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MANAGEMENT INFORMATION SYSTEMS Part 1 DEFINITIONS AND WAYS OF INFORMATION SYSTEM DEVELOPMENT

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MANAGEMENT INFORMATION SYSTEMS Part 1 DEFINITIONS AND WAYS OF INFORMATION SYSTEM DEVELOPMENT Prof. Witold Chmielarz, PhD , Oskar Szumski, PhD Faculty of Management ... – PowerPoint PPT presentation

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Title: MANAGEMENT INFORMATION SYSTEMS Part 1 DEFINITIONS AND WAYS OF INFORMATION SYSTEM DEVELOPMENT


1
MANAGEMENT INFORMATION SYSTEMS Part
1DEFINITIONS AND WAYS OF INFORMATION SYSTEM
DEVELOPMENT
  • Prof. Witold Chmielarz, PhD ,
  • Oskar Szumski, PhD
  • Faculty of Management University of Warsaw

2
Poland in the world
Warsaw
3
COURSE OBJECTIVES
  • Introduction of the main directions of the
    systems development, a new trends, and a new
    logical architectures of the systems
  • Characteristics of the main management
    information systems, their components and
    features
  • Presentation of the concepts and practical
    applications of various types of information
    systems in the business organizations
  • Illustration how management information systems
    have been helpful in enhancing effectiveness of
    organizations
  • Demonstration the use of IT in designing and
    implementing MIS
  • Analyzing of e-business as one of the modern
    ideas of MIS
  • Presentation of modern MIS applications in
    specific areas in Poland

4
  • Management Information Systems
  • Brief course description
  • Identification of the main management information
    systems and their creation, components of the
    systems and features,
  • Introduction of the main directions of the
    systems development, new trends, and new
    architectures of the systems,
  • Analyzing of e-commerce as one of the modern
    ideas of management information systems,
  • Presentation of modern MIS applications in
    specific areas in Poland.
  •  

5
  • Full course description
  • The role and prospects of the development of
    management information systems (basic concepts of
    information technology management ranges, types
    of information systems and their applications in
    the enterprise),
  • Characteristics of the management of information
    technology by the development of a logical
    architecture2.1 Transaction Processing
    Systems,2.2 Management Information Systems2.3
    Decision Support Systems, Management Information
    Systems,2.4 Systems Expert Systems, Artificial
    Intelligence, BI,
  • 3. Characteristics of information technology by
    the degree and extent of integration - enterprise
    business systems (IC, MRP, MRP II, ERP, ERP II -
    CRM, SCM, eERP,
  • 4. Characteristics of information technology by
    developing networks private networks, commercial
    networks, the Internet4.1. e-Business -
    definitions, typology, and development tools4.2.
    e-Banking - definitions, typology, and
    development tools, electronic payment systems,
  • 5. Database, data warehousing, handling
    multi-dimensional data warehouse and business
    analysis systems,
  • 6. IT infrastructure and new technologies (the
    evolution of the IT infrastructure, the era of
    cloud computing, the main factors of development,
    virtualization, open source software),
  • 7. Competitive advantage achieved through IT (IT
    and Porter's value chain model),
  • 8. Enterprise architecture and IT management,
  • 9. The problems of information security
    management systems.

6
COURSE BRIEF CONTENTS (only part with WCH)
Sessions Coverage References
1 DEFINITIONS AND WAYS OF INFORMATION SYSTEM DEVELOPMENT Turban E., at al, Laudon K. C., Laudon J. P, Chmielarz W.
2 CHARACTERISTICS AND FEATURES OF MIS Turban E., at al, Laudon K. C., Laudon J. P
3 INTEGRATED ENTERPRISE SYSTEMS Turban E., at al, Laudon K. C., Laudon J. P
4 e-COMMERCE AND e-BANKING Laudon K. C., Laudon J. P, Chmielarz W.
7
REFERENCES (textbooks)
  • Main
  • Turban E., at al Information Technology for
    Management. Transforming Organizations in the
    Digital Economy, John Wiley and Sons Inc. 6-th
    ed., 2008,
  • Laudon K. C., Laudon J. P. Management
    Information Systems, Pearson Education Inc.,
    Prentice Hall, NY, 9-th ed. 2010.
  • Internet http//www.wz.uw.edu.pl/wykladowcy,profi
    l,9,pliki,13.html
  • Additionally
  • Chmielarz W. Selected Problems of IT
    Development, Wydawnictwo Naukowe WZ UW, Warsaw,
    2005,
  • Bocij P., Chaffey D., Greasley A., Hickie S.
    Business Information Systems, 2-nd ed., Prentice
    Hall, Harlow, 2003,
  • Turban E., Lee J., King D., McKay J., Viehland
    D., Cheung C., Lay L. Electronic Commerce. A
    Managerial Perspective, Pearson Education, 4-th
    ed., 2008
  • Wallace T., M. Kremzar M., H. ERP Making It
    Happen, The Implementers Guide to Success with
    Enterprise Resource Planning John Wiley Sons,
    Inc., New York, 2001

8
...From Aphorismus Book...
  • ...Wisdom is nontransferable. The sage
    knowledge which he try to transfere, sounds
    always like nonsense...
  • (... Madrosci nie mozna przekazac. Wiedza, która
    próbuje przekazywac medrzec, brzmi zawsze jak
    glupota...),
  • ...Study period is the time when you are
    instructing by somebody you dont want to know,
    about something you dont want to know...
  • (... Okres nauki to czas gdy jestes pouczany
    przez kogos kogo nie chcesz znac, o czyms czego
    nie chcesz wiedziec ... )
  • Knowledge is powerless unless it prepares you to
    do the right thing at the right time
  • (Wiedza nic nie daje, jezeli nie przygotowuje
    cie do podjecia wlasciwej decyzji we wlasciwym
    czasie)

