Management InformationManagement Information Systemy

Presented ByPresented ByNilesh Gol (PM, CSSI)

l il h@ ilgolnilesh@gmail.com

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• Basic Book– James A O'Brien, Management Information system 7th edition Tata McGraw‐Hillsystem, 7th edition, Tata McGraw Hill

• References– Ralph Stair and George Reynolds, Principles of Information Systems, 10th edition, New Delhi: Pearson Education.

– James A. O'Brien and George Marakas, Management Information Systems, 9th Edition, New York: McGraw‐Hill

– Laudon and Laudon, Management Information systems, 10th edition, Pearson Education.systems, 10th edition, Pearson Education.

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• WebsitesWebsites– www.mhhe.com/obrien

h ll /l d– www.prenhall.com/laudon

• Websites for Nepalese Context– www nta gov np (MIS report)– www.nta.gov.np (MIS report)– www.moic.gov.np

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Framework of MISFramework of MIS

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Foundation of Information Systems in Business

• Information System In Businessy• The Components of Information System

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ManagementManagement• Management is the process of getting activities g p g gcompleted efficiently and effectively with and through other people.

• Management functions: Planning, Organizing, Staffing, Directing, Coordinating, Reporting, g, g, g, p g,Budgeting, Controlling

• Management roles:Management roles:– Interpersonal roles: Leader– Informational roles:Monitor SpokespersonInformational roles:Monitor, Spokesperson– Decisional roles: Entrepreneur, Disturbance handler, Resource allocator, Negotiator, g

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Data vs InformationData vs. Information

Data: raw factsInformation: collection of facts organized inInformation: collection of facts organized in such a way that they have value beyond the facts themselvesfacts themselves

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Table 1 1Table 1.1

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System conceptEnvironment

FeedbackSi l

FeedbackSignals

Control byManagement

ControlSignals

ControlSignals

SignalsSignals

ManufacturingInput of Output ofProcessRaw Materials Finished Products

System Boundary

Other Systems9

Fig 1 2Fig 1.2

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Management Information System (MIS):

Management level• Inputs: High volume data• Processing: Simple models• Outputs: Summary reports• Users: Middle managers

l A l b d iExample: Annual budgeting

Management Information System (MIS)

Management Information System (MIS)

• Structured and semi‐structured decisions

• Report control oriented• Report control oriented

• Past and present datap

• Internal orientation

IT and ISIT and IS

• What is Information Technology?– Any form of technology used by people to handle y gy y p pinformation.

• What are Information Systems?• What are Information Systems?– Integrated components processing, storing and di i i i f i i i idisseminating information in an organisation.

– Interdisciplinary study of systems that provide information to users in organisations.

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Pyle, I.C. & Illingworth, V. (Eds) (1996).  Oxford Dictionary of Computing, 4th Edition.  Oxford / New York: Oxford University Press

Experiences of IT and ISExperiences of IT and IS

l f• Examples of IT– Hardware (PC, UNIX server)– Software (e‐mail, Internet, Windows, Word)– Consumer devices (mobiles, train times)( , )

• Examples of ISFile systems databases e mail servers / clients– File systems, databases, e‐mail servers / clients

– e‐commerceSAP t d t d– SAP, student records

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Characteristics of Valuable InformationCharacteristics of Valuable Information

• Table 1.2

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Attributes of Information QualityAttributes of Information Quality

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Fig 1 3• Elements 

of systemFig 1.3 of system and goals

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System classificationsSystem classifications

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System PerformanceSystem Performance

Efficiency: output/inputEffectiveness: extent to which system attainsEffectiveness: extent to which system attains its goalsP f d d ifi bj i fPerformance standard:  specific objective of a system

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Fig 1 5Fig 1.5

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Fig 1 6Fig 1.6

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Fig 1 8Fig 1.8

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Components of an Information SystemComponents of an Information System

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Why is IS Important?Why is IS Important?

• For an organisation to survive and prosper– More locations (networking, Internet)( g, )– New products and servicesImprove jobs and work flows:– Improve jobs and work flows:

• EfficiencyC• Cost

• Ethical and social issues

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Information EconomyInformation Economy

60%

70%

% SERVICE

40%

50%% SERVICE

% WHITE COLLAR

% BLUE COLLAR

20%

30% % FARMING

0%

10%

YEAR

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YEAR

WHY INFORMATION SYSTEMS?

Business Processes

SupplyChain

EnterpriseManagement

CustomerManagement

KnowledgeManagementChain

ManagementManagement Management Management

FirmProfitability

andStrategicPosition

DataCollectionandStorage

TransformationIntoBusinessSystems

Dissemination

Planning Coordinating Controlling Modeling andDecision Making

Information Processing Activities

Business Value

Management Activities

Figure 1‐4

Major Roles of Information Systemsj y

Support of StrategicStrategicAdvantage

Support of Managerial

Decision Making

Support of Business Operationsp

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TOWARD THE DIGITAL FIRM

The Interdependence Between Organizations and Information Systems

Trends in Information Systems

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Types of Information Systemsyp y

Information Systems

Operations

Support

Management

Support

Systems Systems

Transaction

Processing

Process

Control

Enterprise

Collaboration

Management

Information

Decision

Support

Executive

Information

Systems Systems Systems Systems Systems Systems

Other Categories of Information Systems

Expert Systems

Knowledge Management Systems

Functional Business Systems

Cross‐Functional Information Systems

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MIS OutputsMIS Outputs

Scheduled reportsDemand reportsDemand reportsException reports

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Management Challenges of the E‐Business Enterprise

•Business Strategies•Business ProcessesBusiness Processes•Business Needs•IS Human Resources

•IS Development

•Customer Relationships•Business Partners

fu n n

•Suppliers•Business Customers

•IT Infrastructure•IS Performance

Ethi l C nsid ti nsEthical ConsiderationsPotential Risks?Potential Laws? P ibl R ?

•Organization Structure•and Culture•User Acceptance

Possible Responses?p

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