Management Management Information SystemInformation System

Lecture Notes for Business Lecture Notes for Business IntroductionIntroduction

By Fahmy RadhiBy Fahmy Radhi

Management Information System Management Information System (MIS)(MIS)

Interrelated components that collect, Interrelated components that collect, process, store and disseminate process, store and disseminate information to support decision information to support decision making and Problem Solvingmaking and Problem Solving

Information that rely on computer Information that rely on computer hardware and software for hardware and software for processing and disseminating processing and disseminating informationinformation

Information System within Information System within an Organizationan Organization

Functions of an Information SystemFunctions of an Information System

Functions of an Information SystemFunctions of an Information System

Input – the collection of raw data Input – the collection of raw data for processing information systemfor processing information system

Processing – the conversion of Processing – the conversion of data into information for more data into information for more meaningfulmeaningful

Output – the distribution of Output – the distribution of processed informationprocessed information

Feedback – output that is returned Feedback – output that is returned to help evaluate or correct inputto help evaluate or correct input

MIS ActivitiesMIS Activities

MISMIS is activities to manage is activities to manage information for problem solving and information for problem solving and decision making in an entity by decision making in an entity by managed the following activities:managed the following activities: Acquiring information by gathering data Acquiring information by gathering data

and processed the data to be the valuable and processed the data to be the valuable information efficientlyinformation efficiently

Using the information in the most Using the information in the most effective wayeffective way

Discarding the information at the proper Discarding the information at the proper timetime

Differences between Data Differences between Data and Informationand Information

Data consists of facts and figures Data consists of facts and figures that are relatively meaningless to that are relatively meaningless to user. E.g. the number of hours user. E.g. the number of hours worked for each employee in the worked for each employee in the company company

Information is processed data that Information is processed data that are more meaningfully. E.g. the are more meaningfully. E.g. the hours works for each employee hours works for each employee multiplied by the hourly rate, the out multiplied by the hourly rate, the out put information is the gross earning put information is the gross earning

Skills required in MIS Skills required in MIS

1.1. Computer literacy Computer literacy understanding of computer terminologyunderstanding of computer terminology a recognition of the strength and weakness of the a recognition of the strength and weakness of the

computercomputer an ability to use the computeran ability to use the computer

2.2. Information literacy Information literacy Understanding how to use information at each Understanding how to use information at each

step of problem solving processstep of problem solving process Understanding where information can be obtainedUnderstanding where information can be obtained Understanding how to share information with Understanding how to share information with

otherother

Computer-based information Computer-based information SubsystemSubsystem

Electronic data processing (EDP) – Electronic data processing (EDP) – produces some information as by produces some information as by product of the accounting process product of the accounting process called Accounting Information called Accounting Information System (AIS)System (AIS)

Management information system Management information system (MIS) – the computer application (MIS) – the computer application should be implemented for the should be implemented for the primary purpose of producing primary purpose of producing management information.management information.

Computer-based information Computer-based information SubsystemSubsystem

Decision support system (DDS) – an Decision support system (DDS) – an information producing system aimed at a information producing system aimed at a particular problem that a manager must particular problem that a manager must solve and decision.solve and decision.

Office automation (OA) – facilities of Office automation (OA) – facilities of computer and communication that computer and communication that increase productivities for manager and increase productivities for manager and office worker in conducting their activitiesoffice worker in conducting their activities

Expert System (ES) – computer application Expert System (ES) – computer application that can be used by managers in problem that can be used by managers in problem solving and decision makingsolving and decision making

Computer-based information Computer-based information SubsystemSubsystem

Functional Information Functional Information SubsystemSubsystem

Human Resources Information SystemHuman Resources Information System Manufacturing Information SystemManufacturing Information System

Manufacturing Intelligence SubsystemManufacturing Intelligence Subsystem Industrial Engineering SubsystemIndustrial Engineering Subsystem

Financial Information SystemFinancial Information System Marketing Information SystemMarketing Information System

Marketing Research SubsystemMarketing Research Subsystem Marketing Intelligence SubsystemMarketing Intelligence Subsystem

Main Reason interest in MISMain Reason interest in MIS

1.1. Increasing Complexity of Business Increasing Complexity of Business Activities influenced by:Activities influenced by:

• International economicInternational economic• Worldwide CompetitionWorldwide Competition• Increasing complexity of TechnologyIncreasing complexity of Technology• Shrinking time framesShrinking time frames

2.2. Improving rapidly Computer Improving rapidly Computer CapabilitiesCapabilities

Information SpecialistsInformation Specialists System analyst is an expert who System analyst is an expert who

works with user in developing system works with user in developing system at defining problems and in at defining problems and in preparing written documentation of preparing written documentation of how the computer will assist in how the computer will assist in solving the problem.solving the problem.

Database administrator works with Database administrator works with user and system analyst in creating user and system analyst in creating the data needed to produce the the data needed to produce the information needed by usersinformation needed by users

Information SpecialistsInformation Specialists

Network specialist works with user and Network specialist works with user and system analyst in establishing the data system analyst in establishing the data communication network that ties together communication network that ties together widespread computing resourceswidespread computing resources

Programmers use the documentation Programmers use the documentation prepared by the system analyst to create prepared by the system analyst to create the software program that lead the the software program that lead the computer to transform data into computer to transform data into information needed by usersinformation needed by users

Operators operates the computing Operators operates the computing equipment and using software programequipment and using software program

Information SpecialistsInformation Specialists