1.

INTRODUCTION TO MANAGEMENT INFORMATION SYSTEMS - TERRY LUCEY

Definition:
-Lucey takes a decision focus to the design of MIS
* information systems are viewed as means of processing data
* the routine fact and figures of organization processed into information
which is then used for decision making

MIS:
A system to convert data from internal and external sources into information
and communicate that information, in an appropriate form, to managers at all
levels in all functions to enable them to make timely and effective decisions for
planning, directing and controlling the activities for they they are responsible.

Problems With MIS

-MIS most often being advanced computer systems have had relatively little
success in providing management with the information they need. Typical
reasons discovered include:
*lack of management involvement with design of MIS
*narrow and/or inappropriate emphasis of the computer system
*undue concentration on low level data, processing application
particularly in the accounting area
*lack of management knowledge of computers particularly in small and
medium sized enterprises (SME's)
*poor appreciation by information specialists of managements true
information requirements and organizational problems
*lack of management support

-To be successfull an MIS must be designed and operated with due regard to
organization and behavioural principles as well as technical factors

-Management must be informed enough to make an effective contribution to

system design

-Information specialists (system analysts, accountants,, operations reseachers

and others) must become more aware of managerial functions and needs so
that jointly (management and information specialists) a more effective MIS can
be developed

-Management do not always know what information they need

-Information specialists often do not know enough about management to be

able to produce relevant information for the managers they serve
-better communication between management and information specialists plus a
wider knowledge by both groups of MIS principles would greately facilitate the
task of developing relevant and appropriate information systems

-awareness and understanding of key principles and functions so that design,

implementation and operation of MIS is result of informed decisions and
judgements

-MIS draw upon a wide and growing range of concepts and techniques (major
areas of knowledge)

-Major areas of knowledge are not self-contained, independent entities but

interact with and complement each other

(i) NATURE OF DATA, INFORMATION KNOWLEDGE AND COMMUNICATIONS

-Processing of data into information and communicating resulting information to
the user is the very essence of MIS

DATA:
-a collection of facts and figures
-data (collection of facts and figures) are stored, analysed, compared,
calculated and generally worked on to produce messages in form required by
user
-messages in form required by user (e.g. manager) is termed information

INFORMATION:
-data that have been processed and communicated in such a way as to be
useful to the recipient
KNOWLEDGE:
-information already within a human head
-managers use knowledge and information from MIS to plan, control, make
decisions or to modify the produced information so as to share the given
knowledge with others in the organization

KNOWLEDGE MANAGEMENT:
-tools and techniques for collecting, managing and disseminating knowledge
within the organization

-Data incurs cost

-Information (derived from data which incurs cost) if properly communicated
and acted upon can create value

(ii) GENERAL SYSTEMS CONCEPTS

Reductionist Approach:
-to examine and analyse the individual parts of the system or organization

Holistic Approach:
-system is viewed as a totality where the whole is greater than the sum of the
parts

-General systems concepts emphasizes that not only is it necessary to use

reductionist approach but it is also vital to use the holistic approach

-Systems are composed of sub-systems which are inter-dependent

-It is necessary to consider interellationships between sub-systems otherwise

the system or organization as a whole will not function efficiently

-Also system or organization will be slower to adapt to changing conditions

which is a primary requisite for survival

-Reductionist approach ignores the interrelationship between sub-systems and

treats individual parts (sub-systems) as self contained entities - which they are
not

(iii) ORGANIZATION PROCESS AND STRUCTURES

-Organizations are artificially contrived structures with procedures and
objectives which should and usually adapt to changes in environment

-MIS exists in organizations in order to help them achieve objectives, to plan

and control their processes and operations, to help deal with uncertainty and
to help in adapting to change or initiating change

-It is important for information systems designers to be aware of the various

influences on organization design
(iv) MANAGEMENT FUNCTIONS AND LEVELS
-Value of information derives from the actions management takes a result of
using the information

-Information specialists need to know what types of tasks and functions

management have to perfom so that they are able to produce relevant -
therefore usable information

-Numerous functions management have to perfom can be grouped into five

areas:
1. planning
2. decision making
3. organizing and coordinating
4. leadership and motivation
5. control
-Three levels of management can be seen in all organizations
1. top or strategic management
2. middle or tactical management
3. junior or operational management

-Factors which affects the tasks which managers have to perform and hence
their information requirements is extent of functional authority within the
organization

-Planning, decision making and control make heavy demands on organizations

MIS

(v) THE NATURE OF PLANNING AND DECISION MAKING AND TECHNIQUES

AVAILABLE
-Planning and decision making have been called primary management tasks
and occur in all levels of management

