MIS - Information and system concepts

Discusses the information and system concepts of Management Information System.

1. INFORMATION & SYSTEM CONCEPTS

2. VALUE OF INFORMATION Value of Information is related to the person who uses it and for what purpose he uses it. Any assessment of the value of information is therefore related to the value of the decision –making supported by such information. It differs from the person to person.

3. VALUE OF INFORMATION Value of information i s computed as - where ; VP1=Value of additional information V=value of information C = cost of information V1 &C1 =value & cost of previous year V2 & C2=value & cost of new set of information If VP1 is very high ,then it is beneficial to serve the additional information need. VP1=(V2-V1)-(C2- C1)

4. MANAGERIAL INFORMATION SYSTEM The MIS deals with the internal & external formation Intelligence about competitors activities Information about population shifts Economic & social factor Government legislation MIS can be used to gather information from both formal & informal flow of information. MIS produce information for managers on three levels e.g. operational, tactical & strategic.

5. PROCESS OF INFORMATION GENERATION & COMMUNICATION SHANNON’S MODEL(1948) INFORMATION SOURCE TRANSMITTER RECEIVER DESTINATION NOISE SOURCE MESSAGE MESSAGE SIGNAL RECEIVED SIGNAL CHANNEL

6. COMPONENTS OF SHANNON’S MODEL Thomson made call to his assistant “Come here I want to see you”. During his call, noise appeared (transmission error) and his assistant received “I want” only. Source / Sender - Thomson Transmitter - Telephone Message - “Come here I want to see you” The Signal - Sound Channel - Cable Noise - Distraction in voice Receiver - Telephone Destination - Assistant

7. Information overload Bombarded with information whether or not we actively seek it. E.g.: your inbox! Heavy information load will confuse the individual, affect his ability to set priorities, or makes prior information harder to recall. Techniques for managing information overload : Direct questions leads to precise answers. Quality > Quantity Summarizing Message modification or Filtering Inferences Message Routing

8. SYSTEM CONCEPT System is a functional unit , which involves set of procedures/functions to produce certain outputs by processing data/information given as input. Input Process Output

9. ELEMENTS OF SYSTEM INPUTS Business Problems: Data Information Instruction Opportunities OUTPUTS Solutions: Reports Graphics Voices tactics PROCESSING Programs People Equipment Storage CONTROL Decision Makers Auto-Control FEEDBACK

10. Elements Of System Concept System Boundaries System & Sub System Outputs & Inputs Subsystem Interface Interface Problems System & Its Environment System Feedback System Stress & Change System Entrophy System Development

11. TYPES OF SYSTEM Man- made information system 1: Physical or Abstract system Open or closed system Types of system Physical or abstract system Deterministi c • O s p y e n s o t r e c l m ose d system Deterministic system 4. Man- made Information System

12. SYSTEM APPROACH Defining problems & opportunities using systematic thinking. Developing alternative solutions. Evaluating alternative solutions. Selecting the best solution. Designing &implementing a solution. Post implementation decision.

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