1 Mis Imp Concepts
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Management: What is management?
Information: What is information?
Systems: What are systems? Information Systems: What are
Information Systems?
Management Information Systems: Whatare They?
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MIS as an evolving concept
Levels of management
What do information systems do? MIS and Organizational Fit
MIS as a Discipline
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A. Management: What ismanagement?
Planning Organizing
Leading
Controlling
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1. Planning
Goal setting
Environmental scanning Forecasting
Data collection
Communicating
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2. Organizing
Staffing
Coordinating Delegating
Understanding
Procedures/ Policies
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3. Leading
Authority
Motivating Directing: Delegation of responsibilities
activating
Supervising
Negotiation Persuading
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4. Controlling: Resources- Money
(capital), manpower (people),
materials, machines, movement
(Distribution, flow), and Information
Measuring
Evaluating
Reporting corrective action
feed back
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5. Communicating: Goals/Objectives,
standards of desirability
Informing
Persuading(Influence)
Negotiation
Corrective action
Listening
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B. Information: What is information?
1. Data (raw material)
Alpha-numeric Symbolic
Stored facts
inactive (they exist)
technology based
gathered from various places
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2. Processed data
meaningful
perceived value
motivating action
HAS SURPRISE VALUE
HAS NEWS VALUE
Presented facts active (it enables doing)
business based (Domain based)
transformed form data
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3. Model
entity
attribute
relationship
4. Reduces Uncertainty
5. Reduces Equivocality (ambiguity)
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6. A definition: Information is data that hasbeen processed into a form that ismeaningful to the recipient (USER) and is of
real or perceived value in current orprospective actions or decisions.
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SYSTEM INTERDEPENDENCE
BUSINESS
Strategy
Rules
Procedures
ORGANIZATION INFORMATION SYSTEM
INTERDEPENDENCE
SOFTWARE
HARDWARE
DATABASE
TELE-COMMUNICATIONS
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Information Systems What are Information Systems?
1. Information (another definition): an increment in
knowledge.Information relies
on the context of the question
general knowledge of the recipient.
2. Informal information: interpersonal networking
Note: Informal information and other information maynot lend itself to computerization, yet!
3. Formal information: Organized information witha specific purpose following rules and procedures(highly structured)
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Zwass, f1.2, p14
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Information Processing Systems:
1. An information system in many respects is
a closed system, it is simply the code. 2. An information processing function
frequently needs data collected andprocessed in a prior period.
3. The data/information storage is added.
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System: What is system
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Management Systems
1. Primary function(s) mediate between the
organization and the immediate taskenvironment.
customers
suppliers
processes
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2. What do managers do?
assume responsibility
must balance competing goals
be a conceptual thinker
work with and through other people
be a mediator
must be a politician must be a diplomat
makes difficult decisions
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3. Management is the work involved incombining and directing the use ofresources to achieve
particular purposes
Leading
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4. What distinguishes mgmt from otherwork is that it focuses on maintaining theorganization so that it can accomplish itstask
POSDCORB Planning
Organizing
Staffing
Directing Coordinating
Reporting
Budgeting
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H. Management Information Systems
What are They?
1. Definition: A Management Informationsystem is:
an integrated user-machine system
for providing information
to support the operations, management With the help of analysis, and decision making
functions
in an organization
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The system utilizes : Computer hardware & software
Manual procedures Models of analysis, planning, control, and
Database.
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Explanation :
Computer based means that the designers of a
MIS must have knowledge of computers and oftheir use in information processing.
The USER-MACHINE means that the systemsdesigner should understand the capabilities of
human as system components (as informationprocessors) and the behavior of humans as usersof information.
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Integration: A plan should eliminate:redundancy, incompatible hardware & software.Achieved through standards and guidelines andprocedures.
Data Base: A order system for storing, retrievingand selecting information.
Models: A mathematical representation of anactual system, containing independent variables
that influence the value of a dependent variable(text book). Models may be thought of ascontaining only the essential of the real system.Rapid Application Design, Joint Application Design
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I. MIS as an evolving concept 1. MIS: Many companies are now using their
computers to provide information for decision making;that is, they are using a management informationsystem.
2. MIS can provide managers with information in a
usable from.
A MIS is a formal Info network using computers toprovide management information for decisionmaking
The goal of MIS is to provide the correct informationto the appropriate manager at the right, in a useful
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3. Successful MIS must provide info that can beapplied:
MIS should know who the users are
MIS should provide the information the user needs
MIS should provide the information in the format theuser can understand.
