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DPB20043

MANAGEMENT
INFORMATION SYSTEM
CHAPTER 1
OVERVIEW OF MANAGEMENT SYSTEM
WHAT IS INFORMATION SYSTEMS?

Information system refer to the systems, people and processes designed to


create, store, manipulate, distribute and disseminate information.

One of the reasons people may not distinguish between IS and IT is that
they assume all information systems are computer-based systems. An
information system, however, can be as simple as a pencil and a piece of
paper. Separate, the objects are just tools. Used together, they create a
system for recording information.
WHAT IS INFORMATION TECHNOLOGY?

Information technology deals with the technology involved in the systems


themselves. Information technology can be defined as the study, design,
implementation, support or management of computer-based information systems.

IT typically includes hardware, software, databases and networks. Information


technology often governs the acquisition, processing, storage and dissemination of
digitized information, or data, generated through the disciplines of computing and
telecommunications. Information technology focuses on managing technology and
improving its utilization to advance the overall business goals.
1.1 DISCUSS THE OVERVIEW OF INFORMATION SYSTEMS:
DIFFERENTIATE BETWEEN INFORMATION TECHNOLOGY AND
INFORMATION SYSTEM
Summary
Information System vs Information Technology

Various
All components
hardware,
and resources to
Software and
deliver
networking
information and
components
processing
necessary for
function to the
the system to
organization.
operate
1.1 DISCUSS THE OVERVIEW OF INFORMATION SYSTEMS:

OVERVIEW OF MANAGEMENT INFORMATION SYSTEM

M = MANAGEMENT (MANAGERS)

I = INFORMATION

S = SYSTEM
1.1 DISCUSS THE OVERVIEW OF INFORMATION SYSTEMS:

OVERVIEW OF MANAGEMENT INFORMATION SYSTEM


Managers perceive business challenges in the environment; they set the
organizational strategy for responding to those challenges; and they allocate
the human and financial resources to coordinate the work and achieve
success.
A substantial part of management responsibility is creative work driven by
new knowledge and information. Information technology can play a powerful
role in helping managers design and deliver new products and services and
redirecting and redesigning their organizations.
1.1 DISCUSS THE OVERVIEW OF INFORMATION SYSTEMS:

OVERVIEW OF MANAGEMENT INFORMATION SYSTEM


1.1 DISCUSS THE OVERVIEW OF INFORMATION SYSTEMS:

OVERVIEW OF MANAGEMENT INFORMATION SYSTEM


A set of interrelated components that collect (or retrieve), process,
store, and distribute information to support decision making and control in
an organization. In addition to supporting decision making, coordination, and
control, information systems may also help managers and workers analyze
problems, visualize complex subjects, and create new products.
1.1 DISCUSS THE OVERVIEW OF INFORMATION SYSTEMS:

OVERVIEW OF MANAGEMENT INFORMATION SYSTEM

Management information systems (MIS) is a business function, like accounting


and human resources, which moves information about people, products, and
processes across the company to facilitate decision making and problem solving. MIS
incorporates systems thinking to help companies operate cross-functionally.

i.e;
to fulfill product orders, an MIS for sales moves a single customer order across all
functional areas including sales, order fulfillment, shipping, billing, and finally customer
service.
1.1 DISCUSS THE OVERVIEW OF INFORMATION SYSTEMS:

EXPLAIN THE HISTORY OF MANAGEMENT INFORMATION SYSTEM


According to Kenneth C. Laudon and Jane Laudon,
The five phases in the development of computing technology:
First era: Mainframe and minicomputer computing
Second era: Personal computers
Third era: Client/server networks
Fourth era: Enterprise computing
Fifth era: Cloud computing
1.1 DISCUSS THE OVERVIEW OF INFORMATION SYSTEMS:

EXPLAIN THE HISTORY OF MANAGEMENT INFORMATION


SYSTEM
First era: Mainframe and minicomputer computing
These computers would often take up whole rooms and require teams to run them -
IBM supplied the hardware and the software. As technology advanced, these
computers were able to handle greater capacities and therefore reduce their cost.
IBM mainframes are large computer systems produced by IBM since 1952.
During the 1960s and 1970s, the term mainframe computer was almost
synonymous with IBM products due to their market share.
Current mainframes in IBM's line of business computers are developments of the
basic design of the IBM System/360.
1.1 DISCUSS THE OVERVIEW OF INFORMATION SYSTEMS:

EXPLAIN THE HISTORY OF MANAGEMENT INFORMATION


SYSTEM
Second era: Personal computers

Microprocessors started to compete with mainframes and minicomputers


and accelerated the process of decentralizing computing power from large
data centers to smaller offices. In the late 1970s minicomputer technology
gave way to personal computers and relatively low cost computers were
becoming mass market commodities.
1.1 DISCUSS THE OVERVIEW OF INFORMATION SYSTEMS:

EXPLAIN THE HISTORY OF MANAGEMENT INFORMATION


SYSTEM

Third era: Client/server networks

The need to share Information within an enterprise also grew, giving rise to
the third era (client/server), in which computers on a common network
access shared information on a server.
1.1 DISCUSS THE OVERVIEW OF INFORMATION SYSTEMS:

EXPLAIN THE HISTORY OF MANAGEMENT INFORMATION


SYSTEM

Fourth era: Enterprise computing

The fourth era (enterprise) enabled by high speed networks, tied all aspects
of the business enterprise together offering rich information access
encompassing the complete management structure. Every computer is
utilized.
1.1 DISCUSS THE OVERVIEW OF INFORMATION SYSTEMS:

EXPLAIN THE HISTORY OF MANAGEMENT INFORMATION


SYSTEM

Fifth era: Cloud computing


The fifth era (cloud computing) is the latest and employs networking
technology to deliver applications as well as data storage independent of the
configuration, location or nature of the hardware. This, along with high speed
cell phone and Wi-Fi networks, led to new levels of mobility in which
managers access the MIS remotely with laptop and tablet computers, plus
smart phones.
1.2 DESCRIBE THE DIMENSION OF INFORMATION SYSTEM

Identify basic activities of Information System

a) Input
b) Process
c) Output
1.2 DESCRIBE THE DIMENSION OF INFORMATION SYSTEM

Identify basic activities of Information System


1.2 DESCRIBE THE DIMENSION OF INFORMATION SYSTEM

Identify basic activities of Information System

Input (Data Collected)


Data consists of raw facts, such as an employee number, total hours worked
in a week, inventory part numbers, or sales orders. Several types of data can
represent these facts. When facts are arranged in a meaningful manner, they
become information.
1.2 DESCRIBE THE DIMENSION OF INFORMATION SYSTEM

Identify basic activities of Information System

Input (Data Collected)


1.2 DESCRIBE THE DIMENSION OF INFORMATION SYSTEM

Identify basic activities of Information System

Process
The act of taking Inputted data and converting it to something
usable.Processing takes place in the internal parts of the computer. It is the act
of taking inputted data and converting it to something usable.
1.2 DESCRIBE THE DIMENSION OF INFORMATION SYSTEM

Identify basic activities of Information System

Output
Processed information in a usable format, comes in many different forms: monitor or
printer for visual work, a speaker for audio. Sometimes our output is short-term,
such as printing a photo, and sometimes what we work on needs to be kept
1.2 DESCRIBE THE DIMENSION OF INFORMATION SYSTEM

Identify the components of Information System

i. Hardware
ii. Software
iii. Data
iv. People
v. Process
1.2 DESCRIBE THE DIMENSION OF INFORMATION SYSTEM

Identify the components of Information System


1.2 DESCRIBE THE DIMENSION OF INFORMATION SYSTEM

Identify the components of Information System

i. Hardware
Hardware is the most visible part of any information system: the equipment such as
computers, scanners and printers that is used to capture data, transform it and present it to
the user as output.
1.2 DESCRIBE THE DIMENSION OF INFORMATION SYSTEM

Identify the components of Information System

ii. Software
These are the programs used to organize, process and analyze data.
1.2 DESCRIBE THE DIMENSION OF INFORMATION SYSTEM

Identify the components of Information System

iii. Data
Information systems work with data, organized into tables and files.
1.2 DESCRIBE THE DIMENSION OF INFORMATION SYSTEM

Identify the components of Information System

iv. People
People consist of device operators, network administrators and system specialist.
1.2 DESCRIBE THE DIMENSION OF INFORMATION SYSTEM

Identify the components of Information System

v. Process
Information processing consists of input; data process, data storage, output and control.
1.3 identify system innovation in business today

System innovation in business

There are three interrelated changes in the technology area:


i. The emerging mobile digital platform
ii. The growing business use of "big data, and
iii. The growth in “cloud computing,” where more and more business software runs
over the Internet.
1.3 identify system innovation in business today

The roles of information system in business


a) Business Transformation
b) Globalization opportunities
c) Digital firms
1.3 identify system innovation in business today

The roles of information system in business

Business Transformation
The set of logically related tasks and behaviors that organizations
develop over time to produce specific business results and the unique manner
in which these activities are organized and coordinated. Developing a
new product, generating and fulfilling an order, creating a marketing plan, and
hiring an employee are examples of business processes, and the ways
organizations accomplish their business processes can be a source of
competitive strength.
1.3 identify system innovation in business today

The roles of information system in business


Globalization opportunities
The possibilities of globalization for business success are significant,
fundamental forces are operating to inhibit a global economy and to involved
in international business.
The emergence of the Internet into a full-blown international
communications system has drastically reduced the costs of operating and
transacting on a global scale. Customers can now shop in a worldwide
marketplace, obtaining price and quality information reliably 24 hours a day
1.3 identify system innovation in business today

The roles of information system in business

Digital Firms
A digital firm is one in which nearly all of the organization’s significant
business relationships with customers, suppliers, and employees are
digitally enabled and mediated. Core business processes are
accomplished through digital networks spanning the entire
organization or linking multiple organizations.

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