3/4/2011

In this topic you will explore how to manage information. Youll start by considering an information system as a way of managing information within an organisation and look at the concept of Information Systems management. You will look at some definitions of Information Systems, their purpose and how they impact on the organisation.

CMI Unit 7004 Strategic Management and Leadership

Section 1 The impact of management information Topic 2: Managing information systems

CMI

7004 Section 1

You will then look at how business information is managed, at the transformation process and how you need to consider it as a strategic resource. Youre consider the information lifecycle and the strategic importance of business information management. Next youre consider a specific example of an information system used for business information management: the management information system (MIS). Youll look at some definitions, the nature and attributes of an MIS and consider strategic Information Systems.
CMI 7004 Section 1 3

Finally, the topic looks at evaluating management information systemsassessing the impact of an information system on the organisation and as a framework for considering the effectiveness of Information Systems overall.

CMI

7004 Section 1

The UK Academy for Information Systems defines information systems as follows:

Youll notice the focus on information technologies. Technology doesnt have to be used to manage these processes but in todays business environment, the majority

Information Systemsare the means by which organisations and people using information organisations and people using information technologies, gather, process,store, use and disseminate information.
`

are.

It may be that there are some manual

or paper-based systems used in some organisations- these are still systems, but are just not technology-based. In this topic, we assume that the processes managed by the Information Systems are technology-based.
5 CMI 7004 Section 1 6

CMI

7004 Section 1

3/4/2011

Laudon and Laudon define information systems as follows:

interrelated components workingtogether to collect, process, store and disseminate collect process store and disseminate information to support decision-making, coordination, control, analysis and visualisation in an organisation.

CMI

7004 Section 1

CMI

7004 Section 1

They highlight that an information system (IS) may also help with analysing problems, understanding complex subjects and designing new products or services. A typical IS is shown on the next slide.

CMI

7004 Section 1

CMI 7004 Section 1

10

` ` `

The input component captures data from the environment or internally from within the organisation. Processing converts this data information. meaningful form which we call into a The output component transmits the processed informationitto people within the organisation who use in conjunction with theirmake decisions. and skills and experience to solve problems An IS is more effective with the feedback subsystem involved in the input element to the people that returns information back

Environme nt

Organisati on

CMI

7004 Section 1

11

Informati on system

CMI

7004 Section 1

12

3/4/2011

Cashmore and Lyall the purpose that an information system is made up of different subsystems with different functions and purposes. Typical purposes are to: ` Collect and store data which may be d converted into information at some later point in time
`

Extend the value chain of the business so that the organisations information system and link with the Information Systems of customers and suppliers. This should result in benefits and improved information flows. These purposes are reflected in the following diagram.

Provide operational information to ensure that everyone can do the job as well as possible and to assist in the general running of the organisation.
CMI 7004 Section 1 13 CMI 7004 Section 1 14

Cashmore and Lyall go on to discuss that in the past the emphasis was placed on collecing and storing data. This was becuase of manual nature is of much of the operational and transactional work. In todays business climate, when much of this work is now processed by information technology, there is a greater focus on gaining good quality information that can be used for strategic purposes to gain competitive advantage.
CMI 7004 Section 1 16

CMI

7004 Section 1

15

Laudon and Laudon discuss how the interdependency between the organisation and IS is increasing. They describe how organisational business strategy, rules and procedures are interdependent with the organisations IS. They suggest that changes to strategy would require changes in software, hardware, databases and telecommunications.

Sometimes, existing systems can be a constraint as they then it all the organisation wants to do, without making a major investment. This interdependency can be represented in the following diagram

procedures are interdependent with the

CMI 7004 Section 1

17

CMI

7004 Section 1

18