Basic Management Information Systems Concepts

1. Concept of an Information System

There are two categories of definitional strategies: those that stress the process and those that
emphasize the system's constituent parts or elements. A systems approach that places more of an
emphasis on processes. A system, in Baridwan's definition, is a collection of interrelated processes used to
carry out an action or accomplish a specific objective. In accordance with Bodnar and Hopwood (2006:3), a
systems perspective, the system is a collection of interconnected resources that seek to accomplish a goal.
The system, according to Hall (2009:6), is a collection of two or more subsystems that are connected and
work toward the same objective.

The term "management information system" refers to a collection of thorough, coordinated, and
logically integrated information sub-systems that are capable of converting data into information by means
of a number of methods to boost productivity in accordance with the management style and nature on the
basis of predetermined quality criteria.

Since information is necessary for a firm, it can be inferred from several definitions that information
management information systems are similar to the blood that circulates in the human body. Information is
also vital to a company's ability to sustain ongoing growth. As a result, if you don't acquire information, the
company will eventually be unable to govern its resources, which will make it difficult for it to make strategic
decisions. In the end, this will result in the company losing to its rivals. Additionally, the owned information
system frequently cannot function effectively.

The information system's overabundance of useless and meaningless data is the primary issue (the
system is too much data). Designing a successful information system requires a thorough understanding of
the fundamentals of information (effective business system). The aim of creating a new system is to
establish procedures or strategies for delivering high-quality information.

A business engages in transactions that must be handled in order for it to conduct its everyday
operations. Payroll preparation, sales, and estimate payment are all data processing operations that must
be viewed as the responsibility of a clerk who adheres to a set standard operating procedure.

Although information management systems handle other activities and go beyond simple data
processing, computers are still useful for these types of data processing jobs. Is a system for processing
information that uses computers' abilities to show information for management and decision-making.
 Picture 1.1 : Management Information System Components

The Management Information System is compared to a pyramid structure, with the base layer being
information, followed by explanations of transactions, statuses, and so forth. Information sources that assist
daily management operations make up the following layer. Information system resources for tactical
planning and management control decision-making make up the cereal layer. Informational resources for
supporting management-level planning and policy creation make up the top layer.

An integrated human/machine system, also known as a management information system (MIS), is

used to display information to support the operation, management, and decision-making processes in an
organization. The system makes use of a database, computer hardware and software, instruction methods,
management models, and judgments.

Picture 1.2. : Functions Of An Information System

Basic Concepts of Information

There are numerous definitions, for example:

A. The material is transformed into a format that is more beneficial and significant to the recipients.

B. A material or semi-material object that can lower the level of ambiguity surrounding a situation or an
occurrence. For instance, knowing that the value of the rupiah would increase will make it less unsure
whether or not to make an investment.

C. Data structured to assist in selecting a current or upcoming action or inaction to achieve corporate
goals (the choice is called business decision making).

2. Classification System.

Michael (1996: 77) explains that a system can be classified as an "abstract system versus a
physical system; a natural system versus a man-made system; a definite system versus a probabilistic
system; and a closed system versus a closed system versus an open system". Amsyah (1997:89)
explained that information systems are included in the classification of physical systems, man-made
systems, definite systems, and open systems. Like physical systems, information systems have physical
components. As a man-made system, because it is designed and created by analysts or users, This is a
definite system because the results of this system in the form of information are the results that have been
designed and have been determined in accordance with the wearer. as an open system because this
system is related to the external environment. The external environment of the information system can be
something outside this information system but still in its corporate environment or something outside its
corporate environment.

From some of the above descriptions, it can be concluded as follows: The system can be classified
from several points of view, including the following :

A. Systems are classified as abstract systems (abstract systems) and physical systems (physical
systems). An abstract system is a system of thoughts or ideas that do not appear physically. For
example, the theological system, which is a system in the form of thoughts about the relationship
between man and God, A physical system is a system that exists physically. For example, computer
systems, accounting systems, production systems, and so forth.

B. Systems are classified as natural systems or human-made systems.

Natural systems are systems that occur through natural processes, not man-made. For example, the
Earth's rotation system Man-made systems are systems designed by humans. Man-made systems that
 involve interaction between humans and machines are called human-machine systems or man-
machine systems. Information systems are an example of a man-machine system, because they
involve the use of computers that interact with humans.

