MANAGEMENT INFORMATION SYSTEM

INFORMATION QUALITY DIMENSIONS OF INFORMATION QUALITY VALUE OF INFORMATION PROCESS OF INFORMATION GENERATION AND COMMUNICATION INFORMATION AND ITS CONCEPTS

Information is a product of data processing. The quality of information is high, if it creates impact leading to attention, decision and action. The quality of information can be measured on the four dimensions viz., utility, satisfaction, error and bias. The utility dimensions have four facets- the form, time, access and possession. If the information is represented in the form the manager requires, then its utility increases. and if it is available when needed, the utility is optimised. INFORMATION QUALITY

THERE ARE THREE IMPORTANT DIMENSIONS FOR MIS: (i)ECONOMIC DIMENSION: it refers to the cost of information and its benefits. The generation of information costs money. To determine the generation of information in a organistaion a cost- benefit analysis should be undertaken. Measuring cost and benefit of information is difficult because of intangible characteristics of information. However, the following aspects of information may be useful: COST OF INFORMATION: It includes cost of acquiring data, cost of maintaining data, cost of generating information and cost of communication information Thus, for the system with low response time, the cost is high. The cost also depends on accuracy, speed of generation etc. The costs are higher compared to the systems with relatively low accuracy. DIMENSIONS OF INFORMATION

VALUE OF INFORMATION: The information has a cost for its acquisition and maintenance. Thus before a particular piece of information is acquired, decision maker must know its value. The information has a perceived value in terms of decision making. The decision maker feels more secured when additional information is received in case of decision making under uncertainty or risk. PERFECT INFORMATION: it is known as perfect information if it wipes out uncertainty or risk completely. however, perfect information is a myth. The value of information is the value of the change in decision behaviour because of the information. value of information= cost to get information-benefit. Given a set of possible decisions, a decision maker will select one on the basis of the available information. If the new information causes a change in the decision, then the value of the information is the difference in the value between outcome of the old decision and that of new decision, less the cost obtaining the new information. The value of the additional information making the existing information perfect(VPI) VPI= (V2-V1) – (C2-C1) where V is the value of the information and C is the cost of obtaining the information. V1 and C1 relate to one set of information V2, C2 relates to the new set. In MIS, the concept of value information is used to find out the benefit of perfect information and if the value is significant, it would not be worth collecting the additional information.

(II)BUSINESS DIMENSION: Different types of information are required by managers at different levels of the management hierarchy. The information needs of managers at strategic planning levels are altogether different that those of operational control managers. It is because of the fact that managers at different levels are required to perform different functions in an organisation. (III)TECHNICAL DIMENSION: this dimension of information refers to the technical aspects of the database.it includes the capacity of database, response time, security, validity, data inter relationship etc.

Information has a great impact on decision making, and hence its value is closely tied to the decisions that result from it uses. Information does not have an absolute universal value. Its value is related to those who use it, when it is used. And in what situation it is used. In this sense, information is similar to other commodities. For example: the value of a glass of water is different for someone who has lost his way in artic glaciers and for the wanderer in the Sahara desert the concept of normative value of information of information has been developed by economists and statisticians and is derived from decision theory. The decision theory stipulates that the value of the additional information is the value of the change in the decision behaviour, resulted by the information. Less the cost of obtaining the information. VP1= (V2-V1) – (C2-C1) Where V is the value where V is the value of the information and C is the cost of obtaining the information. V1 and C1 relate to one set of information V2, C2 relates to the new set. If the VP1 is very high, then it is beneficial to serve the additional information need. VALUE OF INFORMATION

Acc. To DAVIS AND OLSON: “information is a data that has been processed into a form that is meaningful to recipient and is of real or perceived value in the current or the prospective action or decision of recipient” PROCESS OF INFORMATION GENERATION AND COMMUNICATION

DATA PROCESSING INFORMATION Information is the vital component of MIS and is considered as a valuable resource required by management in order to run a business organisation. The relation of data to information is that raw material to finished product. For example;

However., the concept of data and information is a relative one. The analogy of raw material to finish product illustrates further that information for one person may be data provided by the other person. For example: withdrawal slip may be information for a cashier or teller of a bank but it is raw data for the branch manager. Similarly, the role may also change over the period of time. The three levels of management perform different functions in an organistaion, accordingly they will require different types of information. The three levels of management over a continuum, with top management at one end and operating management at the other. Middle management as always, falls in between, having some elements of both. The type of information being utilised by each level of management is in accordance with the nature of jobs performed by managers in their respective levels. For example: the top level management is responsible for formulating strategies, policies and objectives for the entire organisation

1.AN INFORMATION SOURCE: presumably a person who creates a message 2.THE MESSAGE: which is sent by the information source and received by the destination. 3.AN TRANSMITTER: a simplest transmission system that is associated with the face to face communication, has at least two layers of transmission. The second layer, which might also be described as a channel, is built of the air and light that enable the transmission of those signals from one person to another. 4. THE SIGNAL: which flows through a channel. There may be multiple parallel signals, as in case face to face interaction where sound and gesture involve different signal systems that depend on different channels and modes of transmission. PROCESS OF COMMUNICATION

5.A CARRIER OR CHANNEL: which is represented by the small unlabeled box in the middle of the model. The most commonly used channels include air, light, electricity, radio waves, papers, and postal systems. 6.NOISE: in the form of secondary signals that obscure or confuse the signal carried. Today we have media at least some media which is noise free that compressed signals are constructed with an absolutely minimal amount of information and little likelihood of signal loss. 7.A RECIEVER: the receiving telephone instruments. In face to face communication a set of ears( sound) and eyes(gesture). In television, several layers of receiver, including an antenna and a television set. 8.A DESTINATION: presumably a person who consumes and processes the message.

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