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Module 1 Basic Concepts of MIS
( Management Information System )
MIS - an Introduction
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Data is raw facts or observations about physical phenomena or business transactions, facts describing those events.Data is objective measurements of the attributes of entities.
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Data Versus Information
1200100
WestCharles Mann
79154 TM Shoes
Monthly Sales Report for West Region
Sales Rep: Charles MannEmp No. 79154Item Qty Sold PriceTM Shoes 1200 $100
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Information system generates information from data.
Information is processed data, converted into a meaningful and useful context for specific end users.
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Information is data subjected to value added process
Managers at all levels of the organisation require a steady flow of information for effective and efficient functioning.
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Qualities of InformationRelevantCompleteTimelyAccurateCost effectiveReliable ConciseClarity
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Attributes of Information Quality
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1) Time Dimension-Timeliness - Info should be provided when it is neededCurrency - should be up-to-date when it is providedFrequency – should be provided as often as neededTime Period – can be provided about past, present , and future time periods
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2) Content Dimension-Accuracy - Info should be free from errorsRelevance- should be related to the information needs of a specific recipient for a specific situationCompleteness – all the information that is needed should be provided Conciseness – Only the info that is needed should be provided
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3) Form Dimension-Clarity - Info should be provided in a form that is easy to understandDetail – Info can be provided in detail or summary formOrder – info can be arranged in a predetermined sequence Presentation – can be presented in narrative , numeric , graphic , or other formsMedia - Info can be provided in the form of printed paper documentation, video displays, or other media
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Information as a ResourceInformation Resource Management (IRM) is an approach to management based on the concept that information is an organizational resource.Features of Information:1) Information is seen as an organizational resource.2) Information comes from various sources- internal and external sources
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3) Information has a cost 4) Information has a return on investment5) It can be reused indefinitely6) The managerial cost for additional usage is low7) It is intangible8) It can be structured or unstructured
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A manager should know how to manage this important resource.
Computer-based Information Systems are excellent tools for collecting , storing , processing, and presenting information.
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What IS a system?A group of interrelated or interacting elements forming a unified whole, ORA group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process (dynamic system).Three basic interacting components: Input Processing (transformation process) Output
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SYSTEMSYSTEM
INPUT OUTPUTPROCESS
FEEDBACK
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Add Feedback and Control Loops..
And the system, now called a cybernetic system, becomes even more useful.
Self-monitoringSelf-regulating
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FUNCTIONS OF AN INFORMATION FUNCTIONS OF AN INFORMATION SYSTEMSYSTEM
INPUT OUTPUTPROCESS
FEEDBACK
INFORMATION SYSTEMINFORMATION SYSTEM
ENVIRONMENTENVIRONMENT
Customers SuppliersCustomers Suppliers
Regulatory Stockholders CompetitorsRegulatory Stockholders CompetitorsAgenciesAgencies
ORGANIZATIONORGANIZATION
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Other System CharacteristicsA system exists and functions in an environment containing other systems.Subsystem – a component of a larger system.Systems that share the same environment may be connected to one another through a shared boundary, or interface.Open versus closed system - A system that interacts with other systems in its environment is open systemAdaptive system – a system that has the ability to change itself or its environment in order to survive.
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Information system is an organised combination of people, hardware , software, communication networks and data resources
that collects , transforms and disseminates information in an organisation.
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Components or Resources of an INFORMATION System
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Resources of an Information System (Continued)
People Resources – people are required for the operation of all Information Systems
End Users IS Specialists – system analysts, programmers,
computer operatorsHardware Resources
Computer systems ( machine ) Peripherals
Software Resources System software Application software Procedures – operating instructions for people
who will use an IS
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Resources of an Information System (Continued)
Data ResourcesData resources are transformed by
information processing activities into information products for end users
Data resources are organized into databases that hold organized and processed data
Network ResourcesCommunication mediaNetwork support
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Information System ActivitiesThe basic information processing activities that occur in information systems are : Input, Processing, Output, Storage, and Control activities
1)Input of Data Resources – data about business transactions and other events must be captured and prepared for processing, involves data entry activities using user interfaces
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2) Processing of Data into Information- by data processing activities such as calculating, comparing, sorting, classifying, and summerizing
These activities organize, analyse, and manipulate data , thus converting them into information for end users
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Conversion of facts into meaningful information is known as data processing - a systematic sequence of operations on data
- Where the form is aggregated, manipulated and organised,
- The content is analysed & evaluated,- And it is placed in a proper context.
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3) Output of Information Products- information in various forms is transmitted to end users and made available to them in the output activity
Messages, reports, forms, graphic images, audio responses, paper documents, and multimedia are the general information products
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4) Storage of Data Resources- data and information are retained in an organized manner for later use.
