Information Systems Management

Introduction to Management Information System

UNIT I - CHAPTER-1

-Ms. Palak Gupta

 Chapter Preview
In this chapter, we will study about MIS:
– Why MIS ?
– What is a MIS
– Management, Information & System
– Data VS Information
– Information System, CBIS
– Stages of Data Processing
– Why study IS ?
– Ethical & Societal Issues
 Why MIS?
Today’s Manager is confronted with TWO main challenges:

he/she has to

– TAKE QUICK DECISIONS

– PROCESS A LARGE VOLUMINOUS INFORMATION
 What is an MIS?
MIS- An Acronym of _ _ _

•M - MANAGEMENT
•I - INFORMATION
•S - SYSTEM
 MANAGEMENT
To get the work done through and with the help
of people

By performing basic functions of management as-

PLANNING
ORGANISING
STAFFING
DIRECTING
CONTROLLING
 INFORMATION
For Decision Making INFORMATION is the
necessary and vital input
• Why Do People Need Information?

– Individuals - Entertainment and enlightenment,

knowledge addition

– Businesses - Decision making, problem solving and

control
 Data, Information and Systems
• Data vs. Information
– Data
• A “given,” or fact; a number, a statement, or a picture
• Represents something in the real world
• Example-The raw materials in the production of information,
Detailed Marks of all students in a class, Business data as obtained from
various business houses

– Information-processed data useful to the recipient

• Data that have meaning within a context
• Data in relationships
• Data after manipulation
Example-Profit of the company in the current year
 Then Information is……
WHICH
• Tells something the receiver did not know
• Reduces uncertainty
• Has a surprise value
• Has a real / perceived value in current /
prospective decision.
 Management Hierarchy
Levels:

• Strategic Planning : make long-range strategic decisions about

products and services

• Tactical Planning / Management Control: Carry out the

programs and plans of senior management

• Operational Planning/ Control: monitor the firm’s daily

activities
Management Level Functions
 Information Needs of Different Level Managers

Strategic Planning
Level
•Unstructured
•Non-
programmed
•Futuristic
Operational Contro
•Inexact l
Level
•External •Structured
•Programmed
•Historical
•Exact
•Internal
 ……THEN WHAT IS A System?

“The word ‘System’ is the most loosely held word in

Management Literature”

Input Process Output

A set of inter-related elements working

towards a common objective(s).
 SYSTEM
• "A system is an orderly grouping of
interdependent components linked together
according to a plan to achieve a specific goal".
• In MIS we are usually concerned with man-
made system involving input, process and
output.
• A system may have multiple inputs and
multiple outputs.
 Data, Information and Systems
• What Is a System?
– System: A set of components that work together to achieve
a common goal

– Subsystem: One part of a system where the products of

more than one system are combined to reach an ultimate
goal

– Closed system: Stand-alone system that has no contact with

other systems

– Open system: System that interfaces with other systems

 System and Environment
• A system is a set of interrelated elements
that collectively work together to achieve
some common goal or objective.
All systems function within some kind of
environment.
Environment
Boundary
Systems
Open/ Cybernetic System

Input Process Output

Feed Back /Control Loop

Involves a feed back control Loop

Management Information System is…
• A set of interrelated components which
– Collect, retrieve, process, store and distribute information
– To support decision making
– Of managers
– In an organization.
MIS utilizes
• Computer H/w and S/w
• Databases
• Model bases
• Operating procedures
• People
Computer Based Information System

 The moment we say MIS, now a days,

It is implied that

IT IS COMPUTER BASED MIS

 Data, Information and Systems
• Data Manipulation

– Example: customer survey

• Reading through data collected from a customer survey with
questions in various categories would be time-consuming and not
very helpful.
• When manipulated, the surveys may provide useful information.
 Data, Information,
and Systems
• Generating Information
– Computer-based ISs take data as raw material, process it, and
produce information as output.

Figure 1.1 Input-process-output

Data, Information and
Systems
• Information in Context

Figure 1.2 Characteristics of useful information

Information and Managers
Systems thinking
Creates a framework for problem solving and decision
making.
Keeps managers focused on overall goals and operations
of business.

Figure 1.3 Several subsystems make up this corporate

accounting system.
 Data, Information and Systems

Figure 1.5 Qualities of humans and computers that contribute to

synergy
 Data, Information and Systems

Figure 1.6 Components of an information system

• The Four Stages of Data Processing

– Input: Data is collected and entered into computer.

– Data processing: Data is manipulated into information using

mathematical, statistical, and other tools.

– Output: Information is displayed or presented.

– Storage: Data and information are maintained for later use.

 Why Study IS?
• Information Systems Careers
– Systems analyst, specialist in enterprise resource planning (ERP), database
administrator, telecommunications specialist, consulting, etc.

• Knowledge Workers
– Managers and non-managers
– Employers seek computer-literate professionals who know how to use
information technology.

• Computer Literacy Replacing Traditional

Literacy
– Key to full participation in western society
 Ethical and Societal Issues

• Consumer Privacy
– Organizations collect (and sometimes sell) huge
amounts of data on individuals.

• Employee Privacy
– IT supports remote monitoring of employees,
violating privacy and creating stress.
 Ethical and Societal Issues
• Freedom of Speech
– IT increases opportunities for pornography, hate speech, intellectual property
crime, an d other intrusions; prevention may abridge free speech.

• IT Professionalism
– No mandatory or enforced code of ethics for IT professionals--unlike other
professions.

• Social Inequality
– Less than 20% of the world’s population have ever used a PC; less than 3%
have Internet access.