Harambee University

Management Information Systems

Istructure: Dr. Teklu Urgessa

Dec. 2021
Adama, Ethiopia
 Course Outline
1. Foundations of Information Systems in Business
2. Competing with Information and Communication Technology in
the Digital Age
3. Computer Hardware
4. Computer Software
5. Data Resource Management
6. Telecommunications and Networks
7. e-Business Systems vs e-Commerce Systems
8. Enterprise Business and Decision Support Systems
9. Developing Business/IT Strategies and Solutions
10. Security and Ethical Challenges
11. Enterprise and Global Management of Information Technology
 Course Objective
• At end of this course, students will be able to:
 Recognize the potential application of ICT in business for
competitive advantage
 Explain the foundation of ICT based Information systems
in business
 Discuss the information system architecture and
resources in business ecosystems
 Articulate the alignment among business strategy with
the ICT strategy/solutions
 Explain the enterprise and global management of ICT
 Contextualize the business value of using ICT for
competitive advantages
 Course Delivery
• Live Streaming Video Lectures
• Asynchronous Videos upload
• Resources for references will be linked
• Assignments and Presentation
• Reading Assignments and Reflections
 Evaluation Method
• Assignments and Presentations 25%
• Class Activities 15%
• Quizzes 20%
• Final Semester Examination 40%
 References
• James A. O’rien, Jeorge M. Markas. 2011. 10 ed.
Management Information Systems
• Kenneth C. Laudon , Jane P. Laudo 2018. 15th ED.
Management Information Systems: Managing the
Digital Firm.
 Management Information Systems

Lecture-1: Foundations
of Information Systems
in Business
 Chapter Objectives

• Provide foundation of why information systems are important

• Identify major types of information systems
• Define construct (resources) of an information system – people,
hardware, software, data, and networks
• Highlights functions of information systems resources
• Input,
• Processing
• Output,
• Storage, and
• Control activities that transform data resources into
information products
• Identify challenges and ethical issues that a business manager
might face in modern organization
 Introduction
• Management Information system is a system consists of resources like :
• People,
• Hardware,
• Software
• Procedures,
• Data and
• Communications and networks, as its elements.
• The system gathers data from the internal and external sources of an
organization and translates into information for decision making.
 Meaning of the Keyword
• Management information system is an acronym of
three words, viz.,
• Management
• Information
• System
• In order to fully understand the term MIS, let us try to
understand these three words.
 Management
 Management is an art and/science of applying managerial
functions to mobilize organizational resources towards the
achievement of organizational goals effectively and efficiently.
 Important Concepts:
 An art and/or a science
 Managerial functions
 Organizational resources
 Organizational goal
 Efficiency and Effectiveness
 Managerial function:

•Planning
•Organizing
•Staffing
•Directing and
•Controlling
Knowledge Spectrum: Data, Information,
Knowledge, Wisdom

Facts and
Figures

event
 Information
• Information is data that is processed and is
presented in a form which assists decision-
making.it may contain an element of surprise,
reduce uncertainty or provoke a manager to
initiate an action
 Data
• Data usually take the form of historical records.
• In contrast to information, raw data may not be able
to surprise us,
• may not be organized and may not add anything to
our knowledge.

• DATA-------→PROCESSING-----→INFORMATION
Data versus Information

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 System
• A system may be defined as a set of elements
which are joined together to achieve a
common objective.
• The elements are interrelated and
interdependent.
 Characteristics of a System
• System has certain functions
• Systems has resources
• System has boundaries
• System operates within an environments
• Environments affects the system
• There should be a point of contact (Interface between our
system and its environment)
• System has certain goal as a reason for its existence
• Elements of the system are highly interdependent
• Their should a feedback loop among the elements of the
systems for quality control
 Components/functions of a System
• The set of functions for a system may be understood us
input, process and output.

• A system has one or multiple inputs; these inputs are

processed through a transformation process to convert
these input into outputs.

