References:

Laudon, K. C. and Laudon, J. P.,

Management Information Systems:
Managing the Digital Firm, 12th edition,
Prentice-Hall, 2011.

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Major Issues
 Why Information Systems (and what is that)?
 Contemporary Approaches to IS
 Scope and Roles of IS

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Why Information Systems?
 Information Systems are Transforming
Business
 Globalization Opportunities
 The Emerging Digital Firm
 Productivity
 Strategic Business Objectives of Information
Systems

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Why Information Systems?
 Operational Excellence
 New Products, Services and Business Models
 Customer and Supplier Intimacy
 Improved Decision Making
 Competitive Advantage
 Survival

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 People

Firm

Money Products

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 What is
And what is INFORMATION ?
DATA ?

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 Data
 Raw facts concerning occurrences or
happenings in a business
 Usually, too voluminous to be of use
to a manager

 Therefore, require to do some

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Information
 Data after transformation
 A collection of facts organized in
such a way that they have
additional value beyond the value
of the facts themselves

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 The process of transforming
data into information

Transform-
Data ation Information

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Data in an Organization
 Accounting data, marketing data, financial
data, production data, corporate data, etc...
 From journals, ledgers, sales vouchers, invoices,
work orders, staff records, etc...
 Organize these data in a meaningful way to
transform them into information

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 Transforming
data into information

Ledgers tables
Balance Sheets
charts
Sales Invoices calculations Sales Reports
lists
Staff records Staff
performance
report

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 Good Information (or data)
 Accurate: free from error, GIGO
 Complete: having all necessary parts
 Economical: the value outweighs the cost
 Reliable: from a known and good source
 Relevant: related to the matter at hand
 Simple: beware of overload
 Timely: fresh and new
 Verifiable: can be checked for correctness

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Now, what is a
SYSTEM ?

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 Basic Activities of a
System

Input Processing Output

FEEDBACK

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 O.K. Then, what is an

INFORMATION SYSTEM ?

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An Information System
A set of interrelated elements that
COLLECT (INPUT),

MANIPULATE (PROCESSING),

DISSEMINATE (OUTPUT)
data and information as well as a

FEEDBACK mechanism.

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Dimensions of
Information Systems
An Information System
can be
MANUAL
or
COMPUTERIZED

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 Automate routine, labor-intensive
TPS
daily business transaction processes

Computer Develop (periodical) reports for

MIS
Based management uses
Information
System Support problem specific
DSS
managerial decision making

Make decisions/recommendations
ESS
for the management

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 FUNCTIONS OF AN
INFORMATION SYSTEM

ENVIRONMENT
Customers Suppliers

ORGANIZATION
INFORMATION SYSTEM

INPUT PROCESS OUTPUT

FEEDBACK

Regulatory Stockholders Competitors

Agencies
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Major Issues
 Why Information Systems (and what is that)?
 Contemporary Approaches to IS
 Scope and Roles of IS

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 System Interdependence

INTERDEPENDENCE
HARDWARE

BUSINESS SOFTWARE DATABASE

Strategy
Rules TELE-
Procedures COMMUNICATIONS

ORGANIZATION INFORMATION SYSTEM

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Approaches to IS
TECHNICAL APPROACHES
COMPUTER
OPERATIONS
SCIENCE
RESEARCH
MANAGEMENT
SCIENCE
MIS
SOCIOLOGY

PSYCHOLOGY ECONOMICS

BEHAVIORAL APPROACHES
Major Issues
 Why Information Systems (and what is that)?
 Contemporary Approaches to IS
 Scope and Roles of IS

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Scope of Information Systems
IMPORTANT

Technical Managerial Institutional

Change Control Core Activities 2000s ..
50s 60s – 70s 80s – 90s

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 The Digital Firm
 Electronic Commerce
 Electronic Business
 Electronic Market
 Information system links buyers
& sellers to exchange
information, products,
services, payments

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What you will learn

WHAT

INFORMATION
SYSTEM
WHY HOW

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