1

Management Information Systems

ManagIng Information Technology in the E–Business Enterprise

Chapter
1
Foundations
of Information
Systems
in Business
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Chapter Objectives
• Explain why knowledge of information
systems is important for business
professionals and identify five areas of
information systems knowledge they
need.
• Give examples to illustrate how E-
business, electronic commerce, or
enterprise collaboration systems could
support a firm’s business processes,
managerial decision making, and
strategies for competitive advantage.
Dept. of IS& Engg. BC E, SHRAVANABELAGOLA
 Management Information Systems 3

Chapter Objectives
• Provide examples of real world
information systems, including the
people, hardware, software, data, and
network resources that compose them.
• Provide examples of several major types of
information systems from your experiences
with business organizations in the real world.
• Identify several challenges that a business
manager might face in managing the
successful and ethical development and use of
information technology in a business.

Dept. of IS& Engg. BC E, SHRAVANABELAGOLA

 Management Information Systems 4

An IS Framework for Business Professionals

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 Management Information Systems 5

Why Study of Information Systems?

Pervasive in Business
Linked to Strategy

High-profile Successes
and Failures
Major Business
Functional Area

Leaders Face Difficult

IS Issues

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 Management Information Systems 6

What is an Information System?

Control of System Performance

Input of Output of
Processing
Data Information
Data
Resources Products

Storage of Data Resources

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What is 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
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 Management Information Systems 8

Components of an Information System

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Data versus Information

Monthly Sales Report

for West Region
n n s
M a oe Sales Rep: Charles Mann
0
0 rles Sh Emp No. 79154
1
2 00 Cha TM Item Qty Sold Price
1 st TM Shoes 1200 $100
We 154
79

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Attributes of Information Quality

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 Management Information Systems 11

Logical Data Elements

Name
Field

Payroll
Record

Payroll
File

Personnel
Database

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 Management Information Systems 12

Major Roles of Information Systems

Support of
Strategic
Advantage

Support of
Managerial
Decision Making

Support of
Business Operations

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 Management Information Systems 13

History of the role of Information Systems

1950-1960 1960-1970 1970-1980 1980-1990 1990-2000

Data Management Decision Strategic & Electronic

Processing Reporting Support End User Commerce

Electronic
Data Management
Processing Information
- TPS Decision
Systems
Support
Systems End User
- Ad hoc Computing
Reports Exec Info Sys Electronic
Expert Systems Business &
SIS Commerce
-Internetworked
E-Business &
Commerce

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The Internetworked -Business

The Internet
Suppliers and Other Business Partners Company
Boundary
Procurement, Distribution, and Logistics
Extranets

Manufacturing Accounting,
Engineering &
and Finance, and
Research
Production Management

Intranets

Advertising Sales Customer Service

Extranets

Consumer and Business Customers

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Types of Information Systems

Information Systems

Support of Operations Management Support of

business Managerial
Support Support
operation Decision
Systems Systems
Making

Transaction Process Enterprise Management Decision Executive

Processing Control Collaboration Information Support Information
Systems Systems Systems Systems Systems Systems

Processing Control of Team & Work Pre Interactive Information

Business Industrial Collaboration specified Decision Tailored for
Transaction Process system Reporting Support Executives
for Manager
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Other Categories of Information Systems

Expert Systems

Knowledge Management Systems

Functional Business Systems

Strategic Information Systems

Cross-Functional Information Systems

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The Information Systems Development Process

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 Management Information Systems 18

Increasing Complex Ethical Issues

Many Important Ethical Considerations Must be Addressed
in Information Technology Decisions.
Some Ethical Impacts May Not be Readily Apparent

What IT Uses are Improper, Irresponsible, Harmful to Society

And / or the Individual?

What are Appropriate Uses of Business IT Assets?

What are the Impacts of IT Decisions?: Jobs, Safety, Workplace

How Do We Protect Against Computer Crime and What are the Tradeoffs?

How Do We Assure an Individuals’ Privacy?

How Do We Address Software Piracy?

How Do We Protect Intellectual Property?
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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?
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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:
– Foundations (fundamentals) of IS
– Information Technologies
– Business Applications
– Development Processes; and
– Managerial Challenges

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Information System Resources

• People Resources End User, IS Specialist

• Hardware Resources Computer System

• Software Resources System, Application,

Procedure

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Information System Resources

• Data Resources

• Network Resources Communication Media

• Information Product

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Chapter Summary (cont)

• A system is a group of interrelated components
working toward the attainment of a common
goal by accepting inputs and producing
outputs in an organized transformation
process.
• An information system uses the resources of
people, hardware, software, data, and networks
to perform input, processing, output, storage
and control activities.

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Chapter Summary (cont)

• IS Resources:
– Hardware Resources
– Software Resources
– People Resources
– Data Resources
– Network Resources
• Products:
– Paper Reports
– Visual Displays
– Multimedia Documents
– Electronic Messages
– Graphics images
– Audio Responses

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Chapter Summary (cont)

• Information systems perform three vital roles in
business firms. They support:
– Business processes and operations,
– Business decision making; and
– Strategic competitive advantage
• Major application categories of information
systems include:
– Operations Support Systems; and
– Management Support Systems

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