mis is federated

8/10/2019 MIS is Federated

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What is an Information System?

Lets look at some different definitions andthen explore the context of an IS in theorganizational setting.

The contrasting definitions should provide avariety of different perspectives.

Historical Background

The Data Processing Industry grew rapidly in the1960s, however, the quantityof output, mostoften, far outstripped the qualityof output.The growth of the 1960s and 1970s saw a shiftfrom computerorientation, to informationorientation.The role of information resource managerinthe organization offered an opportunity tomigrate from the technocratic image of the past,

and establish an image as a business manager, ageneral manager, an information manager.Today this is the role of the CIO - ChiefInformation Officer.


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John Diebold (1979) wrote:

Information, which in essence is the analysisand synthesis of data, will unquestionably beone of the most vital corporate resources inthe 1980s. It will be structured into modelsfor planning and decision-making. It will beincorporated into measurements ofperformance and profitability. It will beintegrated into product design and marketing

methods. In other words, information will berecognized and treated as an asset.

Davis and Olson: (1985)

A management information system is:

an integrated user-machine system

for providing information

to support the operations, management, analysis,and decision-making functions in an organization.

The system utilizes:computer hardware and software

manual procedures

models for analysis, planning, control, and decision-making

a database


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IFIP/BCS (1985)

An information system is a system whichassembles, stores, processes, and deliversinformation relevant to an organization (or tosociety) in such a way that the information isaccessible and useful to those who wish to use it,including managers, staff, clients, and citizens. Aninformation system is a human activity (social)system which may or may not involve the use ofcomputer systems.International Federation for InformationProcessing/British Computing Society 1885curriculum for information systems.

McNurlin and Sprague(1989 & 1999)

The mission for information systems inorganizations is to improve the performance of

people in organizations through the use ofinformation technology.The ultimate objective is performance improvement- a goal based on outcomes and results rather than ago-through-the-steps processgoal.Thefocus is the people who make up theorganization. Improving organizational performanceis by the people and groups that comprise theorganization.The resource for this improvement is informationtechnology.


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Turban (1990)

A management information system is aformal, computer-based (but need not be)system intended to retrieve, extract, andintegrate data from various sources in order toprovide timely information necessary formanagerial decision-making.

An MIS is a business information systemdesigned to provide past, present, and futureinformation appropriate for planning,organizing, and controlling the operations ofthe organization.

Alter (1992)

An information system is a combination of

work practices

information

people, and

information technologies

organized to accomplish goals in an

organization.


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Zwass (1992)

A Management Information System is anorganized portfolio of formal systems forobtaining, processing, and deliveringinformation in support of the businessoperations and management of anorganization.

Laudon and Laudon (1995)

Information system - (definition) Interrelatedcomponents that collect, process, store, anddisseminate information to support decision-making, control, analysis, and visualization inan organization.


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Turban, McLean, Wetherbe (1996)

An information systems is a collection ofcomponents that collects, processes, stores,analyzes, and disseminates information for aspecific purpose.

The major components of a computer-basedinformation system (CBIS) can include (1)hardware, (2) software, (3) a database (4) anetwork (5 )procedures, and (6) people.

The system operates in a social context, and the

software usually includes application programswhich perform specific tasks for users.

Alter (1996)

An information system is a system that usesinformation technology to capture, transmit,store, retrieve, manipulate, or display informationthat is used in one or more business processes.

A business process is a related group of steps oractivities that use people, information, and otherresources to create value for internal or external

customers. Business Processes consist of stepsrelated in time and place, have a beginning andend, and have inputs and outputs.


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Lucas (1997)

Information systems may be described by five

of their key components:

Decisions

transactions and processing

information and its flow

individuals or functions involved

communications and coordination

Zwass (1998)

Information System - An organized set ofcomponents for collecting, transmitting,storing, and processing data in order todeliver information for action.


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Turban, McLean, Wetherbe (1999)

An information system is a physical process

that supports an organizational system by

providing information to achieve

organizational goals.

