Management Information Systems

Chapter 1 – Part 3

Information Systems in Global

Business Today

Spring 2021 - 2022

 2.1 What is an Information System

• Three activities of information systems

produce information organizations need
• 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
 2.1 What is an Information System

• Feedback:
• Output is returned to appropriate members of
organization to help evaluate or correct input stage.

• Computer/programs Vs. Information system

• Computers and software are technical foundation and
tools, similar to the material and tools used to build a
house.
• Information systems (IS) is a more global term than
Information Technology (IT), so we can say that IT is a
part of the IS in an organization
 2.1 What is an Information System

An information system
contains information about an
organization and its
surrounding environment.
Three basic activities—input,
processing, and output—
produce the information
organizations need. Feedback
is output returned to
appropriate people or activities
in the organization to evaluate
and refine the input.
Environmental actors, such as
customers, suppliers,
competitors, stockholders, and
regulatory agencies, interact
with the organization and its
information systems.

Functions of an Information
System
 2.2 Dimensions of Information Systems

Using information systems

effectively requires an
understanding of the
organization, management,
and information technology
shaping the systems. An
information system creates
value for the firm as an
organizational and
management solution to
challenges posed by the
environment.

Information Systems Are More

Than Computers
 2.2 Dimensions of Information Systems

 Organizations
• Information systems are an integral part of organizations.
For some companies there would be no business without
the system

• The key element of an organization are its people, structure,

business processes, politics and culture

• Organizations have a structure of many levels and

specialties: Senior management, middle management,
operational management, knowledge workers, and data
workers
 2.2 Dimensions of Information Systems

 Organizations
•Experts are employed for different
business functions. The major functions
include: manufacturing & production,
marketing & sales, finance, and HR

•An organization coordinates work

through its hierarchy and through its
business processes
2.2 Dimensions of Information Systems

 Management
• Management’s job is to make sense out of many
situations faced by organizations, make decisions, and
solve organizational problems

• Managers perceive business challenges, set the right

strategies to face these challenges, and allocate human
and financial resources

• Throughout managers must exercise some kind of

responsible leadership
2.2 Dimensions of Information Systems

 Management
• But managers must do more than manage what
already exists. They must create new products and
services, and even sometimes recreate the whole
business

• A substantial part of management responsibility is

creative work driven and supported by knowledge and
information

• IT can play a major role in helping managers perform

their responsibilities better and more efficiently
2.2 Dimensions of Information Systems

 Information Technology
• IT is one of many tools that managers use to better
cope and deal with changes in the business. It is
considered as the backbone of any system

• The information technology infrastructure includes the

following components:

• Hardware: the physical equipment used for input,

processing, and output activities of the system. It
includes the computers and mobile handled devices

• Software: the pre-programmed instructions (programs

and apps) to operate the computer hardware
2.2 Dimensions of Information Systems

 Information Technology
• Data management technology: consists of the software
governing the organization of the company’s data on
physical storage media
• Networking & telecom: consists of both physical
devices and software to link various parts and
members of the organization

• Internet: The Internet is a global universal network

acting a s a platform on which to build new products,
services, and business models

• World wide web: a service provided by the Internet for

sorting, retrieving, formatting and displaying