9
Subject
  • Management Information System refers to
    (means) a collection of computerized and net
    technologies whose objective is to support
    managerial work and especially decision making
  • System designed to provide past, present, and
    future information appropriate for planning,
    organizing, and controlling the operations of
    functional areas in an organization
  • (Turban E., at all IT for Management ... 2008)

10
Some definitions (glossary)
  • Data items refer to an elementary description
    of facts and figures relatively important for
    users, data item an elementary description of
    things, events, activities, and transactions,
    that are recorded, classified, and stored but not
    organized to convey any specific meaning can be
    numeric, alphanumeric, figures, sounds or images
  • A database consists of stored data items
    organized for retrieval
  • Information is processed, meaningful data data
    that have been organized, so they have meaning
    and value to the recipient
  • Data items typically are processed into
    information by means of an application,
    represents a more specific use and a higher added
    value than simple retreieval and summarizing
    from a database
  • Knowledge data and/or information that have
    been organized and processed to convey
    (distribute) understanding, experience,
    accumulated learning, and expertise (what to do
    with information)
  • Wisdom the ability to make sensible (rational)
    decisions and give good advice because of the
    experience, intuition and knowledge that you have
    (how to use knowledge, how to do it in rational
    way)

11
Some definitions (glossary)
  • Data items a student first name, name, grade in
    a class, the number of hours an employe worked in
    a certain week, etc.
  • Information a students grade point average
    (GPA), the application transforminf data in
    information might be a Web-based inventory
    management system, a univerity online
    registration, or e-commerce (internet-based
    buying and selling) system
  • Knowledge GPA of a student applying to Erasmus
    Students Exchange can be compared with GPA of
    the other students applying to this sholarship
    and be over average of all students from faculty
    (average is only criteria of selection)
  • Wisdom see above case inspite of level of GPA
    you know from your experience or partners
    knowledge that in Italy or Spain in most cases
    courses are in Italian or Spanish, so you first
    of all send there students speak these languages

12
Some definitions (glossary)
  • System group of elements integrated with common
    purpose of achieving an objective (...) by
    transforming input resources to output
    resources
  • Information system group of programs integrated
    in three areas programme, logical and
    technical, a physical process, that supports an
    organization in collecting, processing, storing
    nad analyzing data, and disseminating information
    to achieve organizational goals.
  • Information Technology the technology component
    of an information system (a narrow definition),
    or the collection of the computing systems in an
    organization (the broad definition)
  • Information infrastructure the physical
    arrangement of harware, software, databases,
    networks, and information management personnel
  • Decision making a process of choosing among
    alternative courses of action for the purpose of
    attainings a goal or goals
  • What should be done? When? How? Where? By whom?
  • Model (in decision making) a simplified
    representation or abstraction of reality can be
    used to performs virtual experiments and analysis

13
Some definitions (glossary)
  • A computer-based information system is an
    information system that uses computer and net
    technology to perform some or all of its intnded
    tasks.
  • The basic components of the system are hardware,
    software, database(s), telecommunication
    networks, procedures and people.
  • Hardware is a set of devices that accept data and
    information, process them, and display or raport
    them.
  • Software is a set of programs that enable the
    hardware to process data.
  • A database is a collection of related files,
    tables, relations, and so on that stores data and
    the associations among them.
  • A network is a connecting system (wireline or
    wireless) that permits different computers to
    share resources.
  • Procedures are the set of instructions about how
    to combine the above components in order to
    process information and generate the desire
    output.
  • People (users or final users, maybe curtomers)
    are those individuals who work with the
    information system, interface with it, or use its
    outputs

14
Some definitions (glossary)
  • Information system
  • Set of interrelated components
  • Collect, process, store, and distribute
    information
  • Support decision making, coordination, and
    control
  • Information vs. data
  • Data are streams of raw facts
  • Information is data shaped into meaningful form

15
Some definitions (glossary)
  • Information system three activities produce
    information organizations need
  • Input Captures raw data from organization or
    external environment
  • Processing Converts raw data into meaningful
    form
  • Output Transfers processed information to people
    or activities that use it
  • Feedback
  • Output returned to appropriate members of
    organization to help evaluate or correct input
    stage
  • Computer/Computer program vs. information system
  • Computers and software are technical foundation
    and tools

16
Functions of an Information System
An information system contains information about
an organization and its surrounding environment.
Three basic activitiesinput, processing, and
outputproduce the information organizations
need. Feedback is output returned to appropriate
people or activities in the organization to
evaluate and refine the input. Environmental
actors, such as customers, suppliers,
competitors, stockholders, and regulatory
agencies, interact with the organization and its
information systems.
17
Information Systems Are More Than Computers
Using information systems effectively requires an
understanding of the organization, management,
and information technology shaping the systems.
An information system creates value for the firm
as an organizational and management solution to
challenges posed by the environment.
18
Organizational dimension of information systems
  • Hierarchy of authority, responsibility
  • Senior management
  • Middle management
  • Operational management
  • Knowledge workers
  • Data workers
  • Production or service workers
  • Separation of business functions
  • Sales and marketing
  • Human resources
  • Finance and accounting
  • Manufacturing and production
  • Unique business processes
  • Unique business culture
  • Organizational politics

19
Management dimension of information systems
  • Managers set organizational strategy for
    responding to business challenges,
  • In addition, managers must act creatively
  • Creation of new products and services
  • Occasionally recreating the organization

20
Technology dimension of information systems
  • Computer hardware and software
  • Data management technology
  • Networking and telecommunications technology
  • (Networks, the Internet, intranets and extranets,
    World Wide Web)
  • IT infrastructure provides platform that system
    is built on

21
The Integration and Convergence Theory of
Information Systems Development
  • The main objective of this part of course is to
    present the idea of the development of MIS
    consisting in the integration and convergence
    approach by the analysis of three main paths of
    development
  • increasing complexity of logical systems
    architecture,
  • functional integration of Information Systems,
    tailored to the current needs of the organization
    and the user within the organization,
  • expansion of spatial network infrastructure.

