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Digital Firm

Is one in which nearly all of the organization's significant business relationships with customers, suppliers and employees are digitally enabled. Core business processes are accomplished through digital networks and linking multiple organistions Business processes refer to the set logically related tasks developed to achieve specific business results Eg: developing a new product, hiring of employees

Sense and respond to their environment far more rapidly than traditional firms Flexible In Digital firms, both time shifting and space shifting are the norm Operational excellence-improves efficiency Improved decision making-real time information Competitive advantage Collaboration survival

Management Information System ManagementManagerial Functions Planning Organizing Staffing Directing Controlling


Today Planning

Organizing Divide the task to activities Delegating authority Staffing Right person at the right job. Directing Motivating Communicating

Controlling Controlling and planning are the two faces of the same coin Control ensures that activities are being performed as per plans

Management Hierarchy

Top level Middle level Operational level

Information requirementUnstructured Futuristic


Top management

Structured internal Operating management


Management Information

MI is required by the managers in decision making MI refers to the quality of information in terms of - timeliness - accuracy - completeness - adequate

Data /Information

Data: raw facts Information: collection of facts organized in such a way that they have value beyond the facts themselves

The Characteristics of Valuable Information

The Characteristics of Valuable Information

r i s k

Information availability

-is a group of interrelated or interacting elements forming a unified whole -E.g-sun & planets,human body -is a group of interrelated components working together toward a common goal by accepting inputs & producing outputs in an organized transformation process

A set of elements or components that interact to accomplish goals
Input Processing mechanism Feedback Output System boundary

System has 3 basic components or functions, Input - involves capturing and assembling elements that enter the system to be processed e.g-raw material Processing involves transformation processes that convert input into output e.g mathematical calculation Output-involves transferring elements that have been produced by a transformation process to their ultimate destination e.g-finished products

Feedback -is about the performance of a system Control monitoring & evaluating feedback to determine whether a system is moving toward the achievement of its goals. The control function then makes necessary adjustments to a systems input and processing components to ensure that it produces proper output. e.g sales executive in allotting the territories

Components of a System

System Concepts

A system does not exist in a vacuum,it exists & functions in an environment containing other systems Subsystem A system that is a component of a larger system, where the larger system is its environment. System boundary A system is separated from its environment and other systems by its system boundary. Interface- Several systems may share the same environment. Some of these systems may be connected to one another by means of a shared boundary, or interface.

Adaptive system-A system that has the ability to change itself or its environment in order to survive is called an adaptive system. e.g-organization

Systems Classification

Information System
A set of interrelated components that collect, manipulate, and disseminate data and information, and provide feedback to meet an objective Examples: ATMs, airline reservation systems, payroll systems

Why IS
Foundation of doing business- In United States over 23 million managers and 113 million workers in the labor forces rely on IS every day to conduct business (statistical abstract 2003) Require to survive and prosper What business wants to do in 5 years often depends on its system

Why Study Information Systems?

improve the efficiency and effectiveness of their business processes, managerial decision making, workgroup collaboration, thus strengthening their competitive positions in a rapidly changing marketplace.

Why Study Information Systems

Internet-based systems have become a necessary ingredient for business success in todays dynamic global environment. Information technologies are playing an expanding role in business.

Interdependence b/w organization & IS


Business strategy Interdep endence organization


database telecom municat ions


Eg: IS (Organization)

Information Systems vs. Information Technology

Information Systems (IS) all components and resources necessary to deliver information and information processing functions to the organization Information Technology (IT) various hardware components necessary for the system to operate

The information system emphasizes 4 major concepts that can be applied to all types of information systems *People, hardware, software, data, and networks. *People resources include end users and IS specialists, hardware resources consist of machines and media, software resources include both programs and procedures, data resources can include data and knowledge bases, and network resources include communications media and networks. *Data resources are transformed by information processing activities into a variety of information products for end users. *Information processing consists of input, processing, output, storage, and control activities.

