Management Information System-Challenges of Information System_lesson2

8/3/2019 Management Information System-Challenges of Information System_lesson2

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ManagementManagementInformationInformationsystemsystemChallenges of

Information System


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Different kind of systems

Strategic levelStrategic level

Management levelManagement level

Knowledge levelKnowledge level

Operational levelOperational level

Knowledge & data

workers

Middle managers

Senior managers

Sales &Marketing

Manufacturing Finance Accounting Human resource


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Different kind of systemsFour main types of Information system :

Operational level system

Knowledge level system

Management level system

Strategic level system


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Operational Level System Helps operational managers Keeps track of the elementary activities

& transactions of the organizatione.g., sales, receipts, cash deposits,payroll, flow of materials

Purpose : answer routine questions,track flow of transactions

Example : record bank deposit fromATM machines


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Knowledge Level System Support knowledge and data workers in

an organization

Purpose : to help the business firmintegrate the new knowledge intobusiness and to help control the ofpaperwork flow


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Management level system Designed to serve the monitoring,

controlling, decision making,

administrative activity of middle levelmanagers

Purpose : are the things working well?

Compares todays output with previous

Provides periodic reports Some management level systems provides

non routine decision making

What if analysis


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Strategic level system Information system that supports long

range planning activities of senior

management. Help senior management tackle and

address strategic issues and longterm trends both within the firm andin the external environment

What will be the employment level inthe coming 5 years


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Different kind of systems IS are differentiated by functional specialty Major organizational functions are served by

own IS Sub-function of the major function can have

also their own IS : manufacturing = inventorymanagement + process control + plantmaintenance+ computer aided engineering+material requirement planning

Typical organizations has operational-,-knowledge-, -management-, -strategic levelsystem for each functional area

Different organization has different IS


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Types of information systemsType of system Information

inputsProcessing Information

outputsUsers

ESS Aggregate

data :external,internal

Graphics,

simulations, interactive

Projections;

responsesto queries

Senior

managersDSS Low-volumedata;analyticmodels

Interactive;simulations,analysis

Specialreports;decisionanalysis;responses

to queries

Professionals, staffmanagers


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outputsUsers

MIS Summary

transactiondata : highvolumedata;simple

models

Routine

reports;simplemodels;low levelanalysis

Summary

andexceptionreports

Middle

managersKWS Designspecifications;knowledge

base

Modeling ;simulations

Models;graphics

Professionals,technicalstaff


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outputsUsers

OAS Documents,

schedules

Document,

management;scheduling;communication

Documents;

schedules;mail

Clerical

workersTPS Transaction; events

Sorting,listing;merging,updating

Detailedreports;lists;summaries

Operationspersonnel,supervisors


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outputsUsers

ESS Aggregate

data :external,internal

Graphics,

simulations, interactive

Projections;

responsesto queries

Senior

managersDSS Low-volumedata;analyticmodels

Interactive;simulations,analysis

Specialreports;decisionanalysis;responses

to queries

Professionals, staffmanagers


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The changing managementprocess

Interdependence

ORGANIZATION INFORMATION SYSTEM

BUSINESSStrategyRulesProcedures

SOFT WARE

TELECOMMUNICATIONS

DATA BASE

HARD WARE


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Role of IS in organization Growing interdependence between business

strategy, rules, procedures on one hand andinformation system software, hardware, dataand telecommunication on the other

Changes in the strategy, rules and proceduresincreasingly require changes in hardware,software, databases and telecommunications.

Existing system can act as a constraint on

organizations What the organization is like to do depends on

what its system will permit it to do.


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Changing nature of IT Why system play a crucial role in

organization ???

Growing power of IT and declining cost In few hours relatively unskilled

employees can be taught wordprocessing, project scheduling,spreadsheet preparation,telecommunication inmicrocomputers


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Changing character ofapplications

Both the changing role of system and the newtechnology have brought about a new kind ofapplication that are more deeply embedded

in the fundamental activities of the firm Massive transaction processing, reporting

system, customized system for one or fewgroups of the organization

New kind of application require direct closeinteraction between technical support

personnel and managers who will use thesystem and senior management support Managers need to have the understanding of

computers to maximize the benefit.


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Information architecture

Strategic systems

Management systems

Knowledge systems

Operational systems

Sales &Sales &marketingmarketing

ManufacturingManufacturing FinanceFinance AccountingAccounting HumanHumanresourcesresources

Coordination

Functionalbusiness

applications

Computersystems

baseHardware Software Data and files Tele-communication


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Information architecture Managers should have a understanding on data

processing system, telecommunications andoffice technologies.

Separate island of technologies must be closelycoordinated

Managers need to track, plan and mange themany islands of technology in a way that isbest suited for the organization.

Find organizational problem and system

solution Knowledge of organization is required System knowledge and organizational

understanding shape the informationarchitecture


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Information architecture Information architecture is the particular

form that information technology takes inan organization to achieve selected goalsor functions.

Although the computer system base isoperated by technical personnel generalmanagement must decide how to allocateresources it has assigned to hardware,software and telecommunications

Top managers of systems andcommunication departments are alsogeneral managers


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Challenges of ISThe strategic business challenge :The strategic business challenge :How can business use information

technology to design organizations thatare competitive and effective?The globalization challenge :The globalization challenge :How can firms understand the business

and system requirement s of a globaleconomic environment?


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Challenges of ISThe information architecture challenge :The information architecture challenge :How can organizations develop an

information architecture that supports theirbusiness goal?The information system investmentThe information system investmentchallenge :challenge :

How can organizations determine thebusiness value of information system?


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Challenges of ISThe responsibility and control challenge:The responsibility and control challenge:How can organizations design systems

that people can control and understand?How can organizations ensure that theirinformation system are used in anethically and socially responsible manner?