22
  • Integration in the ideological sense consists
    in combining functional elements using by means
    of relations, so as to constitute specific
    structural components of the whole. Integration
    is here understood as a process of consolidation
    and merging of particular different-class
    characters and forms of interrelated elements in
    order to create a functional entity, resulting in
    the usefulness and efficiency which are greater
    than each of the parts acting separately
  • Convergence in the development process consists
    in the formation of similar features with regard
    to construction, function and appearance of
    various groups of systems functioning under the
    same environmental conditions, regardless of
    adopted specific innovative solutions.

23
1
Convergence
TSP/APD
1950 1960 1970 1980 1990 2000 2010
Integration
Year
24
1
Convergence
MIS
TSP/APD
1950 1960 1970 1980 1990 2000 2010
Integration
Year
25
Economic environment
MIS
Internet
Interior of organization
User
User interface
Database Management System
Ba
Database
  • Applications
  • accounting and finance,
  • inventory control,
  • production management,
  • Human relations.
  • Available for decision maker
  • knowledge,
  • intuition,
  • education,
  • data.

26
1
Convergence
DSS
MIS
TSP/APD
1950 1960 1970 1980 1990 2000 2010
Integration
Year
27
Economic environment
DSS
Internet
Interior of organization
User
User interface
Database System Management
Model Base System Management
Ba
Database
Model Base
  • Available for decision maker
  • knowledge,
  • Intuition,
  • education,
  • data,
  • models, methods.
  • Applications
  • accounting and finance,
  • inventory control,
  • production management,
  • Human relations.

Base of Procedures
28
1
Convergence
EIS/ESS
DSS
MIS
TSP/APD
1950 1960 1970 1980 1990 2000 2010
Integration
Year
29
Economic environment
EIS/ESS
Internet
Interior of organization
User
User interface
Database System Management
Model Base System Management
Ba
Database
  • Available for decision maker
  • knowledge,
  • Intuition,
  • education,
  • data,
  • models, methods.
  • prezentation, vizualization, extension.

Model Base
  • Applications
  • accounting and finance,
  • inventory control,
  • production management,
  • Human relations.

Base of procedures
30
1
Convergence
ES
EIS/ESS
DSS
MIS
TSP/APD
1950 1960 1970 1980 1990 2000 2010
Integration
Year
31
Economic environment
ES
Internet
Interior of organization
User
User interface
Database System Management
Model BaseSystem Management
Ba
Knowlede Base System Management
Database
Model Base
  • Applications
  • accounting and finance,
  • inventory control,
  • production management,
  • Human relations.

Ba
  • Available for decision maker
  • intuition,
  • education,
  • data,
  • models, methods,
  • prezentation, vizualization, extension,
  • knowledge.

Knowledge Base
Base of Procedures
32
1
BIS
Convergence
ES
EIS/ESS
DSS
MIS
TSP/APD
Internal integration - just combine different
types of systemsConvergence - increasingly
sophisticated systems to ever higher level of
development
1950 1960 1970 1980 1990 2000 2010
Integration
Year
33
Economic environment
BIS
Internet
Interior of organization
User
Mechanizms of data wholesale management
Mechanizms Business Analytics
User interface
Database System Management
Model Base System Management
  • Applications
  • accounting and finance,
  • inventory control,
  • production management,
  • Human relations.

Knowledge Base System Management
Model Base
Database
Ba
Marts branch wholesale
Knowledge Base
Base of Procedures
Decison maker has at his disposal more then he
needs!!!
34
Economic environment
BIS
Internet
Interior of organization
User
Mechanizms of data wholesale management
Mechanizms Business Analytics
User interface
Database System Management
Model Base System Management
  • Applications
  • accounting and finance,
  • inventory control,
  • production management,
  • Human relations.

Knowledge Base System Management
Model Base
Database
Ba
Marts branch wholesale
Knowledge Base
Base of Procedures
35
Types of decision
  • Structured decisions are repetitive and routine
    (strictly determined), and they involve a
    definite procedure for handling them so that they
    do not have to be treated each time as if they
    were new.
  • Unstructured decisions are those in which the
    decision maker must provide judgment, evaluation,
    and insight to solve the problem (probablistic,
    undetermined). Each of these decisions is novel,
    important, and non routine, and there is no
    well-understood or agreed-on procedure for making
    them.
  • Many decisions have elements of both types of
    decisions and are semistructured, where only part
    of the problem has a clear-cut answer provided by
    an accepted procedure. In general, structured
    decisions are more prevalent at lower
    organizational levels, whereas unstructured
    problems are more common at higher levels of the
    firm.

