MIS Chapter 1.pptx

UNIT ONE Introduction To Management Information System 08/20/2024 1 At the end of this unit, you will be able to: Define information systems, Describe basic concepts and issues in IS (information systems) management, Identify inform...

UNIT ONE Introduction To Management Information System 08/20/2024 1 At the end of this unit, you will be able to: Define information systems, Describe basic concepts and issues in IS (information systems) management, Identify information system resources, Describe basic concepts in management, Identify the need to manage IS, Identify key issues and principles for effective IS management, Define management information systems. 08/20/2024 2  DEFINITION OF Management Information Systems Management information Systems (MIS) are defined by different scholars as follows:  Management Information Systems (MIS) is the term given to the discipline focused on the integration of computer systems with the aims and objectives of an organization.  Information systems management is executing the management functions and roles of managers on the day to day running of IS in organizational context. Information systems management is the planning, acquisition, development and use of information systems.  is the application of information technology to support the major functions and activities of either a private sector business or public sector institution.  is the process of creating, implementing and reviewing plans concerned with information, information systems and information technology. 08/20/2024 3  1.1.Meaning and Role of Information & System Information Systems (ISs) are a combination of technology, people, and processes that organizations use to produce (to convert data to useful information) and manage information.  Information is very important part of any business, which helps the managers to take decisions. Can you differentiate data and information? Elaborate your answer using examples. Explain how data is converted into information? 08/20/2024 4  ……..Con’d Data are raw (unprocessed) facts about people, objects, events in an organization (For example, all the sales orders for the year). Information is data that have been processed and presented in a form suitable for human interpretation. E.g. how many of each product were ordered in each month, may be shown on a graph) Information Systems use data to produce information. Information Systems in business is used to present data for different purposes: - recording data in meaningful formats/ways, - reporting and -decision-making. Figure 1.1: The Process of transforming data into information 08/20/2024 5  …..Co’d 08/20/2024 6  …….Con’d Systems Definition and Concepts System A System is an interrelated set of business procedures (or components) used within one business unit, working together for some purpose. For example, an inventory system in the materials department keeps track of the raw materials supply. The system takes input from outside, processes it, and sends the resulting output back to its environment. A system can also defined as collections of people using information technology and processes that define how people carry out their work. 08/20/2024 7  1.2.Characteristics of a System A System has nine characteristics Components – A component is either an irreducible part or an aggregate of parts , also called as a subsystem. Interrelated Components -The function of one component is tied to the functions of the others. Output from one is input for another, the dependence of a part on one or more other parts. Boundary - A system has boundary, within which all of its components are contained and which establishes the limits of a system, Purpose – All components work together to achieve the overall purpose of the system. 08/20/2024 8  1.2.Characteristics of a System Environment – A system exist within an environment, everything outside the system’s boundary that influences and / or interacts the system. Interfaces – The points at which the system meets its environment and there are also interfaces between subsystems. Input – System takes input from its environment Output - System returns output to its environment as a result of its functioning to achieve the purpose. Constraints – There are limits to what the system can do (capacity, speed, and capability), some of these constraints are imposed inside the system and others are imposed by the environment. 08/20/2024 9  1.3.Introduction To Information Systems -is an arrangement of people, data, processes, interfaces, networks and technology that interact for the purpose of supporting and improving :- - day-to-day operations in a business (data processing) - supporting the problem solving and decision making needs of management (information services). - is integrated set of components for collecting, storing, processing, and communicating information. - it can help all kinds of businesses :- -improve the efficiency and effectiveness of their business processes, - managerial decision making - work group collaboration - strengthening their competitive positions. 08/20/2024 10  1.3.Introduction To Information Systems Information Systems (IS) could be manual, computer-based, or hybrid systems. In this course the term “information system” is used to refer to “computer- based information systems”. A computer-based information system (CBIS) is an information system that uses computer technology to perform some or all of its intended tasks. In business, many Information Systems are Computer-based Systems and can also be called Business Information Systems. Information systems :- are systems that contain all components and resources necessary to deliver information and information processing functions to the organization. 08/20/2024 11  1.3.Introduction To Information Systems Information technology:- includes hardware and software components necessary for the system to operate. Information technology (IT) infrastructure is the foundation upon which information systems are built. Examples of IT - Hardware (PC, UNIX server) - Consumer devises (mobiles ) - Software (e-mail, Internet, Windows, Word) Examples of IS -File systems, databases, e-mail servers / clients -E-commerce -Student records 08/20/2024 12  ……Con’d Different types of CBIS in use in organizations are: Functional area systems Transaction processing systems Enterprise resource planning systems Office automation systems Management information systems Decision support systems Expert systems Executive information systems Supply chain management systems Electronic commerce systems Special purpose information systems 08/20/2024 13  1.4.Over View Of Management Management Level and the Four Managerial Functions Managers at different levels of the organization engage in different amounts of time on the four managerial functions of planning, organizing, leading, and controlling. 