Chapter 1

MIS An Introduction to Information

Systems in Organizations

Eng Abdisamad
 Objectives
After completing this chapter, you will be able to:
• Describe data, information, knowledge,
characteristics of quality data.
• Identify the fundamental components of an
information system and describe their
function.
• Identify the three fundamental information
system types.
• Explain what organizational complements
must be in place to ensure successful
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Objectives cont.…
After completing this chapter, you will be able:
• Define the term “the soft side of implementing change,”
and explain why it is a critical factor in the successful
adoption of any major change.
• Identify and briefly describe five change models that can
be used to increase the likelihood of successfully
introducing a new information system into an
organization.
• Define the types of roles, functions, and careers available
in the field of information systems.
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Data, Information, and Knowledge
D i ff e r e n ti a t e t h e s e t h r e e
• Data: raw facts Three
• Information: collection of data organized in such a
way that they have value beyond the facts
themselves
• Process: set of logically related tasks performed to
achieve a defined outcome
• turning data into information is a process
• Knowledge: awareness and understanding of a set
of information and the ways it can be made useful
to support a task
• The process of defining relationships among
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data to create useful information requires
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Data, Information, and Knowledge
Ty p e s o f D a t a

Data Represented By

Alphanumeric Data Numbers, letters, and other characters

Audio Data Sounds, noises and tones

Image Data Graphic images and pictures

Video Data Moving images or pictures

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Transforming Data Into Info
Transforming data into information starts by selecting data
then organizing and finally manipulating the data.

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The Value of Information
Valuable information helps people perform tasks
more efficiently and effectively.

•Inaccurate data can result in loss of potential new

customers and reduced customer satisfaction.

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Characteristics of Quality information
Depending on the type of data you need, some characteristics
become more important than others.

Characteristics Definition
Accessible Information should be easily accessible by authorized users
Accurate It should be free from errors.
Complete It contains all the important facts.
Flexible Information can be used for a variety of purposes.
Reliable It is trusted by the users.
Information should be secure from access by unauthorized
Secure
users.
Timely Timely information when it is needed.

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What is Information System?
• An Information System is a set of interrelated elements:
• Collect (input)
• Process
• Store
• Disseminate data and information.
• Provide a feedback mechanism to meet its goals and objectives.
• A computer-based information system (CBIS) is a single set of
hardware, software, databases, networks, people and procedures.
• That a configured to collect, manipulate, store, and process data.
• An organization’s organization infrastructure includes all
hardware, software, databases, networks, people, and procedures.

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Components of a CBIS
Hardware, software, networks, people, and procedures are part of a business’s
technology infrastructure.

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Components of CBIS cont.…
• Procedure defines the steps to follow to achieve a specific end
result:
• Such as enter a customer order, pay a supplier invoice, or request a
current inventory report
• Using a CBIS involves setting and following many procedures,
including those for the.
• Operation, maintenance, and security of the system.

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Three fundamental types of IS
• Information systems can be divided into three types:
• Personal IS – includes information systems that improve the
productivity of individual users.

• Group IS –includes information systems that improve

communications and support collaboration among members of a
workgroup.

• Enterprise IS – includes information systems that organizations

use to define structured interactions among their own employees
and/or external customers, suppliers, government agencies, etc…

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IS in Organizations.
• For each type of IS, certain key organizational complements must
be in place:
• Well-trained workers
• System support
• Better teamwork
• Redesigned processes
• New decision rights

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Examples and characteristics
Depending on the type of data you need, some characteristics
become more important than others.
Personal IS Group IS Enterprise IS
Examples Personal productivity Email, instant messaging, Transaction processing
software, decision- project management system, enterprise system,
support system. software inter-organizational
systems
Benefits Improved productivity Increased collaboration Increased standards
• Ensure that employees
understand and • Demonstrate how
connect to the change. technology can be • Identify and put into
Manager’s role Encourage use used place the full set of the
• Set norms for organizational prior
• Challenge workers to •
find new use participation.

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IS in Organizations cont...
• Organization: a group of people that is structured and managed to
meet its mission or set of group goals:
• There are relationships between members of the organization and their
various activities

• Processes are defined that assign roles, responsibilities, and authority to

complete the various activities

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Value Chains
• Value chain: a series (chain) of activities that an organization performs
to transform inputs into outputs:
• The value of the input is increased.
• Supply chain: key value chain in a manufacturing organization.
• Supply chain management (SCM): encompasses all the activities
required to get the right product into the right consumer’s hands in the
right quantity at the right time and at the right cost.

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Value Chains cont.…
• Supply chain: key value chain in a manufacturing organization.

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Value Chains cont.…
• Supply chain organizations are “linked” together through both
physical flows and information flows
• Physical: supplies and raw materials
• Information: participants communicating their plans, coordinating
their work, and managing the efficient flow of goods and material.
• The information system can play an integral role in the supply
chain process:
• Providing input
• Aiding product transformation
• Producing output

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Change in the Organization
• Innovation: the application of new ideas to the products, processes,
and activities of a firm, leading to increased value.
• A catalyst for the growth and success of an organization
• Types of innovation
• Sustaining innovation: results in enhancements to existing
products, services, and ways of operating
• Enable an organization to continually increase profits, lower costs,
and gain market share
• Disruptive innovation: one that initially provides a lower level of
performance than the marketplace has grown to accept
 Improved to provide new performance characteristics

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Change in the Organization cont.
• Reengineering
• Also called process redesign and business process reengineering
(BPR)
• Involves the radical redesign of business processes, organizational
structures, information systems, and values of the organization to
achieve a breakthrough in business results
• Continuous improvement
• Constantly seeking ways to improve business processes and add
value to products and services

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Change in the Organization cont.
• Reengineering
• Involves the radical redesign of business processes, organizational
structures, information systems, and values of the organization to
achieve a breakthrough in business results

Reengineering
Business redesign

Changes to Changes to
organizational organizational value
structure

Changes to information
system
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 Thank You.
MIS
Management Information
system