Lecture – MIS-I

• Introduction to IS

• Definitions of IS etc.

• IS Outputs

INFORMATION SYSTEMS -

Commented Thomas H. davenport while discussing the Hands-on-Network Environment :

• Most managers don’t rely on Computer Based Information to make decisions

– Because they do not get the complete, up-to-date and integrated information

• Most of the information in organizations and most of the information people really care about is not on Computers

– Because most of the information systems are basically a by-product of the traditional data processing systems

• Managers prefer to get information from people rather than computers– Because people add value to raw information by interpreting it and adding

context

INFORMATION SYSTEMS -

• All information does not have to be common, an element of flexibility and disorder is desirable– Because each individual perceives the business in a

different manner

• If information is power and money, people won’t share it easily– Because information is viewed to be belonging to

individuals

INFORMATION SYSTEMS – Six Generations by McLeod

• Manual Systems - Upto 1900– File oriented, Minimum Reports

• Mechanical Systems - 1900-1953– Mechanical File/Sequential Processing, Detailed Reports

• Electronic Data Processing - 1953-1965– For high volume data, sequential files, batch processing,

detailed report generation

• Management Information Systems - 1965-1975– Direct access storage and on-line/batch processing,

Summary and Exception Report Generation, Focus on Information

INFORMATION SYSTEMS – Six Generations

• Decision Support Systems - 1975 onwards– To assist with the unstructured problems, interactive real-

time processing, Customized Reports

• Expert Systems - 1975 onwards – Designed to assist with the Expert Opinion, Knowledge

base, interactive processing using Artificial Intelligence

• Executive Information Systems - 1982 onwards– A Common Core purpose– A Common Core Data– Two principle methods of use

• Access to current status and projected trends of business• Personalized analysis of the available data

– A Support Organization

INFORMATION SYSTEMS - INTRODUCTION

• IS : ARE DEFINED AS A SET OF MANUAL AND/OR COMPUTERIZED COMPONENTS FOR GATHERING, STORING AND PROCESSING BUSINESS DATA AND FOR CONVERTING SUCH DATA INTO USEFUL DECISION ORIENTED INFORMATION.

• IS includes design of instruments/techniques for :– capturing and measurement of data– recording of data– storage of data – retrieval of data– processing of data– presentation of information reports

• THE INFORMATION SYSTEMS COULD BE – COMPUTERIZED – MANUAL– BUSINESS ORIENTED – NON-BUSINESS ORIENTED

Not every information system is meant for the Business Organizations and not all the Business Information Systems are computerized.

There could be

– Computerized Business Oriented Information Systems

Payroll, Accounting, Manufacturing Accounting, Production Planning and Control, etc.

– Manual Business Oriented Information Systems

Manual Registers for Attendance, Manual Typewriters– Computerized Non-Business Information Systems

Space Research, Robotics, Weather Forecasting, etc.

• AN IS IS JUST LIKE A NERVOUS SYSTEM IN A HUMAN BEING. THE PURPOSE OF BOTH BEING TO SUPPLY INFORMATION TO THE DECISION MAKER FROM ALL OVER THE BODY/ORGANIZATION AND CARRY THE DECISIONS TO DIFFERENT PARTS OF THE BODY/ORGANIZATION. BOTH ARE CHARACTERIZED BY THE FOLLOWING FEATURES :

– there is a boundary within which these are designed

– these are designed for all parts of the organization

– these always exist in the organization– these are concerned with both internal/external

data

COMMON MYTHS REGARDING IS:

– IS IS A NEW CONCEPT– COMPUTERS/IT MEANS IS– IS CAN MAKE DECISIONS FOR

EXECUTIVES– COMPUTERS CAN PROCESS DATA

WHICH HUMAN BEINGS CAN NOT– COMPUTER BASED IS CAN REPLACE THE

DECISION MAKER

AN MIS CAN ALSO BE DEFINED AS :

– AN INTEGRATED MAN MACHINE SYSTEM– FOR PROVIDING INFORMATION

* TO SUPPORT OPERATIONS

* MANAGEMENT CONTROL and

* STRATEGIC PLANNING FUNCTIONS

– IN AN ORGANIZATION.

