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2MIS - Foundation of Information System - Part I

This document provides an overview of the contents and topics that will be covered in Unit 2: Foundation of Information Systems. The key points are: 1) The unit will cover data, data processing, information, information systems concepts and types, management information systems objectives and applications, the systems development life cycle, and success and failure of MIS. 2) It will also discuss data versus information, levels of information, characteristics of good information, and how information is used for planning, control, and decision making. 3) The unit will examine perspectives on information systems including the components of an information system, the input, processing, output, and feedback activities that generate organizational information, and the organizational dimensions of information systems

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Pravakar Ghimire
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0% found this document useful (0 votes)
19 views39 pages

2MIS - Foundation of Information System - Part I

This document provides an overview of the contents and topics that will be covered in Unit 2: Foundation of Information Systems. The key points are: 1) The unit will cover data, data processing, information, information systems concepts and types, management information systems objectives and applications, the systems development life cycle, and success and failure of MIS. 2) It will also discuss data versus information, levels of information, characteristics of good information, and how information is used for planning, control, and decision making. 3) The unit will examine perspectives on information systems including the components of an information system, the input, processing, output, and feedback activities that generate organizational information, and the organizational dimensions of information systems

Uploaded by

Pravakar Ghimire
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Management Information Systems

Unit 2: Foundation of Information System


Contents

• Data, Data processing, Information


• Information System:
• Concept, characteristics and need;
• Fundamental Resources of Information System,
• Potential Risks of Information System,
• Types of Information System (TPS, MIS, DSS, ESS);
• MIS: Objectives, characteristics, applications, benefits and limitations;
Approaches, development, and implementations of MIS.

• Systems Development Life Cycle (SDLC) and its Stages,

• Success and Failure of MIS.


Management Information Systems
Unit 2: Foundation of Information System
Data and Information

Manoj: Finance
Gauri: Finance
Raffi: HRM

I
Surabhi: HRM
nformation
Sunil: HRM

?????????????
Management Information Systems
Unit 2: Foundation of Information System
Perspectives on Information Systems

• Data is raw unprocessed facts and figures that have no context


or purposeful meaning and information is processed data that
has meaning and is presented in a context.
• For example, a computer operator may enter 306.41, which is
data, because we do not know why or in what context it is
being used. However, if this number then appears on a bill to
show that you owe a company NRs.306.41 for goods received
then this data has changed into information, because it has
acquired a context (it’s a bill) and meaning.
• Information vs. data
• Data are streams of raw facts.
• Information is data shaped into meaningful form.
Management Information Systems
Unit 2: Foundation of Information System
Perspectives on Information Systems

• Knowledge: We tend to gain knowledge from


information and we use that information to make
decisions.
• Metadata: Data that describes data.
• The computer keeps a file on its hard disk where it records
information about each and every file on the
computer. This includes information such as when the file
was created or modified; who created it; the size of the file;
the file type it is. This master or directory file is an example
of metadata.
Management Information Systems
Unit 2: Foundation of Information System
Data and Information

Raw data from a supermarket checkout counter can be processed and


organized to produce meaningful information, such as the total unit sales of
dish detergent or the total sales revenue from dish detergent for a specific
store or sales territory.
Management Information Systems
Unit 2: Foundation of Information System
Data and Information
Management Information Systems
Unit 2: Foundation of Information System
Levels of Information

• Strategic information
• Tactical information
• Operational information
Management Information Systems
Unit 2: Foundation of Information System
Characteristics of Information

• Good information is that which is used and which creates


value.
– Availability/accessibility
– Accuracy
– Reliability or objectivity
– Relevance/appropriateness
– Completeness
– Level of detail/conciseness
– Presentation
– Timing
– Value of information
– Cost of information
Management Information Systems
Unit 2: Foundation of Information System
Use of Information
• Planning
– Planning is the process of deciding, in advance, what has to be
done and how it is to be done. Planning should be based on good
information.
• Control
• Control can be defined as the monitoring and evaluation of current
progress against the steps of a pre-defined plan or standard.
• Decision-Making
– Decision-making is the process of selecting an action or actions
from those possible based on the information available. Decision
making involves determining and examining the available actions
and then selecting the most appropriate actions in order to achieve
the required results.
Management Information Systems
Unit 2: Foundation of Information System
Perspectives on Information Systems
• Too often you hear someone say, “Oh yeah, I know how to use a computer. I can
surf the Web with the best of them and I can play online games with people all
over the world for hours. I’m really good at computers.”
• Okay. So that person can pound a keyboard, use a mouse at lightning speed, and
has a list of favorite Web sites a mile long. But the real question becomes: “Is that
person information literate?” Just because you can pound the keyboard doesn’t
necessarily mean you can leverage the technology to your advantage or to the
advantage of your organization. An organization can gather and keep all the data
on its customers that a hard drive can hold. You can get all the output reports that
one desk can physically hold. You can have the fastest Internet connection created
to date. But if the organization doesn’t take advantage of customer data to create
new opportunities, then all it has is useless information. If the output report
doesn’t tell management that it has a serious problem on the factory floor, then all
that’s been accomplished is to kill a few more trees. If you don’t know how to
analyze the information from a Web site to take advantage of new sales leads,
then what have you really done for yourself today?
Management Information Systems
Unit 2: Foundation of Information System
Perspectives on Information Systems
• Most of us think only of hardware and software when we think of an information
system. There is another component of the triangle that should be considered, and
that’s the people side or “persware.” Think of it this way:

