Introductory Lecture

Reference material
Management Information Systems: Strategy & Action. McGraw Hill Book Company Charles Parker, Thomas Case.
Management Information Systems: Managing a Digital Firm. Prentice Hall Company. By Kenneth C. Laudon & Jane P. Laudon

Tentative Grade Distribution

Case Studies & assignments 5% Class attendance Quizzes Presentation Mid Term Final

5% 10% 10% 30%

40%

What is Information!

Most of us are or will be working in an information intensive environment instead of labor intensive environment.
Information intensive teachers accountants Labor intensive Farms factories

Transformation
Information age knowledge age Knowledge is refined information with processing and communication capabilities.

Systems The Basics

A System is made up of number of parts combined together in a particular way to do something useful. We think of the combined part as a single thing and give it a name.
Wheels, pedals, gears, seat, chain and handlebars are combined to form a single whole called a bicycle. A bike is a system when all parts are connected correctly because it allows users to move from one place to another more easily.

Information Systems

An organized combination of people, hardware, software, networks and data resources collect, process, store, analyze, and distribute information for a specific purpose.

Information System

Like any other system, an information system includes inputs (data, instructions) and outputs (reports, calculations). It processes the inputs by using technology such as PCs and produces outputs that are sent to users or to other systems via electronic networks and a feedback mechanism that Controls the operation.

What is an Information System

Composed of
Hardware Software Data People Procedures

Purpose
To aid in the operation or management of an organization

In the Business context also known as

Management Information System (MIS)

Control of System Performance

Input of Data Resources

Processing Data

Output of Information Products

Storage of Data Resources

Information System
Information systems have a purpose and a social context.
A common purpose is to provide a solution to a business problem. The social context of the system consists of the values and beliefs that determine what is acceptable and possible within the culture of the people and groups involved

Computer-Based Information System

A computer-based information system (CBIS) is an information system that uses computer technology (information technology) to perform some or all of its intended tasks.

Computer Based Information System

Hardware Network Software

Procedures Database

People

Continued
Hardware is a set of devices such as processor, monitor, keyboard, and printer. Software is a set of programs that enable the hardware to process data. Database is a collection of related files, tables, relations, and so on, that stores data. Network is a connecting system that permits the sharing of resources between computers. Procedures are the set of instructions about how to combine the above components. People are those individuals who work with the system or use its output

Programmer, Users & System Analysts

Programmer
Person who writes a computer program.

User
Person who uses the result of a computer program.

System Analyst
Assess the computer related needs of users and designs systems that meet these needs.

Technical Operation of CBIS

Input device supplies data to CBIS CPU processes this data Output devices receives the result of the query Memory temporarily or permanently stores data
Main memory - RAM Auxiliary memory hard disk

Application software and system software

Difference between IS & IT

IS stands for Information System
The entire system, including people, procedures, hardware, software, and data

IT stands for Information Technology

Can refer to just the hardware and software and possibly the data

Management Information System

MIS provides people with either data or information relating to an organizations operations.

MIS supports activities of

Employees Owners Customers Any other key roles in an organization

MIS supports activities

But How?
Uses 4 subsystems

4 Subsystems of MIS

MIS
Transaction Processing System Management Reporting System Decision Support System Office Information System

Transaction Processing System

TPS comprises of routine, day to day accounting operations paperwork processing activities TYPICAL TPS APPLICATIONS - Example in a University like us
MAJOR FUNCTIONS OF SYSTEMS:
Admissions, grade records, course records

MAJOR APPLICATION SYSTEMS:

Registration system, student transcript system

Example - A Payroll System

Hours worked Payroll transaction processing Pay rate Payroll checks

Management Reporting System

Generates preplanned printed reports These reports are the product of extensive and detailed databases assembled TPS. Its also called Information Reporting System.

Decision Support System

Provides a set of easy to use modeling, retrieving and reporting capabilities for people to generate useful information when making decisions With DSS, a manager can sit at an interactive terminal and browse through data, analyze them and create specially tailored report.

Can decisions be automated?

Information systems do not make decisions. The manager analyzes the data and reaches a decision. An expert system, sometimes referred to as a knowledge-based system, is a computer system designed to analyze data and produce a recommendation or decision.
uses a set of facts or rules

 Being key parts of an organization, knowledge based systems are not considered to be a separate subsystem of MIS. Expert system and artificial intelligence are knowledge based systems that mimic human decision making process. ES is a rule based system AI includes robotics

Office Information System

An office automation system automates or computerizes, routine office tasks. Includes the use of computer based, office oriented technologies such as word processors, mail software, video teleconferencing.

Information Resource Management

Information is a precious resource of an organization. The point is how to utilize this resource effectively.

Data verses Information

Data refers to facts When data are filtered through one or more processors so that they take on value and meaning to a person they become information. People use information to make decisions rather than data.

Example
Data- Details regarding flights departing and arriving daily at Dubai International Airport. If I call my travel agent to inquire about flying to Dubai from Lahore on a specific date on a specific carrier, my travel agent will extract the particular information from the airline data available. Both computer and human mind acts as processors to select data and transform it into useful information.

DATA

Processing of data to information

INFORMATION

MANAGER

DECISION

What is Information Resource Management?

A concept that recognizes information as a key resource that should be properly managed. In IRM-oriented firms, information is perceived as a desirable investment that can be used strategically to provide competitive advantage rather than only as a necessary expense that must be controlled. Thus MIS can generate opportunities. Chief Information Officer(CIO) plays an important role in strategic planning along with CEO of the organization.

Goal of Information System

Operational Efficiency Functional Effectiveness Quality Customer Service Product Creation & Enhancement Competitive Advantage Communication and Networking

 Doing routine tasks better, faster or cheaper. Cut down the number of clerks and inventory control personnel. Microsoft Office technologies like Word processors increase efficiency.

Operational Efficiency [TPS-oriented]

Functional Effectiveness [DSS-oriented]

Helps managers make better decisions. Uses new technologies like AI . Example DSS were developed that uses models to predict how forest fire will spread and how various fire fighting tactics will work. These systems have improved fire fighting effectiveness.

Quality Customer Service

As product life cycles shorten and number of competitors increase, IT and IS to provide better customer service can be an excellent investment. Examples ATMs

Product Creation & Enhancement

Information is often a major force in creating the product being sold. Effective use of information distinguishes from good to bad. These type of products are called information intensive product. It is possible to create new or improved products from old ones using IT. Examples insurance company customizes insurance packages for clients. Engineering and drafting tasks are simplified by Computer aided design(CAD)

Competitive Advantage
By creating new products through IT, businesses may change the basis of competition within their industries. Example Gul Ahmed magazine

Communication and Networking

Adapting quickly to changes, taking advantage of shorter product life cycles and exploiting niche markets are keys to success. Communication technology quickly brings geographically dispersed pieces of information to make better decisions. Clients lock in and competitors lock out. Airline agencies give their customers the opportunity to operate software that help them find required information

Self study

Challenges of MIS