MANAGEMENT

INFORMATION SYSTEM
Ansuman Saha
 Data and information
Data
 Raw facts or Observation
 Meaningless
 Time Independent
 Machine Efficient
 General Purpose
Information
 Informative value
 Time dependent
 Human efficient
 Specific
 Based on previous knowledge
The Transformation: From
Data to Wisdom
 Data is transformed into information
◦ Resources used to organize data into categories
 Examples include monthly reports, regional
summaries, etc.
 Information is transformed into
knowledge
◦ Knowledge is understanding patterns, rules and
contexts.
 Knowledge is transformed into wisdom
◦ Collective and individual experience in applying
knowledge to solve a problem
◦ Wisdom is where, when and how to apply
knowledge
 A System
Competitors
Customers

Input Process Output

feedbac
k
Suppliers Government
 SYSTEM
A system is an orderly grouping of
interdependent
components linked together according to
a plan to
achieve a specific objective.
 Elements(Components) of
system
Input
Processor
Outputs
Control- guides the system

Feedback- control in a dynamic system is

achieved by feedback
Environment - super system
Boundaries and Interface
What is an Information
System?
a set of interrelated components
that
◦ collect (or retrieve)
◦ process
◦ store
◦ distribute
information in order to support
◦ decision making
◦ coordination and control
 Information System
An information system is an
organized
combination of people, hardware,
software,
communications network, and data
resources
that collects, transforms, and
disseminates
in an organization.
 Role of Information
System
 Support of business operation
 Support of Managerial Decision
making
 Support of Strategic competitive
advantage
Components of Information
System
 Input
 Processor
 Output
 People
 Hardware(physical devices)
 Software (information processing
instructions)
 Data
 Network (communication channels)
Activities of Information
System
 Input of data resources
 Processing of data into
information
 Output of Information Products
 Storage of Data Resources
 Control of System Performance
Types of Information System

 Operational support system

Transaction Processing system
 Process control systems
 Office automation system
 Management support system
 Management Information Systems
 Decision Support Systems
 Executive Information Systems
 Expert Systems
Transaction Processing
System
Transaction
processing systems functions at the
operational level of an organization.
Examples of transaction processing systems
include order tracking, order processing,
machine control, plant scheduling, and
compensation.
Management Information
System
A management Information System is
 An integrated user-machine system
 For providing information
 To support the operations, management, analysis,
and decision-making functions
 In an organization
The system utilizes
 Computer Hardware and Software
 Manual Procedures
 Models for analysis, planning, control and decision
making and
 A database
Characteristics of MIS
 Management Information System Support Structured and Semi-
structured Decision at the operational and management control
levels. They are also useful for planning purpose of senior
management staff.
 Management Information Systems are generally reporting and
control oriented. They are designed to report on existing
operation and therefore to help provide day- to day control of
operations.
 MIS rely on existing corporate data and data flows.
 MIS have little analytical capability.
 MIS generally aid in decision making using past and present
data.
 MIS are relatively inflexible.
 MIS have internal rather than an external orientation.
 Information requirements are known and stable.
 MIS require a lengthy analysis and design process.
Levels and Functions
within an Organization
 Levels
 Operational
 Management
 Strategic
 Functions
 Sales and Marketing
 Manufacturing and Production
 Finance and Accounting
 Human Resources
Management
 Management is the art of getting things done
through and with the people in formally
organized groups.
 Managerial functions
 Planning
 Organizing
 Staffing
 Directing
 Controlling
 strategic

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Sales and Manufacturing and Human Resources Finance and

Marketing Production Accounting
 strategic
Information
Architecture
management

oper

Sales and Manufacturing and Human Resources Finance and

Marketing Production Accounting

Hardware Software Data and Storage Networks

IT Infrastructure
Information required at different
management levels

9-20
Levels of Management
Decision Making
 Strategic management
 Executives develop organizational goals, strategies,
policies, and objectives
 As part of a strategic planning process
 Tactical management
 Managers and business professionals in self-directed
teams
 Develop short- and medium-range plans, schedules and
budgets
 Specify the policies, procedures and business objectives
for their subunits
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Levels of Management
Decision Making
 Operational management
 Managers or members of self-directed teams
 Develop short-range plans such as weekly
production schedules

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Content of a Long range Plan
 Where are we?
 Where do we want to go?
 How do we get there?
 When will it be done?
 Who will do it?
 How much will it cost?
Information Quality
 Information products whose characteristics,
attributes, or qualities make the information
more valuable
 Information has 3 dimensions:
 Time
 Content
 Form

9-24
Attributes of Information
Quality

9-25
Level of the System
 Operational-level systems
 Keep track of elementary activities
and transactions
 Sales, receipts, payroll, etc.
 Purpose is to answer routine
questions and track flow of
transactions
Level of the System
 Management-level systems
 Keep track of monitoring, controlling
decision making, and administrative work
of middle management
 Periodic reports
 Some may be used for non-routine
decisions
 What-if analysis
 Typically draws information from
operational systems
Level of System
 Strategic-level systems
 Assist senior management in
making long-term decisions
 Typically non-routine, unstructured
decision making activities
Types of Information Systems

 Executive Support Systems (ESS)

 Management Information Systems (MIS)
 Decision Support Systems (DSS)
 Transaction Processing Systems (TPS)
Types of Systems
 Transaction Processing
Systems
 serves operational needs
 performs/records daily and routine transactions
 span boundary of organization and
environment
 major supplier of information to other IS
 examples
 airline reservation system

 payroll system

 plant scheduling
Types of Systems (contd.)

 Management Information
Systems
 serves activities of planning, controlling
and decision-making at the management
level
 usually take form of performance reports
(such as exception or summary reports)
 limited analytical ability
 often (mistakenly) equated with IS
Decision Support Systems
 DSS
 Provide interactive information support to managers
and business professionals during the decision-
making process
 Use:
 Analytical models
 Specialized databases
 A decision maker’s own insights and judgments
 Interactive computer-based modeling
 To support semi structured business decisions

9-32
Executive Information Systems
 EIS
 Combine many features of MIS and DSS
 Provide top executives with immediate and easy
access to information
 About the factors that are critical to
accomplishing an organization’s strategic
objectives (Critical success factors)
 So popular, expanded to managers, analysts and
other knowledge workers

9-33
Knowledge Management
Systems
 The use of information technology to help
gather, organize, and share business
knowledge within an organization

 Enterprise Knowledge Portals

 EIPs that are the entry to corporate intranets that
serve as knowledge management systems

9-34
Expert Systems
 ES
 A knowledge-based information system
(KBIS) that uses its knowledge about a
specific, complex application to act as an
expert consultant to end users

 KBIS is a system that adds a knowledge

base to the other components on an IS

9-35
 Information System
Integration
Strategic Level
ESS
Management
Management
Level
DSS MIS Level

TPS

Operational Level
System Approach to Problem
Solving
 Define the problem
 Design the solution
 Develop alternate solution
 Select the solution
 Implement the solution
 Monitor and evaluate the results
Organizational Change
Automation
Rationalization of procedures
Business process reengineering
Paradigm shifts
 Business Process
Reengineering
 “The fundamental rethinking and
radical
redesign of business processes to
achieve dramatic
improvements in critical, contemporary
measures of
performance, such as cost, quality,
service, and speed.”