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1 C H A P T E R CP3507 – MIS Course Introduction.

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1 1 C H A P T E R CP3507 – MIS Course Introduction

2 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

3 Information Technology (IT) Computer Technology  Hardware and Software  Processing and Storing Information Communication Technology  Transmitting information

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5 The MIS Concept The MIS concept addresses the use of IT to improve individual and organizational performance at two levels : 1)producing “better” tangible outputs 2)developing tools and processes that allow better management decision making

6 Level 1: “Better” Tangible Outputs IT is used to make the process in producing a tangible output more efficient and more effective

7 Level 2 : Intangible Outputs A schematic view - the information/decision levelA schematic view 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

8 The MIS Concept - Level 2: Intangible Outputs (achieving desired objectives)

9 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.Examples What is an IS?  A set of interrelated components that collect input, process, and output data and information and provide a feedback/control mechanismcollect input, process, and output data and information and provide a feedback/control mechanism What is a CBIS?  An IS that uses IT.  Components: hardware, software, databases, networks, people, procedures procedures

10 System Examples 1)University – an example  Inputs: students, faculty, textbooks  Processing mechanisms: teaching, research, service  Output: graduates  Goal: acquisition of knowledge 2)The Manufacturing SystemThe Manufacturing System 1)Other ExamplesOther Examples

11 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

12 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

13 System Classifications and Characteristics OpenClosedAdaptiveNonadaptive Subsystem System Boundary Interface Open, Adaptive Systems

14 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

15 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

16 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

17 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

18 Major Roles of Information Systems Support of Strategic Advantage Support of Managerial Decision Making Support of Business Operations

19 History of the Role of IS Data Processing Management Reporting Decision Support Strategic & End User Electronic Commerce 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

20 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 -

21 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

22 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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