Module 1

Introduction & Programming

Chapter-1: ORGANIZATION with
AND INFORMATION SYSTEMS

ESP8266

Faculty of Management Studies

Content
• Need Purpose and Objective of
MIS………………………1
• Organization and Information
Systems……………………6
• Changing Environment and its impact on
Business…10
• Components of Information
Systems…………………….12

EX
IND
• Role of Information Systems in an Organization
………14
• Data, Information and information attributes
Need for MIS

● Improved Decision-Making: Provides accurate, real-time data for better business choices.
● Operational Efficiency: Automates processes, reducing errors and costs.
● Competitive Advantage: Helps organizations stay ahead with timely insights.
● Data Management: Organizes vast amounts of business data efficiently.
● Risk Management: Identifies and mitigates risks through predictive analytics
Purpose of MIS

● Support Strategic Goals: Aligns business processes with long-term objectives.

● Enhance Communication: Facilitates smooth information flow across departments.
● Improve Productivity: Reduces manual workload and improves efficiency.
● Ensure Compliance: Helps businesses adhere to regulatory requirements.
● Enable Innovation: Drives technological advancements and business agility.
Objectives of MIS

● Data Processing: Collection, storage, and retrieval of data.

● Information Generation: Transforming raw data into meaningful insights.
● Decision Support: Providing analytical tools for managerial decision-making.
● Integration of Business Functions: Ensuring smooth interdepartmental coordination.
● Customer Relationship Management: Enhancing customer experience through data insights.
 Organization & Information System
Organization: Technical Definition:

Stable, formal social structure that takes resources from environment and
processes to produce outputs.

A formal legal entity with internal rules and procedures, as well as a social
structure

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 Information System (IS)?
From a technical perspective, an information system collects, stores, and disseminates
information from an organization’s environment and internal operations to support
organizational functions and decision making, communication, coordination, control,
analysis, and visualization. Information systems transform raw data into useful information
through three basic activities: input, processing, and output. (MIS – Laudon KC, Laudon JP)

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From a business perspective, an information system provides a solution to a
problem or challenge facing a firm and represents a combination of management,
organization, and technology elements. The management dimension of information
systems involves issues such as leadership, strategy, and management behavior. The
technology dimension consists of computer hardware, software, data management
technology, and networking/telecommunications technology (including the
Internet). The organization dimension of information systems involves issues such as
the organization’s hierarchy, functional specialties, business processes, culture, and
political interest groups. (MIS – Laudon KC, Laudon JP)
An information Systems performs three activities which fulfils information needs
of the organisation:

Input: Captures raw data from organization or external environment

Processing: Converts raw data into meaningful form

◦ Output: Transfers processed information to people or activities that use it

Feedback: Output returned to appropriate members of organization to help

evaluate or correct input stage
 External
External
Environme ORGANIZATION External
Environment
nt Environment
People INFORMATION Software
Raw Data SYSTEM Hardware
Process Networks

Collects Stores Transforms Disseminate

s
I N F O R M A T I O N
Users
10
Decision Making
Business firms invest heavily in information systems to achieve six
strategic business objectives:
I. Operational excellence
II. New products, services, and business models
III. Customer and supplier intimacy
IV. Improved decision making
V. Competitive advantage
VI. Survival
ComponentsComponent of IS of IS
in business
HARDWARE : Physical Devices
SOFTWARE : Instructs a hardware-what to do / A Program
DATA : Source of input for a Software
PEOPLE : Levels of authority / Human Resources 12

PROCESS : Series of tasks / steps to accomplish a goal

 Fundamental Roles of IS in business

✔Support of Business Processes and Operations

IS increases the efficiency of existing processes. It can enabling entirely new processes
that are capable of transforming the businesses. Many softwares are capable to support it.
E.g. Enterprise Application Softwares (SAP, Microsoft Dynamics, QuickBooks etc.),
✔Support of Business Decision Making
Support in decision making through information processed by various IS – MIS, DSS, ESS
etc. Information generated in various forms through simple reports to advanced graphical and
interactive reports.
E.g. Business Intelligence Tools & Dashboards (Tableau, Power BI)

