Information Processing and Management

(MBA 521)

By
Tasew S (Ph.D.)
 Course Description

This course will enable students to

understand the critical role of
information in today’s organization; it
will provide students with a wider
understanding of information systems as
The course specifically examines the
various types of information systems
encountered in modern businesses, their
roles in supporting operations, managerial
functions and competitive needs.
Challenges from the proliferation of information systems
and their strategic prospects, technical issues related to
information systems infrastructure, hardware, software,
networks and organization of data resources are examined
with an emphasis on managerial issues related to the
development, effective deployment, management and
strategic business uses of IS resources.
 Course Objectives

The course aims to acquaint the student with the basic concepts
of computer hardware and software and to gain proficiency in
information systems and commercial data processing.
In today’s business environment, the success or failure of
business is highly associated with its ability to get quality
information of practical utility to the organization.
Therefore, students of business need to be aware about the use,
application, design and management of information system
resources.
 Learning Objectives
• Understand the concept of a system and how it relates to information
systems.
• Explain why knowledge of information systems is important for
business professionals.
• Understand how applications of information systems can support a
firm’s managerial decision making, and strategies for competitive
advantage.
• Provide examples of several major types of information systems
linking with your experiences in business organizations.
• Provide examples of the components of real world information
systems.
• Illustrate that in an information system, people use hardware,
software, data, and networks as resources to perform input,
processing, output, storage, and control activities that transform data
resources into information products.
 Mode of delivery (detailed activities of
teachers and students)

 Lectures
 Class discussions
 Project work
 Article summary
 Term paper Presentations
 Mode of Assessment

 Article review …………………………………..10

 Company visits Project work development…….20%(please
evaluate how is the statues of its implementation it apply MIS,
benefits and its significant effect

 Project work presentation………………… 20%

 Exam ………………. 50%
 References

 James A. O’Brien Management Information Systems, McGraw

Hill/Irwin,2004 and earlier versions
 Bowman, B, G. B. ,and J.C. Wetherbe, Modeling for MIS,July,1980
 Bowman, B,G.B. Davis and J.C., Three stages of Model of MIS Planning
 Information and Management,Feb,1983
 Naevena and Amitabh, Management Information System, Cyber tech
publications, 2003
 Nolan Richard Managing Information Systems by Committee, Harvard
Business Review July-August,1982
 Course Contents

Chapter One
Introduction to Information Systems
1.1. Information systems and the managerial end user

1.2. Fundamental Information system concepts

Chapter Two
Solving Business Problems with Information
Systems
2.1. A systems approach to problem solving
2.2. Developing Information System Solutions
Chapter Three
Information Systems Technology
3.1. Computer Hardware
3.2. Computer Software

3.3. Telecommunications
3.4. Database Management
Chapter Four
Applications in Business and Management
4.1. Transaction Processing and Information Reporting
Systems
4.2. Managerial Decision Making and Decision Support
Systems
4.3. Office Automation Systems
[Link] Information Systems
Chapter five
The Management of Information systems
5.1. Managing Information services

5.2. Organizing Information services

5.3. System Development Management
 Chapter one

Introduction to Information System

•
1.1. Why Information processing
and management?
Information processing and management is crucial
because it
• Provides a framework for businesses to strategically
use information for competitive advantage and
operational efficiency.
• For individuals, it explains how the human mind learns,
processes, and retains information, which is vital for
education and cognitive development.
• Effectively managing information allows organizations
to improve decision-making, boost productivity,
enhance customer satisfaction, and develop innovative
products and services
• Business firms often look for new hires who know
how to use information systems and technologies for
achieving bottom-line business results.
• Regardless of whether a student is an management,
accounting, finance, marketing, or any other, the
knowledge found in this course will be valuable
throughout a business career.
• Thus, this chapter presents an overview information
systems, basic areas of information systems
knowledge needed by business professionals,
including the conceptual system components and
major types of information systems.
 What is Information System(IS)?
• An information system is a set of interrelated
components that collect (or retrieve), manipulate
(process), store, and distribute information to support
management decision making and control in an
organization.
• An information system(IS) is an arrangement of
people, data, processes, and information technology
that interact to collect, process, store, and provide
as output the information needed to support an
organization.
Cont’d…
• The term information system usually refers to a
computer-based system, one that is designed to
support the decision making.
• Information systems in organizations thus
provide information support for decision
makers.
 Cont’d
• Information consists of data that have been
processed and are meaningful to a user.

