MIS Chapter 1

 

Management Information System-MBA721

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Chapter One Introduction to Management Information System

 Informaton Sysem  Types of Informaton

Sysems  Why IT needed in mos Organizaton?  Conemporary Approach o IS  Challenges of IS  Enerprise Applicatons

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Information System(IS)

 

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Informaton: Processed daa ha have been shaped ino meaningful and useful form o human beings o make appropriae appropriae decision •

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Daa: are sreams of raw facs representng evens occurring in •

organizatons or he physical environmen and have no been processed •

Sysem: an inerrelaed se of componens ha work ogeher wihin an identable boundary o achieve a common goal/objectve •

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Informaton Sysem: a se of inerrelaed componens ha collec, process, sore, •

rerieve and disribue informaton  o suppor decision making and faciliaes an organizaton asks. 3

 

 

Information System (Cont’d) •

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IS is an arrangemen of people, daa, process, communicatons, and informaton echnology ha inerac o suppor and improve day-o-day operatons in a business as well as suppor he problem solving and decisionmaking needs of managemen and users. IS includes Hardware, Soware, Documenaton and raining maerials, Specic job role, Conrols(securiy) Conrols(securiy) and People Three actvites in an informaton sysem ( Inpu->Processing->Oupu)

 

Types of Information System(IS)( System(IS)(Reading Reading •

Transacton Processing Sysem(TPS) Assignment)) Assignment

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Knowledge Work Sysem (KWS) and Oce auomaton Sysem

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Managemen Informaton Sysem(MIS)

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Decision Suppor Sysem(DSS) Sysem(DSS)

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Exper Suppor Sysem (ESS)

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Types of Information System(cont’d)

 

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IS can also be divided based on he major business processes as:

a) Sales and Marketng Sysems: responsible for identfying cusomers, deermine wha hey need, planning and developing producs and services o mee heir needs and advertsing  hese producs and services and selling  hem. Ex: e-commerce applicatons Sysem

Descripion

Organizaton level

Order processing

Ener, process and rack orders.

Marke Analysis

Idenify cusomers & markes using Daa or demographics, markes Knowledge level consumer behavior & rends.

Pricing analysis

Deermine p prrices fo f or p prroducs &

Operatonall Level Operatona

Managemen level

services.

Sales rend forecastng

Prepare 5-year sales forecas

Sraegic level

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Types of Information System(cont’ System(cont’d) d)

b) Manufacuring andandProducton Sysem: responsible for acually producing he rm’s goods services Sysem

Descripion

Organizaton level

Machine conrol

Conrol he acion of machines & Equipmen

Operatonal Level

Compuer aided design (CAD)

Design new producs using he compuer

Knowledge level

Producton planning

Decide when and how many producs should be produced

Managemen level

Faciliies locaton

Decide

where

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locae

new producion faciliies

 Sraegic level

 

Types of Information System(cont’d) c) Finance and and Accountng Accountng Sysem: Sysem: •

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Finance is responsible for managing he rm’s nancial asses, such as cash, socks, bonds, and oher invesmens, in order o maximize he reurn on hese nancial asses Accountng is responsible for mainaining and managing he rm’s nancial records-receips, depreciaton, payroll o accoun for he ow of funds in a rm Sysem

Descripion

Organizaton level

Accoun receivable

Track Trac k money owned he firm

Operatonal Level

Por orf fol olio io An Ana aly lysi siss

Des Desig ign n he he firm firmss po por rfo foli lio o of in inv ves esm men ens s

Knowledge level

Budgetng

Prepare shor erm budges

Managemen level

Profi planning

Plan long erm profis

Sraegic level 8

 

Types of Information System(cont’d)

 

Types of Information System(cont’d)

d) Human Resource Sysem: responsible for aractng, developing, and mainaining he rm’s workforce Sysem

Descripion

Organizaton level

Training & Developmen

Track employee raining, skills & performance appraisals

Operatonal Level

Career pahing

Design career pahs for employees

Knowledge level

Co Comp mpen ensa saio ion n an anal alys ysis is

Moni Monio orr he ra rang nge e & di dis sri ribu bui ion on of emp emplo loye yee e wa wage ges, s, ssal alar ary y & Managemen level benefis.

Human Hum an resour resource ce plann planning ing

Plan Plan he long long erm erm labor labor force force nee needs ds of he organi organizat zaton. on.

