1. Introduction Information Technology Special Curriculum: I

2. Essential of Information The process of developing information begins with gathering some type of facts or statistics called data. Once gathered, data typically are analyzed in some manner. Then, information is the set of conclusions derived from analysis of data. For management, information is the set of conclusions derived from analysis of data that relate to the operation of an organization. The information that managers received heavily influences managerial decision making, which in turn determines the activities that will be performed within organization.

3. Factors Influencing the Value of Information Four primary factors determine the value of information – Information Appropriateness – Information Quality – Information Timeliness – Information Quantity

4. Information Appropriateness Information appropriateness is the degree to which information is relevant to the decision making situation the manager faces. Characteristics of Information that influence the appropriateness of information in the various decision making situations. CharacteristicsOperational ControlManagement ControlStrategic Planning SourceLargely InternalExternal ScopeWell defined, narrowedVery wide Level of aggregationDetailedAggregate Time horizonHistoricalFuture CurrencyHighly CurrentQuite old/historical Required accurracyHighLow Frequency of useVery FrequentInfrequent

5. Information Quality Information quality is the degree to which information represents reality. The more closely information represents reality, the higher the quality and the greater the value of that information. The most significant factor in producing poor-quality information is data contamination. Inaccurate data gathering can result in very low quality information.

6. Information Timeliness Information timeliness is the extent to which the receipt of information allows decisions to be made and action to be taken so the organization can gain some benefit from processing information.

7. Information Quantity Information Quantity is the amount of decision- related information a manger processes. Information overload (too much information to consider properly) can make managers afraid to make decisions called “paralysis by analysis.”

8. Management Information System (MIS) An MIS is a system designed to provide selected decision-oriented information needed by management to plan, control, and evaluate the activities of the corporation. It is designed within a framework that emphasizes profit planning, performance planning, and control at all levels. It contemplates the ultimate integration of required business information subsystems, both financial and nonfinancial within the company.

9. The Six Steps to Operate an MIS Determine Information Needed Determining and Gathering Appropriate Data Summarizing Data Analyzing Data Transforming Information Using the Information

10. Appropriate MIS Information under Various Organizational Circumstances Organizational LevelType of ManagementManager’s Organizational Objectives Appropriate Information From MIS How MIS Information is Used Top ManagementCEO, President, Vice President Survival of the firm, profit, growth, accumulation and efficient use of resource Environmental data and trends, summary reports of operations, exception reports of problems, forecasts Corporate objectives, policies, constraints, decisions on strategic plans, decisions on control of the total company Middle ManagementMiddle managers in such area as marketing, production, and finance Allocation of resources to assigned tasks, establishment of plans to meet operating objectives, control of operations Summarizes and exception reports of operating results, corporate objectives, policies, constrains, decisions on strategic plans, relevant actions and decisions of other middle managers Operating plans and policies, exception reports, operating summaries, control procedures, decisions on resource allocations, actions and decisions related to other middle managers First-Line ManagementProduction of goods to meet marketing needs, supplying budgets, estimates of resource requirements, movement and storage of materials Summary reports of transactions detailed reports of problems operating plans and policies, control procedures, actions and decisions of related first- line managers Exception reports, progress reports, resource requests, dispatch orders, cross- functional reports

11. Plan for Establishing a Hypothetical MIS Appoint feasibility study team Set long-range plans Document requirements and tests established information flow Discuss problem with staff Contract vendors if necessary Evaluate vendor’s recommendation Review proposal with management Are there sufficient benefits to proceed? Making detailed study of system Evaluate personal skills needed Determine space/time requirements Establish final objectives and obtain approval Continue Stop

12. Plan for Establishing a Hypothetical MIS Develop training program and schedule programmers Fill personal needs Prepare glossary of terms Develop procedures and controls Establish programming task and interfaces Assign personnel to tasks Develop detailed flowcharts Determine hardware requirements and layout Commence programming Develop test data Develop manuals, forms, etc. Test and debug system Do live test of system Accept system Implement and train users Operation update Order equipments Deliver hardware