• A system is a set of components that operate

together to achieve a common purpose.
• The system makes possible the conversion
of data into mgt information for use by
decision makers within the organization.
– what is data
– What is Information
 What is Data?

• Raw figures and facts

• Numbers and strings of letters with no
precise context or meaning
 What is Information?

• Data endowed with relevance and purpose

• Data becomes information when its creator
adds meaning
• An organized, meaningful, and useful
interpretation of data
• Data processed with knowledge
 What is Knowledge?

• An awareness and understanding of a set of

information and how that information can be put to
its best use

• Internalized information + the ability to utilize this

information
Knowledge is
• information, understanding, and skills acquired through
experience, education, or study. It encompasses facts,
awareness, and the ability to use information to make
sense of the world, and is often seen as a cognitive link to
reality.
• Information and understanding: Knowledge includes
factual information about a subject and the deeper
understanding of what that information means.
• Skills and familiarity: It can also be practical skills, like
knowing how to do something, or a personal familiarity
with a subject gained through direct experience.
Data transformed into Information

A collection of facts organized in

such a way that they have
additional value beyond the value
Information of facts themselves.

Guidelines and procedures used to

Process select, organize, and manipulate data
to make it suitable for a specific task.

Data Raw facts

 Data becomes Information

 Establishing
relationships between
data creates
information.

Information = Data + Relationships

 Management Information System
• MIS is a comprehensive & coordinated set
of information subsystems which are
rationally integrated & which transform data
into information in a variety of ways to
support operations, management, and
decision-making functions in an organization.
• MIS collects, stores, processes, & transmits
data on an organization's resources,
programs, & accomplishments.
 Elements of IS
Data
• is a raw fact that needs to be processed to give
meaning or to serve a purpose.
• are symbols that will never be a complete
representation of or the same with, reality, but
they describe objects, events and their
relationships incompletely.
• Consists of figures and facts that can take
different forms such as images, text, or voice
that are not currently being used in a decision
process.
 Processing

is defined as changing data from unusable

into usable form to the intended recipient
to make decisions or to alter the receiver’s
current direction. Or
is changing raw material (data) to finished
product (information).
 Information
is defined as a valuable processed data
that is meaningful to the receiver to make
organizational decisions.

is a knowledge that one derives from

facts placed in the right context with the
purpose of reducing uncertainty.
 System
A system is defined as a group of interrelated
components working together towards
attainment of a common goal by accepting
inputs & generating outputs in an organized
transformation process.
 Why is MIS?
Three powerful worldwide changes have altered
the environment of business.
 the emergence & strengthening of the global
economy.
 the transformation of industrial economies &
societies into knowledge- & information-based
service economies.
 the transformation of the business enterprise.
 Cont’d
• MIS then is used to generate timely, accurate
& organized information for the manager &
other users. (Then what?)
• This information is used to make decision,
solve problems, supervise activities & monitor
process.
• It provides useful information for the
management to make important decision
about the organization.
MIS creates three types of information

1. Detailed report: It contains only transaction.

2. Summery Report: It consolidates data to review it
quickly & easily.
 It normally contains totals, tables and graph.
3. Exception Report: It identifies data outside of a
normal condition.
 This condition is called exception criteria.
 IS consist of the following general
components
1. Hardware- a physical part of computer
• A computer contains many electric, electronic, &
mechanical components known as hardware.
• Multiple computer systems: microcomputers,
minicomputers, mainframes, together with their
peripherals.
• Computer system components are: a central
processor(s), memory hierarchy, input & output
devices.
 Cont’d
Computer processor: The central processor carries
out the instructions of a program, translated into a
simple form.

