MANAGEMENT INFORMATION SYSTEM
EAK362/2
SUBJECT OBJECTIVE
To enable students to understand basic information technology concepts and
participate in developing information systems solutions to business problems.
To assist students to understand the fundamental concepts of real-world
information systems and to demonstrate the potential advantages of state-ofthe-art information technology applications in organizational.
SUBJECT SYNOPSIS
The foundations of information systems. Information management and its
strategic role in organizations. The technical foundations of information
systems; elements of information processing and the telecommunication. The
contemporary tools, techniques and approaches used to build information
systems.
COURSE CONTENT
•
Management information systems (MIS); challenges and opportunities, the
strategic role of information systems in organizations, and business
processes
•
Management of information and decision making; ethical and social impact of
information systems.
•
Computers and information processing; information systems software, and
managing data resources
•
Telecommunications and the internet networking, redesigning the
organization with information systems and ensuring quality with information
systems. Managing knowledge and enhancing management decision making.
Controlling information systems and managing international information
systems.
REFERENCE BOOKS
Kenneth C.L. and Jane P.L., 1998. Management Information Systems: New Approaches to
Organization and Technology, Fifth Edition, Prentice Hall.
Sarah, E., Sawyer and Stacey, C., 1998, Management Information Systems for the Information
Age, Irwin/McGraw-Hill, Boston, Massachusetts, ISBN: 0-07-025465-6.
Post, G.V. and David L.A., 1997, Management Information Systems: Solving Business Problems
with Information Technology, Irwin/McGraw Hill, Illinois.
EAK 362 MIS (LECTURE 1)
Introduction to
Information Systems
Information Concepts (1)

Data vs. Information

Data



Raw facts
Distinct pieces of information, usually formatted
in a special way
Information

A collection of facts organized in such a way
that they have additional value beyond the
value of the facts themselves
Examples

Data – thermometer readings of
temperature taken every hour:
16.0, 17.0, 16.0, 18.5, 17.0,15.5….
Transformation

Information – today’s high: 18.5
today’s low: 15.5
Types of Data
Data
Represented by
Alphanumeric data
Numbers, letters, and other characters
Image data
Graphic images or pictures
Audio data
Sound, noise, tones
Video data
Moving images or pictures
Data  Information
Data
Transformation
Information
Characteristics of Valuable
Information











accurate,
complete,
economical,
flexible,
reliable,
relevant,
simple,
timely,
verifiable,
accessible,
secure
Example: Health Information

You want the information about you in a
health information system to be:





As accurate as possible (e.g. your age, sex)
As complete as possible
Relevant
To be reliable
Should be available in a timely manner (e.g.
information about your drug allergies are
available before your operation!)
System

Definition


A set of elements or components that
interact to accomplish goals
A combination of components working
together
Example of a System with
sub-components
Customer
Maintenance
Component
Order Entry
Component
Customer Support System
Catalog
Maintenance
Component
Order Fulfillment
Component
System ‘Discussion’
(1) Refers to a combination of components working together.
For example, a computer system includes both hardware
and software. A Windows system is a personal computer
running the Windows operating system. A desktop
publishing system is a computer running desktop
publishing software.
(2) Short for computer system.
(3) Short for operating system.
(4) An organization or methodology. The binary numbering
system, for instance, is a way to count using only two
digits
System Elements



Inputs
Processing mechanisms
Outputs
System Example
Elements
System
Inputs
Movie
Actors, director,
staff, sets,
equipment
Processing
elements
Filming,
editing,
special
effects,
distribution
Goal
Outputs
Finished film
delivered to
movie studio
Entertaining
movie, film
awards,
profits
System Components and
Concepts

System boundary


Defines the system and distinguishes it from
everything else
System types



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Simple vs. complex
Open vs. closed
Stable vs. dynamic
Adaptive vs. non-adaptive
Permanent vs. temporary
System Performance and
Standards

Efficiency


Effectiveness


A measure of what is produced divided by what is
consumed (eg. Efficiency of a motor is the energy
produced divided by what is consumed)
A measure of the extent to which a system
achieves its goals
System performance standard

A specific objective of the system
Figure 1
Figure 1.5b
System Variables and
Parameters

System variable



A quantity or item that can be controlled
by the decision maker
E.g. the price a company charges for a
product
System parameter


A value or quantity that cannot be
controlled by the decision maker
E.g., cost of a raw material
Modeling a System

Model


An abstraction or an approximation that is
used to represent reality
Types of models

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Narrative (aka descriptive)
Physical
Schematic
Mathematical
Next slide
Why do we need models?



