Introduction to Management Information System

Lecture 1

Is Computer Age Over ?

Computer Age vs. Information Age

Computer age refers to hardware trends (and its speed of processing data)

Information age refers to the trend toward treating information as a corporate resource that supplies executives with timely, accurate information for more effective decision making.

What is Information ?

DATA

Information is refined data.

INFORMATION

Data vs. Information

Users really want is Information

What users can learn from the datahow to satisfy their best customershow to allocate their resources most efficiently,how to minimize losses

Information and our Life

Information (and energy) are at the core of everything around us.

Our entire existence is a process of gathering, analyzing, understanding, and acting on the information.

Information and Business

Every business is a service business information confers competitive advantage

Mass customization needs more information for custom-fit

Information as product information broker, e.g., clothing database,

purchasing habits etc.

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What is IS/MIS?

What is IS/MIS?

It is the combination ofIt is the combination of

Computers (hardware, software)

Data Human Resources

To facilitate managers in To facilitate managers in Day-to-day

operations Data Processing Decision Making

100 Years ago...

Today...Today...

Industrial Revolution Industrial Revolution changed the Worldchanged the World

Information

Revolution!

INFORMATION SYSTEMS

Why should we learn?

What should we learn?

How should we learn?

Information Systems as Planned Organizational Change:

Linking Information Systems to the Business Plan

INFORMATION and PROCESS

Information is frequently said to be the glue that holds an organization together.

More Information ? More information is

not profitable unless it is relevant information.

Executives will need better information in the future if their companies are to be competitive.

Information …

BAD information is WORSE than ...

NO information.

Attributes of Information Quality

We realize that a firm needs better information to survive and prosper. Therefore, high quality information products have to be

provided to management.

The attributes of information quality are:

The Time Dimension The Content Dimension The Form Dimension

ContentDimension

Form

Dimension

Time

Dimension

Attributes of Information QualityTimelinessCurrencyFrequencyTime Period

ClarityDetailOrderPresentationMedia

AccuracyRelevanceCompletenessConcisenessScopeperformance

What is a System?

SYSTEMSYSTEM

INPUT OUTPUTPROCESS

FEEDBACK

System ConceptsSystem Concepts

ManufacturingProcess

Input ofRaw Materials

Output ofFinished Products

Environment

Other Systems

Control byManagement

ControlSignals

ControlSignals

FeedbackSignals

FeedbackSignals

System Boundary

Definition of IS/MIS

Information Systems (IS) are more than just a computer hardware and software. Effective usages of IS require understanding of the

organization, management, and information technology that shape a system; therefore,

IS are organizational and management solutions based on information technology

(IT), to challenges posed by the business environment.

What is Information Systems? Information Systems (IS) are more than computer

hardware and software. It is not just developing business applications programs Information Systems include:

Information Technology Management Organization

Ultimately, IS are used as strategic tool to improve an organization’s competitive advantage.

INFORMATION SYSTEMS (MIS/IS)INFORMATION SYSTEMS (MIS/IS)

ORGANIZATIONSORGANIZATIONS TECHNOLOGYTECHNOLOGY

MANAGEMENTMANAGEMENT

INFORMATIOINFORMATIONN

SYSTEMSSYSTEMS

How you can apply MIS ...

To improve the information content of the data,

to present the valuable information in a user-friendly, intuitive, and easy to understand way, and

to empower knowledge workers of today and tomorrow.

Objectives of the MIS

Deliver the right informationinformation

to the right people,

at the right time,

with the right form.

Ultimately, MIS should improve the workers’ productivity.

who has what information about whom and when, where, and how will all be decided in the process of building an information system.

FUNCTIONS OF AN INFORMATION SYSTEM FUNCTIONS OF AN INFORMATION SYSTEM (General Systems Model)(General Systems Model)

INPUT OUTPUTPROCESS

FEEDBACK

INFORMATION SYSTEMINFORMATION SYSTEM

ENVIRONMENTENVIRONMENT

Customers Suppliers Customers Suppliers

Regulatory Regulatory Stockholders CompetitorsStockholders CompetitorsAgenciesAgencies

ORGANIZATIONORGANIZATION

Information Management vs. Knowledge Management

Information management can be described as “delivering the right information to the right people at the right time with the right form.”

Knowledge management can be illustrated as “getting the right people to have the right conversation at the right time.”

N

CONCLUSION

Information System (IS) should be an organizational and management solution, based on information

technology (IT), to a challenge posed by the environment.