36
INFORMATION REQUIREMENTS OF KEY DECISION-MAKING
GROUPS IN A FIRM
37
STAGES IN DECISION MAKING
  • Intelligence consists of discovering,
    identifying, and understanding the problems
    occurring in the organization - why a problem
    exists, where, and what effects it is having on
    the firm
  • Design involves identifying and exploring various
    solutions to the problem
  • Choice consists of choosing among solution
    alternatives
  • Implementation involves making the chosen
    alternative work and continuing to monitor how
    well the solution is working

38
(No Transcript)
39
Six elements in business intelligence environment
  • Data from the business environment Businesses
    must deal with both structured and unstructured
    data from many different sources, including
    mobile devices and the Internet. The data need to
    be integrated and organized so that they can be
    analyzed and used by human decision makers
  • Business intelligence infrastructure The
    underlying foundation of business intelligence is
    a powerful database system that captures all the
    relevant data to operate the business. The data
    may be stored in transactional databases or
    combined and integrated into an enterprise-data
    warehouse or series of interrelated data marts
  • Business analytics toolset A set of software
    tools are used to analyze data and produce
    reports, respond to questions posed by managers,
    and track the progress of the business using key
    indicators of performance

40
Six elements in business intelligence environment
  • Managerial users and methods Business
    intelligence hardware and software are only as
    intelligent as the human beings who use them.
  • Managers impose order on the analysis of data
    using a variety of managerial methods that define
    strategic business goals and specify how progress
    will be measured.
  • These include business performance management and
    balanced scorecard approaches focusing on key
    performance indicators and industry strategic
    analyses focusing on changes in the general
    business environment, with special attention to
    competitors.
  • Without strong senior management over-sight,
    business analytics can produce a great deal of
    information, reports, and online screens that
    focus on the wrong matters and divert attention
    from the real issues.
  • You need to remember that, so far, only humans
    can ask intelligent questions.

41
Six elements in business intelligence environment
  • Delivery platform - MIS, DSS, ESS. The results
    from business intelligence and analytics are
    delivered to managers and employees in a variety
    of ways, depending on what they need to know to
    perform their jobs. MIS, DSS, and ESS, deliver
    information and knowledge to different people and
    levels in the firmoperational employees, middle
    managers, and senior executives. In the past,
    these systems could not share data and operated
    as independent systems. Today, one suite of
    hardware and software tools in the form of a
    business intelligence and analytics package is
    able to integrate all this information and bring
    it to managers desktop or mobile platforms.
  • User interface Business people are no longer
    tied to their desks and desktops. They often
    learn quicker from a visual representation of
    data than from a dry report with columns and rows
    of information. Todays business analytics
    software suites emphasize visual techniques such
    as dashboards and scorecards. They also are able
    to deliver reports on Blackberrys, iPhones, and
    other mobile handhelds as well as on the firms
    Web portal. BA software is adding capabilities to
    post information on Twitter, Facebook, or
    internal social media to support decision making
    in an online group setting rather than in a
    face-to-face meeting.

42
Business Intelligence and Analytics for Decision
Support
43
Business Intelligence Users
44
1
BIS
Convergence
ES
EIS/ESS
2
DSS
MIS
TSP/APD
IC
1950 1960 1970 1980 1990 2000 2010
Integration
Year
45
Inventory balance
IC
46
1
BIS
Convergence
ES
EIS/ESS
2
DSS
MIS
TSP/APD
MRP
IC
1950 1960 1970 1980 1990 2000 2010
Integration
Year
47
Production balance
Inventory balance
IC
MRP
48
1
BIS
KConvergence
ES
EIS/ESS
2
DSS
MIS
TSP/APD
MRP II
MRP
IC
1950 1960 1970 1980 1990 2000 2010
Integration
Year
49
Production Balance
Financial Balance
Inventory Balance
IC
MRP
MRP II
50
1
BIS
Convergence
ES
EIS/ESS
2
DSS
MIS
TSP/APD
ERP
MRP II
MRP
IC
1950 1960 1970 1980 1990 2000 2010
Integration
Year
51
Production Balans
Service Balans
Financial Balans
Inventory Balance
IC
MRP
MRP II
ERP
52
Functional integration - more and more utility
functionsConvergence - in each, next step newer
technology and better adjust to needs of
userDiffusion patterns between tracks
1
BIS
Convergence
ES
EIS/ESS
2
DSS
CRM
MIS
ERP II
TSP/APD
ERP
MRP II
SCM
MRP
IC
1950 1960 1970 1980 1990 2000 2010
Integration
Year
53
Production Balance
Service Balans
Financial Balance
Inventory Balance
IC
MRP
MRP II
ERP
Logistic Balans, specializations and mutations
ERP II
54
1
BIS
Convergence
ES
EIS/ESS
2
DSS
CRM
MIS
ERP II
TSP/APD
ERP
MRP II
SCM
MRP
IC
1950 1960 1970 1980 1990 2000 2010
Integration
Year
55
CommunicationBalans
Production Balance
Service Balans
Financial Balance
Inventory Balance
IC
MRP
MRP II
ERP
Logistic Balans, specializations and mutations
eERP
ERP II
56
1
BIS
Convergence
ES
EIS/ESS
2
DSS
CRM
MIS
ERP II
TSP/APD
ERP
MRP II
SCM
3
MRP
IC
Private, corporate nets
1950 1960 1970 1980 1990 2000 2010
Integration
Year
57
Corporate solutions based on EDI standards, huge
organizations Corporate networking
Private, corporate nets
58
1
BIS
Convergence
ES
EIS/ESS
2
DSS
CRM
MIS
ERP II
TSP/APD
ERP
MRP II
SCM
3
MRP
IC
Commercial nets
Private, corporate nets
1950 1960 1970 1980 1990 2000 2010
Integration
Year
59
Commercial solutions for large and medium-sized
companiesOrganizational nets
Commerce nets
Corporate solutions based on EDI standards, huge
organizations Corporate networking
Private, corporate nets
60
Integration - the traditional systems and other
networksConvergence - the expansion of the
subsequent users, connected with increasing
availability and ease of use
1
BIS
Convergence
ES
EIS/ESS
2
DSS
CRM
MIS
ERP II
TSP/APD
ERP
MRP II
SCM
3
MRP
IC
Internet
Commercial nets
Private, corporate nets
1950 1960 1970 1980 1990 2000 2010
Integration
Year
61
Commercial solutions for large and medium-sized
companiesOrganizational nets
Comprehensive and global solution for all
(organizations, customers, society)Social nets
Commerce nets
Corporate solutions based on EDI standards, huge
organizations Corporate networking
Internet
Private, corporate nets
62
1
BIS
Convergence
ES
EIS/ESS
2
DSS
CRM
MIS
ERP II
TSP/APD
ERP
MRP II
SCM
3
MRP
IC
Internet
Commercial nets
Private, corporate nets
1950 1960 1970 1980 1990 2000 2010
Integration
Year
63
Corporate Platform
1
BIS
Convergence
ES
EIS/ESS
2
DSS
CRM
MIS
ERP II
TSP/APD
ERP
MRP II
SCM
3
MRP
IC
Internet
Commercial nets
Private, corporate nets
1950 1960 1970 1980 1990 2000 2010
Integration
Year
64
Conclusions
  • The solution which under the conditions of the
    development of internet systems started to be
    applied in lieu of internal integration was
    external integration through external corporate
    portals.
  • A corporate portal is a platform which
    integrates systems and information technology,
    data, information and knowledge in an
    organization and its environment in order to
    provide users with a personalised and convenient
    access to data, information and knowledge, in
    accordance with the needs, at any time and in any
    place, in a secure manner and through a unified
    web interface .
  • The main objective of a corporate portal are
    improvements with regard to access to data,
    information and knowledge and their sources
    according to user requirements regardless of
    time and location of the web interface, and in a
    secure manner.
  • The main feature of corporate platforms is the
    integration of data from internal resources with
    external data, their conversion into common and
    jointly processed formats integration of
    heterogeneous applications integration of
    communication between particular users and
    providing them with personalized information and
    knowledge.