Memories: Included in a computer system form a

hierarchy.
They range from the fast electronic units, such as
the main memory, to the slower secondary storage
devices such as magnetic disks.
 Cont’d
• A central processing unit (CPU), also called a
central processor or main processor, is the
electronic circuitry within a computer that
executes instructions that make up a computer
program.
• The CPU performs basic arithmetic, logic,
controlling, and input/output (I/O) operations
specified by the instructions.
• Traditionally, the term "CPU" refers to a
processor, more specifically to its processing unit
and control unit (CU), distinguishing these core
elements of a computer from external components
such as main memory and I/O circuitry
2. Software- invisible part of computer
Computer software falls into two classes: systems software
& applications software.
1. Systems Software: control & coordinate the hardware
part of the computer.
 Manage the resources of the computer system &
simplifies programming.
 An operating system is the principal system software.
2. Application Software: designed to solve specific
problems. Eg., calculator(software), dictionary, word,
excel, Peach-tree
 Are programs that directly assist end users in doing their
work. They are purchased as ready-to-use packages.
 3. Databases
Data base is Data center- central data
are organized collections of interrelated
data used by applications software.
Stored & accessed electronically
Databases are managed by systems
software known as database mgt systems
(DBMS) & shared by multiple applications.
 4. Telecommunications
Telecommunications are the means of electronic
transmission of information over distances.
• Today, computer systems are usually
interconnected into telecommunications
networks.
• Various network configurations are possible,
depending upon an organization's need.
• These include: Local Area Networks (LAN),
Metropolitan Area Networks (MAN) and Wide
Area Networks (WAN)
 Cont’d
Difference between LAN, MAN and WAN
LAN stands for Local Area Network is a group of network devices
which allow the communication between connected devices.
The private ownership has the control over the local area
network rather than public. LAN has short propagation delay
than MAN as well as WAN. It covers the smallest area such as:
College, School, Hospital and so on.
• MAN stands for Metropolitan Area Network. It covers the
largest area than LAN such as: Small towns, City etc. MAN
connects 2 or a lot of computers that area unit apart however
resides within the same or completely different cities.
• WAN stands for Wide Area Network. It covers the large area
than LAN as well as MAN such as: Country/Continent etc. PSTN
or Satellite medium are used for wide area network.
 5. Human Resources
Professional information systems personnel
include dev’t & maintenance managers,
systems analysts, programmers, & operators,
often with highly specialized skills.
• End users are the people who use
information systems or their information
outputs, that is, the majority of people in
today's organizations.
 6. Procedures-
Procedures are the policies & methods to be
followed in using, operating, & maintaining an IS.
• Specifications for the use, operation, &
maintenance of information systems, collected in
help facilities, user manuals, operator manuals, &
similar documents, frequently delivered in an
electronic form.
Contemporary Approaches to MIS
• Information systems are socio-technical systems.
• Although they are composed of machines, devices,
& "hard" physical technology, they require
substantial social, organizational, & intellectual
investments to make them work properly.
• Since problems with information systems—and
their solutions—are rarely all technical or
behavioral, a multidisciplinary approach is needed.
 Cont’d
• MIS combines the work of computer science and
management science with a practical orientation
toward developing system solutions to real-world
problems & managing information technology
resources.

• It is also concerned with behavioral issues

surrounding the development, use, & impact of
information systems, which are typically
discussed in the fields of sociology, economics,
and psychology.
 Cont’d
• The technical approach: emphasizes mathematically
based, normative models to study information systems,
as well as the physical technology & formal
capabilities of these systems.

• The behavioral approach: a growing part of the

information systems field, does not ignore technology,
but tends to focus on non-technical solutions
concentrating instead on a changes in attitudes, mgt &
organizational policy, & behavior.
 Cont’d
• Technology must be changed & designed,
sometimes even "de-optimized," to fit
organizational & individual needs.
• Organizations & individuals must also be
changed through training, learning, & planned
organizational change to allow technology to
operate & prosper.
Information Systems as a Field of Study
• Information systems are a discipline of study
that is generally situated in business schools.
• The essential objective of the discipline is to
develop & study the theories, methods,&
systems of using information technology to
operate & manage organizations.
• The discipline employs a socio-technical
approach, placing the study of information
technology in the context of management,
organizations, & society.
End of Chapter One