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Three major changes are altering the business environment:
This can also be referred to as the post-industrial economy.
The nature of organisations is changing in the post-industrial economy.
Changes in the Information Economy
In the USA in 1900 only about 18% of the labour force worked in white collar jobs, a little over 40% in blue collar jobs. By 1997 nearly 60% of workers were white collar and 25% blue collar.
Information systems consist of interrelated components that collect, process, store and distribute information to support decision making and control an organisation.
Below are the definitions of some terms that are fundamental to understanding information systems.
Data:
Raw facts before they have been processed and organised into a form that is understandable by humans.
Information:
Data that have been shaped into a form that is meaningful and useful.
Knowledge:
Information that can be put to use in the real world.
Sometimes the term Computer-Based Information Systems (CBIS) is used to described information systems. This term makes it clear that we are referring to information systems using computer hardware and software for the processing of information.
An organisational and management solution.
It is worth remembering that information systems are more than just computers. Using information systems effectively requires understanding the organisation, management and information technology shaping the systems.
The three main areas to consider are:
Information systems are a part of organisations. Key are the people, structure, operating procedures, politics and culture of the organisation. The organisation coordinates work through formal operating procedures. The hierarchy arranges people in a pyramid structure of increasing authority and responsibility.
Standard Operating Procedures (SOPs):
Formal rules developed over time to guide employees in their work, helping them accomplish tasks. SOPs are often written down but their may also be unwritten, informal oper5ating procedures. Many SOPs may be incorporated into information systems.
Function |
Purpose |
| Sales & Marketing |
Selling the organisation’s products and services. |
| Manufacturing / Operations |
Producing products & services. |
| Finance |
Managing the organisation’s financial assets (cash, stocks, bonds, etc.) |
| Accounting |
Maintaining the organisations financial records (receipts, pay cheques, etc.). Accounting for the flow of funds into and out of the organisation. |
| Human Resources |
Attracting, developing and maintaining the organisation’s labour force. Maintaining employee records. |
Managers perform a range of functions:
Senior Manager:
The top of the organisational hierarchy, responsible for making long-range decisions.
Middle Managers:
The middle top of the organisational hierarchy, responsible for carrying out the plans of senior management.
Monitor the day-to-day activities of the organisation.
Computer hardware and software.
Areas and terms to keep in mind:
Communications systems: mobile technologies, voice over IP, etc.
Emerging technologies.
Storage technology: hard drives, flash drives, etc.
Networks: LANs, WANs, VPN, the Internet.
Information Technology (IT) is one of a number of tools available for managers to use in coping with change and maintaining the organisation. Both physical hardware and software need to be taken into consideration.
Managers will also be required to make decisions over which technologies the organisation needs and therefore which IT systems to purchase or develop.
The perspective of Management Information Systems (MIS) is that of the IT systems that are used by managers to control the organisation, assisting managers in their decision-making.
Management Information Systems; K.C. Laudon & J.P. Laudon; Prentice-Hall Inc.; (2000).
by
Matthew Martin