It makes use of resources such as :

– Computer Hardware and Software– Manual Procedures– Models for Analysis, Planning, Control & Decision Making – and data base(s).

Levels of Management & Information

• The type of information needed at different levels of management varies with the type managerial activity in an organization

DECISIONS TOP MGMT. JUNIOR MGMT.

* Situation Unique Recurring

* Process Unstructured Structured

* Criteria Satisficing Optimising

* Data Support Poor Good

DATA TOP MGMT. JUNIOR MGMT.

* Source External Internal

* Accuracy Low High

* Aggregation Summarised Detailed

* Recency Historical Recent

USAGE TOP MGMT. JUNIOR MGMT.

* Frequency Occasional Frequent

* Outlook Futuristic Present

* Purpose Planning Control

DATA - INFORMATION CYCLE

• IDEA• DATA• INFORMATION• KNOWLEDGE• INTELLIGENCE

• DATA / INFORMATION

DATA IS DEFINED AS A SET OF FACTS, FIGURES AND SYMBOLS COLLECTED FROM ORGANIZATIONAL OPERATIONS FOR SOME POSSIBLE USE IN FUTURE.

WHEREAS THE INFORMATION IS DEFINED AS THOSE SETS OF FACTS, FIGURES AND SYMBOLS WHICH HAVE BEEN EXTRACTED FROM THE DATA COLLECTED FROM THE ORGANIZATIONAL OPERATIONS AND HAVE SOME DEFINITE USE FOR THE CURRENT DECISION MAKING SITUATION.

• MIS ALWAYS EXIST IN AN ORGANIZATION. MAY BE THESE ARE :

–formal / informal

–structured / unstructured

–manual / automated

–public / private

COMPUTERIZATION OF IS MEANS :

– formalization – structuring – publicisation – documentation – increased objectivity– better speed of data processing– high volumes of data processing– better levels of accuracy– and more cost effective processing.

• THE BASIC THRUST OF AN IS DESIGN IS ON FORMALISATION OF A SYSTEM TO ENSURE :

• consistency• reliability• timeliness• adequacy

AND A WELL DEFINED INFORMATION FLOW.

LEVELS OF INFORMATION

- international

- national

- industry

* corporate

* departmental

* individual

INFORMATION MEDIA

** MANAGEMENT REPORTING-- Regular Reports ( detailed / summary )

-- On Demand Reports

-- Exception Reports / Critical Reports

-- Ad-hoc Reports

** QUERIES

** MESSAGES

DIMENSIONS OF MIS

• IS CAN BE VIEWED FROM VARIOUS DIMENSIONS :

– Processing Dimension– Management Dimension– Functional Dimension– Departmental Dimension

• TYPES OF INFORMATION - Strategic Information- Tactical Information- Operational Information

• PROCESSING FUNCTIONS OF IS* Processing Transactions* Maintain History Files* Produce Reports & Other Outputs* Interact with the users

OUTPUTS OF AN IS

- Transaction Documents * Informational such as Invoice

* Action Oriented such as a Purchase Order

- Pre-planned Reports * Status Reports such as Inventory Report

* Summary Reports such as Sales Report

- Pre-planned Inquiry* Such as Salary for an employee

- Ad-hoc Reports/Queries* Non-planned

- Man/Machine/Dialogue * Such as Decision Support Systems

Traditional Approach to IS

* Non-integrated Stand Alone Systems

* Duplicate Systems/Efforts/Data Files

* Each system As an Independent System

* Focus on Processing Dimension

* Using Flat File Environment

Integrated IS Approach

* Integrated Systems

* Avoid Duplication and Redundancy in Systems/Efforts/Data Files

* Each system treated as a Sub-System

* Focus on Management Dimension

* Using Data Base Environment

REQUIREMENTS OF A GOOD IS

* Data Base

* On-line Real Time Capability

* Data Communications Capability

* A sophisticated CPU

WHY DO IS SYSTEMS FAIL IN ORGANIZATIONS

• Lack of communication between DP Personnel and User Group

• Greatly underestimated costs/efforts• Improper priorities• Security & Control Problems• Inadequate Standards• Changing needs of the User Groups