Management Information Systems S-01

Introduction to Information Systems

• Information Technology supports every business function.
• To be a successful manager, one should understand how information technology can provide better products, enhance existing services, and create new business opportunities.
• This includes leveraging IT tools to streamline operations, improve communication, and increase efficiency. Effective use of technology can also help organizations make data-driven decisions, improve customer relationships, and stay competitive in the market.
• Furthermore, IT can provide real-time feedback and analytics, allowing managers to identify areas of improvement and make data-informed decisions to optimize business outcomes.

Advances in Information Systems

• Social networking sites are a significant advancement.
• Big data has numerous applications in science and technology.
• Mobile applications are widely used in various sectors, such as BFSI (Banking, Financial Services, and Insurance).
• Automation is being used in various industries, including Education and Retail.
• Artificial Intelligence (AI) is being used for decision making, among other applications.

Impact on Business

• Globalization has been facilitated by information systems.
• Information systems improve top-line and bottom-line performance.
• Informed decision making is enabled by information systems.
• Customer satisfaction is increased through the use of information systems.

Management and its Functions

• Management is the process of directing tasks and organizing resources to achieve organization goals.
• The four main functions of management are:
  • Planning
  • Organizing
  • Leading
  • Controlling

Planning

• Planning involves establishing organization goals.
• Developing strategies to achieve goals is a key aspect of planning.

Organizing

• Organizing involves developing the structure of the organization.
• Acquiring human resources is a crucial part of organizing.

Leading

• Leading involves motivating and managing employees.
• Forming task groups is an essential function of leading.

Controlling

• Controlling involves evaluating performance.
• Controlling the organization's resources is a key aspect of this function.

Levels of Management

• There are three levels of management:
  • Top management
  • Middle management
  • First-line management

Top Management

• Top management establishes the goals of the organization.
• Interacting with external representatives, such as financial institutions and important suppliers, is a key function of top management.

Middle Management

• Middle management allocates resources to accomplish top management's objectives.

First-Line Management

• First-line management supervises day-to-day operations.

Activities of an Organization

• There are three main activities of an organization:
  • Strategic planning (long-range plans)
  • Tactical (budgets and tactical plans)
  • Operational (day-to-day transactions)

Framework for Information Systems

• Each level of management (operational, tactical, and strategic planning) requires specific information systems.

Operational Systems

• Operational systems are characterized by:
  • Repetitiveness (daily, weekly, monthly)
  • Predictability
  • Emphasis on the past (detailed nature)
  • Internal origin (data comes from internal sources)
  • Structured form (format of input and output data is highly structured)
  • Great accuracy (data input and output are carefully checked)

Tactical Systems

• Tactical systems provide middle-level managers with information to monitor and control operations and allocate resources.
• Tactical systems generate a variety of reports, including:
  • Summary reports
  • Exception reports
  • Ad hoc reports
• Tactical systems are characterized by:
  • Periodic nature (information is often produced periodically)
  • Unexpected findings
  • Comparative nature (information is usually comparative in nature)
  • Summary form (information is usually not detailed, but in summary form)
  • Both internal and external resources (data used for input may extend beyond internal sources)

Strategic Planning Systems

• Strategic planning systems are designed to provide top managers with information to assist in making long-range planning decisions.
• Strategic planning systems are characterized by:
  • Ad hoc basis (information may be produced regularly or periodically)
  • Unexpected information
  • Predictive nature (information is usually predictive of future events)
  • Long-range planning (information is usually not detailed, but in summary form)
  • External data (a large part of the data used for input may come from external sources)
  • Unstructured format (data used for input may contain unstructured data)
  • Subjectivity (data used for input may be highly subjective)

Comparison of Information Systems

• The characteristics of Operational, Tactical, and Strategic Planning systems can be compared in terms of:
  • Frequency
  • Dependability of results
  • Time period covered
  • Level of detail
  • Source of data
  • Nature of data
  • Accuracy
  • Typical user
  • Level of orientation

Learn about the basics of management information systems, including its impact on business, functions of management, and levels of management.