Introduction of MIS

Introduction to
MIS
What is MIS?
M: Management
Management, Organization, Business Function, Business
Process, Organization and Human Behaviors
I: Information
Data, Information, Knowledge
Creation, Gathering, Storing, Organizing, Consolidating&
Condensing, Filtering, Delivery, and Sharing of Information
S: System
General Systems Theory (GST)
Input-Process-Output and Storage
Creative Problem Solving Process
http://en.wikipedia.org/wiki/Management_information_system
http://en.wikipedia.org/wiki/Systems_thinking
http://en.wikipedia.org/wiki/Systems_theory
Minder Chen, 1996-2012 MIS - 2

A System View of an Information System
Information System
Boundary
Environments
Input
Input Process
Process Output
Output
Data Data
Sources Destinations
Control Data
Data storage
storage
Control
Procedure
Procedure
What are the Hardware for Inputs, Outputs, Processing, and Storages?

Characteristics of Good Information
Figure 1-6 here
Source: Using MIS 3e
Deliver just enough accurate, relevant, and timely information

to the right persons to make better decisions.
How much energy does a Google search consume?
Information Life Cycle
Information
Information
Decision
Decision
Data
Data
Intelligence
Design
Action
Action Choice
http://faculty.csuci.edu/minder.chen/MIS310/Reading/20000905cleveland.pdf
Even the Caveman Needs Knowledge to Survive
The information-knowledge-wisdom hierarchy. The caveman

has lots of information; he selects and organizes useful
information into knowledge, but he does not achieve wisdom
until he has integrated his knowledge into a whole that is
more than useful than the sum of its parts.
Source: Harlan Cleveland, "Information as a Resource," The Futurist, December 1982, 34-39.
DIKW (Information) Hierarchy
Wisdom Know why
Knowledge Know how

Learning: Integration into strategic
policy through experience
Information Know what
Analysis: Application to
decision making
Know nothing
Data
Observation: Description of events
Happening/Doing
Event
Data, Information,
and Systems
Data vs. Information
Data
A given, or fact; a number, a statement, or a picture
Represents something in the real world
The raw materials in the production of information
Information
Data that have meaning within a context
Data in relationships
Data after manipulation
MIS 715 Eaton Fall 2001 8

Data Information
Stored facts Presented facts
Inactive (it exist) Active (it enables doing)
Technology based Business based
Gathered from various Transformed from data

sources

Data, Information,
and Systems
Data Manipulation
Example: customer survey

Reading through data collected from a customer survey
with questions in various categories would be time-
consuming and not very helpful.
When manipulated, the surveys may provide useful
information.

Generating Information
Computer-based ISs take data as raw material,
process it, and produce information as output.
Figure 1.1 Input-process-output


Data, Information,
and Systems
Information in Context

Figure 1.2 Characteristics of useful information
Types of information
Action vs. Non Action:
For example, if one receives information that something is
wrong in the production line then immediate action has to be
taken to rectify the matter.
Historical, Present, and Futuristic: For example, past

records of an organization are historical information, reports
of the ongoing operations are present information, and any
future prediction using statistical or mathematical model is
futuristic information.

Documentary V,s. Non Documentary:
For example, information on the walls of caves, books,
journal, in-house publications, hard and soft copies from
computers etc. Similarly any information which is verbal is
non-documentary information. For example, information
passed from one generation to another verbally; word to
mouth advertisement of a product, information moving on
the grapevine of an organization etc.
Formal Vs. Informal:

For example, the financial reports, balance sheets,
production plans etc. Similarly any information which not
generated formally, like office gossip is informal information.

Short Term Vs, Long Term:
For example, information required for planning a schedule
for production will be short term information, whereas the
information required for launching a new product will be long
term or strategic information.
Internal Vs. External:

For example, information regarding the production capacity
of a factory.
For example government rules and regulation regarding
employment, quality of the product etc. or information about
the business environment of a country.

Recurring Vs. Non Recurring:
Information being generated at more or less equal
interval is known as recurring information, for
example annual reports. Whereas information
which are once in a while is known as non-
recurring information, for example, an accident
report or report regarding malfunctioning of a
machine.

What Is a System?
System: A set of components that work together to
achieve a common goal
Subsystem: One part of a system where the

products of more than one system are combined to
reach an ultimate goal
Closed system: Stand-alone system that has no

contact with other systems
Open system: System that interfaces with other

systems

System
A group of two or more interrelated
components or sub-systems that serve a
common purpose.
A business is also a system.
-Multiple components: A system must contain
more than one part. E.g Kite
-Relatedness: a common purpose relates the
multiple parts of the system. Although each part
functions independently of the other, all part
serve a common objective. e.g. A cricket bat
and a volleyball net are both components.

Types of Systems
Physical system: eg physical parts of computer

center.
Abstract system: eg formulas, models, s/w
programs
Deterministic systems : works with certainty eg.
Computer works on the principle of GIGO
Probabilistic systems: works with uncertain
degree of error is always. Eg. Students
admission

Information System can be defined as a set of
people, procedures and resources that collects,
transforms and disseminates information in an
organization.
Can be grouped into
Input
Processing
Output
Storage
Control

Data, Information,
and Systems
Figure 1.3 Several subsystems make up this corporate accounting system.

Data, Information,
and Systems
Information and Managers
Systems thinking
Creates a framework for problem solving and decision
making.
Keeps managers focused on overall goals and operations
of business.

