Technical University of Mombasa

TOPIC THREE: APPROACHES TO INFORMATION SYSTEMS.

1. Session Objectives
By the end of this session, you should be able to:
 Understand the different approaches and dimensions of information systems.
 Outline the strategic business objective of an information system
 Describe the information technology infrastructure
 Explain the different Categories of Management information systems.
 Understand the critical issues of information systems and Emerging trends
and future directions.

2. Approaches to information systems.
The study of Information systems is multidisciplinary. The field can be view through
Technical and Behaviourial approaches. They are composed of devices, machines,
physical technology, and require social, organizational, and intellectual
investments.to make them work properly.

A) Technical approach
Technical approach emphasizes mathematically-based models to study information
systems, physical technology and formal capabilities of these systems e.g. computer
science, management science and operations research.

Computer science is concerned with establishing theories of computability, method

of computation, and method of efficient data storage and access.
Management science is concerned with the development of models for decision
making and management practices.
Operations Research is concerned with optimizing the selected parameters within
an organization e.g. Transport, inventory control and transaction costs.

B) Behavourial approach
Behavioral approach focuses on changes in attitude, management and organizational
policy and behavior.
Sociology is concerned with how groups or individuals shape the development of
information systems and how systems affect individuals, groups and organization.
Psychology is concerned with how human decision makers perceive and use formal
information

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Economics is concerned with the study of understanding the production of digital
goods, dynamics of the digital markets, how new information systems change the
control and cost structures within the firm.

NB: The study of Management information systems arose to focus on the use of
computer-based information systems in business firms and agencies.
MIS combines the work of computer science, management science, and operations
research with a practical orientation toward developing system solution to real
world problems and managing information technology resources. It is also
concerned with the issues on development, use, impacts of information system
within an organization.

3. Dimensions of Information Systems.

A) Organizations
Organizations – Stable formal social structure that takes resources from the
environment and process them to produce Output.
Organizations have structures (Hierarchy, Division of labor, Rules and Procedures,
Business Process and culture). In the pyramid structure various levels within
organization include;
i) Senior management make long-range strategic decision about products and
services and ensure financial performance of the business.
ii) Middle management carries out plans and programs for senior management
iii) Operations management monitors daily activities of the business.
iv) Knowledge workers (engineers, architects) design products and services and
create new knowledge for the firm
v) Data workers (secretaries, clerks) schedule work and communication in all levels
v) Production and Service workers produce the product and deliver services.

B) Management
 Management makes decisions, formulate action plans to resolve
organizational problems.
 They set organizational strategies to deal with challenges.
 Allocate financial and human resources to coordinate work
 Create new products and services
 Recreate organization from time to time.
Importance of information Systems to Management.
Help managers achieve;

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 i) Increase market share
ii) Become high quality, low cost producer
iii) Develop new products and services
iv) Increase employee productivity.

C) Information Technology.
i) Computer Hardware – physical equipment used for input, processing and
ouput activities in an information system. Includes various input, ouput,
storage devices as well telecommunication devices that link computers
together.
ii) Computer Software – Detailed and programmed instructions that control and
coordinate the computer hardware components in and information system.
iii) Data management Technology – Software governing organization of data on
physical storage media.
iv) Networking and telecommunication technology – Physical devices and
software that links various pieces of hardware and transfers data from one
physical location to another.

Information Technology Infrastructure.

 Computers and communication equipment can be connected in networks for
sharing voice, data, images, videos and sound.
 Network – links two or more computers to share data and other resources
such as printer.
 Internet – Global network of networks that uses universal standards to
connect millions of people worldwide. Internet has created new universal
technology platform on which to build new products, service, business
models.
 Intranet – Internal corporate networks based on internet technology.
 Extranet – Private intranets extended to external users. E.g. The use of TUI
Destimo portal to download bookings.
 World Wide Web – Services provided by the internet that uses universally
accepted standards to store, retrieve, format and display information in a
page format on the internet.
 All these technologies alongside people who run and manage them constitute
information infrastructure technology. IT infrastructure provide platform on
which firms can build its specific information systems.

