Chapter 7

Model, System, Information System (IS), &

Management Information System (MIS)
Presented By: Dr. Ezzeddin Kamil Bin Mohamed Hashim
Date: 23 May 2021
E-mail: ezzeddin@usm.my
 Model, System, IS, and MIS
Specific Learning Outcomes

After completion of this lecture, students should be able to:

LO1 - Describe the relationship between model, data
interpretation, and system
LO2 - Describe the basic concept and characteristics of an
information system
LO3 - Describe components of MIS and its domains of
technology, management and organization
 Models are abstractions of the real world

The image captured upon the camera’s film The process of creating a model of the
is a model of the world real world is called abstraction.

− Models are the basis of the way we learn about & interact with the
physical world.
− All models are built for a reason e.g. maps as copies of the world,
blueprints as templates for constructing physical objects or
processes.
− Model is created to suit particular purposes. Use the one that gives
the most satisfactory explanation of the phenomenon we are
interested in.
 Four effects of abstraction
1. Models are always less detailed than the real world they represent.
Data is lost in the abstraction process.
2. Models ignore aspects of the world that are not considered
essential. Thus, abstraction imposes a point of view upon the real
world. The resulting model is inevitably distorted in some way.
3. Many models can be created of any given physical object,
depending upon the level of detail and point of view selected. The
number of possible models is infinite.
4. The similarity between models and the physical objects they
represent degrades over time.
* There is no such thing as a truly general-purpose model or the most
‘correct’ model. Models are simply better or worse suited to
accomplishing a particular task.
 Models can also be used as template
− Another use of models is to be used as templates from which
new things will be created OR show how things are to be done.
− Instantiation uses a model as a template to build an artefact or
process, that is an instance of the model in the physical world.

− The process of creating an instance has variable results due to

variations that are ‘added in’ when we doing things in the real
world as we follow a template.
− The impact of any instance of a model in the real world is also
varies.
 Four characteristics of templates
1. The process of instantiation adds data to template to create an
instance / artefact.
2. The constructed artefact is a distortion of the original template
because the process of instantiation can transform it in many
ways.
3. Two physical artefacts are never similar even if they are
instances of the same template. In contrast, in digital or ‘virtual’
worlds, we can typically guarantee that the conditions for
creating instance copies are identical.
4. The effect of the physical artefacts changes with time as the
physical world changes.
* There is no such thing as a general-purpose template. Templates or
designs can only be better or worse suited to our particular circumstances
and are better or worse at meeting the needs of the task at hand.
 The way model created influences its effects
– Models can be used as copies of things in the world or as templates
upon which new things are created. These two processes are deeply
interrelated.
– When models are created, they were assumed to accomplish a
particular purpose OR have a context of use.
– Before any model is used, we need to be clear about what has been
assumed. These considerations / specifications on how the model
will operate in the environment that it will be used its called design
assumptions.
– The design assumptions used in a model’s creation, whether
implicit or explicit, define the limits of a model’s usefulness.
– When artefacts are created, it is assumed that they will be used for
a particular purpose. If the purpose changes, then the design
(template/blueprint) becomes less effective.
 The way model created influences its effects
There are direct connections between the process of a model creation, the
construction of artefacts based upon such models, and their eventual
effectiveness in satisfying some purpose.

