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CHAPTER 1
CORE CONCEPTS IN INFORMATION SYSTEMS
What is MIS? An information system designed by an
organization to collect collect, manipulate, and disseminate data or information on a program
Includes hardware, software, people, communications systems, and data
Allows managers to plan, monitor, and evaluate operations and performance of an activity
Designed and used for administrative purposes
Role of MIS in business
Roles:- support of business operations- support of managerial decision
making- support of strategic competitive
advantage ‘In an organization, information is
the blood and MIS is the heart’.
I
Organization:- business process- people- data- strategy
ISITIT
Subsystems and supersystems of IS
Information Technology
Information Systems
BusinessEnvironment
Computer Based Information Systems : 4 Phases
Key:Operate - Cost to run & maintain site for 1 year.Build - Cost to design, build & implement
$
Automate Cross-Functional Transactions
Integrate/Transform(BPR)
Customer and SupplierRelationship Impact
Cost
Ben
efi
t
Automate Functional TransactionsOperateINR 10 K
BuildINR 50 K
Operate50 K
Build200 K
Operate100 K
Build500 K
Operate150 K
Build1500 K
Automate Accounting
Costs, complexity anduncertainty increase assites gain sophistication
over time
3-12 months
Net returnAccounting and Transactional Planning and Coordinational
IN
REAL
TIME
AT
VERY
LOW
COST
Information can be created in multimedia
Information can be stored
Information can be retrieved
Information can be shared
Information can be distributed
Information can be processed
Information can be transmitted
Progress in MIS
Managers make all the Software tools Decision making is decisions part of everyone’s job
Businesses must choose Telecommunication Centralization and between centralization and networks decentralizationdecentralization possible
Only experts can perform Expert Systems Generalists can act as complex jobs experts.
Information can appear Shared databases Information appears only at one place simultaneously
Old Business Rule Technology intervention New Business Rule
Enabling Role of Information Technology
Plans get revised On line computing Plans get revisedperiodically instantly
Enabling Role of Information Technology
Personal contacts Internet / email Effective contacts
Field persons need offices Wireless/internet/laptops Field offices can bevirtual
Old Business Rule Technology intervention New Business Rule
Find out the information Enterprise software Information comes to you
* Reference : Reengineering the corporation by Michael Hammer & James Champy, 1993-94
Impact of MIS and IT on an Organization
- enables enterprise-wide shared and integrated databases through :
i. improved decision makingii. improved MIS reporting
- enables enterprise-wide cross functional work flow automation through :
i. improving Intra-organizational transactionsii. reducing in business processes lead timesiii. improved inventory and working capital managementiv. improved financial reconciliation
•As transactional Information Systems:
• Improves business process performance through:
- automation of business processes
- simplification of business processes
- elimination of non value adding business processes
- reengineering of business processes
Impact of MIS on an organization
Work Flow: Purchase Process
Supply Chain Processing
OutboundDelivery
OutboundShipment
Goods Receipt Processing
MaterialRequest
PurchaseOrder
PurchaseRequest
GoodsReceipt
Material Issue
Requisition of a valve
Material Receipt
- improved coordination among sales, production stores, purchase, and accounts due to close loop systems and online data- dynamic scheduling of production and purchase- based on feedback from sales and visa versa
• MIS as a coordination and planning information system results in:
Impact of MIS on an organization
Sales Order Processing
Fin. Accounting
Hist./Stats.
Sales Quotatio
ns
SalesContracts
EDI
Manually
Order entry
Invoicing
Outbound Advice
Delivery
Close Order
Order AcknowledgmentPicking Lists
Dispatch ListDispatch NotesConsignment Notes
Invoice
Margin ControlCustomer Monitoring
Inventory CheckAdditional Costs
InstallmentsSales Order/
Quotation Existence
Margin ControlCustomer Monitoring
Inventory CheckAdditional Costs
InstallmentsSales Order/
Quotation Existence
Sales Order
Sales Statistics
Display codes
Period Codes
Layout Codes
Sales Budget
SET UP STATISTICS
budgetsalesdifferencefrom/till
group 1group 2
group 1budgetsales
col.1 diff.
group 2budgetsales
col.2
Sorting CodesParameters
•To be competitive today you need:- the flexibility to take on new business opportunities as
they arise- a business framework that lets you
i. optimize business processesii. cut costs ii. improve customer serviceiv. shorten your time to market
- comprehensive decision support tools to provide up-to-date information on revenues, budget performance, sales, and cash-flow
•E-business can help provide the competitive edge you need
The competitive edge
Telecommunication
Information Technology
Business E-Business
E-Business
What is E-Business?
• E-business is a new way of conducting, managing, and executing business transactions using IT and telecommunications networks (Internet and Extranet)• E-business is remaking the business world by:
- redefining virtually every business process and function- changing conventional concepts and rules about strategic alliances, outsourcing, competition, industry specialization, and
customer relationships- creating a wealth of information about customers, enabling
businesses to anticipate and satisfy individual needs with pinpoint precision
- blurring the lines between industries- challenging every business to reinvent itself
· It provides companies with new, more cost and time-efficient means for working with customers, suppliers, and development partners