DR. AMIR HOSSEIN AMIR KHANI 22 DR. ALI ROSTAMI ALI NASERI 23

Transcription

1 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS NOVEMBER 202 VOL 4, NO 7 CONCEPTUAL MODELING OF MANAGEMENT INFORMATION SYSTEMS AND EXAMINES ITS IMPACT ON STRATEGIC DECISIONS OF SENIOR MANAGERS CASE STUDY: RURAL WATER AND WASTEWATER (IRAN-MASHHSD) Abstract DR. AMIR HOSSEIN AMIR KHANI 22 DR. ALI ROSTAMI ALI NASERI 23 The Theme of this paper is to Design a conceptual model for the Rural Water Management Information System (Iran Mashhad) and to examine its impact on strategic decisions of senior managers. Today, information is one of the determinants of power and mastery of information resources in level of Global, national and organizational represents the power of states, organizations and individuals. In today's world, the most important characteristic for a strong community, it is the priority and rates the efficiency of data element. Therefore, to explain the information items needed for the organization's senior managers, we attempted to document information systems Abfar, with common tools such as, data flow diagrams (DFD) and workflow diagrams. And In the final section, with Critical Look, Assessing the current and future trends (to 3 year time horizon), managers to information items, Researcher to explore in this context that which of the items in the design of management information systems (MIS) Has a higher priority in strategic decision making (macro) corporate executives. We conclude with some practical suggestions. Keywords: System; Information System(IS); Management Information System(MIS);Strategic Information System(SIS); decision making; Information items. Introduction The new era this is known to Information age or Informatics, Promising a new world with new ways of applying IT. Information systems are the foundation of doing business today. Most business Firm would not be able to operate without their information system. In a similar way, nonprofit organizations, educational institutions, governments, public administration and many other entities also rely on information system. (Kurbel, 2008, 28). Information systems should be the awareness of managers, and do not provides fatigue and overload for them. Senior executives do not require detailed accounting information. Therefore the design of information systems should be as efficient that while covering all the required information items Managers For a comprehensive decision support, In cases where Managers are attempting to make strategic decisions at the macro level, Do not drown them in information overwhelming without scoring. The lack of standardized methods for designing information systems, Inefficient and redundant data collection methods, Along with the traditional architecture of the information referred to repeatedly in various organizations have been seen, for designers of information systems is a constant concern. In the present study, Good combination of theory and scientific principles to analyze and design management information systems has been used. Therefore in this article, after the statement of problem and the main objectives of this paper, we present the conceptual model used in research and finally, we describe the information systems and management information strategic and Looking for solutions to improve the organization's information system is attached... Statement of Problem The problem arises from the fact that managers are always looking for information and they make decisions based on data related to the topic that will be influential in the development. Equip managers to a correct and reliable information system that will assist management in making decisions, organizational planning and control, It is a historical process, Regardless of the subject matter of historical trends Information Systems, Management 22. PhD in Management (Human Resources)from Tehran University School of Management 23. Student In Master of Science MBA from the Payam Noor University of Tehran (Damavand) Corresponding author, COPY RIGHT 202 Institute of Interdisciplinary Business Research 377

2 NOVEMBER 202 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 4, NO 7 information systems (MISs) are fundamental tools for problem solving and decision making, And the point that if not used as a tool for decision will undermine the quality of decisions? The study seeks to answer the following questions: ) Generally, the organization now has a good management information system? 2) Is logically and Rational, Use the information items from senior managers in Corporate strategic decisions in the current situation and a time horizon ( to 3 years) in the future? 3) What is Priority or in other words, the ranking of information items required by senior managers in the strategic decisions? 2. Literature (Theoretical): 2.. The concept of Data and Information Although Data and Information are used incorrectly instead of each other, but each have a special meaning. The word information can be defined as data that has been put into a meaningful and useful context and communicated to a recipient who uses it to make decisions (Spiratava, 200). Information is live and the same has to be updated all the time and renewable. It is substitutable and can be made to travel. Fig below shows various stages of information Cycle. Input (data) Process (models) Output (information) Data (Captured) Database Recipient Results Decision Action 2.2. Systems concept The information cycle (Shajahan, 2004, 23) Environment Feedback signals Control Control signals Control signals Input Processing Output System boundary (Shajahan, 2004, 45) COPY RIGHT 202 Institute of Interdisciplinary Business Research 378