Models of the world are used as a template to An artificial heart is based upon two kinds of
define how artefacts such as devices or model i.e.: 1) Cardiovascular system has to be
processes will be constructed. modelled; 2) A mechanical blueprint to model the
way artificial heart will be constructed.
 Models are built from symbols
• Knowledge is stored in the heads of people. With the development of
language and writing, it became possible for these models to be shared and
to evolve from being purely mental constructions to something we can
examine and manipulate in the physical world.
• Knowledge can be thought of as a set of models we use to understand and
interact with the world:
– These models are composed of symbols. Symbolic models cannot be understood
unless the symbol language and the possible relationships among the symbols are
also understood.
– Symbolic models are built using a
recognized terminology and a set
of relationships (grammar) that
connects the terms.
– Together the terminology and these
grammatical relationships
constitute a language.
 Data interpretation
• Data on their own have no intrinsic meaning.
• Language identifies concepts within the data.
• Data Model is relationships btw sets of data with sets of labels.
• Interpretation of data requires database, a knowledge base, and
rule of inference.
– Database is a collection of data models.
– Rules of inference, the fourth model, specify how a knowledge base can
be applied to a database.
– Knowledge Base is a collection of rules a.k.a knowledge models,
ontology, or dictionary of allowed concept types.
• Together, a data model and ontology provide the syntax /
grammar that defines relationships among data.
• Rules of inference are then used to interpret the meaning or
semantics of the data.
Data interpretation (CONT.)
 Model assumptions define its limits
• Assumptions in the knowledge model affect the quality of the
inferences drawn from it:
– Assumptions includes the way model is constructed, the context within
which it is defined, what included in it and the purpose it is intended.
– Inferences drawn from a model are strongly influenced by the
assumptions made when the knowledge in the model was first created.
– Assumptions may implicitly define the context within which the model
was created.
– For symbolic model, design assumptions include the modelling language
used. A symbolic model cannot be used unless the right language and
modelling relationships are also available.
Creation & Application of knowledge model
Knowledge
acquisition and
application are
examples of the cycle
of model abstraction
(*) and template-
based construction
(**). These models
are then applied to
data, to draw
interpretations of the
meaning of the data.
 Computational models permit the automation
of data interpretation
• Once a model and data have been sufficiently formalized, the
interpretation can be automated using a computer.
a. Computers can act as data stores (database). It stores data according to
data models so that the origin of each datum is recognizable.
b. Computers can generate different views onto data according to user
models which can be used to assist interpretation e.g. resource query in
Medline database, patient’s physiological monitor, and CT scan viewer
software.
c. Computer can be responsible for all data interpretation. In order to do
that, they must have a sufficient knowledge base and an inference
procedure.
 Characteristics of a system
• A system has an internal structure that transforms
inputs into outputs for a specific purpose:
1. Systems have inputs, internal structure, behavior, and
outputs
2. Physical systems are embedded in an environment
3. Systems can regulate their output by using feedback as
input
4. Systems are arbitrary i.e. there are many possible ways
that one could choose to describe a system
5. Systems are purposive i.e. they are constructed with a
function or purpose in mind
6. Information systems contain data and models
 Systems have inputs, internal structure, and
outputs

− Systems usually have a set of inputs, which are transformed by the

internal components of the system into a set of outputs.
− For a system to function, each component must interact or
communicate. These components are often decomposed into sub-
systems.
− A system has behavior that cannot usually be predicted by an
examination of its individual components but that emerges from the
way the components interact with each other.
 Physical systems are embedded in an environment
Three different kinds of systems are possible:
− Closed systems have no external inputs and outputs, and they behave like a
black box that is unaffected by the external world.
− Relatively closed systems have precisely defined inputs and outputs with
their environment.
− Open systems interact freely with their surrounding environment.
Except for the rare closed system, which does not interact with its
environment, a system can never be completely separated from its external
world.

(a) and (b) The effect

on travel time of
building a new road
in an already
congested system.
 Systems can regulate their output by using
feedback as input
The output of a system may be
regulated by a control sub-system
that measures the system’s outputs
and uses that measurement to
regulate the subsequent system
inputs.

The simplest feedback control system consists of a sensor, a

comparator, and an activator.
There are two basic types of feedback system:
i. Negative feedback arrangement, the output of a system is subtracted from the
next input. This restricts a system to working within a steady operating range.
ii. Positive feedback system, the output of a system is added to its next input;
the result is that the system’s output increases with time.
 Discussions
1. We should never forget that the map is not the territory and the blueprint
is not the building. Why not?
2. In what ways could the limitations of models result in errors in the
diagnosis or treatment of patients? Use Slide #8 to guide your thinking, if
it helps.
3. Take a patient’s laboratory result sheet. If the results have been flagged or
interpreted in some way, suggest what rules of inference were applied?
4. Explain the role of hashtags in a Twitter message or of metadata on a Web
page.
5. Find the names of some widely used terminologies and ontologies in
healthcare or biology.
6. What are the inputs and outputs of a patients’ record system?
7. What is the purpose of the health system? What are the components of the
health system? What is the purpose of each component?
 Data and Information

• Information vs. data

− Data are streams of raw facts e.g. numbers, characters, images, or outputs from devices.
− Streams of raw data represent events such as business transactions
− Information: “processed” data into meaningful form.