Planning
-process of deciding in advance what is to be done and how it is to be done

-Plans are implemented by decisions and actions

-MIS designers must be aware of the types of decisions made at the various
levels of an organization to provide appropriate information

-Decisions are classified into two categories:

(a) programmed
(b) non-programmed

Programmed Decisions:
-routine and repetitive
-decision rules are known

Non-Programmed Decisions
-novel and unstructured and the nature of the problem and decision rules are
complex and little understood
-MIS must be designed with due regard to the types of decisions, how
decisions are taken, how the decision maker relates to the organization, the
nature of organization, ..., etc.

-Managers and MIS which supports them must distinguish between

effectiveness and efficiency

Effectiveness:
-doing the right thing

Efficiency:
-is measurement of the use of resources to achieve desired result

-Organization may be producing the wrong output efficiently and is thus an

ineffective organization

-Good management concentrates on what must be done before considering

how it should be done and the MIS should help them do this

(vi) CONTROL PRINCIPLES - FEEDBACK AND FEEDFOWARD

-Control is process of ensuring that operations proceed according to plan and
at the most basic level. This is done by comparing actual result (output) of the
system against a target and using any differences found to adjust the input
side of the system so as to bring activities in line with the target
FEEDFOWARD:
-where monitoring at some early stage of system or process may indicate that
an adjustment should be made at a later stage of the process prior to the final
output

(vii) THE INFLUENCE OF INFORMATION AND COMMUNICATIONS TECHNOLOGY

(ICT)
-Information and commucations technologies (ICT) is a general expression
covering computers, telecommunications and electronics

-Much expenditure on computers and ICT incurred by organizations to date has

been on relative routine data processing applications, i.e. accounting and stock
control

-Although many overlaps and interrelationships exist , it is possible to identify

three types of systems using ICT:
(a) data processing (transaction processign)
(b) office support systems
(c) end user systems

(a) Data Processing (Transaction Processing)

-computers and electronics based systems for recording, processing and
reporting on the day-to-day activities of the organization, e.g. point of sale
(POS), ATM, payroll, ..., etc.

(b) Office Support Systems

-provide day-to-day assistance with the functions of the office, e.g. fax
machines, emails, word processors, spreadsheets, ..., etc.

(c) End User Systems

-provide management with direct assistance with their work, e.g. decision
support systems, expert systems, executive support systems

-If ICT is misapplied or installed without sufficient analysis of the real

management or organizational problems then no benefits will be gained and
money will be wasted

-Automating inneficient methods does not produce benefits

-The methods and systems must be right before any attempt is made to
automate them

-No ICT system should be installed unless it is demonstratably better than the
best manual method

-ICT benefits are not instantaneous, it may take time before benefits such as
money savings are seen

CHANGES AFFECTING ORGANIZATIONS

-Environments in which business operate have ever-accelerating rate of
change

-Management and information systems that support them have to learn to deal
with change and adapt their operations, systems and organizations themselves
in order to survive and prosper

-Some typical changes taking place

(i) more competition
(ii) faster pace
(iii) increased globalization

(i) More Competition

-all types of organizations face greater competitive pressures
-competition is in private sector as well as public sector

(ii) Faster Pace

-faster pace of society and business is apparent in many ways
-new models of all types of manufactured goods have shorter life cycles, this
in turn means that product development must also be speeded up
-knowledge and training people have rapidly become obsolete because of
changing requirements

(iii) Increased Globalization

-many businesses operate on international scale
-lower trade barriers, faster transport and communications and easier flows of
capital has led to companies/businesses/organizations operating on
international scale

THE DRIVE FOR PRODUCTIVITY AND QUALITY

-All types of organizations are striving for greater productivity while inhancing
quality of goods/services due to increased competition and discerning
customers
Lean Production:
-mass manufacturing while ensuring zero defects
-a key feature of lean production is just-in-time (JIT) systems
-aim of JIT systems is to produce the required items of high quality exactly at
the time they are required
-key elements of JIT are:
* a move towards zero inventory
* elimination of non-value added activities, e.g. the internal
movement of components
* zero defects (perfect quality)
* short set-ups
* move toward batch size of one
* 100% percent on-time deliveries
* a drive for improvement
* demand manufacture

World Class Manufactures:

-application of efficient production techniques such as JIT and use of
computers and robots (also known as advanced manufacturing technology -
AMT) has transformed manufacturing companies to world class manufacturers