Sraegic level

Levels of a Firm

 

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Organizatons have a srucure ha is composed of dieren levels Organizatons and specialtes The srucure shows division of labor

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Level of Firm(Cont’d) Senior managemen makes long-range sraegic decisions abou producs and services as well as ensures nancial performance performance of he rm. Middle managemen  carries ou managemen

he

programs and

plans

of senior

Operatonal managemen  is responsible for monioring he daily actvites of he business. Knowledge workers, such as engineers, scientss, or archiecs, design producs or services and creae new knowledge for he rm Daa workers, such as secre secrearies aries or clerks, assis communicatons a all levels of he rm

wih

scheduling and

Producton or service workers produce he produc and deliver he service Business functons(asks) - sales and marketng, manufacuring and producton, nance and accountng, and human resources

 

Why IT needed in most organization? •

Four powerful worldwide changes had alered he business environmen:

1. Emergence and Srenghening of he Global Economy To survive in he compettve world a rm need o operae globally and have a powerful Informaton and Communicaton Sysem. •

2. Transformaton Transformaton of indusrial, informaton informaton-based -based services economies and soc societes ietes informaton knowledge In developed counries, indusrial   economics are ransformed o knowledge  and informaton  based economics. IT companies lead he world IS optmizes he ow of Knowledge and informaton wihin he organizaton, help managemen maximize he rms knowledge resources and in urn enhance productviy, qualiy of service, decision making and proabiliy •

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  Why IT needed in most organization? (cont’d)

3. Transformaton of Business Enerprise new syle of business rm ransform a hierarchical, cenralized, srucured  arrangemen of specialis o a aened  (less hierarchical), decenralized , exible arrangemens of generalis ha rely on nearly •

insan informaton o deliver specic markes or cusomers 4. The Emerging Digial Firm In a digial rm nearly all of he organizaton’s signican business relatonships wih cusomers, suppliers and employees are digially enabled and mediaed •

 

 

The Emerging Digital Firm •

Four major sysem ha help o dene he digial rm Supply Chain Managemen Sysem beween a :- auomae he relatonship •

supplier and cusomer and is supplies in order o optmize he planning, sourcing, manufacuring and delivery of producs and services •

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Cusomer Relatonship Managemen sysem :- creae a coheren inegraed view of all of he relatonships a rm mainains wih is cusomers Enerprise Sysem:- Inegraed enerprises-wide informaton sysems ha coordinae key inernal processes of he rms, inegraed daa from manufacuring and disributon ,nance, sales, and human resource. Knowledge Managemen Sysem: Sysem ha suppors he creaton,

capure, sorage of knowledge in he rm and use by he rm expertse

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The Emerging Digital Firm(cont’d) From business perspectve managers use IS o improve decision making, enhance organizatonal performance and ultmaely increase rm proabiliy and sraegic positon. All informaton sysems can be described as organizatonal and managemen solutons  o challenges posed by he environmen ha will help creae value for he rm.

 

Contemporary Approach to IS •

Managemen Informaton Sysem(MIS) is a group of conneced and cooperatng sub-sysem sub-sysem o achieve one goal. •

MIS used for processing daa needed by managemen in he process of decision making when conductng is functon.

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MIS  is an organized, diverse of and auomaed informaton sysem ha is concerned wih he process gahering ,soring and ransferring relevan informaton o suppor he managemen operaton operatonss in an organizaton •

MIS provides cenral sorage of all he business informaton and is used across all levels in an organizaton. organizaton.

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Challenges of IS 1. The Sraegic Business how can business use IT o become compettve, Realizing he digial rm:Challenge •

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eectve and digially enabled? Creatng a digial rm and obaining benes benes is a long and dicul journey for mos organizaton. Despie heavy informaton echnology invesmen, organizatons are no realizing signican business value from heir sysem, nor are hey becoming digially enabled.

2. The Globalizaton Challenge •

How can rms undersand he business and sysem requiremens of global economic environmen?-dynamic

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  Challenges of IS(cont’d)

3. The Informaton Informaton Archiecure and Infras I nfrasrucure rucure Challenge •

How can organizatons develop an informaton archiecure and informaton echnology infrasrucure ha can suppor heir goals when business conditons and echnologies are changing so rapidly?

4. The Informaton Sysem Invesmen Challenge •

How can organizaton deermine he business value of informaton sysem?

5. The Responsibiliy and Conrol Challenge •

How can organizatons ensure ha heir informaton sysems are used in as ehically and socially and responsible manner?-securiy and privacy

 

 

IT Infrastructure and IS Architecture

Fig 1.1. IT Infrasrucure and IS Archiecure  

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Enterprise Application

 Enerprise sysems - inegraes he key business processes of an entre rm ino a single soware sysem ha allows informaton o ow hroughou he

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organizaton focus primarily on he inernal business processes and suppor all managemen levels bu may include ransactons wih cusomers and vendors

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address he problem of organizatonal inecienci ineciencies es creaed by isolaed islands

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of informaton sysems, business pr processes ocesses and echnology informaton n for coordinatng he Provide managers wih more precise and tmely informato daily operatons of he business.