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MANAGEMENT INFORMATION SYSTEM

Data
Facts or observation about physical phenomena or business transactions. More specifically, data are objective measurements of the attributes of entities such as people, place, things & events.

Information
Information is data placed in a meaningful and useful context for an end user.

Information Technology
Hardware, software, telecommunications, DB management, & other information processing technologies used in computer-based IS
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System System is a set of interrelated components, with a clearly defined boundary, working together to achieve a common set of objectives. Information systems A set of people, procedures, & resources that collects, transforms, and disseminates information in an organization. A system that accepts data resources as input and processes them into information products as output. Computer based IS; An IS that uses computer H/W & S/W to perform its information processing activities. IS can be any organized combination of People, Hardware, Software, Comm. networks, & data recourses that stores & retrieves, transforms, & disseminates information in an organization. 2

Information Technology in Business

IT includes internet based IS, are playing a vital & expanding role in business. IT can help in all kinds of business, to improve the efficiency & effectiveness of their business processes, managerial decision Making, & workgroup collaboration, thus strengthening their competitive positions in a rapidly changing market place.
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IS framework for Business Professional

Mgt Challenges

Business applications

IS

Foundation concept

Development processes Information Technology

Process of IS
All IS operate in the same basic fashion whether they include a computer or not. There are four stages of operations in the process of IS. They areEntering data into the IS Changing and manipulating the data in the IS Getting information out of the IS Storing the information and data
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FUNDAMENTAL ROLES OF IS IN BUSINESS;

Support strategies for Competitive advantage

Support business Decision making

Support business Processes & operation


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COMPONENTS OF IS;
People resources system activities Control of system performance Data resources Software resources

I/P of data resources

processing Data into information

O/P of information products

H/W resource

Storage of data resources

Network resources

Business Perspective of IS (or) IS/IT Changing the Business Environment

Organization Technology

IS
Management

1. IS is an important instrument for creating value for the organization 2. IS increasing the firms ROI and increasing the value of the firms stock 3. IS supports mgt DM, and enhance the execution of business process , as a result increases the business value
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Information, Decisions & Management

Strategic Management
Information

Unstructured decision

Tactical Management

Semi-Structured decision

Operational Management

Structured decision

Information, Decisions & Management


Types of Decisions Unstructured Operation Management Cash Mgt Tactical Management BPR, workgroup performance analysis Eyee performance appraisal, capital budget Program control Strategic Management New business planning

Semi-structured

Production schedule, daily work assignment Inventory control

Product planning, mergers & acquisition, site location

Structured

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Characteristics of Information
Accessible Accurate Simple Reliable Flexible Complete Relevant Secure Timely Verifiable
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TYPES OF INFORMATION SYSTEMS

IS

Operations Support systems

Management Support systems

TPS

Process Control systems

Enterprise Collaboration systems

MIS

DSS

EIS

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INFORMATION TECHNOLOGY
Information Technology refers to various H/W components necessary for the systems to operate Computer based IS use of IT; Computer H/W Technologies Computer S/W Technologies Telecommunication Network Technologies Data Resources Management Technologies

BUSINESS APPLICATIONS
The major uses of IS for the operations, management, & competitive Advantages of a business, Example; Marketing IS Mfg IS ERP CRM Accounting IS E-commerce & DSS
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DEVELOPMENT PROCESSES
Business professionals & information specialists plan, develop, & implement IS to meet business opportunities. The process of developing a companys business vision strategies, &goals, & how they will be supporting by the companys IT architectures & implemented By its business application development process. Examples; System development life cycle Prototyping approaches to business applications development

MANAGEMENT CHALLENGES
Computer crime Privacy issues Employment challenges Working condition Individuality Health issues Societal solution
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Organization and Information systems Changing environment and its impact on Business
Business operations Managerial decision making Strategic competitive advantage Efficiency and effectiveness Enabling entirely new processes

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What is an Information System?


Any organized combination of people, hardware, software, communications networks, and data resources that stores, retrieves, transforms, and disseminates information in an organization.

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Information Systems (IS) all components and resources necessary to deliver information and information processing functions to the organization Information Technology (IT) various hardware components necessary for the system to operate

Information Systems vs. Information Technology

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Management Information Systems


ORGANIZATIONS AND INFORMATION SYSTEMS

The Two-Way Relationship between Organizations and Information Technology

Figure 3-1

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Management Information Systems


ORGANIZATIONS AND INFORMATION SYSTEMS

What Is an Organization?

Organization:
Stable, formal social structure Takes resources from the environment and processes them to produce outputs

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Management Information Systems


ORGANIZATIONS AND INFORMATION SYSTEMS

Behavioral Definition of Organization:

Collection of rights, privileges, obligations, and responsibilities Delicately balanced over a period of time through conflict

Conflict resolution

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Management Information Systems


ORGANIZATIONS AND INFORMATION SYSTEMS

The Behavioral View of Organizations

Figure 3-3

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Management Information Systems


ORGANIZATIONS AND INFORMATION SYSTEMS

Common Features of Organizations All organizations have some similar structural features.

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Management Information Systems


ORGANIZATIONS AND INFORMATION SYSTEMS

Shared Features of all Organizations: Clear division of labor Hierarchy Explicit rules and procedures Impartial judgments

Table 3-1
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Management Information Systems


ORGANIZATIONS AND INFORMATION SYSTEMS

Shared Features of all Organizations: (Continued)

Technical qualifications for positions Maximum organizational efficiency

Table 3-1 (Continued)


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Management Information Systems


ORGANIZATIONS AND INFORMATION SYSTEMS

Organizational Culture

What products the organization should produce How and where it should be produced

For whom the products should be produced

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Management Information Systems


ORGANIZATIONS AND INFORMATION SYSTEMS

Unique Features of Organizations

Structures
Goals Constituencies Leadership styles Tasks Surrounding environments

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Management Information Systems


ORGANIZATIONS AND INFORMATION SYSTEMS

Organizations and Environments:

Organizations and environments have a reciprocal relationship. Organizations are open to, and dependent on, the social and physical environment. Organizations can influence their environments.

