Management information system

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2.  In business and organizations is the function
that coordinates the efforts of people to
accomplish goals and objectives using
available resources efficiently and effectively.
Management
comprises planning, organizing, staffing, lead
ing or directing,
and controlling an organization or initiative
to accomplish a goal.
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3.  Information system (IS)
◦ A set of interrelated components that collect,
manipulate, and disseminate data and information,
and provide feedback to meet an objective
◦ Examples: ATMs, airline reservation systems,
course reservation systems
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4.  Information is one of an organization’s most
valuable resources
 Information is different from data
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5.  Data: raw facts
 Information: collection of facts organized in
such a way that they have value beyond the
facts themselves
 Knowledge: awareness and understanding of
a set of information and ways that
information can be made useful to support a
specific task or reach a decision
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Table 1.1: Types of Data

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Figure 1.2: The Process of Transforming Data into Information
Data, Information, and Knowledge
(continued)

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Table 1.2: Characteristics of Valuable Information

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Table 1.2: Characteristics of Valuable Information (continued)

10.  Value of information is directly linked to how
it helps decision makers achieve their
organization’s goals
 For example, value of information might be
measured in:
◦ Time required to make a decision
◦ Increased profits to company
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11.  System
◦ A set of elements or components that interact to
accomplish goals
 Components of a system
◦ Input
◦ Processing
◦ Output
◦ Feedback
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Figure 1.3: Components of a System

13.  Efficiency: measure of what is produced
divided by what is consumed
 Effectiveness: extent to which system attains
its goals
 System performance standard: a specific
objective of the system
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Figure 1.5: The Components of an Information System

15.  Input: activity of gathering and capturing raw
data
 Processing: converting or transforming data
into useful outputs
 Output: production of useful information,
usually in the form of documents and reports
 Feedback: output that is used to make
changes to input or processing activities
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16.  An information system can be:
◦ Manual
◦ Computerized
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17.  Computer-based information system (CBIS)
◦ A single set of hardware, software, databases,
telecommunications, people, and procedures that
are configured to collect, manipulate, store, and
process data into information
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Figure 1.6: The Components of a Computer-Based Information System