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1.1 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Introduction to Management Information Systems Thossaporn Thossansin, BS.c, MS.c.

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Presentation on theme: "1.1 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Introduction to Management Information Systems Thossaporn Thossansin, BS.c, MS.c."— Presentation transcript:

1 1.1 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Introduction to Management Information Systems Thossaporn Thossansin, BS.c, MS.c ITE106: Management Information Systems

2 1.2 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Lecture: Wednesday 09:00 PM - 11:45 PM Thossaporn Thossansin, Bs.c, Ms.c email: thossaporn.piu@gmail.com ITE106: Management Information Systems

3 1.3 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall ตำราหลัก : Laudon, Kenneth C, Jane Price, Essentials of Management Information Systems, January 2010 (ISBN: 978-0-136-11444-4) ตำราประกอบ : Joseph Valacich / Christoph Schneider, Information Systems Today: Managing the Digital World, April 2009 (ISBN: 978-0- 13607-840-1) http://www.thaiall.com/mis/indexo.html Course Books

4 1.4 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall The grade received in the course will be based on: Participation/Homework(30%) Mid-TermExam(30%) Final Exam(40%) Grading

5 1.5 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Information Concepts: Data, Information, and Knowledge Data: raw facts –Alphanumeric, image, audio, and video Information: collection of facts organized in such a way that they have additional value beyond the value of the facts themselves –Value of Information is directly linked to how it helps decision makers achieve their organization’s goals and can be measured in time required to make a decision Increased profits to the company

6 1.6 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Figure 1.2: The Process of Transforming Data into Information Data, Information, and Knowledge

7 1.7 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall The Characteristics of Valuable Information Table 1.2: Characteristics of Valuable Information

8 1.8 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall The Characteristics of Valuable Information (continued) Table 1.2: Characteristics of Valuable Information (continued)

9 1.9 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall What is an Information System? Figure 1.3: The Components of any Information System

10 1.10 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Computer-Based Information Systems Computer-based information system (CBIS): single set of hardware, software, databases, telecommunications, people, and procedures configured to collect, manipulate, store, and process data into information

11 1.11 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Computer-Based Information Systems CBIS components –Hardware: computer equipment used to perform input, processing, and output activities –Software: computer programs that govern the operation of the computer –Database: organized collection of facts and information –Telecommunications: electronic transmission of signals for communications –Networks: connect computers and equipment in a building, around the country, and around the world

12 1.12 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Business Information Systems Most common types of information systems used in business organizations –Electronic and mobile commerce systems –Transaction processing systems –Management information systems –Decision support systems –Specialized business information systems

13 1.13 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Electronic and Mobile Commerce E-commerce: any business transaction executed electronically between parties –Companies (B2B) –Companies and consumers (B2C) –Consumers and other consumers (C2C) –Companies and the public sector –Consumers and the public sector

14 1.14 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Transaction Processing Systems Transaction: business-related exchange –Payments to employees –Sales to customers –Payments to suppliers Transaction processing system (TPS): organized collection of people, procedures, software, databases, and devices used to record completed business transactions

15 1.15 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Additional Business Information Systems Management Information Systems (MIS) –provide routine information to managers and decision makers Knowledge Management Systems (KMS) –create, store, share, and use the organization’s knowledge and experience Artificial intelligence (AI) –field in which the computer system takes on the characteristics of human intelligence Decision support system (DSS) –used to support problem-specific decision making

16 1.16 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Information  Data that has been put into a meaningful and useful context. Usually to help make a decision. Management Information System  A combination of computers and people that is used to provide information to aid in making decisions and managing a firm. Information Technology (IT) What is MIS?

