MANAGEMENT

INFORMATION SYSTEMS
By
Kenneth C. Laudon
Jane P. Laudon
 WHAT IS AN INFORMATION
SYSTMEMS?

 Information Systems is a set of interrelated

components that collect, process, store and
distribution information to support decision
making and control in an organization
What is an Information?
Data and Information
 What is an MIS?

 MIS (management information systems) is a

general term for the computer systems in an
enterprise that provide information about its
business operations
 OBJECTIVES

 Why information systems are so important

today for business and management

 Evaluate the role of information systems in

today’s competitive business environment

 Assess the impact of the Internet and Internet

technology on business and government
 OBJECTIVES
 Define an information system from both
a technical and business perspective
and distinguish between computer
literacy and information systems literacy

 Identify the major management

challenges to building and using
information systems
Function of Information System
The Business Information Value
Chain
 Why Information Systems?

 CAPITAL MANAGEMENT

 FOUNDATION OF DOING BUSINESS

 PRODUCTIVITY

 STRATEGIC OPPORTUNITY
 Capital management

 Information technology has become the

largest component of capital investment
 Foundation of Doing Business
 Growing interdependence between a firm’s ability to use
information technology and its ability to implement
corporate strategies and achieve corporate goals.
 PRODUCTIVITY
 A substantial and growing body of research
reported, Investment in IT plays a critical
role in increasing the productivity of firms
and entire nations.
 i.e. U.S. Federal Reserve Bank estimate
that IT contributed to the lowering of inflation
by 0.5 to 1 percentage in productivity growth
Strategic Opportunity and Advantage

 If you want to achieve a strategic advantage

over your rivals, to differentiate yourself
from competitors, IT is one avenue for
achieving such advantage along with
changes in business practices and
management.
 How Much Does IT Matter?

 In May 2003 Nicholas Carr an Editor at

Harvard Business Review wrote an Article
“IT Doesn’t Matter”.

 MIS experts disagree.

 Why IT now?
Digital Convergence & Changing
Business Environment
 Internet growth and technology convergence

 Transformation of the business enterprise

 Growth of globally connected economy

 Growth of knowledge and information based economies

 Emergence of the digital firm

 Internet growth and technology
convergence

 The internet bringing convergence of

technologies, rolling markets, entire
industries and firms in the process.
i.e. Convergence to telephone networks to merging
into the internet & cellular phones.
i.e. renew of driving licenses and application for
unemployment can be done online.
 Transformation of the Business
Enterprise
 The new style of business is flattened,
decentralized, flexible arrangement of
generalists who rely on nearly instant
information to deliver mass-customized
products and service uniquely suited to
customers.

In U.S. 20 percent of travel sales are made online

and experts believe that 50 to 70 percent of travel
sale will be online within decade.
 Globalization

 IS provide the communication and analytic

power that firms need to conduct trade and
manage business on a global scale.
 Controlling global corporation and
communicating with distributors and
suppliers is a major business challenge.
 Growth of information economy
 By 1976 no. of white-collar workers
surpassed the no. of Blue-collar workers.
 Emergence of the Digital Firm
 Digital firm sense and respond to their environment more
rapidly that traditional firm giving more flexibility and
survive in turbulent time.
Dimensions of Information Systems

 ORGANIZATIONS

 MANAGEMENT

 TECHNOLOGY
Dimensions of Information Systems
 The challenges of Information
Systems
 IS investment challenge

 Strategic challenge

 Globalization challenge

 IT infrastructure challenge

 Ethics and security