ASSIGNMENT On

Summary of MIS Book

Submitted To: Prosanjit Saha

Assistant Professor

Department of Tourism &Hospitality Management

Faculty of Business Studies

University Of Dhaka

Submitted By: Oaisharia Vocto Oishi

Id: 51 SEC: A

Course Code: 311

Department of Tourism &Hospitality Management

Faculty of Business Studies

University Of Dhaka

Submitted Date: 07/09/2020

 CHAPTER: 1

Information Systems in Global Business Today

Information systems and technologies are transforming the global business environment. Most of
us will work for firms that are intensively using information systems and making large
investments in information technology. E-mail, online conferencing and tablet computers have
become important tools for conducting business, which are looking like the foundation of fast-
paced supply chains. The Internet is now dramatically reducing the costs of producing, buying,
and selling goods on a global scale. New information system creates include the emerging
mobile digital platform, big data, and cloud computing because of revolutionizing of MIS. In
many organizations, survival and the ability to gain strategic business goals are difficult without
proper use of information technology. Nowadays businesses use information systems to achieve
six major objectives: operational excellence (improve the efficiency of their operations in order
to achieve higher profitability); new products, services, and business models; customer and
supplier intimacy; improved decision-making; competitive advantage (Doing things better than
its competitors do) and survival. An information system contains information about an
organization and its surrounding environment with three basic activities including input,
processing, and output (produce the information organizations need). Feedback is output
returned to appropriate people or activities in the organization to evaluate the input according to
standards. Environmental factors, such as customers, suppliers, competitors, stockholders, and
regulatory agencies, interact with the organization and its information systems. 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.
Organizations have a structure that is composed of different levels and specialties including
senior management (makes long-range strategic decisions) middle management (carries out the
programs and plans of senior management), and operational management (responsible for
monitoring the daily activities). From a technical perspective, an information system collects,
stores, and disseminates information from an organization’s environment and internal operations
to support organizational functions and decision-making, communication, coordination, control,
analysis, and visualization. Complementary social, managerial and organizational assets required
to optimize returns from information technology investments including organizational assets,
managerial assets and social assets. The management dimension of information systems involves
issues such as leadership, strategy, and management behavior indicates technical approach and
behavior approach. The disciplines that contribute to the technical approach focusing on formal
models and capabilities of systems are computer science, management science, and operations
research. The disciplines contributing to the behavioral approach focusing on the design,
implementation, management, and business impact of systems are psychology, sociology, and
economics. A socio-technical view of systems considers both technical and social features of
systems and solutions that represent the best fit between them for the organization until a
satisfactory fit is obtained.

CHAPTER: 2

Global E-business and Collaboration

Organizations today rely on information systems to improve their performance and remain
competitive. Business processes refer to the manner in which business tasks are organized,
coordinated, and focused to produce a valuable product or service in a unique way. A company’s
business processes can be a source of competitive strength if managers enable the company to
innovate or to execute better than they enable its rival. There are specific business processes to
each of the major business functions, but many business processes are cross-functional.
Information systems automate parts of business processes, and they can help organizations
redesign and streamline these processes and can also actually change the flow of information,
making it possible for many more people to access and share information, replacing sequential
steps with tasks that can perform simultaneously, and eliminating delays in decision-making.
Organization has different systems serving operational management (transaction processing
systems and systems for business intelligence) supporting the decision-making needs of each of
the main management groups. Transaction processing systems (TPS) is a computerized system
that performs and records the daily routine transactions necessary to conduct business, such as
sales order entry, hotel reservations, payroll, employee record keeping, and shipping order
processing. Management information systems (MIS) produce reports serving middle
management by condensing information from TPS to monitor the status of internal operations
and the firm’s relations with the external environment, and these are not highly analytical.
Business intelligence is a contemporary term for data and software tools for organizing,
analyzing, and providing access to data to make decisions. . Decision-support systems (DSS)
focus on problems that are unique and rapidly changing, for which the procedure for arriving at a
solution may not be fully predefined in advance. ***All of these types of systems provide
business intelligence that helps managers and enterprise employees achieve goal. These systems
for business intelligence serve multiple levels of management and include Executive support
systems (evaluating non-routine decisions) for senior management that provide data in the form
of graphs, charts, and dashboards delivered via portals using many sources of internal and
external information. Enterprise applications are systems that span functional areas, focus on
executing business processes across the business firm. Enterprise systems coordinate the key
internal business processes of a firm into a single software system. Supply chain management
systems help the firm manage its relationship with suppliers to evaluate the planning, sourcing,
manufacturing, and delivery of products and services. Customer relationship management
(CRM) helps to manage their relationships with their customers. Knowledge management
systems enable organizations to manage processes for capturing and applying knowledge and
expertise. Intranets and extranets are private corporate networks based on Internet technology
that assemble information from disparate systems. Collaboration is working with others to
achieve shared and explicit goals. Social business is the use of internal and external social
networking platforms to engage employees, customers, and suppliers, and it can enhance
collaborative work. Collaboration focuses on mission accomplishment and usually takes place in
a business or other organization and between businesses; and social business have become
increasingly important in business because of globalization. Tools for collaboration and social
business include e-mail and instant messaging, wikis, virtual meeting systems, virtual world,
cloud based file-sharing services. The information systems department is the formal
organizational unit responsible for maintaining the hardware, software, data storage, and
networks that comprise the firm’s IT infrastructure. The department consists of specialists, such
as programmers, systems analysts, project leaders, and information systems managers.
 CHAPTER: 3

