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Management Information Systems (MIS)
Maria-Iuliana Dascalu, PhD University POLITEHNICA of Bucharest Faculty of Engineering in Foreign Languages
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Course Schedule and Logistics
2 hours of lectures per week 2 hours of application once at 2 weeks Grading: 40% 1 project in ADONIS (in groups of maximum 2 students) 20% 1 ppt presentation of 20 minutes on a given subject (in groups of maximum 2 students) 40% 1 written study for the presentation on a specific template (in groups of maximum 2 students) or exam (individually!!!) To pass: At least 4.5 in total At least half of the available points for each component
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The Presentation Possible subjects: “Survey on Big Data Analytics Platforms”, “Social Media at Work”, “Decision Support Systems – Concept, Trends and Challenges”, “Survey on Mixed Reality Tools”….(a list will be provided on my website next week)
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The Written Study In IEEE Computer Society format:
Word template: Latex template: At least 4 full pages, but no more than 6 full pages Example: ew_Learning_Paradigms.pdf?dl=0 At least 7 references: …. The paper has to be sent by , with the subject [MIS STUDY] your names (in an editable form and in a pdf form) You will receive a feedback (additional changes might be ask, which have to be done till the exam day - the study has to be re-sent by till the exam day)
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References Management Information Systems - MANAGING THE DIGITAL FIRM, by Kenneth C. Laudon, Jane P. Laudon, Ahmed Elragal (2013) /SAMPLE-MIS.pdf Management Information Systems (8th Edition), by Raymond McLeod, George Schell Essentials of Business Information Systems (7th Edition), byKenneth C. Laudon and Jane P. Laudon, Pearson Prentice Hall Lecture notes: (password: ondina)
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Introduction In every day, we use information generated by an information system (e.g. surfing the web, withdrawing money, asking for an report) Nowadays, computer based system generates lots of information
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What is a system? A group of interrelated components working together towards a common goal, by accepting inputs and producing outputs in an organized transformation process (dynamic system)
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Concepts related to Information Systems (IS)
Data: stream of raw facts representing events (occurring in an organization) on the physical environment before being structured so the people can understand and use them Information: data which is meaningful and useful to human beings Computer based information systems: information systems that rely on computer hardware and software for processing and disseminating information Organization: a formal collection of people and various other resources established to accomplish a set of goals Information is data that have been shaped into a form that is meaningful and useful to human beings. 8
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IS Definition IS collects, stores, and disseminates information from an organization’s environment and internal operations to support organizational functions and decision making, communication, coordination, control, analysis, and visualization. IS provides a solution to a problem or challenge facing a firm and provides real economic value to the business. 9
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Information can be: Resource (input to the production of output)
Asset (contributing to the production of output) Commodity (can be sold)
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Information should be:
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Sources of Information
Personal information sources, which provide information through contact with sales staff, customers, suppliers, distributors, bankers, etc. Impersonal information sources, which range from general publications (e.g., reports on the current situation, bank and official entity reports, specialized journals) to specific studies (e.g., market research, opinion studies, consultants’ reports
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IS Concepts
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Context of IS
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Typical Components of IS
Hardware. Computer hardware, such as processors, monitors, keyboard, and printers, but also sensors, tracking devices etc. Software. These are the programs used to organize, process and analyze data. Databases or related. Information systems work with data, organized into tables/files/repositories. Network. Different elements need to be connected to each other, especially if many different people in an organization use the same information system. Procedures. These describe how specific data are processed and analyzed in order to get the answers for which the information system is designed.
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Functions of IS Data capture and collection Storage
Information processing Distribution or dissemination of information For instance, a hospital will have a medical records system, police departments will hold criminal records, all companies will have a payroll system, supermarkets will use inventory systems, offices will have office automation systems, etc. 16
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IS in the Value Chain Model
The value chain covers all the activities a company undertakes in order to offer a product or service. Value chain activities fall into two main categories: primary and support activities. Primary activities are more closely related to creating value. Support activities allow primary activities to take place by providing the necessary inputs and infrastructure. This tells us that all the value chain activities need support based on the information system. Because all the support activities sustain each other, the information system’s role is to interact with all the company’s activities, The primary activities are shown in the bottom part of figure and include: – Input logistics: the procurement of raw materials and supplies from suppliers. – Operations: the transformation of raw materials into finished products with the appropriate quality, time and cost conditions. – Output logistics: the transport of products to customers. – Marketing: to detect customers’ needs and procure orders. – Service: activities designed to maintain the conditions of use for the sold product. Support activities are presented at the top of figure and include: – Company infrastructure: the organisational framework that impacts all primary activities in a generalised way. These include all managerial activities, such as drawing up strategies, planning and control. – Human resource management: all activities related to the selection, training and motivation of the company’s staff. – Technological development: all activities designed to procure and subsequently manage technologies. – Purchasing: procurement of the elements needed to carry out the production process. 17
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Why IS are so essential in business today?
Business today use IS to achieve 6 major objectives: operational excellence new products, services, and business models customer/supplier intimacy improved decision making competitive advantage day-to-day survival IS have become essential for helping organizations operate in a global economy. All core business processes are digitally enabled. Organizations are trying to become more competitive and efficient by transforming themselves into digital firms where nearly all core business processes and relationships with customers, suppliers, and employees are digitally enabled. A marketing strategy where a service supplier or product retailer gets close to their clients. The benefits of greater customer intimacy for a business might include improved highly tailored problem solving capabilities and greater adaptation of products to customer needs, as well as higher customer loyalty levels. Read more: Although information technology has become more of a commodity, when coupled with complementary changes in organization and management, it can provide the foundation for new products, services, and ways of conducting business that provide firms with a strategic advantage. 18
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Business Processes and their Relationship to IS
A business process is a logically related set of activities that define how specific business tasks are performed. A business can be viewed as a collection of business processes. IS can help organizations achieve greater efficiencies by automating parts of these processes or by helping organizations redesign and streamline them. Business processes are concrete workflows of material, information, and knowledge. They also represent unique ways in which organizations coordinate work, information, and knowledge, and the ways in which management chooses to coordinate work. Managers need to pay attention to business processes because they determine how well the organization can execute its business, and thus be a potential source of strategic success or failure. Although each of the major business functions has its own set of business processes, many other business processes are cross-functional, such as order fulfillment. Firms can become more flexible and efficient by coordinating their business processes closely, and, in some cases, integrating these processes so they are focused on efficient management of resources and customer service. 19
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Let’s consider the process of cooking and the process of software development….
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Clean kitchen does not necessarily produce tasty food, but
The bottom line is… Clean kitchen does not necessarily produce tasty food, but we’d rather eat a so-so tasty food from a clean kitchen. Good processes does not necessarily develop quality software, but we’d rather fly in Airbus with a software from a well-known company than a small software development house. So, there is a need for quality processes, since they decrease the risk of companies producing low quality products.
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Types of IS General vs specialized (e.g. DBMS vs. ERP, GIS)
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Types of IS Transaction processing systems:
Keep track of basic activities and transactions of organization (e.g., sales, receipts, cash deposits, payroll, credit decisions, flow of materials in a factory). Management information systems and decision-support systems: Help with monitoring, controlling, decision making, and administrative activities. Executive support systems: Help address strategic issues and long-term trends, both in firm and in external environment.
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Business Intelligence and Business Intelligence Systems
Data and software tools for organizing and analyzing data Used to help managers and users make improved decisions Business intelligence systems Management information systems Decision support systems Executive support systems 28
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