3 NOVEMBER 202 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 4, NO Define the system A system consists of a number of interrelated components, only few of them can be seen easily. For example, biological system of human body(natural system), oil refinery system(technological system) A system is defined as a group of interrelated components organized with a purpose. (Bagad,2008,3) A System, is a group of elements that have been put together for a common desire to achieve a goal (McLeod, 998,2) 2.4. information systems(is) definitions Information system is defined as group of elements organized with the purpose of supporting management and operational decision making (Bagad, 2008, ) The term information system (IS) derives from the fact that such a system deals with information processing and producing information and making it available to people or other information system that need the information to do their work. An information system (IS) is a computer-based system that processes inputted information or data, stores information, retrieves information, and produces new information to solve some task automatically or to support human beings in the operation, control and decision making of an organization.( Kurbel,2008) Information system is a special type of system is working That uses information technology to receive, transmit, store, retrieve, manipulate, or display information Which results in support of one or a few other system is working(sprague,2003) Need of information system For effective planning and controlling Policy making and decision making Problem solving Planning and scheduling Functions of information system As source of information to help in effective decision making by managers. Acquisition of data from internal and external sources. (Minch,2004,7) A contributor to productivity efficiency and customer satisfaction. IS is useful to achieve success in various functions as finance, operations, marketing, human resource, stores management. To provide useful source of information in developing competitive products. Information system is a dynamic, challenging career opportunity for people Fundamental Role of information system Information systems perform three important functions in a business enterprise. - Support of business operations 2- Support of managerial decision making 3- Support of strategic competitive advantage Fig below shows fundamental roles of IS in business Strategic advantage Managerial decision making Business operation COPY RIGHT 202 Institute of Interdisciplinary Business Research 379

4 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS 2.5. Components of an Information system An Information system has following components: (Bagad,2008,6) - Hardware(machines and media) 2- Software ( programs and procedures) 3- Data(data and knowledge) 4- Network(communication media) 5- People(end user and specialists) NOVEMBER 202 VOL 4, NO 7 All five of components are arranged and interrelated to perform input, process, output, feedback and control that convert data resources into information. Fig.4 shows interrelation between these components. (Bagad, 2008, 3) Network Resources Data storage People Resources Data Resources Process Computer Information product Software Resources Control System Performance Data Resources Hardware Resources 2.6. Management information system(mis) definition A simple definition of Management information system(mis) would then be: a computer-based system that provides flexible and speedy access to accurate data.such a definition would suit any personal, professional, organizational, national or global information system.obviously, the organizational information systems-those pertaining to the planning, operation and control of an enterprise are the most important amongst these.mis refers primarily to such organizational information systems which are generally large, sophisticated, structured,dynamically evolving and of immense commercial value. (Sadagopan,2004,) In our view, MIS involves all these perspectives and, in fact, much more, the three sub-componentsmanagement, information, and systems- together bring to focus clearly and effectively: (Sadagopan,2004,3) -Management emphasizing the ultimate use of such information systems for managerial decision making rather than merely stressing on technology. 2-Information highlighting on processed data rather than raw data and in the context in which it is used by managers and other end users. 3-Systems emphasizing a fair degree of integration and a holistic view COPY RIGHT 202 Institute of Interdisciplinary Business Research 380

5 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS NOVEMBER 202 VOL 4, NO 7 Strategic Decisions Environmental Information Top Top Tactical Decisions Middle Middle Operational Decisions Operational Operational Internal Information Organizational pyramid vs. information pyramid (Sadagopan, ) Need for MIS The MIS provides the information that is required by managers in the organization for effective functioning. The main purpose of MIS is to provide the information support to the managerial functions of an organization.mis designed and implemented with a view(a)to provide the required information support to undertake managerial activities such as planning,staffing, coordination, control and decision making activities;(b) to provide right type of information at the lowest cost and at the right time ;(c) to ensure that managerial activities are provided adequate information support and (d) to avoid information overload and also generating redundant information. (Shajahan,2004,24) Limitations of MIS MIS considers only quantitative factors MIS is less useful for making non-programmed decision MIS is less effective in organizations where information is not being shared with others MIS is less effective due to frequent changes in top management, organizational structure and operational staff. The quality of MIS output is directly proportional to the quality of input data and processes. In a fast changing and complex environment, MIS may not have enough flexibility to update itself quickly. (Shajahan,2004,35) Problem with MIS There is abundant evidence from numerous surveys both in the UK and the USA that existing MISs, often using advanced computer equipment, have had relatively little success in providing management with the information they needed. The typical reasons discovered for this include the following :( Lucey, 2005, 2) Lack of management involvement with the design of the MIS Narrow and/or inappropriate emphasis of the computer system Undue concentration on low- level data processing applications particularly in the accounting area Lack of management knowledge of computers particularly in small and medium sized enterprises(smes) Poor appreciation by information specialists of management s true information requirements and of organizational problems Lack of top management support Strategic Information System(SIS) Definition A strategic information system (SIS) may be defined as any information system which directly assists on organization in achieving its organization strategy and are information system that impact on competitive position of the organization. ( Bagad,2008,25) Key features of the )sis) Decision support systems that enable to develop a strategic approach to align Information Systems (IS) or Information Technologies (IT) with an organization's business strategies Primarily Enterprise resource planning solutions that integrate/link the business processes to meet the enterprise objectives for the optimization of the enterprise resources COPY RIGHT 202 Institute of Interdisciplinary Business Research 38

