SYS 344: Management Information Systems

5/3/12 by: A. Darwish Click to edit Master subtitle style Session I: Introduction

Agenda

Introduction Course Description Educational Aims Assessment Details Logistics Data, Information, Knowledge System Components
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Introduction

Students Lecturer Instructional Materials:

Laudon, Kenneth C. & Jane P. Laudon. Management Information Systems 10th ed. New Jersey: Prentice Hall.
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Overall Aims

Illustrate the strategic competitive advantages of Management Information Systems; Explain creatively the relationship between different information systems; Design business solutions with information technology; and Understand different security and 5/3/12 ethical challenges caused by

Course Outline
Module Topic Introduction Date Monday 18th July No. of Hours 2 No. of Lectures 1

1- Information Systems Tuesday 19th July in Global Business Wednesday 20th July Today

Introduction

2- Global E-Business: How Businesses Use Information Systems

Thursday 21st July Monday 25th July

3. IS Organization and Strategy

Tuesday 26th July

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Course Outline (contd)

Module Topic Date No. of Hours No. of Lectures

5- H/W, S/W and Telecommunication and Wednesday 27th July Networks Quiz IT 6- Foundations of Business Intelligence: Monday 1st August Databases and Tuesday 2nd August Information Management Thursday 28th July

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Course Outline (contd)

Module Topic 13- Building systems 14- Project Management Building Systems 8- Securing Information systems Quiz 15- Managing Global Systems 10- E-Commerce: Digital
Markets, Digital Goods

Date Wednesday 3rd August Thursday 4th August Monday 8th August Tuesday 9th August Wednesday 10th August Thursday 11th August Monday 15th August Tuesday 16th August Wednesday 17th August

No. of Hours 4 4 2 1 2 2 2

No. of Lectures 2 2 1 1 1 1 1

Applications

Revision

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Assessment Details

Mid-Term
Pre-Mid

45%
10% 30% 5% Exam

term Quiz

Mid-term

Participation

and Attendance

Final
Pre-Final Final

55%
Quiz 10% 40% and Attendance
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Exam

Participation

5%

Logistics

Lecture
Room: Mon, Thu

227

Tue, Wed (11:30 -13:30)

(9:00 11:00)

Office Hours: Tue (9:00 11:00), room 321 REQUIREMENTS FOR FINAL EXAM
Minimum

75% attendance to class; of all assignments at a certain

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Submission

Session I

Introduction

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Data, Information, and Knowledge

Data
Raw

facts

Information
Collection

of facts organized in such a way that they have value beyond the facts themselves and understanding of a set of information
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Knowledge
Awareness

The Value of Information

If an organizations information is not accurate or complete

People

can make poor decisions, costing thousands, or even millions, of dollars characteristics become more valuable than others

Depending on the type of data you need

Some

Directly linked to how it helps decision makers achieve their organizations goals 5/3/12

System Concepts

System
Set

of elements or components that interact to accomplish goals

Components of a system
Inputs Processing Outputs Feedback
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mechanisms

System Concepts (contd)

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System Performance and Standards

Efficiency
Measure

of what is produced divided by what is consumed to which a system attains its goals objective of the system

Effectiveness
Extent

System performance standard

Specific

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System Performance and Standards (contd)

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System Performance and Standards (contd)

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What is an Information System?

Information system (IS) is a set of interrelated elements that

Collect

(input), manipulate (process), store, and disseminate (output) data and information, and provide a corrective reaction (feedback mechanism) to meet an objective

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Input, Processing, Output, Feedback

Input
Activity

data

of gathering and capturing raw

Processing
Converting

data into useful outputs

Output
Production

of useful information, usually in the form of documents and reports from the system that is used to
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Feedback
Information

Computer-Based Information Systems

Single set of hardware, software, databases, telecommunications, people, and procedures

That

are configured to collect, manipulate, store, and process data into information and the disseminate it.

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Computer-Based Information Systems (contd)

Hardware
Consists

of computer equipment used to perform input, processing, and output activities of the computer programs that govern the operation of the computer collection of facts and information, typically consisting of two or 5/3/12 more related data files

Software
Consists

Database
Organized

Computer-Based Information Systems (contd)

Telecommunications, networks, and the Internet

The

electronic transmission of signals for communications computers and equipment to enable electronic communication largest computer network, consisting of thousands of interconnected 5/3/12

Networks
Connect

Internet
Worlds

Computer-Based Information Systems (contd)

People
Can

be the most important element in most computer-based information systems strategies, policies, methods, and rules for using the CBIS

Procedures
Include

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Chapter 1 Information Systems in Global Business Today

Management Information Systems

NBA Teams Make a Slam Dunk with Information Technology

Problem: Lack of hard data usable in decision-making processes, costly and competitive market. Solutions: Developed a new system designed to collect and organize data using video clips of games. Synergy Sports Technology tags video of each game with hundreds of descriptive categories and allows coaches and players to stream game footage from the Web. Demonstrates ITs role in innovation and improving business processes. Illustrates how the Web has allowed businesses to use new tools to analyze critical data.

