Management Information Systems Islamia University of Bahawalpur Delivered by: Tasawar Javed

History of Information Systems  It includes: How H/W has evolved and how it has been applied over time First general purpose Digital Computer was installed in a business organization Great increase in speed Dramatic reduction in Size Evolved from relatively straightforward accounting process to system Designed to support Managers and other problem solvers Management Information Systems

Why Information Systems?  It includes: The competitive business environment Three powerful changes have altered the environment of business. 1 st : The Emergence & Strengthening of the global economy 2 nd : Transformation of industrial economies and societies into knowledge and in-formation based service economies 3 rd : Transformation of the business enterprise Management Information Systems

First Change: The Emergence & Strengthening of the global economy Growing % of economy in the world depends on import and exports. Foreign trade plays a vital role in the economy of the country. Globalization:  Management & control in a global marketplace  Competition in world markets  Global work groups  Global delivery systems Why Information Systems

Second Change: Transformation of industrial Economies Knowledge and information based economies Productivity New products and services Leadership Time based competition Shorter product life cycle Turbulent environment Limited employee knowledge base Why Information Systems

Third Change: Transformation of the enterprise Flattening Decentralization Flexibility Location independence Low transaction and coordination costs Empowerment Collaborative work and teamwork Why Information Systems

How IT can transform organizations Global Networks International division of labour: the operations of a firm are no longer determined by location, the global reach of firms is extended; costs of global coordination decline. Transaction costs decline Enterprise Networks collaborative work & teamwork, across divisional boundaries, business process changed Distributed computing empowerment: Management cost decline, individual have knowledge and information to act Why Information Systems

How IT can transform organizations Portable Computing Virtual organizations: work is not tied to specific location, knowledge and info can be delivered to anywhere in minimum time, work becomes portable GUI Accessibility: everyone in organization can access the info, work flows can be automated, organizational cost decline as work flows move from paper to digital images, documents & Voice Why Information Systems

Evolution in Computer H/W  ENIAC ( Electronic Numerical Integrator & Calculator ) Developed in 1946 by John & Presper  UNIVAC (universal automatic computer) Installed in 1951, in US census Bureau GE; installed same machine 3 years later These early computer called ‘Mainframes’ IBM revolutionized the computer industry Introduced IBM/system/360 line More than one user appears to be working on the computer at same time; refers as ‘Multitasking’ Old computer were much more slower than current computers Management Information Systems

Moore’s Law  Processor speed has increased in number of years, after IBM introduced microcomputer  Gordon Moore gave Moore’s law; one of the founder of Intel, in 1960s  It stated “storage density of integrated circuits on a silicon chip doubled about every year”  After that pace slowed down and now it doubles every year and half (18 months)  If you purchase a computer 15 years from today, it would be 1024 times as powerful, yet cost the same as today’s model Management Information Systems

IS are virtual system that enable management to control the operations of the physical system of the firm Physical System  Of the firms consists of tangible resources such as: materials, personnel, machines and money Virtual System  Consist of the information resources that are used to represent the physical system; for example an inventory storeroom containing inventory items is a physical system and the computer based inventory master file is a virtual system that represents the physical system. The Evolution in Computer Applications

Open system  That interacts with its environment by means of physical resources flows. An Information System is also an open system Closed system  System that doesn’t communicate with its environment. Closed system would not interact with customers, managers, or anyone else The Evolution in Computer Applications

Transaction Processing Systems Management Information Systems Virtual Office Systems Decision Support Systems Enterprise Resource Planning Systems The Evolution in Computer Applications

IS; interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualisation in an organization Information Data Feed back What is an IS? Data Process Information

Computer Based IS

 Computers and software are technical foundation and tools to store and process information  similar to the material and tools used to build a house  Can’t produce required information to a particular organization Computer SW vs IS

Dimensions of IS

Organizational Dimensions  structure: different levels and specialties hierarchy of authority, responsibility: Senior Middle Operational management, Knowledge service Data workers  business process: Organization coordinate its work through its hierarchy and business process  Culture : ways of doing things, part is embedded in IS. Management Dimensions Technological Dimensions Dimensions of IS

Management Dimensions – Make decisions, formulate action plan and solve organizational problem – Managers set organizational strategy for responding to business challenges – In addition, managers must act creatively: Creation of new products and services Occasionally re-creating the organization Technological Dimensions – Hardware: physical component ;Software: instruction control Hardware; Data management technology – Network and telecommunications technology – WWW: service to store retrieve information IT infrastructure: platform that the firm can built on its IS Dimensions of IS

 IS instrument for creating value to firms  Investments in IS result in superior returns: Increases productivity and revenue  IS provides information that helps managers making better decisions and improve the execution of business process  Value of IS Business Perspective on IS

Investing in information technology does not guarantee good returns Considerable variation in the returns firms receive from systems investments The variation in Returns Factors that case The variation in Returns : – Adopting right business model according (suite) to new technology – complementary investments (business processes, models, management behavior and culture) There variation in Returns on Information Technology Investment

Contemporary Approaches to IS

Operational level systems  Info that monitor the elementary activities & transactions of the organizations Knowledge level systems  IS that support knowledge and data workers in an organizations Management level systems  IS that support the monitoring, control, DM & Admin activities Strategic level systems  IS that support the long range planning activities of senior management Key System Applications in the Organization

The Challenge of Information System: Key Management Issues The Strategic Business challenge The Globalization challenge The Information Architecture Challenge The Information System Investment Challenge The Responsibility and Control Challenge