Knowledge that Transforms

Cascading inventions and innovations in computer and communications technologies, and other technologies in the field of electronics and physics, have spawned numerous devices that represent a coalescence, or merging, of both technological and occupational functions. The one common thread in this process is the data resource, the raw material that these devices collect, process, and communicate. Computers and peripheral equipment permeate every part of the organization, and communications have shrunk the size of the organization. Even whole industries are going through the technological coalescence process. One result is to force a new look at the meaning of management information system. The MIS manager has the opportunity to recognize the changes taking place, and to assume the leadership in managing the firm's data resources and all that implies. To ignore this challenge is to invite the coalescence of the MIS manager into some other data-related organization.

This paper presents a conceptual development of a cost-based transfer pricing system for application to the services of the corporate Management Information Systems (MIS) Department. The proposed system is based on a five part transfer price. A charge is levied for each of four groups of costs differentiated according to cost behavior and traceability. A fifth charge is a noncost-based congestion charge designed to equalize short-run fluctuations in demand for the computer facilities. The transfer pricing system is designed to be consistent with accounting theory yet operational within the constraints imposed by the environment of MIS.

The conditions under which local government top managers become frustrated with the application of computers and electronic data processing (EDP) to governmental operations are assessed. Using relative deprivation theory as a conceptual framework, extensive empirical data are analyzed to explain current frustration with local government EDP. Five streams of explanation are evaluated: the political and socio-economic milieu of EDP, the nature of the EDP operation, the quality of EDP services, the chief executive’s perception of the impacts of EDP, and the executive’s general perspective about computer technology. Top managers’ current frustration with EDP is primarily grounded in the perceived lack of specific benefits from EDP and in operational problems with the EDP unit.

Computer-based information systems too often do not satisfactorily meet the information needs of users and are inflexible in accommodating change. Because change is inevitable for any system, a framework for viewing the information system development process which takes this into account is necessary. The concept of decoupling as a framework which seeks to minimize the adverse consequences of change is discussed in this article.

The role of the Information Analyst is growing more important in the development of Management Information Systems. This paper introduces a non-traditional subject — body language — to the techniques employed by the analyst. The role of the Information Analyst and the relevance of body language (kinesics) is discussed. A conceptual model of the human communication subsystem, emphasizing total body language communication is developed. Individual elements in this model, with numerous references to the kinesics research findings, are presented in some detail. The authors conclude that body language is much too powerful a communication construct to be ignored by the Information Analyst. An annotated reference bibliography is available from the MIS Quarterly office for those readers interested in further information on this subject.

Interactive problem-solving is defined as user/machine dialogues to identify and solve problems with imprecise solution criteria. Although high payoffs from interactive problem-solving systems have been predicted, few such systems are in use. A key problem is the lack of understanding of the requirements of the potential users. This paper presents the results of case studies of the use of an interactive problem-solving system. Based on observations from these case studies, a list of user characteristics have been compiled relating to user behavior (e.g., data use and problem-solving methods) and user requirements (e.g., the need for involvement in the solution process).

Rapid Analysis Fiscal Tool (RAFT) is an information system designed to provide Minnesota government officials with an analytical tool for evaluating fiscal policy. The system permits rapid analysis of the effect of proposed changes in the tax laws on the fiscal situation of local governments and shows the impact on representative taxpayers in different localities in the state. It also provides up-to-date information for comparing localities' relative tax burdens and spending levels. This article outlines the development of the system and describes its uses. Some insights on system design applicable to all information systems are shared by addressing the issue of design and development of the RAFT information system.

This article relates contingency theory management to the EDP function of the organization. The technology and environment of an organization establish the organization’s position on a continuum ranging from closed/stable/mechanistic to open/adaptive/organic. The application of this concept is interesting and useful for the EDP manager. Two components of the EDP function, production and development, are related to managerial contingency theory.

This paper reports on a comparison of the decision analysis (top- down) and data analysis (bottom-up) methods for determining management information needs in the preparation of management-oriented information system applications. Information requirements were developed using the two alternative methods for four decisions in each of four small colleges. The information requirements obtained by the two methods were evaluated by the college executives as to value and other attributes. The results indicate: The methods perform better in some functional areas (e.g., administrative) than in others (e.g., academic).The type of decision, programmed or nonprogrammed, affected the value and attributes of information obtained. The decision analysis approach provided a higher valued set of information requirements for programmed decisions than data analysis; for relatively nonprogrammed decisions, both methods were about equal in providing information requirements. The value and attributes assigned to the information requirements were higher for programmed decisions than for nonprogrammed decisions.Information analysis techniques cannot be considered apart from organizational contexts in which they are to be applied.

An experiment was conducted to relate characteristics of an information system and a decision maker to the resulting decision making performance in a simulated inventory/production environment. Of the six independent variables which were analyzed, four (form of presentation. availability of decision aids, availability of exception reporting, amount of information provided) were related to information system characteristics, the other two (decision making style, knowledge of functional area) described decision maker characteristics. The dependent variables, or the decision making quality variables analyzed were cost performance, time performance, and the number of reports requested for decision making. The experimental setting, findings, and the implication of the findings for information system design are dis cussed.