MIS 5003

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MIS 5003

• MANAGEMENT INFORMATION SYSTEMS
• Dr. Carol Saunders

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Information Systems Objectives

• define information system, system, data,
  information, batch processing, on-line
  processing, transaction
• distinguish between information, data and
  knowledge
• discuss the components and benefits of an
  information system
• discuss the productivity paradox
• discuss the characteristics of information across
  hierarchical levels

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Definition Information System

• a computerized system that processes data and
  produces information (SSC)
• a collection of components that collects,
  processes, stores, and disseminates information
  for a specific purpose
• a computer system designed to accomplish business
  objectives (IS Primer, Part I)

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Schematic View of an Information System
Outputs
Processing

• Inputs

Solutions Reports Graphics Calculations Voices Ta
ctics
Business Problems Data Information Instructions Op
portunities
Programs People Equipment Storage
Control
People Reports Decision makers
Feedback
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Components of IS and Definition of System

• System A group of parts or components working
  together to accomplish a goal
• Components of IS
• Data
• Hardware
• Software
• Trained personnel
• Procedures

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Computer Hardware withinan Information System
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Benefits of IS

• Types
• Distribution (information)
• Efficiency
• Automation
• Arise from changes in work tasks, procedures and
  arrangements not just from technology
• Potential vs. Actual

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Why the Benefits of IT are Not Achieved

• Lack of knowledge about IT and IT management
• Incompatible hardware and software
• Inefficiencies in work processes
• Incompatible organizational cultures and climates

IT Productivity Paradox
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IT Productivity Paradox

• Over 1 trillion dollars spent on computer and
  communication technologies since 1980
• Systematic relationship to financial performance?
• People make the difference
• Managers need to know how to manage and use
  information

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Data vs. Information vs. Knowledge

• Data - Facts
• Information - Data in a context
• Knowledge - Information from the human mind the
  sum of what is known

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Information

• Adds to knowledge
• Has surprise value
• Reduces uncertainty
• Leads to action
• Changes a decision
• Relevant
• Varies by function and level of management
• Needs consensus on meaning

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Information Characteristics across Levels
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Information Today

• Costly to produce by cheap to reproduce
• One the first copy of information good has been
  produced, most costs are sunk and cant be
  recovered
• Multiple copies can be produced at roughly
  constant per unit costs (especially when
  separating economics of things from economics of
  information)
• There are no natural capacity limits for
  additional copies
• Price based on value to consumer, not production
  costs

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Information

• Price based on value to consumer, not the
  production costs
• BUT
• value varies
• how do you know value before you have experienced
  it?

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Transaction Processing Systems

• Transaction - Basic business event, act or
  process
• TPS
• backbone of an orgs information systems
• capture data on business events
• store these data in databases
• use data to efficiently handle day-to-day
  business operations
• provide information needed by law
• may be complex

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Transaction Processing Terms

• Batch processing - transactions are collected as
  they occur and placed in groups or batches to be
  processed periodically
• On-line processing - data are processed as soon
  as transaction occurs