MIS MODULE 1

Management Information Systems

 Why Do People Need Information?

 Individuals - Entertainment and enlightenment

 Businesses - Decision making, problem solving and control

THE Economies of today
 Knowledge-based economies
 Productivity
 New products & services
 Knowledge as an asset
 Time-based competition
 Shorter product life
 Turbulent environment
 Limited employee knowledge base

Transformation in enterprises
 Flattening
 Decentralization
 Flexibility
 Location independence
 Low transaction costs
 Empowerment
 Collaborative work
EMERGENCE OF THE
DIGITAL FIRM
 Digitally-enabled relationships with customers, suppliers, employees
 Core business processes via digital networks
 Digital management of key assets
 Rapid sensing & responding to change
What is a system ?

Data, Information and Systems

 What Is a System?
 System: A set of components that work together to achieve a common
goal

 Subsystem: One part of a system where the products of more than one
system are combined to reach an ultimate goal

 Closed system: Stand-alone system that has no contact with other systems

 Open system: System that interfaces with other systems

What is an Information System?
 An organizational and management solution, based on information technology, to
a challenge posed by the environment” (Laudon & Laudon, 1998)
 A collection of hardware, software, networks, data, procedures and … people.
 An organized combination of people,hardware, software, networks and data
resources that collects, transforms and
disseminates information in an organization” – O’brien

IT for improving organizational performance

• Previously:
– “(business) data processing”
– “management information systems”
• Now the field is:
– “information systems” (or IS)
The Mission of Information Systems
Early days: “paperwork factories”
– Objectives of information systems defined by
productivity measures

• MIS era: produced summary reports

– for “management by exception” for all levels of
Management

Today:
– Improve the performance of (people in) organizations
through the use of information technology
– Objective: performance improvement
– Focus is the people
– Resource for this improvement is IT
– Use of technology with IS for strategic advantage

 Data vs. Information

 Data
• A “given,” or fact; a number, a statement, or a picture
• Represents something in the real world
• The raw materials in the production of information

 Information
• Data that have meaning within a context
• Data in relationships
• Data after manipulation
 Input-process-output

Characteristics of useful information

Humans Vs Computers

Qualities of humans and computers that contribute to synergy

The Benefits of Human-Computer Synergy

 Synergy
• When combined resources produce output that exceeds the sum of
the outputs of the same resources employed separately
 Allows human thought to be translated into efficient processing of large
amounts of data
 Components of an information system
Four Stages of Data Processing
 Input: Data is collected and entered into computer.

 Data processing: Data is manipulated into information using

mathematical, statistical, and other tools.

 Output: Information is displayed or presented.

 Storage: Data and information are maintained for later use.

Systems & Sub systems

Several subsystems make up this corporate accounting system.

Examples of Information Systems
 Managing accounting information across Asia
 Living in Moscow yet working in Los Angeles
 Tracking FedEx or UPS shipments
 Re-engineering the retail industry for books (Amazon), travel products
(Travelocity, eLong), news services, government services (ESDLife)
 Timetable and classroom scheduling at Universities
 Passenger tracking and airline frequent flyers
 Accessing the knowledge of all employees worldwide
Strategic Level Systems
Information Systems
that support long range
planning of top
management

Management Level
Systems
Support, Monitoring,
Controlling, Decision
making & administration

Operational Level
Systems
Produces routine
answers , nuts & bolts of
business
Unlimited Information –
Opportunity or Hazard?
 In late summer 1994, a mathematics professor found errors in Intel’s Pentium
Processor.
 When Intel refused to respond, he posted his comments on a website.
 Later, Intel announced that the error would only happen once in 9 billion
calculations. Critics disagreed, noting that one would never know if a calculation
was correct or not.
 Within 1 month, IBM stopped shipping Pentium-based PCs.
 In November, Intel admitted the problem, and offered a replacement chip “if you
can prove the need”.
 By late December, following huge public outcry, Intel offered the replacement
chip to anyone who asked.