Make understanding complex systems
easier (simplifies)
Can be used to design – make models
of new systems so can refine them
Makes communication about systems
easier (e.g. a picture can communicate
a thousand words)
Information System (IS)

Definition
 A set of interrelated elements or components that collect
(input), manipulate (process), and disseminate (output) data
and information and provide a feedback mechanism to meet
an objective
 (IS)
Pronounced as separate letters, and short for
Information Systems or Information Services. For many
companies, IS is the name of the department responsible for
computers, networking and data management. Other
companies refer to the department as IT (Information
Technology) and MIS (Management Information Services).
Activities of an IS
Environment
Organisation
Input
Processing
Feedback
Output
Components of an IS
External Environment
People
Organisation
Information
System
Technology
Input, Processing, Output,

Input
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Processing

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The activity of gathering and capturing data
Whatever goes into the computer
Converting or transforming data into useful
outputs
Output


Useful information, usually in the form of
documents and/or reports
Anything that comes out of a computer
Input ‘Discussion’
(n) Whatever goes into the computer. Input can take
a variety of forms, from commands you enter on a
keyboard to data from another computer or
device. A device that feeds data into a computer,
such as a keyboard or mouse, is called an input
device.
(v) The act of entering data into a computer
Output ‘Discussion’
(n) Anything that comes out of a computer.
Output can be meaningful information or
gibberish, and it can appear in a variety of
forms -- as binary numbers, as characters, as
pictures, and as printed pages. Output
devices include display screens,
loudspeakers, and printers.
(v) To give out. For example, display screens
output images, printers output print, and
loudspeakers output sounds.
Feedback

Feedback


Output that is used to make changes to
input or processing activities
Forecasting


A proactive approach to feedback
Use for estimating future sales or inventory
needs
Manual vs. Computerized
Systems

Manual systems still widely used


Computerized systems


E.g., some investment analysts manual draw
charts and trend lines to assist them in making
investment decisions
E.g., the above trends lines can be drawn by
computer
Evolution


Many computerized system began as manual
systems
E.g., directory assistance (“911”)
Computer-based Information
Systems

A CBIS is composed of…
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Hardware
Software
Databases
Telecommunications
People
Procedures
Together they are…

Configured to collect, manipulate, store, and
process data into information
Parts of a CBIS

Five parts
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Hardware
Software
Database
Telecommunications
Networks
Parts of a CBIS

Five parts

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Hardware
Software
Database
Telecommunications
Networks
Hardware

Hardware
 Computer equipment used to perform
input, processing, and output activities
 The objects that you can actually touch,
like disks, disk drives, display screens,
keyboards, printers, boards, and chips.
Hardware ‘Discussion’
Hardware refers to objects that you can actually
touch, like disks, disk drives, display screens,
keyboards, printers, boards, and chips. In contrast,
software is untouchable. Software exists as ideas,
concepts, and symbols, but it has no substance.
Books provide a useful analogy. The pages and the
ink are the hardware, while the words, sentences,
paragraphs, and the overall meaning are the software.
A computer without software is like a book full of blank
pages -- you need software to make the computer
useful just as you need words to make a book
meaningful.
Parts of a CBIS

Five parts





Hardware
Software
Database
Telecommunications
Networks
Software

Software
 Computer programs that
govern/determine/control the operation of
the computer
 Computer instructions or data
Software ‘Discussion’ (1)
Software is computer instructions or data.
Anything that can be stored electronically is
software. The storage devices and display
devices are hardware.
The terms software and hardware are used
as both nouns and adjectives. For example, you
can say: "The problem lies in the software,"
meaning that there is a problem with the
program or data, not with the computer itself.
You can also say: "It's a software problem.“
Software ‘Discussion’ (2)
The distinction between software and hardware is
sometimes confusing because they are so integrally
linked. Clearly, when you purchase a program, you are
buying software. But to buy the software, you need to
buy the disk (hardware) on which the software is
recorded.
Software is often divided into two categories.
Systems software includes the operating system and
all the utilities that enable the computer to function.
Applications software includes programs that do real
work for users. For example, word processors,
spreadsheets, and database management systems fall
under the category of applications software.
Parts of a CBIS

Five parts

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


Hardware
Software
Database
Telecommunications
Networks
Database

Database
 An organized collection of facts and
information
 A collection of information organized in
such a way that a computer program can
quickly select desired pieces of data
Database ‘Discussion’ (1)
A database is a collection of information organized
in such a way that a computer program can quickly
select desired pieces of data.
You can think of a database as an electronic filing
system. Traditional databases are organized by fields,
records, and files. A field is a single piece of
information; a record is one complete set of fields; and
a file is a collection of records. For example, a
telephone book is analogous to a file. It contains a list
of records, each of which consists of three fields: name,
address, and telephone number.
Database ‘Discussion’ (2)
An alternative concept in database design is known
as Hypertext. In a Hypertext database, any object,
whether it be a piece of text, a picture, or a film, can be
linked to any other object. Hypertext databases are
particularly useful for organizing large amounts of
disparate information, but they are not designed for
numerical analysis.
To access information from a database, you need a
database management system (DBMS). This is a
collection of programs that enables you to enter,
organize, and select data in a database.
Database ‘Discussion’ (3)
Parts of a CBIS
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Five parts
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Hardware
Software
Database
Telecommunications
Networks
Telecommunications

Telecommunications

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The electronic transmission of signals for
communications; enables organizations to
link computer systems into effective
networks
Refers to all types of data transmission,
from voice to video
Parts of a CBIS