Information literacy is more than just clicking a


mouse, pounding the computer keyboard, or surfing
the Web. It’s about integrating the various elements
of an organization, technical and nontechnical, into
a successful enterprise. As a successful manager
you must concentrate on all three parts of the
information systems triangle (hardware, software,
and persware) and integrate them into a single,
cohesive system that serves the needs of the
organization, the wants of the customer, and the
desires of the employees; the more complex the
system, the harder to manage, but the greater the
payoff.
Management Information Systems
Unit 2: Foundation of Information System
Perspectives on Information Systems

• Information system:
• Set of interrelated components
• Collect, process, store, and distribute information
• Support decision making, coordination, and
control
An information system is a collection of hardware, software,
data, people and procedures that are designed to generate
information that supports the day-to-day, short-range, and long-
range activities of users in an organization.
Management Information Systems
Unit 2: Foundation of Information System
Perspectives on Information Systems

• Three activities of information systems that


produce information for an organizations need
• Input: Captures raw data from organization or
external environment
• Processing: Converts raw data into meaningful form
• Output: Transfers processed information to people or
activities that use it
Management Information Systems
Unit 2: Foundation of Information System
Perspectives on Information Systems

• Feedback:
• Output is returned to appropriate members of
organization to help evaluate or correct input stage.
• Computer/Computer program vs. information
system
• Computers and software are technical foundation
and tools, similar to the material and tools used to
build a house.
Management Information Systems
Unit 2: Foundation of Information System
Functions of an Information System
An information system
contains information
about an organization and
its surrounding
environment. Three basic
activities—input,
processing, and output—
produce the information
organizations need.
Feedback is output
returned to appropriate
people or activities in the
organization to evaluate
and refine the input.
Environmental actors,
such as customers,
suppliers, competitors,
stockholders, and
regulatory agencies,
interact with the
organization and its
information systems.
Management Information Systems
Unit 2: Foundation of Information System
Information Systems Are More Than Computers

Using information
systems effectively
requires an
understanding of
the organization,
management, and
information
technology shaping
the systems. An
information system
creates value for the
firm as an
organizational and
management
solution to
challenges posed by
the environment.
Management Information Systems
Unit 2: Foundation of Information System
Perspectives on Information Systems

• Organizational dimension of information


systems
• Hierarchy of authority, responsibility
• Senior management
• Middle management
• Operational management
• Knowledge workers
• Data workers
• Production or service workers
Management Information Systems
Unit 2: Foundation of Information System
Perspectives on Information Systems

• Organizational dimension of information


systems (cont.)
• Separation of business functions
• Sales and marketing
• Human resources
• Finance and accounting
• Manufacturing and production
• Unique business processes
• Unique business culture
• Organizational politics
Management Information Systems
Unit 2: Foundation of Information System
Perspectives on Information Systems

• Management dimension of information


systems
• Managers set organizational strategy for
responding to business challenges
• In addition, managers must act creatively:
• Creation of new products and services
• Occasionally re-creating the organization
Management Information Systems
Unit 2: Foundation of Information System
Perspectives on Information Systems

• Technology dimension of information systems


• Computer hardware and software
• Data management technology
• Networking and telecommunications technology
• Networks, the Internet, intranets and extranets,
World Wide Web
• IT infrastructure: provides platform that system
is built on
Management Information Systems
Unit 2: Foundation of Information System
Perspectives on Information Systems

• Business perspective on information


systems:
• Information system is instrument for creating
value
• Investments in information technology will result
in superior returns:
• Productivity increases
• Revenue increases
• Superior long-term strategic positioning
Management Information Systems
Unit 2: Foundation of Information System
Perspectives on Information Systems

• Business information value chain


• Raw data acquired and transformed through stages
that add value to that information
• Value of information system determined in part by
extent to which it leads to better decisions, greater
efficiency, and higher profits
• Business perspective:
• Calls attention to organizational and managerial
nature of information systems
Management Information Systems
Unit 2: Foundation of Information System
The Business Information Value Chain

