LECTURER MR PEEPS GONDE

MANAGEMENT INFORMATION SYSTEMS MBA 522

COURSE OUTLINEIntroduction to MIS An Introduction to Concepts of Systems and Organisations Software SystemsComputer Hardware Strategic Uses of Information TechnologyThe Systems Development ProcessFile and Database Management Systems

COURSE OUTLINE (Contd) Distributed SystemsData Communications and Networks The Internet: Electronic Commerce and Office AutomationPeople, Culture and organisational Impact of Information Systems Information Systems Security, Data Control and PrivacySummary and Dispersal

MANAGEMENT INFORMATION SYSTEMS

What is it?

It is an old, old story: the Board does not understand ICT

and the IT manager does not understand the business.

Karen Young, African Review of Business and Technology

WHAT IS AN INFORMATION PROBLEM?Think of an information problem as a goal to be achieved What really counts in problem solving is achieving a certain outcome Interrelated components collect, manipulate, distribute data/information, feedback to meet an objective

FOR EACH SITUATION, STATE THE INFORMATION PROBLEM You urgently need to put some pictures into a document that is due tomorrow, but the scanner keeps freezing.The pay office keeps producing incorrect pay cheques for workers because the software does not understand the new tax laws.Animals are being killed by fast-moving traffic on a busy road that crosses the animals' feeding route. On your way to an important meeting at night, you run out of petrol in your car. The only service station nearby is closed.

WHY STUDY INFORMATION SYSTEMS?Lack of understanding of the part of the upper managementMake you an educated end-userContribute in the design of new systems (in your job)Increase organizational successAdvance your careerHelp you meet the challenges in a global market where management decisions become more complex Learn how data and information is used by the organization

MIS DEFINITIONManagement

Information

Systems

INFORMATION CONCEPTS

Data versus Information

Characteristics of valuable information

Value of information

DATA VS. INFORMATIONData raw facts of real world entities (employee name, number of hours worked in a week, inventory part number)Information facts organised to give meaning (total monthly sales, inventory levels)Relationships defined among data can create different types of informationAdding new/different data redefines data content and information type, adds value to informationProcess transforming data into information, processing of creating relationships among data

DATA VS. INFORMATION (Contd)Knowledge awareness and understanding of a set of information and ways that information can aid a specific task or decision makeData processing manually, mentally, computer-based

CHARACTERISTICS OF VALUABLE INFORMATIONAccurate - error free, inaccurate information generated by inaccurate input data (GIGO)Complete - contains all important facts. E.g. an investment report without costs is incompleteEconomical - economical to produce (cost vs. value)Reliable - dependent on, source of data is importantRelevant - to the decision maker, computer sales totals may not be relevant to a driverSimple - understandable to use, not overly complexTimely delivered when needed, knowing last weeks weather may not assist in the choice of clothes to wear Accessible - obtainable in the right format and timeSecure - inaccessible by unauthorized users

THE VALUE OF INFORMATIONDirectly linked to how it helps decision makers achieve their organisational goals. E.g. a new computerised ordering system may cost $30.000 and generate $50.000. The value added by the new system is the increased value of $20.000.

What is a System?A system is a set of components that interact to accomplish goals. Systems have inputs, processing mechanisms, outputs and feedback. e.g Mabhetshu Co. on-line account information system Goal: Provide account information to investors (one of many goals) Inputs: Stock prices, investor information Processing: Determine portfolio value (multiply # of shares...) Output: Provide the value of each investors portfolio Feedback: Investor reaction

WHAT IS AN INFORMATION SYSTEMIS specialised type of system, input, manipulate, output, feedback mechanismInput activity of gathering and capturing raw data. E.g. Production systems number of hours worked, university grading system students grades by lecturers before a semester summary gradesInputs can be manual or computerised Processing converting/transforming data into useful outputs. E.g. calculations, comparisons and taking alternative actions, data storage for future useProcessing can be manual or computerised

WHAT IS AN INFORMATION SYSTEM (ContOutput useful information, documents or forms. E.g. paychecks, reportsOutput from one system can be input to another system. E.g. sales orders can be input to customer billing systemsOutput manual (hand written reports), computerised (printed, display screens)Feedback output used to make changes to input or processing activities. E.g. errors enable the correction of input or alter processImportant o managers, employees, decision makers tell their performance level

