Ethiopian Defence University College of Resource Management O << Management Department eo 2g G > go’ Instructor Information Name: Berhe G. Office Location: Research and Community Service Phone NO.: +251-967-261091 Email: [email protected]e Management Information System Course Name: Management Information System Course code: MGMT-3092 Credit Hours: 3 _ * Chapter One: Introduction toMIS * Chapter Two: Founda * Chapter Three: Informa + Chapter Four: Common Business Application of Information Technology ‘oncepts in MIS. ion Technology + Chapter Five: Knowledge Managemente Management Information System Chapter One @ we INTRODUCTION TO Mis Content & 11, Definition and Importance efits 1.2. Subsystems of MIS ee 1.3. Contemporary Approaches to MIS 1.4. The Evolution and Characteristics of Information Age 1.5. What Is Information Technology? et QD ¢eS Management Information System Chapter Two e Foundational Concept in MIS Content & 5 2.1 Introduction & 2.2 Business and Management Functions 2.3 Data, Information, Knowledge and Wisdom 2.4 The Information Needsand Sources of Managers 2.5 A Framework for Infofmation Systems 2.6 Business Systemso” 2.6.1. e-business ?eS Management Information System Chapter Three @ a Information Technology> Content & » < 3. Introduction 3.2 Hardware: Computing, Storing and communicating 3.3 Programs: In Charge of thet lardware 3.4 People: The Most Important Element 3.5 Procedures: The Wa’ Goes 3.6 Information: The Reasons for Using Information Technology 3.7 Communication Technologies 3.8 Database Management (DBM)eS Management Information System Chapter Four Rs Common Business Applications of Informsition Technology Content 3s * 4.1 Financial Information Systems & 4.2 Marketing Information Syst: 4.3 Manufacturing and Prod; n. Information Systems 4.4 Human Resource Information Systems 4.5 Managerial Decision n Support Systems 4.6. Transaction Processing System (TPS) ?e Management Information System | Chapter Five Knowledge Management: Content 5.1. Introduction to knowledge management 5.2. The theory of knowledge management 5.3. KM sharing 5.4. Technologies to support KM. 5.5. KM application in organizationse Management Information System Chapter One @ we INTRODUCTION TO Mis Content & 11, Definition and Importance efits 1.2. Subsystems of MIS ee 1.3. Contemporary Approaches to MIS 1.4. The Evolution and Characteristics of Information Age 1.5. What Is Information Technology? et QD ¢e Introduction to MIS + Management Information Systems (MIS), referred to as Information Management and Systems, is the discipline covering the application of people, technologies, and procedures collectively called Gnformation systems, to solving business problems. + “'MIS' is a planned system of collecting, storing and disseminating data in the form of information needed to carry out the functions of management.” + Academically, the term is commonly used to refer to the group of information management methods tied to,fhe automation or support of human decision making, + Example: Decision Support Systems, Expert Systems, and Executive Information Systems.e Introduction to MIS Management Information System (M.LS.) is basically concerned with processing data into information. which is then communicated to the various Departments in an organization for appropriate decision-making. Data }+[Information }+[Communication |+[Decision Data collection involves the use of Information Technology (IT) comprising: Computers and telecommunications networks (E-Mail, Voice Mail, Internet, telephone, etc.) Computers are important for shore quantitative, than qualitative, data collection, storage and retrieval; Special features are speed and accuracy, and storage of large amount of data. Telecommunications“provide the means for one-way or two-way communication and for the transmission of messages. + A-combination of IT is used: telephone, computer, processor, printer, etc. * A lot of time & money are saved and the security of data & messages is ensured.Introduction to MIS An MIS is a system that provides managers with the necessary information to make decisions about an organization's operations. The MIS gathers data from various sources and processes it to provide information tailored to the managers’ and their staff's needs, While businesses use different types’of systems, they all share one common goal: to provide managers with the information to make better decisions. In today's fast-paced business environment, having access to accurate and timely information is critical for success. MIS allows managers to track performance indicators, identify trends, and make informed decisions about where to allocate resources.' Introduction to MIS + The 3 components of MIS provide a more complete and focused definition, 1. Management: It is the ultimate user, the decision makers.” * Management covers the planning, control, andadministration of the operations of a concern. The top management hifidles planning; the middle management concentrates on controlling; andthe lower management is concerned with actual administration. > 2, Information: it stands for processed data + Information, in MIS, means the processed data that helps the management in planning, controlling and operatiohs. + Data means all the facts arising out of the operations of the concern. + Data is processed i.e. recorded; summarized, compared and finally presented to the management in the form of MIS report. 