MANAGEMENT INFORMATION SYSTEMS

Management Information Systems

Management Information Systems

Introduction

The research in informatics for management began to develop with the development of information systems and keep the same exponential trend over the years. Some of the first authors Ackoff (1967) and Summer (1967) anticipated the rocketing trend in management information systems domain but they were often criticizing the users' euphoric expectations regarding the software applications, especially the myth that management information systems must provide solutions for anything.

How Management System Adds Value to Managers and Processes

An organizational information system exists because an organization exists. To achieve its purpose, an organization must (1) define the characteristics of goods and services to be provided, (2) deliver those goods and services to customers, and (3) manage, direct, coordinate, and control the organization and its resources. Information technology is pervasive in and vital to these three organizational objectives. The objectives for an information system follow naturally from the organizational purposes (Laudon & Laudon, 2004):

Add functionality and information value to products and services. Information and information processing are important to the products and services provided by an organization, either incorporated in their functionality or as value added through information processing. Examples are information and communication functions designed into products such as automobiles or cellular phones and additional information provided to customers through online banking or investment services.

Support transaction and operational processes. Information, information processing, and communications are integral parts of the processes by which goods and services are provided by an organization. Information technology is vital in achieving quality, short cycle time, and efficiency in transaction processing and operational processes.

Support administrative and management activities. Information, communications, and information processing are essential to administrative and management activities of coordination and control. They are also fundamental to management analysis, decision making, and strategy formulation.

In addition to its role in achieving organization purposes, information and information processing are significant factors in the design of organizational structures for both operations and management. Information technologies enable improvements and innovations in organization design.

The Structure of an Organizational Information System

The structure of a management information system consists of a technical infrastructure, databases and other repositories, and a portfolio of application systems (McLeod, 2006). The technical infrastructure provides information technology, databases and other repositories provide the data needed by the organization, and the application systems provide specific processing procedures and routines. The application systems can be classified logically (and sometimes physically) into transaction processing (q.v.), operations, and administrative and management support. The elements (technical infrastructure, repositories, transaction processing systems, operations systems, and administrative and management support systems) will be defined in this section; the administrative and management support systems will be described in more detail later in the article (Davis, 1999).

Technical infrastructure

Databases and other repositories.

Transaction processing systems.

Operations systems

Administrative and management support systems

The MIS Related to the Functions of an Organization

An organization is typically organized with specialized functions. Examples are marketing, production, logistics, human resources, finance and accounting, and information systems. These functions exist because of the efficiency and effectiveness of ...