Five parts





Hardware
Software
Database
Telecommunications
Networks
Networks

Network


Used to connect computers and computer
equipment in a building, around the
country, across the world, to enable
electronic communications
A group of two or more computer systems
linked together
Network ‘Discussion’ (1)
There are many types of computer networks,
including:
local-area networks (LANs) : The computers
are
geographically close together (that is, in
the same building).
wide-area networks (WANs) : The computers
are farther apart and are connected by
telephone lines or radio waves.
Network ‘Discussion’ (2)
In addition to these types, the following characteristics are also
used to categorize different types of networks:
topology : The geometric arrangement of a computer system.
Common topologies include a bus, star, and ring.
protocol : The protocol defines a common set of rules and
signals that computers on the network use to communicate.
One of the most popular protocols for LANs is called
Ethernet. Another popular LAN protocol for PCs is the IBM
token-ring network .
architecture : Networks can be broadly classified as using
either a peer-to-peer or client/server architecture.
Network ‘Discussion’ (3)
Computers on a network are sometimes called nodes.
Computers and devices that allocate resources for a
network are called servers.
Network ‘Discussion’ (4)
Internet and Intranet

Internet

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The world’s largest telecommunications network
A network of networks
Free exchange of information
A global network connecting millions of
computers.
Intranet

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A network that uses Internet technology within
an organization
A network belonging to an organization
People and Procedures

People

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The most important element in most
computer-based information systems
Includes people who manage, run,
program, and maintain the system
E.g., IT professionals (you!)
Procedures

Includes the strategies, policies, methods,
and rules for using the CBIS
Business Information Systems

Types
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Transaction processing systems
E-commerce systems
Management information systems
Decision support systems
Expert systems
Transactions Processing
Systems

Transaction

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
Any business-related exchange
E.g., generating a weekly payroll
Transaction processing system (TPS)

An organized collection of people,
procedures, software, databases, and
devices used to record completed for for
business related exchanges
Payroll Example
Hours
worked
Payroll
transaction
processing
Pay
rate
Payroll
checks
Business Information Systems

Types

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Transaction processing systems
E-commerce systems
Management information systems
Decision support systems
Expert systems
E-Commerce System

E-commerce

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Involves any business transaction executed
electronically
Conducting business on-line
For example, between…
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Companies
Companies and consumers
Business and the public sector
Consumers and the public sector
Example for placing a purchase order
Purchase Order - Traditional
Purchase Order – E-commerce
Business Information Systems

Types
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Transaction processing systems
E-commerce systems
Management information systems
Decision support systems
Expert systems
Management Information
Systems

An MIS is…

An organized collection of people,
procedures, software, databases, and
devices used to routine information to
managers and decision makers
Schematic of MIS
Marketing
management
information
system
Financial
management
Information
system
Manufacturing
management
Information
system
Common
databases
TPS
Order
management
information
system
MIS ‘Discussion’
MIS is short for management information system or
management information services, and pronounced
as separate letters
MIS refers to a class of software that provides
managers with tools for organizing and evaluating
their department. Typically, MIS systems are written
in COBOL and run on mainframes or minicomputers.
Within companies and large organizations, the
department responsible for computer systems is
sometimes called the MIS department. Other names
for MIS include IS (Information Services) and IT
(Information Technology).
Business Information Systems

Types
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Transaction processing systems
E-commerce systems
Management information systems
Decision support systems
Expert systems
Decision Support Systems

A DSS is…


An organized collection of people,
procedures, software, databases, and
devices used to support problem-specific
decision making
A DSS helps a manger “do the right
thing”
Business Information Systems

Types

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Transaction processing systems
E-commerce systems
Management information systems
Decision support systems
Expert systems
Expert Systems

An expert system is…
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A computer application that performs a task that
would otherwise be performed by a human
expert
gives the computer the ability to make
suggestions and to act like an expert in a
particular field
Examples: diagnose human illnesses, make
financial forecasts, schedule routes for delivery
vehicles
Expert systems typically include “artificial
intelligence” (next slide)
Artificial Intelligence

AI is…



A branch of computer science concerned
with making computers behave like
humans
Term was coined in 1956 by John McCarthy
at the Massachusetts Institute of
Technology
Draws from many areas, including
cognitive psychology
AI ‘Discussion’(1)
Artificial intelligence includes games playing: programming
computers to play games such as chess and checkers
expert systems : programming computers to make decisions in
real-life situations (for example, some expert systems help
doctors diagnose diseases based on symptoms)
natural language : programming computers to understand
natural human languages
neural networks : Systems that simulate intelligence by
attempting to reproduce the types of physical connections
that occur in animal brains
robotics : programming computers to see and hear and react
to other sensory stimuli
Problems with Expert Systems
(and AI in general)


Attempted to replace humans in
decision making
However did not take into account


How humans actually reason
Human information needs (doctors do not
want their decision making replaced, but
rather want it supported)
Working with Systems (1)

Systems development


Systems investigation and analysis


The activity of creating or modifying an existing
business system
Defines the problems and opportunities of an
existing system
Systems design

Determine how a new system will work to meet
business needs
Working with Systems (2)

Systems implementation


Creating and acquiring system components
defined in the design
Systems maintenance and review

Checks a modifies the system so that it
continues to meet changing business
needs