Management Information

Systems

By: R.A.R.G. Ranaweera

BSc (Industrial Management)

In early stages .
Bata system existed
Isolates personal affairs
which either needed no or
less information
No physical organizations
exist
Less technology was used
Market place was smaller
in size such as villages

Later..
Industrial revolution
Happened in Western
Europe from 18th
century to early 19th
century
Centralized
production in to a
institute called
factory
Initiated the
movement of
replacing man by
machines

2nd World War & Transistors

Identified the need of data security
through spreading information than
keeping all the eggs in one basket
Invention of transistors provided the
platform to first Information Systems
and networks
Arises a new field of study as
Managing Information systems

Modern situation
..
Knowledge based organizations
Timely information become the key
to success
Organizations spread out their
territories world wide

Head Quarters
at Atlanta

Row material
from South
America

Preparation in
Western province,
Sri Lanka

Sell every ware

in Sri Lanka

Business environment
Changed from
Simple to complex
Calm to turbulence
Isolated to globalize

Demand of the day is the quick, most

recent and highly correct information

Evaluation of Management
concepts
Traditional Approach (Produce
enough to consume)
Scientific approach
Management Science
Quality era (JIT, TQM)
Knowledge organizations
High performance work systems

TQM / JIT
Aims at preventing defects or
minimizing waste by forecasting future
operations and situations in advance
to take preventive actions today.
Develop a process that deliver right
goods, at right time at right place in
right quantity and nothing more.

High performance work

systems
Team based
structure

Employee
empowerment

Unlimited
information

System
Set of detailed methods, procedures,
and routines established or formulated
to carry out a specific activity, perform
a duty, solve a problem or achieve a
specific objective.

Inputs
Feed

Organized
transformation
process

Out put
(To obtain the
common
goals)

Function and Environment of a

system

Types of Systems
composition)

(based on

Physical systems
Ex / Galaxy
Biological systems
Ex / human body
Technical systems
Ex / Computer network, oil refinery
Socio economic systems
Ex / Business organizations

Types of Systems

(based on

attributes)

Open system
Can interact with the parties outside the
boundary

Closed system
Totally isolated from its environment

Semi Closed systems

Interacts with the environment in an
controlled manner
Have interfaces to communicate with the
environment
Can control the effects of the environment

 Adaptive systems
Systems which can change itself in order
to survive

Feed back control system

Part of the out put returns as feed back
to improve the input

Dynamic system
A system which can react to the
stimulations from the environment

Static systems
A system which do not accept input or
produce anything

Data => Information

Data
Stream of row facts representing events
occurring in the environment or
recorded facts and figures

Information
Data that are shaped in to a form that is
meaningful and useful to human beings

Characteristics of good
information
Pertinent relevant
Timely
Accurate
Reduce uncertainty
Element of surprise (should be new to the
users)

Information Systems
An organized combination of human
ware, hardware, software,
communication networks and data
resources that collects, transforms and
disseminate information in an
organization to support decision
making, coordination, control, analysis
and visualization in an organization.
* All information systems are purposive.
(seeks set of related goals)

The fundamental rolls of IS

Support business operations
Support decision making
Support creating a competitive
advantage

Development of IS

Information system is more

than computers

Interdependency between IS
an the Organization

Machine

Hardware

Software

Bridg
e

Data

Human

Procedur
es
Instructions
Actors

People

Contemporary approaches to
IS
Technical Approach

Emphasizes mathematically based models

to study information systems, physical
technology and formal capability.

Behavioral Approach
Concerned with behavioral issues that arise
in the development and long term
maintenance of Information systems such
as strategic business integration, design,
etc.

Technical
Approache
s

Compute
r Science

Manageme
nt Science

Psycholog
y

Operatio
ns
Research

MIS

Economic
s

Behavioral
Approache
s

Sociology

Socio technical Approach

Try to understand and define the
systems with a mix of technical as well
as a behavioral approaches to identify
the optimal that satisfy both
Ex / At the moment Information
technology is rapidly decline in cost and
growing in power. But it not necessarily or
easily translate in to productivity or
bottom line profit

Technology
Alternate 01

Organization
(Behavioral)
1
Alternate 01

Alternate 02

2
3

Alternate 02

Final Design Final Design

Of
Of
Technology Organization

The option which gives the maximum combined

benefit of all alternatives (Optimal Solution)

Factors contributing to
effective IS implementation
Organizational Assets
Supportive organizational culture
valuing efficiency and effectiveness
Efficient business processes
Decentralized authority
Distributed decision-making rights
Strong IS development team

 Managerial Assets
Strong senior management support for
technology investment and change
Incentives for management innovation
Teamwork and collaborative work
environments
Management training programs
Management culture valuing flexibility
and knowledge-based decision making

 Social Assets
The Internet and telecommunication
infrastructure
IT-enriched educational programs
Governmental and private-sector
standards
Laws and regulations creating fair, stable
market environments
Technology and service firms in adjacent
markets to assist implementation

Ultimate IS
Internet
International network of network
Universal technology platform: Any
computer can communicate with any
other computer
World Wide Web and Web sites

 What You Can Do on the Internet

Communicate and collaborate
Access information
Participate in discussions
Supply information
Find entertainment
Exchange business transactions

e - Commerce
buying and selling of products or services
over electronic systems such as the
Internet and other computer networks.
Electronic funds transfer
Supply chain management
Internet marketing
Online transaction processing
Electronic data interchange (EDI)
Inventory management systems

e Business
Utilization of information and
communication technologies (ICT) in
support of all the activities of
business.

Characteristics of Digital
firms
Flattening organizations
Separating work from location
Reorganizing workflows
Increasing flexibility
Redefining organizational boundaries

Positive outcomes of IS
Faster calculations and paperwork
Analysis of customer purchase
patterns and preferences
More efficient business services
Medical advances
Instant global distribution of
information

Negative outcomes of IS

Automation leading to job elimination

Privacy concerns
System outages and shutdowns
Health problems, repetitive stress
injury
Illegal distribution of intellectual
property

Case Study 01