65
  • The emergence of corporate portals is connected
    with the development of internet network
    technologies, and the portals operate mainly in
    an intranet corporate environment. Through this
    environment web interface - they are
    distributed to users, as required information and
    knowledge.
  • The impression is that a corporate platform is
    both an integration instrument and at the same
    time a convergence tool - on the level,
    cooperation of both complementary and parallel
    systems is possible.
  • The author believed that this tendency was a
    process of intensifying of a previously examined
    complexity of the logical architecture structure
    in particular types of the systems, and therefore
    it does not require further analysis.
  • Also, the author did not illustrate the
    development of particular internet tools in such
    a great detail as in the article, assuming that
    they are still developing very intensively.
  • Nevertheless, there is a clearly visible -
    possible thanks to a corporate platform -
    tendency to connect everything with everything
    (multi-dimensional integration) in terms of
    transmissivity of the idea of interaction between
    various information systems on all presented
    development paths.

66
Thank you very much for your attention!
Witold Chmielarz Questions - vitec_at_post.pl
67
MANAGEMENT INFORMATION SYSTEMS Part
2CHARACTERISTICS AND FEATURES OF MIS
  • Prof. Witold Chmielarz, PhD ,
  • Oskar Szumski, PhD
  • Faculty of Management University of Warsaw

68
Characteristics and Features of MIS Towards
Knowledge Based Systems
69
Knowledge in MIS
70
LEARNING OBJECTIVES
  • Assess the role of knowledge management and
    knowledge management programs in business
  • Describe the types of systems used for
    enterprise-wide knowledge management and
    demonstrate how they provide value for
    organizations
  • Describe the major types of knowledge work
    systems and assess how they provide value for
    firms
  • Evaluate the business benefits of using
    intelligent techniques for knowledge management
  • Analyzing of the concept of knowledge management
    application

71
A brief content
  • Basic definitions
  • Intro to Knowledge Management (KM)
  • Approaches to KM
  • Problems with KM implementation

72
  • Management Information System refers to a
    collection of computerized and net technologies
    whose objective is to support managerial work and
    especially decision making
  • (Turban E., at al IT for Management ... 2008)

73
Some basis definitions
  • System group of elements integrated with common
    purpose of achieving an objective (...) by
    transforming input resources to output
    resources
  • Information system group of programs integrated
    in three areas programme, logical and technical
  • An application program a set of computer
    instructions written in a programming language,
    the purpose of which is to provide functionality
    to a user

74
Some basic definitions
  • Decision making a process of choosing among
    alternative courses of action for the purpose of
    attainings a goal or goals
  • What should be done?
  • When?
  • How?
  • Where?
  • By whom?

75
Intro to Knowledge Management (KM)
  • A process that helps organizations identify,
    select, organize, disseminate, and transfer
    important information and expertise that are part
    of the organizations memory and that typically
    reside within the organization in an unstructured
    manner
  • Creating of knowledge enables effective and
    efficient problem solving, dynamic learning,
    strategic planning and decision making
  • Focus on identyfing knowledge, explicating it in
    formal manner and exploiting by reuse,
  • For success of organization must be exchangable
    among persons, and able to grow
  • E.Turban et al. Information Technology for
    Management

76
Knowledge Management (KM)
  • Knowledge management Set of business processes
    developed in an organization to create, store,
    transfer, and apply knowledge
  • Knowledge management value chain each stage adds
    value to raw data and information as they are
    transformed into usable knowledge
  • Knowledge acquisition
  • Knowledge storage
  • Knowledge dissemination
  • Knowledge application
  • (Laudon, Laudon, Chapt 11)

77
  • Knowledge acquisition
  • Documenting tacit and explicit knowledge
  • Storing documents, reports, presentations, best
    practices
  • Unstructured documents (e.g., e-mails)
  • Developing online expert networks
  • Creating knowledge
  • Tracking data from TPS and external sources
  • (Laudon, Laudon, Chapt 11)

78
  • Knowledge storage
  • Databases
  • Document management systems
  • Role of management
  • Support development of planned knowledge storage
    systems
  • Encourage development of corporate-wide schemas
    for indexing documents
  • Reward employees for taking time to update and
    store documents properly
  • (Laudon, Laudon, Chapt 11)

