
- 15. Trends in ISs • Data Processing: 1950s – Transaction processing, record keeping, traditional accounting applications • Management Reporting: 1960s – MIS – predefined management reports for decision-making purposes • Decision Support: 1970s – DSS – interactive ad hoc support of the managerial decision- making process • Strategic and End User Support: 1980s – EUC, Executive Information Systems, Expert Strategic Information Systems • Electronic Business and E-Commerce: 1990s – 2000s Systems,
- 16. Trends in Information Systems
- 17. Manufacturing and Production Engineering & Research Accounting, Finance, and Management Suppliers and Other Business Partners Procurement, Distribution, and Logistics Advertising Sales Customer Service Consumer and Business Customers Company Boundary Intranets The Internet Extranets Extranets The Electronic Business
- 18. The Modern Concept of MIS – Handles the databases, – Provides computing facilities to the end user, – Gives decision making tools to the users, – And connects firms to organizations. MIS is concerned with how to use information.
- 19. The Modern Concept of MIS • Information is generated through data analysis. • Data analyses relies on many academic disciplines. – Management, Psychology, Human Behavior, Engineering etc. • Thus making MIS more effective and useful. • MIS is founded on the systems theory. • Offers solutions input - output flow challenges. • Using theories of communication. • An input – Process – Output systems without noise. • Ensures flow of information from a source to a destination. • Ablend of Management, Information and IT System.
- 20. THE ROLE OF MIS IN AN ORGANIZATION • MIS in an organization is similar to the heart in the body. • The information is the blood and MIS is the heart. Support to sub-systems • MIS works through a variety of systems, such as; • Query Systems, • Analysis Systems, • Modeling Systems, • And, Decision Support Systems. Support for Long term (Strategic) Planning • MIS helps long term planning in several ways, including; • Strategic Planning and Management Control, • Operational Control and Transaction Processing.
- 21. THE ROLE OF MIS IN AN ORGANIZATION Support for Transaction Processing • Answers queries on the data relating to transactions; • the status of a particular record, • and, references on a variety of documents. • Helps the junior management personnel by; • providing the operational data for planning, • scheduling and control, • supports decision making at the operations level, • and, corrects an out of control situation.
- 22. THE ROLE OF MIS IN AN ORGANIZATION Support for Short Term Planning • Helps the mid career managers in the following; • short them planning, • target setting and • and, controlling the business functions. • Helps the top managers in the following; • goal setting, • strategic planning and • evolving the business plans • and, the business plan implementation. • Supports information generation and communication. • Aids problem identification and sound decision making.
- 23. THE ROLE OF MIS IN AN ORGANIZATION MIS in Public Sector Organizations (PSOs) • PSOs are increasingly inundated with data and information. • PSOs need IS to support its various activities. Centralized Vs. Decentralized PISs • PISs need to cover eight main areas of responsibility: • information systems planning; • organizational structures and staffing; • data management; • computing and data management architecture; • information systems development; • information technology acquisition; • training, and technical support.
- 24. THE ROLE OF MIS IN AN ORGANIZATION Centralized Vs. Decentralized PISs • A centralized PIS may be efficiency, but difficult to manage. • A decentralized PIS spreads the tasks, but may be wasteful. • A mix of central and local action is considered most effective. MIS and Public Sector Accountability • The broad set of accountabilities in PSOs include: • Managerial accountability; • Political accountability; • And, Financial accountability
- 25. Major Roles of Information Systems Support of Strategic Advantage Support of Managerial Decision Making Support of Business Operations
- 26. Types of Information There are four main types of information, namely; • Descriptive information, • diagnostic information, • predictive information, and • prescriptive information.
- 27. Descriptive information • It tries to answer the question, what is happening? • It covers such information as: • Financial results and maintenance records; • And, Production records, product marketing, and test results. • Can help to secure other needed types of information. • Not enough for identifying and solving management problems.
- 28. Diagnostic information • Seeks to answer the question - what is wrong? • Can be used to define problems that develop in the business. • Can find an how to solve the problem (including doing nothing). • “What is” and “what ought to be” should be viewed together.
- 29. Predictive information • Seeks to answer the question - what would happen if.. • Generated from an analysis of possible future events. • Is exceedingly valuable with “desirable” outcomes. • Manager use predictive information to reduce risk and uncertainty. • Predictive models include; • budgeting techniques, • simulation models, • and other tools that business. measure expected changes in the
- 30. Prescriptive information • Seeks to answer the question- What should be done? • Not adequate for decision making. • Used with the goals and values of the manger for decision making.
- 31. Classes of Information Organizational information • Information required sub-units of an organization. • The same information may serve different uses. • Often stored in database for the users. Functional information • Used by the functional heads for administrative functioning. • Often function-specific, each unit can have its own. • Largely factual, statically focusing on specific task details. • Assessable by unit objectives, work design and responsibility.
