Management Information Systems
Topics
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Information Systems
Evolution & Types of Information Systems
MIS, DSS, ESS
Expert System
The concept of Data and Information
SDLC (System development Life Cycle)
Structured Analysis Design and
Implementation.
Raw facts of Information Systems
• People, hardware, software, data, network
resources, and organization.
• Information products that are produced.
• The way input, processing, output,
storage, and control activities performed.
Information Systems
• Information system can be defined as an
organizational and management solution, based
on information and communication technology,
to a challenge posed by the environment.
• Information systems can be defined technically
as a set of interrelated components that collect,
process, store, retrieve, and distribute
information to support communication, decision
making, co-ordination and control, problem
solving, negotiation and even socialization in an
organization.
Component of IS
What the system tries to accomplish
Information
Goals
What the system
tries to accomplish
How work is
performed by people
and technology
Work
Practices
People
Information
Technology
Formatted Text,
data, pictures, sound
People who handle
data, make
decisions
Hardware and
software that
process data
Therefore…
An information system is
“
an integrated man/machine system for providing
information to support operations, management and
decision making in an organization. The system is
composed of HW, SW, manual procedures, management
and decision models”
OR
“
IS can be any organized combination of people,
hardware, software, communication networks, and data
resources that stores and retrieve, transforms, and
disseminates information in an organization”
The three fundamental roles of IS
in Business
• Support of its business processes and
operations.
• Support of decision making by its
employees and managers.
• Support of its strategies for competitive
advantage.
– Objectives of Information Systems :
• Essentially these can be seen as the benefits that an
organization can achieve through the successful use of an
Information System
• Efficient Operations
– maximization of throughput with respect to the unit of resource
input
– the organization 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
organization meet customer needs
• Competitive Advantage
– first use I.T. to produce information to make the operational and
management activities of the business efficient and effective
(as above)
– next use information in new and innovative ways to improve
business performance, cut costs, etc. to develop an advantage
in comparison to competitors
• Long-Term Goals
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Survival
Profitability
Expansion
Market Share
Customer Satisfaction
Employee Satisfaction
Evolution of IS
• Data processing: 1950s-1960s (Role of IS
was simple: transaction processing, record
keeping, accounting, and other EDP
applications.)
• Management Reporting: 1960s-1970s
(MIS role was added- Management
Reports).
• Decision Support: 1970s-1980s (Decision
support systems)
• Strategic and End user support: 1980s1990s (End user computing systems,
Executive Information systems, Expert
systems, Strategic Information System)
• Electronic Business and Commerce
:1990’s-2000s (Internet based e-business
and e-commerce systems- internet,
intranet and extranet)
Types of IS
Operations and Management classifications of IS
Information Systems
Operation Support
Systems
Transaction
Processing
Systems
Process
Control
Systems
Management Support
Systems
Enterprise
Collaboration
System
MIS
DSS
ESS
Management Information Systems
• When information system applications
focus on providing information and support
for effective decision making by managers,
they are called management support
systems.
• Management Information systems (MIS)
provide information in form of reports and
displays to managers and many business
professionals.
Management Information System (MIS):
Management level
• Inputs: High volume data
• Processing: Simple statistical models
• Outputs: Summary reports
• Users: Middle managers
Example: Sales Result
• Decision-Support Systems (DSS)
– As MIS, these serve the needs of the management
level of the organisation
– Focus on helping managers make decisions that are
semi-structured, unique, or rapidly changing, and not
easily specified in advance
– Use internal information from TPS and MIS, but also
information from external sources
– Greater analytical power than other systems,
incorporate modelling tools, aggregative and analysis
tools, and support what-if scenarios
– Must provide user-friendly, interactive tools
• Expert Systems: Knowledge-based systems
that provide expert advice and act as expert
consultant to users.
• Performs tasks that would be done by a human.
• Example Medical Diagnostic System
• Some Expert systems are empowered to make
decisions and take actions. Example ES that
monitors inventory levels for grocery store.
The concept of Data and
Information
• The word data is originated from datum.
• Data are raw facts or observations,
typically about physical phenomena or
business transactions.
• Information can be defined as data that
have been converted into a meaningful
and useful context for specific end users.
The Information Systems
Development Life-Cycle (SDLC)
To help create successful information system,
the SDLC was developed. The SDLC is the
organized way to build information system.
–Feasibility Study
–Systems Investigation
–Systems Analysis
–Systems Design
–Implementation
–Review & Maintenance
SDLC (System Development Life Cycle)
Assignment
1. How can information Systems support a
company’s business processes and
decision making, and give it a
competitive advantage? Give examples
to illustrate your answer.
2. How do manager take decisions? How is
decision making process linked to
operation support systems, like
Transaction processing systems etc?