79
  • Knowledge dissemination
  • Portals
  • Push e-mail reports
  • Search engines
  • Collaboration tools
  • A deluge (dissemination, too) of information?
  • Training programs, informal networks, and shared
    management experience help managers focus
    attention on important information
  • (Laudon, Laudon, Chapt 11)

80
  • Knowledge application
  • To provide return on investment, organizational
    knowledge must become systematic part of
    management decision making and become situated in
    decision-support systems
  • New business practices
  • New products and services
  • New markets
  • (Laudon, Laudon, Chapt 11)

81
The Knowledge Management Value Chain
Knowledge management today involves both
information systems activities and a host of
enabling management and organizational
activities.
82
New organizational roles and responsibilities
  • Chief knowledge officer executives
  • Dedicated staff / knowledge managers
  • Communities of practice (COPs)
  • Informal social networks of professionals and
    employees within and outside firm who have
    similar work-related activities and interests
  • Activities include education, online newsletters,
    sharing experiences and techniques
  • Facilitate reuse of knowledge, discussion
  • Reduce learning curves of new employees
  • Establish paths of carrier

83
Relations data information knowledge -
wisdom
  • Data are a collection of facts, measurements,
    and statistics
  • Information is organized or processed data that
    are timely and accurate (ready for use),
  • Knowledge is information that is contextual
    (connected with particular conditions), relevant
    (closely connected with situation) and actionable
    (supported by cases), shows how to use
    information and data under current, given,
    defined situation in effective, acceptable formal
    (visible knowledge) way,
  • Wisdom abbility to make sensible decisions and
    good advice because of the experience and
    knowledge, how to use knowledge and information
    in reasonable (optimal) way (hidden knowledge,
    too)

84
Wisdom Knowledge triangle
85
Charactristics of knowledge
  • Extraordinary and increasing results knowledge
    is not subject to diminishing results. When it is
    used, it is not consumed. Its consumers can add
    to it, thus increasing its value.
  • Fragmentation, leakage and need to refresh
    knowledge is dynamic, it is information in
    action. Thus an organization must continually
    refresh its knowledgebase to maintain it as a
    source of competitive advantage,
  • Uncertain value its difficult to estimate the
    impact of an investment in knowledge. There too
    many intengible aspects
  • Uncertain value of sharing its difficult to
    estimate the value of sharing knowledge, or even
    who will benefit most,
  • Rooted in time the utility and validity of
    knowledge may change with time.

86
Transforming information into knowledge
  • To transform information into knowledge, firm
    must expend additional resources to discover
    patterns, rules, and contexts where knowledge
    works
  • Wisdom Collective and individual experience of
    applying knowledge to solve problems - involves
    where, when, and how to apply knowledge
  • Knowing how to do things effectively and
    efficiently in ways other organizations cannot
    duplicate is primary source of profit and
    competitive advantage that cannot be purchased
    easily by competitors
  • (Laudon, Laudon, Chapt. 11)

87
Introduce the concept of organizational learning
(selflearning), which describes the process of
gathering, creating, and applying knowledge
  • Organizational learning
  • Process in which organizations learn
  • Gain experience through collection of data,
    measurement, trial and error, and feedback
  • Adjust behavior to reflect experience
  • Create new business processes
  • Change patterns of management decision making

88
Some additional definitions
  • Intellectual capital (or intellectusl assets)
    the valuable knowledge of employees, evolves with
    time and experience, which puts connections among
    new situations and events in context.
  • Tacit knowledge usually in the domain of
    subjective, cognitive and experimental learning
    (personal and difficult to formalize). The
    cumulative store of an experiences, expertise,
    know-how, trade secrets, skill sets, usually
    localized in the brain of individual
  • Explicit knowledge deals with more objective,
    rational, and technical knowledge (date,
    procedures, software, documents). Codyfied
    knowledge (documented) in the form can be
    distributed to others or transformed into process
    without interpersonal interaction (can leave
    person leaky knowledge)
  • Organizations now recognize the need too
    integrate explicit and tacit knowledge in formal
    information systems
  • (taken from Laudon, Laudon, Chapt. 11)

89
Important dimensions of knowledge
  • Knowledge is a firm asset
  • Intangible
  • Creation of knowledge from data, information,
    requires organizational resources
  • As it is shared, experiences network effects
  • Knowledge has different forms
  • May be explicit (documented) or tacit (residing
    in minds)
  • Know-how, craft, skill
  • How to follow procedure
  • Knowing why things happen (causality)
  • (taken from Laudon, Laudon, Chapt. 11)

90
Important dimensions of knowledge
  • Knowledge has a location
  • Cognitive event
  • Both social and individual
  • Sticky (hard to move), situated (enmeshed in
    firms culture), contextual (works only in
    certain situations)
  • Knowledge is situational
  • Conditional Knowing when to apply procedure
  • Contextual Knowing circumstances to use certain
    tool
  • (see Laudon, Laudon Dass, Chapt. 11)

91
Approaches to KM
  • Process approach attempts to codify
    organizational knowledge through formalized
    controls, processes and technologies, frequently
    involves the use of information technologies to
    enhance the quality and speed of knowledge
    creation and distribution in the organizations
  • Practice approach assumes that a great deal of
    organizational knowledge is tacit in nature and
    that formal controls, processes and technologies
    are not suitable for transmitting this type of
    understanding. The focus of this approach is to
    build the social environments or communities
    necessary to the sharing of tacit knowledge.
  • (see Laudon, Laudon, Chapt. 11)

