2007 mcom mis module 1.0

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Module 1
Basic Concepts of MIS
( Management
Information System )
MIS - an Introduction

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Data is raw facts or
observations about physical
phenomena or business
transactions, facts describing
those events.
Data is objective
measurements of the
attributes of entities.

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Data Versus Information
1200
100
West
Charles Mann
79154
TM
Shoes
Monthly Sales Report
for West Region
Sales Rep: Charles Mann
Emp No. 79154
Item Qty Sold Price
TM Shoes 1200 $100

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Information system
generates information from
data.
Information is processed
data, converted into a
meaningful and useful
context for specific end
users.

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Information is data subjected to
value added process
Managers at all levels of the
organisation require a steady
flow of information for
effective and efficient
functioning.

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Qualities of Information
Relevant
Complete
Timely
Accurate
Cost effective
Reliable
Concise
Clarity

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Attributes of Information
Quality

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1) Time Dimension-
Timeliness - Info should be provided
when it is needed
Currency - should be up-to-date when it
is provided
Frequency – should be provided as
often as needed
Time Period – can be provided about
past, present , and future time periods

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2) Content Dimension-
Accuracy - Info should be free from
errors
Relevance- should be related to the
information needs of a specific recipient
for a specific situation
Completeness – all the information that
is needed should be provided
Conciseness – Only the info that is
needed should be provided

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3) Form Dimension-
Clarity - Info should be provided in a form
that is easy to understand
Detail – Info can be provided in detail or
summary form
Order – info can be arranged in a
predetermined sequence
Presentation – can be presented in narrative ,
numeric , graphic , or other forms
Media - Info can be provided in the form of
printed paper documentation, video displays,
or other media

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Information as a Resource
Information Resource Management
(IRM) is an approach to management
based on the concept that information is
an organizational resource.
Features of Information:
1) Information is seen as an
organizational resource.
2) Information comes from various
sources- internal and external sources

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3) Information has a cost
4) Information has a return on
investment
5) It can be reused indefinitely
6) The managerial cost for
additional usage is low
7) It is intangible
8) It can be structured or
unstructured

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A manager should know how to
manage this important resource.
Computer-based Information
Systems are excellent tools for
collecting , storing , processing,
and presenting information.

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What IS a system?
A group of interrelated or interacting
elements forming a unified whole, OR
A group of interrelated components
working together toward a common goal
by accepting inputs and producing outputs
in an organized transformation process
(dynamic system).
Three basic interacting components:
 Input
 Processing (transformation process)
 Output

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SYSTEMSYSTEM
INPUT OUTPUTPROCESS
FEEDBACK

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Add Feedback and Control
Loops..
And the system, now called a
cybernetic system, becomes
even more useful.
Self-monitoring
Self-regulating

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FUNCTIONS OF AN INFORMATION SYSTEMFUNCTIONS OF AN INFORMATION SYSTEM
INPUT OUTPUTPROCESS
FEEDBACK
INFORMATION SYSTEMINFORMATION SYSTEM
ENVIRONMENTENVIRONMENT
Customers SuppliersCustomers Suppliers
Regulatory Stockholders CompetitorsRegulatory Stockholders Competitors
AgenciesAgencies
ORGANIZATIONORGANIZATION

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Other System Characteristics
A system exists and functions in an
environment containing other systems.
Subsystem – a component of a larger system.
Systems that share the same environment
may be connected to one another through a
shared boundary, or interface.
Open versus closed system - A system that
interacts with other systems in its
environment is open system
Adaptive system – a system that has the
ability to change itself or its environment in
order to survive.

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Information system is an
organised combination of
people,
hardware ,
software,
communication networks and
data resources
that collects , transforms and
disseminates information in an
organisation.

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Components or Resources of an
INFORMATION System

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Resources of an Information
System (Continued)
People Resources – people are required for the
operation of all Information Systems
 End Users
 IS Specialists – system analysts, programmers,
computer operators
Hardware Resources
 Computer systems ( machine )
 Peripherals
Software Resources
 System software
 Application software
 Procedures – operating instructions for people
who will use an IS

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Resources of an Information System
(Continued)
Data Resources
 Data resources are transformed by
information processing activities into
information products for end users
 Data resources are organized into
databases that hold organized and
processed data
Network Resources
Communication media
Network support

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Information System Activities
The basic information processing
activities that occur in information
systems are :
Input, Processing, Output, Storage, and
Control activities
1)Input of Data Resources – data
about business transactions and other
events must be captured and prepared
for processing, involves data entry
activities using user interfaces

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2) Processing of Data into Information-
by data processing activities such as
calculating, comparing, sorting,
classifying, and summerizing
These activities organize, analyse, and
manipulate data , thus converting them
into information for end users

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Conversion of facts into meaningful
information is known as data
processing - a systematic sequence
of operations on data
- Where the form is aggregated,
manipulated and organised,
- The content is analysed & evaluated,
- And it is placed in a proper context.

