MIS Lecture 1

1
Management Information Systems

Chapter 1: Information Systems in Global Business Today
Managing Information Systems
1.1
2
Information Systems
• Information Systems are becoming the

foundation of business models and processes
• They allow for the distribution of knowledge
1.2
3
IT and IS
• What is Information Technology?
– Any form of technology used by people to handle
information.
• What are Information Systems?
– Integrated components processing, storing
information in an organisation.
– Interdisciplinary study of systems that provide
information to users in organisations.
1.3
4
Information and Data
• Information
– Clusters of facts meaningful and useful to human
beings in processes such as making decisions
• Data
– Streams of raw facts representing events such as
business transactions – meaningless without
structure
1.4
5
Experiences of IT and IS
• Examples of IT
– Hardware (PC, UNIX server)
– Software (e-mail, Internet, Windows, Word)
– Consumer devices (mobiles, train times)
• Examples of IS
– File systems, databases, e-mail servers / clients
– e-commerce
– SAP Systems, Applications and Products,
1.5 student records
6

• MIS
– The study of information systems focusing on their
use in business and management.
• Approaches
– Technical
– Behavioural
1.6
7
Approaches to IS
TECHNICAL APPROACHES
COMPUTER
OPERATIONS
SCIENCE
RESEARCH
MANAGEMENT
SCIENCE
MIS
SOCIOLOGY
PSYCHOLOGY POLITICAL
SCIENCE
BEHAVIORAL APPROACHES
1.7
8
Why is IS Important?
• For an organisation to survive and grow
– More locations (networking, Internet)
– New products and services
– Improve jobs and work flows:
• Efficiency
• Cost
• Ethical and social issues
1.8
9
Why is IS Important?
• Worldwide changes:
– Global economy
– Knowledge- or information-based society
– Business enterprise
– Digital firm
1.9
1
0 Management Information Systems
Global Economy
• Growing percentage of economy relies upon
import and export
• Need to operate globally
• IS can provide global trading infrastructure
1.10
1
Changes to Society
• Change of employment profiles:
– Less farming
– Less ‘blue collar’ – manufacturing
– Increased service
– Increased ‘white collar’ – office-based
• 55% of work force are in knowledge- or
information-based activities
• Shift of manufacture to low-wage countries
1.11
1
Business Enterprise
• Change from hierarchical organisations
• Relies on instant information
• Flexibility with customer focus, with
increasing importance
1.12
1
Digital Firm
• An organisation where:
– Nearly all relationships with customers, suppliers
and employees is digital
– Business processes accomplished through digital
networks
• Flexible
• Dependent upon on IT
1.13
1
Course Objectives
• Provide an understanding of
– IS and underlying IT
– Impact on organisations of IS
– Implementation and management of IS
– IS and global organisations
• Provide awareness of IS in your role as a
professional
1.14
1
Course Content
• www.shoaibfarooq.blogspot.com/p/manageme
nt-information-system-mis.html
1.15
1
Visiting Hours
11:00 AM – 1:00 PM ( Tuesday )
or by appointment
sshoaibfarooq2@yahoo.com
1.16
Information Technology Capital Investment
Source: Based on the data in U.S. Department of

Commerce, Bureau of Economic Analysis, National
Income and Product Accounts, 2006.
1.17 Figure 1-1

1.1 THE ROLE OF INFORMATION SYSTEMS IN BUSINESS TODAY
How Information Systems are Transforming Business

• Globalization Opportunities
• The Emerging Digital Firm
• Strategic business objectives of information systems
Globalization Opportunities:
• Management and control in a global marketplace
• Competition in world markets
• Global workgroups ● Global delivery systems
Emergence of the Digital Firm:
• Digitally enabled relationships with customers, suppliers, & employees
• Core business processes accomplished using digital networks
• Digital management of key corporate assets
• Sensing and responding to environmental changes
• Seamless flow of information within the firm, and with strategic
1.18partners

The Emerging Digital Firm

Business processes:
• Manner in which work is
organized, coordinated, and
focused to produce a valuable
product or service
• Concrete work flows of material,
information, and knowledge—
sets of activities
• Unique ways to coordinate work,
information, and knowledge
• Ways in which management
chooses to coordinate work
1.19 Figure 1-0


Strategic business objectives of information systems

 Operational Excellence: example – Wal-Mart
 New Products, Services, and Business Models: eBay has developed
the largest auction trading platform for millions of individuals and
businesses. Competitors have not been able to imitate its success.
Other Examples – Apple Inc.’s iPod, Netflix’ DVD titles
 Competitive Advantage: IT makes it possible to develop competitive
advantages. Dell Computer has built its competitive advantage on
an IT enabled build-to-order business model that other firms have
not been able to imitate.
 Survival: Example – Automatic Teller Machines (ATM)
1.20
1.2 PERSPECTIVES ON INFORMATION SYSTEMS
What Is an Information System?

