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Management Information Systems Global Business and Information Systems Chapter 1&2 Lecturer: Dr Richard Boateng Email: [email protected] Feb 3 rd 2010

Global Business and Information Systems - VIVA University · PDF fileGlobal Business and Information Systems Chapter 1&2 Lecturer: Dr Richard Boateng ... Functions in Organizations

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Management Information Systems

Global Business andInformation Systems

Chapter 1&2Lecturer: Dr Richard Boateng

Email: [email protected]

Feb 3rd 2010

Management Information Systems

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Visit Nike IDVisit Nike ID –– www.nikeid.comwww.nikeid.comcreate your own shoecreate your own shoe

Management Information Systems

Management Information Systems

What is an information system?What is an information system?What is an information system?What is an information system?

Management Information Systems

An information system (IS) is an arrangement of people,data, processes, and information technology that interact tocollect, process, store, and provide as output the informationneeded to support an organization.

Information technology is a contemporary term thatdescribes the combination of computer technology (hardwareand software) with telecommunications technology (data,image, and voice networks).

An information system (IS) is an arrangement of people,data, processes, and information technology that interact tocollect, process, store, and provide as output the informationneeded to support an organization.

Information technology is a contemporary term thatdescribes the combination of computer technology (hardwareand software) with telecommunications technology (data,image, and voice networks).

Management Information Systems

Figure 1 An Integrated View of Information and Communication Technologies

HRIS

Source: Adapted from Duncome and Heeks (2001)

Management Information Systems

Information Architecture and Information Technology Infrastructure

Management Information Systems

Data: Streams of raw facts representing eventssuch as business transactions

Information: Clusters of facts that are meaningfuland useful to human beings in the processes suchas making decisions

Data: Streams of raw facts representing eventssuch as business transactions

Information: Clusters of facts that are meaningfuland useful to human beings in the processes suchas making decisions

Management Information Systems

What Is an Information System?

Data and Information

Management Information Systems

INPUT OUTPUTPROCESS

Activities in an Information System

INPUT OUTPUTPROCESS

FEEDBACK

Management Information Systems

Functions of an Information System

Figure 1-3

Management Information SystemsMore Qu

1. What are the major types of systems in a business?What role do they play?

2. How do information systems support the majorbusiness functions: sales and marketing,manufacturing and production, finance andaccounting, and human resources?

1. What are the major types of systems in a business?What role do they play?

2. How do information systems support the majorbusiness functions: sales and marketing,manufacturing and production, finance andaccounting, and human resources?

Management Information Systems

Six Types of Information Systems

3. Management InformationSystems (MIS)

2. Decision SupportSystems (DSS)

1. Executive SupportSystem (ESS)

Strategic-LevelPlan and Project,

Forecast- Senior Managers

Management-Level

Decision Analysis;Summary Reports- Staff Managers &Middle Managers

6. Transaction ProcessSystems (TPS)

5. Office Systems (OS)

3. Management InformationSystems (MIS)

4. Knowledge WorkSystems (OS)

Decision Analysis;Summary Reports- Staff Managers &Middle Managers

Knowledge-Level

Models; Graphics;Documents & Mail

-Professionals &Clerical Workers

Operational-LevelSorting; lists; Detailed

Reports; Pay Slips- Operations

Personnel; Supervisors

Management Information Systems

Systems that Span the Business

SAP ERP:

Human Resource Systems - Leave RequestExample

Executive Support Systems – Sales Planningand Forecasting

http://www.sap.com/solutions/business-suite/erp/demos/index.epx

SAP ERP:

Human Resource Systems - Leave RequestExample

Executive Support Systems – Sales Planningand Forecasting

http://www.sap.com/solutions/business-suite/erp/demos/index.epx

Management Information Systems

A transaction processing system (TPS) is an informationsystem that captures and processes data about businesstransactions.

A management information system (MIS) is aninformation system that provides for management-orientedreporting based on transaction processing and operations ofthe organization.

A decision support system (DSS) is an information systemthat either helps to identify decision making opportunities orprovides information to help make decisions.

A transaction processing system (TPS) is an informationsystem that captures and processes data about businesstransactions.

A management information system (MIS) is aninformation system that provides for management-orientedreporting based on transaction processing and operations ofthe organization.

