Management Information Systems

Management information systems encompass a broad and complex topic. To make this topic more manageable, boundaries will be defined. First, because of the vast number of activities relating to management information systems, a total review is not possible. Those discussed here is only a partial sampling of activities, reflecting the author's viewpoint of the more common and interesting developments. Likewise where there were multiple effects in a similar area of development, only selected ones will be used to illustrate concepts. This is not to imply one effort is more important than another. Also, the main focus of this paper will be on information systems for use at the farm level and to some lesser extent systems used to support researchers addressing farm level problems (e.g., simulation or optimization models, geographic information systems, etc.) and those used to support agribusiness firms that supply goods and services to agricultural producers and the supply chain beyond the production phase

Secondly, there are several frameworks that can be used to define and describe management information systems. More than one will be used to discuss important concepts. Because more than one is used, it indicates the difficult of capturing the key concepts of what is a management information system. Indeed, what is viewed as an effective and useful management information system is one environment may not be of use or value in another.

Lastly, the historical perspective of management information systems cannot be ignored. This perspective gives a sense of how these systems have evolved, been refined and adapted as new technologies have emerged, and how changing economic conditions and other factors have influenced the use of information systems.

Before discussing management information systems, some time-tested concepts should be reviewed. Davis offers a commonly used concept in his distinction between data and information. Davis defines data as raw facts, figures, objects, etc. Information is used to make decisions. To transform data into information, processing is needed and it must be done while considering the context of a decision. We are often awash in data but lacking good information. However, the success achieved in supplying information to decision makers is highly variable. Barabba, expands this concept by also adding inference, knowledge and wisdom in his modification of Haechel's hierarchy which places wisdom at the highest level and data at the lowest. As one moves up the hierarchy, the value is increased and volume decreased. Thus, as one acquires knowledge and wisdom the decision making process is refined. Management information systems attempt to address all levels of Haechel's hierarchy as well as converting data into information for the decision maker. As both Barabba and Haechel argue, however, just supplying more data and information may actually be making the decision making process more difficult. Emphasis should be placed on increasing the value of information by moving up Haechel's hierarchy.

Another important concept from Davis and Olsen is the value if information. They note that “in general, the value of information is the value of the change in decision behavior caused by the information, less the cost of the information.” This statement implies that information is normally not a free good. Furthermore, if it does not change decisions to the better, it may have no value. Many assume that investing in a “better” management information system is a sound economic decision. Since it is possible that the better system may not change decisions or the cost of implementing the better system is high to the actual realized benefits, it could be a bad investment. Also, since before the investment is made, it is hard to predict the benefits and costs of the better system, the investment should be viewed as one with risk associated with it.

Reference

Stephen B. Harsh, Department of Agricultural Economics Michigan State University, 2019

Information Systems for Business

Defining Information Systems

Almost all programs in business require students to take a course in something called information systems. But what exactly does that term mean? Let’s take a look at some of the more popular definitions, first from Wikipedia and then from a couple of textbooks :

• Information systems (IS) is the study of complementary networks of hardware and software that people and organizations use to collect, filter, process, create, and distribute data.
• 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 viualization in an organization.

The Components of Information Systems

As I stated earlier, I spend the first day of my information systems class discussing exactly what the term means. Many students understand that an information system has something to do with databases or spreadsheets. Others mention computers and e-commerce. And they are all right, at least in part: information systems are made up of different components that work together to provide value to an organization.

The first way I describe information systems to students is to tell them that they are made up of five components: hardware, software, data, people, and process. The first three, fitting under the category technology, are generally what most students think of when asked to define information systems. But the last two, people and process, are really what separate the idea of information systems from more technical fields, such as computer science. In order to fully understand information systems, students must understand how all of these components work together to bring value to an organization.

