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Copyright 2006, The McGraw-Hill Companies, Inc. All rights reserved.

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Management Information System


MIS is short for management information system
or management information services.
Management information system, or MIS, broadly refers to a
computer-based system that provides managers with the tools
to organize, evaluate and to manage departments within an
organization, efficiently.
In order to provide past, present and prediction information, a
management information system can include software that
helps in decision making, data resources such as databases,
the hardware resources of a system, decision support systems,
people management and project management applications,
and any computerized processes that enable the department to
run efficiently.
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Foundations of
Information Systems
in Business

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Why Study Information Systems?


Information technology can help all kinds
of businesses improve the efficiency and
effectiveness of their business processes,
managerial decision making, and
workgroup collaboration, thus
strengthening their competitive positions
in a rapidly changing marketplace.

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Why Study Information Systems


Internet-based systems have become a
necessary ingredient for business
success in todays dynamic global
environment.
Information technologies are playing an
expanding role in business.

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What is an Information System?


Any organized combination of people,
hardware, software, communications
networks, and data resources that stores,
retrieves, transforms, and disseminates
information in an organization.

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Information Systems vs.


Information Technology
Information Systems (IS) all
components and resources necessary to
deliver information and information
processing functions to the organization
Information Technology (IT) various
hardware components necessary for the
system to operate
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Types of Information Technologies


Computer Hardware Technologies
including microcomputers, midsize servers, and large
mainframe systems, and the input, output, and storage
devices that support them

Computer Software Technologies


including operating system software, Web browsers,
software productivity suites, and software for business
applications like customer relationship management and
supply chain management

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Types of Information Technologies


Telecommunications Network
Technologies
including the telecommunications media, processors,
and software needed to provide wire-based and wireless
access and support for the Internet and private Internetbased networks

Data Resource Management


Technologies
including database management system software for
the development, access, and maintenance of the
databases of an organization
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Roles of IS in Business

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Types of Information Systems

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Operation Support Systems


Definition:
Information systems that process data
generated by and used in business
operations
Goal is to efficiently process business
transactions, control industrial processes,
support enterprise communications and
collaboration, and update corporate
databases
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Examples of Operations Support Systems


Transaction Processing Systems (TPS)
process data resulting from business
transactions, update operational databases, and
produce business documents.
Process Control Systems (PCS) monitor and
control industrial processes.
Enterprise Collaboration Systems support
team, workgroup, and enterprise
communications an collaboration.
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A Transaction Processing System Example

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Management Support Systems


Definition:
Information systems that focus on
providing information and support for
effective decision making by managers

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Management Support Systems


Management Information Systems (MIS)
provide information in the form of pre-specified
reports and displays to support business decision
making.
Decision Support Systems (DSS) provide
interactive ad hoc support for the decision making
processes of managers and other business
professionals.
Executive Information Systems (EIS) provide
critical information from MIS, DSS, and other
sources tailored to the information needs of
executives.
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Other Information Systems


Expert Systems - provide expert advice
Example: credit application advisor
Knowledge Management Systems - support creation,
organization, and dissemination of business knowledge
throughout company
Example: intranet access to best business practices
Strategic Information Systems helps to get a
strategic advantage over customer
Example: shipment tracking, e-commerce Web
systems
Functional Business Systems - focus on operational
and managerial applications of basic business functions
Example: accounting, finance, or marketing
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Measures of Success
Efficiency
Minimize costs
Minimize time
Minimize the use of information resources

Effectiveness

Support an organizations business strategies


Enable its business processes
Enhance its organizational structure and culture
Increase the customer business value of the
enterprise

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Developing IS Solutions

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Purpose Of IS
A major functional area of business
equally as important to business success
as the functions of accounting, finance,
operations management, marketing, and
human resource management.
An important purpose of IS is to provide
operational efficiency, employee
productivity and morale, and customer
service and satisfaction.
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Purpose Of IS
A major source of information and support
needed to promote effective decision
making by managers and business
professionals.
A vital ingredient in developing
competitive products and services that
give an organization a strategic
advantage in global marketplace.
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Purpose Of IS
A dynamic, rewarding, and challenging
career opportunity for millions of men and
women.
A key component of the resources,
infrastructure, and capabilities of todays
networked business enterprise.

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Historical Perspective

Information Systems
have been around a long
time.
People have always
been the backbone of an
IS

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Historical Perspective

Previous to computers,
telephones were probably the
biggest innovation that
improved information systems.
Previous to telephones, Paper
was the big innovation.
What will be the next big
thing?
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Historical Perspective
Year

1970
Programming in
COBOL (completely
absolute business
oriented language)

Activity

Mainframe
computers were
used
Computers and data
were centralized
Systems were tied to
a few business
functions: payroll,
inventory, billing

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Historical Perspective
Year

1980
PC support, basic
networking

Activity

Main focus was to automate


existing processes
PCs and LANs are installed
Departments set up own
computer systems
End-user computing with
Word Processors and
Spreadsheets makes
departments less dependent
on the IT department

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Historical Perspective
Year

1990
Network support,
systems integration,
database
administration

Activity

Main focus is automating


existing processes
Wide Area Networks (WANs)
become corporate standards
Senior management looks
for system integration and
data integration. No more
stand-alone systems

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Historical Perspective
Year

2000
Network support,
systems integration

Activity

Main focus is central control


and corporate learning
Wide Area Networks expand
via the Internet to include
global enterprises and
business partners supply
chain and distribution
Senior management looks for
data sharing across systems

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Historical Perspective
Year

Current situation after


2000
Network support,
systems integration
Team work

Activity

Main focus is efficiencies and


speed in inventory,
manufacturing, distribution,
Transaction processing
system, Decision support
system etc.

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What is a System?
Definition:
A group of interrelated components, with
a clearly defined boundary, working
together toward a common goal by
accepting inputs and producing outputs in
an organized transformation process.

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System Components
Input capturing and assembling
elements that enter the system to be
processed
Processing transformation steps that
convert input into output
Output transferring elements that have
been produced by a transformation
process to their ultimate destination
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Information System Resources


People end users and IS specialists
Hardware physical devices and
materials used in information processing
including computer systems, peripherals,
and media
Software sets of information processing
instructions including system software,
application software and procedures
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Information Systems Resources (cont)


Data facts or observations about
physical phenomena or business
transactions
Network communications media and
network infrastructure

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Data vs. Information


Data raw facts or observations typically
about physical phenomena or business
transactions
Information data that have been
converted into a meaningful and useful
context for specific end users

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Network Resources
Communications Media examples
include twisted-pair wire, coaxial and
fiber-optic cables, microwave, cellular,
and satellite wireless technologies
Network Infrastructure examples include
communications processors such as
modems and internetwork processors,
and communications control software
such as network operating systems and
Internet browser packages.
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Information Systems Activities

Input of Data Resources


Processing of Data into Information
Output of Information Products
Storage of Data Resources
Control of System Performance

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Recognizing Information Systems


Fundamental Components of IS
People, hardware, software, data and
network resources used
Types of information products produced
Input, processing, output, storage and
control activities performed
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Summary
Information systems are a major source of
information and support needed to
promote effective decision making by
managers and business professionals.
Information systems can be categorized
based on their intended purpose.

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Summary
Managing and using information systems
can pose several challenges including the
development process and ethical
responsibilities.

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Discussion Question

How information system


can be used for
E-commerce.

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