• Raw data from a supermarket checkout counter can be processed and organized to produce
meaningful information, such as the total unit sales of dish detergent or the total sales
revenue from dish detergent for a specific store or sales territory.
 What Is an Information System?
• Information is an ordered set of data that you can
understand and act on.
• A system refers to a set of components that work
together.
• Information system:
– A set of interacting components that collect, manipulate,
store, and disseminate data and information and provide
feedback to meet an objective (payroll process, RFID).
– To make sense out all the confusing data in the
environment and put the data in to some kind of order
• Computer/computer program vs. information system
– Computers and software are technical foundation and
tools, similar to the material and tools used to build a
house.
 Information systems contain data and models
• A system is devised because an information process is very
common (routine), very complicated or in some way critical.
• IS contain data and models, which include databases and
knowledge bases that interact via a communication channel.
• IS can have internal structure consists of a database, a knowledge
base, an ontology, & rules of inference (Slide 10)

A calculator with a stored

equation is an
information system. The
inputs are the
equation to be solved and
the data values, and the
answer output by the
system depends on the
input values.
 Characteristics of an information system
• A system can be an abstracted description of the
real world, a template to action or an artefact
constructed in the real world.
• An IS may be one of three things:
1. A simplified description of an existing set of
information processes.
2. A plan for implementing a new set of information
processes.
3. An actual physical system.
• IS share all the characteristics of models which
are described earlier.
 What is Management Information System (MIS)?
• MIS is use of information system in business firms to access,
organize, summarize, and display information for supporting
routine decision making in the functional areas.
• Geared toward middle managers, MIS are characterized
mainly by their ability to produce periodic reports such as a
daily list of employees and the hours they work, or a monthly
report of expenses as compared to a budget.
• Combines work of CS, management, and operating research
toward developing system solutions to real word problems
• Concerned with behavioral issues of development, use and
impact of IS
 Information System (IS) and Organization
• An IS contains information
about an organization and its
surrounding environment.
• Three basic activities (i.e.
input, processing, and
output) produce the
information organizations
need.
• Feedback is output returned
to appropriate people or
activities in the organization
to evaluate and refine the
input.
• Environmental actors, such
as customers, suppliers,
competitors, stockholders,
and regulatory agencies,
interact with the organization
and its IS.
 Components of MIS
• Main actors : Suppliers of hardware and software, business firms,
managers and employees, and firm’s environment (legal, social,&
cultural context)
• Hardware - computer equipment used to perform input, processing,
and output activities.
• Software - computer programs that govern the operation of the
computer.
• Database - an organized collection of facts and information, typically
consisting of two or more related data files.
• Telecommunications - the electronic transmission of signals for
communications which enables organizations to carry out their
processes and tasks.
• People - the most important element in most computer-based
information systems.
• Procedures - include the strategies, policies, methods, and rules for
using the CBIS.
 Management Information Systems
Perspectives on Information Systems
Dimensions of MIS

• Dimensions (boarders) of MIS

– Understanding of IS dimensions is IS literacy
– Where computer literacy is focus on primarily on
knowledge of IT
– MIS try to achieve this boarders, deals with
behavioral and technical issues surrounding
development, use and impact of IS in the firm.
 Management Information Systems
Information Systems Are More Than Computers

Using information system

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.
 Management Information Systems
Perspectives on Information Systems
Technology dimension

• Technology dimension of information systems

– Computer hardware and software
• Software are instructions that control H/W
– Data management technology
• Software governing data
– Networking and telecommunications technology
• Networks, the Internet, intranets and extranets, World Wide
Web
– IT infrastructure
• Provides platform that system is built on
 Management Information Systems
Perspectives on Information Systems
Management dimension

• Management dimension of information systems

– Make decisions, formulate action plan and solve
organizational problem
– Managers set organizational strategy for responding to
business challenges
– In addition, managers must act creatively:
• Creation of new products and services
• Occasionally re-creating the organization
 Management Information Systems
Perspectives on Information Systems
Organizational dimension

• Organizational dimension of information systems

– Hierarchy of authority, responsibility
– Experts are employed and trained for different
business functions (tasks)
• Senior management
• Middle management
• Operational management
• Knowledge workers
• Data workers
• Production or service workers
 Management Information Systems
Perspectives on Information Systems
Organizational dimension

• Organizational dimension of IS (CONT.)