17 1.17 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Why is MIS Important? MIS affects all areas of business –Manufacturing –Accounting & Finance –Human resources –Marketing –Top management Performance evaluations—expectations

18 1.18 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall What are e-Commerce and e-Business? Business-to-Consumer (B2C) –Selling retail products to consumers Business-to-Business (B2B) –Selling at the wholesale level to other businesses E-Business –Using Internet technologies to conduct any level of business –E-Commerce –Intranets –Most areas of MIS

19 1.19 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Several Terms E-World; Digital Age; Digital Firms Information Technology (IT) Information Systems (IS) Office Workers; Knowledge Workers; End-Users; End-User Managers E-Business; E-Commerce Business initiatives drive IT choices

20 1.20 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Managers and professionals spend considerable time in meetings. Providing support for teamwork and group decisions is an important issue in MIS. Meetings

21 1.21 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1 23 Making Decisions Methodology v. Ad Hoc Decisions Decision Process –Collect Data –Identify Problems & Opportunities –Make Choices

22 1.22 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Traditional Management CEO VP Finance VP Marketing VP Accounting VP HRM VP MIS Layers of middle managers Customers Commands Analyze data Condensed reports Collect data

23 1.23 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Decentralization Management Team CEO Finance Team Marketing Team Accounting Team HRM Team Sales Team Franchise Strategy Methodology/Rules Customers Corporate Database & Network VP Fin VP Mrkt VP Acct VP HRM VP MIS

24 1.24 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Business Trends Changing business environment –Specialization –Management by Methodology and Franchises –Mergers –Decentralization and Small Business –Temporary Workers –Internationalization –Service-Oriented Business –Re-engineering Need for faster responses and flexibility

25 1.25 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Business Trend Summary Business TrendImplications for Technology Specialization1.Increased demand for technical skills 2.Specialized MIS tools 3.Increased communication Methodology & Franchises1.Reduction of middle management 2.Increased data sharing 3.Increased analysis by top management 4.Computer support for rules 5.Re-engineering Mergers1.Four or five big firms dominate most industries 2.Need for communication 3.Strategic ties to customers and suppliers Decentralization & Small Business1.Communication needs 2.Lower cost of management tasks 3.Low maintenance technology Temporary Workers1.Managing through rules 2.Finding and evaluating workers 3.Coordination and control 4.Personal advancement through technology 5.Security Internationalization1.Communication 2.Product design 3.System development and programming 4.Sales and marketing Service Orientation1.Management jobs are information jobs 2.Customer service requires better information 3.Speed

26 1.26 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall US Employment Patterns

27 1.27 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall International Web Browsers Source: http://www.glreach.com/globstats/

28 1.28 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall MIS Organization Business Operations Tactical Management Strategic Mgt. EIS ES DSS Transaction Process Control ERP

29 1.29 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Operations, Tactics, Strategy

30 1.30 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Decision Levels Decision Level DescriptionExampleType of Information StrategicCompetitive advantage, become a market leader. Long-term outlook. New product that will change the industry. External events, rivals, sales, costs quality, trends. TacticalImproving operations without restructuring the company. New tools to cut costs or improve efficiency. Expenses, schedules, sales, models, forecasts. OperationsDay-to-day actions to keep the company functioning. Scheduling employees, ordering supplies. Transactions, accounting, human resource management, inventory.

31 1.31 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Information Technology (IT) Computer Technology (Hardware and Software)  Processing and Storing Information Communication Technology  Transmitting information

32 1.32 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

33 1.33 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall “Better” Tangible Outputs IT is used to make the process in producing a tangible output more efficient and more effective Implication Issues –whether or not to use IT –selecting the proper IT –employing correct procedures for the utilization of the IT

34 1.34 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Intangible Outputs A schematic viewA schematic view - the information/decision level MIS involves identifying the key decisions that are related to reaching objectives, on determining the proper information needed to make these decisions, and on improving the decision processes employed to make the decisions. Implications: Activity at this level concentrates on developing tools and processes that allow better management decision making

35 1.35 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall The MIS Concept Intangible Outputs (achieving desired objectives)

36 1.36 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall System Concepts What is a system? –A set of components that interact to accomplish goals –Systems can be viewed as process models in terms of their inputs, outputs, processing, and feedback/control mechanisms. Examples. What is an IS? –A set of interrelated components that collect input, process, and output data and information and provide a feedback/control mechanism What is a CBIS? (Computer-Based Information System ) –An IS that uses IT. –Components: hardware, software, databases, networks, people, procedure