08/20/2024 14  1.4.Over View Of Management 08/20/2024 15  …….Con’d Top managers do considerably more planning, organizing, and controlling than do managers at any other level. However, they do much less leading. Most of the leading is done by first-line managers. The amount of planning, organizing, and controlling decreases down the hierarchy of management; leading increases as you move down the hierarchy of management. Management Roles Decisional Roles:-Decisional roles require managers to plan strategy and utilize resources. There are four specific roles that are decisional. - the entrepreneur role requires the manager to assign resources - the disturbance handler corrects unanticipated problems facing organization. 08/20/2024 16  Con’d. - resource allocator, involves determining which work units will get resources. - negotiator works with others, such as suppliers, distributors, or labor unions, Interpersonal Roles Interpersonal roles require managers to direct and supervise employees and the organization. The figurehead:- typically a top - middle manager. - communicate future organizational goals or ethical guidelines - a leader acts as an example for other employees to follow - the role of liaison 08/20/2024 17  Con’d Informational Roles Informational roles are those in which managers obtain and transmit information. These roles have changed dramatically as technology has improved. - monitor:- evaluates the performance of others and takes corrective action to improve that performance. - the role of disseminator requires that managers inform employees of changes that affect them and the organization - spokesperson communicates with the external environment. 08/20/2024 18  1.5.Information Resource Management (IRM) - is a comprehensive approach to the acquisition, management, and control of all aspects and components of an information system. The focus of information systems management involves developing and managing information system that: - significantly improve operational efficiency - promote innovative product and services - build a strategic information resource base 08/20/2024 19  1.5.Information Resource Management (IRM) Managing information systems is vital because: - information systems’ technology and its applications for user's needs are growing and changing rapidly. - inadequate performance and unsatisfactory use of information systems and resources are the major problem in many organizations. - an efficient information system enable a business a major competitive advantage over its competitors. 08/20/2024 20  1.5.Information Resource Management (IRM) IRM has the following five dimensions: 1.Resource Management: IRM view data, information, computer hardware and software and personnel as valuable resource that should be effectively and efficiently managed for the benefit of the entire organization. 2. Integrated Technologies: IRM emphasizes that all technologies that process and deliver data and information must be managed as an integrated system of organizational resources. 3. Management responsibility: IRM emphasis that managing information system resources has become a major responsibility of the management of the organization at all levels. 4.Managerial Techniques: The IRM concept stresses that the management of an organization must apply managerial concepts and techniques to the management of Information resources. 5. Strategic Management: The IRM concept stresses that the information service function in the firm must be more than a provider of computer services. It 21 08/20/2024  IRM Con’d Resource MGT Strategic MGT MGT IRM responsibil ities Integrated Technology Managerial techniques Figure: Five dimensions of IRM 08/20/2024 22  IRM Con’d IRM is a vital concept in today's computer environment because of three major developments: 1.Information Technology and its application to users' needs is growing and changing rapidly. 2.Inadequate performance and unsatisfactory use of information systems and resources is a major problem in many organizations. 3.Information systems can now give firm major strategic advantages over its competitors in the market place. 08/20/2024 23  1.6.The Role of Management Information Systems in Organization Strategy Support assist management in understanding the effects of their strategies, and help enable effective decision-making. computers can provide financial statements and performance reports to assist in the planning, monitoring and implementation of strategy. MIS systems can provide predictions about the effect on sales that an alteration in price would have on a product. Data Processing a valuable time saving benefit to the workforce. Core Competencies  a function they perform better than their competition. Enhance Supply Chain Management improve everything from the source of materials to the manufacturing and distribution of the finished product. 08/20/2024 24  1.6.The Role of Management Information Systems in Organization Quick Reflexes Better MIS systems enable an enterprise to react more quickly to their environment, enabling them to push out ahead of the competition and produce a better service and a larger piece of the pie. Key Knowledge Areas for Effective IS Management A. Knowledge of the organization Business strategy: Business strategy drives organizational strategies and IS strategies. -Business strategy: a well-articulated vision of where a business seeks to go and how it expects to get there. -Organizational strategy: the organization’s design - IS strategy: the plan the organization uses in providing information systems and services Context of use: Context of use is a description of the actual conditions under which the system/site is under assessment. 08/20/2024 25  1.6.The Role of Management Information Systems in Organization e.g. the users, tasks, equipment and the physical, social, and organizational environments in which the system/ site is used.  External business environment B. Knowledge of IS management issues peculiar to the organization/country improving links between information systems strategy and business strategy, developing and implementing an information architecture, implementing knowledge management systems, and Knowledge of IS management issues peculiar to the organization/country IS management issues vary from country to country and from time to time for a given country budget deviations THE END of the Chapter One. 08/20/2024 26