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Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved.

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Management Information System
• MIS is short for management information system
or management information services.
• Management information system, or MIS, broadly refers to a
computer-based system that provides managers with the tools
to organize, evaluate and to manage departments within an
organization, efficiently.
• In order to provide past, present and prediction information, a
management information system can include software that
helps in decision making, data resources such as databases,
the hardware resources of a system, decision support systems,
people management and project management applications,
and any computerized processes that enable the department to
run efficiently.
Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved.

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Foundations of
Information Systems
in Business

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Why Study Information Systems?
• Information technology can help all kinds
of businesses improve the efficiency and
effectiveness of their business processes,
managerial decision making, and
workgroup collaboration, thus
strengthening their competitive positions
in a rapidly changing marketplace.

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Inc. Copyright © 2006.Why Study Information Systems • Internet-based systems have become a necessary ingredient for business success in today’s dynamic global environment. • Information technologies are playing an expanding role in business. 1-5 . The McGraw-Hill Companies. All rights reserved.

Inc. transforms. 1-6 . communications networks. hardware. retrieves.What is an Information System? Any organized combination of people. Copyright © 2006. and data resources that stores. The McGraw-Hill Companies. and disseminates information in an organization. All rights reserved. software.

All rights reserved. Inc. Information Technology • 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 Copyright © 2006. 1-7 . The McGraw-Hill Companies.Information Systems vs.

and large mainframe systems. Inc. midsize servers. and storage devices that support them • Computer Software Technologies including operating system software. and software for business applications like customer relationship management and supply chain management Copyright © 2006. All rights reserved. output. 1-8 . Web browsers. The McGraw-Hill Companies.Types of Information Technologies • Computer Hardware Technologies including microcomputers. and the input. software productivity suites.

1-9 . and maintenance of the databases of an organization Copyright © 2006. The McGraw-Hill Companies. and software needed to provide wire-based and wireless access and support for the Internet and private Internetbased networks • Data Resource Management Technologies including database management system software for the development. Inc. processors. All rights reserved. access.Types of Information Technologies • Telecommunications Network Technologies including the telecommunications media.

All rights reserved. 1 . Inc.Roles of IS in Business Copyright © 2006. The McGraw-Hill Companies.10 .

11 . 1 . Inc. All rights reserved. The McGraw-Hill Companies.Types of Information Systems Copyright © 2006.

and update corporate databases Copyright © 2006. All rights reserved. Inc. support enterprise communications and collaboration.Operation Support Systems Definition: • Information systems that process data generated by and used in business operations • Goal is to efficiently process business transactions.12 . 1 . control industrial processes. The McGraw-Hill Companies.

13 . update operational databases.Examples of Operations Support Systems • Transaction Processing Systems (TPS) – process data resulting from business transactions. and enterprise communications an collaboration. The McGraw-Hill Companies. workgroup. • Process Control Systems (PCS) – monitor and control industrial processes. 1 . All rights reserved. Inc. and produce business documents. Copyright © 2006. • Enterprise Collaboration Systems – support team.

1 . All rights reserved. The McGraw-Hill Companies. Inc.A Transaction Processing System Example Copyright © 2006.14 .

The McGraw-Hill Companies.15 . Inc. All rights reserved. 1 .Management Support Systems Definition: • Information systems that focus on providing information and support for effective decision making by managers Copyright © 2006.

1 . All rights reserved. Copyright © 2006. • Decision Support Systems (DSS) – provide interactive ad hoc support for the decision making processes of managers and other business professionals. and other sources tailored to the information needs of executives. • Executive Information Systems (EIS) – provide critical information from MIS.Management Support Systems • Management Information Systems (MIS) – provide information in the form of pre-specified reports and displays to support business decision making. The McGraw-Hill Companies. DSS.16 . Inc.

All rights reserved.provide expert advice • Example: credit application advisor • Knowledge Management Systems . or marketing Copyright © 2006. Inc.focus on operational and managerial applications of basic business functions • Example: accounting.Other Information Systems • Expert Systems . 1 . and dissemination of business knowledge throughout company • Example: intranet access to best business practices • Strategic Information Systems – helps to get a strategic advantage over customer • Example: shipment tracking. organization.support creation. finance. e-commerce Web systems • Functional Business Systems .17 . The McGraw-Hill Companies.

Measures of Success • Efficiency • Minimize costs • Minimize time • Minimize the use of information resources • Effectiveness • • • • Support an organization’s business strategies Enable its business processes Enhance its organizational structure and culture Increase the customer business value of the enterprise Copyright © 2006.18 . 1 . The McGraw-Hill Companies. All rights reserved. Inc.

1 .Developing IS Solutions Copyright © 2006.19 . The McGraw-Hill Companies. All rights reserved. Inc.

and human resource management. All rights reserved. marketing. 1 .Purpose Of IS • A major functional area of business equally as important to business success as the functions of accounting. operations management. • An important purpose of IS is to provide operational efficiency.20 . finance. Copyright © 2006. and customer service and satisfaction. The McGraw-Hill Companies. employee productivity and morale. Inc.

