Computer Based Information Systems-Management Information System-Lecture Notes, Study notes of Management Information Systems

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Management Information

Systems Notes

Lecture 2

September 2005

Introduction to the Computer-Based

Information System

INFORMATION MANAGEMENT

Five Main Resources:

A manager is required to manage five main types of resources effectively:

• Personnel
• Material
• Machines (including facilities and energy)
• Money
• Information (including data)

INTEREST IN INFORMATION MANAGEMENT

1. Increasing complexity of business activity

• International economy Firms of all sizes are subject to economic influences that can originate anywhere in the world. Such influences can be seen in the relative values of the currencies of each nation, where purchases are made in those countries with the highest currency value.
• Worldwide competition Competition exists on a worldwide scale. Its effects can be seen in the imports from foreign countries.
• Increasing complexity of technology Technology is used everywhere in business. Examples are bar code scanners, computer based airline reservation systems, automated teller machines, factory robots ..etc.
• Shrinking time frames All phases of business operations are performed more rapidly than ever

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Physical

Conceptual

Management Levels

Strategic Planning Level The strategic planning level involves mangers at the top of the organizational hierarchy. The term strategic indicates the long-term impact of top managers’ decisions on the entire organization. The term executive is often used to describe a manager on the strategic planning level.

Management Control Level Middle-level managers include regional managers, product directors, and division heads. Their level is called “management control level” due to their responsibility of putting plans into action and ensuring the accomplishment of goals.

Operational Control Level Lower level managers are persons responsible for carrying out the plans specified by managers on upper levels. Their level is called the “operational control level” because this is where the firm’s operations occur.

Influence of Management Level on Information Source and Form When designing information systems, it is important to consider the manager’s level. Such levels can influence both the source of information and how it is presented. Managers on the strategic level place greater emphasis on environmental information than do managers on the lower levels. Managers on the operational control level regard internal information as vital. The second figure shows that strategic planning-level managers prefer information in a summary format, whereas operational control-level managers prefer detail.

Figure 2.

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Figure 2.

Business Areas

Managers are found in various business areas of the firm. The three traditional business areas are marketing, manufacturing, and finance in addition to other two areas that have gained major importance-human resources and information services.

Figure 2.

What managers do

According the French management theorist, Henri Fayol, managers perform five major functions.

• They plan what they are to do
  • They organize to meet the plan.
  • They staff their organization with the necessary resources.
  • They direct the available resources to execute the plan.
  • Finally, they control the resources, keeping them on course.

Finance Function Human Resources Function

Information Services Function

Manufacturing Function

Marketing Function

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Objectives

ControlControl

mechanismmechanism

InputInput TransformationTransformation OutputOutput

1- Figure 2. Input resources are transformed into output resources. The resources flow from the input element, through the transformation element, and to the output element. A control mechanism monitors the transformation process to ensure that the system meets its objectives. The control mechanism is connected to the resource flow by means of a feedback loop, which obtains information from the system output and makes it available to the control mechanism. The control mechanism compares the feedback signals to the objectives and directs signals to the input element when it is necessary to change the system operation.

Open Loop and Closed Loop Systems

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Figure 2. Not all systems are able to control their own operations. A system without the control mechanism, feedback loop, and objective elements is called an open loop system. A system with the three control elements is called a closed loop system.

Open and Closed Systems

• Open system: Connected to its environment by means of resource flows (e.g., heating system)
• Closed system: Not connected to its environment. They usually exist in tightly

controlled laboratory systems.

What is a subsystem?

A subsystem is simply a system within a system. This means that systems exist on more than one level and can be composed of subsystems or elemental parts.

S u b s y ste m A -

S u b s y ste m A -

S u b s y s te m B -

S u b s y s te m B -

S y ste m

S u b sy ste m A S u b sy ste m B E le m e n ta lP a r t C

S u b sy ste m A -

E le m e n ta l p a r t B 1 1 - Figure 2.

What is a Super System? (not frequently used)

When a system is part of a larger system, the larger system is the super system.

Physical and Conceptual Systems

Physical system The business firm is a physical system, composed of physical resources Conceptual system It’s a system that uses conceptual resources-information and data- to represent a physical system. Eg. : The Computer is a physical system, but the data and information stored in it can be viewed as a conceptual system.

The Importance of a System View

A systems view regards business operations as systems embedded within a larger environmental setting. It’s an abstract way of thinking, but it has potential value to the manager. The systems view:

o Increases productivity among managers and office workers through the use of electronic devices. o Includes a variety of applications such as video conferencing, voice mail, electronic mail, desktop publishing...etc. ƒ Artificial Intelligence (AI)/ Expert Systems (ES) - 1990s o AI is an application that enables the computer system to perform some of the same logical reasoning tasks as humans. o An expert system is a special subclass of AI that functions as a specialist in a certain field. For example, it can provide management consultancy. o Limitation of ES: It doesn’t improve its intelligence over time. One way to overcome this limitation is to use neural networks, electronic and mathematical analogs of the human brain.

THE CBIS MODEL

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Figure 2.

Managers make decisions to solve problems, and information is used in making these decisions. Information is presented in both oral and written forms by an information processor. The computer portion of the information processor contains each of the computer-based application areas- AIS, MIS, DSS, the virtual office and knowledge based systems.

THE INFORMATION SERVICES ORGANIZATION

Information Specialists Those are the ones who have full-time responsibility for developing and maintaining computer based systems. There are five categories of information specialists: o System analysts work with users to define the requirements for developing new systems and improving existing ones. o Database administrators work with users and system analysts to create databases that contain the data needed to produce the user’s information. o Network specialists work with system analysts and users to establish the data communication networks that tie together widespread computing resources. o Programmers use the documentation prepared by the systems analysts to encode the instructions that cause the computer to transform the data into information needed by the user. o Operators handle the large-scale computing equipment such as mainframe computers and mini-computers.

THE TREND TO END USER COMPUTING Information specialists do not always participate in the development of computer- based systems as shown in the figure below. That is the traditional approach, the way all systems were developed during the 1950s—1970s. The trend towards End user Computing began by the late 1970s and then kept growing. EUC is the development by user of all or part of their computer bases systems.

JUSTIFYING THE CBIS

The CBIS should be justified in the same manner as any other large investment of the firm. o Economic

• Cost reduction
• Reduced inventory investment
• Increased productivity (CAD/CAM) o Non-economic
• Perceived value

ACHIEVING THE CBIS

In some respects, each subsystem of the CBIS is like a living organism: it is born, it grows and matures, it functions, and eventually it dies. This evolutionary process is called the system life cycle (SLC). It consists of the following phases:

1- Figure 2.

REENGINEERING THE CBIS

The process of reworking a system is called reengineering or business process redesign. o A reengineered system is not always a clean-slate approach o Good features of the system can be retained o BPR will be the development methodology of choice, rather than the SLC.

MANAGING THE CBIS

Im p le m e n ta tio n

P h a s e M a n a g e r In fo rm a tio n S p e c ia lis t

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M a k e a v a ila b le 1 - Figure 2.

The manager is the one responsible for managing the CBIS. Among his responsibilities are: o Planning the life cycle o Controlling the information specialists involved. o Ensuring that the CBIS provides the desired support.