management information system- concept of information

TRINITY INSTITUTE OF PROFESSIONAL STUDIES

Sector – 9, Dwarka Institutional Area, New Delhi-75Affiliated Institution of G.G.S.IP.U, Delhi

BCOM(H)Management Information System

888307

Concept of Information

By: Saguna Khajuria

Assistant Professor

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Information

Data is a term used for raw figures, facts, symbols etc.

Information is the second component in the term Management Information System.

Information is defined as data that has been processed and used for inference purposes, argument or decision making.

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Characteristics of Information

• Relevance • Accuracy• Completeness• Timeliness• Adequacy• Reliability• Validity

• Redundancy• Quality• Impartiality• Mode & Format• Summarization

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Types of Information• Operational- Information used by lower level management for

making day to day decisions. Eg: Outstanding orders from customers

• Tactical- Information used by middle level management for short term planning.

Eg: Sales target for second quarter

• Strategic- Information required by top level management for making strategic decisions.

Eg: Mergers & Acquisitions

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Sources of Information

• External Sources– Government policies– Economic trends– Technological changes– Competitors activities– Customer reactions

• Internal Sources– Sales forecast– Financial resources &

plans– Availability of internal

resources– Budget allocation &

utilization

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Dimensions of Information

• Economic dimensions- refers to the cost of information and its benefits

• Business dimension-relates to the business angle of information and its value to the organization

• Technical dimension- relates to the information gathering, summarizing, storing & retrieving aspects of information.

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Cost-Benefit Analysis of Information

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Assessing information needs of the organization

• The nature of business function– Marketing functions– Finance functions– Production functions– Human resource management

• Types of decision making– Structured decisions– Semi-structured decisions– Unstructured decisions

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Assessing information needs of the organization

• Level of Management– Top level– Middle level– Lower level

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Relevance of Information in Decision Making

Decision making strategiesInformation required at each stage

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

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