- 32. Classes of Information Knowledge information • Compels the manager to think, decide and act. • Highlights the deviation norms and abnormal variations. • Supports the function of middle and top management. • Often presented graphically for quick grasp, E.g.: • Students population may be declining; • Or, market demand is falling. Decision-support information • Justifies a change or amendment of the existing decisions. • E.g., inspection report, demand forecast, etc. • Can be sourced internally and externally
- 33. Classes of Information Operational information • Required by operators and Junior managers. • Helps decisions that affect operations. • Determined internally, through the transaction processing. • Largely of short time span and focuses on the current status. Determining Information Requirement • Asking & interviewing – using mainly closed ended questions. • Using expert testimonies • Experiences from past decisions and problem solving.
- 34. Classification of Information Systems in Business
- 35. Classification of Information Systems in Business • Operation Support Systems – help run the daily business, but do not provide much information for managerial decision- making – Transaction Processing Systems – record & process daily transactions – Process Control Systems - monitor and control physical processes – Enterprise Collaboration Systems (Office Automation Systems) – enhance team and workgroup communications and productivity
- 36. Classification of Information Systems in Business • Management Support Systems – Management Information Systems – reports and displays for managers to help them make better business decisions – Decision Support Systems – direct computer support for decision-making – Executive Information Systems – critical information specifically for executives to make better decisions; not just a better MIS
- 37. Classification of Information Systems in Business • Other Categories of Information Systems – Expert Systems – expert advice for operational decisions – Knowledge Management Systems – support creation, organization, and dissemination of business knowledge – Strategic Information Systems – products, services, and processes advantage – Functional Business Systems – business functions apply IT to for strategic support basic – Cross-Functional Systems – integrate various roles and outputs into a variety of functions
- 38. Managerial Challenges of Information Technology • Challenges and Opportunities – Business/IT Challenges – Business/IT Developments – Business/IT Goals • Success and Failure with IT – Effectiveness – does it work? – Efficiency – how well does it work?
- 39. Managerial Challenges of Information Technology • Developing IS Solutions – an Information Systems is a Solution to a Business Problem – Investigate (Plan) – recognize the problem exists – Analyze – investigate the current system – Design – designing the new system – Implement – put the new system into effect – Maintain (Use) – use, monitor, and maintain the new system
- 40. Managerial Challenges of Information Technology • Challenges and Ethics of IT – what is improper, irresponsible, or harmful?
- 41. The Foundation for Business Processes
- 42. I. System Concepts: The Foundation for Business Processes Other System Characteristics Environment and Subsystems Interface – a shared boundary between systems Open (and Closed) Systems – open systems interact with other systems (closed systems do not interact with other systems) Adaptive Systems – have the ability to change themselves or their environment
- 43. II. Components of Information Systems
- 44. III. Information System Resources People Resources IS Specialists End Users Hardware Resources Machines – the computing devices themselves Media – where data is stored
- 45. III. Information System Resources Software Resources Programs – instructions that tell the computer what to do System Software – runs the computer Application Software – a particular use by end users Procedures – instructions on how to use the system
- 46. III. Information System Resources Data Resources Data – unorganized facts and figures Information – data organized so that it has value to the organization Network Resources Communications Media- the physical pathways over which signals travel Network Infrastructure – hardware, software, and data technologies needed to support communications networks
- 47. IV. Information System Activities Input of Data Resources Processing of Data into Information – organize, analyze, and manipulate data Output of Information Products – dissemination of information products to appropriate end users Storage of Data Resources Control of System Resources – monitoring feedback to assure the system meets its performance standards
- 48. V. Recognizing Information Systems People, Hardware, Software, Data, and Network Resources Types of Information Products Used Performance of Input, Processing, Output, Storage and ControlActivities
- 49. Strategic Uses of IT
- 50. Strategic Uses of IT • Organizations are now investing heavily in information systems and information technology. • However, there is a general dissatisfaction with the benefits that accrue from this investment. • Argues that information systems and technology can be centrally instrumental in achieving corporate goals but only where the organization has a clearly defined corporate and competitive strategy, and understands the information needs that underpin these strategies. • It demonstrates the interrelationships between strategy and information systems. • An effective strategy is not necessarily one that promises maximum efficiency or least total cost, but rather one that fits the needs of the organization and strives for consistency between the organization’s capabilities and the competitive advantage being sought by the organization. • The successful application of strategy in the contemporary global environment requires an organization to have an effective strategic management process. • In turn, an effective strategic management process increasingly depends on the effective application of advances in information technology.
- 51. Strategic Uses of IT • Firm-Level Strategy and Information Technology • Whatever its main product or service is, that’s its core competency decides its survival. • Successful companies use information technology to improve their core competencies by sharing information across business units. • They also use technology to expand their core competencies by using knowledge stored in their information systems.
- 52. Strategic Uses of IT • Industry-Level Strategy and Information Systems This is based on: – Competitive Forces and Network Economics – Information Partnerships IS Techniques to Gain CompetitiveAdvantage • Competitive advantage may be achieved with many techniques in business. • Information technology is one area that may provide several opportunities.
- 53. Other Strategic uses of IT