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MSIT/MIT 510

Information Technology
in Management

Dr. Rommel L. Verecio


Faculty, Graduate Studies Dept.
Head, IT & Computer Education
CP#0917-633-6402 or Office Tel. No. (053) 321-3744
E-mail: brixverecio@yahoo.com, rlverecio@lnu.edu.ph
FB Account: Brix Oicerev
House Rules
Course Syllabus
PART 1 Essential Concepts
1.1 Introduction to Information System
1.2 Information Systems for Competitive Advantage
1.3 Using Information Technology to Engage
Electronic Commerce
1.4 System Users and Developers

PART 2 Information Resources


2.1 Computing and Communication Resources
2.2 Database Management System
2.3 Systems Development
2.4 Information in Action
PART 3 Information System in
Business and Management
3.1 Transaction Processing and Information Reporting
System
3.2 Managerial Decision Making and Decision Support
System
3.3 Artificial Intelligence and Expert System
3.4 End User and Office Information System
3.5 Business Function Information System
PART 4 Managing Information and
Technology
4.1 Information Security
4.2 Ethical, Privacy, and Security Issues
4.2 Ethical Implications of Information Technology

PART 5 The Management of


Information System
5.1 Managing Information System Resources
5.2 Planning and Implementing Information System
5.3 Controlling Information System
PART 6 Information Technology
Management
6.1 Managers: Key to Information Technology Results
6.2 Strategic Planning
6.3 Project Management
6.4 Business Process and IT Outsourcing
6.5 Corporate Governance and IT
6.6 Collaboration Tools and Wireless Networks
6.7 E-Business
6.8 Enterprise Resource Planning
6.9 Business Intelligence
6.10 Knowledge Management
6.11 Enterprise Architecture
Course Requirements
 Class Participations
 Individual Reports/Module
 Written Examinations: Midterms & Finals
 2020 Tech Trends in Business (Reaction Paper)
 IT Success Stories (Digest/Capsule)
 Reaction Paper
 Case Analysis
 MIS/ITM Assessment (SWOT Analysis & 3yr
Strategic Plan;Office/Company/etc. connected)
 Compulsory Attendance to Seminar-Workshop
 Company Visit (MIS/ITM Best Practices)
References
Management Information System 9th ed. or 10th
ed. (Raymond McLeod, Jr and George P. Schell)

Management Information System: A Managerial


End User Perspective (James A. O’Brien)

InformationTechnology Management 10th ed.


(George W. Reynolds)
Chapter 1
Introduction to the Computer-Based
Information System
1-9
Information Management

Information:
The most valuable resource
1-10
The Characteristics of Good Info.
 Accurate
 Complete
 Economical
 Flexible
 Reliable
 Relevant
 Simple
 Timely
 Verifiable
1-11
MIS Sub-Components
 System
– Emphasizing a fair degree of
integration and holistic view
 Information
– Stressing on processed data in the
context in which it is used by end
users.
 Management
– Focusing on the ultimate use of such
information systems for managerial
decision making.
1-12
Management Information System

Acomputer based system


that provides managers
with the tools for
organizing, evaluating and
efficiently running their
departments.
1-13
Five Main Resources

 Personnel
 Material
 Machines


}
– (including facilities and energy)

Money
Physical

 Information (and data) } Conceptual

1-14
How Resources are Managed

 Acquire
 Assemble, or
prepare
 Maximize use
 Replace

1-15
Factors Stimulating Interest in
Information Management
 Increasing complexity of business activity
– International economy
– Worldwide competition
– Increasing complexity of technology
– Shrinking time frames
– Social constraints
 Improved computer capabilities
– Size
– Speed

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Who are the Users?

 Managers
 Nonmanagers
 Persons & organizations in the
firm’s environment

1-17
The Influence of Management
Level on Information Source

Strategic planning level Environmental

Management control level

Operational control level Internal

1-18
The Influence of Management
Level on Information Form

Strategic planning level Summary

Management control level

Operational control level Detail

1-19
Managers Can Be Found on All
Levels and in All Functional
Areas of the Firm
Strategic planning level

Management Control Level

Operational Control
Level

Finance Human Information Manufacturing Marketing


Function Resources Services Function Function
Function Function
1-20
What Managers do --
Fayol’s Functions
Strategic Management Operational
Planning Level Control Level Control Level

Plan Organize Direct


Direct Plan Control
Control
Staff Staff Staff
Control Organize
Organize Direct Plan

1-21
What Managers do --
Mintzberg’s Roles
 Interpersonal
roles
– Figurehead  Decisional roles
– Leader – Entrepreneur
– Liaison – Disturbance
 Informational handler
roles – Resource allocator
– Monitor – Negotiator
– Disseminator
– Spokesperson 1-22
Management Skills


Communications
}
Problem solving
How can an
information
specialist help?