View of a firm as a
series, chain, or
network of basic
activities that add
value to its
products and
services, and thus
add a margin of
value both to the
firm and its
customers.
Management Information Systems
Unit 2: Foundation of Information System
Perspectives on Information Systems

• Investing in information technology does not


guarantee good returns.
• There is considerable variation in the returns
firms receive from systems investments.
• Factors:
• Adopting the right business model
• Investing in complementary assets (organizational
and management capital)
Management Information Systems
Unit 2: Foundation of Information System
Perspectives on Information Systems

• Complementary assets:
• Assets required to derive value from a primary
investment
• Firms supporting technology investments with
investment in complementary assets receive
superior returns
• Example: Invest in technology and the people to
make it work properly
Management Information Systems
Unit 2: Foundation of Information System
Perspectives on Information Systems

• Complementary assets include:


• Organizational assets, for example:
• Appropriate business model
• Efficient business processes
• Managerial assets, for example:
• Incentives for management innovation
• Teamwork and collaborative work environments
• Social assets, for example:
• The Internet and telecommunications infrastructure
• Technology standards
Management Information Systems
Unit 2: Foundation of Information System
Contemporary Approaches to Information Systems

• Management Information Systems


• Combines computer science, management science,
operations research and practical orientation with
behavioral issues
• Four main actors
• Suppliers of hardware and software
• Business firms
• Managers and employees
• Firm’s environment (legal, social, cultural context)
Management Information Systems
Unit 2: Foundation of Information System
Sociotechnical Approaches to Information
Systems
• An organization can’t afford to view its information
resources as belonging to either the techies (technical
approach) or the nontechies (behavioral approach).
• Responsibility for information belongs to everyone in
the organization.
• This is the sociotechnical approach —a combination
of the two approaches. Everyone has to work
together to ensure that information systems serve the
entire organization.
Management Information Systems
Unit 2: Foundation of Information System
Conceptual Framework of IS Knowledge

• Fundamental behavioral, technical, business and managerial


concepts about IS components and IS roles
Management Information Systems
Unit 2: Foundation of Information System
Conceptual Framework of IS Knowledge

• Major concepts, developments and management issues in


issues in IS Technology
• Hardware • Data Management
• Software • Internet
• Networks Technologies
Management Information Systems
Unit 2: Foundation of Information System
Conceptual Framework of IS Knowledge

• The challenges of effectively and ethically managing


information systems at the end-user, enterprise, and global
levels of the business
Management Information Systems
Unit 2: Foundation of Information System
Conceptual Framework of IS Knowledge

• The major uses of Information Technologies for operations,


management and competitive advantages
Management Information Systems
Unit 2: Foundation of Information System
Conceptual Framework of IS Knowledge

• How information professionals and specialists plan, develop


and implement information systems to meet business
opportunities
Management Information Systems
Unit 2: Foundation of Information System
Resources/Components of an Information Systems

Managers, Users, operating system software,


System’s Designers, Web browsers, software
Customers and others productivity suites, and
software for business
applications like customer
relationship management
and supply chain
management
Data
Microcomputers, midsize
Vs servers, and large
mainframe systems, the
Information
input, output, and
storage devices that
support them

Communications media, communications processors, devices, network access and control software,
protocols used for communication etc.
Management Information
Information Systems Systems
Resources and Products
Unit 2: Foundation of Information System
People Resources
 Specialists-systems analysts, software developers, system operators.
 End Users-anyone else who uses information systems.
Hardware Resources
 Machines- computers, video monitors, magnetic disk drivers, printers,
optical scanners.
 Media-floppy disks, magnetic tape, optical disks, plastic cards, paper
forms.
Software Resources
 Programs-operating system programs, spreadsheet programs, word
processing programs, payroll programs.
 Procedures-data entry procedures, error correction procedures, paycheck
distribution procedures.
Data Resources
 Product descriptions, customer records, employee files, inventory
database.

Network Resources
 Communications media, communications processors, network access
and control software.
Management Information Systems
Unit 2: Foundation of Information System
Recognizing Information Systems

• Business professionals should be able to look at an


information system and identify…
• The people, hardware, software, data, and network
resources they use
• The type of information products they produce
• The way they perform input, processing, output, storage,
and control activities
Management Information Systems
Unit 2: Foundation of Information System
How do we develop an information system?

What’s the problem? What are you doing? I think this is what
(This is also known you should be doing!
as the planning
phase)

How are we
doing? Let’s
keep up the
good stuff, and Let’s do it!
improve where
we can!
Who should be Involved? Everyone!
Management Information Systems
Unit 2: Foundation of Information System
Types of Information Systems
Trends in Information Systems
Management Information Systems
Unit 2: Foundation of Information System

Next Class suggested reading


• Types of Information System
• Systems Development Life Cycle (SDLC) and its
Stages,
• Success and Failure of MIS
• Potential Risks of Information System

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