University of Education, Winneba

UNIVERSITY OF
EDUCATION, WINNEBA
School of Business
BBA124
Management Information
System
Fundamental concept of information system
DANIEL OPOKU Lecture 1
ideas4danny@gmail.com
Course Description
• This course helps students see the connection between information

systems (IS) and business performance. The use of information and
communication technologies (ICT) by individuals and organizations
dominates the business world. There is a fundamental change going
on in the way that organizations run businesses and interact with
each other.
• The aim of the course is to enable students to assess the

opportunities and problems that managers in a wide range of
organizations face as they attempt to use these IT applications to
add value to their businesses.
DANIEL OPOKU DANIEL OPOKU

• Objective for Todays Class
1. Define Information System in Business.

2. Importance of information systems
3. Components of an Information System
4. Information System Resources
5. Information System Activities
6. Types of Information Systems
7. Managerial Challenges of IT

Learning Management System (LMS)

• Presentation
• Decent Dressing
• Very clear contents presentation in PowerPoint
• No Body Shaking
• No mannerism This man
won kill us!
• No Sweating The paper
hard rough

Management
• Word “management” identifies a special

group of people whose job is to direct the
effort and activities of other people toward
common objective
• Management is the process of coordinating

work activities so that they are completed
efficiently and effectively with and through
other people.

Information
• Information is data that has been manipulated

to be useful to someone.
• Information must have value.
• Information tells people something they don’t
already know or confirms something that they
suspect.
• Converting data to Information may involve any
of the following processes
 Aggregation and Manipulation
 Analysis
Attribute of Valuable Information
• Accessible- Authorized users should have

access
• Accurate- free of error
• Complete – All important facts must be present
• Economical – returns must justify the cost of
production
• Relevant – Must relate to the use context.
• Reliable - factually represent the phenomenon
• Secure- Unauthorized users should not have
access
Information Proverb
• The information we have

is not what we want.
The information we want is not the
information we need.
The information we need
is not available.
Hence, there is no information.

System
• A system is a group of interrelated components
working together toward a common goal by
accepting inputs and producing output in an
organized transformation process.
• Characteristics of a useful system

• A system is a whole.
• Components of a system interact.
• Systems are goal seeking.
• Systems have input/output.
• System must be controlled..
• Systems exhibit differentiation

Information System
• Information Systems are combinations of hardware,
software, and telecommunications networks that
people build and use to collect, create, and distribute
useful data, typically in organizational settings.
• Information Systems are interrelated components

working together to collect, process, store, and
disseminate information to support decision making,
coordination, control, analysis, and visualization in an
organization.

Information System
• Many organizations have information systems which are
entirely manual. Other systems are computer-based
information systems that rely on information technology
as well as humans for their operations. Information
systems need not be necessarily computer-based, but often
they are.
• The determining factor is whether an information system

can be improved by including IT-based processing
capability. If a manual system can perform a task efficiently
and without error, there may be little reason to use IT.

The Components of Information System
People Resources
• Specialists-systems analysts, programmers, computer
operators.
• End users - anyone else who uses information systems.
Hardware Resources
• Machines - computers, video monitors, magnetic disk
drive, printers, optical scanners.
• Media – floppy disks, magnetic tape, optical disks,
plastic cards, paper forms.
Network resources
• communications media, communication processors,
network access and control software.
The Components of Information System
Software Resources
• Programs - operating system programs,
spreadsheet programs, word processing programs,
payroll programs.
Procedures
• Data entry procedures, error correction
procedures, pay check distribution procedures
Data Resources
• Product description, customer records, employee
files, inventory databases.

Information System Resource
• This is similar to component of information system

Information System Activities
• Input: Activities that capture raw data

• Processing: Activities converting raw data
into meaningful information. It may be
calculation, analysis, or storage.
• Output: Activities that transfer information
to users.
• Feedback: Activities that use information
from the system to make changes to input
and processing activities.

Student grading system
Course Code Result Compilation

Students receive results
Student IDs Assign Grade Points
Academic registrar notified of
Student Grades Calculate Grade Point
below target performers
Average
Feedback
Misclassified results

• Try questions
• Identify the activities in the following information

systems
• Airline Reservation System
• Government of Ghana Payroll System
• Automated Vehicle Parking System
• Inventory Control System

Importance of Information System
• Operational Excellence – businesses can constantly improve

their efficiency of their operations in order to achieve higher
profitability. They can do this by constantly having the correct
amount of stock in store so consumers can always get want
they want.
• New product services and business models – I.S systems play a

major role for businesses in creating new products and
services. New business models can be created and these can
describe how a company produce, create and sell there
products.
• Customer and Supplier intimacy – the better services a

company provides its consumers with more likely they are
too come back to them and as result the more they will
buy off the supplier therefore creating a good relationship
with both parties.
• Improved decision making – I.S systems make it possibly

for managers to use real time data when making better
decisions and not have to waste time looking for
information.

• Competitive advantage – if companies achieve any of

these 6 reasons to use I.S they will generally create a
competitive advantage over their rivals.
• Day to Day survival – business invest in these

systems to make their jobs as easy as possibly. An
example is commercial bank introduced the first ATM
machine to make it easier for customers to access
their money and to cut down queues in their banks.

