1. Chapter 1 Business Information Systems: An Overview
Management Information Systems, 3rd Edition
Effy Oz

2. What is a problem? Problems in business are undesirable situations
To solve problems, managers must make decisions to resolve the undesirable situation
Decisions involve selecting a solution from among several alternatives.
Good decisions require information
Information systems produce information (among other things)
Management Information Systems, 3rd Edition
Effy Oz

3. Data and Information
Data are defined as raw facts (dates, monetary amounts, names, addresses, account numbers, prices, etc.)
Information is processed data put into some context. Contextual elements include things like relevance, completeness, accuracy, or timeliness).
A system is a set of components that work together to produce a common goal (or goals)
An information system is a set of components whose goal is to produce information that benefits an organization
Management Information Systems, 3rd Edition
Effy Oz

4. Components of Information Systems
Components of an IS include hardware, software, data, people, and processes (see next slide)
Examples of each
Information technology refers to all technologies that facilitate the construction of IS
Importance of IS in business due to several trends
Price performance ratio of information technology
Variety and ingenuity of computer programs
Quick and reliable telecommunications due to the Internet
The Internet has in turn spurred global competition
Computer literacy of the workforce
Management Information Systems, 3rd Edition
Effy Oz

5. Six Components of Information Systems
Figure 1.6 Components of an information system
Management Information Systems, 3rd Edition
Effy Oz

6. What does the word “processing” in data processing mean?
Most systems achieve their goals by taking inputs, processing the inputs, and producing outputs.
In the case of IS inputs are data and outputs are information.
Meaning of processing in this context
Arithmetic, statistics, sorting, grouping etc.
Systems viewpoint in problem solving .
Look for systems
Determine outputs and work backwards
Examples
Management Information Systems, 3rd Edition
Effy Oz

7. The Four Stages of Data Processing
Input: Data are collected and entered into computer.
Data processing: Data are manipulated into information using mathematical, statistical, and other tools.
Output: Information is displayed or presented.
Storage: Data and information are maintained for later use.
Note input and output are used slightly differently in this context
Management Information Systems, 3rd Edition
Effy Oz

8. Computer Equipment for Information System
Input devices introduce data into the IS.
The computer processes data through the IS.
Output devices display information.
Storage devices store data and information.
Management Information Systems, 3rd Edition
Effy Oz

9. Types of Information Systems
Transaction Processing Systems (TPS)
Record data and perform basic processing
Cash registers and ATMs
Management Information Systems (MIS)
Use recorded transactions and other data to produce information for problem solving and decision making.
Management Information Systems, 3rd Edition
Effy Oz

10. Types of Managerial IS Decision Support Systems (DSS)
Contain models, or formulas, that manipulate data into information
Often answer “what if?” questions
Group Decision Support Systems (GDSS) help groups generate ideas, establish priorities, and reach decisions
Executive Information Systems (EIS)
Can gather information from vast amounts of data for high-level executives
Highly useful in control and planning
Management Information Systems, 3rd Edition
Effy Oz

11. ISs in Functional Business Areas
Accounting
Record business transactions, produce periodic financial statements, and create reports required by law
Finance
Organize budgets, manage the flow of cash, analyze investments, and make decisions that could reduce interest payments and increase revenues
Management Information Systems, 3rd Edition
Effy Oz

12. ISs in Functional Business Areas
Marketing
Analyze demand for various products in different regions and population groups
Human Resources
Help with record keeping and employee evaluation
Management Information Systems, 3rd Edition
Effy Oz

13. ISs in Different Business Sectors
Manufacturing
Control inventory, process customer orders, prepare production schedules, perform quality assurance, and prepare shipping documents
Government
Tax authorities, national insurance and welfare agencies, defense departments, economic organizations, immigration authorities
Service
ISs are often the backbone of service organizations
Management Information Systems, 3rd Edition
Effy Oz

14. ISs in Different Business Sectors
Retail
Some retail stores (e.g., Wal-Mart, Kmart) are now linked to communication networks by satellite.
Management can determine which items move quickly and which do not.
New Businesses
ISs have made new products and services possible, such as credit reports and shipment tracking.
Management Information Systems, 3rd Edition
Effy Oz

15. Ethical and Societal Issues The Dark Side of IS/IT
Consumer Privacy
Organizations collect (and sometimes sell) huge amounts of data on individuals.
Employee Privacy
IT supports remote monitoring of employees, violating privacy and creating stress.
Freedom of Speech
IT increases opportunities for pornography, hate speech, intellectual property crime, and other intrusions; prevention may abridge free speech.
Management Information Systems, 3rd Edition
Effy Oz