ALPHA UNIVERSITY

UPGRADE INFORMATION
TECHNOLOGY IN CYBER SECURITY

Management Information System

MIS
Chapter 2
Lecturer: Nasrudin A. Muhumed
At the end of this course student will be able
to
• Understand and recognize the relationship between information and
decision making.
• Understand and recognize the relationship between information and
decision making.
• Know significance of information and information systems as basic
resources from managerial perspective in decision-making
• Appreciate the role of Information and its management in the era of
knowledge/information economy
• Understand the business value of internet, e-commerce.
 Chapter 2
Foundational Concepts in
Management Information
System
Chapter Contents
Foundational Concepts in Management Information System
Business and Management Functions
Management Functions
The Information Needs and Sources
What are the sources of information?
What is E-Business?
Roles of MIS Applications in Business
Foundational Concepts in Management
Information System
• Management has been defined in a verity of ways, but for our
purposes it comprises the processes and activities that describe what
managers do in the operation of their organization; plan, organize,
initiate, and control operations.

• Because decision making is such a fundamental prerequisite to each

of the foregoing processes, the role of MIS becomes that of facilitating
decisions necessary for planning, organizing, and controlling the work
and functions of the business.
Business and Management Functions
• At the most fundamental level, management is a discipline that
consists of a set of five general functions: planning, organizing,
staffing, leading and controlling. These five functions are part of a
body of practices and theories on how to be a successful manager.

Planning: When you think of planning in a management role, think

about it as the process of choosing appropriate goals and actions to
pursue and then determining what strategies to use, what actions to
take, and deciding what resources are needed to achieve the goals.
Cont.
Organizing: This process of establishing worker relationships allows
workers to work together to achieve their organizational goals.

Leading: This function involves articulating a vision, energizing

employees, inspiring and motivating people using vision, influence,
persuasion, and effective communication skills.
Cont.
Staffing: Recruiting and selecting employees for positions within the
company (within teams and departments).

Controlling: Evaluate how well you are achieving your goals,

improving performance, taking actions. Put processes in place to help
you establish standards, so you can measure, compare, and make
decisions.
Management Functions
 Data, Information, Knowledge and Wisdom

Data – raw facts about people, places, events, and things that are of
importance in an organization.

Information – data that has been processed or reorganized into a more

meaningful form for someone.
Cont.
Knowledge – data and information that is further refined based on the
facts, truths, beliefs, judgments, experiences, and expertise of the
recipient.

Wisdom-good sense: the ability to make sensible decisions and

judgments based on personal knowledge and experience.
What are the sources of information?
• An organizations information needs are met through
gathering information from both internal and external
environment.
• Internal information can be generated by maintaining and
processing business transactional data and overall
organizational data or information.
What is E-Business?

• Electronic business, or e-business, means using the Internet

and the web to perform business processes.

• Although the terms e-business and e-commerce are used

interchangeably, e-commerce refers to selling online, while e-
business encompasses all business transactions—marketing,
accounting, operations, procurement and supply
management. E-business is about using web technology to
enhance your business practices.
Cont.
• E-business is not a new concept. Banks have been using
electronic fund transfers to move money around the world for
decades. Large businesses have used electronic data
interchange to place orders and send invoices since the
1960s. What is new is the current accessibility of e-business
to small businesses due to reduced costs and simpler set-up.
Roles of MIS Applications in Business
• Management Information systems perform three vital roles in
any type of organization:
1. Support of business operations
2. Support of managerial decision-making
3. Support of strategic competitive advantage
Assignment
1. What is about Business Systems?
2. Define Knowledge Economy
3. Briefly describe Global Information/ Knowledge
Society
4. Information needs and sources