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Introduction to MIS Minder Chen, Ph.D. Associate Professor Martin V. Smith School of Business and economics CSU Channel Islands
MIS - 2 © Minder Chen, What is MIS? M: Management –Management, Organization, Business Function, Business Process, Organization and Human Behaviors I: Information –Data, Information, Knowledge –Creation, Gathering, Storing, Organizing, Consolidating& Condensing, Filtering, Delivery, and Sharing of Information S: System –General Systems Theory (GST) –Input-Process-Output and Storage –Creative Problem Solving Process
MIS - 3 © Minder Chen, A System View of an Information System Input Process Output Data storage Procedure Control Environments Data Sources Information Destinations Information System Boundary What are the Hardware for Inputs, Outputs, Processing, and Storages? Data Providers Information Consumers Information Producer
MIS - 4 © Minder Chen, Characteristics of Good Information Figure 1-6 here Source: Using MIS 3e Deliver just enough accurate, relevant, and timely information to the right persons to make better decisions. How much energy does a Google search consume? Information overloading
MIS - 5 © Minder Chen, Information Quality (IA) and Categories Source:
MIS - 6 © Minder Chen, Presentation of Information
MIS - 7 © Minder Chen, Another Version
MIS - 8 © Minder Chen, Managing Information as a Resource The resources of the industrial age were tangible things that could be mined, processes, bought, sold, managed, and easily understood. In the emerging post-industrial society, there is little understanding of the characteristics of information – the basic yet abstract, resource. Harland Cleveland, "Information as Resource," The Futurist, December 1982, Information as Resource
MIS - 9 © Minder Chen, Information as Products/Services CarFax: CARFAX - Vehicle History Reports and VIN number check - Britannica: –http://www.britannica.com/http://www.britannica.com/ –Blown to Bits: How the New Economics of Information Transforms StrategyBlown to Bits: How the New Economics of Information Transforms Strategy –The printed version was blown away by ??? Three strikes out. –A comeback act?A comeback act –Why Britannica matter? No printed version, 2010/2012.Why Britannica matter? No printed version, 2010/2012 Information as services –Google: Searching for information (Google would provide “access to the world's information in one click”) –Facebook: Sharing information Source:
MIS - 10 © Minder Chen, CD-ROM based Encyclopedia Encarta, Grolier, and Compton, list for $50 to $70; usually bundled with a new PC for free. Content Distribution channel Cost: –With a marginal manufacturing cost of $1.50 per copy, the CD-ROM as freebie makes good economic sense. –The marginal cost of Britannica, in contrast, is about $250 for production plus about $500 to $600 for the salesperson’s commission.
MIS - 11 © Minder Chen, Britannica Sales
MIS - 12 © Minder Chen, Britannica vs. Wikipedia CharacteristicBritannicaWikipedia Price Content generation/Editorial Update frequency Revenue stream Quality of the content Wiki vs. Wikipedia
MIS - 13 © Minder Chen, Information Life Cycle Decision Action Data Information Intelligence Design Choice
MIS - 14 © Minder Chen, Even the Caveman Needs Knowledge to Survive The information-knowledge-wisdom hierarchy. The caveman has lots of information; he selects and organizes useful information into knowledge, but he does not achieve wisdom until he has integrated his knowledge into a whole that is more than useful than the sum of its parts. Source: Harlan Cleveland, "Information as a Resource," The Futurist, December 1982,
MIS - 15 © Minder Chen, DIKW (Information) Hierarchy Knowledge Information Event Data Learning: Integration into strategic policy through experience Analysis: Application to decision making Observation: Description of events Wisdom Know why Know how Know what Know nothing Happening/Doing
MIS - 16 © Minder Chen, Moving Up the Knowledge Hierarchy Where is the knowledge we have lost in information? Where is the wisdom we have lost in knowledge? Where is the life we have lost in living? T.S. Eliot, Choruses from "The Rocks," 1934
MIS - 17 © Minder Chen, Information Systems Components Source: adapted from Using MIS 3e Manual Procedures and Business Process Individuals, Groups, Departments, Enterprise-wide, Customers, Trading partners Data, Information, Knowledge System SW, Application SW Computer Server PC Mobile Networking
MIS - 18 © Minder Chen, Information as Product vs. By-Product
MIS - 19 © Minder Chen, Information as: Product vs. By-Product
