Presented by Neels Bothma. MANAGEMENT INFORMATION SYSTEMS. 26 January 2006. What is information? Why do you need information Characteristics of information Information and managers Uptake of information in the new economy Key challenges Information systems Information in organisations
Why do you need information
Characteristics of information
Information and managers
Uptake of information in the new economy
Information in organisations
Information as a key resource
Nature of managerial work
Types of information systems
Information systems in functional areas
Effectiveness and efficiency
Groupware, telecomms, networks & protocols
System Development Lifecycle
System integrationTOPICS FOR THE DAY
Information can thus be defined as data that has been processed, manipulated and organised in a way suitable for human interpretation and that adds to the knowledge of the person receiving it
Information is usually compiled in response to a specific need and often with the purpose of revealing trends or patternsWHAT IS INFORMATION?
Put another way, data are distinct pieces of factual information used as a basis for reasoning; a “given” or fact; a number, a statement, or a picture, discussion, or calculation
Data is the raw material – the input – of informationWHAT IS DATA?
Knowledge can further be described as the awareness and understanding of interconnected details, facts, truths or information gained through experience or learning, which, in isolation, are of lesser value.
In other words, knowledge is about what one knows and understandsWHAT IS KNOWLEDGE?
What one knows one knows is explicit knowledge.
Knowledge that is unstructured and understood, but not clearly expressed is implicit knowledge.
If the knowledge is organised and easy to share then it is called structured knowledge.
To convert implicit knowledge into explicit knowledge, it must be extracted and formattedWHAT IS KNOWLEDGE…cont?
THE UPTAKE OF INFORMATION
Emergence of the global economy
Transformation of industrial economies
Transformation of industrial economies …cont.
And striving for:
Low transaction and coordination costs; empowerment; collaborative work and teamwork
THE UPTAKE OF INFORMATION
Transformation of the modern enterprise
Transformation of the modern enterprise …cont.
For purposes of understanding what it is to be a digital firm, please consider the following definition from Whatis.com
Prior to digital technology, electronic transmission was limited to analog technology, which conveys data as electronic signals of varying frequency or amplitude that are added to carrier waves of a given frequency. Broadcast and phone transmission has conventionally used analog technology.
Digital technology is primarily used with new physical communications media, such as satellite and fiber optic transmission. A modem is used to convert the digital information in your computer to analog signals for your phone line and to convert analog phone signals to digital information for your computer.
THE UPTAKE OF INFORMATION
Emergence of the digital firm
THE UPTAKE OF INFORMATION
Convergence of technology
For information to be useful, it must be…
Simple, timely, verifiable, accessible, secure, flexible, reliable
Raw data are processed in an IS to create final useful information
use IT to do same things
use IT to learn and continuously improve
use IT to support organisation’s mission and strategy
Use IT to bring organisations togetherOUR PERSPECTIVES ABOUT INFORMATION TECHNOLOGY IS CHANGING...
Must allow access to a broad group of users
Must enhance organisational learning
Must do in a cost-effective mannerREFINED OBJECTIVES OF INFORMATION SYSTEMS
Subsystem: One part of a system where the products of more than one system are combined to reach an ultimate goal
Closed system: Stand-alone system that has no contact with other systems
Open system: System that interfaces with other systemsWHAT IS A SYSTEM?
ResultsWE NEED TO EXPLOIT INFORMATION SYSTEMS TO PRODUCE RESULTS
Instantaneous access to information
Means of coordination
Support for decision makingCAPABILITIES OF INFORMATION SYSTEMS
Increased flexibility of IS allows for changes in organisational structure
However, politics of information is an issueMANAGERS AND INFORMATION
Decisions affect entire or large parts of the organisation; “what to do” decisions
Aggregate past organisational data and make future predictions
Improve organisational strategy and planning
Wide-ranging decisions within general directions handed down; “how to do it” decisions
Automation of monitoring and controlling of organisational activities
Improve organisational effectivenessTHE TRADITIONAL ORGANISATIONAL PYRAMID…cont.
