MIS - Chapter 1+2 - All Slides

Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at

Adrian Gauci BA (Hons), MA, MBA (NY)

introduction to information systems: whiteley / palgravechapter 1 – information systems

Information Systems














An Information Systems (IS) is:

the business application of the computer.

The Information System:

Processes business transactions, andProvides management information







• Information Systems– “An organized combination of people, hardware,

software, networks and data resources that collect, transforms, and disseminates information in the organization.” James O’Brien (1998).

• Management Information Systems– Above definition plus…..Systems that provide people

with information relating to organizational operation, to support their Decision-Making activities

– Two Crucial Activities• Information Management• Management Reporting




Example information system: Payroll

Input data: employee details and rates of pay.Output transactions: bank transactions, payslips, etc.Management Information:payroll costs by department, etc.




Example information system: Order Processing

Input transaction: customer order.Standing data: customer and product data.Output transactions: delivery note, invoice, etc.Management Information: sales analysis, etc.



Data

Information

Knowledge

meaning

useful

Information is a difference that makes a

difference

unstructured, uninformed

facts

To conceive of knowledge as a collection of

information seems to rob the concept of all of its

life... Knowledge resides in the user and not in the collection. It is how the

user reacts to a collection of information that

matters(Experience)

Understanding the nature of information



Various Information Systems • TPS (Transaction Processing Systems)• MIS (Management Information Systems)• MRS (Management Reporting Systems)• DSS (Decision Support Systems)• EIS (Executive Information Systems)• SIS (Strategic Information Systems)• KMS (Knowledge Management Systems)• OIS (Office Information Systems)



IS Types• Define and describe business processes and their relationship to information

systems.• Describe the information systems supporting the major business functions: sales

and marketing, manufacturing and production, finance and accounting, and human resources.

• Evaluate the role played by systems serving the various levels of management in a business and their relationship to each other.

• Explain how enterprise applications and intranets promote business process integration and improve organizational performance.

• Assess the role of the information systems function in a business.• Assess how information systems support the activities of managers and

management decision making.• Demonstrate how decision-support systems (DSS) differ from MIS and how they

provide value to the business.• Demonstrate how executive support systems (ESS) help senior managers make

better decisions.



Business Processes• Business processes• How information technology enhances

business processes: efficiency and transformation



Integrating Functions and Business Processes

• Business processes– Sets of logically related activities for accomplishing a

specific business result– Manner in which work is organized, coordinated, and

focused to produce a valuable product or service– Concrete work flows of material, information, and

knowledge—sets of activities– Unique ways to coordinate work, information, and

knowledge– Ways in which management chooses to coordinate work



Order fulfillment process



Information systems and business processes

• Information systems help organizations achieve great efficiencies by automating parts of processes

• IS also contributes to completely rethinking processes.

• Business processes typically span several different functional areas.



Information System Taxonomy

Constituency perspective

Functional perspective



Business Functions• Sales and Marketing

– Identifying customers, creating customer awareness, selling

• Manufacturing and Production– Assembling product, checking quality, producing bills

of materials• Finance and Accounting

– Paying creditors, creating financial statements, managing cash accounts

• Human Resources– Hiring employees, evaluating performance, enrolling

employees in benefits plans



TPS• Transaction Processing Systems

– Inputs: transactions/records– Processing: data manipulation– Outputs: various detailed operational reports– Users: Operational level employees– Focus: improve efficiency of structured data

processing



An Example: Payroll System



MIS• Management Information Systems

– Inputs: high volume transaction data– Processing: routines, simple models– Outputs: summary reports– User: Middle-level managers– Focus: improve the efficiency and effectiveness

of management for middle managers



A typical MIS

Figure 2-6



DSS• Decision Support Systems

– Inputs: transaction/aggregate data, analytical models

– Processing: interactive (between man and machine)

– Outputs: decision analysis, responses to ad hoc query

– Users: Professionals, staff– Focus: increase the effectiveness of the

decisions made by middle managers



Decision Making

Figure 12-1



Architecture of DSS



ESS• Executive Support Systems

– Inputs: aggregate data from company– Processing: Interactive and live– Outputs: reports on projections, responses to ad

hoc queries– Users: senior managers, executives, BOD etc.– Focus: increase the non-routine decision

effectiveness of senior managers.



