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Management Information
       System




                         1
‡ Basic Book
  ± James A O'Brien, Management Information
    system, 7th edition, Tata McGraw-Hill
‡ References
  ± Ralph Stair and George Reynolds, Principles of
    Information Systems, 10th edition, New Delhi:
    Pearson Education.
  ± James A. O'Brien and George Marakas,
    Management Information Systems, 9th Edition,
    New York: McGraw-Hill
  ± Laudon and Laudon, Management Information
    systems, 10th edition, Pearson Education.
                                                     2
‡ Websites
  ± www.mhhe.com/obrien
  ± www.prenhall.com/laudon


‡ Websites for Nepalese Context
  ± www.nta.gov.np (MIS report)
  ± www.moic.gov.np




                                  3
Framework of MIS




                   4
Foundation of Information Systems in
              Business



‡ Information System In Business
‡ The Components of Information System




                                         5
Management Information System
‡ Management??

‡ Information ??

‡ System??

‡ Information System??

‡ Management Information System??

                                    6
Management
‡ Management is the process of getting activities
  completed efficiently and effectively with and
  through other people.
‡ Management functions: Planning, Organizing,
  Staffing, Directing, Coordinating, Reporting,
  Budgeting, Controlling
‡ Management roles:
  ± Interpersonal roles: Figurehead, Leader, Liaison
  ± Informational roles: Monitor, Disseminator,
    Spokesperson
  ± Decisional roles: Entrepreneur, Disturbance handler,
    Resource allocator, Negotiator

                                                           7
Data vs. Information
Data: raw facts
Information: collection of facts organized in
such a way that they have value beyond the
facts themselves




                                                8
Figure 1.1




             9
Table 1.1




            10
System concept
                            Environment



                 Feedback                   Feedback
                  Signals                    Signals
       Control               Control by           Control
       Signals              Management            Signals




      Input of              Manufacturing        Output of
    Raw Materials             Process        Finished Products

System Boundary
                            Other Systems
                                                                 11
Fig 1.2




          12
Management Information System (MIS):

Management level
‡ Inputs: High volume data
‡ Processing: Simple models
‡ Outputs: Summary reports
‡ Users: Middle managers

Example: Annual budgeting
Management Information System (MIS)
Management Information System (MIS)

‡ Structured and semi-structured decisions

‡ Report control oriented

‡ Past and present data

‡ Internal orientation
IT and IS
   ‡ What is Information Technology?
         ± Any form of technology used by people to handle
           information.
   ‡ What are Information Systems?
         ± Integrated components processing, storing and
           disseminating information in an organisation.
         ± Interdisciplinary study of systems that provide
           information to users in organisations.

Pyle, I.C. & Illingworth, V. (Eds) (1996). Oxford Dictionary of Computing, 4th Edition. Oxford / New York: Oxford
University Press
                                                                                                                    16
Experiences of IT and IS
‡ Examples of IT
  ± Hardware (PC, UNIX server)
  ± Software (e-mail, Internet, Windows, Word)
  ± Consumer devices (mobiles, train times)
‡ Examples of IS
  ± File systems, databases, e-mail servers / clients
  ± e-commerce
  ± SAP, student records


                                                        17
Characteristics of Valuable Information
‡ Table 1.2




                                      18
Attributes of Information Quality




                                    19
‡ Elements
Fig 1.3     of system
            and goals




                  20
System classifications




                         21
System Performance
Efficiency: output/input
Effectiveness: extent to which system attains
its goals
Performance standard: specific objective of a
system




                                                22
Fig 1.5




          23
Fig 1.6




          24
Fig 1.8




          25
Components of an Information System




                                  26
Why is IS Important?
‡ For an organisation to survive and prosper
  ± More locations (networking, Internet)
  ± New products and services
  ± Improve jobs and work flows:
     ‡ Efficiency
     ‡ Cost
     ‡ Ethical and social issues




                                               27
Why is IS Important?
‡ Worldwide changes:
  ± Global economy
     ‡ Growing percentage of economy relies upon import and
       export
     ‡ Need to operate globally
     ‡ IS can provide global trading infrastructure
  ± Knowledge- or information-based society
     ‡ Change of employment profiles:
        ± Less farming
        ± Less ͚blue collar͛ ʹ manufacturing
        ± Increased service
        ± Increased ͚white collar͛ ʹ office-based
        ± USA: 55% of work force are in knowledge- or information-based
          activities
        ± Shift of manufacture to low-wage countries
                                                                      28
Information Economy
70%