Data, Information,
and Systems
Figure 1.5 Qualities of humans and computers that contribute to synergy

Data, Information,
and Systems
The Benefits of Human-Computer Synergy
Synergy
When combined resources produce output that exceeds
the sum of the outputs of the same resources employed
separately
Allows human thought to be translated into efficient

processing of large amounts of data

Data, Information,
and Systems
Figure 1.6 Components of an information system

Information Systems Components
Individuals,
System SW, Data, Groups,
Application Manual
Information, Procedures
Departments,
SW Knowledge Enterprise-wide,
and Business Customers,
Process Trading partners
Source: adapted from Using MIS 3e
huMan, Market, Money, Method, Machine, Material, Message
Business environments
Market demands Man: Human Resource, Employees
Technology development Market: Customers
Social trends
Locations/Localization
$$$
Message: People Money:
Information Accounting,
Finance,
Processes Things Investment
Machine:
Method: Property, Facility,
Technique, Process, Technology
Project, Task Material:
Raw material,
Product
MIS
Management BY Information Systems
Management OF Information Systems
Resources
Other
Information Resources:
Systems Information HR, Money,
Manages Material,
etc.
As Products or Services
Managing Information as Resource (Inventory Information System)

Selling Information as Products (eBook)
Offering Information as Services (CarFax)
The Extended Enterprise
Buy Make/Add Value Sell
Back Front Customers

Suppliers Office Office
E-Business: Virtual and Dynamic

EnterpriseSales
Manufacturing
Finance Support/Service
Engineering Marketing
Supply Chain Back Office Integration Demand Chain
Supply Chain Management Customer Relationship Management

Enterprise Resource Planning
Minder
MinderChen,
Chen,2001-
1996-2012 MIS - 29
A Federation of Information Systems
Customer Relationship Management (CRM)

Information Systems Triad
Operational Data Warehouse
Database Data Mart
Enterprise
OLAP BI
Workflow
Online DSS
Analytical EIS
Processing
OLTP
Online Transaction
Processing Business
Process
Data Information Workflow
Messaging Systems
Knowledge
Minder Chen, 1996-2012 Workflow, Collaboration, Groupware MIS - 31

Information Systems
Transaction Processing System
Online transaction processing system (OLTP)
Batch, Online, real-time
Management support system
Decision support system (DSS), Executive information system
(EIS), Digital Dashboard
Data warehouse, Business intelligence (BI)
Units involved
Individual, group, and departmental, enterprise-wide,
inter-organizational information, social network system
Strategic Information Systems
IT Platforms
Traditional desktop/client-server application
Web-based applications (Electronic Commerce)
Mobile applications
Information System Applications

Information Criteria (I)
Effectiveness deals with information being
relevant and pertinent to the business process as
well as being delivered in a timely, correct,
consistent and usable manner.
Efficiency concerns the provision of information
through the optimal (most productive and
economical) use of resources.
Confidentiality concerns the protection of
sensitive information from unauthorized
disclosure. (Sony PlayStation Network hacked)
Integrity relates to the accuracy and
completeness of information as well as to its
validity in accordance with business values and
expectations.
Information Criteria (II)
Availability relates to information being available
when required by the business process now and in
the future. It also concerns the safeguarding of
necessary resources and associated capabilities.
Compliance deals with complying with the laws,
regulations and contractual arrangements to which
the business process is subject, i.e., externally
imposed business criteria as well as internal
policies. (SarbanesOxley Act)
Reliability relates to the provision of appropriate
information for management to operate the entity
and exercise its fiduciary and governance
responsibilities.

Exercise 5-minute presentation
Describe your background and experiences
Company name and the industry it belongs to
Position and general responsibility
Three major decisions
Pick the most important decision involved in this position
and find out the following:
Characteristic of the decision: Operational vs. Strategic; Structured
vs. Unstructured; Routine vs. Non-routine
What information is current used to support the decision
What kind of source data should be collected to generate the
information needed
Under which task is this decision performed
What is the broader business process that this task belongs.
What additional improvements can be made from the
perspectives of information systems and decision making

Introduction of MIS

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Introduction of MIS

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Minder Chen, 1996-2012 MIS - 2

Minder Chen, 1996-2012 MIS - 3

Figure 1-6 here

Source: Using MIS 3e

Deliver just enough accurate, relevant, and timely information

The information-knowledge-wisdom hierarchy. The caveman

Knowledge Know how

Information Know what

MIS 715 Eaton Fall 2001 8

Minder Chen, 1996-2012 MIS - 8

Stored facts Presented facts

Inactive (it exist) Active (it enables doing)

Technology based Business based

Gathered from various Transformed from data

Minder Chen, 1996-2012 MIS - 9

Example: customer survey

MIS 715 Eaton Fall 2001 10

Minder Chen, 1996-2012 MIS - 10

Figure 1.1 Input-process-output

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Historical, Present, and Futuristic: For example, past

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Formal Vs. Informal:

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Internal Vs. External:

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Subsystem: One part of a system where the

Closed system: Stand-alone system that has no

Open system: System that interfaces with other

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Physical system: eg physical parts of computer

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Figure 1.3 Several subsystems make up this corporate accounting system.

MIS 715 Eaton Fall 2001 21

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Information and Managers

MIS 715 Eaton Fall 2001 22

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Figure 1.5 Qualities of humans and computers that contribute to synergy

MIS 715 Eaton Fall 2001 23

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Allows human thought to be translated into efficient

MIS 715 Eaton Fall 2001 24

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Figure 1.6 Components of an information system

MIS 715 Eaton Fall 2001 25

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Managing Information as Resource (Inventory Information System)

Buy Make/Add Value Sell

Back Front Customers

E-Business: Virtual and Dynamic

Supply Chain Back Office Integration Demand Chain

Supply Chain Management Customer Relationship Management

Customer Relationship Management (CRM)

Minder Chen, 1996-2012 MIS - 30

Minder Chen, 1996-2012 Workflow, Collaboration, Groupware MIS - 31

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