Technology perspective: A set of interrelated components
that collect (or retrieve), process, store, and distribute
information to support decision making and control in an
organization
• Data: Streams of raw facts representing events such as
business transactions
• Information: Clusters of facts meaningful and useful to
human beings in the processes such as making decisions
1.21
Technology perspective
Data and Information
1.22 Figure 1-3

Functions of an Information System
1.23 Figure 1-4

Dimensions of Information Systems

• Information systems literacy: Broad-based understanding
of information systems that includes behavioral knowledge
about organizations, management and individuals using
information systems as well as technical knowledge about
computers
• Computer literacy: Knowledge about information
technology, focusing on understanding how computer
technologies work
Three Important Dimensions of Information Systems
• Organizations
• Managers
• Technology
1.24
Information Systems Are More than Computers
You will need to

understand and
balance these
dimensions of
information systems
in order to create
business value.
1.25 Figure 1-5

The Organizational Dimension of Information Systems

• People
• Structure
• Business processes
 Sales and marketing
 Manufacturing and Production
 Finance and Accounting
 Human resources
• Culture
• Politics
The Management Dimension of Information Systems
Managers are:
• Sense makers ● Decision makers
• Planners ● Innovators of new processes
• Leaders: set agendas
1.26
Level in a Firm
1. Strategic-level systems:
help senior management
tackle and address strategic
issues
2. Management-level systems:
serve the monitoring,
controlling, decision-
making, and administrative
activities
3. Operational-level systems:
support operational
managers, keeping track of
the elementary activities
and transactions
1.27 Figure 1-6

The Technology Dimension of Information Systems

Information technology is one of the tools managers use to
cope with change:
• Computer Hardware: Physical equipment
• Computer Software: Detailed preprogrammed instructions
• Data management technology: Physical media for storing data
and the software
• Communications technology: Transfers data from one physical
location to another
• Networks: Links computers to share data or resources
Managers need to know enough about information
technology to make intelligent decisions about how to use it
for creating business value.
1.28
A Business Perspective on Information Systems

Information systems are more than just technology.
Businesses invest in IS in order to create value and increase
profitability.
• Information systems are an organizational and
management solution to business challenges that arise
from the business environment.
• Based on information technology but also require
significant investment in organizational and management
changes and innovations
• IS create value primarily by changing business processes
and management decision making.
1.29
The Business Information Value Chain
1.30 Figure 1-7

Complementary Assets and Organizational Capital

Complementary assets:
• New business processes
• Management behavior
• Organizational culture
• Training
Organizational and Management capital:
• Supportive business culture that values efficiency and
effectiveness
• Efficient business processes, decentralization of authority
• Highly distributed decision rights
• A strong information system (IS) development team
1.31
1.3 CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS
Technical
Approaches
Computer Operations
Science Research
Management Sociology
Science
Psychology Economics
Behavioral
Approaches
1.32
Figure 1-9
1.3 CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS
A technical Perspective on Information Systems
Optimize systems
performance:
• Technology and
organization
• Organizations mutually
adjust to one another until
fit is satisfactory
Figure 1-10
1.33

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1

Management Information Systems

Managing Information Systems

• Information Systems are becoming the

Information and Data

Management Information Systems

Information Technology Capital Investment

Source: Based on the data in U.S. Department of

1.17 Figure 1-1

1.1 THE ROLE OF INFORMATION SYSTEMS IN BUSINESS TODAY

How Information Systems are Transforming Business

1.1 THE ROLE OF INFORMATION SYSTEMS IN BUSINESS TODAY

The Emerging Digital Firm

1.19 Figure 1-0

1.1 THE ROLE OF INFORMATION SYSTEMS IN BUSINESS TODAY

Strategic business objectives of information systems

1.2 PERSPECTIVES ON INFORMATION SYSTEMS

What Is an Information System?

Data and Information

1.22 Figure 1-3

Functions of an Information System

1.23 Figure 1-4

Dimensions of Information Systems

Information Systems Are More than Computers

You will need to

1.25 Figure 1-5

The Organizational Dimension of Information Systems

1.27 Figure 1-6

The Technology Dimension of Information Systems

1.2 PERSPECTIVES ON INFORMATION SYSTEMS

A Business Perspective on Information Systems

1.2 PERSPECTIVES ON INFORMATION SYSTEMS

The Business Information Value Chain

1.30 Figure 1-7

1.2 PERSPECTIVES ON INFORMATION SYSTEMS

Complementary Assets and Organizational Capital

1.3 CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS

1.3 CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS

A technical Perspective on Information Systems

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