• A vital ingredient in developing competitive products and services that give an organization a strategic advantage in global marketplace. Copyright © 2006.Purpose Of IS • A major source of information and support needed to promote effective decision making by managers and business professionals. The McGraw-Hill Companies. 1 .21 . All rights reserved. Inc.

Inc.Purpose Of IS • A dynamic. All rights reserved. The McGraw-Hill Companies. and challenging career opportunity for millions of men and women. rewarding.22 . infrastructure. and capabilities of today’s networked business enterprise. 1 . • A key component of the resources. Copyright © 2006.

Inc.Historical Perspective • Information Systems have been around a long time. All rights reserved. 1 . • People have always been the backbone of an IS Copyright © 2006.23 . The McGraw-Hill Companies.

Inc. Paper was the big innovation. The McGraw-Hill Companies. • Previous to telephones. 1 . telephones were probably the biggest innovation that improved information systems. • What will be the next big thing? Copyright © 2006. All rights reserved.Historical Perspective • Previous to computers.24 .

Inc. billing Copyright © 2006.Historical Perspective Year • 1970 • Programming in COBOL (completely absolute business oriented language) Activity • Mainframe computers were used • Computers and data were centralized • Systems were tied to a few business functions: payroll. inventory.25 . The McGraw-Hill Companies. 1 . All rights reserved.

1 .Historical Perspective Year • 1980 • PC support. All rights reserved. Inc. basic networking Activity • Main focus was to automate existing processes • PCs and LANs are installed • Departments set up own computer systems • End-user computing with Word Processors and Spreadsheets makes departments less dependent on the IT department Copyright © 2006.26 . The McGraw-Hill Companies.

systems integration. Inc. The McGraw-Hill Companies. 1 . All rights reserved.27 . database administration Activity • Main focus is automating existing processes • Wide Area Networks (WANs) become corporate standards • Senior management looks for system integration and data integration.Historical Perspective Year • 1990 • Network support. No more stand-alone systems Copyright © 2006.

Inc.28 . All rights reserved. The McGraw-Hill Companies.Historical Perspective Year • 2000 • Network support. 1 . systems integration Activity • Main focus is central control and corporate learning • Wide Area Networks expand via the Internet to include global enterprises and business partners – supply chain and distribution • Senior management looks for data sharing across systems Copyright © 2006.

The McGraw-Hill Companies. 1 .29 . systems integration • Team work Activity • Main focus is efficiencies and speed in inventory. Copyright © 2006.Historical Perspective Year • Current situation after 2000 • Network support. All rights reserved. Transaction processing system. Decision support system etc. distribution. manufacturing. Inc.

with a clearly defined boundary. working together toward a common goal by accepting inputs and producing outputs in an organized transformation process. All rights reserved.30 . Inc. 1 . Copyright © 2006.What is a System? Definition: A group of interrelated components. The McGraw-Hill Companies.

All rights reserved. The McGraw-Hill Companies.System Components • Input – capturing and assembling elements that enter the system to be processed • Processing – transformation steps that convert input into output • Output – transferring elements that have been produced by a transformation process to their ultimate destination Copyright © 2006.31 . Inc. 1 .

Inc.Information System Resources • People – end users and IS specialists • Hardware – physical devices and materials used in information processing including computer systems. application software and procedures Copyright © 2006. 1 .32 . and media • Software – sets of information processing instructions including system software. All rights reserved. The McGraw-Hill Companies. peripherals.

1 .33 . All rights reserved. Inc.Information Systems Resources (con’t) • Data – facts or observations about physical phenomena or business transactions • Network – communications media and network infrastructure Copyright © 2006. The McGraw-Hill Companies.

1 . 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 Copyright © 2006. The McGraw-Hill Companies.Data vs. All rights reserved. Inc.34 .

coaxial and fiber-optic cables. and satellite wireless technologies • Network Infrastructure – examples include communications processors such as modems and internetwork processors. 1 .Network Resources • Communications Media – examples include twisted-pair wire. and communications control software such as network operating systems and Internet browser packages. microwave.35 . All rights reserved. Inc. The McGraw-Hill Companies. Copyright © 2006. cellular.

Information Systems Activities • • • • • Input of Data Resources Processing of Data into Information Output of Information Products Storage of Data Resources Control of System Performance Copyright © 2006. 1 .36 . Inc. The McGraw-Hill Companies. All rights reserved.

output.Recognizing Information Systems Fundamental Components of IS • People. Inc.37 . software. hardware. 1 . processing. The McGraw-Hill Companies. storage and control activities performed Copyright © 2006. data and network resources used • Types of information products produced • Input. All rights reserved.

38 . • Information systems can be categorized based on their intended purpose. The McGraw-Hill Companies. 1 . Inc. Copyright © 2006. All rights reserved.Summary • Information systems are a major source of information and support needed to promote effective decision making by managers and business professionals.

Summary • Managing and using information systems can pose several challenges including the development process and ethical responsibilities. The McGraw-Hill Companies. 1 . All rights reserved. Inc.39 . Copyright © 2006.

The McGraw-Hill Companies.Discussion Question • How information system can be used for E-commerce. Copyright © 2006. Inc. All rights reserved.40 . 1 .