37 1.37 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall System Examples University – an example –Inputs: students, faculty, textbooks –Processing mechanisms: teaching, research, service –Output: graduates –Goal: acquisition of knowledge The Manufacturing System Other example Subsystem, interface, open, adaptive BoundaryFeedbac k

38 1.38 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Manufacturing Process Input of Raw Materials Output of Finished Products Environment Other Systems Control by Management Control Signals Control Signals Feedback Signals Feedback Signals System Boundary A Manufacturing System: Generic Components

39 1.39 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Systems: Some Examples University –Inputs: Students, Faculty, Textbooks –Processes: Education/Courses –Output: graduates –Feedback: surveys, grades Toyota Plant –Inputs: raw materials, components –Processes: assembly line –Output: mini-vans –Feedback: customer surveys, quality reports Fast Food IS –Inputs: consumer orders –Processes: processing software –Output: receipts, cook’s order list –Feedback: invalid entry message Video Store IS –Inputs: rentals, returns –Processes: processing software –Output: reports, rental agreement –Feedback: error repots

40 1.40 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall System Classifications and Characteristics AdaptiveNonadaptive Subsystem System Boundary Interface Open, Adaptive Systems OpenClosed

41 1.41 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Input, Processing, Output, Feedback/Control INPUTS Gathering and capturing raw data PROCESSING Converting or transforming data into useful outputs OUTPUTS Producing useful information, usually in the form of documents. Feedback/Control Output that is used to make changes to input or processing activities

42 1.42 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Procedures Procedures - set of instructions used by people to complete a task Procedures include the strategies, policies, methods, and rules for using the CBIS. Examples: procedures describe –When each program is to be run –Who can have access to database –What is to be done in case of a disaster

43 1.43 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall System Performance Standards: Efficiency and Effectiveness Efficiency: a measure of what is produced divided by what is consumed an improved product the same level product produced cheaper or faster the improvement in the product exceeds the increased cost Effectiveness: a measure of the extent to which a system achieves its goals. Goal: to reduce damaged parts by 100 units Q: Actual reduction in damaged parts using a control system is only 85 units. Effectiveness? A: The effectiveness of the control system is 85 percent

44 1.44 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall What You Need to Know Foundation Concepts: Fundamental concepts about the components and roles of IS IT: Major concepts, developments, and management issues in information technologies Business Applications: The major uses of IS for the operations, management, and competitive advantage Development Processes: How end users or information specialists develop and implement IS The challenges of effectively and ethically managing information technologies, strategies, and security at the end user, enterprise, and global levels of a business

45 1.45 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Major Roles of Information Systems Support of Strategic Advantage Support of Managerial Decision Making Support of Business Operations

46 1.46 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall History of the Role of IS Data Processing Management Reporting Decision Support Strategic & End User Electronic Commerce 1950-19601960-1970 1970-1980 1980-1990 1990-2000 Electronic Data Processing - TPS Management Information Systems Decision Support Systems - Ad hoc Reports End User Computing Exec Info Sys Expert Systems SIS Electronic Business & Commerce -Internetworked E-Business & Commerce

47 1.47 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Trends in ISs Data Processing: 1950s - –Transaction processing, record keeping, traditional accounting applications Management Reporting: 1960s - –MIS – predefined management reports for decision-making purposes Decision Support: 1970s - –DSS – interactive ad hoc support of the managerial decision- making process Strategic and End User Support: 1980s - –EUC, Executive Information Systems, Expert Systems, Strategic Information Systems Electronic Business and E-Commerce: 1990s -

48 1.48 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Manufacturing and Production Engineering & Research Accounting, Finance, and Management Suppliers and Other Business Partners Procurement, Distribution, and Logistics Advertising Sales Customer Service Consumer and Business Customers Company Boundary Intranets The Internet Extranets The Electronic Business

49 1.49 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall What uses of IT might be considered improper, irresponsible, or harmful to other individuals or to society? What is the proper use of an organization’s information resources? What does it take to be a responsible end user of IT? How can you protect yourself from computer crime and other risks of IT? Ethical Dimensions of IT


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