Management

Information
System
CHAPTER 1
 From Facts to Knowledge

▧ DATA - raw facts about people, places, events, and

things that are importance in an organization. “Data
is a set of Representation of plain facts.”

▧ INFORMATION – data that has been processed or

reorganized into a more meaningful form for
someone. “Information is a message with
meaning”
 From Facts to Knowledge

▧ KNOWLEDGE – data and information that is

further refined based on the facts, truths, beliefs,
judgments, experiences, and expertise of the
recipient. “Knowledge is information processed in
the mind of individual”
▧ WISDOM – when to apply a certain knowledge to
make good decisions and judgement.
Management
Information
Systems
(MIS)
 “
MIS is the study of people, technology,
organizations, and the relationships among them.
refers to the study of how individuals, groups, and
organizations evaluate, design, implement,
manage, and utilize systems to generate
information to improve efficiency and
effectiveness of decision making, including
systems termed decision support systems, expert
systems, and executive information systems
Information
Systems
(IS)
 “
IS is a system composed of people and computers
that processes or interprets information. The term
is also sometimes used in more restricted senses
to refer to only the software used to run a
computerized database or to refer to only a
computer system.
3 Activities of information System

INPUT PROCESS OUTPUT

 3 Activities of information System

INPUT

It captures or collects raw

data from within the PROCESS
organization or from its
external environment. converts this raw input
into a meaningful form. OUTPUT

transfers the processed

information to the people
who will use it or to the
activities for which it will
be used.
 Standard Operating
procedure
(SOP)
This are written, step-by-step instructions that
describe how to perform a routine activity.
INFORMATION SYSTEMS ARE MORE THAN
COMPUTERS
Using information systems effectively requires an understanding of
the organization, management, and information technology
shaping the systems. An information system creates value for the
firm as an organizational and management solution to challenges
posed by the environment.

The dimensions of information systems include organizations,

management, and information technology.
INFORMATION SYSTEMS ARE MORE THAN
COMPUTERS
The key elements of an organization are its people, structure,
business processes, politics, and culture.

An organization coordinates work through a structured hierarchy

and formal standard operating procedures. Managerial,
professional, and technical employees form the upper levels of
the organization's hierarchy while lower levels consist of
operational personnel.
▧SENIOR MANAGEMENT makes long-range strategic
decisions and ensures the firm's financial performance.

▧MIDDLE MANAGEMENT carries out the plans of senior

management

▧OPERATIONAL MANAGEMENT monitors the firm's daily

activities. Knowledge workers such as engineers and scientists
design products and create and distribute new knowledge for the
organization. Data workers such as secretaries process the
organization's paperwork. Production or service workers produce
the products or services.
Contemporary Approaches to
IS:
All Information Systems are multidisciplinary.

Interdisciplinarity or interdisciplinary studies involves the

combining of two or more academic disciplines into one
activity. It draws knowledge from several other fields like
sociology, anthropology, psychology, economics etc. It is
about creating something by thinking across boundaries.
 Technical Approach
It tells that all business information systems were considered as part of
computer science as knowledge of subjects like Data structures and
algorithms, Database Management Systems, Computer Networking, Theory
of computing, Business data processing, Programming languages, System
Analysis and design etc. was essential for designing any business
information system. Simultaneously Management science theories like
motivation and leadership theories and models had their impact on the
information system. Operation Research Techniques such as Linear
Programming, Game theory, Transportation Problem, Fuzzy logic etc helped
to enhance capabilities of information systems. Business Management
adopted Operation Research Techniques such as CPM & PERT for project
management in the management process through information system.
 Behavioral Approach
Sociology
Business Organizations are social economic groups wherein individuals
work together with common motive. Every individual possesses certain
values, beliefs and assumptions and have specific mind set. Therefore every
individual have their influence on shaping up the information system. This
social aspect influenced development of every information system and
people in the world along with time. e .g. e-Banking, e-Governance, e-
Booking etc.
 Behavioral Approach
Psychology
This refers to cognitive capability of human beings. The individual as well
as group psychology has its own influence on the information system.
People are still scared of e-Transactions like e-Payments.
 Behavioral Approach
Economy
Study of economics plays vital role in planning and while designing of any
information system. We can find out the ways for profit, growth and sales
maximization as economics includes the study of labor, land, and
investments, of money, income, and production, and of taxes and
government expenditures. By analyzing each of these disciplines one can
optimize the information system performance by adopting socio-technical
approach.
 Computer Based IS
(CBIS)
Computer(-Based) Information System is
essentially an IS using computer technology to
carry out some or all of its planned tasks.
 BASIC COMPONENTS OF CBIS
▧Hardware – these are the devices like the monitor,
processor, printer and keyboard, all of which work
together to accept, process, show data and information.

▧Software – are the programs that allow the hardware

to process the data.

▧Databases – are the gathering of associated files or

tables containing related data.
 BASIC COMPONENTS OF CBIS
▧Networks– are a connecting system that allows
diverse computers to distribute resources.

▧Procedures– are the commands for combining the

components above to process information and produce
the preferred output.
 BASIC COMPONENTS OF CBIS
▧Networks– are a connecting system that allows
diverse computers to distribute resources.

▧Procedures– are the commands for combining the

components above to process information and produce
the preferred output.
 POSITIVE AND NEGATIVE IMPACTS
OF I..S.

BENEFITS OF I.S. NEGATIVE IMPACTS

Information Systems can perform By automating activities that were

calculations or process paperwork previously performed by people,
much faster than people. information systems may eliminate
jobs.
Information System can help
companies learn more about the Information systems may allow
purchase patterns and preference of organization to collect personal
their customers. details about people that violate
their privacy
 POSITIVE AND NEGATIVE IMPACTS
OF I..S.

BENEFITS OF I.S. NEGATIVE IMPACTS

Information systems provide new Information system are used in so

efficiencies through services such as many aspects of everyday life that
automated teller machine, telephone systems outages can cause shutdown
systems and more of business or transportation
services, paralyzing communities.

Information systems have made Heavy users of information system

possible new medical advances in may suffer repetitive stress injury,
surgery, radiology and patient technostress and other health
monitoring. problem.
 POSITIVE AND NEGATIVE IMPACTS
OF I..S.

BENEFITS OF I.S. NEGATIVE IMPACTS

The internet distributes information The internet can be used to

instantly to millions of people distribute illegal copies of software,
across the world. books, articles and other intellectual
property.
 Thanks!

Any questions?