Management Information

System
September 9, 2010
Lecturer: Everol Anderson
 Lesson

Information Technology in
the Organization
System:

•A set of elements or components that interact to accomplish goals

•A combination of components working together

System Elements:

•Inputs

•Processing mechanisms

•Outputs
System Example:
Management information Systems (MIS), sometimes referred to as
Information Management and Systems, is the discipline covering the
application of people, technologies, and procedures — collectively
called information systems — to solving business problems.
Management Information Systems are distinct from regular information
systems in that they are used to analyze other information systems
applied in operational activities in the organization
Schematic model of an Information System

Feedback

Input Processing Output

Input, Processing, Output :

• Input

oThe activity of gathering and capturing data

o Whatever goes into the computer
• Processing

o Converting or transforming data into useful outputs

• Output

o Useful information, usually in the form of documents and/or

reports
o Anything that comes out of a computer
Feedback:

• Feedback

o Output that is used to make changes to input or processing

activities

• Forecasting

o A proactive approach to feedback

o Use for estimating future sales or inventory needs

Examples of Information Systems:

• Executive Support System (senior management)

• Management Information System (middle managers )

• Decision Support System

• Knowledge Management System (Knowledge workers)

• Office Automation System

Manual vs Computerized Systems:

• Manual systems still widely used

o E.g., some investment analysts manual draw charts and trend lines to assist them in making
investment decisions

•
Computerized systems

o E.g., the above trends lines can be drawn by computer

• Evolution

oMany computerized system began as manual systems

oE.g., student registration
Computer –based Information Systems:

• A CBIS is composed of…

o Hardware
o Software
o Databases
oTelecommunications
o People
o Procedures

• Together they are…

o Configured to collect, manipulate, store, and process data into information

Hardware:

• Computer equipment used to perform input, processing, and

output activities

• The objects that you can actually touch, like disks, disk drives,
display screens, keyboards, printers, boards, and chips
Software:

• Computer programs that govern/determine/control the operation

of the computer

• Computer instructions or data

Software is often divided into two categories. Systems software includes the
operating system and all the utilities that enable the computer to function.
Applications software includes programs that do real work for users. For
example, word processors, spreadsheets, and database management systems
fall under the category of applications software
Database:

• An organized collection of facts and information

• A collection of information organized in such a way that a

computer program can quickly select desired pieces of data

You can think of a database as an electronic filing system. Traditional

databases are organized by fields, records, and files. A field is a single piece of
information; a record is one complete set of fields; and a file is a collection of
records.
Telecommunications:

• The electronic transmission of signals for communications;

enables organizations to link computer systems into effective
networks

• Refers to all types of data transmission, from voice to video

Networks:

• Used to connect computers and computer equipment in a

building, around the country, across the world, to enable electronic
communications

• A group of two or more computer systems linked together

Internet and Intranet:

• Internet
oThe world’s largest telecommunications network
o A network of networks
o Free exchange of information
o A global network connecting millions of computers

• Intranet
o A network that uses Internet technology within an organization
o A network belonging to an organization
People and Procedures:

•People
oThe most important element in most computer-based information
systems
o Includes people who manage, run, program, and maintain the
system (IT professionals)
o You!

•Procedures

o Includes the strategies, policies, methods, and rules for using the
CBIS
 Data vs Information

Data: Data can exist in a variety of forms -- as numbers or text on

pieces of paper, as bits and bytes stored in electronic memory, or as
facts stored in a person's mind. (raw facts)

Information: A collection of facts organized in such a way that they

have additional value beyond the value of the facts themselves
 Types of Data
Data Represented by

Alphanumeric data Numbers, letters, and other

characters

Audio data Sound, noise, tones

Image Graphic images or pictures

data

Video data Moving images or pictures

 Data  Information

Data Transformation Information

 Characteristics of
Valuable Information

• Accurate, complete, economical, flexible, reliable,

relevant, simple, timely, verifiable, accessible, secure
 Terminology

Process: A set of logically related tasks performed to achieve a

defined outcome

Knowledge: An awareness and understanding of a set of

information and how that information can be made useful to
support a specific task

Knowledge base: The collection of data, rules, procedures, and

relationships that must be followed to achieve value or the proper
outcome
 Organizations and Information Systems

Organization:

o A formal collection of people and other resources established to

accomplish a set of goals

Value Chain:

oTerm coined by Michael Porter in a 1965 article in the Harvard Business

Review
oA series of activities that includes inbound logistics, warehouse and
storage, production, finished product storage, outbound logistics,
marketing and sales, and customer service
 Organizations and Information Systems

Hierarchical organizational structure:

o Series of levels
o Those at high levels have more power and authority within an
organization

Flat organizational structure:

o An organizational structure with a reduced number of layers of

management
 Organizations and Information Systems:

Organizational structure:

o Organizational subunits and the way they are related to the overall
organization

Traditional organizational structure:

oMajor department heads report to a president or top-level manager

 Organizational Culture
and Change

Organizational Change:

o Deals with how for-profit and non-profit organizations plan for,

implement, and handle change

Organizational Learning:

oThe way organizations adapt to new conditions or alter their practices

over time
 Competitive Advantage

Competitive advantage:

o A position, product, service, etc., within a business that improves a

position within a market with respect to competitors

Porter’s ‘Five force’ model of competitive advantage:

oIdentifies factors that lead to competitiveness

Competitive Advantage
 Strategic Planning for Competitive Advantage

Four techniques:

o Strategic alliances (aka strategic partnerships)

o Creating new goods or services

o Improving existing goods or services

o Using information systems for strategic purposes

 Strategic Planning for Competitive Advantage
1.Strategic alliance
An agreement between two or more companies that involves the joint
production and distribution of goods and services
E.g., Chrysler + Daimler Benz
2.Creating new goods or services
A company may become stagnant without the introduction of new goods
and/or services
E.g., Compaq, Dell
3.Improving existing goods or services
Small variations to existing goods or services, and/or complete modifications
E.g., “light” foods
4.Using information systems for strategic purposes
IS for improving organizational effectiveness
E.g., SABRE (airline reservation system)