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CONCEPTUAL MODELING OF MANAGEMENT INFORMATION SYSTEMS AND
EXAMINES ITS IMPACT ON STRATEGIC DECISIONS OF SENIOR MANAGERS
CASE STUDY: RURAL WATER AND WASTEWATER (IRAN-MASHHSD)
DR. AMIR HOSSEIN AMIR KHANI22
DR. ALI ROSTAMI
ALI NASERI23
Abstract
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 (1to 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
1. 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.
1.1. 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,
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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:
1) 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 (1 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):
2.1. 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, 2001). 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.
The information cycle (Shajahan, 2004, 23)
2.2. Systems concept
(Shajahan, 2004, 45)
Input (data)
Data
(Captured)
Output
(information) Process
(models)
Recipient Database
Decision
Action Results
Environment
Control
Output Processing Input
Control signals
Feedback signals
Control signals
System boundary
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2.3. 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, 1998,12)
2.4. information systems(IS)
2.4.1. definitions
Information system is defined as group of elements organized with the purpose of supporting
management and operational decision making (Bagad, 2008, 1)
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)
2.4.2. Need of information system
For effective planning and controlling
Policy making and decision making
Problem solving
Planning and scheduling.
2.4.3. 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,2004,17)
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.
2.4.4. Fundamental Role of information system
Information systems perform three important functions in a business enterprise.
1- 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
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2.5. Components of an Information system
An Information system has following components: (Bagad,2008,6)
1- Hardware(machines and media)
2- Software ( programs and procedures)
3- Data(data and knowledge)
4- Network(communication media)
5- People(end user and specialists)
All five of components are arranged and interrelated to perform input, process, output, feedback and control that
convert data resources into information. Fig 1.4 shows interrelation between these components. (Bagad, 2008, 3)
2.6. Management information system(MIS)
2.6.1. 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,2004,1)
In our view, MIS involves all these perspectives and, in fact, much more, the three sub-components-
management, information, and systems- together bring to focus clearly and effectively:
(Sadagopan,2004,3)
1-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
Data
storage
Data
Resources Process
Control
System
Performance
Computer
Information
product
People
Resources Network
Resources
Software
Resources Data
Resources
Hardware
Resources
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Organizational pyramid vs. information pyramid (Sadagopan, 2004.32)
2.6.2. 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)
2.6.3. 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)
2.6.4. 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.
2.7. Strategic Information System(SIS)
2.7.1. 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)
2.7.2. 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
Environmental
Information
Internal
Information
Tactical
Decisions
Strategic
Decisions
Operational
Decisions
Top
Middle
Operational
Top
Middle
Operational
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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
3.1. 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:
1) 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.
3.2. Hypotheses
1. 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.
3.3. 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.
3.3.1. Statistical population
All senior managers of the organization according to organizational structure, that those activities are organized
in different deputy.
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3.3.2. Sampling method:
All senior managers in the organization being investigated, i.e. census was conducted.
