mis fundamentals. what’s in a name ? namepercent management information systems 33% information...
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MIS Fundamentals
What’s in a name ?
Name Percent
Management information systems
33%
Information services 17%
Information systems 14%
Data processing 12%
Information resources management
3%
Others 21%
100%
Names Used Interchangeably
• MIS– Management information systems
• CBIS– Computer-based information systems
• IS– Information systems
• IM– Information management
Definition of a Management Information System
• A management information system is– An integrated user-
machine system– For providing
information– To support the
operations, management, analysis and decision-making functions
– In an organization
• The system utilizes– Computer hardware
and software
– Manual procedures
– Models for analysis, planning, control, and decision making, and
– A database
MIS For strategic and policyplanning and decision making
Management informationFor tactical planning and decision making
Management information foroperational planning decision makingAnd control
Transaction processingInquiry response
StrategicPlanning
ManagementControl
OperationalControl
Information requirements by Decision Category
CharacteristicsOf Information
OperationalControl
ManagementControl
StrategicPlanning
Source
Scope
Level of Aggregation
Time Horizon
Currency
Required Accuracy
Frequency of use
Largely internal
Well defined, narrow
Detailed
Historical
Highly current
High
Very frequent
External
Very wide
Aggregate
Future
Quite old
Low
Infrequent
Data, Information, Knowledge
• DataData – facts, images, or sounds that may or may not be pertinent or useful for a particular task
• Information Information – data whose form or content are appropriate for a particular use
• KnowledgeKnowledge – instincts, ideas, rules, and procedure that guide actions and decisions
--Alter 2002
Programmed vs. Nonprogrammed
• Decisions are programmed to the extent that they are repetitive and routine, to the extent that a definite procedure has been worked out for handling them so that they don’t have to be treated de novo each time they occur
• Decision are nonprogrammed to the extent that they are novel, unstructured, and consequential– There is no cut-and dried method of handling the problem
because it hasn’t arisen before or because its precise nature and structure are elusive or complex or because it so important that it deserves a custom-tailored treatment
TYPES OF INFORMATION SYSTEMSTYPES OF INFORMATION SYSTEMS
DATA WORKERSDATA WORKERS
KIND OF SYSTEM GROUPS SERVEDKIND OF SYSTEM GROUPS SERVED
STRATEGIC LEVEL SENIOR MASTRATEGIC LEVEL SENIOR MANAGERSNAGERS
MANAGEMENT LEVEL MIDDLE MANAGEMENT LEVEL MIDDLE MANAGERSMANAGERS
OPERATIONAL OPERATIONAL OPERATIONAOPERATIONAL LEVEL MANAGERS L LEVEL MANAGERS
KNOWLEDGE LEVEL KNOWLEDGE &KNOWLEDGE LEVEL KNOWLEDGE &
SALES & MANUFACTURING FINANCE ACCOUNTING HUMANSALES & MANUFACTURING FINANCE ACCOUNTING HUMAN RESOURCESRESOURCESMARKETINGMARKETING
--Laudon & Laudon 2002
Information Systems Defined
• An information system can be defined technically as a set of interrelated components that collect, process , store, and distribute information to support decision making, coordination, and control in an organization
• An information system is an organizational and management solution, based on information technology, to a challenge posed by the environment
--Laudon & Laudon 2002
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
COMPUTER-BASED INFORMATION SYSTEMS (CBIS)
• Formal systems
• Fixed definitions of data, procedures
• Collecting, storing, processing, disseminating, using data
INFORMATION SYSTEMSINFORMATION SYSTEMS
ORGANIZATIONSORGANIZATIONS TECHNOLOGYTECHNOLOGY
MANAGEMENTMANAGEMENT
INFORMATIOINFORMATIONN
SYSTEMSSYSTEMS
SOCIOLOGYSOCIOLOGY
POLITICAL POLITICAL SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTER COMPUTER
SCIENCESCIENCEOPERATIONS OPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
APPROACHES TO INFO SYSTEMS
MISMIS
BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES
What Is an Information System?
• An information system can be any organized combination of people, hardware, software, communication networks, and data resources that collects, transforms, and disseminates information in an organization
• People have relied on information systems to communicate with each other using a variety of physical devices (hardware), information processing instructions and procedures (software), communication channels (networks), and stored data (data resources) since the dawn of civilization
• Computer-based information systems (CBIS)
An IS Framework for Business Professionals
System Concepts
• What is a system?• Feedback and control• Other system characteristics
– Environment– Subsystem– Interface– Open system– Adaptive system
What Is a Systems
• A system can be most simply defined as a group of interrelated or interacting elements forming a unified whole
• A system is a group of interrelated components working together toward a common goal by accepting input and producing output in an organized transformation process
Feedback and Control
• A system with feedback and control components is sometimes called a cybernetic system, that is, a self-monitoring, self-regulating system
• Feedback– Is data about the performance of a system
• Control– Involve monitoring and evaluating feedback to
determine whether a system is moving toward the achievement of its goal
Other Characteristics
• A system does not exist in a vacuum, rather, it exists and function in an environment containing other systems
• If a system is one of the components of a larger system, it is a subsystem and the larger system is its environment
• Some of these systems may be connected to one another by means of a shared boundary, or interface
Other Characteristics (Cont.)
• Open system is a system that interacts with other systems in its environment– The system exchanges inputs and outputs with
its environment– It is connected to its environment by input and
output interface
• A system that has the ability to change itself or its environment in order to survive is an adaptive system
What is an Information System?
Input ofData
Resources
Input ofData
Resources
Processing Data
Processing Data
Output ofInformation
Products
Output ofInformation
Products
Control of System PerformanceControl of System Performance
Storage of Data ResourcesStorage of Data Resources
What is a System?
ManufacturingProcess
Input ofRaw Materials
Output ofFinished Products
Environment
Other Systems
Control byManagement
ControlSignals
ControlSignals
FeedbackSignals
FeedbackSignals
System Boundary
Work Systems, Information Systems, and E-Business
• E-business = the practice of performing & coordinating business processes through the extensive use of information technology (IT)– IT = computer and communication technologies– E-business does NOT equal the Internet, though
the growth of the Internet acted as a very powerful catalyst
• Work System = a system in which people and/or machines perform a business process using resources (e.g., information, technology) to create products/services for internal or external customers
• Information System = a work system that processes information, thereby supporting other work systems
– Capture– Transmit– Store– Retrieve– Manipulate– Display
Mason & Mitroff’s Definition of MIS
• An information system consists of at least one person of a certain psychological type who faces a problem within the organizational context for which he needs evidence to arrive at a solution and that the evidence is made available to him through some mode of presentation
Psychological Type
• Thinking-Sensation
• Thinking-Intuition
• Feeling-Sensation
• Feeling-Intuition
Class of Problems
• Structured– Decisions under certainty– Decision under risk– Decisions under uncertainty
• Unstructural– “Wicked” Decision problems
Method of Evidence Generation
• Data based
• Model based
• Multiple models
• Conflicting models
• Learning systems
Organizational Context
• Strategic planning
• Management control
• Operational control
Mode of Presentation
• Personalistic– Drama
• role play
– Art• Graphics
– One-to-one contact group interaction
• Impersonalistic– Company reports– Abstract models
• Computerized information systems
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