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    ManagementManagement

    Information SystemInformation SystemLecture Notes for BusinessLecture Notes for Business

    IntroductionIntroduction

    By Fahmy RadhiBy Fahmy Radhi

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    Management Information SystemManagement Information System

    (MIS)(MIS)

    Interrelated components that collect,Interrelated components that collect,

    process, store and disseminateprocess, store and disseminate

    information to support decisioninformation to support decision

    making and Problem Solvingmaking and Problem Solving

    Information that rely on computerInformation that rely on computer

    hardware and software for processinghardware and software for processing

    and disseminating informationand disseminating information

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    Information System withinInformation System within

    an Organizationan Organization

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    Functions of an Information SystemFunctions of an Information System

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    Functions of an Information SystemFunctions of an Information System

    Input – the collection of raw data forInput – the collection of raw data forprocessing information systemprocessing information system

    Processing – the conversion of dataProcessing – the conversion of datainto information for moreinto information for moremeaningfulmeaningful

    Output – the distribution ofOutput – the distribution of

    processed informationprocessed information Feedback – output that is returnedFeedback – output that is returned

    to help evaluate or correct inputto help evaluate or correct input

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    MIS ActivitiesMIS Activities

    MISMIS is activities to manage informationis activities to manage informationfor problem solving and decision makingfor problem solving and decision makingin an entity by managed the followingin an entity by managed the following

    activities:activities: c!uiring information by gathering datac!uiring information by gathering data

    and processed the data to be the valuableand processed the data to be the valuableinformation e"cientlyinformation e"ciently

    #sing the information in the most e$ective#sing the information in the most e$ectivewayway %iscarding the information at the proper%iscarding the information at the proper

    timetime

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    Differences between DataDifferences between Data

    and Informationand Information

    %ata consists of facts and &gures that%ata consists of facts and &gures thatare relatively meaningless to user'are relatively meaningless to user'('g' the number of hours worked for('g' the number of hours worked for

    each employee in the companyeach employee in the company Information is processed data that areInformation is processed data that are

    more meaningfully' ('g' the hoursmore meaningfully' ('g' the hours

    works for each employee multipliedworks for each employee multipliedby the hourly rate, the out putby the hourly rate, the out putinformation is the gross earninginformation is the gross earning

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    Skills required in MISSkills required in MIS

    )')' *omputer literacy*omputer literacy understanding of computer terminologyunderstanding of computer terminology

    a recognition of the strength and weakness of thea recognition of the strength and weakness of the

    computercomputer

    an ability to use the computeran ability to use the computer

    +'+' Information literacyInformation literacy #nderstanding how to use information at each#nderstanding how to use information at each

    step of problem solving processstep of problem solving process

    #nderstanding where information can be obtained#nderstanding where information can be obtained

    #nderstanding how to share information with#nderstanding how to share information with

    otherother

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    Computer-based informationComputer-based information

    SubsystemSubsystem  (lectronic data processing (%P- –(lectronic data processing (%P- –

    produces some information as byproduces some information as byproduct of the accounting processproduct of the accounting process

    called ccounting Information Systemcalled ccounting Information SystemIS-IS-

    .anagement information system .IS-.anagement information system .IS-

    – the computer application should be– the computer application should beimplemented for the primary purposeimplemented for the primary purposeof producing management information'of producing management information'

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    Computer-based informationComputer-based information

    SubsystemSubsystem %ecision support system %%S- – an%ecision support system %%S- – an

    information producing system aimed at ainformation producing system aimed at aparticular problem that a manager mustparticular problem that a manager must

    solve and decision'solve and decision'

    O"ce automation O- – facilities ofO"ce automation O- – facilities ofcomputer and communication thatcomputer and communication thatincrease productivities for manager andincrease productivities for manager and

    o"ce worker in conducting their activitieso"ce worker in conducting their activities

    (/pert System (S- – computer application(/pert System (S- – computer applicationthat can be used by managers in problemthat can be used by managers in problemsolving and decision makingsolving and decision making

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    Computer-based informationComputer-based information

    SubsystemSubsystem

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    Functional InformationFunctional Information

    SubsystemSubsystem

    0uman 1esources Information System0uman 1esources Information System

    .anufacturing Information System.anufacturing Information System

    .anufacturing Intelligence Subsystem

    .anufacturing Intelligence Subsystem

    Industrial (ngineering SubsystemIndustrial (ngineering Subsystem

    Financial Information SystemFinancial Information System

    .arketing Information System.arketing Information System .arketing 1esearch Subsystem.arketing 1esearch Subsystem

    .arketing Intelligence Subsystem.arketing Intelligence Subsystem

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    Main eason interest in MISMain eason interest in MIS

    )')' Increasing *omple/ity of 2usinessIncreasing *omple/ity of 2usiness

    ctivities in3uenced by:ctivities in3uenced by:4 International economicInternational economic

    4 5orldwide *ompetition5orldwide *ompetition

    4 Increasing comple/ity of 6echnologyIncreasing comple/ity of 6echnology

    4 Shrinking time framesShrinking time frames

    +'+' Improving rapidly *omputerImproving rapidly *omputer

    *apabilities*apabilities

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    Information SpecialistsInformation Specialists 

    System analyst is an e/pert whoSystem analyst is an e/pert whoworks with user in developing systemworks with user in developing systemat de&ning problems and in preparingat de&ning problems and in preparingwritten documentation of how thewritten documentation of how the

    computer will assist in solving thecomputer will assist in solving theproblem'problem'

    %atabase administrator works with%atabase administrator works with

    user and system analyst in creatinguser and system analyst in creatingthe data needed to produce thethe data needed to produce theinformation needed by usersinformation needed by users

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    Information SpecialistsInformation Specialists

    7etwork specialist works with user and7etwork specialist works with user andsystem analyst in establishing the datasystem analyst in establishing the datacommunication network that ties togethercommunication network that ties togetherwidespread computing resourceswidespread computing resources

    Programmers use the documentationProgrammers use the documentationprepared by the system analyst to createprepared by the system analyst to createthe software program that lead thethe software program that lead the

    computer to transform data intocomputer to transform data intoinformation needed by usersinformation needed by users

    Operators operates the computingOperators operates the computinge!uipment and using software programe!uipment and using software program

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    Information SpecialistsInformation Specialists