Management Information System

Introduction to the Course Subject: Intro. to Management Information System Lecturer: EkaPujiAgustini E-mail:eka_puji_agustini@yahoo.com Facebook: eka_puji_agustini

MANAGEMENT INFORMATION SYSTEM SUBJECT OBJECTIVE To enable students to understand basic information technology concepts and participate in developing information systems solutions to business problems. To assist students to understand the fundamental concepts of real-world information systems and to demonstrate the potential advantages of state-of-the-art information technology applications in organizational. SUBJECT SYNOPSIS The foundations of information systems. Information management and its strategic role in organizations. The technical foundations of information systems; elements of information processing and the telecommunication. The contemporary tools, techniques and approaches used to build information systems.

COURSE CONTENT Management information systems (MIS); challenges and opportunities, the strategic role of information systems in organizations, and business processes Management of information and decision making; ethical and social impact of information systems. Computers and information processing; information systems software, and managing data resources Telecommunications and the internet networking, redesigning the organization with information systems and ensuring quality with information systems. Managing knowledge and enhancing management decision making. Controlling information systems and managing international information systems. REFERENCE BOOKS Ralph M. Stair, G.W Reynolds, 2008, Principles of Information System, A Managerial Approach, Thomson Learning (Text Book). Kenneth C.L. and Jane P.L., 1998. Management Information Systems: New Approaches to Organization and Technology, Fifth Edition, Prentice Hall. Sarah, E., Sawyer and Stacey, C., 1998, Management Information Systems for the Information Age, Irwin/McGraw-Hill, Boston, Massachusetts, ISBN: 0-07-025465-6. Post, G.V. and David L.A., 1997, Management Information Systems: Solving Business Problems with Information Technology, Irwin/McGraw Hill, Illinois.

Information Concepts (1) Data vs. Information Data Raw facts Distinct pieces of information, usually formatted in a special way Information A collection of facts organized in such a way that they have additional value beyond the value of the facts themselves

Examples Data – thermometer readings of temperature taken every hour: 16.0, 17.0, 16.0, 18.5, 17.0,15.5…. Information – today’s high: 18.5 today’s low: 15.5 Transformation

Types of Data

Data  Information Data Transformation Information

Characteristics of Valuable Information accurate, complete, economical, flexible, reliable, relevant, simple, timely, verifiable, accessible, secure

Example: Health Information You want the information about you in a health information system to be: As accurate as possible (e.g. your age, sex) As complete as possible Relevant To be reliable Should be available in a timely manner (e.g. information about your drug allergies are available before your operation!)

System Definition A set of elements or components that interact to accomplish goals A combination of components working together

Example of a System with sub-components Customer Maintenance Component Order Entry Component Customer Support System Catalog Maintenance Component Order Fulfillment Component

System ‘Discussion’ (1) Refers to a combination of components working together. For example, a computer system includes both hardware and software. A Windows system is a personal computer running the Windows operating system. A desktop publishing system is a computer running desktop publishing software. (2) Short for computer system. (3) Short for operating system. (4) An organization or methodology. The binary numbering system, for instance, is a way to count using only two digits

System Elements Inputs Processing mechanisms Outputs

System Example

System Components and Concepts System boundary Defines the system and distinguishes it from everything else System types Simple vs. complex Open vs. closed Stable vs. dynamic Adaptive vs. non-adaptive Permanent vs. temporary

System Performance and Standards Efficiency A measure of what is produced divided by what is consumed (eg. Efficiency of a motor is the energy produced divided by what is consumed) Effectiveness A measure of the extent to which a system achieves its goals System performance standard A specific objective of the system

Figure 1

Figure 1.5b

System Variables and Parameters System variable A quantity or item that can be controlled by the decision maker E.g. the price a company charges for a product System parameter A value or quantity that cannot be controlled by the decision maker E.g., cost of a raw material

Modeling a System Model An abstraction or an approximation that is used to represent reality Types of models Narrative (aka descriptive) Physical Schematic Mathematical Next slide

Why do we need models? Make understanding complex systems easier (simplifies) Can be used to design – make models of new systems so can refine them Makes communication about systems easier (e.g. a picture can communicate a thousand words)

Information System (IS) Definition A set of interrelated elements or components that collect (input), manipulate (process), and disseminate (output) data and information and provide a feedback mechanism to meet an objective (IS) Pronounced as separate letters, and short for Information Systems or Information Services. For many companies, IS is the name of the department responsible for computers, networking and data management. Other companies refer to the department as IT (Information Technology) and MIS (Management Information Services).

