Information - Need In An Organisation
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INFORMATION - Need in An Organisation
Information Difference Between Data & Information 3)
4)
5)
Information is useful for decision making but data has got no value. Information brings clarity and creates an intelligent human response in the mind. Information is like a finished product whereas data is like raw material.
Characteristics of Information
Improves representation of an entity Updates the level of knowledge Reduces Uncertainty Aids in decision making Quality depends upon the mix of these characteristics.
Quality of Information Four Dimensions: 2. 3. 4. 5.
Utility Satisfaction Error Bias
Organisation and Information
External
Source of Information
Internal
TOP MGT
Low
MIDDLE MGT
OPERATIONAL MGT
Structural Information
High
Value of Information For decision making under uncertainty, the decision maker feels secured if additional information is received. The information is called a perfect information, if it wipes out uncertainty or risk completely.
The value of additional information making the existing information perfect (VPI) is: VPI = (V2-V1)- (C2-C1) Where V is the value of information and C is the cost of obtaining the information
SEQUENCE OF DEVELOPMENT OF M I S
DATA Individual elements of a transaction INFORMATION Is data with meaning INFORMATION SYSTEM A set of procedures organized to generate information that enables managers to review operational, tactical & strategic planning activities MANAGEMENT INFORMATION SYSTEMS Designed to provide information for effective planning & tactical decision making
Use of MIS Top Goal Setting, Policy Exec- Making, Strategic utive planning Middle Division Product Managers Supervisory, Jr.Managers, Supervisors Operational Assistants Clerks
Value of Information Very High, Meeting Key Acc- High Risk and Uncertainty urate Situation Futuristic
Decision making High, Meeting Problem solving Precise, Analytical Risk situation Monitoring & Achieving Bus- Decision oriented Iness Goals Proccessed, Problem Low, meeting summarised solving Near certainty And classified for & Meeting situation Current period Targets To know Detailed relating to The current period Status facts
Levels of Management
Nature of Information
UnStructured Unformatted, Regular but Modified frequently Given at fixed Interval, display & print
Lowest Large Volume Print
Reporting media & Structure
System is a set of interacting or interdependent entities, real or abstract, forming an integrated whole.
SYSTEMS CONCEPTS IN BUSINESS
The systems approach is a way of analyzing business problems This approach views the business organization as a system of interrelated parts designed to accomplish goals Each subsystem is a self-contained unit, but is also a part of the whole system Managers need to understand the goals of the business and design the functions of the subsystems to achieve these goals
Market research subsystem Input
Process
Output
Process
Output
Process
Output
Manufacturing subsystem Input Marketing subsystem Input Service subsystem Input
Process THE FIRM’S SUBSYSTEMS
Output
Customer needs
Finished goods
Product in use
INFORMATION SYSTEMS
An information system consists of components that interact to achieve the objectives of the business An information system contains elements such as:
Hardware Software (application s-ware & system sware) Personnel Databases procedures
AN INFORMATION SYSTEM AS A SYSTEM
The major purpose of an information system is to convert data into information The information system is a subsystem of the business system of an organization Information systems that provide information on day to day activities of a business are known as operational systems Information systems that provide information to allow the management to allocate resources effectively are known as tactical systems Information systems that support the strategic plans of a business are known as strategic planning systems
Sales listing Sales transactions Inventory Update Old Inventory master
Reorder report
New Inventory master
An inventory update system
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem and other subsystems Outputs of one subsystem become the inputs of another subsystem If the outputs of one subsystem are incorrect, the next subsystem will be affected
.
Information Difference Between Data & Information 3)
4)
5)
Information is useful for decision making but data has got no value. Information brings clarity and creates an intelligent human response in the mind. Information is like a finished product whereas data is like raw material.
Characteristics of Information
Improves representation of an entity Updates the level of knowledge Reduces Uncertainty Aids in decision making Quality depends upon the mix of these characteristics.
Quality of Information Four Dimensions: 2. 3. 4. 5.
Utility Satisfaction Error Bias
Organisation and Information
External
Source of Information
Internal
TOP MGT
Low
MIDDLE MGT
OPERATIONAL MGT
Structural Information
High
Value of Information For decision making under uncertainty, the decision maker feels secured if additional information is received. The information is called a perfect information, if it wipes out uncertainty or risk completely.
The value of additional information making the existing information perfect (VPI) is: VPI = (V2-V1)- (C2-C1) Where V is the value of information and C is the cost of obtaining the information
SEQUENCE OF DEVELOPMENT OF M I S
DATA Individual elements of a transaction INFORMATION Is data with meaning INFORMATION SYSTEM A set of procedures organized to generate information that enables managers to review operational, tactical & strategic planning activities MANAGEMENT INFORMATION SYSTEMS Designed to provide information for effective planning & tactical decision making
Use of MIS Top Goal Setting, Policy Exec- Making, Strategic utive planning Middle Division Product Managers Supervisory, Jr.Managers, Supervisors Operational Assistants Clerks
Value of Information Very High, Meeting Key Acc- High Risk and Uncertainty urate Situation Futuristic
Decision making High, Meeting Problem solving Precise, Analytical Risk situation Monitoring & Achieving Bus- Decision oriented Iness Goals Proccessed, Problem Low, meeting summarised solving Near certainty And classified for & Meeting situation Current period Targets To know Detailed relating to The current period Status facts
Levels of Management
Nature of Information
UnStructured Unformatted, Regular but Modified frequently Given at fixed Interval, display & print
Lowest Large Volume Print
Reporting media & Structure
System is a set of interacting or interdependent entities, real or abstract, forming an integrated whole.
SYSTEMS CONCEPTS IN BUSINESS
The systems approach is a way of analyzing business problems This approach views the business organization as a system of interrelated parts designed to accomplish goals Each subsystem is a self-contained unit, but is also a part of the whole system Managers need to understand the goals of the business and design the functions of the subsystems to achieve these goals
Market research subsystem Input
Process
Output
Process
Output
Process
Output
Manufacturing subsystem Input Marketing subsystem Input Service subsystem Input
Process THE FIRM’S SUBSYSTEMS
Output
Customer needs
Finished goods
Product in use
INFORMATION SYSTEMS
An information system consists of components that interact to achieve the objectives of the business An information system contains elements such as:
Hardware Software (application s-ware & system sware) Personnel Databases procedures
AN INFORMATION SYSTEM AS A SYSTEM
The major purpose of an information system is to convert data into information The information system is a subsystem of the business system of an organization Information systems that provide information on day to day activities of a business are known as operational systems Information systems that provide information to allow the management to allocate resources effectively are known as tactical systems Information systems that support the strategic plans of a business are known as strategic planning systems
Sales listing Sales transactions Inventory Update Old Inventory master
Reorder report
New Inventory master
An inventory update system
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem and other subsystems Outputs of one subsystem become the inputs of another subsystem If the outputs of one subsystem are incorrect, the next subsystem will be affected
.
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