IT Flattens the Organisation
Amount of data from which information is extracted
How long a period the data covers
Level of Detail
Degree to which information is specificCHARACTERISTICS OF INFORMATION AT DIFFERENT MANAGERIAL LEVELS
Internal data: collected within the organisation
External data: collected from outside sources
Media, newsletters, government agencies, InternetCHARACTERISTICS OF INFORMATION AT DIFFERENT MANAGERIAL LEVELS …cont.
Structured data: numbers and facts easily stored and retrieved
Unstructured data: drawn from meetings, conversations, documents, presentations, etc.CHARACTERISTICS OF INFORMATION AT DIFFERENT MANAGERIAL LEVELS…cont.
Tactical management – develops the goals and strategies
Operational management – manages and directs the day-to-day operations
Nonmanagement employees – perform daily activitiesINFORMATION AS A KEY RESOURCE Organisational dimensions of information
Upward – describes the current state of the organisation based on its daily transactions
Downward – consists of the strategies, goals, and directives that originate at one level and are passed to lower levelsINFORMATION AS A KEY RESOURCE Organisational dimensions of information
Horizontal – between functional business units and work teams.
Outward – information that is communicated to customers, suppliers, distributors, and other partners for the purpose of doing business.INFORMATION AS A KEY RESOURCE Organisational dimensions of information
Internal information – specific operational aspects of the organization.
External information – the environment surrounding the organization.
Objective information – something that is known.
Subjective information – something that is unknown.INFORMATION AS A KEY RESOURCE Organisational dimensions of information
More successful for smaller, entrepreneurial firms
IT supports matrix structure
Easier access to cross-functional informationTHE MATRIX STRUCTURE
Control activities by comparing plans to results
The higher the level of management:
The less routine the manager’s activities
The more open the options
The more decision-making involvedDECISION MAKING
Review only exceptions from expected results that are of a certain size or type to save time
Encouraging and inspiring subordinates
Initiating activities for efficient and effective work
Creating new techniques to achieve corporate goals
Presenting a role model for desired behavior
Taking responsibility for undesired consequences
Delegating authorityLEADING MANAGERS REQUIRE THESE SKILLS AND ABILITIES
CEO, Fortune 1000 software fime, spring 1998LOVE-HATE RELATIONSHIP WITH INFORMATION TECHNOLOGY
Every time they repainted the lines in the road, you have to buy a new car.
The air bag system would say, “Are you sure?” before going off.
When your car died on the freeway for no reason, you would just accept this, restart, and drive on.
Executing a maneuver would cause your car to stop, and you would have to reinstall the engine. For some strange reason, you would accept this, too.WELL… THIS IS TRUE BUT…
Technology-literate knowledge worker – a person who knows how and when to apply technology.PEOPLE AS A KEY RESOURCEInformation and technology literacy
Data processing: Data are manipulated into information using mathematical, statistical, and other tools
Output: Information is displayed or presented
Storage: Data and information are maintained for later useTHE FOUR STAGES OF DATA PROCESSING
Record data and perform basic processing
Cash registers and ATMs
Management Information Systems (MIS)
Recorded transactions and other data produce information for problem solving and decision making
Decision Support Systems (DSS)
Contain models, or formulas, that manipulate data into information
Often answer “what if?” questionsTYPES OF MANAGEMENT INFORMATION SYSTEMS
Generate ideas, establish priorities, and reach decisions in group environment
Executive Information Systems (EIS)
Can gather information from vast amounts of data for high-level executives
Highly useful in control and planning
Expert Systems (ES)
Programmed with human expertise
Can help solve problems of unstructured nature
Also referred to as a knowledge worker system (KWS)TYPES OF INFORMATION SYSTEMS…cont.
Represents local conditions or features
Allows planning, decision-making, and monitoring of local conditions or activities
Managers can obtain reports tailored to their needs at any time
Office automations system (OAS)
Managers can obtain reports tailored to their needs at any timeTYPES OF INFORMATION SYSTEMS…cont.