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Chapter 1 Information Systems in Global Business Today

Management Information Systems

The Role of Information Systems in Business Today

How information systems are transforming business

Increase in wireless technology use, Web sites Shifts in media and advertising New federal security and accounting laws Internet has drastically reduced costs of operating on global scale Presents both challenges and opportunities

Globalization opportunities

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Chapter 1 Information Systems in Global Business Today

Management Information Systems

The Role of Information Systems in Business Today

Information Technology Capital Investment

Information technology investment, defined as hardware, software, and communications equipment, grew from 32% to 51% between 1980 and 2008.
Source: Based on data in U.S. Department of Commerce, Bureau of Economic Analysis, National Income and Product Accounts, 2008.

Figure 1-1
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Chapter 1 Information Systems in Global Business Today

Management Information Systems

The Role of Information Systems in Business Today

In the emerging, fully digital firm

Significant business relationships are digitally enabled and mediated Core business processes are accomplished through digital networks Key corporate assets are managed digitally

Digital firms offer greater flexibility in organization and management

Time shifting, space shifting

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Chapter 1 Information Systems in Global Business Today

Management Information Systems

The Role of Information Systems in Business Today

Growing interdependence between ability to use information technology and ability to implement corporate strategies and achieve corporate goals Business firms invest heavily in information systems to achieve six strategic business objectives:

Operational excellence New products, services, and business models Customer and supplier intimacy Improved decision making Competitive advantage Survival
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Chapter 1 Information Systems in Global Business Today

Management Information Systems

The Role of Information Systems in Business Today

Operational excellence:

Improvement of efficiency to attain higher profitability Information systems, technology an important tool in achieving greater efficiency and productivity Wal-Marts RetailLink system links suppliers to stores for superior replenishment system

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Chapter 1 Information Systems in Global Business Today

Management Information Systems

The Role of Information Systems in Business Today

New products, services, and business models:

Business model: describes how company produces, delivers, and sells product or service to create wealth Information systems and technology a major enabling tool for new products, services, business models

Examples: Apples iPod, iTunes, and iPhone, Netflixs Internet-based DVD rentals

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Chapter 1 Information Systems in Global Business Today

Management Information Systems

The Role of Information Systems in Business Today

Customer and supplier intimacy:

Serving customers well leads to customers returning, which raises revenues and profits

Example: High-end hotels that use computers to track customer preferences and use to monitor and customize environment

Intimacy with suppliers allows them to provide vital inputs, which lowers costs

Example: J.C.Penneys information system which links sales records to contract manufacturer

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Chapter 1 Information Systems in Global Business Today

Management Information Systems

The Role of Information Systems in Business Today

Improved decision making

Without accurate information:

Managers must use forecasts, best guesses, luck Leads to:

Overproduction, underproduction of goods and services Misallocation of resources Poor response times

Poor outcomes raise costs, lose customers

Example: Verizons Web-based digital dashboard to provide managers with real-time data on customer complaints, network performance, line outages, etc.

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Chapter 1 Information Systems in Global Business Today

Management Information Systems

The Role of Information Systems in Business Today

Operational excellence:

Improvement of efficiency to attain higher profitability Enabled by technology Serving customers raises revenues and profits Better communication with suppliers lowers costs More accurate data leads to better decisions

New products, services, and business models:

Customer and supplier intimacy:

Improved decision making

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Chapter 1 Information Systems in Global Business Today

Management Information Systems

The Role of Information Systems in Business Today

Competitive advantage

Delivering better performance Charging less for superior products Responding to customers and suppliers in real time Example: Toyota and TPS (Toyota Production System) enjoy a considerable advantage over competitors information systems are critical to the implementation of TPS

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Chapter 1 Information Systems in Global Business Today

Management Information Systems

The Role of Information Systems in Business Today

Survival

Information technologies as necessity of business May be:

Industry-level changes, e.g. Citibanks introduction of ATMs Governmental regulations requiring record-keeping

Examples: Toxic Substances Control Act, SarbanesOxley Act

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Chapter 1 Information Systems in Global Business Today

Management Information Systems

The Role of Information Systems in Business Today

The Interdependence Between Organizations and Information Technology

In contemporary systems there is a growing interdependence between a firms information systems and its business capabilities. Changes in strategy, rules, and business processes increasingly require changes in hardware, software, databases, and telecommunications. Often, what the organization would like to do depends on what its systems will permit it to do.

Figure 1-2

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Chapter 1 Information Systems in Global Business Today

Management Information Systems

Perspectives on Information Systems

Information system:

Set of interrelated components Collect, process, store, and distribute information Support decision making, coordination, and control Data are streams of raw facts Information is data shaped into meaningful form

Information vs. data

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Chapter 1 Information Systems in Global Business Today

Management Information Systems

Perspectives on Information Systems

Data and Information

Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory.

