MANAGEMENT INFORMATION SYSTEMS

1. Presented by Neels Bothma MANAGEMENT INFORMATION SYSTEMS 26 January 2006

2. What is information? Why do you need information Characteristics of information Information and managers Uptake of information in the new economy Key challenges Information systems Information in organisations Information as a key resource Nature of managerial work Types of information systems Information systems in functional areas Effectiveness and efficiency Groupware, telecomms, networks & protocols System Development Lifecycle Project Management System integration TOPICS FOR THE DAY

3. TOPICS FOR THE DAY • The Internet • Intranets and Extranets • E-commerce • B2B and B2C e-commerce • Search engines and the role of portals • E-government • What is e-government • E-government services • Critical e-government factors • Human resources for e-gov • Implementing e-government • Ethics & information

4. The word information is derived from Latin informare which means "give form to". Information can thus be defined as data that has been processed, manipulated and organised in a way suitable for human interpretation and that adds to the knowledge of the person receiving it Information is usually compiled in response to a specific need and often with the purpose of revealing trends or patterns WHAT IS INFORMATION?

5. Data can be defined as “a collection of facts from which conclusions may be drawn” Put another way, data are distinct pieces of factual information used as a basis for reasoning; a “given” or fact; a number, a statement, or a picture, discussion, or calculation Data is the raw material – the input – of information WHAT IS DATA?

6. Knowledge is "a fluid mix of experience, values, contextual information, and expert insight that provides a framework for evaluating and incorporating new experiences and information.“ Knowledge can further be described as the awareness and understanding of interconnected details, facts, truths or information gained through experience or learning, which, in isolation, are of lesser value. In other words, knowledge is about what one knows and understands WHAT IS KNOWLEDGE?

7. Knowledge can be categorised as either unstructured or structured or explicit or tacit. What one knows one knows is explicit knowledge. Knowledge that is unstructured and understood, but not clearly expressed is implicit knowledge. If the knowledge is organised and easy to share then it is called structured knowledge. To convert implicit knowledge into explicit knowledge, it must be extracted and formatted WHAT IS KNOWLEDGE…cont?

8. Decision-making Problem-solving Entertainment Enlightenment WHY DO PEOPLE NEED INFORMATION?

9. Politics Development and control of Information Systems often involves problematic politics Power Information affords power which can be problematic Who owns the system? Who pays for developing the system? Who accesses what information? Who has update privileges? INFORMATION, POLITICS, AND POWER

10. Competition 24x7 Global village Travel Television THE UPTAKE OF INFORMATION Emergence of the global economy

11. THE UPTAKE OF INFORMATION Transformation of industrial economies • Knowledge- and information-based economies in developed world • Knowledge: a central productive and strategic asset • High margin and tougher to replicate • Marked by time-based competition, shorter product life, and turbulent environment • Low-knowledge jobs more commodity-like and mostly fled to LDCs • Allows some poorer economies to leapfrog in status (e.g., Finland, India and Ireland)

12. THE UPTAKE OF INFORMATION Transformation of industrial economies …cont.

13. IT accommodates management in orgs that are: Flattening Decentralising Flexible Location independent And striving for: Low transaction and coordination costs; empowerment; collaborative work and teamwork THE UPTAKE OF INFORMATION Transformation of the modern enterprise

14. THE UPTAKE OF INFORMATION Transformation of the modern enterprise …cont.

15. Basically, digital firms use digital networks throughout their processes. Digital networks send digital information across them. For purposes of understanding what it is to be a digital firm, please consider the following definition from Whatis.com Prior to digital technology, electronic transmission was limited to analog technology, which conveys data as electronic signals of varying frequency or amplitude that are added to carrier waves of a given frequency. Broadcast and phone transmission has conventionally used analog technology. Digital technology is primarily used with new physical communications media, such as satellite and fiber optic transmission. A modem is used to convert the digital information in your computer to analog signals for your phone line and to convert analog phone signals to digital information for your computer. THE UPTAKE OF INFORMATION Emergence of the digital firm

16. Computers Networks Satellites Telecommunications Microchip Nanotechnology Cellular technology Internet THE UPTAKE OF INFORMATION Convergence of technology

17. CHARACTERISTICS OF USEFUL INFORMATION For information to be useful, it must be… • Relevant • Complete • Accurate • Current • Cost effective Simple, timely, verifiable, accessible, secure, flexible, reliable

18. GENERATING INFORMATION Raw data are processed in an IS to create final useful information • Process: Manipulation of data • Computer-based ISs: process data to produce information

19. Systems thinking: Viewing organisation in terms of sub-organisations or subsystems A framework for problem solving and decision making Managers focus on overall goals and operations of business INFORMATION AND MANAGERS

20. Systems thinking (Cont.) Information Map: data and information flow within an organisation Information Technology: all technologies that facilitate construction and maintenance of information systems INFORMATION AND MANAGERS…cont.