92
Approaches to KM
  • Best practices the activities and methods that
    the most effective organizations use to operate
    and manage various functions. They include
  • A good idea that is not yet proven, but makes
    intuitive sense,
  • A good practice, an implemented technique,
    metodology, procedure, or process that has
    improved business results,
  • A local best practice, a best approach for all or
    a large part of the organization based on
    analysing hard data. The scope within
    organization of the best practice is identified
    can be used only in a single department or
    geographical region, or across the organization.
  • Hybrid approaches in reality involve both
    process and practice approaches.
  • (see Laudon, Laudon, Chapt. 11)

93
  • Three major types of knowledge management
    systems
  • Enterprise-wide knowledge management systems
  • General-purpose firm-wide efforts to collect,
    store, distribute, and apply digital content and
    knowledge
  • Knowledge work systems (KWS)
  • Specialized systems built for engineers,
    scientists, other knowledge workers charged with
    discovering and creating new knowledge
  • Intelligent techniques
  • Diverse group of techniques such as data mining
    used for various goals discovering knowledge,
    distilling knowledge, discovering optimal
    solutions

94
Major Types of Knowledge Management Systems
There are three major categories of knowledge
management systems, and each can be broken down
further into more specialized types of knowledge
management systems.
95
  • Three major types of knowledge in enterprise
  • Structured documents
  • Reports, presentations
  • Formal rules
  • Semistructured documents
  • E-mails, videos
  • Unstructured, tacit knowledge
  • 80 of an organizations business content is
    semistructured or unstructured

96
  • Enterprise-wide content management systems
  • Help capture, store, retrieve, distribute,
    preserve
  • Documents, reports, best practices
  • Semistructured knowledge (e-mails)
  • Bring in external sources
  • News feeds, research
  • Tools for communication and collaboration

97
An Enterprise Content Management System
An enterprise content management system has
capabilities for classifying, organizing, and
managing structured and semistructured knowledge
and making it available throughout the enterprise
98
  • Knowledge network systems
  • Provide online directory of corporate experts in
    well-defined knowledge domains
  • Use communication technologies to make it easy
    for employees to find appropriate expert in a
    company
  • May systematize solutions developed by experts
    and store them in knowledge database
  • Best-practices
  • Frequently asked questions (FAQ) repository

99
An Enterprise Knowledge Network System
A knowledge network maintains a database of firm
experts, as well as accepted solutions to known
problems, and then facilitates the communication
between employees looking for knowledge and
experts who have that knowledge. Solutions
created in this communication are then added to a
database of solutions in the form of FAQs, best
practices, or other documents.
100
  • Major knowledge management system vendors
    include powerful portal and collaboration
    technologies
  • Portal technologies Access to external
    information
  • News feeds, research
  • Access to internal knowledge resources
  • Collaboration tools
  • E-mail
  • Discussion groups
  • Blogs
  • Wikis
  • Social bookmarking

101
  • Learning management systems
  • Provide tools for management, delivery, tracking,
    and assessment of various types of employee
    learning and training
  • Support multiple modes of learning - CD-ROM,
    Web-based classes, online forums, live
    instruction, etc.
  • Automates selection and administration of courses
  • Assembles and delivers learning content
  • Measures learning effectiveness

102
  • Knowledge work systems
  • Systems for knowledge workers to help create new
    knowledge and ensure that knowledge is properly
    integrated into business
  • Knowledge workers
  • Researchers, designers, architects, scientists,
    and engineers who create knowledge and
    information for the organization
  • Three key roles
  • Keeping organization current in knowledge
  • Serving as internal consultants regarding their
    areas of expertise
  • Acting as change agents, evaluating, initiating,
    and promoting change projects

103
  • Requirements of knowledge work systems
  • Substantial computing power for graphics, complex
    calculations
  • Powerful graphics, and analytical tools
  • Communications and document management
    capabilities
  • Access to external databases
  • User-friendly interfaces
  • Optimized for tasks to be performed (design
    engineering, financial analysis)

104
Requirements of Knowledge Work Systems
Knowledge work systems require strong links to
external knowledge bases in addition to
specialized hardware and software.
105
  • Examples of knowledge work systems
  • CAD (computer-aided design) Automates creation
    and revision of engineering or architectural
    designs, using computers and sophisticated
    graphics software
  • Virtual reality systems Software and special
    hardware to simulate real-life environments
  • E.g. 3-D medical modeling for surgeons
  • VRML Specifications for interactive, 3D modeling
    over Internet
  • Investment workstations Streamline investment
    process and consolidate internal, external data
    for brokers, traders, portfolio managers

106
  • Intelligent techniques Used to capture
    individual and collective knowledge and to extend
    knowledge base
  • To capture tacit knowledge Expert systems,
    case-based reasoning, fuzzy logic
  • Knowledge discovery Neural networks and data
    mining
  • Generating solutions to complex problems Genetic
    algorithms
  • Automating tasks Intelligent agents
  • Artificial intelligence (AI) technology
    computer-based systems that emulate human behavior

107
Management Information Systems characteristics
and features
108
Transactional Systems Processing (TSP)
  • Definition
  • Transaction Processing Systems (TSP) - perform
    the frequent routine external and internal
    transactions that serve the operational level of
    organisation
  • An information system that processes an
    organizations basic business transactions such
    as purchasing, billing and payroll
  • Previously based on batch processing where
    processes inputs at fixed intervals as a file and
    operates on it all at once interactive
    processing operates on a transaction as soon as
    it occurs

109
Transactional Systems Processing (TSP)
  • Data processing manipulation or transformation
    numbers and letters for the purpose of increasing
    their usefulness
  • data gathering,
  • data manipulation
  • classifying,
  • sorting,
  • selecting etc).
  • TSP, D(data) PS or A(analytic)IS the first
    single simple systems made mainly for gathering
    and processing data not for decision making,
    operating separately in the frames of the firm
    in the beginning often without common database

110
Transactional Systems Processing (TSP)
  • System tended to grow independently, and not
    according to some grand plan.
  • Each functional area tended to develop systems in
    an isolation from other functional areas.
  • Accounting, finance, manufacturing, human
    resources, and marketing all developed their own
    systems and data files.
  • Each application, of course, required its own
    files and its own computer program to operate.
  • For example, the human resources functional area
    might have a personnel master file, a payroll
    file, a medical insurance file, a pension file
    and so forth until tens, perhaps hundreds, of
    files and programs existed.
  • In the company as a whole, this process led to
    multiple master file created, maintained, and
    operated by separate divisions or departments.