– Separation of business functions
• Sales and marketing
• Human resources
• Finance and accounting
• Manufacturing and production
– Unique business processes
– Unique business culture
– Organizational politics
 Management Information Systems
Perspectives on Information Systems
Organizational dimension

• Organizational dimension of IS (CONT.)

– Structure: different levels and specialties
• hierarchy of authority, responsibility: Senior Middle Operational management,
Knowledge service Data workers
– Organization coordinate its work through its hierarchy and
business process
• Business process : tasks, rules, behaviors that been developed to produce business
results eg. developing new product, creating market plan, and hiring an employee
• Considered source of competitive strength
• IS automate many business process
– Culture : ways of doing things, partly is embedded in IS.
 Management Information Systems
Four Main Levels of IS in an Organization

Strategic Level Executive Support System (ESS)

Management Level Management Information System (MIS)

Decision Support System (DSS)

Knowledge Work System (KWS)

Knowledge Level Office Automation System (OAS)

Operational Level Transaction Processing System (TPS)

Functional Administration Clinical Pharmaceutical Units

ICT Hardware Software Storage Network Telecommunication

 Management Information Systems
Four Main Levels of IS in an Organization
Transaction Processing System (TPS)

• TPS automates routine and repetitive tasks that are critical

to the operation of the organization, such as preparing a
payroll, billing customers, Point-of-Sale, and Warehouse
operations
• Data collected from this operation supports the MIS and
DSS systems employed by Middle Management
• Primary purpose to perform transactions and collect data
• Examples: Patient Registration System, Pharmacy
Information System, Lab Information System
Management Information Systems
Four Main Levels of IS in an Organization
TPS Example: Patient Registration System
 Management Information Systems
Four Main Levels of IS in an Organization
Knowledge Work System (KWS)

Computerized system People such as scientists,

doctors and radiologist who
that aids knowledge design products or services
workers in creation or create new knowledge for
and integration of the organization
new knowledge in the
organization
Example: Linear Accelerator
Workstation
Used by nuclear medicine
specialist to diagnose and
report recorded image
 Management Information Systems
Four Main Levels of IS in an Organization
Office Automation System (OAS)

Computerized People such as

system that is secretaries or clerks who
designed to increase primarily process and
the productivity of disseminate the
data workers in the organization’s paperwork
office

Examples: word
processing, electronic
mail, desk top publishing
and scheduling system
 Management Information Systems
Four Main Levels of IS in an Organization
Management Information System (MIS)

• Information system at the management

level of an organization that serves the
functions of planning, controlling and
decision making by providing routine
summary and exception report.
– Input: Summary transaction data, high-
volume data, simple models
– Processing: Routine reports, simple
models, low-level analysis
– Output: Summary and exception reports
– Users: Middle managers
 Management Information Systems
Four Main Levels of IS in an Organization
Decision Support System (DSS)

• Information system at the management level that combines

data and sophisticated analytical models to support semi-
structured and unstructured decision making
• Typically employed for nonroutine decisions where decision
maker must provide judgement, evaluation, and insights into
the problem definitions
• Some DSS methodologies
– Mathematical Modeling (MIP)
– Simulation (What-If)
– Data mining (Bank, Tax Dpmt.)
– Forecasting (Nike vs Benetton)
 Management Information Systems
Four Main Levels of IS in an Organization
Executive Support System (ESS)

• Information system at the strategic level of an org.

designed to address unstructured decision making
through advanced graphics and communications.
• Provide communications and computing environment
that serves the organization’s strategic level
– Input: External & internal aggregate data
– Processing: Graphics, simulations, interactive
– Output: Projections, responses to queries
– Users: Senior Managers
 Management Information Systems
Reference

• Enrico Coiera (2015), Guide to Health Informatics, 3rd Edition,

CRC Press.
• Laudon K.C., Laudon J.P., (2017), Management Information
Systems: Managing the Digital Firm, 15th Edition, Pearson.