1-23
Computer Reports
Noncomputer reports

Letters & Memos

Electronic mail
Periodicals Written Media
Internal Sources

Scheduled Meetings

Problem Solving
Unscheduled Meetings

Telephone

Voice Mail
Comes in Many Forms

Oral Media

Tours

Business Meals
External Sources
Problem Solving Information

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Management Knowledge

 Computer literacy

 Information literacy

 What’s the
difference?

1-25
System Components
parts of a system that can control its
own operations
Objectives

Control
mechanism

Input Transformation Output

1-26
Open-Loop System

Input Transformation Output

1-27
Open versus Closed Systems

 Open system
– Connected to its environment by
means of resource flows

 Closed system
– Not connected to its environment

1-28
Systems
Can Be Composed of Subsystems or Elemental Parts
System

Subsystem A Subsystem B Elemental


Part C

Subsystem A-1 Subsystem B-1

Subsystem A-2 Subsystem B-2

Elemental
Subsystem A-3
part B1 1-29
Physical and Conceptual Systems
 Physical system
– The business firm
– Composed of physical resources
 Conceptual system
– Represents a physical system
– Uses conceptual resources
 Information
 Data

1-30
A Systems View

 Business operations are embedded within


a larger environmental setting
– Reduces complexity
– Requires good objectives
– Emphasizes working together
– Acknowledges interconnections
– Values feedback

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Data and Information
 Information processor
– Key element in the conceptual system
– Computer
– Noncomputer
– Combination
 Data is the raw material transformed into
information

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Evolution of the CBIS
 Data Processing (DP)
 Management Information Systems
(MIS) 1964
– IBM promoted the concept as a means of
selling disk files and terminals
 Decision Support Systems (DSS) 1971
– Text book’s distinction:
 MIS: Organizational/group - general
 DSS: Individual - specific
 Office Automation (OA) 1964
 Artificial Intelligence (AI)/ Expert
Systems (ES) - 1990s
– Heavy investment by businesses 1-33
The CBIS Model
Computer-based
Information System
(CBIS)

Problem Accounting
Information System

Information Management
Decisions Information System

Decision Support
Systems

Problem
The Virtual
Solution Office

Knowledge-based
Systems 1-34
Information Services

Information specialists have


full-time responsibility for
developing and maintaining
computer-based systems

1-35
Traditional Communication Chain
Database
Administrator

Systems Operator
User Analyst
Programmer Computer

Network
Specialist

1-36
End-User Computing (EUC)
 End-user computing
– Development of all or part of applications
– Information specialists act as consultants
 Stimulants to EUC
– Increased computer literacy
– IS backlog
– Low-cost hardware (the PC)
– Prewritten software (electronic spreadsheets)

1-37
IS and EUC
The End-User Computing Communication
Chain

Information
Specialists

Support

Communication
User Computer
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Justifying the CBIS
 Justify in the same manner as any
other large investment
 Economic
– Cost reduction
– Reduced inventory investment
– Increased productivity (CAD/CAM)
 Noneconomic
– Perceived value

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Achieving the CBIS

1-40
Reengineering the CBIS
 Business Process Reengineering
(BPR)
– Reworking systems
– Good system features retained
– Becoming development methodology of
choice

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Roles Played by the Manager
and by the Information Specialist
Phase Manager Information Specialist

Planning Define problem Support

Analysis Control System Study

Design Control Design system

Implementation Control Implement system

Use Control Make available

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Summary
 Information is one of five main resources
 Computer output used by managers and
nonmanagers
 A system is an integration of elements
working toward an objective
– Physical
– Conceptual
 Data vs. Information

1-43
Summary [cont.]
 CBIS composed of various components
– AIS
– MIS
– DSS
– Virtual office
– Knowledge-based systems
 End-user computing trends
 CBIS development

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