MANAGEMENT INFORMATION SYSTEM

MIDTERM EXAM: PAPER OF MANAGEMENT INFORMATION SYSTEM

PREPARED BY

SYIFA AULIA SAFARANI

1734021099

FACULTY OF ECONOMICS

KRISNADWIPAYANA UNIVERSITY

2019
I. INFORMATION SYSTEM OBJECTIVES

Information technology brings many changes in organization and business processes.

Information technology is a necessity for organizations that can help the performance of
organizations and individuals. Information systems will help companies to present
financial reports in the form of accurate and reliable information, so that many parties
use accounting information systems to achieve excellence for companies. Information
systems are components and elements of an organization that provide information to
users by processing financial events (Zare, 2012). The purpose of information systems
is to produce information. Information is data that is processed into a form that is useful
for the users. To be useful, information must be supported by three pillars as follows:
right to the person or relevant, timely and appropriate value or accurate. Outputs that
are not supported by these three pillars cannot be said to be useful information. To
become an information system, the results of the system must be useful information,
that is, must meet the three criteria: relevant, timely and accurate (Usman, 2000). All
organizations need a flow of information that helps managers to take various decisions
needed. This information flow is regulated and directed in an information system.
Information systems play a role in the process of making daily operational decisions
until long-term planning. Before computers existed, information systems had become
organizational needs. This means that information systems are not always computer
based. But with the development of computer functions, information systems today are
generally fully supported by computers. Organizational information systems used to
support organizational activities develop from time to time. The level of organization
information system is getting wider and deeper.

II. IMPORTANCE OF MANAGEMENT INFORMATION SYSTEMS

The success of an organization in achieving its goals is very depends on the ability of
the person managing the organization. Management as a method that regulates,
managing an organization can be interpreted as the art of implementing something
through people. If the management of an organization is good, it will increase the
prosperity of a country. In carrying out their duties, managers need information,
because of different tasks, the information needed will also be different. This difference
is caused by the existence of a period of time, level of uncertainty, type of information,
basic information needs and forms of reporting. So that it can be categorized that
information is one of the main types of resources, and is included in the category of
conceptual resources. Other main types of resources, in the category of physical
resources, namely; human, material, machinery (including facilities and energy) and
money. Physical resources that are in the organization are usually limited and can be
exhausted or extinct. While information resources are "no" will never run out. So that all
resources, both physical and conceptual, must be synergized. Therefore the task of the
manager is to direct the use of all resources so that they can be utilized effectively. As a
follow up to the manager's assignment, it is necessary to have a resource management
effort (Resource Management) including information management, namely:

 Resources must be arranged so that they are needed at all times

 can be immediately utilized - modifications need to be made
 Resources must be utilized as much as possible
 Resources must always be updated

Managers ensure that the required raw data is collected and then processed into useful
information. Then the manager ensures that a decent person in the organization
receives the information in the right form at the right time so that the information can be
utilized. Finally the manager discards the information that is not useful again and
replace it with up-to-date and accurate information. All of these activities (obtaining
information, using it as effectively as possible and throwing it away at the right time, are
referred to as information management. The emergence of a new paradigm that is in
the form of information included in the main resources of the organization will
encourage business towards information management. The attention to Information
Management is partly due to:
  Increased complexity of business activities:
 International economic influences; Large / small companies are all
exposed to economic influences that can be sourced from any part of the
world. Influence. Seen in the relative value of each country's currency.
 World-level competition (globalization); competition no longer occurs in its
geographical area, it appears in the value of imports from abroad. This is
indicated by the existence of agreements between countries in the form of
APEC, AFTA, WTO, and others.
 Increased complexity of technology; various types of technology in life
have been widely applied - bar code scanners at supermarkets, flight
booking systems, automated teller machines (ATM), closed circuit
television (CCTV) in parking buildings, etc.
 Limited time; all stages of business operations are now carried out faster
than before. So that marketing activities appear remotely via telephone
(telemarketing) or internet (e-commerce). In addition, there was also a
scheduling of production material delivery to arrive just in time.
 Social constraints; in fact there are products and services that are not
desired by the community. This is caused by business decisions that are
only based on economic factors by ignoring attention or consideration of
social benefits and costs. For example factory expansion activities, making
new products, new sales points, and other similar activities must also be
considered.
 Increased computer skills, Data and Communication Management:

Data Management Trend

 Viewed from the aspect of Management Engineering

 File management and organization only for one particular application → for
several applications → for corporate data files (database systems are
needed) data dictionary needs to be created, not just data definitions.
 In terms of Data Management
  There has been a shift in the data processing model, which was previously
centralized (centralized) now becoming decentralized data processing or
distributed processing. This means that each computer connected to the
network can process data according to their individual needs.
 Viewed from Data Origin
 Based on the origin of the data to be processed, most of which are from
Internal Data now shifted by involving External Data.
 Judging from the Data Type Aspect
 Data processing is done based on data collected so as to produce
information.
In other words, that used to be onlyexchange data between organizations or
organizational units, continues to increase into the exchange of information (which is the
result of processing from data). Furthermore, it moves into science-based processing or
expert systems (knowledge systems or expert systems) so that it will become
intellectual capital.

