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: thossaporn.piu@gmail.com
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
Source:

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?