SYS 344: Management Information Systems
5/3/12 by: A. Darwish Click to edit Master subtitle style Session I: Introduction
Agenda
Introduction Course Description Educational Aims Assessment Details Logistics Data, Information, Knowledge System Components
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Introduction
Students Lecturer Instructional Materials:
Laudon, Kenneth C. & Jane P. Laudon. Management Information Systems 10th ed. New Jersey: Prentice Hall.
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Overall Aims
Illustrate the strategic competitive advantages of Management Information Systems; Explain creatively the relationship between different information systems; Design business solutions with information technology; and Understand different security and 5/3/12 ethical challenges caused by
Course Outline
Module Topic Introduction Date Monday 18th July No. of Hours 2 No. of Lectures 1
1- Information Systems Tuesday 19th July in Global Business Wednesday 20th July Today
Introduction
2- Global E-Business: How Businesses Use Information Systems
Thursday 21st July Monday 25th July
3. IS Organization and Strategy
Tuesday 26th July
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Course Outline (contd)
Module Topic Date No. of Hours No. of Lectures
5- H/W, S/W and Telecommunication and Wednesday 27th July Networks Quiz IT 6- Foundations of Business Intelligence: Monday 1st August Databases and Tuesday 2nd August Information Management Thursday 28th July
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Course Outline (contd)
Module Topic 13- Building systems 14- Project Management Building Systems 8- Securing Information systems Quiz 15- Managing Global Systems 10- E-Commerce: Digital
Markets, Digital Goods
Date Wednesday 3rd August Thursday 4th August Monday 8th August Tuesday 9th August Wednesday 10th August Thursday 11th August Monday 15th August Tuesday 16th August Wednesday 17th August
No. of Hours 4 4 2 1 2 2 2
No. of Lectures 2 2 1 1 1 1 1
Applications
Revision
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Assessment Details
Mid-Term
Pre-Mid
45%
10% 30% 5% Exam
term Quiz
Mid-term
Participation
and Attendance
Final
Pre-Final Final
55%
Quiz 10% 40% and Attendance
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Exam
Participation
5%
Logistics
Lecture
Room: Mon, Thu
227
Tue, Wed (11:30 -13:30)
(9:00 11:00)
Office Hours: Tue (9:00 11:00), room 321 REQUIREMENTS FOR FINAL EXAM
Minimum
75% attendance to class; of all assignments at a certain
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Submission
Session I
Introduction
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Data, Information, and Knowledge
Data
Raw
facts
Information
Collection
of facts organized in such a way that they have value beyond the facts themselves and understanding of a set of information
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Knowledge
Awareness
The Value of Information
If an organizations information is not accurate or complete
People
can make poor decisions, costing thousands, or even millions, of dollars characteristics become more valuable than others
Depending on the type of data you need
Some
Directly linked to how it helps decision makers achieve their organizations goals 5/3/12
System Concepts
System
Set
of elements or components that interact to accomplish goals
Components of a system
Inputs Processing Outputs Feedback
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mechanisms
System Concepts (contd)
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System Performance and Standards
Efficiency
Measure
of what is produced divided by what is consumed to which a system attains its goals objective of the system
Effectiveness
Extent
System performance standard
Specific
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System Performance and Standards (contd)
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System Performance and Standards (contd)
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What is an Information System?
Information system (IS) is a set of interrelated elements that
Collect
(input), manipulate (process), store, and disseminate (output) data and information, and provide a corrective reaction (feedback mechanism) to meet an objective
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Input, Processing, Output, Feedback
Input
Activity
data
of gathering and capturing raw
Processing
Converting
data into useful outputs
Output
Production
of useful information, usually in the form of documents and reports from the system that is used to
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Feedback
Information
Computer-Based Information Systems
Single set of hardware, software, databases, telecommunications, people, and procedures
That
are configured to collect, manipulate, store, and process data into information and the disseminate it.