A decision support system (DSS) is an information systemthat either helps to identify decision making opportunities orprovides information to help make decisions.

Management Information Systems

An expert system is an information system that capturesthe expertise of workers and then simulates that expertise tothe benefit of nonexperts.

A communications and collaboration system is aninformation system that enables more effectivecommunications between workers, partners, customers, andsuppliers to enhance their ability to collaborate.

An office automation system is an information system thatsupports the wide range of business office activities thatprovide for improved work flow between workers.

An expert system is an information system that capturesthe expertise of workers and then simulates that expertise tothe benefit of nonexperts.

A communications and collaboration system is aninformation system that enables more effectivecommunications between workers, partners, customers, andsuppliers to enhance their ability to collaborate.

An office automation system is an information system thatsupports the wide range of business office activities thatprovide for improved work flow between workers.

Management Information Systems

So what is the DIGITAL FIRM?So what is the DIGITAL FIRM?So what is the DIGITAL FIRM?So what is the DIGITAL FIRM?

Management Information Systems

A firm which uses information systems toA firm which uses information systems tobecome networked and decentralized and tobecome networked and decentralized and todigitalize their business processes and fosterdigitalize their business processes and fosterinnovation and creativity.innovation and creativity.

A firm which uses information systems toA firm which uses information systems tobecome networked and decentralized and tobecome networked and decentralized and todigitalize their business processes and fosterdigitalize their business processes and fosterinnovation and creativity.innovation and creativity.

Management Information Systems

The Internet:The Internet:Reducing Boundaries and CompetingReducing Boundaries and Competingon Informationon Information

The Internet:The Internet:Reducing Boundaries and CompetingReducing Boundaries and Competingon Informationon Information

Management Information Systems

International network of networks

Universal technology platform: Any computer cancommunicate with any other computer

World Wide Web and Websites

The Internet

International network of networks

Universal technology platform: Any computer cancommunicate with any other computer

World Wide Web and Websites

Management Information Systems

4 Major Systems Defining the Digital Firm Supply chain management systems Customer relationship management systems Enterprise systems Knowledge management systems

The Competitive Business Environment and the Emerging Digital Firm

4 Major Systems Defining the Digital Firm Supply chain management systems Customer relationship management systems Enterprise systems Knowledge management systems

Management Information Systems

Video Sessions I-800 Flowers (http://www.1800flowers.com)

for video: http://news.zdnet.com/2422-12794_22-334892.html

Blue Nile(http://www.bluenile.com)

for video: http://news.zdnet.com/2422-12794_22-334950.html

Video Sessions I-800 Flowers (http://www.1800flowers.com)

for video: http://news.zdnet.com/2422-12794_22-334892.html

Blue Nile(http://www.bluenile.com)

for video: http://news.zdnet.com/2422-12794_22-334950.html

Management Information Systems

I-800 Flowers A network of 9000 florists Mobile (device) service Call Centre Blogs

User Experience- 75 % Customers from Web- Visual Experience- Portray the beauty of products- Easy Experience, comfortable- Efficient

TOWARD THE DIGITAL FIRM

•• Blue NileBlue Nile•• 60,000 jewelry60,000 jewelry•• 33--4 days delivery times4 days delivery times•• Unique products need uniqueUnique products need unique

technologytechnology

User ExperienceUser Experience-- Understand GenderUnderstand Gender

PreferencesPreferences- Women do the selection Men

do the buying-- Competitive PriceCompetitive Price –– nono

middlemen/commissionsmiddlemen/commissions-- Availability: 24/7Availability: 24/7

I-800 Flowers A network of 9000 florists Mobile (device) service Call Centre Blogs

User Experience- 75 % Customers from Web- Visual Experience- Portray the beauty of products- Easy Experience, comfortable- Efficient

•• Blue NileBlue Nile•• 60,000 jewelry60,000 jewelry•• 33--4 days delivery times4 days delivery times•• Unique products need uniqueUnique products need unique

technologytechnology

User ExperienceUser Experience-- Understand GenderUnderstand Gender

PreferencesPreferences- Women do the selection Men

do the buying-- Competitive PriceCompetitive Price –– nono

middlemen/commissionsmiddlemen/commissions-- Availability: 24/7Availability: 24/7

Management Information Systems

Role of Information Systems

Enabling

Processes andFunctions in

Organizations

Supporting

Processes andFunctions in

Organizations

The websites of thesecompanies support the saleof electronic products which

are primarily done in theshops

The websites of these companies enablethe sale of products. These companies

primarily do not have anyshops/showrooms for consumers or may

fail to operate efficiently withouttheir websites.