Information Systems, Organizations, and Strategy

The interaction between information technology and organizations is complex and is influenced
by many mediating factors, including the organization’s structure, business processes, politics,
culture, surrounding environment, and management decisions. In the microeconomic definition
of organizations, the firm through the production process into products and services transforms
capital and labor. Organizations differ in goals, groups served, social roles, leadership styles,
incentives, types of tasks performed, and type of structure. These features help explain
differences in organizations’ use of information systems. According to transaction cost theory,
firms and individuals seek to economize on transaction costs, much as they do on production
costs and according to agency theory, the firm is viewed as a “nexus of contracts” among self-
interested individuals rather than as a unified, profit-maximizing entity. Information systems
must be designed to serve the needs of important organizational groups including organization’s
structure, business processes, goals, culture, politics, and management and can reduce transaction
and agency costs, and such changes have been accentuated in organizations using the IS. In
Porter’s, competitive forces model, the strategic position of the firm and its strategies are
determined not only by competition with its traditional direct competitors but also by four other
forces in the industry’s environment: new market entrants, substitute products, customers, and
suppliers. Information systems strategies are dealing with competitive strategies by maintaining
low costs, differentiating products or services, focusing on market niche, strengthening ties with
customers and suppliers, and increasing barriers to market entry with high levels of operational
excellence. The value chain model highlights specific activities in the business where
competitive strategies can be applied and where information systems are most likely to have a
strategic impact. The value chain model highlights specific activities in the business where
competitive strategies and information systems will have the greatest impact. A firm’s value
chain can be linked to the value chains of its suppliers, distributors, and customers. The value
web is a networked system that can synchronize the value chains of business partners within an
industry to respond rapidly to changes in supply and demand. Firms consist of multiple business
units; information systems achieve additional efficiencies or enhance services by tying together
the operations of disparate business units. Information systems help businesses leverage their
core competencies (activity for which a firm is an excellent leader) by promoting the sharing of
knowledge across business units. The digital firm era requires a more dynamic view of the
boundaries among industries, firms, customers, and suppliers, with competition occurring among
industry sets in a business ecosystem. In business ecosystems, multiple industries work together
to deliver value to the customer. Information systems support a dense network of interactions
among the participating firms. Strategic information systems often change the organization as
well as its products, services, and operating procedures, driving the organization into new
behavioral patterns including strategic transitions (a movement between levels of socio-technical
systems) and those are often difficult to gain. Moreover, not all competitive advantages are
always sustainable for an organization.

