Chapter 6 Management of Information Systems

and Management Innovation

Preface

“You can never plan the future by the past”

-- Edmund Burke

Objectives

After studying the chapter, students should be able to..•Explain definition of Management Information Systems (MIS)•Identify benefits of Information Systems for businesses•Explain process of Information System•Identify the roles of Information Systems • Explain the relationship between MIS and Management Innovation in term of productivity tools

Content

• Information Systems• MIS• MIS & MGT. INNOV.• Summary

Content

• Information Systems

• MIS• MIS & MGT. INNOV.• Summary

Information SystemsWhat is an information systems?1. Does an information system have to have a computer?2. Think of 3 examples of an information system3. There are 3 essential elements to any information system, what are they?4. How do you know if an information system is effective?

Information SystemsSo Why Use A Computer?1. A PC can manipulate data much faster than a human.

2.They are cheaper than human labour3.They do not make mistakes4.Data can easily be moved or copied in a PC

Information SystemsData Processing

Major steps and functions of data processing

MISEX.1 Identify steps of information system from TPS structure below,

1. Input2. Proces

s3. Outpu

t

Information Systems

• Manager uses information for current or potential decision making. Business decision making is the selection of an action, from among two or more alternatives, to solve a business problem. If no problem exist, considering alternatives and making decision has no need.

Information and Problem

Structure of typical problem

Information Systems

Problem detection requires 4 identifiable parts:•Measurable expectation (goals, objectives, or standards)•Means for measuring current system performance•Tolerance filter to rank and separate the significant from insignificant problems•Forecasting unit to project performance trends

Problem Detection

Information SystemsProblem-Solving Cycle

Problem-solving cycle

Information SystemsInformation’s Attributes •Accuracy•Verification•Completeness•Timeliness•Relevance

Information SystemsInformation and Levels of an Organization

Structure and Types of Business Decision

Information SystemsContinuum of Information Systems

Problem-solving cycle and information systems

MISEX.2 Determine transaction problem in TPS structure of WalCom Mobile company below,

…………………………………………………………………………………………………………………………………………………………………………………………………………….

Content• Information Systems• MIS

• MIS & MGT. INNOV.• Summary

MISDefinition of Management of Information Systems (MIS)•Management information systems (MIS) are applying computer-base for managing information in organizations for management roles such as interpersonal roles, informational roles and decisional roles. (A. Tawata, 2006)

•A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization. (Lecture content, 2012)

•A system for providing information to meet problem-solving needs. (M.P. Martin: 1995)

MISObjectives of an Effective MIS• Facilitates the decision Making

Process• Provides requisite information to

each level of management• Helps in highlighting critical factors &

issues• Supports decision making structured

& unstructured problem environment• Provides a o System of People, Computers and

Procedures o Interactive query facilities o Documents for collecting, sharing,

retrieving & Transmitting information to the users

MISMIS Components

MIS Process

***MIS added 2 more Min these 5: VI. MOVEMENT, VII. MESSAGE that means……

MIS

Feedback

MenMachineMethodMaterialMessageMovement

MIS

Major Types of MIS

MIS

Alternative Generator Systems: Gismo

MIS

Alternative Generator Systems: Gismo

MISTPS

PA: GISMO

PD: QMS

DS-SP: ESDS-

SSP: ES

EIS

MISEX.3 Identify appropriate types of MIS Walcom should adopt from TPS structure below,

1. TPS2. QMS3. GISMO4. DSS5. ES6. EIS

MISRoles of MIS•Support Business Processes and Operations•Support Business Decision Making•Support strategies for Competitive Advantage

MISMIS Advantages to an Organization1. Quickly and timely access information 2. Support executives making decision, setting and adjusting strategies and operational plans. 3. Show how an operation accords to an organization goal. It’s adopted to monitor an operation.4. Reduce organizations’ cost because of time

MISMain MIS Strategies • Cost Leadership• Differentiation• Innovation• Growth• Alliances

Content

• Information Systems• MIS• MIS. & MGT. INNOV.• Summary

MIS & MGT.INNOV.Viewpoints•MGT. INNOV. is viewed as one of major tools to resolve the problem behind any kind of management in the organization•MIS is viewed as one of supporting tools to operate the organization

MIS and MGT.INNOV

Supply chain information need ( adapted from Bozarth & Handfield: 413)

Integration: Supply Chain Information Systems (SCIS)

MIS and MGT.INNOV

Supply chain information flow ( adapted from Bozarth & Handfield: 414)

IntegrationDownstream Upstream

MIS and MGT.INNOV

A Map of Supply Chain Management Information Systems ( adapted from Bozarth & Handfield: 414)

IntegrationDownstreamUpstream

Content

• Information Systems• MIS• MIS & MGT. INNOV.• Summary

Summary.