3. System: It suggests integration and holistic view * Data is processed into information with the help of a system. * Asystem is mg OP of inputs, processing, output and feedback or control. * Thus MIS means a system for processing data in order to give proper information to the management for performing its functions. MIS= Management by Information' Introduction to MIS MIS is a computer based information system which is basically concerned with processing @ data into information which is then communicated to the vatjous departments in an organization to support the operations, the management and thecision making function in the organization. ax S Definition of MIS < * MIS broadly refers to a computer based systet that provides managers with the tools to organize, evaluate and efficiently manage departments within an organization. rganize y Rone P ‘ganize (Subhalakshmi Joshi) 2 Management is the effective utilization of human and material resources to achieve the S enterprise objective. It is a pfocess consisting of the five basic functions: Planning, Organizing, Staffing , directing and Controlling Information: information), in MIS , means the processed data that helps the management in planning, controlling and operations. + Data means unstructured raw facts, observations or unevaluted messages in isolation, data involves facts and figures. Information on the other hand is like a finished product.Data vs Information ‘SMOO3 North POO1 475 ‘Salesman Code Zone Item Code Sales SMO02 East POO2 500 smoo1 North 1 ‘475 . > | smooz East S00 a Data Processing infor ion + System: Ss < + An system is an orderly grouping of See elect eee ere one inert cert Recreate renter center neice saree te ete ere eee eee eee eee earner eee eter eee nee tes eee eee eee Both technical and beheyie People and organizations change to take advantage of new information technology change@ .4 1 The Evaluation and Characteristics of the Information Age Table 1.4 The Evolution of the Information Age od Q@ Agriculture Age |Industrial Agegs a Age Time period Pre-1800s 18008 to 1 1957 to present Majority of workers | Farmers Factory en Knowledge workers Partnership People and land |Péeple and People and people |machines Principal tool Hand tools © _|Machines Information Technology oe.2. The Characteristics of the information Age + The information age is distinguished from previous ages on the basis of five characteristics. CF 1 The Information Age came about with the riseSS¥ an information based society. S Businesses in the Information Age depend'ba information technology to get their work done. ~ In the Information Age, work prfioes are transformed to increase productivity. Success in the Information’ Age is largely determined by the effectiveness with which information technology is used. In the Information Ageyjinformation technology is embedded in many products and services,> G s }1.4 What is Information Technology? + The term Information technology refers to whole variety of items and abilities used in the creation, storage, and dispersal of information. + Icis important to distinguish between data, informal 1. Data are simply raw facts, figures, and details? 2 Information is an organized, meaningful, aid useful interpretation of data. cS > 3. Knowledge is an awareness and understanding of a set of information in, and knowledge . and how that information can beput to the best use. + Simple examples will clarity theseCdifferences. At a retail store, a specific customer's order contains raw data identifying the customer, the item(s) and quantity purchased, and the price. At the end of the business period, the details of all orders areassembled, summarized, and compared with expectations. The resulting information tells the store’s managers that performance is bett: OF worse than expected. * This information may be combined with another set of information to create the knowledge that some customers are going elsewhere because of a competitor's new low price program. This knowledge may cause the store’s managers to the role of good information in improving performance.* 1.4 What is Information Technology * Information Technology is divided into three primary components: 1. Computers, 2, Communications networks and 3. Know-how + The ways in which these elements are combined create opportunities for people and organizations to be productive, effective, and generally successful. é Co \ o 9 1. Computers: a computer is any electronic system that can be instructed to accept, process, store and present dataand information. * The computer includes hardware,software and information. * The computer has become a past of the day-to-day existence of people around the globe. It is difficult to think of any field that does not involve or is not affected by computers. * Computers come in for'different sizes: 1. Microco: ters, 2, Midrange/minicomputers, 3. Mainframes, and 4. Supercomputers.Graham Bell in 1876 did a great deal to foster communication between people. Today, you can call