Management Information Systems Notes
Management Information Systems Notes
Management Information Systems Notes
Systems Notes
Lecture 2
September 2005
* These notes are for class use only. They were created from several research and academic
references. Any use of these notes for making profit is not permitted.
Introduction to the Computer-Based
Information System
INFORMATION MANAGEMENT
Five Main Resources:
A manager is required to manage five main types of resources effectively:
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• Personnel
• Material
• Machines (including facilities and energy) Physical
• Money
– Worldwide competition
Competition exists on a worldwide scale. Its effects can be seen in the
imports from foreign countries.
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before. (telemarketing, electronic sales orders, “just in time “ delivery of
raw materials ..etc)
– Social constraints
Some products and services are found undesirable by society. Therefore,
business decisions must be based on economic factors, but social costs and
payoffs must be considered as well. Plant expansion, new products, new
sales outlets and similar actions must all be weighed in terms of their
environmental impact.
• Managers
The idea of using the computer as a management information system was a
breakthrough because it recognized managers’ need for problem solving
information. Embracing the MIS concept made several firms develop
applications specifically aimed at management support.
• Non-managers
Non-manages and staff specialists also use the MIS output.
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Management Levels
Strategic Planning Level
The strategic planning level involves mangers at the top of the organizational
hierarchy. The term strategic indicates the long-term impact of top managers’
decisions on the entire organization. The term executive is often used to describe a
manager on the strategic planning level.
Figure 2.1
Summary
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Strategic planning level
Figure 2.2
Business Areas
Managers are found in various business areas of the firm. The three traditional
business areas are marketing, manufacturing, and finance in addition to other two
areas that have gained major importance-human resources and information services.
Operational Control
Level
Figure 2.3
What managers do
According the French management theorist, Henri Fayol, managers perform five
major functions.
• They plan what they are to do
• They organize to meet the plan.
• They staff their organization with the necessary resources.
• They direct the available resources to execute the plan.
• Finally, they control the resources, keeping them on course.
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All managers perform these functions, however with varying emphasis as shown
below.
Figure 2.4
Management Knowledge
• Computer literacy
This knowledge includes an understanding of computer terminology, a
recognition of its strengths and weaknesses, an ability to use the computer ..etc
• Information literacy
A manager should also have information literacy which consists of
understanding how to use information at each step of the problem solving
process, where this information can be obtained from, and how to share
information with others.
Information literacy is not dependent on computer literacy. A manager can be
information literate but computer illiterate.
A system is a group of elements that are integrated with the common purpose of
achieving an objective.
Not all systems have the same combination of elements, but a basic configuration is
illustrated in the figure below:
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Objectives
Control
mechanism
1-1
Figure 2.5
Input resources are transformed into output resources. The resources flow from the
input element, through the transformation element, and to the output element.
A control mechanism monitors the transformation process to ensure that the system
meets its objectives. The control mechanism is connected to the resource flow by
means of a feedback loop, which obtains information from the system output and
makes it available to the control mechanism. The control mechanism compares the
feedback signals to the objectives and directs signals to the input element when it is
necessary to change the system operation.
In p u t T ra n sfo rm a tio n O u tp u t
Figure 2.6
Not all systems are able to control their own operations. A system without the control
mechanism, feedback loop, and objective elements is called an open loop system.
A system with the three control elements is called a closed loop system.
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controlled laboratory systems.
What is a subsystem?
A subsystem is simply a system within a system. This means that systems exist on
more than one level and can be composed of subsystems or elemental parts.
S y s te m
S u b s y s te m A S u b s y s te m B E le m e n ta l
P art C
S u b sy ste m A -1 S u b s y s te m B -1
S u b s y ste m A -2 S u b s y s te m B -2
E le m e n ta l
S u b s y ste m A -3
part B 1 1 -1
Figure 2.7
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– reduces complexity
– requires good objectives
– emphasizes working together
– acknowledges interconnections
– values feedback
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o Increases productivity among managers and office workers through the use of
electronic devices.
o Includes a variety of applications such as video conferencing, voice mail, electronic
mail, desktop publishing...etc.
Artificial Intelligence (AI)/ Expert Systems (ES) - 1990s
o AI is an application that enables the computer system to perform some of the same
logical reasoning tasks as humans.
o An expert system is a special subclass of AI that functions as a specialist in a certain
field. For example, it can provide management consultancy.
o Limitation of ES: It doesn’t improve its intelligence over time. One way to overcome
this limitation is to use neural networks, electronic and mathematical analogs of the
human brain.
P r o b le m A c c o u n tin g
I n f o r m a t io n S y s te m
D e c is io n S u p p o rt
S y s te m s
P r o b le m T h e V ir tu a l
S o lu tio n O f f ic e
K n o w le d g e -b a s e d
S y s te m s
Figure 2.8
Managers make decisions to solve problems, and information is used in making these
decisions. Information is presented in both oral and written forms by an information
processor. The computer portion of the information processor contains each of the
computer-based application areas- AIS, MIS, DSS, the virtual office and knowledge
based systems.
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THE INFORMATION SERVICES ORGANIZATION
Information Specialists
Those are the ones who have full-time responsibility for developing and maintaining
computer based systems. There are five categories of information specialists:
o System analysts work with users to define the requirements for developing
new systems and improving existing ones.
o Database administrators work with users and system analysts to create
databases that contain the data needed to produce the user’s information.
o Network specialists work with system analysts and users to establish the data
communication networks that tie together widespread computing resources.
o Programmers use the documentation prepared by the systems analysts to
encode the instructions that cause the computer to transform the data into
information needed by the user.
o Operators handle the large-scale computing equipment such as mainframe
computers and mini-computers.
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Database
Administrator
Systems Operator
User Analyst
Programmer Computer
Network
Specialist
Figure 2.9
Stimulants to EUC
Figure 2.10
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JUSTIFYING THE CBIS
The CBIS should be justified in the same manner as any other large investment of the
firm.
o Economic
– Cost reduction
– Reduced inventory investment
– Increased productivity (CAD/CAM)
o Non-economic
– Perceived value
1-1
Figure 2.11
REENGINEERING THE CBIS
The process of reworking a system is called reengineering or business process
redesign.
o A reengineered system is not always a clean-slate approach
o Good features of the system can be retained
o BPR will be the development methodology of choice, rather than the SLC.
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MANAGING THE CBIS
P la n n in g D e fin e p r o b le m Support
A n a ly sis C o n tr o l S y stem S tu d y
Im p le m e n ta tio n C o n tr o l Im p le m e n t s y ste m
U se C o n tr o l M a k e a v a ila b le
1 -1
Figure 2.12
The manager is the one responsible for managing the CBIS. Among his
responsibilities are:
o Planning the life cycle
o Controlling the information specialists involved.
o Ensuring that the CBIS provides the desired support.
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