Management Information system

Challenges of Information System

Different kind of systems

Strategic level
Senior managers

Management level

Middle managers

Knowledge level Operational level

Sales & Marketing Manufacturing Finance Accounting

Knowledge & data workers

Human resource

Different kind of systems

Four main types of Information system :

Operational level system Knowledge level system Management level system Strategic level system

Operational Level System

Helps

operational managers Keeps track of the elementary activities & transactions of the organization e.g., sales, receipts, cash deposits, payroll, flow of materials Purpose : answer routine questions, track flow of transactions Example : record bank deposit from ATM machines

Knowledge Level System

Support

knowledge and data workers in an organization Purpose : to help the business firm integrate the new knowledge into business and to help control the of paperwork flow

Management level system

Designed to serve the monitoring, controlling, decision making, administrative activity of middle level managers Purpose : are the things working well? Compares todays output with previous Provides periodic reports Some management level systems provides non routine decision making What if analysis

Strategic level system

Information

system that supports long range planning activities of senior management. Help senior management tackle and address strategic issues and long term trends both within the firm and in the external environment What will be the employment level in the coming 5 years

Different kind of systems

IS are differentiated by functional specialty Major organizational functions are served by own IS Sub-function of the major function can have also their own IS : manufacturing = inventory management + process control + plant maintenance+ computer aided engineering+ material requirement planning Typical organizations has operational-, -knowledge-, -management-, -strategic level system for each functional area Different organization has different IS

Types of information systems

Type of system

ESS DSS

Information inputs

Processing

Aggregate data : Lowexternal, volume internal data; analytic models

Graphics, Projections; Senior simulations responses managers Interactive; Special Professiona , interactive to queries ls, staff simulations reports; , decision managers analysis analysis; responses to queries

Information outputs

Users

Types of information systems

Type of system

MIS KWS

Information inputs

Processing

Summary Routine Summary transaction reports; ; and Design Modeling Models; data : high simple specificatio simulations exception graphics volume models; reports ns; data; knowledge low level simple analysis base models

Information outputs

Users

Middle managers Professiona ls, technical staff

Types of information systems

Type of system

OAS TPS

Information inputs

Processing

Documents, Document, Documents;Clerical schedules managemenschedules; workers Transaction Sorting, Detailed Operations t; mail ; events listing; reports; personnel, scheduling; lists; merging, supervisors communica summaries updating tion

Information outputs

Users

Types of information systems

Type of system

ESS DSS

Information inputs

Processing

Aggregate data : Lowexternal, volume internal data; analytic models

Graphics, Projections; Senior simulations responses managers Interactive; Special Professiona , interactive to queries ls, staff simulations reports; , decision managers analysis analysis; responses to queries

Information outputs

Users

The changing management process

HARD WARE

BUSINESS Strategy Rules Procedures

SOFT WARE

DATA BASE

Interdependence

TELECOMMUNICATIONS

ORGANIZATION

INFORMATION SYSTEM

Role of IS in organization

Growing interdependence between business strategy, rules, procedures on one hand and information system software, hardware, data and telecommunication on the other Changes in the strategy, rules and procedures increasingly require changes in hardware, software, databases and telecommunications. Existing system can act as a constraint on organizations What the organization is like to do depends on what its system will permit it to do.

Changing nature of IT
Why

system play a crucial role in organization ???

Growing power of IT and declining cost In few hours relatively unskilled employees can be taught word processing, project scheduling, spreadsheet preparation, telecommunication in microcomputers

Changing character of applications

Both the changing role of system and the new technology have brought about a new kind of application that are more deeply embedded in the fundamental activities of the firm Massive transaction processing, reporting system, customized system for one or few groups of the organization New kind of application require direct close interaction between technical support personnel and managers who will use the system and senior management support Managers need to have the understanding of computers to maximize the benefit.

Information architecture
Coordination
Strategic systems

Functional business applications

Management systems

Knowledge systems

Operational systems
Sales & Manufacturing marketing Finance Accounting Human resources

Computer systems base

Hardware

Software

Data and files

Tele-communication

Information architecture

Managers should have a understanding on data processing system, telecommunications and office technologies. Separate island of technologies must be closely coordinated Managers need to track, plan and mange the many islands of technology in a way that is best suited for the organization. Find organizational problem and system solution Knowledge of organization is required System knowledge and organizational understanding shape the information architecture

Information architecture

Information architecture is the particular form that information technology takes in an organization to achieve selected goals or functions. Although the computer system base is operated by technical personnel general management must decide how to allocate resources it has assigned to hardware, software and telecommunications Top managers of systems and communication departments are also general managers

Challenges of IS
The strategic business challenge : How can business use information technology to design organizations that are competitive and effective? The globalization challenge : How can firms understand the business and system requirement s of a global economic environment?

Challenges of IS
The information architecture challenge : How can organizations develop an information architecture that supports their business goal? The information system investment challenge : How can organizations determine the business value of information system?

Challenges of IS
The responsibility and control challenge: How can organizations design systems that people can control and understand? How can organizations ensure that their information system are used in an ethically and socially responsible manner?