Communication Trend

 Viewed from Area Coverage

 Dissemination and source of information processed is utilized and originates
in the internal environment of the organization (an internal organization). This
continues to shift towards inter-organization (Inter organization). So the
concept of developing information systems will be based on communication
other than computer-based (Communication-based information systems).
 Viewed from Infrastructure
 The infrastructure used will move from Mainframe to Network-based
infrastructure.
 Viewed from Technology Utilization
 With the continued development of information and communication
technology, the application of computer and communication-based
 information systems (Information and Communication Technology - ICT) will
continue to move from
 The concept of a local network (Local Area Network - LAN) to a very wide
network (Wide Area Network - WAN). Thus the application applied will be
web-based.
 In addition, the communication media used will also continue to change,
which used cable media (Cabling) can now use wireless media.
 Viewed from Connected Equipment
 Starting from conventional communication that only utilizes
telecommunications equipment only (eg telephone, fax) can now be
combined with its use by also using computer media at once (e-mail, data
exchange, etc.) and also with the addition of other equipment that has
computer components / microprocessor (computer-based equipment)

III. ROLE OF MANAGEMENT INFORMATION SYSTEMS

At first, the users of computer output at the company are administrative staff in the
accounting department, whose computers carry out applications such as payment of
employee salaries, inventory control, and billing. Some information is also provided to
managers, but only as an additional output from the accounting application. The idea of
using a computer as a management information system (SIM) is a major innovation,
because it realizes that managers need information for problem solving. When
companies reach the SIM concept, they begin to develop various applications
specifically directed at supporting managers. However, it is not only management that
obtains

the benefits of applying a SIM. Non-managers and expert staff also use the output. Also
used by users who are outside the company, namely customers will receive invoices
and transaction reports, shareholders will receive a dividend check, and the government
will receive a tax report. Thus in summary the users and actors of information systems
include: managers, non-managers and people and organizational units within the
organization and its environment. In the discussion on SIM material, which will be
discussed further are the actors and users of the group manager. We can see the
existence of managers everywhere in various levels and in various functional fields in
the company.

Managers are found at all levels, according to the level of management, that is :

 The level of Strategic Planning (level of Strategic planning) is the top manager of
the organization. They have an influence on decisions taken in the entire
organization over the next few years. Another term used is executive.
 Management The control level is a middle level manager, who has the
responsibility to change the plan into action and ensure that the goal is achieved.
 Operational The level of operational control is a lower level manager, who is
responsible for completing the plans set by managers at a higher level.

The level of management can influence information sources and forms of information
presentation. Components of information sources are categorized into two major
groups, namely from the environment and internal. While the form of presentation of
information is also divided into two major groups, namely the presentation in a concise
and detailed. In a management level relationship diagram of information sources and
the form of presentation of information, each of them is shown in the picture above.

In addition to the existence of managers, there are levels of organization or company

sharing. Managers are also found in functional areas of the company, where various
resources are separated according to the type of work performed. The division of
functional fields in general is like:

 Functional finance (Finance)

 Functional fields of information services
 Functional area of marketing (Marketing)
 Functional field of human resources (Human resources)
 Functional fields of manufacturing (Manufacturing)

Group managers based on levels and fields functional variety, according to the
company's vision and mission. The figure below shows the relationship in a
manufacturing company. Furthermore, with the manager's duties in general (Fayol,
2008):

1. Planning
2. Organizing or Organizing
3. Staffing
4. Directing
5. Controlling

A manager plans what they will do (in the short, medium and long term). Then, they
organized to achieve the plan. Next they compile organizational staff according to the
resource requirements needed. Based on available resources, they direct to implement
the plan.

IV. BENEFITS OF MANAGEMENT INFORMATION SYSTEMS

Management and the types of decisions it takes. Based on the description above, it can
be seen that the purpose of establishing a Management Information System or SIM is
so that the organization has information that is useful in making decisions management,
both those that deal with routine decisions and strategic decisions. So SIM is a system
that provides managers of data and information related to the implementation of
organizational tasks. Some of the benefits or functions of information systems include
the following:

1. Increasing the accessibility of data presented in a timely manner and accurate for
users, without requiring it between information systems.
2. Ensure the availability of quality and skills within utilize information systems
critically.
3. Develop an effective planning process.
4. Identify skills needs supporting information systems.
5. Establish investments that will be directed at the system information.
6. Anticipate and understand the consequences economical of new information
systems and technology.
7. Improve productivity in application development and system maintenance.
8. Organizations use information systems to process transactions, reduce costs and
produce income as one of their products or services.
9. Banks use information systems to process checks customers and make various
checking account reports and transactions that occur.