The components of an information system or resources

People resources-People are required for the operation of all information systems End users- are people who use an information system or the information it produces. IS specialists are people who develop and operate information systems System analysts-design information systems based on the information requirements of end users. System developers-create computer programs based on the specifications of systems analysts. System operators-monitor and operate large computer systems and networks.

Hardware resources-include all physical devices and materials used in information processing. Machines-physical devices (computers, peripherals, telecommunications networks, etc.) Media- all tangible objects on which data are recorded (paper, magnetic disks etc.) Computer system which consist of central processing units containing microprocessors, and a variety of interconnected peripheral devices Computer peripherals-which are devices such as a keyboard or electronic mouse for input of data and commands, a video screen or printer for output of information, and magnetic or optical disks for storage of data resources.

Software resources-include all sets of information processing instructions Program a set of instructions that causes a computer to perform a particular task Procedures-set of instructions used by people to complete a task Examples of software System software-such as an operating system program, that controls and supports the operations of a computer system. Application software-are programs that direct processing for a particular use of computers by end users.

Data resources-Data constitutes a valuable organizational resource Databases - a collection of logically related records or files. A database consolidates many records previously stored in separate files so that a common pool of data records serves many applications. Knowledge Bases - which hold knowledge in a variety of forms such as facts and rules of inference about various subjects.

Network resources Telecommunications networks like the Internet, intranets, and extranets have become essential to the successful electronic business and commerce operations of all types of organizations and their computer-based information systems . Network resources include: Communications media (twisted-pair wire, coaxial cable, fiber-optic cable, and microwave, and satellite wireless systems. Network support (people, hardware, software, and data resources that directly support the operation and use of a communications network).

Information system activities information processing(data processing) include the following Input of Data Resources: *Data about business transactions and other events must be captured and prepared for processing by the input activity. Input typically takes the form of data entry activities such as recording and editing. *Once entered, data may be transferred onto a machine-readable medium such as magnetic disk, until needed for processing.

Processing of Data into Information: Data is typically subjected to processing activities such as calculating, comparing, sorting, classifying, and summarizing. These activities organize, analyze, and manipulate data, thus converting them into information for end users. A continual process of correcting and updating activities must maintain quality of data stored in an information system.

Output of Information Products: Information in various forms is transmitted to end-users and made available to them in the output activity. The goal of information systems is the production of appropriate information products for end users. Storage of Data Resources: Storage is a basic system component of information systems. Storage is the information system activity in which data and information are retained in an organized manner for later use.

Control of System Performance: An important information system activity is the control of its performance. An information system should produce feedback about its input, processing, output, and storage activities. Feedback must be monitored and evaluated to determine if the system is meeting established performance standards. Feedback is used to make adjustments to system activities to correct deficiencies.

Fundamental roles of IS application in business

IS perform 3 vital roles in any type of organization

IS support an organization's Business processes & operations-involves dealing with information systems that support the business processes and operations in a business. E.g-customer purchases,keep track of inventory,sales trend Decision making by employees & managers-help decision makers to make better decisions and attempt to gain a competitive advantage. e.g-what kind of merchandise need to be added or discontinued Strategies for competitive advantage-help decision makers to gain a strategic advantage over competitors requires innovative use of information technology. e.g-store manager might take a decision to install touch screen kiosks,on line shopping

E-business information technology infrastructure

e-business is defined as the use of Internet technologies to work and empower business processes, electronic commerce, and enterprise communication and collaboration within a company and with its customers, suppliers, and other business stakeholders. Enterprise collaboration systems. Involve the use of software tools to support communication, coordination, and collaboration among the members of networked teams and workgroups. An internetworked e-business enterprise depends on intranets, the Internet, extranets, and other networks to implement such systems. Electronic commerce is the buying and selling, and marketing and servicing of products, services, and information over a variety of computer networks. An internetworked e-business enterprise uses the Internet, intranets, extranets, and other networks to support every step of the commercial process.

Trends in information system


Information Systems Are More than Computers

Figure 1-8


Dimensions of Information Systems Three Important Dimensions of Information Systems Organizations Management Technology You will need to understand and balance these dimensions of information systems in order to create business value.


