Management Information Systems

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Management Information Systems

• Establish the scope and purpose of a Management
  Information System.

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References

• Business Information Systems Paul Bocij, Dave
  Chaffey, Andrew Greasley, Simon Hickie FINANCIAL
  TIMES PRENTICE HALL

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References

• Managing Information David A. Wilson
  BUTTERWORTH-HEINEMANN

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References

• Managing Knowledge David A. Wilson
  BUTTERWORTH-HEINEMANN

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Data

• Raw facts or observations
• Little value until processed

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Hard and Soft

• Hard data
• Quantitative

• Soft data
• Qualitative

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Data definitions
Non random symbols, numbers, values or words
Record of an event or fact
Collection of non random facts
Facts obtained by observation or research
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An example of data?
a date
Ruler measurement
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What is information?

• Data processed to be meaningful
• Data processed for a purpose
• Data interpreted and understood by recipient

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Examples of information
Bank statement
Sales prediction
Telephone directory
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Information

• Information supports the decision making process
• Information acts to reduce uncertainty about a
  situation or event

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Processing data
DATA
TRANSFORMATION
INFORMATION
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Transformation

• Rearranging or sorting
• Grouping, Ordering

• Aggregating
• Averages, totals, sub totals

• Selection
• Choose or discard based on selection criteria

Performing calculations
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Value of information

• Tangible value
• Value of information
• -
• Cost of gathering information
• Tangible value is measurable

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Value of information

• Intangible value
• Improvements in decision behaviour
• -
• Cost of gathering information
• Intangible value is difficult or impossible to
  measure

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Sources of information

• Formal communication
• house style
• Informal communication
• spoken word

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Formal

• Advantages
• Familiar style
• Structured
• Accurate and relevant
• Disadvantages
• Inflexible
• Overlooks information received by informal means
• Ignores group and social mechanisms

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Informal

• Advantages
• Flexible
• Detailed
• Problem solving
• Disadvantages
• Often inaccurate
• Not always relevant
• Localised
• Volume constraints
• Slow, inefficient and selective

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Information quality
Relevant for purpose
Accurate for purpose
Complete for purpose
Cost
Communicated to right person
Confidence
Clear to user
Channel is appropriate
Timely
Volume is manageable
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Quality of Information

• Time dimension
• Content dimension
• Form dimension
• Additional

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Time dimension

• Timeliness
• Available when needed
• Currency
• Reflects current circumstances
• Frequency
• Available as often as needed - regular
• Time period
• Past, Present and Future

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Content dimension

• Accuracy
• No errors
• Relevance
• Meets needs at a point in time
• Completeness
• All information available
• Conciseness
• Relevant information as compact as possible
• Scope
• Focus of information internal/external

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Form dimension

• Clarity
• Form appropriate to intended recipient
• Detail
• Level of complexity
• Order
• Easily locate information
• Presentation
• Text, chart, table
• Media
• Printed, Slides, Oral

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Additional

• Confidence in source
• Reliability
• Appropriate to activity
• Received by correct person
• Sent by correct channels

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The business environment
Weather Location
SPECIFIC
GENERAL
PHYSICAL
Organisation
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Decision making

• Structured
• Rules and constraints known
• Unstructured
• Rules governing decision are complicated or
  unknown

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Model of decision making
Intelligence
Evaluation
Design
Implementation
Choice
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Levels of decision making
OPERATIONAL
TACTICAL
STRATEGIC
Information flow
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Decision characteristics
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Information need for decisions
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Information systems
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A system
System Objective
Control
Feedback
Process
Input
Output
Static
Dynamic
Provide Control
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An information system

• Adaptive system
• Input is raw material
• Process is transformation
• Output is finished product
• Feedback is information on performance
• Control is adjustment

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Information sub systems

• Systems are complex
• Subsystems support a larger SUPRASYSTEM
• Example
• Car
• Engine
• Gearbox
• Steering
• Brakes

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System support
People
Hardware
Software
Data
Communication
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Types of information systems

• Operations Information Systems
• Process control
• Transaction processing
• Communication
• Productivity

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Operations Information Systems

• Process control systems
• Support and control manufacturing process

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Operations Information Systems

• Transaction processing systems (TP)
• Recording and processing the data that results
  from trading activity
• Real time processing
• E.G. Banks
• Batch processing (post processing)
• E.g. Utilities (gas, electricity, water)

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Real time processing
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Operations Information Systems

• Office automation systems (OAS)
• Improve efficiency in workplace
• Word processors, video conference

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Types of information systems

• Management Information Systems
• Feedback
• Organisational activity
• Managerial decision making

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Management Information Systems (MIS)

• Information reporting systems (IRS)
• Support day to day decision making activity
• Ad hoc on demand
• Periodic - regular
• Exception following unusual event

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MIS
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Royal Mail
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Management Information Systems (MIS)

• Decision support systems (DSS)
• Support semi-structured or structured decision
  making
• Ad hoc
• Interactive
• Model based

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DSS

• Storm prediction

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DSS Cow culling
http//ag.arizona.edu/AREC/cull/culling.html
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DSS - beef sales
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Management Information Systems (MIS)

• Executive information systems (EIS)
• Used by senior management to monitor organisation
  objectives and targets
• Also time management
• E.g. PDAs

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Other systems

• Expert systems (ES)
• Apply knowledge to problem
• Knowledge base
• Rules
• Draw conclusions
• End user computing systems
• Support individual activity
• Create own electronic templates
• Strategic information systems
• Manage competitive environment

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Strategic information systems

• Business have to cope with
• New entrants
• Bargaining power of suppliers
• Bargaining power of customers
• Substitute products or services
• Competition with like producers

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Strategic information systems

• Cost leadership
• Providing goods at lowest possible cost
• Product differentiation
• Make products distinct
• Innovation
• Finding new approach to organisational activity
• Respond to market environment

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Strategic information systems

• Value chain analysis
• Series of connected activity that adds value to
  organisation products
• Separate primary and support activities

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Primary activities

• Best done by business
• Receiving and storing raw material required for
  production
• Production
• Sending products to buyers
• Marketing and sales
• Service/Support for product

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Secondary activities

• Procurement
• Human Resource Management
• Technology Development
• Infrastructure
• Often done by others

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Strategic Information Systems

• Identify which best done by business and which
  best done by others (outsourced)
• Identify areas where value can be added to
  product

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Using information for strategic advantage

• Improve operational efficiency
• Stock control
• Raising barriers to entry
• Investment in complex systems create entry
  barrier
• Locking in customers and suppliers
• Strengthening business relationships

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Strategic information system
Integrate information system
Supermarket chain
Distribution warehouse
Processor
Producer
direct
Supermarket outlets
Loyalty schemes
Customer preferences
Customers
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Supermarkets control of information
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Using information for strategic advantage

• Promoting business innovation
• Increasing switching costs
• Discourage customers/suppliers from switching to
  other competitors
• Leverage
• Use information for other product/business e.g.
  brand credit cards