MIS Chapter 01

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Chapter No 1 Batch 2010

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Compiled By: Muzammil Ahmad Khan and Kashif Shaikh

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HS-107 : Management Information Systems

Course Objectives:

Upon successful completion of this course, the

student will be able to:

Understand the role of Information Systems (IS)

in organizations.

Understand how Information Systems (IS) can be

used to create competitive advantages for

businesses.


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Course Objectives:

Understand the key elements associated with

designing Information Systems (IS).

Understand the key elements associated with

planning and managing Information Systems

(IS).

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Prerequisites:

Familiarity with basic computer devices and

terminologies.


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MIS Books

Text Book

1. Management Information System, 8th Edition

By: James A. O' Brien , George Marakas

Reference Books

1. Management Information System, 9th Edition

By: Kenneth C. Laudon, Jane P. Laudon

2. Introduction to Information Systems: Supporting andTransforming Business

By: Rainer, Turban, Potter, 1st Edition

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Marks Distribution

Mid Term ________ 15

Assignment + Class Performance +

Quiz + Presentation + Report ________ 5

Semester Final Paper ________ 80

Total Marks ________ 100


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Marks Distribution [ Sessional ]

Class Test ______________ 10 Points Assignment ______________ 10 Points

Class Presentation ______________ 15 Points

Project ______________ 15 Points

Total Points ______________ 50 Points

Performance Bonus ______________ 10 Points

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MIS Website

http://www.ssuet.edu.pk/courses/hs107/mis

http://taimoor/hs107/mis


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Course Instructors

Muhammad Kashif Shaikh [email protected]

Assistant Professor, CED

Room No: BS-04

Section A, D, F (Computer, Batch 2010)

Muzammil Ahmad Khan [email protected]

Assistant Professor, CED

Room No: BS-04Section B, C, E (Computer, Batch 2010)

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Project

Comprehensive study of Information Systems of an Organization.

Organization Overview

Organizational Hierarchy

Main business function of the organization

Analysis of IT Department

Role/Activities

Resources

Illustration of Computer based Information System System Development Life Cycle

Analysis of other business System

Sales, Marketing, Supply Chain, Accounts, HR

How IT interact with other business system?

DFD of main business function and IS

Gantt chart and PERT chart

Identification of problems/weaknesses in the existing system

Suggestions and Recommendations

Conclusion


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Course Outline

Module 1: Introduction Chapter 1: Foundations of IS in Business Chapter 2: Competing with Information Technology

Module 2: Hard and Soft Aspect Chapter 3: Computer Hardware Chapter 4: Computer Software Chapter 5: Data Resource Management Chapter 6: Telecommunications and Networks

Module 3: E-Business Chapter 7: Electronic Business Systems Chapter 10: Decision Support Systems

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Module 4: IT in Business Chapter 11: Developing Business/IT Strategies

Chapter 12: Developing Business/IT Solutions

Module 5: Special Topics

Data Flow Diagram PERT and GANTT Chart


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Foundations of

Information Systems in

Business

Chapter

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&

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1. Understand the concept of a system and how itrelates to information systems

2. Explain why knowledge of informationsystems is important for business professionals Identify five areas of information systems

knowledge needed3. Give examples to illustrate how business

applications of information systems cansupport a firms Business processes Managerial decision making Strategies for competitive advantage

Learning Objectives


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4. Provide examples of information systems fromyour experiences with business organizationsin the real world

5. Identify challenges that a business managermight face in managing the successful, ethicaldevelopment and use of informationtechnology

6. Provide examples of the components

of real world information systems7. Become familiar with the myriad of career

opportunities in information systems

Learning Objectives

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Foundation Concepts

Why study information systems and information

technology? Vital component of successful businesses

Helps businesses expand and compete

Improves efficiency and effectiveness of

business processes Facilitates managerial decision making and

workgroup collaboration


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What is a System?

A set of interrelated components With a clearly defined boundary

Working together

To achieve a common set of objectives

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What is an Information System?

An organized combination of People

Hardware and software

Communication networks

Data resources

Policies and procedures

This system Stores, retrieves, transforms, and disseminates

information in an organization


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Information Technologies

Information Systems All the components and resources necessary to

deliver information and functions to the

organization

Could be paper based

Information Technologies Hardware, software, networking, data

management

Our focus will be on computer-basedinformation systems (CBIS)

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What Should Business Professionals Know?


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Fundamental Roles of IS in Business

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Trends in Information Systems


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What is E-Business?

Using Internet technologies to empower Business processes

Electronic commerce

Collaboration within a company

Collaboration with customers, suppliers, and

other business stakeholders

In essence, an online exchange of value

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How E-Business is Being Used


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E-Business Use

Reengineering Internal business processes

Enterprise collaboration systems Support communications, coordination and

coordination among teams and work groups

Electronic commerce Buying, selling, marketing, and servicing of

products and services over networks

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Types of Information Systems

Operations Support Systems

Efficiently process business transactions

Control industrial processes

Support communication and collaboration

Update corporate databases

Management Support Systems

Provide information as reports and displays

Give direct computer support to managers during

decision-making


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Purposes of Information Systems

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Operations Support Systems

What do they do? Efficiently process business transactions

Control industrial processes

Support communications and collaboration

Update corporate databases


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Types of Operations Support Systems