C. Systems are classified as specific systems and indeterminate systems. Certain systems operate with
predictable behavior. The interaction between the parts can be detected with certainty, so that the
output of the system can be predicted. A computer system is an example of a particular system whose
behavior can be ascertained based on the programs that are run. An indeterminate system is a system
whose future conditions cannot be predicted because it contains elements of probability.

D. Systems are classified as closed systems and open systems. A closed system is a system that is not
related and is not affected by the external environment. This system works automatically without any
interference from outside parties. Theoretically, this closed system exists, but in practice, there is no
truly closed system, only a relatively closed system that is not truly closed. An open system is a system
that is related to and affected by the external environment. This system receives input and produces
output for the external environment or other subsystems. Because the system is open and affected by
the external environment, it must have a good control system. A good system must be designed in
such a way that it is relatively closed because a closed system will work automatically and open only
for good effects.

Classification of open and closed systems can be described as follows :

Picture 2.1. : Open System

Picture 2.2. : Closed System

 An open system is one that is linked to its environment through the flow of resources. A heating or
air-conditioning system, for example, gets its input from the electricity company and provides heat or cold to
the room it occupies.

Using the same logic, a system that is not connected to its environment is a closed system. For
example, closed systems exist only in strictly controlled laboratory situations.

3. System Characteristics.

According to Michael (1996: 67), a system has characteristics. The characteristics of the system are
as follows:

I. A system has components or subsystems.

II. A system has a system boundary (boundary).
III. A system has an external environment (environment).
IV. A system has a liaison (interface).
V. A system has a purpose (goal).

Characteristics of the system can be described by dejelaskan as follows :

Picture 3.1.. System Characteristics

4. System Components.

A system consists of a number of components that interact with each other, which means that they
work together to form a single whole. System components or system elements can be a subsystem or parts
of the system. Every system, no matter how small, always contains components or subsystems.

Each subsystem has the properties of the system to perform a particular function and affect the
overall system process. So, it can be imagined if in a system there is a subsystem that does not run or
function as it should. Of course, the system will not run smoothly or maybe the system is damaged so that
by itself the purpose of the system is not achieved.

A. System Boundary.

A system boundary (boundary) is an area that limits access between a system and other
systems or with the outside environment. This system boundary allows a system to be
viewed as a single unit. The boundary of a system indicates the scope of the system.

B. External Environment (Environment).

The external environment of a system is anything outside the boundaries of the system
that affects the operation of the system. The external environment of the system can be
beneficial but can also be detrimental to the system. The favorable external environment
constitutes the energy of the system and, as such, must be kept and maintained. The
adverse external environment must be restrained and controlled, otherwise it will interfere
with the survival of the system.

C. Liaison (Interface) System.

A Liaison system is a media liaison between one subsystem and other subsystems.
Through this liaison, resources can flow from one subsystem to another. Through the liaison,
output from one subsystem will be input (input) to other subsystems. By connecting them,
one subsystem can integrate with other subsystems to form a unity.

D. Input System.

System input is the energy that is fed into the system. Input can be input signal or input
maintenance.Maintenance input is the energy that is inserted so that the system can operate.
Input Signal is the energy that is processed to obtain the output. For example, in a
computer system, the program is the input used to operate the computer, and the
data is the input signal to be processed into information.
E. Output System.

The output of the system is the result of the energy treated and is classified into useful
output and residual disposal. Output can be input to other subsystems or to supersystems.
For a computer system, the heat generated is a useless output and is the result of waste
disposal, while information is a required output.

F. Processing System.

A system can have a processing part that will convert input into output. A production
system will process inputs in the form of raw materials and other materials into outputs in the
form of finished goods. The accounting system will process transaction data into financial
reports and other reports needed by management.

G. Goals or Objectives.

A system must have a purpose or target. If a system does not have a target, then the
operating system will not be of any use. The goal of the system is to determine at once what
input is needed by the system and what output will be produced by the system. A system is
said to be successful when it reaches the target or goal. The difference between a goal
(objectives) and a goal is that goals are usually associated with a wider scope and goals with
a narrower scope. If it is a major system, such as a company's business system, then the
term "goal" is more appropriate to apply. For accounting systems or other systems that are
part or subsystems of a business system, the term "objectives" is more appropriate. So it
depends on the scope of the view system. Often, goals and objectives are used
interchangeably and indistinguishable.