Management Information Systems
Information Systems vs Data Processing Systems
How different systems are used:
A supermarket is a good example of the different systems in use.
- increases knowledge
- reduces uncertainty
- is usable for the intended purpose
Internal and External Information
An organisation uses information from a variety of sources: information generated internally from within the organisation and information gathered from external sources.
Can you tell the difference?
Different types of information are required by different types of staff.
Test your knowledge
- From external sources: e.g.
- Environmental data
- Market data
- Competitive data
- Supply / materials data
From internal sources: i.e.
Company transactions of all types, e.g.
- Cash flows
Management plans, assumptions, estimates,
- Store / retrieve
- Identify trends / exceptional items
- Make routine decisions
- Regularly produced reports on: e.g.
- Forecasts, trends, comparisons, analyses.
- Routine decisions and intructions, e.g.
- Enquiry responses, decision support information.
- Modelling, simulation, interactive responses
- Within an organisation there are formal and informal channels of information.
- ICT systems help to spread, share or disseminate information within an organisation.
Find out how
Role of a Management Information System
A Management Information System takes data from internal and external sources and uses the information to aid managers make tactical and strategic decisions.
Features of an MIS
Success or Failure of an MIS
Structured and Unstructured Decision-Making
Decisions can be categorised as structured or unstructured decisions.
- Structured decision-making are routine, often repetitive, and may involve a procedure for making the decision
- routine decisions
- common problems
- Unstructured decision-making do not have a set procedure, and usually require judgement, evaluation and insight
- important decisions
- one-off situations
Stages of decision-making:
Whenever an unstructured decision is made, the same process or stages are followed.
- List the desirable characteristics for an Management Information System
- The text book lists reasons why an MIS may fail. Re-write the list as principles to ensure that the MIS is a success
- Do the exercise and questions at the end of Chapter 37 of the textbook.