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MANAGEMENT MANAGEMENT INFORMATION SYSTEMINFORMATION SYSTEM

Data and informationData and informationData

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 The Transformation: From Data to WisdomData to WisdomDataData is transformed into informationinformation

◦ Resources used to organize data into categories Examples include monthly reports, regional

summaries, etc.

InformationInformation is transformed into knowledgeknowledge◦ Knowledge is understanding patterns, rules and

contexts.KnowledgeKnowledge is transformed into wisdomwisdom

◦ Collective and individual experience in applying knowledge to solve a problem

◦ Wisdom is where, when and how to apply knowledge

What is a System?

A System

A System

InputInput

A System

InputInput ProcessProcess

A System

InputInput OutputOutputProcessProcess

A System


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A System


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CustomersCompetitors

Suppliers Government

SYSTEMSYSTEMA system is an orderly grouping of

interdependentcomponents linked together according to

a plan toachieve a specific objective.

Elements(Components) of Elements(Components) of systemsystem

InputProcessorOutputsControl- guides the system

Feedback- control in a dynamic system is achieved by feedback

Environment - super system

Boundaries and Interface

Types of SystemsTypes of SystemsConceptual and EmpiricalNatural and ManufacturedSocial, People-Machine and MachineClosed and Open SystemsAdaptive and Non-adaptiveDeterministic and Probabilistic

Systems.Permanent and Temporary System.Stationary and Non-stationary

System. Subsystems and super systems.

What is an Information What is an Information System?System?a set of interrelated components

that◦collect (or retrieve)◦process◦store◦distribute

information in order to support◦decision making◦coordination and control

Information SystemInformation 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 Role of Information SystemSystem

Support of business operation Support of Managerial Decision

making Support of Strategic competitive

advantage

Components of Information Components of Information System System

Input Processor Output People Hardware(physical devices) Software (information processing

instructions) Data Network (communication channels)

Activities of Information Activities of Information SystemSystem Input of data resources Processing of data into

information Output of Information Products Storage of Data Resources Control of System Performance

Types of Information SystemTypes of Information System

Operational support systemTransaction Processing system Process control systems Office automation system

Management support system Management Information Systems Decision Support Systems Executive Information Systems Expert Systems

Transaction Processing Transaction Processing SystemSystem

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 Management Information SystemSystemA management Information System is

An integrated user-machine system For providing information To support the operations, management,

analysis, and decision-making functions In an organizationThe system utilizes Computer Hardware and Software Manual Procedures Models for analysis, planning, control and

decision making and A database

Characteristics of MISCharacteristics 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

Org

aniz

atio

n st

ruct

ure strategic

management

operoper

Sales and Sales and MarketingMarketing

Manufacturing and Manufacturing and ProductionProduction

Human ResourcesHuman Resources Finance and Finance and AccountingAccounting

strategic

management

operoper

Sales and Sales and MarketingMarketing

Manufacturing and Manufacturing and ProductionProduction

Human ResourcesHuman Resources Finance and Finance and AccountingAccounting

Hardware Software Data and Storage Networks

IT InfrastructureIT Infrastructure

InformationInformationArchitectureArchitecture

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Information required at different management levels

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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

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?

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Information Quality

Information products whose characteristics, attributes, or qualities make the information more valuable

Information has 3 dimensions: Time Content Form

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Attributes of Information Quality

Level of the System

Operational-level systems Keep track of elementary activities

and transactionsSales, 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 managementPeriodic reports

Some may be used for non-routine decisionsWhat-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 systempayroll systemplant 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

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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

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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

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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

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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

Information System Integration

Management Level

Strategic Level

Operational Level

Management Level


Management Level

Strategic Level

Operational Level

Management Level

TPSTPS


Management Level

Strategic Level

Operational Level

Management Level

TPSTPS

MISMISDSSDSS


Management Level

Strategic Level

Operational Level

Management Level

TPS

MISDSS

ESS


Management Level

Strategic Level

Operational Level

Management Level

TPSTPS

MISMISDSSDSS

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Management Management LevelLevel

Strategic LevelStrategic Level

Operational LevelOperational Level


TPSTPS

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Strategic LevelStrategic Level

Operational LevelOperational Level


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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

Information for competitive Advantage

Organizational ChangeOrganizational ChangeAutomationRationalization of proceduresBusiness process reengineeringParadigm shifts

Business Process Business Process ReengineeringReengineering

“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.”

Technology

Mis Mac