INFORMATION
SYSTEMS
MANAGEMENT
(ISM)
INTRODUCTION TO ISM
Definition
Information Systems Management (ISM) refers to the administration
of information systems and technology within an organization to
meet its strategic goals and operational needs. It involves overseeing
the development, implementation, and maintenance of information
systems and ensuring they effectively support the business's
objectives.
PURPOSE
• The primary purpose of ISM is to ensure that information systems align with
and support the organization’s business strategy. This involves:
• Efficiently Managing Information: Ensuring that information is accurately
collected, processed, and distributed.
• Supporting Decision-Making: Providing timely and relevant data to aid in
decision-making processes.
• Enhancing Productivity: Streamlining operations to improve productivity
and efficiency.
• Ensuring Security: Protecting data and information systems from
unauthorized access and breaches.
•Alignment with Business Goals: Ensuring that IT
strategies and systems support the organization’s business
objectives.
•Improving Efficiency: Streamlining processes and
automating tasks to increase operational efficiency.
OBJECTIVES •Facilitating Communication: Enhancing internal and
external communication through effective information
management.
•Ensuring Data Integrity: Maintaining the accuracy and
reliability of data.
•Providing Competitive Advantage: Leveraging
information systems to gain a competitive edge in the
market.
ROLE OF ISM IN BUSINESS ORGANIZATIONS
•Strategic Planning: Assists in formulating strategies by
providing insights derived from data analysis.
•Operational Management: Manages day-to-day operations
through integrated systems for inventory, payroll, customer
relationship management, etc.
•Decision Support: Offers tools and systems that support
decision-making processes at various levels of the organization.
•Innovation: Drives innovation by implementing new
technologies and systems that enhance business processes.
•Clear Objectives: Defined goals for what
the information systems are intended to
achieve.
•Skilled Personnel: Qualified IT
professionals and managers who
understand both technology and business. PRE-REQUISITES
•Adequate Infrastructure: Necessary
hardware, software, and network
FOR EFFECTIVE
resources. ISM
•Data Governance: Policies and
procedures for managing data quality,
security, and privacy.
•Integration: Systems that work
seamlessly together to support business
processes.
COMPONENTS OF ISM
•Hardware: Physical devices like computers, servers, and
networking equipment.
•Software: Applications and operating systems used for
various functions such as data processing and
communication.
•Data: Information that is processed and managed by the
system.
•People: Users who interact with the system, including IT
staff and end-users.
•Processes: Procedures and workflows for collecting,
processing, and utilizing information
•Customer Relationship Management
(CRM): Managing interactions with
customers and improving service.
•Enterprise Resource Planning (ERP):
Integrating core business processes like
finance, HR, and supply chain
management.
ISM APPLICATIONS •Business Intelligence (BI): Analyzing
IN BUSINESS data to support decision-making and
strategic planning.
•Supply Chain Management (SCM):
Overseeing and optimizing the flow of
goods and services.
•Knowledge Management: Capturing
and leveraging organizational knowledge
and expertise
INFORMATION IN DECISION MAKING
• Meaning and Importance
• Information in decision-making refers to the data and insights used to
make informed choices. Effective decision-making relies on accurate,
timely, and relevant information to:
• Reduce Uncertainty: Provides a clearer understanding of the
situation.
• Enhance Accuracy: Leads to more precise and informed decisions.
• Improve Outcomes: Increases the likelihood of achieving desired
results.
Sources and Types of Information
• Internal Sources: Data from within the organization, such as sales reports,
financial statements, and employee feedback.
• External Sources: Information from outside the organization, such as market
trends, competitor analysis, and customer feedback.
• Primary Data: Collected directly through surveys, interviews, and observations.
• Secondary Data: Existing data gathered from reports, research studies, and
databases.
Information Requirements with Reference to Management Levels
• Operational Level: Requires detailed and timely data for day-to-day activities
(e.g., inventory levels, employee attendance).
• Tactical Level: Needs summarized data for short to medium-term planning (e.g.,
departmental performance metrics).
• Strategic Level: Requires high-level data for long-term planning and decision-
making (e.g., market analysis, financial forecasts).
Relevance of Information in Decision Making
• The relevance of information is crucial as it directly
impacts the quality of decisions. Relevant information is:
• Accurate: Correct and error-free.
• Timely: Available when needed for decision-making.
• Complete: Comprehensive enough to cover all aspects of
the decision.
• Concise: Clear and to the point, avoiding unnecessary
details.
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