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Management Information Systems


ORGANIZATIONS AND INFORMATION SYSTEMS

Organizing the IT Function The information systems department is responsible for maintaining:

Hardware Software Data storage Networks

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Management Information Systems


ORGANIZATIONS AND INFORMATION SYSTEMS

Information Technology Services

Figure 3-6

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Management Information Systems

WHY INFORMATION SYSTEMS?

The Interdependence between Organizations and Information Systems

Figure 1-2

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Management Information Systems


PERSPECTIVES ON INFORMATION SYSTEMS

Functions of an Information System

Figure 1-6

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Kinds of organizational change that are enabled by IT

1.Automation 2.Rationalization 3.Reengineering 4.Paradigm shifts

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Data vs. Information


Data raw facts or observations typically about physical phenomena or business transactions Information data that have been converted into a meaningful and useful context for specific end users

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Various types of databases used in a computer organization


1. 2. 3. 4. 5. 6. External database Operational database End user database Distributed database Analytical database Data warehouses

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Conceptual Framework of IS Knowledge

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Roles of IS in Business

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Strategic Uses of Information Technology


Strategy
IT Role
Improving Business Process Promote Business Innovation Locking in Customers and Suppliers

Use IT to reduce costs of doing business

Use IT to create new products or services

Use IT to improve quality Use IT to link business to customers and suppliers

Outcome

Enhance Efficiency

Create New Business Opportunities

Maintain Valuable Customers and Relationships


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Strategic Uses of Information Technology


Strategy IT Role
Raise Barriers to Entry
Build a Strategic IT Platform Build a Strategic Information Base

Increase amount of investment or complexity of IT needed to compete

Leverage investment in IS resources from operat- ional uses to strategic uses

Use IT to provide information to support firms competitive strategy

Outcome

Increase Market Share

Create New Business Opportunities

Enhance Organizational Collaboration


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E-Business Information Technology Infrastructure

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IS Resources & Activities

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Management Information Systems

The Level of people and their information needs


DECISION MAKING AND DECISION-SUPPORT SYSTEMS

Information Requirements of Key Decision-Making Groups in a Firm

Figure 13-2

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Management Information Systems


Enhancing Decision Making for the Digital Firm DECISION MAKING AND DECISION-SUPPORT SYSTEMS

Types of Decisions
Unstructured decisions: Novel, non-routine decisions requiring judgment and insights

Examples: Approve capital budget; decide corporate objectives

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Management Information Systems


Enhancing Decision Making for the Digital Firm DECISION MAKING AND DECISION-SUPPORT SYSTEMS

Types of Decisions (Continued) Structured decisions: Routine decisions with definite procedures Examples: Restock inventory; determine special offers to customers

Semistructured decisions: Only part of decision has clear-cut answers provided by accepted procedures

Examples: Allocate resources to managers; develop a marketing plan

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Management Information Systems


Enhancing Decision Making for the Digital Firm DECISION MAKING AND DECISION-SUPPORT SYSTEMS

Systems for Decision Support There are four kinds of systems that support the different levels and types of decisions: Management Information Systems (MIS) Decision-Support Systems (DSS) Executive Support Systems (ESS) Group Decision-Support Systems (GDSS)

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Management Information Systems


Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

The Four Major Types of Information Systems

Figure 2-2

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Types of Information Systems

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Management Information Systems


Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Transaction Processing Systems (TPS)

Basic business systems that serve the operational level A computerized system that performs and records the daily routine transactions necessary to the conduct of the business

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Management Information Systems


Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

A Symbolic Representation for a Payroll TPS

Figure 2-3

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Management Information Systems


Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Typical Applications of TPS

Figure 2-4

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Management Information Systems


Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Management Information Systems (MIS)

Management level
Inputs: High volume transaction level data

Processing: Simple models


Outputs: Summary reports

Users: Middle managers


Example: Annual budgeting
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Management Information Systems


Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Management Information Systems (MIS) (continued)

Figure 2-5

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Management Information Systems


Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Management Information Systems (MIS) (continued)


A sample MIS report

Figure 2-6

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Management Information Systems


Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Decision-Support Systems (DSS)

Management level
Inputs: Transaction level data

Processing: Interactive
Outputs: Decision analysis Users: Professionals, staff Example: Contract cost analysis
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Management Information Systems


Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Decision-Support Systems (DSS) (Continued)


Voyage-estimating decision-support system

Figure 2-7

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Group Decision Making Systems


Very interesting field How can information technology improve how decisions are made by groups?

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Group Decision Making Systems


Applications
Where time is critical Where participants are geographically dispersed Where authority obstructs communication Military Business Government

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Group Decision Making Systems


Common characteristics
Meeting moderation/facilitation Signed and anonymous comments Structured deliberations
Presentation period Comment period Automated collation of comments Voting

Face-to-face and remote


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Management Information Systems


Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

EXECUTIVE SUPPORT SYSTEMS (ESS):

Inputs: Aggregate data


Processing: Interactive Outputs: Projections Users: Senior managers Example: 5 year operating plan
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Management Information Systems


Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Model of a Typical Executive Support System

Figure 2-8

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Management Information Systems


Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

EXECUTIVE SUPPORT SYSTEMS (ESS) (Continued)

Top Level Management Designed to the individual senior manager Ties CEO to all levels Very expensive to keep up Extensive support staff
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Management Information Systems


Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Relationship of Systems to One Another


Interrelationships among systems

Figure 2-9

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