MANAGEMENT INFORMATION

SYSTEM (MIS)

Instructor: Asim Rasul

Asst. Professor
Department of Computer
Science,
FCIT, University of the Punjab.
E-mail:- asim @pucit.edu.pk
MANAGEMENT INFORMATION
SYSTEM (MIS)
 Course Code: IT-372
 Credit Hours: 3

 Marks Distribution:

 Mid-term Exam (35%)

 Sessional (25%)***
 Final-term Exam (40%)
(Total Marks: 100)
IT-372 MANAGEMENT
INFORMATION SYSTEM(IS)
 Text Book:
“Management Information System by
Kenneth C. Laudaon and Jane P. Lauden
16th Edition

 Reference Material
 Information System by Virtual University Pakistan
 Lecture Notes and video lectures by MUJAHID ISHAI
 Information System by Rai University India
 Lecture Notes
 INTRODUCTION TO INFORMATION
SYSTEMS
Learning Objectives
• To explain how IT impacts upon organizations.
• To analyze the necessity for IS in the management of
modern, and increasingly global, organizations.
• To recognize that IT professionals need to understand
how an organization operates in order to effectively
apply technology to make the organization more
efficient and competitive.
• To explain how an organization must change in order to
successfully capitalize on the use of IS and the
consequent impact on organizational structure and
employees.
• To identify how the benefits of using IS may be
measured and assessed, and contrast with existing
WHAT CAN YOU GET FROM AN INFORMATION
SYSTEMS COURSE?

 The value of the information systems professional

stems from a breadth of knowledge and skills.
“A mile wide and an inch deep”
 Requirements of an information system are to do
with the people and organizations that the system
must serve, as well as IT capabilities. Consequently,
the field is a multidisciplinary one, which requires
specialist knowledge of the computer world, the
world of organizations and people for whom the
system must process information, and the
professional skills and knowledge to make the former
work for the latter. Not least, the information
systems professional will have communication and
interpersonal skills, for example, needed to elicit
those requirements and communicate analyses and
designs to decision makers.
 Introduction to Information
Systems
1.1 Introduction
 Tremendous amount of data provides opportunities
to analyze it to make better decisions.
 Changing our lives—Communication ways
 Information System / Computer Information System
 Components of Information System
H/W, S/W, People, Procedures, Databases
 Quality is in an important issue in business today,
the quality of an information system is measured by
its ability to provide information.
WHY DATA AND INFORMATION ????
 For example:
 Robcor company has two divisions and the two division has
1,380,456 and 1,453,907 invoices, respectively.
 Each invoice has invoice number, date, and amount
 The period is from the first quarter of 1997 to first quarter of
2002.
 Total 2,834,363 records
Why Data and Information ????
WHY DATA AND INFORMATION ????

• Data constitute building blocks of information

• Information produced by processing data
• Information reveals meaning of data
• Good, timely, relevant information key to decision
making
• Good decision making key to organizational survival
 INTRODUCTION TO INFORMATION
SYSTEMS
 Data: facts and figures
 Information: Processed or meaningful form of data
 Knowledge: education and experience create knowledge in humans.
 Wisdom: is more difficult to define but represents the ability to learn
from experience and adapt to changing conditions.
 CHARACTERISTICS OF INFORMATION
 Timeliness: Information must reach the user in a timely
manner, just when it is needed; not too early, because by the time
it is used it would be out-of-date; not too late because the user
will not be able to incorporate it into his/her decision-making.
 Appropriateness: Information must be relevant to the
person who is using it. It must be within the sphere of his/her
activities so that it can be used to reduce uncertainty in his/her
decision-making.
 Accuracy: Accuracy costs. We don't always need 100%
accurate information so long as we know the degree of accuracy
it represents (eg: + or - 5%). (Remember the value of
information).
 Conciseness: Information should always contain the minimum
amount of detail that is appropriate for the user. Too much detail
causes information overload.
 Frequency: Frequency is related to timeliness. Too often the
information presented is linked to the calendar (end of the week,
beginning of the month); its frequency should be synchronized
with the timing of the decision making of the user.
CHARACTERISTICS OF INFORMATION
 Understandability: The format and presentation of
information are very important. Some people prefer tabular
information, whereas others may need it in a graphical form.
Also the use of colors enhances the understandability of what
is presented.
 Relevant: It pertains to the particular problem. What data is
relevant depends on the decision-making model used. E.g.
university admissions officials may choose to consider the
results of some high-school test irrelevant, if they believe that
it does not improve the chances of some applicant later
becoming a successful student.
 Complete: All the relevant parts are included. E.g.
marketing data about household incomes may lead to bad
decisions, if not accompanied by consumption habits of the
target population.
 Current: Decisions are often based on the latest information
available
 Economical: The costs of gathering information should be
justified by the overall benefits
SOURCES OF INFORMATION
 Primary: Primary sources are original materials on
which other research based. They present information
in its original form neither interpreted nor condensed
nor evaluated by other writers.

