Session 1 - Foundation of Information System in Business

© Bijendra Suwal Management Information System

Session I - Foundation of MISSession I - Foundation of MIS

1.1

Foundation of Foundation of Management Information Management Information

SystemSystem



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Main Objective of Information system

To deliver the right information, at the right To deliver the right information, at the right time and to the right location to make the right time and to the right location to make the right

decisiondecision



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• Foundation concept

• Information Technology

• Business Application

• Development Process

• Management Challenges

Main Objective of Information system



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• Transform your business• Revitalize business processes• Improve business decision

making• Gain Competitive advantages• Investment (Sources of

Revenue)/Cost• Cost Cutting (Denominator)• Re-generating/Sources of

Revenue (Numerator)

OBJECTIVES of IS



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Information Systems Revolution



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Figure 1-8

Information Systems Revolution

The Widening Scope of Information Systems



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• Role of IS in today’s competitive business environment– Man, Machine, Money, Material, MIS

• IS and Manager’s knowledge on IS– re-structuring– re-engineering – re-generating (numerator)

• Management challenges in adopting IS

OBJECTIVES of Chapter 1



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A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization

What Is an Information System?

Various components necessary for the system to operate

• Telecommunications Network Technology• Data Resource Management• Computer Hardware Technologies• Computer Software Technologies• Human resources



1.9Figure 1-2

Data and Information

WHY INFORMATION SYSTEMS?



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Functions of an Information System



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• Flattening organizations

• Reorganizing work-flows

• Increasing flexibility

• Redefining organizational boundaries

New Options for Organizational Design

Re-structuring, Re-engineering, Regenerating



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Figure 1-9

Flattening Organizations Information Systems



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Figure 1-10

Redesigned Work Flow For Insurance Underwriting



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Architecture and Infrastructure



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Types of Information Systems



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TYPES OF INFORMATION SYSTEMS



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• Functional Business Systems – support basic business functions

• Strategic Information Systems – support processes that provide a firm with strategic products, services, and capabilities for competitive advantage

• Cross-functional Information Systems – integrated combinations of information systems

IS Classification by Scope



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Types of Information Systems



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Conceptual Framework of IS Knowledge

TECHNOLOGYTECHNOLOGY

MANAGEMENTMANAGEMENT

OrganizationOrganization

Information

Systems



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Business System and Role of IS



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Component of an Information Systems – Resources and activities



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The Competitive Business Environment

Four powerful worldwide changes that have altered the business environment:

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

Management Challenges



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1. Emergence of the Global Economy

• Management and control in a global marketplace• Competition in world markets• Global work groups• Global delivery systems





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2. Transformation of Industrial Economies

• Knowledge- and information-based economies

• Productivity

• New products and services

• Knowledge: a central productive and strategic asset





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3. Transformation of Industrial Economies

• Time-based competition

• Shorter product life

• Turbulent environment

• Limited employee knowledge base





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3. Transformation of the Business Enterprise

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

The Competitive Business Environment and the Emerging Digital Firm




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4. Emergence of the Digital Firm

• Digitally-enabled relationships with customers, suppliers, and employees

• Core business processes accomplished via digital networks

• Digital management of key corporate assets• Rapid sensing and responding to environmental

changes

The Competitive Business Environment and the Emerging Digital Firm




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• Loss of management control• Connectivity and application integration challenges• Organizational change requirements• Hidden costs of enterprise computing• Scalability, reliability, and security• downtime

The Challenge of Managing the New Information Technology Infrastructure



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1. Design competitive and effective systems

2. Understand system requirements of global business environment

3. Create information architecture that supports organization’s goal

4. Determine business value of information systems

5. Design systems people can control, understand and use in a socially, ethically responsible manner




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Management Challenges and Opportunities



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• IS is no more a tool, rather a strategic function

• an important contributor to operational efficiency, employee productivity, customer satisfaction with quality service

• a major source to promote effective decision making by managers and business professionals

• Managing and using information systems can pose several challenges

Summary

Documents

Session 1 - Foundation of Information System in Business