Record business transactions, produce periodic financial statements, and create reports required by law
Organise budgets, manage the flow of cash, analyse investments, and make decisions that could reduce interest payments and increase revenues
Analyse demand for various products in different regions and population groupsINFORMATION SYSTEMS IN FUNCTIONAL BUSINESS AREAS
Help with record keeping and employee evaluation
Allocate resources such as personnel, raw material, and time
Control inventory, process customer orders, prepare production schedules, perform quality assurance, and prepare shipping documentsINFORMATION SYSTEMS IN FUNCTIONAL BUSINESS AREAS…cont.
ISs are often the backbone of service organisations
Some retail stores (e.g., Wal-Mart, Sears) are now linked to communication networks by satellite
Management can determine which items move quickly and which do notINFORMATION SYSTEMS IN FUNCTIONAL BUSINESS AREAS…cont.
ISs have made new products and services possible, such as credit reports and shipment tracking, online businesses
Tax authorities, national insurance and welfare agencies, defense departments, economic organisations, immigration authoritiesINFORMATION SYSTEMS IN DIFFERENT BUSINESS SECTORS
The degree to which a task is accomplished
Determined by the relationship between resources expended and benefits gained in achieving a goalEFFECTIVENESS AND EFFICIENCY
Support supply chain management, the series of main and supporting activities from order to deliveryENTERPRISE RESOURCE PLANNING (ERP)
Users can distribute and track electronic documents without working with outdated information
Users can coordinate work on a single document from many different terminalsGROUPWARE ANDCOLLABORATIVE WORK
Telecommunications has improved business in three main ways:
Better distribution of dataTELECOMMUNICATIONS IN BUSINESS
Physical medium through which data can be communicated
Telephone lines, television cables
Speed at which data are communicated
Also called the transmission rate
It is often called “bandwidth”
Bandwidth is measured in bits per second (bps)
The greater the capacity, the faster the transmissionBANDWIDTH AND MEDIA
Ensures hardware and software exist to build the system
Economic Feasibility Study
Determines resources needed for implementation
Determines if benefits outweigh the costs
Determines if system will be used as intended at its full capacity
Specific features and interface requirements of the system defined
Analysts integrate existing systems so that:
Data can flow more easily among business units
Users can access different types of data via a single interfaceSYSTEMS INTEGRATION
The Web is a way of organising, presenting and accessing the Information on the InternetWHAT IS THE INTERNET?WHAT IS THE WEB?
Database management online makes information cheaper to distribute
E-commerce is now synonymous with “doing business on the Internet”E-COMMERCE
to e-business empowerment
Time to Implement
Executive Oversight and
0 50 100
Source: JFK School of Government, Harvard University
Slide Courtesy, Don Pearson, VP, Government Technology
“In pursuing the democratic/political process, in managing resources, executing functions, measuring performance and in service delivery, information is the basic ingredient”INFORMATION TECHNOLOGY’S ROLE IN GOVERNMENT
Source: World BankWHAT IS E-GOVERNMENT?
Almost all government institutions publish information on Internet
Few institutions provide different forms on Internet
Improved management and presentation of information
Providing e-services for citizens, incl. taxes declaration and paymentG2C: GOVERNMENT TO CITIZEN
Use of Internet for information
Availability of basic infrastructure
Using E-mail for unofficial communication between institutions
Internet – official communication environment for the Government
High level of security
Building of legacy system integrationG2G: GOVERNMENT TO GOVERNMENT
Involve citizens and business in interactive ways
Full exploitation of ICT in administrations including e-signaturesand open source software
E-markets for public sector procurementE-GOVERNMENT PRIORITIES
Provision of vision, strategy and necessary financial resources
Awareness in the society of the need for e-government development
Education and training, practical skills of the human resource pool for participation in the e-government
Provision of employment for highly qualified IT professionals
Effective feedbackCRITICAL FACTORS
Based on the realities mentioned, the following critical factors for a successful e-government have been defined:
Standards for e-governance procedures
Reengineering the existing system
Technology should be used to enable the delivery of results not merely as a substitute to reduce inertia within processes
Technological innovations for public services
Technology should not be used to preserve legacy systems
Focus on results not on process
Governance should be a collaborative approach
Create leadership in Technology ; Security & PrivacyCRITICAL FACTORS…cont.
