1 Mis Imp Concepts

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    Management: What is management?

    Information: What is information?

    Systems: What are systems? Information Systems: What are

    Information Systems?

    Management Information Systems: Whatare They?

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    MIS as an evolving concept

    Levels of management

    What do information systems do? MIS and Organizational Fit

    MIS as a Discipline

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    A. Management: What ismanagement?

    Planning Organizing

    Leading

    Controlling

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    1. Planning

    Goal setting

    Environmental scanning Forecasting

    Data collection

    Communicating

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    2. Organizing

    Staffing

    Coordinating Delegating

    Understanding

    Procedures/ Policies

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    3. Leading

    Authority

    Motivating Directing: Delegation of responsibilities

    activating

    Supervising

    Negotiation Persuading

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    4. Controlling: Resources- Money

    (capital), manpower (people),

    materials, machines, movement

    (Distribution, flow), and Information

    Measuring

    Evaluating

    Reporting corrective action

    feed back

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    5. Communicating: Goals/Objectives,

    standards of desirability

    Informing

    Persuading(Influence)

    Negotiation

    Corrective action

    Listening

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    B. Information: What is information?

    1. Data (raw material)

    Alpha-numeric Symbolic

    Stored facts

    inactive (they exist)

    technology based

    gathered from various places

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    2. Processed data

    meaningful

    perceived value

    motivating action

    HAS SURPRISE VALUE

    HAS NEWS VALUE

    Presented facts active (it enables doing)

    business based (Domain based)

    transformed form data

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    3. Model

    entity

    attribute

    relationship

    4. Reduces Uncertainty

    5. Reduces Equivocality (ambiguity)

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    6. A definition: Information is data that hasbeen processed into a form that ismeaningful to the recipient (USER) and is of

    real or perceived value in current orprospective actions or decisions.

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    SYSTEM INTERDEPENDENCE

    BUSINESS

    Strategy

    Rules

    Procedures

    ORGANIZATION INFORMATION SYSTEM

    INTERDEPENDENCE

    SOFTWARE

    HARDWARE

    DATABASE

    TELE-COMMUNICATIONS

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    Information Systems What are Information Systems?

    1. Information (another definition): an increment in

    knowledge.Information relies

    on the context of the question

    general knowledge of the recipient.

    2. Informal information: interpersonal networking

    Note: Informal information and other information maynot lend itself to computerization, yet!

    3. Formal information: Organized information witha specific purpose following rules and procedures(highly structured)

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    Zwass, f1.2, p14

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    Information Processing Systems:

    1. An information system in many respects is

    a closed system, it is simply the code. 2. An information processing function

    frequently needs data collected andprocessed in a prior period.

    3. The data/information storage is added.

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    System: What is system

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    Management Systems

    1. Primary function(s) mediate between the

    organization and the immediate taskenvironment.

    customers

    suppliers

    processes

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    2. What do managers do?

    assume responsibility

    must balance competing goals

    be a conceptual thinker

    work with and through other people

    be a mediator

    must be a politician must be a diplomat

    makes difficult decisions

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    3. Management is the work involved incombining and directing the use ofresources to achieve

    particular purposes

    Leading

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    4. What distinguishes mgmt from otherwork is that it focuses on maintaining theorganization so that it can accomplish itstask

    POSDCORB Planning

    Organizing

    Staffing

    Directing Coordinating

    Reporting

    Budgeting

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    H. Management Information Systems

    What are They?

    1. Definition: A Management Informationsystem is:

    an integrated user-machine system

    for providing information

    to support the operations, management With the help of analysis, and decision making

    functions

    in an organization

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    The system utilizes : Computer hardware & software

    Manual procedures Models of analysis, planning, control, and

    Database.

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    Explanation :

    Computer based means that the designers of a

    MIS must have knowledge of computers and oftheir use in information processing.

    The USER-MACHINE means that the systemsdesigner should understand the capabilities of

    human as system components (as informationprocessors) and the behavior of humans as usersof information.

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    Integration: A plan should eliminate:redundancy, incompatible hardware & software.Achieved through standards and guidelines andprocedures.

    Data Base: A order system for storing, retrievingand selecting information.

    Models: A mathematical representation of anactual system, containing independent variables

    that influence the value of a dependent variable(text book). Models may be thought of ascontaining only the essential of the real system.Rapid Application Design, Joint Application Design

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    I. MIS as an evolving concept 1. MIS: Many companies are now using their

    computers to provide information for decision making;that is, they are using a management informationsystem.

    2. MIS can provide managers with information in a

    usable from.

