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
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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.

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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

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Module Assessment

• 30 Continuous Assessment
• 70 End of Module Exam

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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.

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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)

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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

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MIS Components
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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

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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.

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Airline Dashboard System
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Traditional / Classical Organisation
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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

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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

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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

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Modern Organisation structure
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New structure - Decentralised
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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 -

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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

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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

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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
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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