WHAT IS AN INFORMATION SYSTEM (ContForecasting estimating future requirements. E.g. future sales and order more inventory before a shortage

MANUAL AND COMPUTERISED SYSTEMSIS manual or computerisedManual systems investments analysts draw charts and trend lines for investment decision makingMany programs begin manual and transformed to computer based systemsSimply computerising a manually system does not improve system performanceIf the IS is flawed, computerisation magnifies the impact of the flawsRe-engineer the IS

COMPUTER-BASED INFORMATION SYSTEMSComputer-based information systems (CBIS) hardware, software, telecommunications, and proceduresConfigured to collect, manipulate, store, and process data into informationHardwareComputer equipment input, processing, output activitiesInput devices keyboards, automatic scanning devicesProcessing devices CPU and main memoryStorage and output devices secondary storage, printers, screens Hardware assists the organisation save the sale and increase revenue

COMPUTER-BASED INFORMATION SYSTEMS (Contd)Software computer programs that govern the operation of the computerAllow computers to process payroll, send bills to customers, provide better customer serviceTwo types of software systems software (Windows XP), applications software (Office XP)Databases an organised collection of facts and information on customers, employees, competitorsTelecommunications electronic transmission of signals for communicationsEnables organisation to carry out processes and tasks through effective computer networks

COMPUTER-BASED INFORMATION SYSTEMSPeople people who manage, run, program, and maintain the system (programmers, analysts, engineers, DBA, users)Procedures strategies, policies, methods, and rules for using CBIS (access levels, disaster plans, backup)

CBIS Components (Contd)

CLASSIFICATION OF INFORMATION SYSTEMS

Classification by Organisational Structure

Classification by Functional Structure

Classification by Support Provided

CLASSIFICATION BY ORGANISATIONDepartmental Information Systems Departmental Systems HRMDivisional System HRMCentralised System - HRM

Enterprise Information SystemsEnterprise Resource Planning (ERP) single integrated systems

Interorganisational SystemsConnect several organisationsCommon in business partnering, extranets are the basis for IOS

CLASSIFICATION BY FUNCTIONAL AREAThe accounting information system

The finance information system

The manufacturing (operations/production) information system

The marketing information system

The human resources management information system

CLASSIFICATION BY SUPPORT PROVIDEDTransaction Processing Systems (TPS) supports repetitive, mission-critical activities and clerical staffManagement Information System (MIS) supports functional activities and managersKnowledge Management Systems (KMS) supports all employees for corporate knowledgeOffice Automation System (OAS) support office workersDecision Support Systems (DSS) supports decision making by managers and analystsEnterprise Information Systems (EIS) supports all managers in an enterpriseGroup Support Systems (GSS) support people working in groupsIntelligent Support Systems (ISS) support mainly knowledge workers, expert systems being the major technology

TRANSACTION PROCESSING SYSTEMDay-day activities of an organisationSupports operational levels of an organisationSupplies data to higher systemsStructuredHigh input and output volumes

SUB-SPECIES OF TPSManufacturing and Production Systems

Sales and Marketing Systems

Finance and Accounting Systems

Human Resource System

OFFICE AUTOMATION

An attempt to create a paperless office

SUB-SPECIES

Communication Systems

Teleconferencing

Groupware

MANGEMENT INFORMATION SYSTEMSSummarises TPS data

Monitoring performance

Managing an organisation

Used by middle managers

For example, Inventory Control System

DECISION SUPPORT SYSTEMS

Often used by strategic management staff

Make simulations and predictions

Example, 5-year operating plan

KNOWLEDGE WORK SYSTEMS

Used by technical staff

CAD/CAM

EXPERT SYSTEMSUses artificial intelligence techniques in problem solving

Deskilling

AdvantagesMore information storage capacitiesComputers do not forgetUp to date informationAvailability (24/7)Reach

IS RELATIONSHIPS

ADDITIONAL CONCEPTS

Subsystem

System entropy

System stress

WHAT INFORMATION CAN BE USED TO PROVIDE FEEDBACK ABOUT EACH OF THE FOLLOWING?

Employee morale

New product success

Sales person performance

Customer profitability

FIVE BASIC PARTS OF ORGANISATIONS

The administrative component

The Strategic apex

The middle line

Technostructure

Support staff

Operating core

END OF PRESENTATION