The Organizational Dimension of Information Systems People Structure Business processes Culture Politics


The Management Dimension of Information Systems Managers are: Sense makers Decision makers Planners Innovators of new processes Leaders: set agendas


The Management Dimension of Information Systems (Continued) Managers who can understand the role of information systems in creating business value are the key ingredient to success with systems, and cannot easily be replicated by your competitors.


The Technology Dimension of Information Systems Information technology is one of the tools managers use to cope with change: Hardware: Physical equipment Software: Detailed preprogrammed instructions Storage: Physical media for storing data and the software


The Technology Dimension of Information Systems (Continued) 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.


The Business Information Value Chain

Figure 1-7


Major Business Functions Rely on Information Systems Sales and marketing Manufacturing Finance Accounting Human resources


Should not be measured only in terms of its efficiency minimizing the cost & time ----------Success should be measured in terms of effectiveness, in supporting the business strategy Mismanagement and misapplication of IS

Success and Failure with IT

Top Five Reasons for Success User involvement Clear statement of requirement Proper planning Realistic expectations Executive management support Top Five Reasons for Failure Lack of user input Changing requirements and specifications Lack of executive support Technological incompetence Incomplete requirements and specifications

Developing IS solutions

Challenges of ethics & IT

As a prospective managerial end user and knowledge worker, we should aware of the ethical responsibilities generated by the use of information technology. For example: What uses of information technology might be considered improper, irresponsible, or harmful to other individuals or to society? What is the proper use of an organizations information resources? What does it take to be a responsible end user of information technology? How can you protect yourself from computer crime and other risks of information technology

Ethical dimensions of information systems deal with ensuring that information technology and information systems are not used in an improper or irresponsible manner against other individuals or to society. A major challenge for our global information society is to manage its information resources to benefit all members of society while at the same time meeting the strategic goals of organizations and nations. For example, we must use information systems to find more efficient, profitable and socially responsible ways of using the worlds limited supplies of material, energy, and other resources.

Challenges of IT Careers
Information technology and its uses in information systems have created interesting, highly paid, and challenging career opportunities. Employment opportunities in the field of information systems are excellent, as organizations continue to expand their use of information technology. Employment surveys continually forecast shortages of qualified information systems personnel in a variety of job categories. Job requirements in information systems are continually changing due to dynamic developments in business and information technology.

A major functional area of business that is as important to business success as the functions of accounting, finance, operations management, marketing, and human resource management. An important contributor to operational efficiency, employee productivity and morale, and customer service and satisfaction. A major source of information and support needed to promote effective decision making by managers and business professionals. A vital ingredient in developing competitive products and services that gives an organization a strategic advantage in the global marketplace. A dynamic, rewarding, and challenging career opportunity for millions of men and women. A key component of the resources, infrastructure, and capabilities of todays internetworked e-business enterprise.

The IS Function

A MIS is An integrated user machine system For providing information To support the operations,management,analysis,& decision making functions In an organization The system utilizes Computer hardware & software Manual procedures Models for analysis,planning & control& decision making A database

MIS is the marriage Management information and system MIS provide, MI required by the managers in decision making MI refers to the quality of information in terms of - timeliness - accuracy - completeness - adequate

Functions of MIS
Data capturing Processing of data Storage of information Retrieval of information Dissemination of MI

Jefferson State University

People students Hardware computer system & printer Software-word processing & networked operating system Data case (text) Output final document

Input system accepts input in the form of data entered by students Processing word processing software processes this input (text) & represents in the form of report for storage or for printing Output a copy of the document saved on disk, display the same on the screen or printed. Storage on disk drive & secondary memory Control warning message

How can information systems support a companys business processes and decisionmaking, and give it a competitive advantage? Give examples to illustrate your answer. Why do big companies still fail in their use of information technology? What should they be doing differently? How can a manager demonstrate that he or she is a responsible end user of information systems? Give several examples.

In 2005 ,Wal Mart attained more than $285 billion in sales-nearly one tenth of retail sales in the united states Retail link system, which digitally link its suppliers to different store.