Alter (1999)

A work system is a system that produces productsfor internal and external customers through abusiness process performed by humanparticipants with the help of informationtechnology.

An information system is a particular type of

work system that uses information technology tocapture transmit store, retrieve, manipulate, ordisplay information, thereby supporting one ormore other work systems.


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Information Systems TodayThe early focus on IS was for the support ofoperations, management, analysis and decision-making in organizations.A significant emphasis was on models of planningand control.The late 1980s and early 1990s saw IS expand fromthe support not only of decision-making, but but forimproved communication supportas well. Socialimpacts began to be recognized.The explosion of the Web has added the importantcharacteristic of providing information access.Today the emphasis in organizations is on thesupport of business processes.

Terminology

In many textbooks and contexts, the termsManagement Information Systems (or MIS) andInformation Systems (IS) are used interchangeably.However, in other contexts, ManagementInformation Systems are considered as a subset ofthe more general Information Systems. MIS areconsidered to be information systems whichprovides information specifically for managing anorganization generally at a tactical or middlemanagement level. Information Systems would be a

more general term that can include other systems(e.g. group communication systems). We willgenerally follow this convention.


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Types of Information Systems

Transaction Processing Systems (TPS).

Management Information Systems (MIS).

Decision Support Systems (DSS).

Expert Systems (ES).

Executive Information Systems (EIS).

Office Automation Systems (including documentmanagement systems).

GroupWare, Computer-Supported Cooperative

Work (CSCW), and other communication systems.and much more .

The Early History of IS with otherdisciplines

IS and Managerial Accounting

IS and Operations Research

IS and Management and Organization Theory

IS and Computer Science

IS and Cognitive Psychology


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Information Systems vs. ComputerScience

Computer Science has its concentration in thestudy of algorithms, computation, software,and data structures.

Information Systems is an extension ofmanagement and organization theory thatapplies technical capabilities and solutionsinitially developed by computer science, totasks in organizations.

Information Technology

Information Technology (IT) sometimes refersto the technology component of aninformation system.

However, the concept is often used by manyto describe the collection of all informationsystems in organization.


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Putting Things in Context - I

Information Technology- the hardware, software,and networks that make Information Systemspossible.

Information System - a system that usesinformation technology to capture, transmit,store, retrieve, manipulate, and displayinformation.

Business process - a related group of steps oractivities that use people, information, and other

resources, to create value for internal or externalcustomers.

Putting Things in Context - II

Firm (or organization) - consists of a largenumber of interdependent business processesthat work together to generate products ofservices in a business environment.

Business environment- includes the firm andeverything else that affects its success, such as

competitors, suppliers, customers, regulatoryagencies, and demographic, social, andeconomic conditions.


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Frameworks for Understanding IS

Aframeworkis a brief set of ideas fororganizing a thought process about aparticular type of thing or situation. Anyuseful framework helps make sense of theworlds complexity by identifying topics thatshould be considered and showing how thesetopics are related.

We will consider two such frameworks:The Gorry Scott-Morton Framework for MIS

The Work-Centered Analysis (WCA) Framework by Alter.


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The Gorry and Scott-MortonFramework for Management

Information Systems

Note: This framework was first discussed in 1971. The termManagement Information Systems refers to the broad category we

now refer to simply as Information Systems.

The Gorry and Scott-MortonFramework for MIS

At the time, (1971), the framework provided amuch needed perspective on the role of MIS inorganizations.It is more a framework on managerial activitiesand a way of looking at decisions in anorganizations. The framework helps usunderstand the role of MIS in organizations.Focuses on the nature and characteristics ofmanagerial decisions made at different levels inan organization.Also Focuses on the characteristics ofinformation that pertains to the decisions madeat these levels.


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Structural Outline

Combines the works of Robert Anthony andHerbert Simon

Robert Anthonys taxonomy for ManagerialActivity (1965).

Herbert Simons Categorization of DecisionTypes (1960).

The works of Anthony and Simon are

important foundations of OrganizationalTheory today.

