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Management Information Systems
ManagIng Information Technology in the E–Business Enterprise

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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 Ebusiness, 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

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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

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An IS Framework for Business Professionals

Dept. of IS& Engg. BC E, SHRAVANABELAGOLA

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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

Dept. of IS& Engg. BC E, SHRAVANABELAGOLA

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What is an Information System?
Control of System Performance

Input of Data Resources

Processing Data

Output of Information Products

Storage of Data Resources

Dept. of IS& Engg. BC E, SHRAVANABELAGOLA

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What is a System?
Environment

Feedback Signals Control Signals

Feedback Signals

Control by Management

Control Signals

Input of Raw Materials System Boundary

Manufacturing Process

Output of Finished Products

Other Systems Dept. of IS& Engg. BC E, SHRAVANABELAGOLA

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Components of an Information System

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Data versus Information

Monthly Sales Report for West Region

nn es a 0 es M Sho 10 arl M 0 T 20 t Ch 1 s We 154 79

Sales Rep: Charles Mann Emp No. 79154 Item Qty Sold Price TM Shoes 1200 $100

Dept. of IS& Engg. BC E, SHRAVANABELAGOLA

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Attributes of Information Quality

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Logical Data Elements
Name Field

Payroll Record

Payroll File

Personnel Database

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Major Roles of Information Systems

Support of Strategic Advantage Support of Managerial Decision Making

Support of Business Operations Dept. of IS& Engg. BC E, SHRAVANABELAGOLA

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History of the role of Information Systems
1950-1960 Data Processing Electronic Data Processing - TPS 1960-1970 Management Reporting 1970-1980 Decision Support 1980-1990 Strategic & End User 1990-2000 Electronic Commerce

Management Information Systems

Decision Support Systems - Ad hoc Reports

End User Computing Exec Info Sys Expert Systems SIS

Electronic Business & Commerce -Internetworked E-Business & Commerce

Dept. of IS& Engg. BC E, SHRAVANABELAGOLA

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

Engineering & Research

Manufacturing and Production Intranets

Accounting, Finance, and Management

Advertising Extranets

Sales

Customer Service

Consumer and Business Customers

Dept. of IS& Engg. BC E, SHRAVANABELAGOLA

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Types of Information Systems
Information Systems

Support of business operation

Operations Support Systems

Management Support Systems

Support of Managerial Decision Making

Transaction Processing Systems

Process Control Systems

Enterprise Collaboration Systems

Management Information Systems

Decision Support Systems

Executive Information Systems

Processing Business Transaction

Control of Industrial Process

Team & Work Collaboration system

Pre specified Reporting for Manager

Interactive Decision Support

Information Tailored for Executives

Dept. of IS& Engg. BC E, SHRAVANABELAGOLA

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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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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? Dept. of IS& Engg. BC E, SHRAVANABELAGOLA

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Management Challenges of the E-Business Enterprise
•Business Strategies •Business Processes •Business Needs

•IS Human Resources •IS Development

•IT Infrastructure •IS Performance

•Customer Relationships •Business Partners •Suppliers •Business Customers

•Organization Structure •and Culture •User Acceptance

Ethical Considerations Potential Risks? Potential Laws? Possible Responses?

Dept. of IS& Engg. BC E, SHRAVANABELAGOLA

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Chapter Summary
• Information Systems play a vital role in the efficient and effective operations of EBusiness, E-Commerce and enterprise collaboration. • The business professional must know:
– – – – Foundations (fundamentals) of IS Information Technologies Business Applications Development Processes; and

– Managerial Challenges

Dept. of IS& Engg. BC E, SHRAVANABELAGOLA

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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

Dept. of IS& Engg. BC E, SHRAVANABELAGOLA

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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.

Dept. of IS& Engg. BC E, SHRAVANABELAGOLA

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Chapter Summary (cont)
• IS Resources:
– – – – – – – – – – – Hardware Resources Software Resources People Resources Data Resources Network Resources Paper Reports Visual Displays Multimedia Documents Electronic Messages Graphics images Audio Responses Dept. of IS& Engg. BC E, SHRAVANABELAGOLA

• Products:

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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

Dept. of IS& Engg. BC E, SHRAVANABELAGOLA

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