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3) Output of Information Products-
information in various forms is
transmitted to end users and made
available to them in the output activity
Messages, reports, forms, graphic
images, audio responses, paper
documents, and multimedia are the
general information products

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4) Storage of Data Resources- data and
information are retained in an organized
manner for later use.
Data is organised into fields, records,
files, and databases.

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5) Control of System Performance- an
information system should produce
feedback about its input, processing,
output, and storage activities.
This feedback must be monitored and
evaluated to determine whether the
system is meeting established
performance standards.

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Information System
Important ingredient in
developing competitive
products and services that give
an organization a strategic
advantage in global market
place.
Information Systems play a vital
role in the business success of an
enterprise.

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Towards a Definition of MIS
An Integrated, user-machine
system for providing information to
support
-operations,
- management, and
-decision making functions
of an organization
Definition by Gorden B.Davis

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MIS is :
A Management support system that
produces -
pre-specified reports, displays, and
responses
on a periodic, exception, or
demand basis.
Definition by James O’Brien

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SOCIOLOGYSOCIOLOGY
POLITICALPOLITICAL
SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTERCOMPUTER
SCIENCESCIENCE
OPERATIONSOPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
APPROACHES TO INFO SYSTEMS
MISMIS
BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

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Major Roles of IS
Top ManagementSupport
Competitive
Advantage
Support
Business
Decision Making
Support of
Business Processes and Operations

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TYPES OF INFORMATION SYSTEMSTYPES OF INFORMATION SYSTEMS
DATA WORKERSDATA WORKERS
KIND OF SYSTEM GROUPS SERVEDKIND OF SYSTEM GROUPS SERVED
STRATEGIC LEVEL SENIORSTRATEGIC LEVEL SENIOR
MANAGERSMANAGERS
MANAGEMENT LEVEL MIDDLEMANAGEMENT LEVEL MIDDLE
MANAGERSMANAGERS
OPERATIONALOPERATIONAL
OPERATIONAL LEVELOPERATIONAL LEVEL
MANAGERSMANAGERS
KNOWLEDGE LEVEL KNOWLEDGE &KNOWLEDGE LEVEL KNOWLEDGE &
SALES & MANUFACTURING FINANCE ACCOUNTING HUMANSALES & MANUFACTURING FINANCE ACCOUNTING HUMAN
RESOURCESRESOURCESMARKETINGMARKETING

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Major Roles of IS (continued)
Support Business Processes /
Operations
Support Managerial Decision Making
Support Competitive & Strategic
Advantage

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Trends in Information
Systems

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MAJOR TYPES OF SYSTEMS
EXECUTIVE SUPPORT SYSTEMS (ESS)
DECISION SUPPORT SYSTEMS (DSS)
MANAGEMENT INFORMATION SYSTEMS (MIS)
KNOWLEDGE WORK SYSTEMS (KWS)
OFFICE AUTOMATION SYSTEMS (OAS)
TRANSACTION PROCESSING
SYSTEMS (TPS)
*

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Types of Information Systems
Enterprise
Collaboration
Systems
Management
Information
Systems
Process
Control
Systems
Transaction
Processing
Systems
Decision
Support
Systems
Executive
Information
Systems
Operations
Support
Systems
Management
Support
Systems
Information
Systems
ProcessingProcessing
BusinessBusiness
TransactionsTransactions
ControlControl
of Industrialof Industrial
ProcessesProcesses
Team andTeam and
WorkgroupWorkgroup
CollaborationCollaboration
PrespecifiedPrespecified
ReportingReporting
for Managersfor Managers
InteractiveInteractive
DecisionDecision
SupportSupport
InformationInformation
Tailored forTailored for
ExecutivesExecutives
Supportof
Supportof
B
usiness
B
usiness
O
perations
O
perations
Support of
Support of
Managerial
Managerial
Decision Making
Decision Making

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Types of Information Systems
Operations Support Systems
Transaction processing systems
 Batch processing systems – transaction
data accumulate over time, processed
periodically.
 Real-time processing – data processed
immediately after a transaction occurs.
Process Control Systems – monitor &
control physical processes.
Enterprise Collaboration Systems

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Types of Information Systems (continued)
Management Support Systems
Management Information Systems –
pre-specified reports & displays to
support decision-making.
Decision Support Systems – provide
interactive ad hoc support.
Executive Information Systems – critical
information tailored to the information
needs of executives.

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Types of Information Systems (continued)
Other Classifications
Expert systems – expert advice
Knowledge management systems –
support the creation, organization, &
dissemination of business knowledge
Functional business systems – support
the basic business functions
Strategic information systems –
strategic advantage

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In Summary, the IS
Function…
Is a major functional area of business.
Is an important contributor to operational
efficiency, employee productivity and
morale, and customer service &
satisfaction.
Is a major source of information and
support for decision making.
Provides a strategic advantage in
developing competitive products &
services.

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As the problems of information
management increase, new
information technologies are evolved
which provide tools such as –
Decision support systems, Expert
systems, AI, Transaction processing
systems, Telecommunications,
Networking, Office Automation
System, Electronic mail, and
Database management systems.

2007 mcom mis module 1.0

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Editor's Notes