6 NOVEMBER 202 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 4, NO 7 Database systems with the "data mining" capabilities to make the best use of available corporate information for marketing, production, promotion and innovation. The SIS systems also facilitate identification of the data collection strategies to help optimize database marketing opportunities. The real-time information Systems that intend to maintain a rapid-response and the quality indicators. (Pressman,2005) 3. Research Methods 3.. Research objectives The Villages are the Target missions entrusted to the Rural Water and Wastewater Co. in each province, Due to scattered rural residential areas and very hard going, Providing timely information and their processing for project management for construction and cover and operation of the rural facilities faced with many problems and to spend as much time to prepare and process the information Will cause loss of opportunity and resulting in increased costs and its related social problems. Therefore, research objectives are: ) Investigation and research on the organization's existing information systems 2) Smooth movement of information in organization 3) The proper definition than set of related information systems to improve decision-making process and the planning system 4) Correctly identify the sources and uses of information items Also, Necessity to Implementation of the study because some of the problems are the following: There was no systematic relationship between the different sectors and has led to not be produced a coherent and integrated information at the time needed Most of the reports due to lack of data control, the resulting information and data related to incomplete, are incorrect and repetitious and reliable. Due to lack of appropriate information systems, efficient use of resources and investments are not possible Most senior management time spent reviewing the solution and to fix problems that if there was a proper information system, it could be busy for the cases with more importance Hypotheses. Using Simple Information items in the design of management information systems, has a higher priority in the strategic decisions of managers 2. Using Status Information items in the design of management information systems, has a higher priority in the strategic decisions of managers 3. Using Warning Information items in the design of management information systems, has a higher priority in the strategic decisions of managers 4. Using Planning Information items in the design of management information systems, has a higher priority in the strategic decisions of managers 5. Using Internal operation Information items in the design of management information systems, has a higher priority in the strategic decisions of managers 6. Using External intelligence Information items in the design of management information systems, has a higher priority in the strategic decisions of managers 7. Using externally distributed Information items in the design of management information systems, has a higher priority in the strategic decisions of managers Type of Research Descriptive research- Case study Since the dominant mode of data collection in this type of research is often Questionnaire, in the study also, Have used questionnaires and (Library - field) Studies is used for data collection Statistical population All senior managers of the organization according to organizational structure, that those activities are organized in different deputy. COPY RIGHT 202 Institute of Interdisciplinary Business Research 382

