Management Information Systems – Introduction

Vocabulary flashcards covering fundamental terms and concepts introduced in the lecture on Management Information Systems (MIS).

Management Information System (MIS)

A system that provides information needed to manage organizations efficiently and effectively, integrating IT, information and people.

System

A group of elements integrated to achieve a common objective by transforming inputs into outputs.

Input Element

Resources fed into a system to be transformed into outputs.

Transformation Element

The process that converts inputs into outputs within a system.

Control Mechanism

Component that monitors and regulates the transformation process via feedback to ensure objectives are met.

Feedback Loop

The flow of information from system outputs back to the control mechanism.

Objectives (System)

Strategic, long-term goals a system is designed to achieve.

Output Element

The results produced by the transformation of inputs in a system.

Open System

A system that exchanges resources with its environment.

Closed System

A self-contained system with no interaction with its external environment.

Physical System

A system composed of tangible resources and a physical location, e.g., a business firm.

Conceptual System

A system using intangible resources—data, information, IT, personnel—to represent a physical system.

Subsystem

A smaller system that exists within a larger system.

Supersystem

A larger system that contains one or more subsystems.

Systems Thinking

A managerial mindset that views business operations as interconnected systems within a wider environment.

Synergy (Human-Computer)

Combined human and computer resources producing greater output than if used separately.

Data

Raw facts or figures that have little inherent meaning to users.

Information

Processed data that is meaningful and useful for decision making.

Information Technology (IT)

The combination of computer hardware, software and telecommunications used to process and transmit data.

Information System (IS)

An arrangement of people, data, processes, communications and IT that supports operations, problem-solving and decision-making.

Transaction Processing System (TPS)

IS application that captures and processes data about routine business transactions or events.

Business Process Reengineering (BPR)

Study, analysis and redesign of fundamental business processes to cut costs and add value.

Management Information System (category)

IS application that produces scheduled, formatted management-oriented reports.

Decision Support System (DSS)

IS application providing decision-oriented information for unstructured decision situations; includes Executive Information Systems.

Data Warehouse

Read-only informational database populated by data from TPS and MIS for DSS analysis.

Expert System (ES)

IS that captures and replicates expert knowledge to make programmed decisions using artificial intelligence.

Office Automation System (OAS)

IS that supports a wide range of office activities to improve workflow and communication.

Executive Support System (ESS)

Reporting tool offering quick access to summarized information from all organizational levels for executives.

Strategic Management Information System (SMIS)

Computer system developed to implement business strategies and create competitive advantage.

Information Resources – Hardware

Physical computer equipment, including input, output, storage and communication devices.

Information Resources – Software

Sets of instructions directing computers how to process, display and store data and information.

Information Resources – Telecommunications

Hardware and software enabling rapid electronic transmission of text, images, sound and animation.

Information Resources – People

IS professionals and users who analyze needs, design, operate and maintain information systems.

Information Resources – Procedures

Rules and guidelines for secure and efficient IS operations, including priorities and security measures.

Strategic Management

Process of analysis, decisions and actions to create and sustain long-term competitive advantage.

Competitive Advantage

Condition that places an organization ahead of rivals by offering greater value through lower cost or superior benefits.

Cost Advantage

Strategy focused on securing lower costs (e.g., labor, average costs) than competitors.

Market Dominance

Achieving the largest market share via internal growth, acquisitions or mergers.

Price Leadership

Dominating an industry by setting lower retail prices that competitors follow.

Reengineering (Strategy)

Radical redesign of business processes to enhance performance (Business Process Reengineering).

Downsizing

Selling or closing unwanted parts of a business to streamline operations.

Delayering

Flattening management structures to remove bureaucracy and speed decision making.

Restructuring

Comprehensive rethinking of how a business is organized.

Supplier

External party providing materials, machines, services or information used in a firm’s production.

Customer

Individual or entity that consumes the products or services produced by a firm.

Labor/Trade Union

Organization representing skilled and unskilled workers’ interests within a firm.

Financial Community

Institutions such as banks and investors influencing a firm’s access to money resources.

Porter’s Competitive Forces Model

Framework identifying five forces—competitors, new entrants, substitutes, suppliers, customers—that shape a firm’s competitive environment.