CHAPTER 1

INFORMATION AGE
By Diana
 Objectives
• At the end of this chapter, students will be able
to:
– Explain the definition of Management Information
System
– Mark out the challenges that occur in Management
Information System
– Identify what are the characteristics of business
– List the roles of Information System in business
– Describe the roles of information as business
resources.
– Detect the roles of knowledge workers in Business.
 Introduction
• Information Age
– A time when knowledge is power
– knowledge can helps in gaining a competitive
advantage.
– management information system must be
established.
 What Is Management
Information System ?
• is an activity of planning, managing,
developing and using information technology
equipment to help people performing tasks
that are relevant to management information
system process
• Three types of resource in MIS are:
– Information
– Information Technology
– People
 Management Information
System
• Information
– A processed data that is sorted, useful and valuable
for particular use.
• Eg. In the form of understandable manner - report
• Information Technology
– Equipment used to produce information.
• Eg. Hardware and software
• People
– A person who is responsible to manage or use
information system to analyze data, report or
produce information
• Eg. IT and non-IT staff
 The Challenges
• There are three major challenges :
– Understanding Business Roles
• Business  A transaction of providing services
and/or selling products to customers
• Services or products to be sold must meet the
customer’s need and requirements.
 The Challenges
– Identifying When The Customer’s Need
Should Be Full-Filled
• Services provided have to be based on:
– Time  Able to determine the WHEN customer
needs service
– Place (Location)  Able to determine WHERE
customer needs service
– Types  Able to determine WHAT kind of service the
customer needs
– Delivery  Able to make sure that the service is
delivered / provided to customer according to the
Time, Place and Type.
 The Challenges
• Roles of Information Technology in
Business
– Assisting in the information process
– Assisting in the decision-making task
– Assisting shared information through
decentralized computing
– Supporting Innovation
 Assisting in the information
process
• Capturing information
– Input – Mouse, keyboard
• Conveying information
– Output – Screen, Printer
• Creating information
– Memory – CPU, RAM
• Cradling information
– Storage - Cakera keras, CD-ROM
• Communicating information
– Telecommunication – Modem, Satellite
Assisting in Decision Making
• Online Transaction Processing (OLTP)
– Gathering input information
– Processing that information
– Updating existing information
• Eg. Online shopping, online banking
• Online Analytical Processing (OLAP)
– Performing simple queries on database
– Employing sophisticated artificial intelligence
tools to solve a complex or take advantage of an
opportunity.
• Eg. Robotics in manufacturing
 Assisting Shared Information
Through Decentralized
Computing
• Shared Information
– An environment in which an organisation’s information
is organized in one central location, allowing anyone
to access and use it as they need to.
• Eg. Clients and server
• Decentralized Computing
– An environment where the power of computing is
being divided to many locations, but all the
organisation’s information is kept in one database.
• Eg. Every clients can act as a server
 Supporting Innovation
• Innovation
– Bring in new ideas and bring changes.
– Information technology helps organisations to
make changes in their business operation.
CHARACTERISTICS OF TODAY’S
BUSINESS
• Globalization
– To market the products internationally
• Information As An Important Resource In
The Organisation
– Knowledge is important in business
• Electronic Commerce (E-Commerce)
– an online business
CHARACTERISTICS OF TODAY’S
BUSINESS
 Knowledge Worker Computing
- The usage of technology, software,
information and technological knowledge by a
knowledge worker.
 ROLES OF INFORMATION AS
BUSINESS RESOURCES
• Information
– A processed data
– valuable information are fulfilled by:
• Time dimension of Information (when)
– Timely
– Current
• Content dimension of Information
– Accurate
– Completeness
– Relevance
• Form of Information
 Types of Information
• It Must Contain The Required Criteria
– Must contain the specific types
• The Presentation Of Information
– In any form – graphical or non-graphical
form
 ROLES OF KNOWLEDGE
WORKERS
• Knowledge workers
– People who work and produce information as a
product
– workers who are able to:
• Define information
• Understand information
• Take action according to the information
– Responsibilities and roles:
• Define The Required Information
• Able To Know Where And How To Obtain Information
• Understand The Obtained Information
• Act According To The Obtained Information
• Use Information Ethically
 Summary
• The definition of Management Information
System
• The challenges that occur in Management
Information System
• The characteristics of business
• The roles of Information System in business
• The roles of information as business resources.
• The roles of knowledge workers in Business.