21. THE BENEFITS OF HUMAN-COMPUTER SYNERGY • Synergy: combined resources produce output exceeding the sum of the outputs of the same resources employed separately • Translates human thought into efficient processing of large amounts of data

22. MANAGEMENT CHALLENGES More Service Faster Decisions Informed Decisions Better Service

23. Reduced Control over Information Resources Reduced Budgetary Control Cost/Benefit Analysis Scalability Security Education MANAGEMENT CHALLENGESANOTHER VIEW

24. Automate use IT to do same things “Informate” use IT to learn and continuously improve “Strategimate” use IT to support organisation’s mission and strategy Integrate Use IT to bring organisations together OUR PERSPECTIVES ABOUT INFORMATION TECHNOLOGY IS CHANGING...

25. Increased efficiency Decentralisation Increased accountability Improved resource management Marketisation INFORMATION AGE REFORM

26. Technical definition: An organized set of interrelated components that collect (or retrieve), transmit, process, store, and distribute information to support decision making, control, analysis and visualization in an organization. WHAT IS AN INFORMATION SYSTEM?

27. Must support the strategic direction of organisation Must allow access to a broad group of users Must enhance organisational learning Must do in a cost-effective manner REFINED OBJECTIVES OF INFORMATION SYSTEMS

28. 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 WHAT IS A SYSTEM?

29. SYSTEMS AND SUBSYSTEMS

30. Process Redesign Capabilities of Information Systems Organizational Results WE NEED TO EXPLOIT INFORMATION SYSTEMS TO PRODUCE RESULTS • Increased Productivity • Improved quality • Greater citizen satisfaction • Improved decision making • Quicker response • Better communication and coordination • Enhanced goodwill of employees

31. KEYS TO SUCCESS People Technology INFORMATION Organization Strategy

32. Fast and accurate data processing with large-capacity storage and rapid communication between sites Instantaneous access to information Means of coordination Boundary spanning Support for decision making CAPABILITIES OF INFORMATION SYSTEMS

33. Supporting organizational memory and learning Routinising organisational practice Differentiation of services Modeling Automation CAPABILITIES OF INFORMATION SYSTEMS…cont.

34. Different levels of managers need different types of information for different types of decisions Increased flexibility of IS allows for changes in organisational structure However, politics of information is an issue MANAGERS AND INFORMATION

35. Many organisations follow a pyramid model CEO at top Small group of senior managers Many more lower-level managers THE TRADITIONAL ORGANISATIONAL PYRAMID

36. Strategic Management Decisions affect entire or large parts of the organisation; “what to do” decisions Aggregate past organisational data and make future predictions Improve organisational strategy and planning Tactical Management Wide-ranging decisions within general directions handed down; “how to do it” decisions Automation of monitoring and controlling of organisational activities Improve organisational effectiveness THE TRADITIONAL ORGANISATIONAL PYRAMID…cont.

37. Operational Management, Forepersons, Supervisors Comply with general policies handed down Automation of routine and repetitive activities Improve organisational efficiency Clerical and Shop Floor Workers No management-level decisions required THE TRADITIONAL ORGANISATIONAL PYRAMID…cont.

38. IT AND THE ORGANISATIONAL STRUCTURE IT Flattens the Organisation • Eliminates middle managers

39. Data Scope Amount of data from which information is extracted Time Span How long a period the data covers Level of Detail Degree to which information is specific CHARACTERISTICS OF INFORMATION AT DIFFERENT MANAGERIAL LEVELS

40. Source: Internal vs. External Internal data: collected within the organisation External data: collected from outside sources Media, newsletters, government agencies, Internet CHARACTERISTICS OF INFORMATION AT DIFFERENT MANAGERIAL LEVELS …cont.

41. Structured and Unstructured data Structured data: numbers and facts easily stored and retrieved Unstructured data: drawn from meetings, conversations, documents, presentations, etc. CHARACTERISTICS OF INFORMATION AT DIFFERENT MANAGERIAL LEVELS…cont.

42. CHARACTERISTICS OF INFORMATION AT DIFFERENT MANAGERIAL LEVELS…cont.

43. INFORMATION AS A KEY RESOURCEPersonal dimensions of information • The three personal dimensions of information include: • Time • Location • Form

44. INFORMATION AS A KEY RESOURCE Organisational dimensions of information

45. Strategic management – provides overall direction and guidance Tactical management – develops the goals and strategies Operational management – manages and directs the day-to-day operations Nonmanagement employees – perform daily activities INFORMATION AS A KEY RESOURCE Organisational dimensions of information

46. The four flows of information include: Upward – describes the current state of the organisation based on its daily transactions Downward – consists of the strategies, goals, and directives that originate at one level and are passed to lower levels INFORMATION AS A KEY RESOURCE Organisational dimensions of information

47. …Information flows continued Horizontal – between functional business units and work teams. Outward – information that is communicated to customers, suppliers, distributors, and other partners for the purpose of doing business. INFORMATION AS A KEY RESOURCE Organisational dimensions of information

48. INFORMATION AS A KEY RESOURCE Organisational dimensions of information • Information granularity – refers to the extent of detail within the information

49. What the information describes can include: Internal information – specific operational aspects of the organization. External information – the environment surrounding the organization. Objective information – something that is known. Subjective information – something that is unknown. INFORMATION AS A KEY RESOURCE Organisational dimensions of information

50. People report to different supervisors, depending on project, product, or location of work More successful for smaller, entrepreneurial firms IT supports matrix structure Easier access to cross-functional information THE MATRIX STRUCTURE