111
Transactional Systems Processing (TSP)
  • These were undoubtedly the first attempts of
    creating a tool which indirectly could be used to
    support business management.
  • The basic advantage of such a tool was the speed
    of performing simple, standard large-scale
    operations.
  • The basic problem which occurred then was the low
    level of technological development, which caused
    the fact that processing, before it could take
    place, entailed a number of complicated steps and
    procedures connected with the imperfection of the
    existing hardware and software.
  • Additionally, this process was accompanied by
    considerable costs. The lack of reliability and
    failure rate reached in total 80 of the total
    working time of such a machine.
  • Designing and processing of the program which
    operated on the data which were entered in the
    computers memory data was very complex.

112
Transactional Systems Processing (TSP)
  • The limitations were numerous
  • the problem connected with entering the programme
    and the data to be processed by the computer,
  • processing of the data and saving the results,
  • distribution of the results among the engaged
    individuals etc. (processing speed, memory
    capacity, problems with design and construction
    of software, etc.).
  • Each of the constructed systems was separate,
    which sometimes resulted in entering the same
    data within an organization in a multiple way and
    frequently in different formats.
  • Other difficulties were using unreliable input
    media with the long-term processing and
    separating the user from processing the data on a
    computer which he could only prepare.
  • The systems were effective in the case of mass
    numerical calculations whose findings were
    interpreted manually. Their usefulness in
    supporting management was reduced to speeding up
    numerical calculations.

113
Transactional Systems Processing (TSP) -
summarizing
  • Transaction processing systems
  • Perform and record daily routine transactions
    necessary to conduct business (examples sales
    order entry, payroll, shipping)
  • Allow managers to monitor status of operations
    and relations with external environment
  • Serve operational levels
  • Serve predefined, structured goals and decision
    making

114
Transactional Systems Processing (TSP) -
contemporary definition and interpretation as a
part of ERP
  • Definition a Transactional Processing system
    (TPS) supports the monitoring, collection,
    storage, processing, and dissemination of the
    organizations basic business transactions.
  • It also provides the input data for other
    information systems. Sometimes several TPSs exist
    in one company.
  • TPSs are considered critical to the success of
    the organization since they support core
    operations, such as purchasing of materials,
    billing customers, preparing a payroll and
    shipping goods to customers.
  • Examples in retail stores, data flows from POS
    (point-of-sale) terminals to a database where
    they are aggregated.
  • When a sale is completed, an information
    transaction reduces the level of inventory on
    hand, and the collected revenue from the sale
    increases the companys cash position.
  • Now this is very similar now to a part of MIS
    category

115
A Payroll TPS
A TPS for payroll processing captures employee
payment transaction data (such as a time card).
System outputs include online and hard-copy
reports for management and employee paychecks.
116
How Management Information Systems Obtain Their
Data from the Organizations TPS
In the system illustrated by this diagram, three
TPS supply summarized transaction data to the MIS
reporting system at the end of the time period.
Managers gain access to the organizational data
through the MIS, which provides them with the
appropriate reports.
117
Management Information Systems
  • Management Information Systems from the very
    beginning of their existence were designed for
    record keeping of past and current routine
    information for planning, organizing and
    controlling operations in functional areas of a
    businesss activities.
  • Management Information Systems are defined by R.
    M. Stair as ... an organized collection of
    people, processing procedures, databases, and
    applications used to provide standardized
    information for managers and decision makers ...
  • According to E.Turban "... Management Information
    System is a formal, computer system, created in
    order to ensure a selection and integration of
    distributed information from various sources to
    provide timely data needed for decision making in
    management. They are the most effective in
    routine, structured systems, where there are
    predictable types of decisions ...
  • These systems have had so far the greatest
    influence on the formation of management
    information systems.

118
Management Information Systems
  • The basic logical architecture structure of MIS
    consisted of
  • end-user with interface - the collection of
    programmes, usually of an operation system,
    responsible for communication with a user, which
    imposes certain standards of perception and use
    of other software,
  • databases with the database management system
    collection of data stored according to certain
    organizational principles, interrelated, linked
    by certain defined dependencies, stored in a
    strictly defined way in the structures
    corresponding to a certain assumed data model.
  • the software which helps to define, construct,
    manipulate and share database for applications
    and users is called a database management system.
  • an additional element of the software may be a
    query language facilitating the communication
    with a database in terms of accepting queries,
    its formalization and making its result available
    to the decision-maker,
  • applications subsystems, application software
    consisting of a collection of instructions, whose
    task is to provide a user with a defined
    functionality (financial and accounting
    subsystem, warehouse subsystem, production
    control subsystem, etc.).

119
The main elements of MIS some definitions
  • A database (DB) is a collectionof files serving
    as a data resource for computer based information
    systems (MIS),
  • A batabase management system (DBMS) is a software
    program (or group of programs) that managesand
    provides access to a database
  • Data warehouse is a repository of historical
    data (millions of records), subject oriented and
    organized, integrated from various sources, that
    can easily be accessed and manipulated for
    decision support for example by data mining
    process of searching for unknown information or
    relationships in large databases using tools as
    neura
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