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INFORMATION

SYSTEMS IN
BUSINESS TODAY
CHAPTER 1
Management Information Systems
CHAPTER 1: INFORMATIO N IN BUSINESS SYSTEMS TODAY

Learning Objectives

Understanding the effects of information


systems on business and their relationship to
globalization.

Explain why information systems are so essential


in business today.

Define an information system and describe its


management, organization, and technology
components.

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Management Information Systems
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Learning Objectives (cont.)

Describe the different academic disciplines used


to study information systems and explain how
each contributes to our understanding of them.

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Management Information Systems
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The Role of Information Systems in Business Today

Wireless communications, including computers and mobile


hand-held computing devices, are keeping managers,
employees, customers, suppliers, and business partners
connected in every way possible.

Email, online conferencing, the Web, and the Internet, are


providing new and diverse lines of communication for all
businesses, large and small.

Information systems are the foundation of fast-paced supply


chains. The Internet allows many businesses to buy, sell,
advertise, and solicit customer feedback online.

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Management Information Systems
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Six reasons why information systems are so important


for business today include:

New products, Customer and


Operational
services, and supplier
excellence
business models intimacy

Improved Competitive
Survival
decision making advantage

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Management Information Systems
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What is Information System and how does it works?

Information System (IS) is a group of components that


interact to produce information.
Components of Computer System
1. Hardware
2. Software
3. Data
4. Procedures
5. People

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Management Information Systems
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• Information technology drives development


of new information systems.
• Information technology (IT)
1. Products
2. Methods
3. Inventions
4. Standards
 IT components = Hardware + Software +
Data
 IS = IT + Procedures + People

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Management Information Systems
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FUNCTION OF INFORMATION SYSTEM

A major functional area of business equally as important to


business success as the functions of accounting, finance
operation management, marketing, and human resource
management.

An Important contributor to operational efficiency, employee


productivity and morale, and customer service and satisfaction.

Recognized source to value to the firm.

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Management Information Systems
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FUNCTION OF INFORMATION SYSTEM

A major source of information and support needed to promote


effective decision making by managers and business
professionals.

Vital ingredients in developing competitive products and


services that give an organization a strategic advantage in the
global marketplace.

A key component of the resources, infrastructure, and


capabilities of today’s networked business enterprises.

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Management Information Systems
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PERSPECTIVES ON INFORMATION SYSTEMS

An information system contains information


about an organization and its surrounding
environment. Three basic activities—input,
processing, and output—produce the information
organizations need.

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Management Information Systems
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• PERSPECTIVES ON INFORMATION SYSTEMS

Input: Captures raw data from organization or


external environment

Processing: Converts raw data into meaningful form

Output: Transfers processed information to people or


activities that use it

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Three Components of IS

12 © Prentice Hall 2011


Management Information Systems
CHAPTER 1: INFORMATIO N IN BUSINESS SYSTEMS TODAY

Three Components of IS

1. Organizations (Organizational Dimension


of Information System)

- This refers to hierarchy of authority


and responsibility.

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Management Information Systems
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Three Components of IS

2. Management Dimension of Information


Systems
- This dimension tests the capability of
Managers on how they will respond to business
challenges and assist them in the development of
new product and services.
- Involves such issues as leadership,
strategy, and management behaviour

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Management Information Systems
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Three Components of IS

3. Technology Dimension of Information


System
- Information Technology is the heart of
information System. It’s the technology that
enables system and the organizations and
managers who use technology.
- This refers to computer hardware and software.

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Management Information Systems
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CONTEMPORARY APPROACHES TO INFORMATION


SYSTEMS

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Management Information Systems
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• WHAT IS MANAGEMENT INFORMATION SYSTEM?

Combines computer science, management


science, operations research and practical
orientation with behavioral issues.

MIS is the development and use of Information


Systems that helps business achieve their goals
and objectives

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Management Information Systems
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What Is Your Role in IS Security?

• Security system ultimately depends on


behavior of users.
• If security procedures are not followed,
then hardware, software, and data
components of security system are a wasted
expense.

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STRONG PASSWORDS

• Ten or more characters


• Does not contain your user name, real
name, or company name
• Does not contain a complete dictionary
word in any language

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STRONG PASSWORDS

• Different from previous passwords used


• Contains both upper- and lowercase
letters, numbers, and special characters
(˜ ! @; # $ % ^; &; * ( ) _ +; – =; { } | [ ] \ :
“ ; ’ <; >;? , . /)

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Password Etiquette

• Never write down your password, do


not share it with others
• Never ask someone for their
password
• Never give your password to
someone

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Management Information Systems

THANK YOU

22 © Prentice Hall 2011