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Management Information Systems

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Presentation on theme: "Management Information Systems"— Presentation transcript:

1 Management Information Systems

2 Information systems It is an organized combination of people,hardware,software,communications networks, and data resources that collects , transforms , and disseminates information in an organization. A set of interrelated information technologies that work together to process, store, collect, and distribute information

3 Management Information Systems (MIS)
Management information system (MIS) An MIS provides managers with information and support for effective decision making, and provides feedback on daily operations Output, or reports, are usually generated through accumulation of transaction processing data Each MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization

4 Definitions Data Raw facts such as an employee’s name and number of hours worked in a week, inventory part numbers or sales orders. Information A collection of facts organized in such a way that they have additional value beyond the value of the facts themselves. Information Data $35, Units $12,000 J. Jones Western Region $100, Units 35 Units Salesperson: J. Jones Sales Territory: Western Region Current Sales: 147 Units = $147,000 Data Processing

5 Definitions Information Systems
An information system(IS) is typically considered to be a set of interrelated elements or components that collect(input), manipulate(processes), and disseminate (output) data and information and provide a feedback mechanism to meet an objective.

6 The Value of Information
Accuracy Timeliness Accessibility Engagement Application Rarity

7 Characteristics of a Management Information System
Provides reports with fixed and standard formats Hard-copy and soft-copy reports Uses internal data stored in the computer system End users can develop custom reports Requires formal requests from users

8 Objectives of Information Systems :
Essentially these can be seen as the benefits that an organisation can achieve through the successful use of an Information System Efficient Operations maximization of throughput with respect to the unit of resource input the organisation obtains maximum benefit with the least waste from the resources it allocates to tasks Effective Management the ability to produce the intended output in a satisfactory manner a measure of how well the products and/or services of an organisation meet customer needs

9 Major areas of Information Systems
Management of IS(Resources and Strategies) Development of IS(Solutions to Business Problems) Applications of IS(To Operations, Management and Strategic Advantages) Technology of IS(Hardware , Software , Networks , and Data Management) Foundation Concepts of IS(Fundamental Behavioral and Technical Concepts) Major areas of Information Systems

10 Types of Computer-based Information Systems
Data Processing Systems accounts processing routine product control personnel Office Automation Systems : document preparation and management databases and associated software diaries and schedulers spreadsheets Management Information Systems use data from data processing systems to produce

11 Decision Support Systems :
summary information generally simple statistical models aggregate data, production, output, etc. Decision Support Systems : extended MISs which incorporate more sophisticated statistical and predictive models allow “what-if” analysis and hypothesis testing highly interactive, governed by user input Executive Information Systems : can be further extensions of DSSs to allow development of strategic modelling can also be extended MISs which permit much higher levels of aggregation of data usually highly graphical, permitting access to a wide range of information through a friendly user interface

12 Simple Classification of Information Systems
Informal Information Systems : evolving complex patterns of human behaviour never formalized by the organisation often vital to the effectiveness of communication within the organisation and hence the effectiveness of the organisation itself “grapevine” can be negative and/or positive Manual Information Systems : formalized procedures, not computer based, for production of information within an organisation Historically, prior to computers, all organizational information systems operated in this way, with clerks

13 Computer-based Information Systems :
processing the information. Still many such systems through : organizational unwillingness to invest in new technology development costs not balanced by business advantage/productivity gains specialist skills of staff cannot be replicated in computerized system Computer-based Information Systems : automated systems use I.T. Must often interface with some manual Information Systems We are only really concerned with these, and we will focus exclusively on these from now on.

14 Support of business Operations
Information Systems Systems Support Operations Management Support of business Operations Support of Managerial Decision Making

15 IS Vs IT Payroll System INFORMATION TECHNOLOGY Hardware
Software Databases Networks Other related components Inventory System are used to build INFORMATION SYSTEMS Marketing System Customer Service System

16 Expanding Roles of IS Data Processing: 1950s-1960s
Management Reporting: 1960s-1970s Decision support: 1970s-1980s Strategic and End User Support: 1980s-1990s Global Internetworking: 1990s-2000s

17 Classification of IS

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19 Classification of IS Information Systems Operations Support System
Management Support System Transaction processing systems Office automation systems Decision support systems Executive information systems Management information systems Process control systems

20 1. Operations support systems process data generated by business operations
Major categories are: i) Transaction processing systems ii) Process control systems iii) Office automation systems 2. Management Support Systems provide information and support needed for effective decision making by managers Major categories are Management Information System Decision Support Systems Executive Information System

21 Operations Support System
i) Transaction processing systems Process business exchanges Maintain records about the exchanges Handle routine, yet critical, tasks Perform simple calculations ii) Process control systems monitor and control industrial processes. iii) Office automation systems automate office procedures and enhance office communications and productivity.

22 2. Management support systems provide information and support needed for effective decision making by managers Major categories are: Management information systems Routine information for routine decisions Operational efficiency Use transaction data as main input Databases integrate MIS in different functional areas

23 ii) Decision Support System
Interactive support for non-routine decisions or problems End-users are more involved in creating a DSS than an MIS iii) Executive information systems provide critical information tailored to the information needs of executives

24 Other categories Expert systems End user computing systems Business information systems d) Strategic information systems a) Expert Systems are knowledge-based systems that provides expert advice and act as expert consultants to the users b) End user computing systems support the direct, hands on use of computers by end users for operational and managerial applications c) Business information systems support the operational and managerial applications of the basic business functions of a firm d) Strategic information systems provide a firm which strategic products, services, and capabilities for competitive advantage

25 Enterprise Resource Planning (ERP)
Integrated programs that can manage a company’s entire set of business operations Coordinates planning, inventory control, production and ordering

26 Information Systems Development

27 IS as Discipline IS is an interdisciplinary field influenced by Computer Science, Political Science, Psychology, Operations Research, Linguistics, Sociology, and Organizational Theory.

28

29 Challenges Workforce downsizing Information overload Employee mistrust
Difficult to built Security breaches

30 Opportunities Enhanced global competitiveness
Capture market opportunities Support corporate strategy Enhance worker productivity Improve quality of goods and services

31 Conclusion Information Systems are indispensable to the business, industry, academia and any organization to meet the future challenges


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