Management Information
Systems (MIS)
Introduction
• In every day, we use information generated by
an information system (e.g. surfing the web,
withdrawing money, asking for an report)
• Nowadays, computer based system generates
lots of information
What is a system?
• A group of interrelated components working
together towards a common goal, by
accepting inputs and producing outputs in an
organized transformation process (dynamic
system)
Concepts related to Information
Systems (IS)
• Data: stream of raw facts representing events
(occurring in an organization) on the physical
environment before being structured so the
people can understand and use them
• Information: data which is meaningful and
useful to human beings
• Computer based information systems:
information systems that rely on computer
hardware and software for processing and
disseminating information
IS Definition
• IS collects, stores, and disseminates information
from an organization’s environment and internal
operations to support organizational functions
and decision making, communication,
coordination, control, analysis, and visualization.
• IS provides a solution to a problem or challenge
facing a firm and provides real economic value to
the business.
Information can be:
• Resource (input to the production of output)
• Asset (contributing to the production of
output)
• Commodity (can be sold)
Information should be:
Sources of Information
• Personal information sources, which provide
information through contact with sales staff,
customers, suppliers, distributors, bankers,
etc.
• Impersonal information sources, which range
from general publications (e.g., reports on the
current situation, bank and official entity
reports, specialized journals) to specific
studies (e.g., market research, opinion studies,
consultants’ reports
IS Concepts
Context of IS
Typical Components of IS
• Hardware. Computer hardware, such as
processors, monitors, keyboard, and printers,
but also sensors, tracking devices etc.
• Software. These are the programs used to
organize, process and analyze data.
• Databases or related. Information systems work
with data, organized into
tables/files/repositories.
Functions of IS
• Data capture and collection
• Storage
• Information processing
• Distribution or dissemination of information
IS in the Value Chain Model
• The value chain covers all the activities a
company undertakes in order to offer a
product or service.
Why IS are so essential in business
today?
• Business today use IS to achieve 6 major objectives:
– operational excellence
– new products, services, and business models
– customer/supplier intimacy
– improved decision making
– competitive advantage
– day-to-day survival
• IS have become essential for helping organizations operate in a global
economy.
• All core business processes are digitally enabled.
Business Processes and their
Relationship to IS
• A business process is a logically related set of
activities that define how specific business
tasks are performed.
• A business can be viewed as a collection of
business processes.
• IS can help organizations achieve greater
efficiencies by automating parts of these
processes or by helping organizations redesign
and streamline them.
Let’s consider the process of cooking and the
process of software development….
06.10.2017
The bottom line is…
Clean kitchen does not necessarily produce tasty food, but
we’d rather eat a so-so tasty food from a clean kitchen.
Good processes does not necessarily develop quality
software, but
we’d rather fly in Airbus with a software from a well-known company than
a small software development house.
So, there is a need for quality processes, since they
decrease the risk of companies producing low quality
products.
Types of IS
• General vs specialized (e.g. DBMS vs. ERP, GIS)
Types of IS
• Transaction processing systems:
– Keep track of basic activities and transactions of
organization (e.g., sales, receipts, cash deposits,
payroll, credit decisions, flow of materials in a
factory).
• Management information systems and
decision-support systems:
– Help with monitoring, controlling, decision
making, and administrative activities.
Business Intelligence and
Business Intelligence Systems
• Business intelligence
– Data and software tools for organizing and analyzing data
– Used to help managers and users make improved decisions
• Business intelligence systems
– Management information systems
– Decision support systems
– Executive support systems
