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
Definitions
Data
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.
Information
Data
$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
Definitions
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.
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
Major areas
of
Information
Systems
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)
– 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.
Support of business
Operations
Operations
Support
Systems
Information Systems
Management
Support
Systems
Support of Managerial
Decision Making
IS Vs IT
INFORMATION
TECHNOLOGY
Inventory
System
Hardware
Software
Databases
Networks
Other related
components
Payroll
System
are used to build
INFORMATION
SYSTEMS
Marketing
System
Customer
Service
System
Expanding Roles of IS
1. 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 IS
Information Systems
Operations Support
System
Transaction
processing
systems
Process control
systems
Management Support
System
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 systems
provide 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 competitiveness
2. Capture market opportunities
3. Support corporate strategy
4. Enhance worker productivity
5. Improve quality of goods and services
Conclusion
Information Systems are indispensable to the
business, industry, academia and any
organization to meet the future challenges