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Management Information Systems

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Title: Management Information Systems


1
Management Information Systems
  • Introduction

2
Dates of Lectures
Tuesdays
1 27/1/2009
2 10/2/2009
3 24/2/2009
4 10/3/2009
5 31/3/2009
6 7/4/2009
7 28/4/2009
3
Course Content
  • Overview
  • The nature of MIS - information and
    communications technology (ICT)
  • The role of MIS in organisations and its
    relationship to other disciplines and functions
    in the organisation
  • Considerations in choosing MIS designs
  • Conceptual Foundations
  • Systems theory concept of control feedback and
    feed forward control management, control and
    decision making
  • Distinguish data and information information
    value and cost
  • Organizational and behavioural context
    communication in organizations
  • humans as information processors formal and
    informal information systems.
  • Information and Communications Technology
  • Evolution and applications of ICT in modern
    business
  • E-business and the digital firm categories,
    requirements, options and applications available
  • current environment, issues developments and
    directions in ICT including, emerging and
    converging technologies and wireless
    communications implications for business.
  • ICT Support Systems for Decision Making
  • Transaction processing and data manipulation
    reporting systems
  • Decision support systems executive information
    systems expert system artificial intelligence.

4
Course Content contd
  • Planning for ICT Systems
  • Aligning organizational goals and ICT link with
    business plan
  • establishing organizational information
    requirements existing and proposed ICT systems
  • using ICT to support business processes
    enterprise resource planning, supply chain
    management
  • Developing ICT Systems
  • Approaches to systems development systems
    development lifecycle
  • Systems analysis, design implementation issues
  • human factors, system use and acceptance, user
    training
  • system maintenance and review,
  • prototyping,
  • outsourcing.
  • Management Control and Security
  • MIS management including organizational and
    procedures controls
  • Computer audit techniques
  • Security issues systems integrity data
    protection legislation.

5
Reading
  • Laudon K.C., Laudon J.P., Management Information
    Systems Managing the Digital Firm, McGrawHill
    2005
  • Chaffey D, Wood S., Business Information
    Management Improving Performance Using
    Information Systems, Prentice Hall, 2007
  • Applegate L, Austin R, McFarlan F., Corporate
    Information Strategy and Management Text and
    Cases, McGraw Hill, 2006
  • Other current materials and Web

6
Module Assessment
  • 30 Continuous Assessment
  • 70 End of Module Exam

7
The Nature of Business information age
  • In todays business environment information
    and Information Technology (IT) being used to
    gain and sustain competitive advantage.
  • This is the information age Knowledge is Power
  • All areas of business Marketing, Finance, HR,
    Higher Management - produce data / information as
    a product.
  • Youll never find a successful business whose
    slogan is
  • ..what you dont know wont hurt you..
  • Organisations understand that what they dont
    know can become an Achilles heel and a source
    of advantage for the competition.
  • In todays business world, Knowledge workers
    outnumber other types of worker by approx six
    to one.
  • Hence Managing this knowledge (i.e. filtering out
    chaff and making decisions based on correct
    information) is vital to Business success.

8
MIS - definitions
  • Definitions vary in the literature
  • MIS is an integrated computer based
    user-machine system that provides information for
    supporting operations and decision making
    functions
  • Awad (1988)
  • ..It MIS is a system using formalised
    procedures to provide management at all levels in
    all functions with appropriate information based
    on data from both internal and external sources,
    to enable them to make timely and effective
    decisions for planning, directing, and
    controlling the activities for which they are
    responsible..
  • Lucey (1997)
  • ..Organized approach to the study of information
    needs of management at every level in making
    operational, tactical, and strategic decisions.
    Its objective is to design and implement
    man-machine procedures, processes, and routines
    that provide suitably detailed reports in an
    accurate, consistent, and timely manner..
  • www.Businessdictionary.com (2009)

9
MIS Integrating Themes
  • MIS deals with the co-ordination of three very
    important organisational resources
  • Information
  • People
  • Technology (IT)
  • Co-ordination of these for the purpose of
    achieving and sustaining competitive advantage

10
MIS Components
11
Management Information Related Subsystems
  • Information Technology (IT)
  • is any computer based tool that people use to
    work with information and support the
    information-processing needs of an organisation.
  • Includes Hardware, Software, Communications,
    networks, production automation, etc
  • Any Kit concerned with the capture, storage,
    transmission, and presentation of information
  • Decision Support Systems (DSS) ,
  • Computer system designed to provide assistance in
    determining and evaluating alternative courses of
    action. A DSS (1) acquires data from the mass of
    routine transactions of a firm, (2) analyzes it
    with advanced statistical techniques to extract
    meaningful information, and (3) narrows down the
    range of choices by applying rules based on
    decision theory. Its objective is facilitation of
    'what if' analysis and not replacement of a
    manager's judgment.
  • Example Decision Explorer from Banxia
  • Example Analyitica from Lumina
  • Strategic Management Information Systems (SMIS)
  • Systems considered critical to the current or
    future business competitiveness of an
    organisation
  • SMIS is a relative rather than an absolute term
    as one must assess the of a give organisation
    first before attaching the term SMIS to a
    technology
  • Example A web service offering a product online
    could be considered strategic i.e. Dell
    computers, Ryanair online booking system.
  • Example Business Process re-engineering
    modelling software