Management Information Systems

Electronic Commerce: Sharing business information,managing business relationships and facilitating transactions withInternet technology. (linking buyers and sellers).

Electronic Business: Executing all the firm’s businessprocesses with Internet technology. (sales, finance, humanresources, manufacturing)

Intranet: Business builds private, secure network based onInternet technology

Extranet: Extension of intranet to authorized external users

Electronic Commerce: Sharing business information,managing business relationships and facilitating transactions withInternet technology. (linking buyers and sellers).

Electronic Business: Executing all the firm’s businessprocesses with Internet technology. (sales, finance, humanresources, manufacturing)

Intranet: Business builds private, secure network based onInternet technology

Extranet: Extension of intranet to authorized external users

Management Information Systems

Transformation of the Business Enterprise

Flattening Decentralization Flexibility Location independence Low transaction and coordination costs Empowerment Collaborative work and teamwork

Transformation of the Business Enterprise

Flattening Decentralization Flexibility Location independence Low transaction and coordination costs Empowerment Collaborative work and teamwork

Management Information Systems

Business Perspective of Information Systems

ORGANIZATIONORGANIZATION TECHNOLOGYTECHNOLOGY

INFORMATIONINFORMATION

SYSTEMSSYSTEMS

People

Structure

Procedures

Politics

Culture

Hardware

Software

Storage

MANAGEMENTMANAGEMENT

INFORMATIONINFORMATION

SYSTEMSSYSTEMS

People

Structure

Procedures

Politics

Culture

Hardware

Software

Storage

Senior, middle, operational

Management Information Systems

Key Elements:

People: Managers, knowledge workers, dataworkers, production or service workers

Structure: Organization chart , groups of specialists,products, geography

Organizations

Key Elements:

People: Managers, knowledge workers, dataworkers, production or service workers

Structure: Organization chart , groups of specialists,products, geography

Management Information Systems

Operating procedures: Standard operating procedures(SOP, rules for action)

Politics: Power to persuade, get things done

Culture: Customs of behavior

Organizations

Operating procedures: Standard operating procedures(SOP, rules for action)

Politics: Power to persuade, get things done

Culture: Customs of behavior

Management Information Systems

Levels: Senior managers: make long-range strategic decisions

about products and services

Middle managers: Carry out the programs and plans ofsenior management

Operational managers: monitor the firm’s daily activities

ManagementLevels: Senior managers: make long-range strategic decisions

about products and services

Middle managers: Carry out the programs and plans ofsenior management

Operational managers: monitor the firm’s daily activities

Management Information Systems

Tools managers use to cope with change

Hardware: Physical equipment

Software: Detailed preprogrammed instructions

Storage: Physical media forstoring data and the software

Computer TechnologyTools managers use to cope with change

Hardware: Physical equipment

Software: Detailed preprogrammed instructions

Storage: Physical media forstoring data and the software

Management Information Systems

So what is the DIGITAL FIRM?So what is the DIGITAL FIRM?So what is the DIGITAL FIRM?So what is the DIGITAL FIRM?

Management Information Systems

A firm which uses information systems to becomeA firm which uses information systems to becomenetworked and decentralized and to digitalize theirbusiness processes and foster innovation andand foster innovation andcreativity.creativity.

A firm which uses information systems to becomeA firm which uses information systems to becomenetworked and decentralized and to digitalize theirbusiness processes and foster innovation andand foster innovation andcreativity.creativity.

Management Information SystemsHow Digital is your firm?