✔Support of Strategies for Competitive Advantage

ROLES OF INFORMATION SYSTEMS IN ORGANISATIONS

Formulating
Strategies

Making Business Decisions

Optimizing & Streamlining

Business Processes & Operations

Source (Book): Management Information System – James A. O’Brien

 DATA, INFORMATION AND KNOWLEDGE

WHAT IS DATA:

✔ Distinct pieces of information, usually formatted in a special way.

✔ All software is divided into two general categories: data and programs.
Programs are collections of instructions for manipulating data.
✔ Data can exist in a variety of forms -- as numbers or text on pieces of paper, as
bits and bytes stored in electronic memory, or as facts stored in a person's
mind.
✔ Strictly speaking, data is the plural of datum, a single piece of information. In
practice, however, people use data as both the singular and plural form of the
word.
 DATA, INFORMATION AND KNOWLEDGE

WHAT IS INFORMATION:

✔ Data 🡪 processing 🡪 Information

✔ Data: data is raw. It simply exists and has no significance beyond its existence (in
and of itself). It can exist in any form, usable or not. It does not have meaning of
itself. In computer parlance, a spreadsheet generally starts out by holding data.
✔ Information: information is data that has been given meaning by way of
relational connection. This "meaning" can be useful, but does not have to be. In
computer parlance, a relational database makes information from the data
stored within it.
ATTRIBUTES OF AN INFORMATION

▪ Timeliness
▪ Accuracy
▪ Completeness
▪ Accessibility
▪ Security
▪ Relevancy
▪ Validity
▪ Format
 Levels of management & Types of Decisions / Information

Unstructured Decision
SENIOR MANAGEMENT
(STRATEGIC – ESS)
Semi-structured Decision
MIDDLE MANAGEMENT
(TACTICAL – MIS/DSS)

Structured Decision
OPERATIONAL MANAGEMENT
(OPERATIONAL - TPS)
 Types of Business Information Systems

Transaction processing systems (TPS): supporting operational

level employees (Lower level)

Management information systems (MIS) and decision-support

systems (DSS): supporting managers (Middle level)

Executive support systems (ESS): supporting executives (Top

Level)
Challenges and Opportunities to faced by Business Manager
Business Enterprise Informatio
Customer Value
Strategies/Processes/ n
Business Value
Structure/Culture Technology
Business/IT
Challenges Developments Goals
▪ Speed and flexibility requirement ▪ Use of the Internet, Intranet, ▪ Give Customers what they
of Product Development, Extranets and the Web as the want, when and how they
Manufacturing and Delivery primary IT infrastructure want it at the lowest cost.
Cycle ▪ Diffusion of web Technology to ▪ Coordination of Production
▪ Reengineering and Cross- internetwork employees,
and business processes with
functional integration of Customers and Suppliers
business Process ▪ Global Networked
suppliers and customers.
▪ Integration of e-Business and e- computing ,collaboration, and ▪ Marketing Channel
commerce into the decision support system partnership with Suppliers
organization’s strategy, Process, and distributors.
Structure and Culture
 Unique MIS Across Various industries
1. Manufacturing Industry
2. Retail Industry
3. Financial Industry
4. Healthcare Industry
5. Hospitality Industry
6. Transportation and Logistics Industry
7. Education Industry
8. Aviation Industry
9. Government Functions
Questions for Discussion:

⮚ How Information System helps to achieve

Operational Excellence in an organisation?
⮚ What is Supplier/Customer Intimacy?
⮚ How various information systems – fulfils
information needs for decision making at
different levels of management?
❖ Books

Managing the digital firm by K. C. Laudon & J. P. Laudon

Managing Information Technology in the Business Enterprise by O’Brien J