Management Information Systems

1
Management Information Systems An Introduction
2
Information Systems

• Why Do People Need Information?
• Individuals - Entertainment and enlightenment
• Businesses - Decision making, problem solving and
  control

3
Data, Information, and Systems

• 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

4
Data, Information,and Systems

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

5
Data, Information,and Systems

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

6
Data, Information, and Systems

• 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

7
Management Information Systems
Perspectives on Information Systems

• 1- System
• Government
• 2- Sub System
• -- Government of Punjab etc.

8
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.

9
Management Information Systems
Perspectives on Information Systems
Data and Information
10
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.

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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

12
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

13
Management Information Systems
Perspectives on Information Systems
An information system contains information about
an organization and its surrounding environment.
Three basic activitiesinput, 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
14
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.
15
Management Information System
problem
information
Decisions
Solution
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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.
17
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

18
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