Activities of an IS Environment Organisation Processing Input Output Feedback

Information System Components of an IS External Environment Organisation People Technology

Input, Processing, Output, Input The activity of gathering and capturing data Whatever goes into the computer Processing Converting or transforming data into useful outputs Output Useful information, usually in the form of documents and/or reports Anything that comes out of a computer

Input ‘Discussion’ (n) Whatever goes into the computer. Input can take a variety of forms, from commands you enter on a keyboard to data from another computer or device. A device that feeds data into a computer, such as a keyboard or mouse, is called an input device. (v) The act of entering data into a computer

Output ‘Discussion’ (n) Anything that comes out of a computer. Output can be meaningful information or gibberish, and it can appear in a variety of forms -- as binary numbers, as characters, as pictures, and as printed pages. Output devices include display screens, loudspeakers, and printers. (v) To give out. For example, display screens output images, printers output print, and loudspeakers output sounds.

Feedback Feedback Output that is used to make changes to input or processing activities Forecasting A proactive approach to feedback Use for estimating future sales or inventory needs

Manual vs. Computerized Systems Manual systems still widely used E.g., some investment analysts manual draw charts and trend lines to assist them in making investment decisions Computerized systems E.g., the above trends lines can be drawn by computer Evolution Many computerized system began as manual systems E.g., directory assistance (“911”)

Computer-based Information Systems (CBIS) A CBIS is composed of… Hardware Software Databases Telecommunications People Procedures Together they are… Configured to collect, manipulate, store, and process data into information

Parts of a CBIS Five parts Hardware Software Database Telecommunications Networks

Hardware Hardware Computer equipment used to perform input, processing, and output activities The objects that you can actually touch, like disks, disk drives, display screens, keyboards, printers, boards, and chips.

Hardware ‘Discussion’ Hardware refers to objects that you can actually touch, like disks, disk drives, display screens, keyboards, printers, boards, and chips. In contrast, software is untouchable. Software exists as ideas, concepts, and symbols, but it has no substance. Books provide a useful analogy. The pages and the ink are the hardware, while the words, sentences, paragraphs, and the overall meaning are the software. A computer without software is like a book full of blank pages -- you need software to make the computer useful just as you need words to make a book meaningful.

Software Software Computer programs that govern/determine/control the operation of the computer Computer instructions or data

Software ‘Discussion’ (1) Software is computer instructions or data. Anything that can be stored electronically is software. The storage devices and display devices are hardware. The terms software and hardware are used as both nouns and adjectives. For example, you can say: "The problem lies in the software," meaning that there is a problem with the program or data, not with the computer itself. You can also say: "It's a software problem.“

Software ‘Discussion’ (2) The distinction between software and hardware is sometimes confusing because they are so integrally linked. Clearly, when you purchase a program, you are buying software. But to buy the software, you need to buy the disk (hardware) on which the software is recorded. Software is often divided into two categories. Systems software includes the operating system and all the utilities that enable the computer to function. Applications software includes programs that do real work for users. For example, word processors, spreadsheets, and database management systems fall under the category of applications software.

Database Database An organized collection of facts and information A collection of information organized in such a way that a computer program can quickly select desired pieces of data

Database ‘Discussion’ (1) A database is a collection of information organized in such a way that a computer program can quickly select desired pieces of data. You can think of a database as an electronic filing system. Traditional databases are organized by fields, records, and files. A field is a single piece of information; a record is one complete set of fields; and a file is a collection of records. For example, a telephone book is analogous to a file. It contains a list of records, each of which consists of three fields: name, address, and telephone number.

Database ‘Discussion’ (2) An alternative concept in database design is known as Hypertext. In a Hypertext database, any object, whether it be a piece of text, a picture, or a film, can be linked to any other object. Hypertext databases are particularly useful for organizing large amounts of disparate information, but they are not designed for numerical analysis. To access information from a database, you need a database management system (DBMS). This is a collection of programs that enables you to enter, organize, and select data in a database.