A typical ESS

Internal Data

External Data



Information Systems Interrelationships

feedback



Summary





Management Support Systems

• The support of management tasks by the application of technologies– Sometimes called Decision Support Systems or

Business Intelligence



Learning Objectives

• Understand how management uses computer technologies.

• Learn basic concepts of decision-making. • Understands decision support systems.• Recognize different types of decision support

systems used in the workplace.• Determine which type of decision support system

is applicable in specific situations.



Factors Affecting Decision-Making

• New technologies and better information distribution have resulted in more alternatives for management.

• Complex operations have increased the costs of errors, causing a chain reaction throughout the organization.

• Rapidly changing global economies and markets are producing greater uncertainty and requiring faster response in order to maintain competitive advantages.

• Increasing governmental regulation coupled with political destabilization have caused great uncertainty.



What do Management Support Systems Offer?

• Quick computations at a lower cost• Group collaboration and communication• Increased productivity• Ready access to information stored in multiple

databases and data warehouse• Ability to analyze multiple alternatives and apply

risk management• Enterprise resource management• Tools to obtain and maintain competitive

advantage



Cognitive Limits• The human mind has limited processing and

storage capabilities.• Any single person is therefore limited in their

decision making abilities.• Collaboration with others allows for a wider range

of possible answers, but will often be faced with communications problems.

• Computers improve the coordination of these activities.

• This knowledge sharing is enhanced through the use of GSS, KMS, and EIS



Management Support Systems Tools

• Decision support system (DSS)• Management Science• Business Analytics• Data Mining• Data Warehouse• Business Intelligence• Online analytical processing (OLAP)• Computer-assisted systems engineering (CASE) • Group support systems (GSS)• Geography information system (GIS)



Types• Enterprise information system (EIS)• Enterprise resource management(ERM)• Enterprise resource planning(ERP)• Customer resource management(CRM)• Supply chain management (SCM)• Knowledge management system (KMS)• Expert system(ES)• Artificial neural networks (ANN)• Intelligent Agents• E-commerce DSS


Adrian Gauci BA (Hons), MA, MBA (NY)Decision Support Frameworks

Type of Control

Type of Decision: Operational Control Managerial Control Strategic Planning

Structured(Programmed)

Accounts receivable, accounts payable, order entry

Budget analysis, short-term forecasting, personnel reports

Investments, warehouse locations, distribution centers

Semistructured Production scheduling, inventory control

Credit evaluation, budget preparation, project scheduling, rewards systems

Mergers and acquisitions, new product planning, compensation, QA, HR policy planning

Unstructured(Unprogrammed)

Buying software, approving loans, help desk

Negotiations, recruitment, hardware purchasing

R&D planning, technology development, social responsibility plans



Technology Support

Type of Control

Operational Control

Managerial Control

Strategic Planning

Technology Support Needed

MIS, Management Science

Management Science, DSS, ES, EIS, SCM, CRM, GSS, SCM

GSS, CRM, EIS, ES, neural networks, KMS





Explanations of systems• MIS - Information systems at management level

to serve the function of planning, controlling, and decision making by providing routine summary and expectation reports.

• DSS - Information systems at management level to combine data and sophisticated analysis model to support non routine decision making.

• ESS - Information systems at strategic level designed to address non routine decision making through advanced graphics and communication



Six Major Types Of Systems• TPS - Computerized system that perform and

record the daily routine transaction necessary to conduct the business.

• OS - Computer systems, such as word processing ,e-mail, scheduling, that are designed to increase the productivity of data workers in office.

• KWS - Information system that aid knowledge workers in the creation and integration of new knowledge in the organization.



Basic Six MSSType of system

Information Input Processing Information output Users

ESS Aggregate data;Internal, external

Graphics; simulation Projections; responses to queries

Senior manager

DSS Low-volume data ; analytic models & tools

Interactive ; simulation

Special reports ; decision analysis

Professionals ; staff managers

MIS Summary transaction data ;High volume data ; simple models

Routine reports ; low level analysis

Summary and exception reports

Middle manager

KWS Design specification ;Knowledge base

Modeling ; simulation

Models; graphics Professionals ; technical staff

OS Documents ; schedules Document management ; scheduling; communication

Documents ; Schedules ;mails

Clerical workers

TPS Transaction ; events Sorting; listing ; merging ;updating

Detailed reports ; lists; summaries

Operation personnel;supervisors




Organisational IS:

Corporate IS: large system(s) central to the core activity of the organisation.e.g. supermarket sales and stock replenishment. … any more ?

