Information System Concepts
James A. O'Brien defines an information system very simple as "a set of people, procedures, and resources that collects, transforms, and disseminates information in an organization." Figure 83 illustrates an information system model.
"An information system uses the resource of hardware (machines and media), software (programs and procedures), and people (specialists and end users) to perform input, processing, output, storage, and control activities that transform data resources into information products" (James A. O'Brien).
This information system model helps tie together the major components and activities of all types information systems.
Information Systems For Management Decision Making
The concept of management information systems (MIS) originated in the 1960s and became the byword of almost all attempts to relate computer technology and systems theory to data processing in organizations.
The term management information systems (MIS) has been used differently various authors. For example, Stoner and Wankel used definition:
"...MIS is a formal method of making available to management the accurate and timely information necessary to facilitate the decisionmaking process and enable the organization's planning, control, and operational function to be carried out effectively."
The use of the word "formal" in this definition is not intended to negate the importance of the informal communication network on the organization's control mechanism.
Many writers use this term as a synonym for information systems and reserve the term "management information systems" for the more narrow meaning use as systems "that provide routine summary reports in the firm's performance."
On the basis of work researchers Kenneth C. Laudon and Jane Price Laudon, in this chapter I use the term "information systems (IS)" as the overall term denoting all computerbased systems related to the various levels of management:
An information systems (IS) can be defined as a set of interrelated components working together to collect, retrieve, process, store, and disseminate information for the purpose of facilitating planning, control, coordination, and decision making in businesses and other organizations (Kenneth C. Laundon and Jane Price Laudon).
In turn, I use term "management information systems" for the more narrow meaning just described above.