1.3 Strategic Business Objectives of Information Systems

The goals of an MIS are to implement the organizational structure and dynamics of
the enterprise for the purpose of managing the organization in a better way and
capturing the potential of the information system for competitive advantage.
Why invest in Information Systems and Technology?

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 i) Operational excellence – Enable managers to achieve high efficiency and
business operations.
ii) New products, Services and Business modes – Information Systems and
Technologies enable firms to create new products and services.
Business model describes how a company produces, delivers, sells a
product/services to create wealth.
iii) Customer and Supplier intimacy – Information systems enables a hotel to
know preference or its regular customer through a database.
iv) Improved Decision making – Managers use real-time data to make
decisions. Digital guest feedback system can help managers to monitor
guest complaints.
v) Competitive advantage – Charging less for superior product, responding
to customers and suppliers in real time,
vi) Survival – Firms turn to information systems to respond to new demand

1.4 Categories (Levels) of Management information systems.

Based on Anthony's classification of Management, information used in business for
decision-making is generally categorized into three Managerial levels −
 Strategic Information − Strategic information is concerned with long term
policy decisions that defines the objectives of a business and checks how well
these objectives are met. Decisions tend to be unstructured and made
infrequently. Decisions made have large impact on the organization and
cannot be reversed easily. For example, acquiring a new plant, a new product,
diversification of business, choice of new market etc., comes under strategic
information. These are decisions made by senior management which
considers financial performance as well.
 Tactical Information − Tactical information is concerned with the information
needed for exercising control over business resources, like budgeting, quality
control, service level, inventory level, productivity level etc. Decision taken are
used to set medium term goals that form stages leading to meeting strategic
objectives. Middle level managers carry out programs and plans for senior
management
 Operational Information − Operational information is concerned with
plant/business level information and is used to ensure proper conduction of
specific operational tasks as planned/intended. Various operator specific,
machine specific and shift specific jobs for quality control checks comes under
this category. At operational level, managers deal with short term planning
and day to day control of activities. Decisions are highly structured. At this
level includes production and service workers, knowledge workers
(engineers, scientists e.t.c who design products/services)

1.5 Critical issues of information systems and Emerging trends and

future directions.
There are changing trends in Management Information System; continuous changes
in IT, business process as well management concepts. They include;

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i) IT Innovations – Growth of cloud computing, digital business platform, use of
social networks develop new business models, transform business process and
create new products and services.
ii) New Business models – All-Inclusive concepts in Hotels and the use of POS.
Online video services for streaming and downloading such as Netflix, Amazon,
Apple TV channels. People are unplugging TV cables and using only internet for
entertainment.
iii) E-commerce expansion- Ability to make bookings via Booking portals. New face
of E-commerce include Facebook, Twitter. This has been spurred by growth of
mobile platforms.
iv) Management Changes – Managers have instant access to information because of
online platforms, property management systems. Blogs have become corporate tool
for communication, collaboration and information sharing. Use of Influencers to
market online.
v) Changes in Firms and organizations. – Employees taking multiple roles and tasks
and collaborating with others within the teams due to reduced emphasis on
structures and hierarchy. Receptionist is able to make a booking through Whatsapp
chat.
vi)Emerging digital firm. Digital firm is an organization whose nearly all its
significant business relationships with customers, suppliers and employees are
digitally enabled and mediated. Core business processes are accomplished through
digital networks.

Business processes refer to set of logically related tasks and behaviours that an
organization develop over time to produce specific results. The tasks and activities
are organized and coordinated in a unique manner.

Advantages of Digital firm

i) Time shifting - Business are conducted continuously 24/7 rather than the
traditional ‘work day’ time band (09.00 – 5.00pm)
ii) Space shifting – Work takes place in global workshop as well as within
national boundaries.

1.6 Qualities of a good information System.

Student activity: Make notes.

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