7 NOVEMBER 202 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 4, NO Sampling method: All senior managers in the organization being investigated, i.e. census was conducted Data collection tools: Direct methods such as observation, interviews and questionnaires Indirect methods such as use of documents Scale and range of measurement tools: With considering the hypotheses, in the first questionnaire, for each of information items required by managers, in many information systems in organizations, questionnaire was designed with 5 options in Likert scale, That the options were: very high, high, medium, low, very low. In the second questionnaire, to evaluate the degree of importance and priority ranking of information items was designed, Group AHP 24 method was used to determine the priority information items as follows: SIMPLE Status Warning Planning Internal Operation External Intelligence Externally Distributed SIMPLE Status Warning Planning Second questionnaire MODERATE 4 STRONG Internal Operation External Intelligence Externally Distributed Degree of EQUAL 2 6 V.STRONG 8 EXTREME importance Value Paired comparisons table Reliability and validity of measurement tools Validity of the questionnaire should be noted that in addition to peers the researcher on the subject of study and use a comprehensive questionnaire, to further reinforces these tools, questions and set the stage was designed under the guidance of industrial and academic experts. Cronbach's Coefficient Alpha was used to evaluate the reliability of the questionnaires. That the following results were obtained: k α k k s 2 t i s i 2 Questionnaire Simple information questionnaire Status information questionnaire Warning information questionnaire Planning information questionnaire Internal Operation information questionnaire External Intelligence information questionnaire Externally Distributed information questionnaire Cronbach's Coefficient Alpha Research Variables Dependent Variable (DV): 7 types of information items required by senior managers Independent Variable (IV): Strategic decisions of managers 24. Analytic Hierarchy Process COPY RIGHT 202 Institute of Interdisciplinary Business Research 383

8 NOVEMBER 202 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 4, NO Statistical techniques and software used for analyzing The following software was used to analyze the data: SPSS (V.9) EXCEL (V.2007) EXPERT CHOICE (V.2000) 4. Analysis Result Organizational structure of rural water and wastewater) Abfar) Controller General Assembly Chairman and CEO Area Manager Contract Administration Office of Public Relations Customer Service Administration Protection Administration IT Administration The city's water and wastewater Administration Deputy of support Human Resources Deputy Research and Development Deputy supervising the operation Financial Administration Human resources ad Support and administrative services ad Monitoring water and wastewater projects ad Technical reviews and studies ad Projects and programs ad Encoding the information systems Maintenance and operation of the facility ad Quality control and laboratory issues ad Water without income and consumption management ad COPY RIGHT 202 Institute of Interdisciplinary Business Research 384

9 Send to request ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS Regarding the Abfar' 25 Organizational structure, and In order to separate modeling of each of the existing information systems, to encode the information systems were as follows: Row information system code Identification villages Information systems S00 2 Contractors Information Systems S020 3 consultants Information systems S030 NOVEMBER 202 VOL 4, NO 7 3 Management and reduce water consumption without revenue Information systems S70 In order to model the existing information systems, such as the common tools, data flow diagrams (DFD) and work flow charts were used. For example, on information systems consultants: Contract Administration Rows Encoding Information Forms Form Type Contract Agreement and General Conditions of Contract Services Form code F[]S030 Head of contracts Expert Contracts DFD diagram Consultant Deputy Research and development Done in consultation Send documents Technical and Research Committee The tender Set of tender documents Review ongoing projects Consultant Consultant Selection - F[]S Abfar = Rural Water and Wastewater COPY RIGHT 202 Institute of Interdisciplinary Business Research 385

10 Information systems (codes) ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS Questionnaire (Assess Current and Future trends of information items) NOVEMBER 202 VOL 4, NO 7 Items of information required by senior managers SIMPLE DCI DIF DCI Status DIF Warning DCI DIF Planning DCI DIF Internal Operation DCI DIF External Intelligence DCI DIF Externally Distributed DCI DIF S00 S020 S030 S70 NR = 62 NR= 70 NR= 87 NR= 75 NR= 60 NR= 73 NR= 63 S S S S S S S Note: Table Guide Abbreviation DCI DIF NR S Description Degree of current importance Degree of importance in the future Number of Responses current score future score Information items SIMPLE Status Warning Planning Internal Operation External Intelligence Externally Distributed Description Notify managers of the organization's current situation Inform managers of progress made and Also exploit important opportunities and enterprise opportunities Signs and symptoms of risk within the organization Critical information to predict and explain the organization's vision Information about how the organization and its sub-units Information about Interpretation of The environmental factors from the experts Information that is distributed outside the organization (to provide shareholders and the news media) Questionnaire 2 (paired comparison table) COPY RIGHT 202 Institute of Interdisciplinary Business Research 386

11 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS SIMPLE Status Warning Planning Internal External Operation Intelligence SIMPLE (3.5) (4.) (4.3) (3.5) (4.6) Status (3.8) (3.3) (3.2) (3.) Warning Planning Internal 2.8 Operation External Intelligence Externally Distributed NOVEMBER 202 VOL 4, NO 7 Externally Distributed (5.2) (4.2) (3.2) (3.3) (4.) Overall Inconsistency Index = 0. Note2: The numbers in Table 2(Group AHP) the final values are that obtained through geometric mean judgments. And the numbers in parentheses is meant to change the preference in the paired comparison (5.) COPY RIGHT 202 Institute of Interdisciplinary Business Research 387