Data is organised into fields, records, files, and databases.
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5) Control of System Performance- an information system should produce feedback about its input, processing, output, and storage activities.
This feedback must be monitored and evaluated to determine whether the system is meeting established performance standards.
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Information SystemImportant ingredient in developing competitive products and services that give an organization a strategic advantage in global market place.
Information Systems play a vital role in the business success of an enterprise.
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Towards a Definition of MIS
An Integrated, user-machine system for providing information to support -operations,- management, and -decision making functions
of an organizationDefinition by Gorden B.Davis
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MIS is :A Management support system that
produces - pre-specified reports, displays, and responses
on a periodic, exception, or demand basis.
Definition by James O’Brien
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SOCIOLOGYSOCIOLOGY
POLITICAL POLITICAL SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTER COMPUTER
SCIENCESCIENCE OPERATIONS OPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
APPROACHES TO INFO SYSTEMS
MISMIS
BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES
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Major Roles of IS
Top ManagementSupport CompetitiveAdvantage
Support Business
Decision Making
Support of Business Processes and Operations
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TYPES OF INFORMATION SYSTEMSTYPES OF INFORMATION SYSTEMS
DATA WORKERSDATA WORKERS
KIND OF SYSTEM GROUPS SERVEDKIND OF SYSTEM GROUPS SERVED
STRATEGIC LEVEL SENIOR STRATEGIC LEVEL SENIOR MANAGERSMANAGERS
MANAGEMENT LEVEL MIDDLE MANAGEMENT LEVEL MIDDLE MANAGERSMANAGERS
OPERATIONAL OPERATIONAL OPERATIONAL LEVEL OPERATIONAL LEVEL MANAGERS MANAGERS
KNOWLEDGE LEVEL KNOWLEDGE &KNOWLEDGE LEVEL KNOWLEDGE &
SALES & MANUFACTURING FINANCE ACCOUNTING HUMANSALES & MANUFACTURING FINANCE ACCOUNTING HUMAN RESOURCESRESOURCESMARKETINGMARKETING
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Major Roles of IS (continued)
Support Business Processes / Operations
Support Managerial Decision Making
Support Competitive & Strategic Advantage
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Trends in Information Systems
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MAJOR TYPES OF SYSTEMSEXECUTIVE SUPPORT SYSTEMS (ESS)DECISION SUPPORT SYSTEMS (DSS)MANAGEMENT INFORMATION SYSTEMS (MIS)KNOWLEDGE WORK SYSTEMS (KWS)OFFICE AUTOMATION SYSTEMS (OAS)TRANSACTION PROCESSING SYSTEMS (TPS)
*
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Types of Information Systems
EnterpriseCollaboration
Systems
ManagementInformation
Systems
ProcessControlSystems
TransactionProcessing
Systems
DecisionSupportSystems
ExecutiveInformation
Systems
OperationsSupportSystems
ManagementSupportSystems
InformationSystems
ProcessingProcessingBusinessBusiness
TransactionsTransactions
ControlControlof Industrialof IndustrialProcessesProcesses
Team andTeam andWorkgroupWorkgroup
CollaborationCollaboration
PrespecifiedPrespecifiedReportingReporting
for Managersfor Managers
InteractiveInteractiveDecisionDecisionSupportSupport
InformationInformationTailored forTailored forExecutivesExecutives
Support of
Support of
Busines
s
Busines
s
Operatio
ns
Operatio
ns
Support of
Support ofManagerial
Managerial
Decision Making
Decision Making
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Types of Information Systems
Operations Support SystemsTransaction processing systems
Batch processing systems – transaction data accumulate over time, processed periodically.
Real-time processing – data processed immediately after a transaction occurs.
Process Control Systems – monitor & control physical processes.
Enterprise Collaboration Systems
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Types of Information Systems (continued)
Management Support SystemsManagement Information Systems –
pre-specified reports & displays to support decision-making.
Decision Support Systems – provide interactive ad hoc support.
Executive Information Systems – critical information tailored to the information needs of executives.
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Types of Information Systems (continued)
Other ClassificationsExpert systems – expert adviceKnowledge management systems –
support the creation, organization, & dissemination of business knowledge
Functional business systems – support the basic business functions
Strategic information systems – strategic advantage
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In Summary, the IS Function…Is a major functional area of business.Is an important contributor to operational efficiency, employee productivity and morale, and customer service & satisfaction.Is a major source of information and support for decision making.Provides a strategic advantage in developing competitive products & services.
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As the problems of information management increase, new information technologies are evolved which provide tools such as – Decision support systems, Expert systems, AI, Transaction processing systems, Telecommunications, Networking, Office Automation System, Electronic mail, and Database management systems.