MIS - 20 © Minder Chen, People Processes Things Man: Human Resource, Employees Market: Customers Machine: Property, Facility, Technology Material: Raw material, Product Method: Technique, Process, Project, Task Money: Accounting, Finance, Investment $$$ Message: Information huMan, Market, Money, Method, Machine, Material, Message Business environments Market demands Technology development Social trends Locations/Localization
MIS - 21 © Minder Chen, MIS Management BY Information Systems Management OF Information Systems Information Other Resources: HR, Money, Material, etc. Manages Resources Information Systems Managing Information as Resource (Inventory Information System) Selling Information as Products (eBook) Offering Information as Services (Facebook) As Products or Services
MIS - 22 © Minder Chen, IT, IS and IM Competing with Information: A Manager's Guide to Creating Business Value with Information ContentCompeting with Information: A Manager's Guide to Creating Business Value with Information Content
MIS - 23 © Minder Chen, The Extended Enterprise E-Business: Virtual and Dynamic Enterprise Suppliers Back Office Front Office Customers BuyMake/Add Value Sell Supply ChainBack Office Integration Demand Chain Manufacturing Finance Engineering Sales Support/Service Marketing Supply Chain Management Customer Relationship Management Enterprise Resource Planning © Minder Chen,
MIS - 24 © Minder Chen, A Federation of Information Systems Customer Relationship Management (CRM)
MIS - 25 © Minder Chen, Information Systems Triad Operational Database Data Warehouse Data Mart Enterprise Workflow OLTP Online Transaction Processing BI DSS EIS Data Information Knowledge Messaging Systems Workflow, Collaboration, Groupware Business Process Workflow OLAP Online Analytical Processing
MIS - 26 © Minder Chen, Information Systems Transaction Processing System –Online transaction processing system (OLTP) –Batch, Online, real-time Management support system –Decision support system (DSS), Executive information system (EIS), Digital Dashboard –Data warehouse, Business intelligence (BI) Units involved –Individual, group, and departmental, enterprise-wide, inter-organizational information, social network system Strategic Information Systems IT Platforms –Traditional desktop/client-server application –Web-based applications (Electronic Commerce) –Mobile applications
MIS - 27 © Minder Chen, Information System Applications
MIS - 28 © Minder Chen, COBIT’s Information Criteria (I) EffectivenessEffectiveness deals with information being relevant and pertinent to the business process as well as being delivered in a timely, correct, consistent and usable manner. EfficiencyEfficiency concerns the provision of information through the optimal (most productive and economical) use of resources. ConfidentialityConfidentiality concerns the protection of sensitive information from unauthorized disclosure. (Sony PlayStation Network hacked) IntegrityIntegrity relates to the accuracy and completeness of information as well as to its validity in accordance with business values and expectations.
MIS - 29 © Minder Chen, COBIT’s Information Criteria (II) AvailabilityAvailability relates to information being available when required by the business process now and in the future. It also concerns the safeguarding of necessary resources and associated capabilities. ComplianceCompliance deals with complying with the laws, regulations and contractual arrangements to which the business process is subject, i.e., externally imposed business criteria as well as internal policies. (Sarbanes–Oxley Act)Sarbanes–Oxley Act ReliabilityReliability relates to the provision of appropriate information for management to operate the entity and exercise its fiduciary and governance responsibilities.
MIS - 30 © Minder Chen, Exercise – 20-minute break and 5-minute presentation Describe your background and experiences –Company name and the industry it belongs to –Position and general responsibility –Three major decisions Pick the most important decision involved in this position and find out the following: –Characteristic of the decision: Operational vs. Strategic; Structured vs. Unstructured; Routine vs. Non-routine –What information is current used to support the decision –What kind of source data should be collected to generate the information needed –Under which task is this decision performed –What is the broader business process that this task belongs. What additional improvements can be made from the perspectives of information systems and decision making
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