Database ‘Discussion’ (3)

Telecommunications Telecommunications The electronic transmission of signals for communications; enables organizations to link computer systems into effective networks Refers to all types of data transmission, from voice to video

Networks Network Used to connect computers and computer equipment in a building, around the country, across the world, to enable electronic communications A group of two or more computer systems linked together

Network ‘Discussion’ (1) There are many types of computer networks, including: local-area networks (LANs) : The computers are geographically close together (that is, in the same building). wide-area networks (WANs) : The computers are farther apart and are connected by telephone lines or radio waves.

Network ‘Discussion’ (2) In addition to these types, the following characteristics are also used to categorize different types of networks: topology : The geometric arrangement of a computer system. Common topologies include a bus, star, and ring. protocol : The protocol defines a common set of rules and signals that computers on the network use to communicate. One of the most popular protocols for LANs is called Ethernet. Another popular LAN protocol for PCs is the IBM token-ring network . architecture : Networks can be broadly classified as using either a peer-to-peer or client/server architecture.

Network ‘Discussion’ (3) Computers on a network are sometimes called nodes. Computers and devices that allocate resources for a network are called servers.

Network ‘Discussion’ (4)

Internet and Intranet Internet The world’s largest telecommunications network A network of networks Free exchange of information A global network connecting millions of computers. Intranet A network that uses Internet technology within an organization A network belonging to an organization

People and Procedures People The most important element in most computer-based information systems Includes people who manage, run, program, and maintain the system E.g., IT professionals (you!) Procedures Includes the strategies, policies, methods, and rules for using the CBIS

Business Information Systems Types Transaction processing systems E-commerce systems Management information systems Decision support systems Expert systems

Transactions Processing Systems Transaction Any business-related exchange E.g., generating a weekly payroll Transaction processing system (TPS) An organized collection of people, procedures, software, databases, and devices used to record completed for for business related exchanges

Payroll Example Hoursworked Payrolltransactionprocessing Payrollchecks Payrate

E-Commerce System E-commerce Involves any business transaction executed electronically Conducting business on-line For example, between… Companies Companies and consumers Business and the public sector Consumers and the public sector Example for placing a purchase order

Purchase Order - Traditional

Purchase Order – E-commerce

Management Information Systems An MIS is… An organized collection of people, procedures, software, databases, and devices used to routine information to managers and decision makers

Schematic of MIS Marketingmanagement information system Manufacturing management Information system Common databases Financial management Information system Order management information system TPS

MIS ‘Discussion’ MIS is short for management information system or management information services, and pronounced as separate letters MIS refers to a class of software that provides managers with tools for organizing and evaluating their department. Typically, MIS systems are written in COBOL and run on mainframes or minicomputers. Within companies and large organizations, the department responsible for computer systems is sometimes called the MIS department. Other names for MIS include IS (Information Services) and IT (Information Technology).

Decision Support Systems A DSS is… An organized collection of people, procedures, software, databases, and devices used to support problem-specific decision making A DSS helps a manger “do the right thing”

Expert Systems An expert system is… A computer application that performs a task that would otherwise be performed by a human expert gives the computer the ability to make suggestions and to act like an expert in a particular field Examples: diagnose human illnesses, make financial forecasts, schedule routes for delivery vehicles Expert systems typically include “artificial intelligence” (next slide)

Artificial Intelligence AI is… A branch of computer science concerned with making computers behave like humans Term was coined in 1956 by John McCarthy at the Massachusetts Institute of Technology Draws from many areas, including cognitive psychology

AI ‘Discussion’(1) Artificial intelligence includes games playing: programming computers to play games such as chess and checkers expert systems : programming computers to make decisions in real-life situations (for example, some expert systems help doctors diagnose diseases based on symptoms) natural language : programming computers to understand natural human languages neural networks : Systems that simulate intelligence by attempting to reproduce the types of physical connections that occur in animal brains robotics : programming computers to see and hear and react to other sensory stimuli

Problems with Expert Systems (and AI in general) Attempted to replace humans in decision making However did not take into account How humans actually reason Human information needs (doctors do not want their decision making replaced, but rather want it supported)

Working with Systems (1) Systems development The activity of creating or modifying an existing business system Systems investigation and analysis Defines the problems and opportunities of an existing system Systems design Determine how a new system will work to meet business needs

Working with Systems (2) Systems implementation Creating and acquiring system components defined in the design Systems maintenance and review Checks a modifies the system so that it continues to meet changing business needs

Management Information System