Strategic Management: Formulation and Implementation

First Line Management Information Needs

For firstlevel managers, the MIS must provide highly accurate and detailed information on a daily or weekly basis. Not surprisingly then, they require information that comes mainly from internal sources, focuses on shortterm issues, and is oriented toward fairly structured decisions.

Computerbased Information System (cbis)

Managers receive information for decision making in a variety of forms. The most formal information channel is the firm's computer based information system (CBIS), which uses electronic computing technology to create the information systems.

Use of computers for the solution of many organizational problems has grown rapidly. Although computers were traditionally used for transaction processing functions, recent technological advances have made it possible for managers to have direct access to computer power through a decision support systems.

Managers should be aware of these systems and technological problems of systems design and installation. However, the concern of computer information system and data processing problems are beyond the scope of an introductory text. Therefore, I shall focus only on general types of computers information systems.

An information system is integral part of an organization and is a product of three components:

Organizations shape information systems in several ways. They are hierarchical and structured. Different levels and different specialities in an organization create different interests and different point of view, which often conflict. Out of these conflicts, politics, and eventual compromise come information systems.
People use information from computerbased systems in their jobs, integrating it into the business environment.
The technology is the means by which data are transformed and organized for business use.

An information system can be an entirely manual system. Computers, however, have replaced manual technology for processing large volumes of data or for complex processing work. The information systems described in this text are computer based, that is, they rely on some form of computer technology for input, output, processing, and storage, computer hardware, computer software, storage technology and telecommunication technology.

Computer hardware is the physical equipment used for the input, processing and output work in an information system.

Computer software consists of programmed instructions that coordinate the work of computer hardware components to perform the business processes required by each business information system.

Storage technology includes both the physical media for storing data, such as magnetic or optical disk or tape, and also the software governing the organization of data on these physical media.

Telecommunications technology is used to link different pieces of hardware and to transfer data from one location to another location. Telecommunication involve both physical media and software that support communication by electronic means.