Highly networkeddecentralization

LowDigitalization

Less networkcentralization

HighDigitalization

Management Information Systems

Visit Nike IDVisit Nike ID –– www.nikeid.comwww.nikeid.comcreate your own shoecreate your own shoe

Visit Nike IDVisit Nike ID –– www.nikeid.comwww.nikeid.comcreate your own shoecreate your own shoe

Management Information Systems

Management Information Systems

Further Examples of the MajorTypes of Systems inOrganizations

Further Examples of the MajorTypes of Systems inOrganizations

Management Information Systems

Four powerful worldwide changes that have altered thebusiness environment:

1. Emergence of the Global Economy2. Transformation of Industrial Economies3. Transformation of the Business Enterprise4. The Emerging Digital Firm

Four powerful worldwide changes that have altered thebusiness environment:

1. Emergence of the Global Economy2. Transformation of Industrial Economies3. Transformation of the Business Enterprise4. The Emerging Digital Firm

Management Information SystemsMajor Types of Systems in Organizations

Typical Applications of Transaction Processing Systems (TPS)

Management Information SystemsMajor Types of Systems in Organizations

How management information systems obtain their datafrom the organization’s TPS

Management Information SystemsMajor Types of Systems in Organizations

Transaction Processing Systems (TPS)

Basic business systems that serve the organization’soperational level

Input:Transactions, events Processing: Sorting, listing, merging, updating Output: Detailed reports, lists, summaries Users: Operations personnel, supervisors

Four Major Types of Systems

Transaction Processing Systems (TPS)

Basic business systems that serve the organization’soperational level

Input:Transactions, events Processing: Sorting, listing, merging, updating Output: Detailed reports, lists, summaries Users: Operations personnel, supervisors

Management Information SystemsEnterprise Applications

Knowledge Management Systems (KMS) Collect relevant knowledge and experience in firm to

support business processes and management decisions Manage and distribute documents and other digital

knowledge objects

Knowledge Management Systems in the Enterprise

Knowledge Management Systems (KMS) Collect relevant knowledge and experience in firm to

support business processes and management decisions Manage and distribute documents and other digital

knowledge objects

Management Information SystemsEnterprise Applications

Role of Knowledge Management Systems Acquire knowledge Store knowledge Distribute knowledge Apply knowledge

Knowledge Management Systems in the Enterprise

Role of Knowledge Management Systems Acquire knowledge Store knowledge Distribute knowledge Apply knowledge

Management Information SystemsMajor Types of Systems in Organizations

Management Information Systems (MIS)

Serve management level; provide reports and access tocompany data

Input: Summary transaction data, high-volume data, simplemodels

Processing: Routine reports, simple models, low-levelanalysis

Output: Summary and exception reports Users: Middle managers

Four Major Types of SystemsManagement Information Systems (MIS)

Serve management level; provide reports and access tocompany data

Input: Summary transaction data, high-volume data, simplemodels

Processing: Routine reports, simple models, low-levelanalysis

Output: Summary and exception reports Users: Middle managers

Management Information SystemsMajor Types of Systems in Organizations

Decision-Support Systems (DSS)

Serve management level with data analysis for makingdecisions

Input: Low-volume data or massive databases, analyticmodels, and data analysis tools

Processing: Interactive, simulations, analysis Output: Special reports, decision analyses, responses to

queries Users: Professionals, staff managers

Four Major Types of SystemsDecision-Support Systems (DSS)

Serve management level with data analysis for makingdecisions

Input: Low-volume data or massive databases, analyticmodels, and data analysis tools

Processing: Interactive, simulations, analysis Output: Special reports, decision analyses, responses to

queries Users: Professionals, staff managers

Management Information SystemsMajor Types of Systems in Organizations

Executive Support Systems (ESS)

Provide communications and computing environment thatserves the organization’s strategic level

Input: External and internal aggregate data Processing: Graphics, simulations, interactive Output: Projections, responses to queries Users: Senior Managers

Four Major Types of Systems

Executive Support Systems (ESS)

Provide communications and computing environment thatserves the organization’s strategic level

Input: External and internal aggregate data Processing: Graphics, simulations, interactive Output: Projections, responses to queries Users: Senior Managers

Management Information SystemsMajor Types of Systems in Organizations

Model of a typical executive support system

Management Information Systems

Thank You for Listening

Contact: [email protected] Website: www.pearlrichards.org

48

Thank You for Listening

Contact: [email protected] Website: www.pearlrichards.org