A.    Technology

Technology can be thought of as the application of scientific knowledge for practical purposes. From the invention of the wheel to the harnessing of electricity for artificial lighting, technology is a part of our lives in so many ways that we tend to take it for granted. As discussed before, the first three components of information systems – hardware, software, and data – all fall under the category of technology. Each of these will get its own chapter and a much lengthier discussion, but we will take a moment here to introduce them so we can get a full understanding of what an information system is.

B.     Hardware

Information systems hardware is the part of an information system you can touch – the physical components of the technology. Computers, keyboards, disk drives, iPads, and flash drives are all examples of information systems hardware. We will spend some time going over these components and how they all work together in chapter 2.

C.    Software

Software is a set of instructions that tells the hardware what to do. Software is not tangible – it cannot be touched. When programmers create software programs, what they are really doing is simply typing out lists of instructions that tell the hardware what to do. There are several categories of software, with the two main categories being operating-system software, which makes the hardware usable, and application software, which does something useful. Examples of operating systems include Microsoft Windows on a personal computer and Google’s Android on a mobile phone. Examples of application software are Microsoft Excel and Angry Birds. Software will be explored more thoroughly in chapter 3.

D.    Data

The third component is data. You can think of data as a collection of facts. For example, your street address, the city you live in, and your phone number are all pieces of data. Like software, data is also intangible. By themselves, pieces of data are not really very useful. But aggregated, indexed, and organized together into a database, data can become a powerful tool for businesses. In fact, all of the definitions presented at the beginning of this chapter focused on how information systems manage data. Organizations collect all kinds of data and use it to make decisions. These decisions can then be analyzed as to their effectiveness and the organization can be improved. Chapter 4 will focus on data and databases, and their uses in organizations.

E.     Networking

Besides the components of hardware, software, and data, which have long been considered the core technology of information systems, it has been suggested that one other component should be added: communication. An information system can exist without the ability to communicate – the first personal computers were stand-alone machines that did not access the Internet. However, in today’s hyper-connected world, it is an extremely rare computer that does not connect to another device or to a network. Technically, the networking communication component is made up of hardware and software, but it is such a core feature of today’s information systems that it has become its own category. We will be covering networking in chapter 5.

F.     People

When thinking about information systems, it is easy to get focused on the technology components and forget that we must look beyond these tools to fully understand how they integrate into an organization. A focus on the people involved in information systems is the next step. From the front-line help-desk workers, to systems analysts, to programmers, all the way up to the chief information officer (CIO), the people involved with information systems are an essential element that must not be overlooked. The people component will be covered in chapter 9.

G.    Process

The last component of information systems is process. A process is a series of steps undertaken to achieve a desired outcome or goal. Information systems are becoming more and more integrated with organizational processes, bringing more productivity and better control to those processes. But simply automating activities using technology is not enough – businesses looking to effectively utilize  information systems do more. Using technology to manage and improve processes, both within a company and externally with suppliers and customers, is the ultimate goal. Technology buzzwords such as “business process reengineering,” “business process management,” and “enterprise resource planning” all have to do with the continued improvement of these business procedures and the integration of technology with them. Businesses hoping to gain an advantage over their competitors are highly focused on this component of information systems. We will discuss processes in chapter 8.

Materi Sistem Informasi Geografis

1. Apa Itu GIS
2. Seputar Sistem Informasi Geografis
3. Data pada Sistem Informasi Geografis

KARAKTERISTIK SISTEM

Keluaran sistem adalah hasil dari energi yang diolah dan diklasifikasikan menjadi keluaran yang berguna dan sisa pembuangan. Contoh komputer menghasilkan panas yang merupakan sisa pembuangan, sedangkan informasi adalah keluaran yang dibutuhkan. Suatu sistem menjadi bagian pengolah yang akan merubah masukkan menjadi keluaran. Sistem produksi akan mengolah bahan baku menjadi bahan jadi, system akuntansi akan mengolah data menjadi laporan-laporan keuangan.

Suatu sistem pasti mempunyai tujuan (goal) atau sasaran (objective). Sasaran dari sistem sangat menentukan input yang dibutuhkan sistem dan keluaran yang akan dihasilkan sistem.