someone virtually anywliere in the world. An integral part of information technology is the ability to communicate: to send and receive data and information over a communications network. A communication network is the interconiection of stations at different locations through a medium that enables people to send and receive data and information. Telephone wires and cables are common communications media. Data communication is the tratismission of data and information over a communication medium. Communications networks are revolutionizing both personal life and products and services of business. + For instance, airlines use communications network to connect with each other, sharing information on passenger reservations, meal requirements, and baggage handling,Know How: Although computers and the data communications are very important parts of information technology, an eae par of IT is the ability to draw on the power of IT to solve problems and to take advantage of the opportunities it creates. Information cechnology, therefore, implies a need for know-how, know how to do something well. + Know how includes: © + Familiarity with the cot IT; + The skills needed cont these tools; . Uadenadng in to use IT to solve a problem or capitalize on an opperenitys> The benefits of seo Technology Computers and communication systems collectively offer four benefits to users: speed, consistency, precision, and reliability.e 1.5 The Principle of Information Technology + A principle is a fundamental rule, guideline, or motivating idea that, when applied, produces a desirable result rather than focusing on a particular situation or set of facts, principles prepare you to deal with the wide variety of situations (problems and opportunities) that you will encounter everyday. + The most important principle of information®\technology describes the purpose of IT: The purpose of information technology is to solve problems, to unlock creativity and to make people more effective than they would be if they did not involve IT in their activities. * An equally important principle of> information technology, the more important it is to consider the “hightouch “. + It says: the more you rely‘én advanced technology, like information technology, the more important it is to consider the “high-touch” aspects of the matter --- that isthe people side.” + A related principle’ stresses that: we should always fit information technology to people, rather than ask people to adjust to information technology. These principles suggest that the more we rely on IT, whether in personal activities or in business, the more important it is to be sure that the personal element is not forgotten.e 1.5.1. The Functions of MIS or IT + MIS or IT performs six information handling functions: Capture, Processing, Generation, Storage, and Retrieval, and Transmission or dissemination. 1. Data Capturing : MIS capture data from variou$ internal and external sources of organization. Data capturing may be maiual or through computer terminals. Processing of Data : The captured data is processed to convert into required information. Processing of data is doné*by such activities as calculating, sorting, classifying, and summarizing. 3. Storage of Information : MIS stores the processed or unprocessed data for future use. If any information iS not immediately required, it is saved as an organization record, for later use. Retrieval of Information : MIS retrieves information from its stores as and when required by various users. 5. Dissemination of Information : Information, which is a finished product of MIS, is disseminated to the users in the organization, It is periodic or online through computer terminal or using the organizational network.An effective MIS has the following objectives; Facilitate the decision - making process by furnishing information in the proper time frame. This helps the decision ~ maker ta’s¢lect the best course of action. = Provide requisite information at each level of snaageren to carry out their functions. Help in highlighting the critical factor o the closely monitored for successful functioning of the organiza Support decision-making in both structured and unstructured problem environments. RS Provide a system of people,Ccomputers, procedures, interactive query facilities, documents for collecting, sorting, retrieving and transmitting information to the users,' Characteristics of Computerized MIS Following are the characteristics of a well-designed computerized MIS - + It should be able to process data accurately and with high speed, using various techniques like operations research, simulation, heuristics, etc. + It should be able to collect, organize, manipulate, and update large amount of raw data of both related and unrelated natute, coming from various internal and external sources at different peridds of time. + It should provide real time information‘on ongoing events without any delay. OC + It should support various outputformats and follow latest rules and regulations in practice. 7 + It should provide organizedyand relevant information for all levels of management: strategic, operational, and tactical. ibility in data storage and retrieval. * It should aim at extreme