MANAGEMENT INFORMATION SYSTEM

Information system –Basics

Data, information, knowledge

• Making sense of information systems requires a clear concept of what information is

• remember that information systems are concerned with providing information to support people taking actions

Data, information, knowledgeData• data as being one of more symbols that are used to

represent something.• Another view is to think of data as being facts about

the world • keep in mind that there are a huge amount of facts

about the world, only some of which are significant or of interest to people.

Information

• Information as being processed, or value-added data

• Another view is to see information as data interpreted in some meaningful context.

• This implies one or more people having an interest in the data and doing some form of interpretation

Knowledge

The process by which data is converted into meaningful information can lead to larger structures of related information.

Knowledge can also be considered as being an understanding of what the information means, or implies

INFORMATION SYSTEM

An Information System (IS) is the system of persons, data records and activities that process the data and information in a given organization, including manual processes or automated processes

Management Information Systems A system is a combination or arrangement of parts to form an integrated

whole. A system includes an orderly arrangement according to some

common principles or rules. A system is a plan or method of doing

something.

Management information systems are those systems that allow

managers to make decisions for the successful operation of businesses.

Management information systems consist of computer resources, people,

and procedures used in the modern business enterprise.

Management Information Systems

A management support system that produces pre specified reports, displays and responses on a periodic, exception, demand or push reporting basis is called MIS.

WHY INFORMATION SYSTEM?(Role of information system in today’s competitive business environment)

Most organizations need information system to survive and prosper.

Information system help companies

extend their reach to faraway locations,

offer new products and services,

reshape jobs and work flows and

change the way they conduct the business.

Information system is essential to deal with the changes in the competitive business environment.

Competitive Business EnvironmentThe four powerful worldwide changes have altered the business environment

1. The emergence and strengthening of the global economy.

A growing percentage of the American economy and other advanced industrial economies in Europe and Asia -depends on imports and exports.

Companies are distributing core business functions in product design, manufacturing, finance, and customer support to locations in other countries where work can be performed more cost effectively.(Business process outsourcing).

The success of firms today and in future depends on their ability to operate globally.

Information system provide communication and analytic power that firms need for conducting the business on a global scale.

2. Transformation of industrial economies and societies into knowledge and information based services economies.The United States , Japan , Germany and other major industrial powers are being transformed from industrial economies to knowledge and information based economies.

Today, most people no longer work on farms or in factories (blue collar workers) but are found in sales, education, healthcare, banks, insurance firms, IT firms.(white collar workers-employed in offices)

In a knowledge and information based economy information systems and technology take on great importance.

Knowledge and information are becoming the foundation for many new services and products.

3. The transformation of the business enterprise.

There has been transformation in the possibilities for organizing and managing the business enterprise.

Traditional business firm was - and still is- a hierarchical , centralized , structured arrangement of specialists that typically relied on a fixed set of standard operating procedure to deliver a mass- produced product (or service).

The new style of business firm is flattened (less hierarchical ), decentralized , flexible arrangement of generalists who rely on nearly instant information to deliver mass-customized products and services uniquely suited to specific markets or customers.

The modern management relies on knowledge, learning and decision making of individual employees to ensure proper operation of the firm.

Information technology makes this style of management possible.

4. The emergence of the digital firm .

A digital firm is one where nearly all of the organization's significant business relationships with customers, suppliers, and employees are digitally enabled and mediated.

Core business processes are accomplished through digital networks spanning the entire organizations or multiple organizations.

For managers of digital firm, information technology is the core of the business and a primary management tool.

The changes in the business environment pose a number of new challenges to the business firms and their management. (Customer can shop in a worldwide market)

Organizations are trying to become more competitive and efficient by transforming themselves into digital firms where nearly all core business processes and relationships with customers, suppliers and employees are digitally enabled

Contemporary Approach To Information System

Study of information system is a multidisciplinary field. No single theory or perspective dominates.

The contemporary approach to information systems deals with issues and insights contributed from technical and behavioral disciplines.

Contemporary Approach To Information System

In general, the field can be divided into technical and behavioral approaches. Information systems are sociotechnical systems.

Though they are composed of machines, devices, and “hard” physical technology they require substantial social, organisational and intellectual investments to make the work properly.

MIS

Computer science Operations

research

Management science

Psychology

Political Science

Sociology

Technical approach

Behavioral approach

Contemporary approach to information systems

Technical Approach

• The disciplines that contribute to the technical approach are computer science, management science and operations research.

• Computer science deals with establishing theories, computability, methods of computation and methods of efficient data storage and access.

Technical Approach

• Management science emphasizes the development of models for decision making and management practices.

• Operations research focuses on mathematical techniques for optimizing selected parameters of organizations such as transportation, inventory control, and transaction costs

Behavioral Approach

An important part of the information systems field is concerned with behavioral issues that arise in the development and long term maintenance of information systems.

Issues such as strategic business integration, design, implementation, utilization and management cannot be explored usefully with the models in technical approach.

Behavioral Approach

Behavioral disciplines contribute important

concepts and methods.

Sociologists study information system focusing

how groups and organizations shape the

development of the system and also how systems

affect individuals, groups and organizations

Sociotechnical Systems

• MIS combines the theoretical work of computer

science, management science, and operations research

with a practical orientation toward developing system

solutions to real-world problems and managing

information technology resources.

• It also pays attention to behavioral issues surrounding

the development , use, and impact of information

systems raised by sociology, economics, and psychology.

Sociotechnical Systems

Both the technical and behavioral components need attention.

This means that technology must be changed and designed in

such a way as to fit organizational and individual needs. At

times, the technology may have to be “de-optimized “ to

accomplish this fit. Organizations and individuals must also be

changed through training, learning and planned organizational

change. People and organizations change to take advantage of

new information technology

Prerequisites of MIS

• Data Base– It should be user oriented and should be capable of being

used as a common data source for different users and avoid duplication of efforts in storage and retrieval of necessary data and information.

– Maintenance of DB requires hardware, software and computer professionals

• Qualified System and Management Staff - Two types of experts, computer and system expert who

prepares the system and other the management staff

who directs the system experts about their need and

requirements from a MIS

• Top management Support– To use or implement Top mgt support is needed– Helps subordinate to accept and perform those

activities– To gain support, place a cost and benefit analysis

of having a MIS and other supporting facts before the top management

• Active Participation of Operating management– it is a basic requirement for successful

implementation– Behavioural problems arising after the

implementation can be handled by educating the operative management about benefits of MIS

• Control and maintenance of MIS– Control the operation of the system as it was

designed to operate– Use of shortcuts reduce effectiveness– Devise check mechanism for information system

control– Maintenance means alteration and modification

according to the need and requirement of the user

• Evaluation of MIS– should have regular evaluation to meet future

needs– Evaluation process should have below steps

1. Evaluate whether flexibility exists in the system to cope with any expected or unseen information requirement in future

2. Take feedback from users as well as designers about the capabilities and shortcoming in the system

3. Guiding the appropriate authority about the criterion to be taken to maintain the effectiveness of MIS