ion and information system

8/3/2019 ion and Information System

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Organisation And Information

System


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Changing environment & its impact on

business Information systems impact business firm in

basically two ways:

1) Economic Impacts2) Orgainisatioal behavioural impacts


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Economic Impacts

From the point of view of economics, IT

changes both the relative costs of capital and

the costs of information. Information systems

technology can be viewed as a factor of

production that can be substituted for

traditional capital and labor.


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MANAGEMENT INFORMATION

SYSTEMS

MIS planning for, development,

management, and use of IT tools to help

people perform all tasks related to

information processing and management

Three key resources in MIS

1. Information

2. People

3. Information technology


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Information Resource

Intellectual asset hierarchy data,information, business intelligence,knowledge

Data raw facts that describe a particularphenomenon such as the currenttemperature, the price of movie rental, or

your age Information data that have a particular

meaning within a specific context


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Data becoming information

04/21/1944

The date an employee was born

How soon will this employee retire? What do we do when they retire?

How will it impact us when she retires?

Do we want to convince her not to retire?

Do we want to offer early retirement?


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Business intelligence (BI) collectiveinformation about

Customers

Competitors

Business partners

Competitive environment

BI is information on steroids BI can help you make important, strategic

decisions


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Information Resource Quality

Attributes

Timeliness

When you need it

Describing the right time period

Location (no matter where you are)

Form (audio, text, animation, etc)

Validity (credibility)

Lack of any of the above can create GIGO(garbage-in,garbage-out) in a decision-making process


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Knowledge broad term that can describe

many things

1. Contextual explanation for business intelligence

2. Actions to take to affect business intelligence

3. Intellectual assets such as patents and

trademarks

4. Organizational know-how for things such as bestpractices


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Information Resource What It

Describes

Internalinformation specific operational

aspects of the organization

Externalinformation environment

surrounding the organization

Objectiveinformation quantifiably

describes something that is known

Subjectiveinformation attempts to

describe something that is unknown


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People Resource

People are the most important resource in

any organization, with a focus on

Technology literacy

Information literacy

Ethical responsibilities


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People Resource

Technology-literate knowledgeworkerknows how and when to apply technology

Information-literate knowledgeworker

Can define information needs Knows how and where to obtain information

Understands information

Acts appropriately based on information

Ethics principles and standards that

guide our behavior toward other people


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Definitions ofManagement

Information Systems

B. Information: What is information?

1. Data (raw material)

Alph

a-numeric Symbolic

Stored facts

inactive (they exist)

technology based gathered from various places


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Information: What is information?

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?


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6. Knowledge/Power

7. Send/ReceiveMessages

8. A definition: Information is data that has been

processed into a form that is meaningful to the

recipient (USER) and is of real or perceived value

in current or prospective actions or decisions.


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Transforming Data Into Information

Data InputsData Inputs Information OutputsInformation Outputs

Capture

Manipulation

Storage

Provision of Access

at User Location

External

Data

Internal

Data

Information System

Query Response

Decision Outcome

Expert-System Advice

TransactionDocument

Report

Organization

Environment


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Organizational Systems

b. The Organization as a system: The focus is on

interdependency of the subsystem components of

the system.

1. Subsystems: production, managerial,adaption/innovation subsystem

2. Each subsystems has goals and contributes or may be

not to the whole system

3. thus encouraging the interdependency of thesubsystems.

4. The interdependency depends on COMMUNICATION.


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5. Each specialized function (marketing, manufacturing,

etc) develop a distinctive nucleus of operating

procedures, values, and information processing

requirements.

The adaptive (Strategic) may be oriented to: change,

innovation, the environment, and the future.

The Managerial component is oriented toward: growth,

stability, efficiency, and "speed" in decision making.

The production component may be keyed to: efficiency,

rationalization, and careful programming of activities.


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6. The Open systems approach to organizations

a. differentiate functions to cope with environmental change

and Complexity.

b. Organizations must design integrative mechanisms to

coordinate differentiated tasks and design feedback systemsfor adaption.

c. Organizations must also develop/incorporate multiple

paths to achieve the goals.

Example: MicroSoft- Goal To be the largest Software

company. Started withDOS and developed NEWproducts, marketing strategies.


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Information Systems

E. 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 may not

lend itself to computerization, yet!

3. Formal information: Organized information with aspecific purpose following rules and procedures (highlystructured)


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Information Systems

Zwass, f1.2, p14


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Information Systems

F. 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 and processed in a prior

period.

3. The data/information storage is added. Davis & Olson 288, 289


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Information Systems

G. Management Systems

1. Primary function(s) mediate between the

organization and the immediate task

environment.

customers

suppliers

processes


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Management Systems

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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Management Systems

3. Management is the work involved in combining

and directing the use of resources to achieve

particular purposes

Leading


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Levels of management

1. Lower level management makes decisions that

affect day to day operations.

Programmed decisions that are predetermined by rules

and procedures. They lead to a desired result. The information needs of lower-level mgrs. can be 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 decisions that usuallyinvolve time periods of up to two years.

ManyMid-level mgmt decisions are non-programmed

decisions. No specific predetermined steps cab be

followed to each

solution. The information needs ofMid-level mgrs. must be

specific.


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3. Top-level mgrs. provide direction for the

company by planning for the next five years +.

Top-level mgrs. make strategic decisions that involve a

great deal of uncertainty. Top-level mgt. decisions are non-programmed

decisions.

4. Today ( ) Strategic and Management levels are

combined. Why?


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What do information systems do

3. Decision Support Systems (DSS): Designed to

support individual and collective decision making.

4. Executive Information Systems (EIS): Support

the work of senior executives (via themselves oran analysts) with access to company data and

general information on the industry and economy.


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What do information systems do

5. Office Information Systems (OIS): Support and

coordinate knowledge work in an office

environment by handling documents and

messages in a variety of forms- text, image, voice,multimedia, video, fax, etc

Zwass, fig 1.1 p 9

ion and information system

Documents