60%
                       % SERVICE
50%
                       % WHITE COLLAR
40%                    % BLUE COLLAR
30%                    % FARMING

20%

10%

0%




          YEAR

                                        29
Why is IS important?
± Business enterprise
   ‡   Change from hierarchical organisations
   ‡   Now flat, decentralised
   ‡   Relies on instant information
   ‡   Flexibility with customer focus, with increasing importance
± Digital firm
   ‡ An organisation where:
         ± Nearly all relationships with customers, suppliers and employees
           is digital
   ‡ Business processes accomplished through digital networks
   ‡ Flexible
   ‡ Dependent upon on IT

                                                                          30
WHY INFORMATION SYSTEMS?


                                                  Business Processes




                                            Supply     Enterprise Customer   Knowledge
                                            Chain      Management Management Management
                                            Management                                                  Firm
                                                                                                     Profitability
                                                                                                          and
                                                                                                      Strategic
                                                                                                       Position
Data         Transformation Dissemination
Collection   Into
and          Business
Storage      Systems



                                             Planning   Coordinating Controlling   Modeling and
                                                                                   Decision Making



     Information Processing Activities                            Management Activities

                                                   Business Value



                                                  Figure 1-4
Major Roles of Information Systems

               Support of
                Strategic
               Advantage


               Support of
               Managerial
             Decision Making


                Support of
            Business Operations

                                     32
TOWARD THE DIGITAL FIRM


The Interdependence Between Organizations and Information Systems
Trends in Information Systems




                                34
Types of Information Systems

                                Information Systems




                Operations                                  Management
                 Support                                      Support
                 Systems                                     Systems



Transaction      Process      Enterprise     Management      Decision    Executive
Processing       Control     Collaboration    Information     Support    Information
 Systems         Systems       Systems         Systems       Systems      Systems
Other Categories of Information
           Systems
   Expert Systems


 Knowledge Management Systems

      Functional Business Systems

         Strategic Information Systems

             Cross-Functional Information Systems


                                                    36
Management Information Systems
            (MIS)
Routine information for routine decisions
Operational efficiency
Use transaction data as main input
Databases integrate MIS in different functional
areas




                                              37
MIS Outputs
Scheduled reports
Demand reports
Exception reports




                          38
Management Challenges of the E-Business Enterprise

                                    ‡Business Strategies
                                    ‡Business Processes
‡IS Human Resources                 ‡Business Needs
‡IS Development


                                     ‡Customer Relationships
                                     ‡Business Partners
‡IT Infrastructure                   ‡Suppliers
‡IS Performance                      ‡Business Customers




‡Organization Structure              Ethical Considerations
‡and Culture                         Potential Risks?
                                     Potential Laws?
‡User Acceptance
                                     Possible Responses?
                                                              39

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Basic Concept of MIS FOR NON IT

