LESSON 4:

INFORMATION
NEEDS AND
OBJECTIVES
OBJECTIVES
Enumerate the few common Identify the needs
factors that reflect on the of an information;
needs and objectives of the
Identify the five
information processing;
main uses
Determine the implications of information by
information in business business and other
organization; and
Explains MIS Need
for information
System.
INTRODUCTION
• INFORMATION
PROCESSSING beyond doubt
is the dominant industry of the
present century. Following
factors states few common
factors that reflect on the needs
and objectives of the
information processing:
a) Increasing impact of information processing
for organizational decision making.
b) Dependency of services sector including
banking, financial organization, health care,
entertainment, tourism and travel, education
and numerous others information.
c) Changing employment scene world over,
shifting base from manual agricultural to
machine-based manufacturing and other
industry related jobs.
d) Information revolution and the overall
development scenario.
e) Growth of IT industry and its strategic
importance.
f) Strong growth of information services fueled
by increasing competition and reduced
product life cycle.
g) Need for sustainable development and
quality life.
h) Improvement in communication and
transportation brough in by use of
information processing.
i) Use of information processing in
reduction of energy consumption,
reduction in pollution and a better
ecological balance in future.
j) Use of information processing in land
record managements, legal delivery
system, educational institutions, natural
resource planning, customer relation
management and so on.
In a nutshell:
 information is needed to
survive in the modern
competitive world.
Information is needed to create
strong information system and
keep these system up to date
 IMPLICATIONS OF
INFORMATION IN BUSINESS
• Information processing has transformed our society
in numerous ways. From a business perspective,
there has been a huge shift towards increasingly
automated business processes and communication.
Access to information and capability of
information processing has helped in achieving
greater efficiency in accounting and other business
processes.
 A complete business information system
accomplishes the following functionalities:
1. Collection and storage of data.
2. Transform these data into business
information useful decision making.
3. Provide controls to safeguard data.
4. Automate and streamline reporting.
 THE FOLLOWING LIST
SUMMARIZES THE FIVE
MAIN USES OF
INFORMATION BY
BUSINESSSES AND
OTHER ORGANIZATION
A. PLANNING- At the planning stage,
information is the most important
ingredient in decision making. Information
at planning stage includes that of business
resource, assets, liabilities, plats and
machineries, properties, supplier,
customers, competitors, market and market
dynamics, fiscal policy changes of the
Government, emerging technologies, etc.
B. RECORDING- Business processing these
days involves recording information about
each transaction or event. This information
is collected, stored, and updated regularly at
the operational level.
C. CONTROLLING- A Business need to set up
an information filter, so that only filtered data
is presented to the middle and top
management. This ensures efficiency at the
operational level and effectiveness at the
tactical and strategic level.
D. MEASURING- A business measures its
performance metrics by collecting and
analyzing sales data, cost manufacturing, and
profit earned.
E. DECISION-MAKING - MIS is primarily concerned
with managerial decision-making, theory of
organizational behavior, and underlaying human behavior
in organizational context. Decision-Making information
includes the socio-economic impact of competition,
globalization, democratization, and the effects of all these
factors on an organizational structure.
In short, this multi-dimensional information
evolves from the following logical foundations:
 operations research and management science.
 theory of organizational behavior
 Computer science
i. Data and file structure
ii. Data theory design and implementation
iii.Computer networking
iv. Expert system and artificial intelligence
 Information theory
FOLLOWING FACTORS ARISING AS AN OUTCOME OF
INFORMATION PROCESSING HELP SPEED OF
BUSINESS EVENTS AND ACHIEVE GREATER
EFFECIENCY
Directly and immediate linkage to the system
Faster communication of an order
Electronic transfer of funds for faster payment
Electronic transfer of funds for faster payment
Electronically solicited pricing( helps in
determining the best price)
MIS Need for Information Systems
Manager make decisions. Decision-making generally
takes a four-fold path:

Understanding the needs for decision or the opportunity,

Preparing alternative course of actions,
Evaluating all alternatives course of actions,
Deciding the righ path for implementation.
MIS in an information system that provides
information in the form of standardized reports and
display for the managers. MIS is a broad class of
information systems designed to provide
information needed for effective decision making.
Data and information created from an accounting
information system and report generated thereon are
used to provide accurate, timely and relevant
information needed for effective decision making by
managers.
Management information system provide
information to support management decision
making, with the following goal:
a) Pre-specified and preplanned reporting to
managers.
b) Interactive and ad-hoc support for decision
making.
c) Critical information fortop management.
MIS is of vital importance any
organization, because:
 It emphasizes on the management decision
making, not only processing of data
generated by business operations.
 It emphasizes on the systems framework
that should be used for organizing
information system applications.
Quiz

1-5: List the Five Main Uses of INFORMATION By

BUSINESS AND OTHER ORGANIZATIONS.
True or False
6. Information is not needed to survive the modern
competitive world.
7. Information is needed to survive the modern
competitive world.
8-10. List down 3 reasons why there’s a need for
information