• The three elements of a system are

NPUT------→PROCESS--------→OUTPUT
Resources/elements of an Information System
People

Softwa
re

Information
a

Systems
Hardw

Resources

re
Ne
tw
or ata
ks D
 Characterizing a system
Environment

Feedback Feedback
Signals Signals
Control Control by Control
Signals Management Signals

Input of Manufacturing Output of

Raw Materials Process Finished Products

System Boundary
Other Systems
An IS Framework for Business Professionals
 Definition of Information System
•  Information system is an artificial
system used for collecting, storing, processing,
visualizing analyzing, sharing, communication
and managing data/information
• Its purpose is
• Supporting decision-making
• Efficient business operation
•attaining competitive advantage strategically
Major Roles of Information Systems

Support
Strategies for
Competitive Advantage

Support
Business Decision Making

Support
Business Processes and Operations
Hierarchy of Reporting
 Base for Categorizing IS
• Functional Areas (sales,
marketing, Manufacturing, HR,
F & A etc.)
• Levels of Management
(operational, tactical and
strategic)
• Cross Functional Approaches
( IS which serves more one
functional areas and
management level) – ERP, CRM,
SCM, KNS, Partner relationship
management)
Types of Information Systems

Cross-functional
Integration of Components and/or Resources of
an Information System
Attributes of Information Quality
 History of the role of Information Systems
1950-1960 1960-1970 1970-1980 1980-1990 1990-2000 2000-Present

Data Management Decision Strategic & Electronic Era of business

Processing Reporting Support End User Commerce Intelligence & AI

Electronic
Data
Management
Processing
Information
- TPS Decision
Systems
Support
Systems End User Electronic
- Ad hoc Computing Business & Web 2.0
Reports Exec Info Sys Commerce Ubiquity,
Expert Systems -Internetworked pervasiveness
SIS E-Business & Business
Commerce Intelligence
AI
IoT
 The e-Business Enterprise
The Internet
Suppliers and Other Business Partners Company
Boundary
Supply Chain Management
Procurement, Distribution, and Logistics
Extranets

Manufacturing
Engineering & Accounting,
and
Research and Finance
Production

Intranets
Customer Relationship Management
Marketing Sales Customer Service

Extranets

Consumer and Business Customers

Types of Information Systems
 Why Organizations need Information Systems

• Meeting Global Challenges

• Capturing opportunities in the Market Place
• Supporting Corporate Strategy
• Linking Departments Whose Functions are different
• Enhancing Worker Productivity
• Increasing Quality of Goods and Services

34
 Types of Information Systems

Information Systems

Operations Management
Support Support
Systems Systems

Transaction Process Enterprise Management Decision Executive

Processing Control Collaboration Information Support Information
Systems Systems Systems Systems Systems Systems
 Functional Business Systems
Manufacturing
Information
Systems
Human
Resources Quality Control
Systems Information
Systems

Customer

Geographic
Information Marketing
Systems Information
Systems
Financial
and Accounting
Systems 36
Other Categories of Information Systems

Expert Systems

Knowledge Management Systems

Cross-Functional Information Systems

Strategic Information Systems

Other Categories of Information Systems

Expert Systems

Knowledge Management Systems

Cross-Functional Information Systems

Strategic Information Systems

Global Information Information

The Information Systems Development Process
 Management Challenges of the E-business Enterprise

•Business Strategies
•Business Processes
•IS Human Resources •Business Needs
•IS Development

•Customer Relationships
•Business Partners
•IT Infrastructure •Suppliers
•IS Performance •Business Customers

•Organization Structure Ethical Considerations

•and Culture Potential Risks?
•User Acceptance Potential Laws?
Possible Responses?
 Ethical and Security Challenges
• Security problems with which an organization may
have to deal include:
 Responsible and acceptable decision-making,
 Confidentiality
 Privacy
 Piracy
 Fraud & misuse
 Liability
 Copyright
 Trade secrets, and
 Sabotage
 Ethical Issues
• Information ethics broadly examines issues related to:
 Ownership,
 Access,
 Privacy,
 Security, and
 Community
 Relational Issues:
 The relationship between information and Societal Cultural Codes (What is
good or bad),
 The relationship between information providers and the consumers of
information
 Moral agency (e.g. whether artificial agents may be moral)
 New environmental issues (especially how agents should behave in the
infosphere)
 Information cycle (creation, organization, processing, use and dissemination)
 Information life cycle vs ownership and copyright, digital divide, and digital
rights
 Chapter Summary
• Information Systems play a vital role in the
efficient and effective operations of E-
business, E-commerce and enterprise
collaboration.
• The business professional must know:
– Components (fundamentals) of IS
– Information Technologies
– Business Applications and processes
– Managerial Challenges
– Security and Ethical challenges
 Chapter Summary (cont)
• An information system uses the resources of people,
hardware, software, data, and networks to perform
input, processing, output, storage and control
activities. – Transform organizational processes

• Information systems perform three vital roles in

business firms. They support:
– Business processes and operations
– Business decision making
– Strategic competitive advantage