Robert Anthonys Taxonomy forManagerial Activity

You can divide the entire managementhierarchy along the following levels:

Operations Control

Management Control

Strategic Planning


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Organizational Members

Operational Control

Management Control

StrategicPlanning

,

Anthonys

Management

Hierarchy

Operational Control

concerned with carrying out the tasksnecessary and that need to be performed

lower level of the organizational hierarchy

performed by supervisors of small work unitsconcerned with planning and control of short-term (a week to six months) budgets and

schedules.


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Management Control/TacticalManagement

concerned with the utilization andmanagement of resources to achieveorganizational objectives.

concerned with effective and efficientperformance.

Performed by middle managers (e.g.department heads, plant managers).

set out for one to three years.

Strategic Planning Level

focuses on decisions on the objectives for theorganization as a whole and also on the wayto achieving them

typically involves a small number of high levelpeople

Carried out by top corporate executives andcorporate boards responsible for setting and

monitoring long-term directions for theorganization three or more years into thefuture


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Information Requirements

Gorry and Scott Morton were concerned withthe information requirements at the thesethree levels

They noted that the requirements forinformation at these levels were verydifferent.

The next slide shows these differing

requirements

Information Requirements byManagement Level

Characteristics

of Information

Operational

Control

Management

Control

Strategic

PlanningSource Largely Internal Internal and

Largely External

Scope Well defined,

narrow

Very wide

Level of

AggregationDetailed Aggregate

Time Horizon Historical Future

Currency Highly current Need not be up to

the minute

Required

AccuracyHigh Lower, Estimates

are acceptable

Frequency of Use Very frequent Infrequent, ad-hoc


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Simons Categorization

concerned with the manner in which humanssolve problems in an organization

differentiated betweenprogrammedandnonprogrammeddecisions

Simons Programmed Decisions

they are repetitive and routine

follow a preset definite procedure each timethey occur

programmable is a better concept

Gorry and Scott Morton call it structured


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Simons Nonprogrammed Decisions

they are novel, unstructured

no cut-and-dried method for handling theproblem exists

calls for intelligent, adaptive, problem-oriented action

nonprogrammable is a better concept

Gorry and Scott Morton call it unstructured

Structured vs. Unstructured

They are not bipolar concepts

decisions range in a continuum fromstructured to unstructured ..

In between you might have decisions calledsemi-structured.


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Combined = A Framework

Gorry and Scott Morton combined the twoconcepts of Simons Decision Making withAnthonys Decision Making Levels and providethe following Framework for Decision-Making

(See next slide)

A FRAMEWORK FOR DECISION MAKING

Type of

Decision/Task

Operational

Control

Management

Control

Strategic Planning Support Needed

Structured

1

Inventory reordering

2

Budget Analysis,

short-term forecasting,

Make or Buy Analysis

3

Plant Location,

Financial

Management

(investment),

Distribution Systems.

Clerical, MIS, OR

Models, Transaction

Processing Systems

Semi-

structured

4

Bond trading,

Production Scheduling

5

Credit Evaluation,

Budget Preparation,

Plant Layout, Project

Scheduling, Reward

Systems Design

6

Building New Plant,

Mergers &

Acquisitions, New

Product Planning,

Compensation

Planning, Quality

Assurance Planning

Decision Support

Systems

Unstructured7Selecting a Cover for a

Magazine, ApprovingLoans, Buying Software

8Negotiating, Recruiting

Executives, Lobbying

9R & D Planning,

New Technology

Development, Social

Responsibility

Planning

Human Intuition,

Expert Systems,Executive Support Systems


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A FRAMEWORK FOR DECISION MAKING

Type of

Decision/Task

Operational Control Management

Control

Strategic Planning Support Needed

Structured

1Inventory reordering

2Budget Analysis,

short-term

forecasting, Makeor Buy Analysis

3Plant Location,

Financial

Management(investment),

Distribution

Systems.

