Course Code: 19MBA511B

Course Title: Management Information Systems

Course Leader:
Ms. Shilpa R.G.

Email: shilparg.ms.mc@msruas.ac.in

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Course Code: 19MBA511A

Course Title: Management Information Systems

Session 1_3: Organizations, Management and the Networked

Enterprise, Managing the Digital Firm, Information Systems in the
Enterprise, Data vs. information, Strategic role of information in
management

Course Leader:

Ms. Shilpa R.G.

shilparg.ms.mc@msruas.ac.in
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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Session Objectives

At the end of this session, student will be able to:

• Discuss the need and importance of information systems

• Evaluate the role of information systems in today’s

competitive business environment

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Session Contents

• Data and information

• Need for an Information System

• Relationship between Organisation and Information system

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Information & Management

• Data-----Raw Material

• Information----Processed data, finished product

• Collecting data costs money

• Data useless unless it is processed to obtain

information which can be used to arrive at
marketing decisions

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Data versus Information
Information: the meaning given to data by the way it is interpreted

Interpretation
Data Information

Data on its own has no meaning, only when interpreted by some kind of data
processing system does it take on meaning and become information

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Faculty
©M. S. of Management
Ramaiah andofCommerce
University Applied Sciences © Ramaiah University of Applied Sciences
 Data versus Information

Monthly Sales Report

for West Region

Sales Rep: Charles Mann

Emp No. 79154
Item Qty Sold Price
TM Shoes 1200 $100

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Data versus Information
• Generating Information
• Computer-based ISs take data as raw material, process it, and
produce information as output

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Information

• Information is critical

• The information we have is not what we want

• The information we want is not the information

we need

• The information we need is not available

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Characteristics of Information

• Improves representation of an entity

• Updates the level of knowledge

• Has a surprise value

• Reduces uncertainty

• Aids in decision-making

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Types of Information

• Strategic information

• Tactical information

• Operational information

• Statutory information

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Business Functions

• Accounting

• Finance

• Marketing

• Production

• Human Resource Management

• Other functions

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Information Systems (IS) defined

• IS is a well-coordinated collection of resources that gather

and transform data into information products and services
that help the enterprise perform its designed functions

• A set of interrelated components that collect (or retrieve),

process, store, and distribute information to support
decision making and control in an organisation

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Information Systems (IS) defined

An information system hierarchy associates different

classifications of information systems with different
audiences

Three significant trends influence the evolution of

information systems and provide opportunities for the
entrepreneurial systems analyst:
 The emergence of small enterprise computing

 The Internet as a dominating technology

 The maturation of application software

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 Organisation as an Information System

Information System hierarchy

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Need for Information Systems

Four powerful worldwide changes that have altered

the business environment:
• Emergence of the global economy

• Transformation of industrial economies

• Transformation of the business enterprise

• The emerging digital firm

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Need for Information Systems

Emergence of the global economy

• Management and control in a global marketplace

• Competition in world markets

• Global work groups

• Global delivery systems

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Need for Information Systems

Transformation of industrial economies

• Knowledge- and information-based economies

• Productivity

• New products and services

• Knowledge: a central productive and strategic asset

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Need for Information Systems

Transformation of industrial economies

• Time-based competition

• Shorter product life

• Turbulent environment

• Limited employee knowledge base

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Need for Information Systems
Transformation of the business enterprise

• Flattening

• Decentralization

• Flexibility

• Location independence

• Low transaction and coordination costs

• Empowerment

• Collaborative work and teamwork

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Need for Information Systems

Emergence of the digital firm

• Digitally-enabled relationships with customers, suppliers,

and employees

• Core business processes accomplished via digital networks

• Digital management of key corporate assets

• Rapid sensing and responding to environmental changes

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 Summary
• Data on its own has no meaning, only when interpreted by some
kind of data processing system does it take on meaning and
become information

• Business Systems is a system which is capable of performing

business functions

• An information system is a well-coordinated collection of resources

that gather and transform data into information products and
services that help the enterprise perform its designed functions

• An information system hierarchy associates different classifications

of information systems with different audiences 22
Faculty of Management and Commerce © Ramaiah University of Applied Sciences