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NEW OPTIONS FOR
ORGANIZATIONAL DESIGN FLATTENING ORGANIZATIONS
SEPARATING WORK FROM LOCATION
INCREASING FLEXIBILITY REFINING ORGANIZATIONAL
BOUNDARIES
ELECTRONIC COMMERCE REORGANIZING WORK FLOWS
*
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Levels of management: In order tounderstand who the users of an MIS are
and what information they need, onemust first understand the levels ofmanagement and the types of decisionsare made at each level.
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KINDS OF INFORMATION SYSTEMS
SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN
KIND OF SYSTEM GROUPS SERVED
STRATEGIC LEVEL SENIOR MANAGERS
MANAGEMENT LEVEL MIDDLE MANAGERS
OPERATIONAL OPERATIONALLEVEL MANAGERS
KNOWLEDGE LEVEL KNOWLEDGE &DATA WORKERS
RESOURCESMARKETING & ENGINEERING
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1. Lower level management makes decisionsthat affect day to day operations.
Programmed decisions that are
predetermined by rules and procedures. Theylead to a desired result.
The information needs of lower-level mgrs. canbe met by administrative data processing
activities.
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2. Middle-level mgrs. plan working capital,schedule production, formulate budgets,and make short-term forecasts.
Mid-level managers make tactical decisionsthat usually involve time periods of up to twoyears.
Many Mid-level mgmt decisions are non-programmed decisions. No specific
predetermined steps cab be followed to eachsolution.
The information needs of Mid-level mgrs. mustbe specific.
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3. Top-level mgrs. provide direction for thecompany by planning for the next five years+.
Top-level mgrs. make strategic decisions thatinvolve a great deal of uncertainty.
Top-level mgt. decisions are non-programmeddecisions.
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TPS, MRS,DSS,EIS,OIS(OAS),BES
1. Transaction Processing System: Operational dataprocessing
Examples: Manufacturing systems, order processing,
accounts receivable, payroll
2. Management Reporting Systems: Produce reportsfor specific time periods; designed for managersresponsible for specific functions in a firm.
Examples: Departmental expense reports, performancereports
Intra Department
Inter Department
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3. Decision Support Systems (DSS): Designed tosupport individual and collective decision making.Tailored to specific managerial task, useful forMgmt control level, Strategic planning level
managers.Elements :DB, Model,S/W
Econometric Models, Simulation Models
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DB
User I/F
Model
User
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4. Executive Information Systems (EIS/ESS): A specialkind of DSS. Support the work of senior executives (viathemselves or an analysts) with access to companydata and general information on the industry and
economy. Not only requirements but also personality,style of functioning
5. Office Information Systems (OIS/OAS): Support and
coordinate knowledge work in an office environmentby handling documents and messages in a variety offorms- text, image, voice, multimedia, video, fax, etc
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6. Business Expert system :Artificial Intelligence
(Machine as Human)Ex: Medical,
Engineering,BusinessAdv: 1. Many Experts
2. Emotionally Independent
3. Multiple Hypothesis
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421.10
INPUT OUTPUTPROCESS
FEEDBACK
INFORMATION SYSTEM
ORGANIZATION
ENVIRONMENT
Customers Suppliers
Regulatory Stockholders Competitors
Agencies
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Structure of a Virtual Organizations
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Structure of a Virtual Organizations -
Network Organization
Virtual Organization
Customers
Core FirmManagementMktg & SalesRes. & Dev.
Info.Systems
Manu-facturing
Manu-facturing
Manu-facturing
After-SaleService
Logistics
Firms Acting asCorporate Partners
MIS as a Discipline
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MIS as a Discipline
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LEVELS OF BEHAVIORAL STUDY IN MIS
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VIRTUAL ORGANIZATION
1.16
CORE
COMPANY
LOGISTICS
COMPANY
DESIGN
COMPANY
MANUFACTURING
COMPANY
FINANCE COMPANY
SALES & MARKETING
COMPANY
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CHALLENGE OF INFO SYSTEMS
STRATEGIC: COMPETITIVE & EFFECTIVE
GLOBALIZATION: MULTINATIONAL INFO
INFO ARCHITECTURE: SUPPORT GOALS INVESTMENT: VALUE OF INFORMATION
RESPONSIBILITY & CONTROL: ETHICS
*