Clerical, MIS, OR

Models, Transaction

Processing Systems

Semi-structured

4

Bond trading, Production

Scheduling

5

Credit Evaluation,

Budget

Preparation, Plant

Layout, Project

Scheduling,

Reward Systems

Design

6

Building New

Plant, Mergers &

Acquisitions, New

Product Planning,

Compensation

Planning, Quality

Assurance

Planning

Decision Support Systems

Unstructured

7

Selecting a Cover for a

Magazine, Approving

Loans, Buying Software

8

Negotiatin g,

Recruiting

Executives,

Lobbying

9

R & D Planning,

New Technology

Development,

Social

Responsibility

Planning

Human Intuition,

Expert Systems,

Executive

Information/Support

Systems

Support Needed MIS

Management Science

OR Models

Management

Science

DSS,

EIS, ES

EIS,

Neural Networks,

Executive Mental

Models

Framework Comments

The original framework has been augmented withthe right-most column and bottom row showingsome typical support systems available. Theseare meant be be illustrative and not inclusive.

The framework shows the need for informationsystems to support all cells.

The figure as well as the characteristics of

systems shows that the information requirementsvary considerably from among managementlevels in an organization.

The information requirements are also diverse.


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Implications: Total MIS is a myth

Gorry and Scott Morton showed that theprevalent concept (at that time, 1971) of atotally-integrated-management-information-systemwas a myth.Since we can not have a single total MIS, weneed the concept of what David and Olsen calledafederation of integrated information systems.Today technology provides appropriate toolswhich gives the appearance of information beingtotally integrated.This is the basic reasoning for the separation of

todays data warehouses from systems tosupport current operations.

Concepts of MIS

MIS Structure


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Strategic

Planning

Management

Control

O/P Control

TP

Unique Sub

system

Unique toapplication

Model base

Common

Application

S/W

Common to many toapplication

DBMS

Common Data base

Information subsystem for a function like Marketing/Production

Strategic

Planning

Manageme

nt Control

O/P

Control

TP

Sales&Mktg

Data Base

Information subsystem for a function like Marketing/Production

Model base

Common

application

DBMS

Production

HR

Finance

Common

program

Unique files

Common

data files


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Information Systems for OperationalControl

Operational Control: process of ensuringoperational activities are carried outeffectively and efficiently.

Processing support:Transaction processing

Report processing

Inquiry processing


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A Short Sidebar.

Transaction Processing Systems

vs.

Management Information Systems

presented now since this is an important distinction, so letsget it right early!

Transaction Processing Systems

A transaction is an elementary activity conductedduring business operations (e.g. merchandisesale).Earliest Information Systems in organizations.Support the monitoring, collection, storage,processing, and dissemination of theorganizations basic business transactions.Provides backbone for many other applications

involving other support systems.On-line systems called OLTP vs. batchRoutine, repetitive tasks.


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Business Transactions in a Factory

Payroll: employee time cards, employee pay anddeductions, payroll checks.Purchasing: purchase orders, deliveries,payments (accounts payable)Sales: sales records, invoices and billing,accounts receivable, sales returns, shippingManufacturing: production reports, quality-control reportsFinance and Accounting: financial statements,tax records, expense accountsInventory management: materials usage,inventory levels

Transaction Processing Systems - 3

In addition to processing the routine criticalorganizational activities, transaction processingsystems also provide the source data for manyother type of information systems used at thetactical and strategic levels in the organization.

Recall that tactical and strategic levels useaggregateddata, over multiple time periods. TPS

are often the source of this information. TPSoften populate data warehouses which provideon-line analytical processing (OLAP).


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TPS Data Entry Screen

Management Information Systems

Systems that convert TPS data into information formonitoring performance and managing anorganization.The MIS provides periodic information to functional(operational) and mid-level (tactical) managers onroutine matters such as operational efficiency,effectiveness, and productivity.Example: An HRIS can provide the HR manager withpercentages of people who are on vacation or call insick. It can compare actual to forecasted values, or

to an industry average.MIS are used for planning, monitoring, and control.


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Sample MIS Management Report

mis is federated

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