Figure 1-3
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Chapter 1 Information Systems in Global Business Today

Management Information Systems

Perspectives on Information Systems

Information system: Three activities produce information organizations need

Input: Captures raw data from organization or external environment Processing: Converts raw data into meaningful form Output: Transfers processed information to people or activities that use it

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Chapter 1 Information Systems in Global Business Today

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Perspectives on Information Systems

Feedback:

Output returned to appropriate members of organization to help evaluate or correct input stage

Computer/Computer program vs. information system

Computers and software are technical foundation and tools, similar to the material and tools used to build a house

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Chapter 1 Information Systems in Global Business Today

Management Information Systems

Perspectives on Information Systems

Functions of an Information System

An information system contains information about an organization and its surrounding environment. Three basic activitiesinput, processing, and outputproduce the information organizations need. Feedback is output returned to appropriate people or activities in the organization to evaluate and refine the input. Environmental actors, such as customers, suppliers, competitors, stockholders, and regulatory agencies, interact with the organization and its information systems.

Figure 1-4
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Chapter 1 Information Systems in Global Business Today

Management Information Systems

Perspectives on Information Systems

Information Systems Are More Than Computers

Using information systems effectively requires an understanding of the organization, management, and information technology shaping the systems. An information system creates value for the firm as an organizational and management solution to challenges posed by the environment.

Figure 1-5
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Chapter 1 Information Systems in Global Business Today

Management Information Systems

Perspectives on Information Systems

Organizational dimension of information systems

Hierarchy of authority, responsibility

Senior management Middle management Operational management Knowledge workers Data workers Production or service workers

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Chapter 1 Information Systems in Global Business Today

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Perspectives on Information Systems

Levels in a Firm

Business organizations are hierarchies consisting of three principal levels: senior management, middle management, and operational management. Information systems serve each of these levels. Scientists and knowledge workers often work with middle management.

Figure 1-6
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Chapter 1 Information Systems in Global Business Today

Management Information Systems

Perspectives on Information Systems

Organizational dimension of information systems (cont.)

Separation of business functions

Sales and marketing Human resources Finance and accounting Manufacturing and production

Unique business processes Unique business culture Organizational politics

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Chapter 1 Information Systems in Global Business Today

Management Information Systems

Perspectives on Information Systems

Management dimension of information systems

Managers set organizational strategy for responding to business challenges In addition, managers must act creatively:

Creation of new products and services Occasionally re-creating the organization

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Management Information Systems

Perspectives on Information Systems

Technology dimension of information systems

Computer hardware and software Data management technology Networking and telecommunications technology

Networks, the Internet, intranets and extranets, World Wide Web

IT infrastructure: provides platform that system is built on

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Chapter 1 Information Systems in Global Business Today

Management Information Systems

Perspectives on Information Systems

Business perspective on information systems:

Information system is instrument for creating value Investments in information technology will result in superior returns:

Productivity increases Revenue increases Superior long-term strategic positioning

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Chapter 1 Information Systems in Global Business Today

Management Information Systems

Perspectives on Information Systems

Business information value chain

Raw data acquired and transformed through stages that add value to that information Value of information system determined in part by extent to which it leads to better decisions, greater efficiency, and higher profits

Business perspective: Calls attention to organizational and managerial nature of information systems
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Chapter 1 Information Systems in Global Business Today

Management Information Systems

Perspectives on Information Systems

The Business Information Value Chain

From a business perspective, information systems are part of a series of value-adding activities for acquiring, transforming, and distributing information that managers can use to improve decision making, enhance organizational performance, and, ultimately, increase firm profitability.

Figure 1-7
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Chapter 1 Information Systems in Global Business Today

Management Information Systems

Perspectives on Information Systems

Variation in Returns on Information Technology Investment

Although, on average, investments in information technology produce returns far above those returned by other investments, there is considerable variation across firms.

Figure 1-8
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Chapter 1 Information Systems in Global Business Today

Management Information Systems

Perspectives on Information Systems

Investing in information technology does not guarantee good returns Considerable variation in the returns firms receive from systems investments Factors:

Adopting the right business model Investing in complementary assets (organizational and management capital)

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Chapter 1 Information Systems in Global Business Today

Management Information Systems

Perspectives on Information Systems

Complementary assets:

Assets required to derive value from a primary investment Firms supporting technology investments with investment in complementary assets receive superior returns E.g.: invest in technology and the people to make it work properly

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Chapter 1 Information Systems in Global Business Today

Management Information Systems

Perspectives on Information Systems

Complementary assets include:

Organizational investments, e.g.

Appropriate business model Efficient business processes Incentives for management innovation Teamwork and collaborative work environments The Internet and telecommunications infrastructure Technology standards

Managerial investments, e.g.

Social investments, e.g.

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