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Computer-Based Information Systems (contd)
Hardware
Consists
of computer equipment used to perform input, processing, and output activities of the computer programs that govern the operation of the computer collection of facts and information, typically consisting of two or 5/3/12 more related data files
Software
Consists
Database
Organized
Computer-Based Information Systems (contd)
Telecommunications, networks, and the Internet
The
electronic transmission of signals for communications computers and equipment to enable electronic communication largest computer network, consisting of thousands of interconnected 5/3/12
Networks
Connect
Internet
Worlds
Computer-Based Information Systems (contd)
People
Can
be the most important element in most computer-based information systems strategies, policies, methods, and rules for using the CBIS
Procedures
Include
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Chapter 1 Information Systems in Global Business Today
Management Information Systems
NBA Teams Make a Slam Dunk with Information Technology
Problem: Lack of hard data usable in decision-making processes, costly and competitive market. Solutions: Developed a new system designed to collect and organize data using video clips of games. Synergy Sports Technology tags video of each game with hundreds of descriptive categories and allows coaches and players to stream game footage from the Web. Demonstrates ITs role in innovation and improving business processes. Illustrates how the Web has allowed businesses to use new tools to analyze critical data.
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Chapter 1 Information Systems in Global Business Today
Management Information Systems
The Role of Information Systems in Business Today
How information systems are transforming business
Increase in wireless technology use, Web sites Shifts in media and advertising New federal security and accounting laws Internet has drastically reduced costs of operating on global scale Presents both challenges and opportunities
Globalization opportunities
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Chapter 1 Information Systems in Global Business Today
Management Information Systems
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Information Technology Capital Investment
Information technology investment, defined as hardware, software, and communications equipment, grew from 32% to 51% between 1980 and 2008.
Source: Based on data in U.S. Department of Commerce, Bureau of Economic Analysis, National Income and Product Accounts, 2008.
Figure 1-1
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Chapter 1 Information Systems in Global Business Today
Management Information Systems
The Role of Information Systems in Business Today
In the emerging, fully digital firm
Significant business relationships are digitally enabled and mediated Core business processes are accomplished through digital networks Key corporate assets are managed digitally
Digital firms offer greater flexibility in organization and management
Time shifting, space shifting
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Chapter 1 Information Systems in Global Business Today
Management Information Systems
The Role of Information Systems in Business Today
Growing interdependence between ability to use information technology and ability to implement corporate strategies and achieve corporate goals Business firms invest heavily in information systems to achieve six strategic business objectives:
Operational excellence New products, services, and business models Customer and supplier intimacy Improved decision making Competitive advantage Survival
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Chapter 1 Information Systems in Global Business Today
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Operational excellence:
Improvement of efficiency to attain higher profitability Information systems, technology an important tool in achieving greater efficiency and productivity Wal-Marts RetailLink system links suppliers to stores for superior replenishment system
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Chapter 1 Information Systems in Global Business Today
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New products, services, and business models:
Business model: describes how company produces, delivers, and sells product or service to create wealth Information systems and technology a major enabling tool for new products, services, business models
Examples: Apples iPod, iTunes, and iPhone, Netflixs Internet-based DVD rentals
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Management Information Systems
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Customer and supplier intimacy:
Serving customers well leads to customers returning, which raises revenues and profits
Example: High-end hotels that use computers to track customer preferences and use to monitor and customize environment
Intimacy with suppliers allows them to provide vital inputs, which lowers costs
Example: J.C.Penneys information system which links sales records to contract manufacturer
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Chapter 1 Information Systems in Global Business Today
Management Information Systems
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Improved decision making
Without accurate information:
Managers must use forecasts, best guesses, luck Leads to:
Overproduction, underproduction of goods and services Misallocation of resources Poor response times
Poor outcomes raise costs, lose customers
Example: Verizons Web-based digital dashboard to provide managers with real-time data on customer complaints, network performance, line outages, etc.
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Chapter 1 Information Systems in Global Business Today
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The Role of Information Systems in Business Today
Operational excellence:
Improvement of efficiency to attain higher profitability Enabled by technology Serving customers raises revenues and profits Better communication with suppliers lowers costs More accurate data leads to better decisions
New products, services, and business models:
Customer and supplier intimacy:
Improved decision making
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Management Information Systems
The Role of Information Systems in Business Today
Competitive advantage
Delivering better performance Charging less for superior products Responding to customers and suppliers in real time Example: Toyota and TPS (Toyota Production System) enjoy a considerable advantage over competitors information systems are critical to the implementation of TPS
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Survival
Information technologies as necessity of business May be:
Industry-level changes, e.g. Citibanks introduction of ATMs Governmental regulations requiring record-keeping
Examples: Toxic Substances Control Act, SarbanesOxley Act
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Chapter 1 Information Systems in Global Business Today
Management Information Systems
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The Interdependence Between Organizations and Information Technology
In contemporary systems there is a growing interdependence between a firms information systems and its business capabilities. Changes in strategy, rules, and business processes increasingly require changes in hardware, software, databases, and telecommunications. Often, what the organization would like to do depends on what its systems will permit it to do.