    A MIS is a formal Info network using computers toprovide management information for decisionmaking

    The goal of MIS is to provide the correct informationto the appropriate manager at the right, in a useful

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    3. Successful MIS must provide info that can beapplied:

    MIS should know who the users are

    MIS should provide the information the user needs

    MIS should provide the information in the format theuser can understand.

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    NEW OPTIONS FOR

    ORGANIZATIONAL DESIGN FLATTENING ORGANIZATIONS

    SEPARATING WORK FROM LOCATION

    INCREASING FLEXIBILITY REFINING ORGANIZATIONAL

    BOUNDARIES

    ELECTRONIC COMMERCE REORGANIZING WORK FLOWS

    *

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    Levels of management: In order tounderstand who the users of an MIS are

    and what information they need, onemust first understand the levels ofmanagement and the types of decisionsare made at each level.

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    KINDS OF INFORMATION SYSTEMS

    SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN

    KIND OF SYSTEM GROUPS SERVED

    STRATEGIC LEVEL SENIOR MANAGERS

    MANAGEMENT LEVEL MIDDLE MANAGERS

    OPERATIONAL OPERATIONALLEVEL MANAGERS

    KNOWLEDGE LEVEL KNOWLEDGE &DATA WORKERS

    RESOURCESMARKETING & ENGINEERING

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    1. Lower level management makes decisionsthat affect day to day operations.

    Programmed decisions that are

    predetermined by rules and procedures. Theylead to a desired result.

    The information needs of lower-level mgrs. canbe met by administrative data processing

    activities.

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    2. Middle-level mgrs. plan working capital,schedule production, formulate budgets,and make short-term forecasts.

    Mid-level managers make tactical decisionsthat usually involve time periods of up to twoyears.

    Many Mid-level mgmt decisions are non-programmed decisions. No specific

    predetermined steps cab be followed to eachsolution.

    The information needs of Mid-level mgrs. mustbe specific.

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    3. Top-level mgrs. provide direction for thecompany by planning for the next five years+.

    Top-level mgrs. make strategic decisions thatinvolve a great deal of uncertainty.

    Top-level mgt. decisions are non-programmeddecisions.

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    TPS, MRS,DSS,EIS,OIS(OAS),BES

    1. Transaction Processing System: Operational dataprocessing

    Examples: Manufacturing systems, order processing,

    accounts receivable, payroll

    2. Management Reporting Systems: Produce reportsfor specific time periods; designed for managersresponsible for specific functions in a firm.

    Examples: Departmental expense reports, performancereports

    Intra Department

    Inter Department

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    3. Decision Support Systems (DSS): Designed tosupport individual and collective decision making.Tailored to specific managerial task, useful forMgmt control level, Strategic planning level

    managers.Elements :DB, Model,S/W

    Econometric Models, Simulation Models

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    DB

    User I/F

    Model

    User

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    4. Executive Information Systems (EIS/ESS): A specialkind of DSS. Support the work of senior executives (viathemselves or an analysts) with access to companydata and general information on the industry and

    economy. Not only requirements but also personality,style of functioning

    5. Office Information Systems (OIS/OAS): Support and

    coordinate knowledge work in an office environmentby handling documents and messages in a variety offorms- text, image, voice, multimedia, video, fax, etc

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    6. Business Expert system :Artificial Intelligence

    (Machine as Human)Ex: Medical,

    Engineering,BusinessAdv: 1. Many Experts

    2. Emotionally Independent

    3. Multiple Hypothesis

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    421.10

    INPUT OUTPUTPROCESS

    FEEDBACK

    INFORMATION SYSTEM

    ORGANIZATION

    ENVIRONMENT

    Customers Suppliers

    Regulatory Stockholders Competitors

    Agencies

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    Structure of a Virtual Organizations

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    Structure of a Virtual Organizations -

    Network Organization

    Virtual Organization

    Customers

    Core FirmManagementMktg & SalesRes. & Dev.

    Info.Systems

    Manu-facturing

    Manu-facturing

    Manu-facturing

    After-SaleService

    Logistics

    Firms Acting asCorporate Partners

    MIS as a Discipline

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    MIS as a Discipline

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    LEVELS OF BEHAVIORAL STUDY IN MIS

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    VIRTUAL ORGANIZATION

    1.16

    CORE

    COMPANY

    LOGISTICS

    COMPANY

    DESIGN

    COMPANY

    MANUFACTURING

    COMPANY

    FINANCE COMPANY

    SALES & MARKETING

    COMPANY

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    CHALLENGE OF INFO SYSTEMS

    STRATEGIC: COMPETITIVE & EFFECTIVE

    GLOBALIZATION: MULTINATIONAL INFO

    INFO ARCHITECTURE: SUPPORT GOALS INVESTMENT: VALUE OF INFORMATION

    RESPONSIBILITY & CONTROL: ETHICS

    *