CHAPTER: 5

IT Infrastructure and Emerging Technologies

A firm’s IT infrastructure consists of a set of physical devices and software applications that are
required to operate the entire enterprise for serving customers, working with vendors, and
managing internal firm business processes. The IT infrastructure in organizations today is an
outgrowth of more than 50 years of evolution in computing platforms and the five stages of IT
infrastructure evolution are the mainframe era, the personal computer era, the client/server era,
the enterprise computing era, and the cloud and mobile computing era. Moore’s Law deals with
the exponential increase in processing power and decline in the cost of computer technology,
stating that every 18 months the power of microprocessors doubles and the price of computing
falls in half. The Law of Mass Digital Storage deals with the cost of storing digital information is
falling at an exponential rate of 100 percent a year. Metcalfe’s Law states that the value or power
of a network grows exponentially as a function of the number of network members. Technology
standards are specifications that establish the compatibility of products and the ability to
communicate in a network. Seven major components must be coordinated to provide the firm
with a coherent IT infrastructure including computer hardware platforms, operating system
platforms, enterprise software platforms, networking and telecommunications platforms,
database management software, Internet platforms, and consulting services and systems
integrators. The new mobile platform includes small, lightweight notebooks optimized for
wireless communication and Internet access, tablet computers. Consumerization of IT, in which
new information technology that first emerges in the consumer market, spreads into business
organizations. Quantum computing uses the principles of quantum physics to represent data and
perform operations on these data. Virtualization is the process of presenting a set of computing
resources so that they can all be accessed in ways that are not restricted by physical configuration
or geographic location. Cloud computing is a model of computing which computer processing,
storage, software, and other services are provided as a shared pool of virtualized resources over a
network, primarily the Internet. Green computing or green IT, refers to practices and
technologies for designing, manufacturing, using, and disposing of computers the impact on the
environment. There are four major themes in contemporary software platform evolution
including Linux and open source software (produced and maintained by a global community of
programmers and is often downloadable free), Java, HTML and HTML5 (operating system and
hardware-independent programming language), Web services and service-oriented architecture
(refer to a set of loosely coupled software components), Software outsourcing and cloud
services. HTML5 makes it possible to embed images, audio, and video directly into a web
document without add-on programs. Companies are purchasing their new software applications
from outside sources, including software packages (prewritten commercially available set of
software by outsourcing custom application development to an external vendor (that may be
offshore), or by renting online software services (SaaS). Dealing with platform and infrastructure
change, infrastructure management and governance, and making wise infrastructure investments.
Solution guidelines include using a competitive forces model to determine how much to spend
on IT infrastructure and where to make strategic infrastructure investments, and establishing the
total cost of ownership (TCO) of information technology assets.
 CHAPTER: 6

Foundations of Business Intelligence: Databases and Information Management

Effective information system provides accurate information, which needed for making an error
free decision. A computer system organizes data in a hierarchy that starts with bits (the smallest
unit of data) and bytes (a single character, which can be a letter, number, or another symbol) and
progresses to fields (a group of characters into a word, a group of words, or a complete number),
records (comprising the student’s name, the course taken, the date, and the grade), files (calling a
group of records of the same type) and databases. In most organizations, systems; accounting,
finance, manufacturing, human resources, and sales and marketing all developed their each
application that required its files. The use of a traditional approach leads to data redundancy
(presence of duplicate data in multiple data files) and inconsistency (same attribute may have
different values) processing inflexibility, poor security and wasted storage resources. A database
management system (DBMS) is software that permits an organization to centralize data, manage
them efficiently, and provide access to the stored data by application programs to solve the
traditional problem including reduce data redundancy and inconsistency by minimizing isolated
files in which the same data are repeated. Most DBMS have a specialized language called a data
manipulation language that, used to add, change, delete, and retrieve the data in the database
such as SQL, is a specialized language for accessing and manipulating the data in the database.
The relational database has been the primary method for organizing and maintaining data in
information systems because of flexibility and accessibility. It organizes data in two-dimensional
tables called relations with rows and columns; each table contains data about an entity and its
attributes; each row represents a record; each column represents an attribute or field and each
table contains a key field that uniquely identify each record for manipulation. Designing a
database requires both a logical design (models the database from a business perspective) and a
physical design. Amazon and other cloud-computing vendors provide relational database
services as well and this cloud-based data management services have special appeal for web-
focused start-ups or small to medium-sized businesses seeking database capabilities at a lower
price than in-house database products. In addition to public cloud-based data management
services, companies now have the option of using databases in private clouds. Ultimately,
database and information system helps to error free effective decision for an organization.