Figure 1-2
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Chapter 1 Information Systems in Global Business Today
Management Information Systems
Perspectives on Information Systems
Information system:
Set of interrelated components Collect, process, store, and distribute information Support decision making, coordination, and control Data are streams of raw facts Information is data shaped into meaningful form
Information vs. data
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Data and Information
Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory.
Figure 1-3
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Chapter 1 Information Systems in Global Business Today
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Perspectives on Information Systems
Information system: Three activities 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
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Perspectives on Information Systems
Feedback:
Output returned to appropriate members of organization to help evaluate or correct input stage
Computer/Computer program vs. information system
Computers and software are technical foundation and tools, similar to the material and tools used to build a house
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Chapter 1 Information Systems in Global Business Today
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Perspectives on Information Systems
Functions of an Information System
An information system contains information about an organization and its surrounding environment. Three basic activitiesinput, processing, and outputproduce 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.
Figure 1-4
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Information Systems Are More Than Computers
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.
Figure 1-5
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Chapter 1 Information Systems in Global Business Today
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Perspectives on Information Systems
Organizational dimension of information systems
Hierarchy of authority, responsibility
Senior management Middle management Operational management Knowledge workers Data workers Production or service workers
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Levels in a Firm
Business organizations are hierarchies consisting of three principal levels: senior management, middle management, and operational management. Information systems serve each of these levels. Scientists and knowledge workers often work with middle management.
Figure 1-6
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Perspectives on Information Systems
Organizational dimension of information systems (cont.)
Separation of business functions
Sales and marketing Human resources Finance and accounting Manufacturing and production
Unique business processes Unique business culture Organizational politics
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Perspectives on Information Systems
Management dimension of information systems
Managers set organizational strategy for responding to business challenges In addition, managers must act creatively:
Creation of new products and services Occasionally re-creating the organization
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Perspectives on Information Systems
Technology dimension of information systems
Computer hardware and software Data management technology Networking and telecommunications technology
Networks, the Internet, intranets and extranets, World Wide Web
IT infrastructure: provides platform that system is built on
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Perspectives on Information Systems
Business perspective on information systems:
Information system is instrument for creating value Investments in information technology will result in superior returns:
Productivity increases Revenue increases Superior long-term strategic positioning
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Business information value chain
Raw data acquired and transformed through stages that add value to that information Value of information system determined in part by extent to which it leads to better decisions, greater efficiency, and higher profits
Business perspective: Calls attention to organizational and managerial nature of information systems
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The Business Information Value Chain
From a business perspective, information systems are part of a series of value-adding activities for acquiring, transforming, and distributing information that managers can use to improve decision making, enhance organizational performance, and, ultimately, increase firm profitability.
Figure 1-7
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Variation in Returns on Information Technology Investment
Although, on average, investments in information technology produce returns far above those returned by other investments, there is considerable variation across firms.
Figure 1-8
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Perspectives on Information Systems
Investing in information technology does not guarantee good returns Considerable variation in the returns firms receive from systems investments Factors:
Adopting the right business model Investing in complementary assets (organizational and management capital)
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Perspectives on Information Systems
Complementary assets:
Assets required to derive value from a primary investment Firms supporting technology investments with investment in complementary assets receive superior returns E.g.: invest in technology and the people to make it work properly
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Chapter 1 Information Systems in Global Business Today
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Perspectives on Information Systems
Complementary assets include:
Organizational investments, e.g.
Appropriate business model Efficient business processes Incentives for management innovation Teamwork and collaborative work environments The Internet and telecommunications infrastructure Technology standards
Managerial investments, e.g.
Social investments, e.g.
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