Classification of Information Systems
In any given organization information system can be classified based on
the usage of the information. Therefore, an information system in an
organization can be divided into operations support system and
management support system.
Information Systems
Operations Support Management

Systems Support Systems

Operations
Support Systems
Transaction Process Enterprise

Processing Control Collaboration
Systems Systems Systems
Types of Information
Systems
Management
Support Systems
Management Decision Executive

Information Support Information
System System System
Types of Information
Systems
Major types of information System
• Executive Support Systems (ESS)

• Decision Support Systems (DSS)
• Management Information Systems (MIS)
• Transaction Processing Systems (TPS)
Other types of Information Systems

Office Information Systems
Integrated Systems
Expert Systems

Transaction Processing Systems - A
• A transaction processing system (TPS) is an information system that

captures and processes data generated during an organization’s day-
to-day transactions. A transaction is a business activity such as a
deposit, payment, order or reservation.
• Example
• Clerical staff typically perform the activities associated with
transaction processing, which include the following
• Recording a business activity such as a student’s
registration, a customer’s order, an employee’s
timecard or a client’s payment.

Transaction Processing Systems – B
• The first transaction processing systems usually used batch

processing. With batch processing, transaction data is collected
over a period of time and all transactions are processed later, as a
group.
• Example
• The registration administrative assistant enters your desired
schedule and the computer immediately prints your statement of
classes. The invoices, however, often are printed using batch
processing, meaning all student invoices are printed and mailed at a
later date.

Management Supports System
Management Information System:

• MIS is an information system that generates accurate, timely
and organized information, so managers and other users can
make decisions, solve problems, supervise activities, and track
progress. It is sometimes is called a management reporting
system (MRS).
• Examples: Sales analysis,

production performance,
cost trend reporting systems.

Management Information System

Decision Support Systems
• A decision support system (DSS) is an information system

designed to help users reach a decision when a decision-making
situation arises. A decision support system uses data from
internal and/or external sources.
• Internal sources of data might include sales, manufacturing,

inventory, or financial data from an organization’s database.
Data from external sources could include interest rates,
population trends, and costs of new housing construction or raw
material pricing.
Executive Information Systems
• Executive information system (EIS), also known as executive

support system is designed to support the information needs of
executive management. Information in an EIS is presented in
charts and tables that show trends, ratios, and other managerial
statistics.
• Furthermore, it is exclusively a display technology, oriented to

presenting static reports graphs, and textual information on
demand. It offers no analysis capabilities to help the executive
explain, diagnose, and understand the information presented to
DANIEL OPOKU
themOPOKU
DANIEL
Levels of Managements/Types of information System

Assignment
1. What are some of the managerial Issues of Information

System.


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UNIVERSITY OF

• This course helps students see the connection between information

• The aim of the course is to enable students to assess the

DANIEL OPOKU DANIEL OPOKU

1. Define Information System in Business.

DANIEL OPOKU DANIEL OPOKU

DANIEL OPOKU DANIEL OPOKU

DANIEL OPOKU DANIEL OPOKU

• Word “management” identifies a special

• Management is the process of coordinating

DANIEL OPOKU DANIEL OPOKU

• Information is data that has been manipulated

• Accessible- Authorized users should have

• The information we have

DANIEL OPOKU DANIEL OPOKU

• Characteristics of a useful system

DANIEL OPOKU DANIEL OPOKU

• Information Systems are interrelated components

DANIEL OPOKU DANIEL OPOKU

• The determining factor is whether an information system

DANIEL OPOKU DANIEL OPOKU

DANIEL OPOKU DANIEL OPOKU

DANIEL OPOKU DANIEL OPOKU

• Input: Activities that capture raw data

DANIEL OPOKU DANIEL OPOKU

Student grading system

Course Code Result Compilation

DANIEL OPOKU DANIEL OPOKU

• Identify the activities in the following information

DANIEL OPOKU DANIEL OPOKU

• Operational Excellence – businesses can constantly improve

• New product services and business models – I.S systems play a

• Customer and Supplier intimacy – the better services a

• Improved decision making – I.S systems make it possibly

DANIEL OPOKU DANIEL OPOKU

• Competitive advantage – if companies achieve any of

• Day to Day survival – business invest in these

DANIEL OPOKU DANIEL OPOKU

Operations Support Management

DANIEL OPOKU DANIEL OPOKU

Transaction Process Enterprise

Management Decision Executive

• Executive Support Systems (ESS)

Other types of Information Systems

DANIEL OPOKU DANIEL OPOKU

• A transaction processing system (TPS) is an information system that

DANIEL OPOKU DANIEL OPOKU

• The first transaction processing systems usually used batch

DANIEL OPOKU DANIEL OPOKU

Management Information System:

• Examples: Sales analysis,

DANIEL OPOKU DANIEL OPOKU

DANIEL OPOKU DANIEL OPOKU

• A decision support system (DSS) is an information system

• Internal sources of data might include sales, manufacturing,

• Executive information system (EIS), also known as executive

• Furthermore, it is exclusively a display technology, oriented to

DANIEL OPOKU DANIEL OPOKU

1. What are some of the managerial Issues of Information

DANIEL OPOKU DANIEL OPOKU

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