  • 2. ‡ Basic Book ± James A O'Brien, Management Information system, 7th edition, Tata McGraw-Hill ‡ References ± Ralph Stair and George Reynolds, Principles of Information Systems, 10th edition, New Delhi: Pearson Education. ± James A. O'Brien and George Marakas, Management Information Systems, 9th Edition, New York: McGraw-Hill ± Laudon and Laudon, Management Information systems, 10th edition, Pearson Education. 2
  • 3. ‡ Websites ± www.mhhe.com/obrien ± www.prenhall.com/laudon ‡ Websites for Nepalese Context ± www.nta.gov.np (MIS report) ± www.moic.gov.np 3
  • 5. Foundation of Information Systems in Business ‡ Information System In Business ‡ The Components of Information System 5
  • 6. Management Information System ‡ Management?? ‡ Information ?? ‡ System?? ‡ Information System?? ‡ Management Information System?? 6
  • 7. Management ‡ Management is the process of getting activities completed efficiently and effectively with and through other people. ‡ Management functions: Planning, Organizing, Staffing, Directing, Coordinating, Reporting, Budgeting, Controlling ‡ Management roles: ± Interpersonal roles: Figurehead, Leader, Liaison ± Informational roles: Monitor, Disseminator, Spokesperson ± Decisional roles: Entrepreneur, Disturbance handler, Resource allocator, Negotiator 7
  • 8. Data vs. Information Data: raw facts Information: collection of facts organized in such a way that they have value beyond the facts themselves 8
  • 10. Table 1.1 10
  • 11. System concept Environment Feedback Feedback Signals Signals Control Control by Control Signals Management Signals Input of Manufacturing Output of Raw Materials Process Finished Products System Boundary Other Systems 11
  • 12. Fig 1.2 12
  • 13. Management Information System (MIS): Management level ‡ Inputs: High volume data ‡ Processing: Simple models ‡ Outputs: Summary reports ‡ Users: Middle managers Example: Annual budgeting
  • 15. Management Information System (MIS) ‡ Structured and semi-structured decisions ‡ Report control oriented ‡ Past and present data ‡ Internal orientation
  • 16. IT and IS ‡ What is Information Technology? ± Any form of technology used by people to handle information. ‡ What are Information Systems? ± Integrated components processing, storing and disseminating information in an organisation. ± Interdisciplinary study of systems that provide information to users in organisations. Pyle, I.C. & Illingworth, V. (Eds) (1996). Oxford Dictionary of Computing, 4th Edition. Oxford / New York: Oxford University Press 16
  • 17. Experiences of IT and IS ‡ Examples of IT ± Hardware (PC, UNIX server) ± Software (e-mail, Internet, Windows, Word) ± Consumer devices (mobiles, train times) ‡ Examples of IS ± File systems, databases, e-mail servers / clients ± e-commerce ± SAP, student records 17
  • 18. Characteristics of Valuable Information ‡ Table 1.2 18
  • 20. ‡ Elements Fig 1.3 of system and goals 20
  • 22. System Performance Efficiency: output/input Effectiveness: extent to which system attains its goals Performance standard: specific objective of a system 22
  • 23. Fig 1.5 23
  • 24. Fig 1.6 24
  • 25. Fig 1.8 25
  • 26. Components of an Information System 26
  • 27. Why is IS Important? ‡ For an organisation to survive and prosper ± More locations (networking, Internet) ± New products and services ± Improve jobs and work flows: ‡ Efficiency ‡ Cost ‡ Ethical and social issues 27
  • 28. Why is IS Important? ‡ Worldwide changes: ± Global economy ‡ Growing percentage of economy relies upon import and export ‡ Need to operate globally ‡ IS can provide global trading infrastructure ± Knowledge- or information-based society ‡ Change of employment profiles: ± Less farming ± Less ͚blue collar͛ ʹ manufacturing ± Increased service ± Increased ͚white collar͛ ʹ office-based ± USA: 55% of work force are in knowledge- or information-based activities ± Shift of manufacture to low-wage countries 28
  • 29. Information Economy 70% 60% % SERVICE 50% % WHITE COLLAR 40% % BLUE COLLAR 30% % FARMING 20% 10% 0% YEAR 29
  • 30. Why is IS important? ± Business enterprise ‡ Change from hierarchical organisations ‡ Now flat, decentralised ‡ Relies on instant information ‡ Flexibility with customer focus, with increasing importance ± Digital firm ‡ An organisation where: ± Nearly all relationships with customers, suppliers and employees is digital ‡ Business processes accomplished through digital networks ‡ Flexible ‡ Dependent upon on IT 30
  • 31. WHY INFORMATION SYSTEMS? Business Processes Supply Enterprise Customer Knowledge Chain Management Management Management Management Firm Profitability and Strategic Position Data Transformation Dissemination Collection Into and Business Storage Systems Planning Coordinating Controlling Modeling and Decision Making Information Processing Activities Management Activities Business Value Figure 1-4
  • 32. Major Roles of Information Systems Support of Strategic Advantage Support of Managerial Decision Making Support of Business Operations 32
  • 33. TOWARD THE DIGITAL FIRM The Interdependence Between Organizations and Information Systems
  • 34. Trends in Information Systems 34
  • 35. Types of Information Systems Information Systems Operations Management Support Support Systems Systems Transaction Process Enterprise Management Decision Executive Processing Control Collaboration Information Support Information Systems Systems Systems Systems Systems Systems
  • 36. Other Categories of Information Systems Expert Systems Knowledge Management Systems Functional Business Systems Strategic Information Systems Cross-Functional Information Systems 36
  • 37. Management Information Systems (MIS) Routine information for routine decisions Operational efficiency Use transaction data as main input Databases integrate MIS in different functional areas 37
  • 38. MIS Outputs Scheduled reports Demand reports Exception reports 38
  • 39. Management Challenges of the E-Business Enterprise ‡Business Strategies ‡Business Processes ‡IS Human Resources ‡Business Needs ‡IS Development ‡Customer Relationships ‡Business Partners ‡IT Infrastructure ‡Suppliers ‡IS Performance ‡Business Customers ‡Organization Structure Ethical Considerations ‡and Culture Potential Risks? Potential Laws? ‡User Acceptance Possible Responses? 39