INTRODUCTION TO MANAGEMENT INFORMATION SYSTEM (MIS)

Contents Introduction Difference between Information Technology & Information System Difference between Information Technology & Information System Components of Information System Definition of MIS Categorization of Organizational IS Robert Anthony’s Management Hierarchy Simon’s Categorization of Decisions Gorry and Scott-Morton Framework of MIS

Introduction Management information system is an acronym of three words, viz., Management SystemInformation

Management Management is the art of getting things done through and with the people in formally organised groups.. Managerial function: Planning Organising Staffing Directing and Controlling

Information Information is data that is processed and is presented in a form which assists decision making.data Clusters of facts meaningful and useful to human beings in processes such as making decisions. It may contain an element of surprise, reduce uncertainty or provoke a manager to initiate an action.. DataProcessingInformation

System A system may be defined as a set of elements which are joined together to achieve a common objective. The elements are interrelated and interdependent.. InputProcessOutput

Data Data are streams of raw facts representing events such as business transactions – meaningless without structure. It usually take the form of historical records. In contrast to information, raw data may not be able to surprise us, may not be organised and may not add anything to our knowledge..

IT and IS What is Information Technology? Any form of technology used by people to handle information. The foundation upon which IS are built. What are Information Systems? An information system is designed to collect, process, store and distribute information Integrated components processing, storing and disseminating information in an organisation. Interdisciplinary study of systems that provide information to users in organisations.

Experiences of IT and IS Examples of IT Hardware (PC, UNIX server) Software ( , Internet, Windows, Word) Consumer devices (mobiles) Examples of IS File systems, databases, servers / clients e-commerce SAP, student records..

Components of Information System An information system is defined as a socio-technical system comprised of two sub-systems: a technical sub-system and a social sub-system. The technical sub-system encompasses the technology and process components The social sub-system encompasses the people and structure components.

IS: The Socio – technical System

Information Technology Information technology includes hardware, software and telecommunication equipment that is used to capture, process, store and distribute information. These three elements – hardware, software, and telecommunication systems – comprise the IT component of an information system. Hardware is the physical equipment used to process information. – a personal computer Software is the set of coded instructions (programs) that direct the hardware to perform the required tasks. – Google Docs Telecommunication systems are the networking equipment enabling users and devices to communicate. – telephone network

Process A process is the set of steps employed to carry out a specific business or organizational activity. In other words, a process maps the set of actions that an individual, a group or an organization must enact in order to complete an activity. The design of the process must fit with the other components of the information system and be adjusted when changes occur.

People The people component of an information system encompasses all those individuals who are directly involved with the system. These people include the managers who define the goals of the system, and the users. Individuals involved in the information system come to it with a set of skills, attitudes, interests, biases and personal traits that need to be taken into account when the organization designs the information system. Very often, an information system fails because the users do not have enough skills, or have a negative attitude toward the system. Therefore, there should be enough training and time for users to get used to the new system.

Structure The structure (or organizational structure) component of information systems refers to the relationship among the individuals in the people component. It encompasses hierarchical and reporting structures, and reward systems. The structure component plays a critical role in an information system, simply because systems often fail when they are resisted by their intended users When designing a new information system the organization needs to be cognizant of the current and future reward system in order to create incentives to secure its success..

Definition of MIS Management information system is a system consisting of people, machines, procedures, databases and data models, as its elements. The system gathers data from the internal and external sources of an organisation..

MIS MIS deals with behavioral issues as well as technical issues surrounding the development, use, and impact of information systems used by managers and employees in the firm.

Categorization of Organizational IS Hierarchical Perspective Process Perspective Functional Perspective

Hierarchical Perspective Organizations have a structure that is composed of different levels and specialties. Their structures reveal a clear – cut division of labour. Authority and responsibility in a business firm is organized as a hierarchy. Senior Management makes long – range strategic decisions about products and services as well as ensures financial performance of the firm. Middle Management carries out the programs and plans of senior management. Operational Management is responsible for monitoring the daily activities of the business.

Levels in Firm Senior Management Middle Management Scientists & Knowledge workers Operational Management Production and service workers Data workers

Process Perspective An organization coordinates work through its hierarchy and through its business processes, Business processes are logically related tasks and behaviours for accomplishing work. It includes formal rules that have been developed over a long time for accomplishing tasks. These rules guide employees in variety of procedures. Information systems automate many business processes.

Functional Perspective Experts are employed and trained for different business functions. The major business functions or specialized tasks performed by business organizations consists of: Sales & Marketing Manufacturing & production Finance & accounting Human resources

Functions Selling the organization’s products and service Sales & Marketing Producing & delivering products and services Manufacturing & Production Managing the organization’s financial assets and maintaining the organization’s financial records. Finance and Accounting Attracting, developing, and maintaining the organization’s labour force; maintaining employee records. Human Resources

Robert Anthony’s Management Hierarchy

Simon’s Categorization of Decisions

IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1, Gorry and Scott Morton’s framework for Decision Support (1971) Control Decision Operational Control Managerial Control Strategic PlanningTechnology Support Needed Structurede.g. accounts receivable, order entry e.g. short-term forecasting e.g. financial management MIS, mathematical models, transaction processing Semi-structurede.g. production scheduling e.g. credit evaluation e.g. mergers and acquisitions DSS Unstructurede.g. approving loans e.g. recruiting an executive e.g. new technology development DSS, ES, Neural Networks Technology Support Needed MIS, Management Science Management Science, DSS, ES, EIS EIS, ES, neural networks