 Secondary: interpreted or condensed or evaluated

by other writers.

 Tertiary: materials in which the information from

secondary sources has been digested reformatted and
condensed, to put into a convenient, easy to read
form.
WHAT IS A SYSTEM
A system is a group of interrelated
components working together toward a
common goal by accepting inputs and
producing outputs in an organized
transformation process. System will have
the following basic interacting components
(functions):

1. Input
2. Processing
3. Output
4. Feedback
5. Control
WHAT IS A SYSTEM

The three activities in an

information system

INPUT PROCESS OUTPUT

FEEDBACK

(Feedback enables modification of input stage)

 WHAT IS AN INFORMATION SYSTEM?
 “Information Systems is historically defined as a
'bridge' between the business world and computer
science” (Wikipedia)
 “Information system is an integrated set of
components for collecting, storing, processing, and
communicating Information” (Encyclopedia Britannica)
 “Information system can be defined technically
as a set of interrelated components that collect(or
retrieve), process, store, and distribute information
to support decision making, coordination, and
control in organization”.(Text Book)
BUSINESS FIRMS, OTHER ORGANIZATIONS, AND
INDIVIDUALS IN CONTEMPORARY SOCIETY RELY ON
INFORMATION SYSTEMS TO MANAGE THEIR OPERATIONS,
COMPETE IN THE MARKETPLACE, SUPPLY SERVICES, AND
AUGMENT PERSONAL LIVES.
HOW INFORMATION SYSTEMS ARE TRANSFORMING
BUSINESS?

 In 2021, FedEx Moved over > 600 Million

packages daily and earned revenue $84 billion

 In 2022, United Parcel Service (UPS) Moved over

24.3 Million packages daily worldwide (220
countries). totaling 6.2 billion packages during the
year. Total revenue in 2022 was $100.3 billion.

 Letter, Post office, newspaper, movie shop, TV,

Camera, Typewriter….?

 Google’s online ad revenue surpassed $ 168

billion in 2022 while Meta made $112 billion.
 TRANSFORMATION WITH INFORMATION
SYSTEMS
 Emergence of Global Economy( Round-Flat)
 Competitive business Environment (Challenges &
Opportunities)
 Efficient,
Low cost  Profitable
 The emergence of the internet into a full-blown
international communication system has drastically
reduces the costs of operating on a global scale.
 Transformation of Industrial Economics

 knowledge and information are key ingredients in

creating wealth
 Transformation of Business Enterprise

 Technology, to a large extent, has driven

organizations to change the way they operate and
that includes the way they manage. “Virtual Meeting /
Management / Organization”
 THE EMERGING DIGITAL FIRM
 A digital firm is one in which
nearly all of the organization’s
significant relationship with
customers, suppliers and
employees are digitally
enabled and mediated core
business processes are
accomplished through digital
networks spanning the entire
organization or linking multiple
organization.

 Time shifting 24 * 7
 Space shifting work place
wherever
 Accenture
 CISCO, IBM, DELL …
STRATEGIC BUSINESS OBJECTIVES OF
INFORMATION SYSTEMS
 Operational Excellence  Wal-Mart (Page 410) , UPS (Page. 22)

 Customer and Supplier Intimacy  TOYOTA, Wal-Mart

 New Product/Service/Business Model Facebook /

Amazon/ Alibaba, OLX, Google, ebay, twitter,….!

