Management Information Systems An Introduction

Why Do People Need Information?

Individuals - Entertainment and enlightenment Businesses - Decision making, problem solving and control

MIS 715 Eaton Fall 2001

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
MIS 715 Eaton Fall 2001 3

Data Manipulation
Example: customer survey
Reading through data collected from a customer survey with questions in various categories would be timeconsuming and not very helpful. When manipulated, the surveys may provide useful information.

MIS 715 Eaton Fall 2001

Generating Information
Computer-based ISs take data as raw material, process it, and produce information as output.

Figure 1.1 Input-process-output

MIS 715 Eaton Fall 2001

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
MIS 715 Eaton Fall 2001 6

Management Information Systems

1- System:
Government

Perspectives on Information Systems

2- Sub System:
-- Government of Punjab etc.

Management Information Systems

Perspectives on Information Systems

System:

A group of elements that are integrated with the common purpose of achieving an objective. Physical System: The business firm is a Physical System transforming input (raw material) into output (finished goods or services). Conceptual System: A system that uses conceptual resources (data & information) to represent a Physical System.

Management Information Systems

Perspectives on Information Systems

Data and Information

Management Information Systems

Perspectives on Information Systems

Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory.

Management Information Systems

Perspectives on Information Systems

Data

vs. Information

Data are streams (collection) of raw facts & figures

e.g. Marks of Students in Quiz # 1

Information is Data shaped into meaningful form

Information is a processed form of Data

E.g. List of TOP 5 Students in Quiz # 1

Management Information Systems

Perspectives on Information Systems

Information

system:

Any organized combination of people, hardware, software, communication networks, and data resources that collects, transforms, and disseminates information in an organization

Information system: Three activities produce information organizations need

Input: Captures raw data from organization or external environment Processing: Converts raw data into meaningful form Output: Transfers processed information to people or activities that use it

Management Information Systems

Perspectives on Information Systems

An information system contains information about an organization and its surrounding environment. Three basic activities input, processing, and outputproduce the information organizations need. Feedback is output returned to appropriate people or activities in the organization to evaluate and refine the input. Environmental actors, such as customers, suppliers, competitors, stockholders, and regulatory agencies, interact with the organization and its information systems.

Functions of an Information System

Management Information Systems

Perspectives on Information Systems

Information Systems Are More Than Computers

Using information systems effectively requires an understanding of the organization, management, and information technology shaping the systems. An information system creates value for the firm as an organizational and management solution to challenges posed by the environment.

Management Information System

problem

Computerized Information System Accounting Information System Management Information System Decision Support System

Decisions

information

Solution

Knowledge Based System Others

Management Information Systems

Perspectives on Information Systems

Management Information System

The field that deals with behavioral as well as technical issues and impact of information systems used by managers and employees in the firm regarding Decision Making in problem solving is called Management Information System OR The study of information systems focusing on their use in business and management.

Management Information Systems

Perspectives on Information Systems

Organizational dimension of information systems

Hierarchy of authority, responsibility
Senior management Middle management Operational management Data workers Production or service workers

Management Information Systems

Perspectives on Information Systems Business organizations are hierarchies consisting of three principal levels: senior management, middle management, and operational management. Information systems serve each of these levels. Scientists and knowledge workers often work with middle management.

Levels in a Firm