It is difficult to attract and keep highly qualified IT and management specialists in the state administration because of the more attractive remuneration terms and clearer career perspectives in the private sectorHUMAN RESOURCES
on the Web
IMPLEMENTING E-GOVERNMENT - STAGES
Complexity & Time
Reach the average level of Internet capacity in the region
Satisfy quantity and quality of Internet lines
Extend internet access points
ADSL in industrial parksGOVERNMENT OBJECTIVE: INTERNET INFRASTRUCTURE
The Government of the Republic of Bulgaria will provide modern and efficient governance, while using the means of contemporary information technologies in order to meet the real needs of citizens and businesses at any time and any placeE-GOVERNMENT VISION OF BULGARIA
To provide, through electronic means, high-quality, efficient and accessible public services to citizens and business;
To expand the technological capabilities of citizens and businesses for participation in the government decision-making process;
To form organisational, communication and information environment for effective and transparent functioning of the public administration in accordance with the principles, standards and best practices of the European UnionE-GOVERNMENT STRATEGIC OBJECTIVES OF BULGARIA
The major concerns in implementing e-government are:
It is not only about Software and Hardware competence.
It is about working environment and process understanding as a whole.
ALTERNATIVE MODEL OF E-GOVERNANCE
E- GOVERNMENT TO DIGITAL GOVERNANCE
(Delivery of Citizen
Serving the end user
The other set of challenges lie in extending the reach of e-governance services to large portions of the population that live in rural areas. These include:
e-governance solutions to meet those needs
The key challenges with electronic governance are not technology or internet issues but organisational issues like
One’s right to control information about oneself
Not a constitutional right per se; secured by laws or convention
Increasing number of organizations may access information via better IT hardware and software
Business and civil rights advocates dispute degree of privacy vs. utility of information accessETHICAL AND SOCIETAL ISSUESPrivacy? What privacy?
Resent unsolicited mail and telephone calls
Resent being refused credit because of credit bureau mistakes
Frightened by “dossier phenomenon”
Loss of control over information unfair
information gathered for a particular purpose with permission should remain restrictedETHICAL AND SOCIETAL ISSUESPrivacy? What privacy?
Purpose: Companies should inform people who provide information of specific, exclusive purpose
Relevance: Companies should record and use only data necessary to fulfill their own purposes
Accuracy: Companies should ensure that their data are accurateETHICAL AND SOCIETAL ISSUESPrivacy? What privacy?
Security: Companies should limit data access to only those who need to know
Time Limitation: Companies should retain data only for the time period necessary
Scrutiny: Companies should establish procedures to let individuals review their records and correct inaccuraciesETHICAL AND SOCIETAL ISSUESPrivacy? What privacy?
Software to count keystrokes
Artificial intelligence to monitor cash disbursement and detect fraud
Monitoring e-mail and Web accessETHICAL AND SOCIETAL ISSUESElectronic monitoring of employees
Entitled to know how employees spend time
Believe monitoring is an objective, nondiscriminatory method to gauge output
The Employees’ Position
Deprives them of autonomy and dignity
Increases stress and stress-related illness and injuryETHICAL AND SOCIETAL ISSUESElectronic monitoring of employees
Saves travel cost and time
May reduce unemployment
Productivity higher among telecommutersETHICAL AND SOCIETAL ISSUESTelecommuting: pros and cons
Employers tend to pressure telecommuters to work harder than workers in the office.
No office to foster new social ties and camaraderie.
May negatively impact some segments of the economy
Downtown business and industriesETHICAL AND SOCIETAL ISSUESTelecommuting: pros and cons