Management Information Systems

1. Charles Parker 2nd Edition Management Information Systems Chapter 1:Introduction to Management Information Systems Prepared By: HamadRaza (Lecturer GCUF)

2. Information Resource Management (IRM) • IRM is a concept that recognizes information as a key resource that should be properly managed. • Most large organizations recognize information as a corporate resource of considerable value. • Data refer to facts. When data are filtered through one or more processors so that they take on both meaning and value to a person, that becomes “Information”. • Information rater than data is what people use to make decisions.

3. Data Versus Information • Data refer to stored facts. • Inactive (they exist) • Technology-based • Gathered from various sources • Information is presented facts. • Active (It enables doing) • Business-based • Transformed from data

4. Benefits / Goals of Information Systems • Following are some ways in which information systems can help an organization. • Operational Efficiency • Functional Effectiveness • Quality Customer Service • Product Creation & Enhancement • Altering the basis of Competition • Identifying and Exploiting Business Opportunities • Leveraging your Investment in Information Technology

5. Operational Efficiency • Operational Efficiency refers to doing routine tasks better, faster or cheaper. • In other words, “Doing the Thing Right”. • Prime area for Operational Efficiency is the office. • For example: Word processors greatly increase typing efficiency, especially if the documents being typed sometimes need to be revised.

6. Functional Effectiveness • Whereas a TPS is predominantly oriented toward satisfying efficiency objectives, DSS is often oriented towards functional effectiveness. • For example: Helping managers make better decisions or helping salespeople close sales with clients.

7. Quality Customer Service • Now a days Customer service are being vital part of every organization. • For example: The importance of information technologies in providing improved service to customers than the automatic teller machines (ATMs) used by most banks and the reservations systems used by travel agents. • ATMs enable bank depositors to withdraw money 24 Hours a day, 7days a week. • Also they promote operational efficiency by cutting personal costs.

8. Product Creation & Enhancement • In some industries like banking, insurance, financial services and travel- information is often a major force in creating the product being sold. • For instance, it is typically the effective use of information that distinguishes good investment from a bad one. • For example: In insurance industry, computer are widely used to customize insurance packages for particular groups or clients.

9. Altering the basis of Competition • By creating new products through information technology, some businesses may also change the very basis of competition within the industry. Identifying & Exploiting Business Opportunities • The computer is an ideal tool for spotting slight changes or trends in market data that are not visible to the human eye and helping an organization to move forward once a change in the environment is identified.

10. Leveraging Your Investment in Information Technology • Many public accounting firms & many other organizations in various non-computer-related industries have recently started to leverage their substantial technology investments through “outsourcing” or selling MIS product. • For instance, many banks leverage or spread out their huge investments in technology by offering their services to smaller banks.

11. Components of Computer-Based Information Systems • A Computer-Based Information Systems (CBIS) is an information system in which the computer plays a major role. • Such a system consists of the following elements: • Hardware: refers to machinery. This category includes computer itself which is often referred to as central processing unit (CPU) and all of its support equipments i.e. input & output devices, storage devices and communication devices. • Software: refers to computer programs & the manuals (if any) that support them. Computer programs are machine-readable instructions that direct the circuitry within the hardware parts of CBIS to function in ways that produce useful information from data.

12. Components of Computer-Based Information Systems • Data: are facts that are used by programs to produce useful information. Data are generally stored in machine-readable form on disk or tape until the computer needs them. • Procedures: are the policies that govern the operation of a computer system. “Procedures are to people what software is to hardware”. Procedures often specify the actions that people should take in a step-by-step manner. • People: Every CBIS needs people if it is to be useful. Users, Programmers, System Analysts and Database Administrators are just some of the people associated with CBIS.

13. Components of Computer-Based Information Systems Control Unit Arithmetic / Logic Unit Primary Memory Secondary Storage Devices

14. Batch Processing System Is least expensive way to update. transaction are collected or batched & processed periodically against the master file. For example: Many banks collect records of customer deposits made throughout the day and batch these nightly against the master file of account balances. Real-time Processing Updates are made to files or databases as soon as they take place. Immediately processed For example: Real time updating in the airlines passenger reservation systems. As soon as seat is sold on flight, the flight remaining seat count is updated immediately, so that agent knows how much seats are left on flight. Batch vs. Real-time Processing