CS507 Short Notes

CS507 Information System Short Notes

'MIS' is a planned system of collecting, processing, storing and disseminating data in the form of information needed to carry out the functions of management. According to Phillip Kotler "A marketing information system consists of people, equipment, and procedures to gather, sort, analyse, evaluate, and distribute needed, timely, and accurate information to marketing decision makers." (Kotler, Phillip and Keller, Kevin Lane; Marketing Management, Pearson Education, 12 Ed, 2006)

The terms MIS and information system are often confused. Information systems include systems that are not intended for decision making. MIS is sometimes referred to, in a restrictive sense, as information technology management. That area of study should not be confused with computer science. IT service management is a practitioner-focused discipline. MIS has also some differences with Enterprise Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision support. Definition: Management Information Systems (MIS) is the term given to the discipline focused on the integration of computer systems with the aims and objectives on an organisation.

The development and management of information technology tools assists executives and the general workforce in performing any tasks related to the processing of information. MIS and business systems are especially useful in the collation of business data and the production of reports to be used as tools for decision making.

Applications of MIS

With computers being as ubiquitous as they are today, there's hardly any large business that does not rely extensively on their IT systems.

However, there are several specific fields in which MIS has become invaluable.

* Strategy Support

While computers cannot create business strategies by themselves they can assist management in understanding the effects of their strategies, and help enable effective decision-making.

MIS systems can be used to transform data into information useful for decision making. Computers can provide financial statements and performance reports to assist in the planning, monitoring and implementation of strategy.

MIS systems provide a valuable function in that they can collate into coherent reports unmanageable volumes of data that would otherwise be broadly useless to decision makers. By studying these reports decision-makers can identify patterns and trends that would have remained unseen if the raw data were consulted manually.

MIS systems can also use these raw data to run simulations – hypothetical scenarios that answer a range of ‘what if’ questions regarding alterations in strategy. For instance, MIS systems can provide predictions about the effect on sales that an alteration in price would have on a product. These Decision Support Systems (DSS) enable more informed decision making within an enterprise than would be possible without MIS systems

A DSS can take many different forms. In general, we can say that a DSS is a computerized system used for supporting rather than automating decisions. A decision is a choice between alternatives based on estimates of the values of those alternatives. Supporting a decision means helping people working alone or in a group gather intelligence, generate alternatives and make choices. Supporting the choice making process involves supporting the estimation, the evaluation and/or the comparison of alternatives. In practice, references to DSS are usually references to computer applications that perform such a supporting role. Characteristics and Capabilities of DSS

Because there is no exact definition of DSS, there is obviously no agreement on the standard characteristics and capabilities of DSS. Turban, E.,Aronson, J.E., and Liang, T.P. constitute an ideal set of characteristics and capabilities of DSS. The key DSS characteristics and capabilities are as follows:

1. Support for decision makers in semistructured and unstructured problems.
2. Support managers at all levels.
3. Support individuals and groups.
4. Support for interdependent or sequential decisions.
5. Support intelligence, design, choice, and implementation.
6. Support variety of decision processes and styles.
7. DSS should be adaptable and flexible.
8. DSS should be interactive and provide ease of use.
9. Effectiveness balanced with efficiency (benefit must exceed cost).
10. Complete control by decision-makers.
11. Ease of development by (modification to suit needs and changing environment) end users.
12. Support modeling and analysis.
13. Data access.
14. Standalone, integration and Web-based

A Strategic Information System (SIS) is a type of Information System that is aligned with business strategy and structure. The alignment increases the capability to respond faster to environmental changes and thus creates a competitive advantage. An early example was the favorable position afforded American and United Airlines by their reservation systems, Sabre and Apollo. Strategic Information System (SIS) is a system to manage information and assist in strategic decision making. A strategic information system has been defined as, " The information system to support or change enterprise's strategy." by Charles Wiseman (Strategy and Computers 1985). Data Processing (DP) [efficiency] — Improved efficiency by means of automating back office data processing functions. Management Information Systems (MIS) [effectiveness] — Improved information flows and transfers. Strategic Information System (SIS) [competitiveness] — Enhance competitiveness of the organization through the application of IT to business processes. Davenport’s point of view is that " Information is power and people are unlikely to give it away"

Strategic information system is different from other systems as: -

they change the way the firm competes. they have an external (outward looking) focus. they are associated with higher project risk. they are innovative (and not easily copied)