12
Management Information Related Subsystems
contd
  • Geographic Information Systems (GIS)
  • Business information over layed on Geographical
    Maps
  • Example Google Earth shows Business locations,
    visitor attractions, etc in particular areas
  • Expert System (ES)
  • Also called a knowledge based system is an
    Artificial Intelligence system that applies
    reasoning capabilities to reach a conclusion.
  • Expert systems are software systems which capture
    the knowledge and experience of experts in
    particular fields Accounting, Medicine,
    Production Control, etc.
  • Expert Systems, through a series of carefully
    contrived questions to the user, can determine
    Whats wrong, and what to do.
  • Example Forensic accounting
  • Example HR Management to help personnel managers
    determine whether they are in compliance with
    National and EU regulations
  • Example Exsys Corvid
  • Dashboard System (DS)(EIS)
  • A dashboard is an Executive Information System
    user interface that (similar to an automobiles
    dashboard) is designed to be easy to read. For
    example, a product might obtain information from
    the local operating system in a computer, from
    one or more applications that may be running, and
    from one or more remote sites on the Web and
    present it as though it all came from the same
    source.
  • Digital dashboards may be laid out to track the
    flows inherent in the business processes that
    they monitor. Graphically, users may see the
    high-level processes and then drill down into low
    level data.

13
Airline Dashboard System
14
Traditional / Classical Organisation
15
Pioneers of Traditional / Scientific Management -
Fayol
  • 5 Key Functions of Management
  • - To Plan
  • - To Organise
  • - To Command
  • - To Co-ordinate
  • - To Control
  • Principles for Organisational Structure
  • - Unity of Command
  • - Small Spans of Control
  • - Line or Chain of Command
  • - Division of Work - specialism
  • - Delegate Authority Retain
    Responsibility

16
Modern Criticisms of Classical Management
  • Inhuman working conditions and poor industrial
    relations
  • Over-specialisation and restrictive work
    practices
  • Bureaucratic organisational structures long
    chains of command
  • Inward- looking organisational structures
  • Closed Systems run out of steam when not
    conscious of environmental influences

17
The Matrix Management
  • Project Focussed
  • Multi-disciplinary teams
  • Team members have more that one boss
  • Project team disbanded when project completes
  • New project team for new project
  • Gives team members an insight into the workings
    of other departments
  • Leadership training ground
  • Allows people with ideas to carry them forward
  • May cause blurring of communication lines

18
Modern Organisation structure
19
New structure - Decentralised
20
Business Trends
  • Changing business environment
  • Specialization
  • Management by Methodology and Franchises
  • Mergers
  • Decentralization and Small Business
  • Temporary Workers
  • Internationalization
  • Service-Oriented Business
  • Re-engineering
  • Recession
  • Need for faster responses and flexibility
  • MIS reflecting these requirements -

21
Business Trends Implications
  • Specialisation
  • Increased demand for technical skills
  • Specialized MIS tools
  • Increased communication
  • Methodology Franchises
  • Reduction of middle management
  • Increased data sharing
  • Increased analysis by top management
  • Computer support for rules
  • Re-engineering
  • Mergers
  • Larger companies
  • Need for control and information
  • Economies of scale
  • Decentralization Small Business
  • Communication needs

22
Business Trends Implications
  • Temporary Workers
  • Managing through rules
  • Finding and evaluating workers
  • Coordination and control
  • Personal advancement through technology
  • Security
  • Internationalization
  • Communication
  • Product design
  • System development and programming
  • Sales and marketing
  • Service Orientation
  • Management jobs are information jobs
  • Customer service requires better information
  • Speed

23
Business Trend Implications for Technology
Specialization Increased demand for technical skills Specialized MIS tools Increased communication
Methodology Franchises Reduction of middle management Increased data sharing Increased analysis by top management Computer support for rules Re-engineering
Mergers Four or five big firms dominate most industries Need for communication Strategic ties to customers and suppliers
Decentralization Small Business Communication needs Lower cost of management tasks Low maintenance technology
Temporary Workers Managing through rules Finding and evaluating workers Coordination and control Personal advancement through technology Security
Internationalization Communication Product design System development and programming Sales and marketing
Service Orientation Management jobs are information jobs Customer service requires better information Speed
24
MIS Related Organisational Functions
Strategic Management Provides an organisation
with overall direction and guidance mission and
vision
Tactical Management Develops the goals and
strategies outlined by Strategic Management
Operational Management Manages and directs the
day-to-day operations and implementations of the
goals and strategies
Non Management employees Producing goods and
services serving customers, order processing
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