12 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS NOVEMBER 202 VOL 4, NO Priority SIMPLE Status External Internal Planning Warning Externally Information Intelligence Operation Distributed items Weight 5. Conclusion In response to questions raised, Should be acknowledged that the current structure of the organization and the relevant units and relationship between them shows that the units are acting as an individual which is barrier for Systems Thinking. Features of the current information system had a higher proportion with Transaction Processing System (TPS), which is based solely on internal operations and data processing! Note here that address the components and units, has caused people and group acts as an island, although this action may improve the performance of some units, but it hurts the overall performance of the organization. On The other hand, the results obtained from EXCEL and EC tables confirm that the organization needs special attention to acquired information from internal environment. And this factor as a key factor in the design of current information systems has been considered by experts. The results of Table 2 (Future trends), also represent another point of view for managers, Future environment of the organization and function calls, Continue to have information regarding the internal environment. However, the study of theoretical principles in design Strategic Information System (SIS) And also examine the Abfar' organizational environment Shows this trend cannot be Underlie the organization's success in the coming years. In other words, this thinking and trend, does not seem rational and logical. In fact, despite claims that since the organization, is nonprofit and In the current environment that is totally monopoly, Provides services to customers and Naturally, due to being a nonprofit and seeks to provide services until profitability, This mentality comes the Is not required for strategic planning and Strategic information systems design?! While the According to researcher since the goal is to provide services and create value for our customers; provide effective services, Requires permanent explore the environment and correct interpretation of the developments since and Identify strengths and weaknesses and environmental opportunities and threats(swot) And the result is consistent with environmental conditions. Note that this is relied on to only minor revisions, Eliminates the possibility of understanding the patterns that govern the phenomenon and system. It is also in Abfar Organization. COPY RIGHT 202 Institute of Interdisciplinary Business Research 388

13 NOVEMBER 202 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 4, NO 7 Managers to make Strategic and targeted decisions in Macro-organizational level, Information and information systems are needed that In addition to covering the intra-organizational factors, External factors (the opinions of experts and opportunities and threats resulting from environmental conditions) also noted both placed themselves. It seems that) Hirschheim and others, 988) about the evolution of information systems is also confirmed, that expressed the three periods can be specified with the following titles: First period Emphasizing efficiency of operations / data processing Second period Effectiveness of management / management information systems Third period Business advantage / strategic information systems In other words, considering today's environment, the use of strategic information systems in organizations, including in Abfar Organization seems necessary. 6. Suggestions Organize a workshop for 2 hours once every 2 months to: To familiarize managers with the information items and application of each The necessity to distinguish between items of information from managers Managers need to justify the importance of information in decision making Establish the system thinking in the organization To familiarize managers with Types of information system and application of each To familiarize Senior managers with Management concepts: strategic planning, strategic thinking 2000 COPY RIGHT 202 Institute of Interdisciplinary Business Research 389

14 NOVEMBER 202 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 4, NO 7 References Bagad, V.S, " Management information system",9 th Edition, 2008, Available at: Best, John W, Kahn, James V., "Research in education ", 8th ed, 998. Available at: Hirschheim,R, Earl, M;Feeny,D;" An exploration into the management information systems function: Key issue and an evolutionary model". IFIP TC-8 Open conference,singapore,march Kurbel, Karl E, " the making information system", 2008, Available at: Lucey, Terry, " Management information sysytem",9 th Edition, 2005, Available at: McLeod, Raymand.998.Management information systems. Seventh ed. Newjersy: prentise Hall. Minch, R. P. (2004), Computerized Information Systems Supporting Multi criteria Decision Making. Decision Science, Vol. 7 Pressman, Roger S, "Software Engineering a Practitioner s Approach (SEPA)", 5th, 6th, Edition, 200, Available at: Shajahan,s, " Management information sysytem",2004, Available at: Sadagopan, s, "Management information system",2004, Available at: Sprague, R. H. (2003), A Framework for the Development of Decision Support. MIS, Quarterly, Shapiro, S. C. (2002), Encyclopedia of Artificial Intelligence. New York: John Wiley & Sons, Inc COPY RIGHT 202 Institute of Interdisciplinary Business Research 390