Transaction Processing Systems Record and process business transactions

Examples: sales processing, inventory systems,

accounting systems

Process Control Systems

Monitor and control physical processes

Example: using sensors to monitor chemical

processes in a petroleum refinery

Enterprise Collaboration Systems Enhance team and workgroup communication

Examples: email, video conferencing

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Two Ways to Process Transactions

Batch Processing

Accumulate transactions over time and process

periodically

Example: a bank processes all checks received in

a batch at night

Online Processing

Process transactions immediately

Example: a bank processes an ATM withdrawal

immediately


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Management Support Systems

What do they do? Provide information and support for effective

decision making by managers Management information systems

Decision support systems

Executive information systems

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Types of Management Support Systems

Management Information Systems (MIS)

Reports and displays

Example: daily sales analysis reports

Decision Support Systems (DSS)

Interactive and ad hoc support Example: a what-if analysis to determine where

to spend advertising dollars

Executive Information Systems (EIS)

Critical information for executives and managers

Example: easy access to actions of competitors


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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

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Other Information Systems

Strategic Information Systems Help get a strategic advantage over customer

Examples: shipment tracking, e-commerce Web

systems

Functional Business Systems Focus on operational and managerial applications

of basic business functions

Examples: accounting, finance, or marketing


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IT Challenges and Opportunities

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Measuring IT Success

Efficiency Minimize cost, time, and use of information

resources

Effectiveness

Support business strategies Enable business processes

Enhance organizational structure and culture

Increase customer and business value


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Developing IS Solutions

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Challenges and Ethics of IT

Application of IT Customer relationship management

Human resources management

Business intelligence systems

Potential Harm Infringements on privacy

Inaccurate information

Collusion


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Challenges and Ethics of IT

Potential Risks Consumer boycotts

Work stoppages

Government intervention

Possible Responses Codes of ethics

Incentives

Certification

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Ethical Responsibilities

What uses of IT might be considered improper

or harmful to other individuals or society?

What is the proper business use of the Internet

or a companys IT resources?

How can you protect yourself from computercrime?


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IT Careers

Economic downturns have affected all jobsectors, including IT

Rising labor costs are pushing jobs to India,

the Middle East, and Asia-Pacific countries

However, IT employment opportunities are

strong, with new jobs emerging daily

Shortages of IT personnel are frequent

The long-term job outlook is positive andexciting

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IT Careers


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IT Careers

Job increases will be driven by Rapid growth in computer system design and

related services

The need to backfill positions

Information sharing and client/server

environments

The need for those with problem-solving skills

Falling hardware and software prices, which will

fuel expanded computerization of operations

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The IS Function

The IS function is

A major functional area of business

An important contributor to operational

efficiency, employee productivity, morale,

customer service and satisfaction

A major source of information and support for

decision making

A vital ingredient in developing competitive

products and services in the global marketplace

A dynamic and challenging career opportunity

A key component of todays networked business


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System Concepts: A Foundation

System concepts help us understand Technology: hardware, software, data

management, telecommunications networks

Applications: to support inter-connected

information systems

Development: developing ways to use

information technology includes designing the

basic components of information systems

Management: emphasizes the quality, strategicbusiness value, and security of an organizations

information systems

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What is a System?

A system is

A set of interrelated components

With a clearly defined boundary

Working together

To achieve a common set of objectives By accepting inputs and producing outputs

In an organized transformation process


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Basic Functions of a System

Input Capturing and assembling elements that enter the

system to be processed

Processing

Transformation process that converts input into

output

Output

Transferring transformed elements to their

ultimate destination

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Cybernetic System

All systems have input,processing, and output

A cybernetic system, a self-monitoring,

self-regulating system, adds feedback and

control:

Feedbackis data about the performance of asystem

Control involves monitoring and evaluating

feedback to determine whether a system is

moving toward the achievement of its goal


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A Cybernetic System

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A Business as a System


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Other System Characteristics

If a system is one of the components of a largersystem, it is a subsystem The larger system is an environment

Several systems may share the same

environment Some may be connected via a shared boundary,

orinterface

Types of systems

Open

Adaptive

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Components of an IS


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Information System Resources

People Resources Specialists

End users

Hardware Resources Machines

Media

Software Resources

Programs Procedures

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Information System Resources

Data Resources Product descriptions, customer records, employee

files, inventory databases

Network Resources

Communications media, communicationsprocessors, network access and control software

Information Resources Management reports and business documents

using text and graphics displays, audio responses,

and paper forms


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Data Versus Information

Data are raw facts about physical phenomena orbusiness transactions

Information is data that has been converted into

meaningful and useful context for end users

Examples: Sales data is names, quantities, and dollar

amounts

Sales information is amount of sales by producttype, sales territory, or salesperson

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IS Activities

Input of data resources Data entry activities

Processing of data into information Calculations, comparisons, sorting, and so on

Output of information products Messages, reports, forms, graphic images

Storage of data resources Data elements and databases

Control of system performance Monitoring and evaluating feedback


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Recognizing Information Systems

Business professionals should be able to look atan information system and identify

The people, hardware, software, data, and

network resources they use

The type of information products they produce

The way they perform input, processing, output,

storage, and control activities

Documents

MIS Chapter 01