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Introduction to Management Information Systems

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1 Introduction to Management Information Systems
ITE106: Management Information Systems Thossaporn Thossansin, BS.c, MS.c Introduction to Management Information Systems There are two video cases available for this chapter: Business Information Systems in Your Career Case 1 UPS Global Operations with the DIAD IV Case 2 IBM, Cisco, Google: Global Warming by Computer

2 ITE106: Management Information Systems email:
Lecture: Wednesday 09:00 PM - 11:45 PM Thossaporn Thossansin, Bs.c, Ms.c

3 Course Books ตำราหลัก : Laudon, Kenneth C, Jane Price, Essentials of Management Information Systems, January 2010 (ISBN: ) ตำราประกอบ : Joseph Valacich / Christoph Schneider, Information Systems Today: Managing the Digital World, April 2009 (ISBN: )

4 The grade received in the course will be based on:
Grading The grade received in the course will be based on: Participation/Homework (30%) Mid-Term Exam (30%) Final Exam (40%)

5 Information Concepts: Data, Information, and Knowledge
Data: raw facts Alphanumeric, image, audio, and video Information: collection of facts organized in such a way that they have additional value beyond the value of the facts themselves Value of Information is directly linked to how it helps decision makers achieve their organization’s goals and can be measured in time required to make a decision Increased profits to the company

6 Figure 1.2: The Process of Transforming Data into Information
Data, Information, and Knowledge Figure 1.2: The Process of Transforming Data into Information

7 The Characteristics of Valuable Information
Table 1.2: Characteristics of Valuable Information

8 The Characteristics of Valuable Information (continued)
Table 1.2: Characteristics of Valuable Information (continued)

9 What is an Information System?
Figure 1.3: The Components of any Information System

10 Computer-Based Information Systems
Computer-based information system (CBIS): single set of hardware, software, databases, telecommunications, people, and procedures configured to collect, manipulate, store, and process data into information

11 Computer-Based Information Systems
CBIS components Hardware: computer equipment used to perform input, processing, and output activities Software: computer programs that govern the operation of the computer Database: organized collection of facts and information Telecommunications: electronic transmission of signals for communications Networks: connect computers and equipment in a building, around the country, and around the world

12 Business Information Systems
Most common types of information systems used in business organizations Electronic and mobile commerce systems Transaction processing systems Management information systems Decision support systems Specialized business information systems

13 Electronic and Mobile Commerce
E-commerce: any business transaction executed electronically between parties Companies (B2B) Companies and consumers (B2C) Consumers and other consumers (C2C) Companies and the public sector Consumers and the public sector

14 Transaction Processing Systems
Transaction: business-related exchange Payments to employees Sales to customers Payments to suppliers Transaction processing system (TPS): organized collection of people, procedures, software, databases, and devices used to record completed business transactions

15 Additional Business Information Systems
Management Information Systems (MIS) provide routine information to managers and decision makers Knowledge Management Systems (KMS) create, store, share, and use the organization’s knowledge and experience Artificial intelligence (AI) field in which the computer system takes on the characteristics of human intelligence Decision support system (DSS) used to support problem-specific decision making

16 What is MIS? Information
Data that has been put into a meaningful and useful context. Usually to help make a decision. Management Information System A combination of computers and people that is used to provide information to aid in making decisions and managing a firm. Information Technology (IT)

17 Why is MIS Important? MIS affects all areas of business
Manufacturing Accounting & Finance Human resources Marketing Top management Performance evaluations—expectations

18 What are e-Commerce and e-Business?
Business-to-Consumer (B2C) Selling retail products to consumers Business-to-Business (B2B) Selling at the wholesale level to other businesses E-Business Using Internet technologies to conduct any level of business E-Commerce Intranets Most areas of MIS

19 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

20 Meetings Managers and professionals spend considerable time in meetings. Providing support for teamwork and group decisions is an important issue in MIS.

21 Making Decisions Methodology v. Ad Hoc Decisions Decision Process
Collect Data Identify Problems & Opportunities Make Choices 2 3 1

22 Traditional Management
CEO Condensed reports Commands VP Finance VP Marketing VP Accounting VP HRM VP MIS Analyze data Layers of middle managers Collect data Customers

23 Decentralization Management Team CEO Strategy Corporate Database &
Network VP Fin VP Mrkt VP Acct VP HRM VP MIS Strategy Finance Team Marketing Team Accounting Team HRM Team Sales Team Methodology/Rules Franchise Customers

24 Business Trends Changing business environment Specialization
Management by Methodology and Franchises Mergers Decentralization and Small Business Temporary Workers Internationalization Service-Oriented Business Re-engineering Need for faster responses and flexibility

25 Business Trend Summary
Implications for Technology Specialization Increased demand for technical skills Specialized MIS tools Increased communication Methodology & Franchises Reduction of middle management Increased data sharing Increased analysis by top management Computer support for rules Re-engineering Mergers Four or five big firms dominate most industries Need for communication Strategic ties to customers and suppliers Decentralization & Small Business Communication needs Lower cost of management tasks Low maintenance technology Temporary Workers Managing through rules Finding and evaluating workers Coordination and control Personal advancement through technology Security Internationalization Communication Product design System development and programming Sales and marketing Service Orientation Management jobs are information jobs Customer service requires better information Speed

26 US Employment Patterns

27 International Web Browsers

28 MIS Organization EIS Strategic ERP Mgt. ES DSS Tactical Transaction
Management Transaction Process Control Business Operations

29 Operations, Tactics, Strategy

30 Decision Levels Decision Level Description Example Type of Information
Strategic Competitive advantage, become a market leader. Long-term outlook. New product that will change the industry. External events, rivals, sales, costs quality, trends. Tactical Improving operations without restructuring the company. New tools to cut costs or improve efficiency. Expenses, schedules, sales, models, forecasts. Operations Day-to-day actions to keep the company functioning. Scheduling employees, ordering supplies. Transactions, accounting, human resource management, inventory.

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


33 “Better” Tangible Outputs
IT is used to make the process in producing a tangible output more efficient and more effective Implication Issues whether or not to use IT selecting the proper IT employing correct procedures for the utilization of the IT

34 Intangible Outputs A schematic view - the information/decision level
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

35 The MIS Concept Intangible Outputs (achieving desired objectives)

36 System Concepts What is a system? What is an IS?
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. What is an IS? A set of interrelated components that collect input, process, and output data and information and provide a feedback/control mechanism What is a CBIS? (Computer-Based Information System ) An IS that uses IT. Components: hardware, software, databases, networks, people, procedure

37 System Examples University – an example
Inputs: students, faculty, textbooks Processing mechanisms: teaching, research, service Output: graduates Goal: acquisition of knowledge The Manufacturing System Other example Subsystem, interface, open, adaptive Boundary Feedback

38 A Manufacturing System: Generic Components
Environment Control by Management Feedback Signals Feedback Signals Control Signals Control Signals Input of Raw Materials Manufacturing Process Output of Finished Products System Boundary Other Systems

39 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 Output: reports, rental agreement Feedback: error repots

40 System Classifications and Characteristics
Subsystem System Boundary Interface Open, Adaptive Systems Open Closed Adaptive Nonadaptive

41 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

42 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

43 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

44 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

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

46 History of the Role of IS
Data Processing Management Reporting Decision Support Strategic & End User Electronic Commerce - TPS Information Systems - Ad hoc Reports Computing Exec Info Sys Expert Systems SIS Business & -Internetworked E-Business &

47 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 -

48 The Electronic Business
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

49 Ethical Dimensions of IT
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?

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