Additional (departmental) IS:

MarketingAccountsCustomer complaints…. Any more ??



Introto IS

Chap 1

Example IT Infrastructure: a supermarket

EPOS

EPOS

EPOS

server

Store

EPOS

EPOS

EPOS

server

Store

EPOS

EPOS

EPOS

server

Store

datacentre

Head Office

server

RegionalWarehouse

server

RegionalWarehouse

order IS

Supplier

order IS

Supplier

order IS

Supplier




The study of IS encompasses:

The application and effect of IS within organisations:

The Business Context of IS (Part II).Business application and use of IS (Part III).Information Technology for IS (Part IV).Legal, Social and Ethical Implications of IS (Part VI)

The analysis, design and implementation of IS (Part V).

These topics are covered by your course text as indicated above.




Business

Computers Storage & Comms

Project

Management

Systems Analysis &

Design

System Test

Project Quality

Acceptance Test

Programming

The IS Function in an Organisation





IS in Organizations


Adrian Gauci BA (Hons), MA, MBA (NY)Further Roles in the IS Function.




Feasibility Study

System Analysis and Design

Program and Unit Test

System and Acceptence Test

Operations

The SystemDevelopment Lifecycle





IS Perspectives & Goals• IS Perspectives

– Operational activities– Management support– KM– Networking and e-activities

• Objectives & Goals– Operational Efficiency– Functional Effectiveness– Customer Service– Product Creation & Enhancement– Competitive Advantage– Communication and Networking– Control & Feedback



Contemporary Issues• IS Theory seems to be still in evolution• People/Management a trouble area• Keeping yourself updated (choice of

technologies)• Investment Analysis for IS• Interaction between IT and other functional

areas• Career Development • For us as Academic participants (Teachers &

Students)– Controversial area of study (Hype another factor)– Still the most demanded course in field of IT



Other Challenges• The challenge of IS planning• The challenge of time required for successful

organizational learning about IT limits the practical speed of change

• The challenge of managing disruptive technologies (e.g. the Internet)

• The challenge of developing competencies for harnessing IT

• The challenge of remaining ethical• The challenge of information security



Counter Strategies• ??????????? (More Questions than

answers)• Circumstances might change from situation to

situation and organization to organization• Continuous search for better IS options• Knowledge about IS issues/strategies is more

crucial than having the latest technology• Recommendations

– Analysis of the IS decisions will require same care and deep thinking as done for other business and functional problems/situations

– Project Management



Systems

• A system is made up of a number of parts combined in a particular way to do something useful. We think of the combined parts as a single thing and we give it a name.

Wheels, axles, pedals, gears, chain, seat and handlebars are combined to form a single whole we call a bicycle. A bike is a system when all the parts are connected correctly because it allows

the rider to move from one place to another more easily.


Adrian Gauci BA (Hons), MA, MBA (NY)Systems

• Systematic– Words like “Arrangements, Coordination”– Objectives of Systems (clear definition,

optimization)• What is a System?

– Interrelated Elements that collectively work to achieve a common goal

– Physical Elements– Logical constitution– System Environment (internal Vs. external

influences)


Adrian Gauci BA (Hons), MA, MBA (NY)Systems…..

• Examples – Universities

• Departments• Staff• Courses• Hostels etc. • Environment• Logical Arrangements

– Class Room• Whiteboard• Chairs, Tables• Technologies (projectors)• Teachers• Students• Non-physical Things (Guess what could be?)


Adrian Gauci BA (Hons), MA, MBA (NY)System Models

• What is a Model?– Presentation of real world elements and the relationship

among them– Porter’s five forces Model, Management level’s Model etc.

• Why we need Models • Types (General Vs Specific)

– Graphical– Mathematical– Narrative– Physical

• Examples– Organization’s general model– Strategic Planning Models– DSS (utilizing models & modeling techniques)