MIS 5003 MANAGEMENT INFORMATION SYSTEMS Dr Carol Saunders

MIS 5003 MANAGEMENT INFORMATION SYSTEMS Dr. Carol Saunders

Information Systems: Objectives zdefine: information system, data, information, batch processing, on-line processing, transaction zdistinguish between information, data and knowledge zdiscuss the components and benefits of an information system zdiscuss the productivity paradox zdiscuss the characteristics of information across hierarchical levels

Definition: Information System za computerized system that processes data and produces information (SSC) za collection of components that collects, processes, stores, and disseminates information for a specific purpose za computer system designed to accomplish business objectives (IS Primer, Part I)

Schematic View of an Information System Inputs Business Problems Data Information Instructions Opportunities Processing Programs People Equipment Storage Outputs Solutions: Reports Graphics Calculations Voices Tactics Control People Reports Decision makers Feedback

Components of IS and Definition of System z. System: A group of parts or components working together to accomplish a goal z. Components of IS: Data Hardware Software Trained personnel Procedures

Computer Hardware within an Information System

Benefits of IS z. Types y. Distribution (information) y. Efficiency y. Automation z. Arise from changes in work tasks, procedures and arrangements not just from technology z. Potential vs. Actual

Why the Benefits of IT are Not Achieved z. Lack of knowledge about IT and IT management z. Incompatible hardware and software z. Inefficiencies in work processes z. Incompatible organizational cultures and climates IT Productivity Paradox

IT Productivity Paradox z. Over $1 trillion dollars spent on computer and communication technologies since 1980 z. Systematic relationship to financial performance? z. People make the difference z. Managers need to know how to manage and use information

Data vs. Information vs. Knowledge z. Data - Facts z. Information - Data in a context z. Knowledge - Information from the human mind; the sum of what is known

Information z. Adds to knowledge z. Has surprise value z. Reduces uncertainty z. Leads to action z. Changes a decision z. Relevant z. Varies by function and level of management z. Needs consensus on meaning

Information Characteristics across Levels

Information Today z. Costly to produce by cheap to reproduce z. One the first copy of information good has been produced, most costs are sunk and can’t be recovered z. Multiple copies can be produced at roughly constant per unit costs (especially when separating economics of things from economics of information) z. There are no natural capacity limits for additional copies

Information z. Price based on value to consumer, not the production costs z. BUT yvalue varies yhow do you know value before you have experienced it?

Transaction Processing Systems z. Transaction - Basic business event, act or process z. TPS ybackbone of an org’s information systems ycapture data on “business events” ystore these data in databases yuse data to efficiently handle day-to-day business operations yprovide information needed by law ymay be complex

Transaction Processing Terms z. Batch processing - transactions are collected as they occur and placed in groups or batches to be processed periodically z. On-line processing - data are processed as soon as transaction occurs