 Improved Decision Making Dashboard, Smart Phone

 Competitive Advantages Wal-Mart, UPS

 Survival Legal Binding

BUSINESS PROCESSES
 Refersto the set of logically related tasks
and behaviors that organizations develop
over time to produce specific business
results and the unique manner in which
these activities are organized and
coordinated. e.g.

• Developing a new product

• Generating and fulfilling an order
• Creating a marketing plan
• Hiring an employee

 Ways an organization accomplished their

business processes??
THE NEW ROLE:
THE WIDENING SCOPE OF INFORMATION
SYSTEMS

Relative
importance
---------------
Area of
impact
What happened!
TYPES OF INFORMATION SYSTEMS
 Office Automation System(OAS)
 Transaction Processing System(TPS)

 Distributed Database Systems

 Management Information System(MIS)

 Data Warehouses (DWH) / Data Mining

 Executive Information System (EIS)

 Enterprise Resource Planning (ERP)

 Enterprise System

 Expert System

 Global / Geographical Information System

 Management Information Systems
Chapter 1 Information Systems in Global Business Today

Perspectives on Information Systems

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.

Figure 1-5
WHAT IS ORGANIZATION?
a group of people who work together
 An organization is a social arrangement
which pursues collective goals, controls its
own performance
 Key Elements: people, structure, business
processes, politics and culture
 Business Functions:
 Specialized tasks performed in a business
organization, including sales, HR, marketing,
accounts, production, finance etc.
 SOPs:
 Formal rules for accomplishing tasks that have
been developed to cope with expected
situation.
WHAT IS MANAGEMENT?
 Management in all business and human
organization activity is simply the act of
getting people together to accomplish
desired goals and objectives.
 Management is the process of getting

activities completed efficiently and

effectively with and through other people.
 Level of management:
 Senior Manager: makes long-range strategic Decisions
 Middle Manager: carries out the programs and plans
 Operational Manager: responsible for monitoring the
daily
activities of business
 Knowledge, Data and Production Workers
TECHNOLOGY?

 Computer Hardware
 Computer Software

 Data Management Technology

 Network and Telecommunication Technology

 Internet/Intranet/Extranet

 World Wide Web

 IT Infrastructure
BUSINESS PERSPECTIVE OF IS
•Organizations
–We must understand the nature, the purpose,
and the structure of the organizations that will
use the IS.
•People
–We must understand how they use the IS, why
they use the IS, and it affects their jobs and
daily activities.
•Technology
–We must understand the capabilities,
limitations, and functionality if the technology
that underlies the IS.
 Management Information Systems
Chapter 1 Information Systems in Global Business Today

Perspectives on Information Systems

The Business Information Value Chain

From a business perspective, information systems are part of a series of value-adding

activities for acquiring, transforming, and distributing information that managers can use to
improve decision making, enhance organizational performance, and, ultimately, increase
firm profitability.

Figure 1-7
 Management Information Systems
Chapter 1 Information Systems in Global Business Today
Perspectives on Information Systems

 An information System is an important

instrument for creating value for the firm

 But Investing in information technology

only does not guarantee good returns
• Complementary Assets are those assets required to
derive value from a primary investment

 Invest in technology and the people to

make it work properly
 Management Information Systems
Chapter 1 Information Systems in Global Business Today

Perspectives on Information Systems

 Complementary assets include: (Details page # 27

Table 1.3)

 Organizational investments, e.g.

 Appropriate business model
 Efficient business processes

 Managerial investments, e.g.

 Incentives for management innovation
 Teamwork and collaborative work environments

 Social investments, e.g.

 The Internet and telecommunications infrastructure
 Technology standards
 Management Information Systems
Chapter 1 Information Systems in Global Business Today

Perspectives on Information Systems

Contemporary Approaches to Information Systems

The study of information systems deals with issues and insights contributed from technical
and behavioral disciplines.

Figure 1-9
COMPUTER LITERACY V/S IS
LITERACY
 Computer Literacy:
Knowledge about information technology,
focusing on understanding of how computer
based technologies work.

 Information Systems(IS) Literacy:

broad based understanding of information
systems that includes behavioral knowledge
about organizations and individual using
information systems as well as technical
knowledge about computers.
 Sociotechnical System
END of Chapter 1

TEST Chapter 1