3.3.3. Data collection tools:
Direct methods such as observation, interviews and questionnaires
Indirect methods such as use of documents
3.3.4. 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 AHP24
method was used to determine the priority information items as follows:
Externally
Distributed External
Intelligence Internal
Operation Planning Warning Status SIMPLE
1 SIMPLE
1 Status
1 Warning
1 Planning
1 Internal
Operation
1 External
Intelligence 1 Externally
Distributed Second questionnaire
EXTREME 8 V.STRONG 6 STRONG 4 MODERATE 2 EQUAL Degree of
importance 9 8 7 6 5 4 3 2 1 Value
Paired comparisons table
3.3.5. 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
i
issk
kα
1
22t
11
1
Cronbach's Coefficient Alpha Questionnaire 0.83 Simple information questionnaire
0.87 Status information questionnaire 0.85 Warning information questionnaire 0.84 Planning information questionnaire 0.88 Internal Operation information questionnaire 0.82 External Intelligence information questionnaire 0.91 Externally Distributed information questionnaire
3.3.6. 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
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3.3.7. Statistical techniques and software used for analyzing
The following software was used to analyze the data: SPSS (V.19) –EXCEL (V.2007) – EXPERT CHOICE
(V.2000) 4. Analysis Result
Organizational structure of rural water and wastewater) Abfar)
Encoding the information systems
Customer Service
Administration
Area Manager
IT Administration Protection
Administration
Contract
Administration
General Assembly
Controller
Chairman and CEO
Financial
Administration
Human
resources ad
Support and
administrative
services ad
Office of Public
Relations
The city's water and
wastewater
Administration
Deputy
supervising the
operation
Deputy Research
and
Development
Deputy of support
Human Resources
Maintenance and
operation of the
facility ad
Water without
income and
consumption
management ad
Quality control and laboratory
issues ad
Monitoring water and
wastewater projects ad
Technical reviews
and studies ad
Projects and
programs ad
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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
1 Identification villages Information systems S010
2 Contractors Information Systems S020
3 consultants Information systems S030
… ………………………
31 Management and reduce water consumption without revenue Information systems S170
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:
DFD diagram
25
. Abfar = Rural Water and Wastewater
Encoding Information Forms
Form code Form Type Rows
F[1]S030 Contract Agreement and General Conditions of Contract Services 1
Head of contracts
Contract
Administration
Expert Contracts
Deputy Research
and
development
Technical and
Research
Committee
Set of tender
documents The tender
Consultant
Consultant
Done in
consultation
Review ongoing projects
Send documents
Consultant Selection - F[1]S030
Sen
d to
requ
est
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Questionnaire 1 (Assess Current and Future trends of information items)
Note1: Table Guide
Questionnaire 2 (paired comparison table)
Info
rmatio
n
system
s (cod
es) Items of information required by senior managers
Externally
Distributed External
Intelligence Internal
Operation Planning Warning Status SIMPLE
DIF DCI DIF DCI DIF DCI DIF DCI DIF DCI DIF DCI DIF DCI
1-5 1-5 1-5 1-5 1-5 1-5 1-5 1-5 1-5 1-5 1-5 1-5 1-5 1-5
S010
S020
S030
…
…
S170
63 NR= 73 NR= 60 NR= 75 NR= 87 NR= 70 NR= 62 NR =
S2 S1 S2 S1 S2 S1 S2 S1 S2 S1 S2 S1 S2 S1
264 240 297 243 269 240 334 293 373 340 279 253 240 213
Abbreviation Description
DCI Degree of current importance
DIF Degree of importance in the future
NR Number of Responses
S1 current score
S2 future score
Information
items
Description
SIMPLE Notify managers of the organization's current situation
Status Inform managers of progress made and
Also exploit important opportunities and enterprise opportunities
Warning Signs and symptoms of risk within the organization
Planning Critical information to predict and explain the organization's vision
Internal
Operation
Information about how the organization and its sub-units
External
Intelligence
Information about Interpretation of The environmental factors from the experts
Externally
Distributed
Information that is distributed outside the organization (to provide shareholders
and the news media)
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Externally
Distributed
External
Intelligence
Internal
Operation
Planning Warning Status SIMPLE
(5.2) (4.6) (3.5) (4.3) (4.1) (3.5) 1 SIMPLE
(4.2) (3.1) (3.2) (3.3) (3.8) 1 Status
(3.2) 3.1 3.1 3.3 1 Warning
(3.3) 3.2 3.1 1 Planning
(4.1) 2.8 1 Internal
Operation
(5.1) 1 External
Intelligence
1 Externally
Distributed
Overall Inconsistency Index = 0.1
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
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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.
7 6 5 4 3 2 1 Priority
SIMPLE Status External
Intelligence Internal
Operation Planning Warning Externally
Distributed Information
items
0.032 0.053 0.079 0.104 0.155 0.222 0.356 Weight
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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, 1988) 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 1990 1980 1970 1960 1950
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