MANAGEMENT INFORMATION SYSTEM

Chapter 1: Information Systems (IS)

Lecture 1, MIS, BBA2K21 and BSCS2K23 Batch

IRFAN BALOCH, LECTURER BUSINESS ADMINISTRATION

Chapter Outline
 Introduction
 Information System
 Dimensions of Information system
 Components of information system
 List of information systems
 Role of Information Systems
 Levels of Management in a firm
 Management Information System (M.I.S)
 Dimensions of M.I.S
Introduction
 Data is the raw information, like numbers or words, that we
collect in our business.
• Example: In a store, data could be the list of all the products and their
prices.
 Information is what we get when we organize and make sense
of our data. It's like turning raw numbers into something useful.
• Example: Instead of just having a list of products and prices,
information would tell us which products are selling the most and
when.
Introduction
 System In IT : a system refers to interconnected components
(hardware, software, networks) working together to perform a
specific function or process data.
• Example: A computer system consists of hardware like the CPU and
RAM, software for running applications, and a network for data exchange.
Information System
 Information system: Three activities
produce information 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

 Feedback: Output 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
Dimensions of Information System
 Definition: Information systems (IS) are the backbone of modern
organizations, seamlessly integrating people, processes, and
technology to enhance the utilization of information.
 In today's digital age, effective IS is crucial for organizational
success, providing a competitive edge.
People – to help support decision
making, coordination, control,
analysis, and visualization in an
organization

An Information Technology – hardware,

System has all
Process – collects, software, and networks that
3 dimensions
processes, stores, and working support the business
disseminates together processes and people
Components of Information System
 Several components work together to add value to an
organization:
1. Hardware Technology Related
2. Software
3. Data
4. People Roles
5. Process
List of Information Systems
 The table below shows a small list of information systems you can
find in a variety of businesses:
Organization Purpose Description
American Apparel Point-of-Sale (POS) System POS data (the data recorded when merchandise is sold) is integrated with an
inventory database, so more merchandise can be ordered.
Orange County Employee Hiring System Web based system that posts job opportunities and lets people apply online. Hiring
Department of systems often filter resumes using the digital keywords from the online application.
Education Hiring systems also manage the application through the hiring process.
Sales Dashboard Sales Dashboard The digital dashboard gives a quick view of revenue earned this year compared to
last, number of new leads generated, top 5 products, sales per rep and regional
sales.
Sports Analytics Any professional team Consultants and specialists to look at various data to make a team more successful
and recruit players that add to the team’s success.
Coursera.com Online education. “Take the Video lectures and online assignments are offered for free. It costs a nominal fee for
world’s best courses, online, for a certificate of completion.
free.”
Boeing Corporation SAP System Integrated enterprise-wide information system that handles procurement,
manufacturing, marketing, sales, employee benefits, accounting, finance…and just
about every business function you can think of.
Obamacare National healthcare system for Individual exchanges for each state in which people are required to register to
the United States insurance.
Waze.com Geographic information system. App that provides mapping, traffic reporting and routing to avoid traffic.
WireShark Network Analyzer Software that helps users to examine network traffic to identify problems.
AS-Software.com Sonograms (ex. Seeing a fetus Specialized software for ultrasound reporting and image management, reporting and
inside the mother’s womb) consultation.
Role of Information Systems
 How information systems are transforming business
• Increase in wireless technology use, Web sites
• Shifts in media and advertising
• New federal security and accounting laws
 Globalization opportunities
• Internet has drastically reduced costs of operating on global scale
• Presents both challenges and opportunities
 Enhancing Decision Making
• Example: Implementing predictive analytics tools to forecast market
trends and guide strategic decisions.
Role of Information Systems
 Digital firms offer greater flexibility in
organization and management
 Virtual Meetings : smart management
• What are the advantages of using videoconferencing technologies?
What are the disadvantages?
• What is telepresence and what sorts of companies are best suited
to use it as a communications tool?
• What kinds of companies could benefit from using
videoconferencing? Are there any companies that might not derive
any benefits from this technology?
 New products, services, and business models:
• Information systems and technology a major enabling tool for new
products, services, business models
o
Role of Information Systems
 Operational excellence:
• Improvement of efficiency to attain higher profitability
• Information systems, technology an important tool in achieving
greater efficiency and productivity
• Wal-Mart’s Retail Link system links suppliers to stores for superior
replenishment system
• Example: Enterprise Resource Planning (ERP) systems
automating routine tasks, reducing manual errors, and enhancing
overall operational efficiency.
Role of Information Systems
 Waves of IT ; how IT is changing its pace
Levels of Management in a firm
 Anthony’s Triangle
 Convenient way to categorize and understand the purpose of
different information systems in organizations:

Executive Information Systems

(EIS) for senior management
decision making

Management Information Systems

(MIS) for decision making by middle
management

Transaction Processing Systems

(TPS) for daily transactions of the
business
Management Information System (MIS)
 Definition: MIS is a specialized form of IS designed to support
managerial decision-making by providing timely, relevant, and
accurate information.
 Purpose: MIS helps managers analyze data, assess
performance, and make informed strategic decisions.
 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
•
Dimensions of M.I.S
 Organizational dimension of Management information
systems
• Hierarchy of authority, • Separation of business
responsibility functions
o Senior management o Sales and marketing
o Middle management o Human resources
o Operational management o Finance and accounting
o Knowledge workers o Manufacturing and production
o Data workers • Unique business processes
o Production or service workers • Unique business culture
• Organizational politics
Dimensions of M.I.S
 Management dimension of information systems
• Managers set organizational strategy
for responding to business
challenges
• In addition, managers must act
creatively:
o Creation of new products and services
o Occasionally re-creating the
organization organizational
restructuring
Dimensions of M.I.S
 Technology dimension of information systems
• Computer hardware and software
• Data management technology
• Networking and telecommunications
technology
o Networks, the Internet, intranets and extranets,
World Wide Web

• IT infrastructure: provides platform that

system is built on
THANKS