1. Chapter 1 Business Information Systems: An Overview
Management Information Systems, 4th Edition

2. Learning Objectives
Explain why information systems are essential to business
Describe how computers process data into useful information for problem solving and decision making
Identify the functions of different types of information systems
Describe how different information systems serve different levels within an organization
Management Information Systems, 4th Edition

3. Learning Objectives (Cont.)
Evaluate how telecommunications and database technology can help implement the goals of information systems
Recognize the role of information technology in e-commerce
List major factors to consider when evaluating information systems and their roles in organizations
Identify major ethical and societal conflicts created by widespread use of information systems
Management Information Systems, 4th Edition

4. Information Systems Why Do People Need Information?
Individuals: Entertainment and enlightenment
Businesses: Decision making and problem solving
Gathering
Storing
Manipulating
Management Information Systems, 4th Edition 2

5. Data, Information, and Systems
Data vs. Information
Data
A “given” or fact: a number, a statement, or a picture
The raw materials in the production of information
Information
Data that have meaning within a context (a specific time & space)
Raw data or data that have been manipulated
Management Information Systems, 4th Edition

6. Data Manipulation Raw data Manipulated Data Time-consuming to read
Difficult to understand
Manipulated Data
Provides useful information
Management Information Systems, 4th Edition

7. Generating Information
Raw data are processed in an IS to create final useful information
Process: Manipulation of data
Computer-based ISs: process data to produce information
Management Information Systems, 4th Edition

8. Information: Important Resource
Information must be useful
Relevant
Complete
Accurate
Current
Cost effective in business
Management Information Systems, 4th Edition

9. What Is a System?
System: A set of components that work together to achieve a common goal
Subsystem: One part of a system where the products of more than one system are combined to reach an ultimate goal
Closed system: Stand-alone system that has no contact with other systems; no flow-ins or flow-outs
Open system: System that interfaces with other systems
Management Information Systems, 4th Edition

10. Systems and Subsystems
Management Information Systems, 4th Edition

11. Information and Managers
Systems thinking:
Viewing organization in terms of suborganizations or subsystems – decomposition
A framework for problem solving and decision making—conquering
Managers focus on overall goals and operations of business—synthesizing
Management Information Systems, 4th Edition

12. Information and Managers (Cont.)
Systems thinking (Cont.)
Information Map: data and information flow within an organization
(工欲善其事)
(key corporate resources: M.I.T.)
Information Technology: all technologies that facilitate construction and maintenance of information systems
(必先利其器)
Management Information Systems, 4th Edition

13. The Benefits of Human-Computer Synergy
Prerequisites?
Synergy: combined resources produce output exceeding the sum of the outputs of the same resources employed separately
Translates human thought into efficient processing of large amounts of data
Management Information Systems, 4th Edition

14. Trends of information systems
Power of computers increasing; prices dropping
Increasing p/p (performance/price) ratio
Increase in programming variety and ingenuity
Internet access faster and more reliable
Internet growth resulting in opportunities
Increasing ratio of computer-literate workforce
Management Information Systems, 4th Edition

15. Components of an Information System
Management Information Systems, 4th Edition

16. 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 (for the 1st or 2nd order feedback loop)
Management Information Systems, 4th Edition

17. Computer Equipment for Information System
Input devices: introduce data into the IS
Processor: manipulates data through the IS
Output devices: display information
Storage devices: store data and information
Management Information Systems, 4th Edition

18. Input-process-output-storage devices
Management Information Systems, 4th Edition

19. ISs: From Recording Transactions to Providing Expertise
Transaction Processing Systems (TPS)
Record data and perform basic processing
Cash registers and ATMs
Management Information Systems (MIS)
Recorded transactions and other data produce information for problem solving and decision making
Customer purchasing power analysis
Management Information Systems, 4th Edition

20. Types of MISs Decision Support Systems (DSS)
Contain models, or formulas, that manipulate data into information
Often answer “what if?” questions,
Scenario simulation
Group Decision Support Systems (GDSS)
Generate ideas, establish priorities, and reach decisions in group environment
A case of Delphi method
Management Information Systems, 4th Edition

21. Types of MISs (Cont.) Executive Information Systems (EIS)
Can gather information from vast amounts of data for high-level executives
Highly useful in control and planning
Summarized report with highlights
Expert Systems (ES)
Programmed with human expertise
Can help solve problems of unstructured nature
Multiple criteria planning & the heuristic method (with the 2nd order feedback loop)
Management Information Systems, 4th Edition

22. Types of MISs (Cont.) Geographic Information Systems (GIS)
Represents local conditions or features
Allows planning, decision-making, and monitoring of local conditions or activities
On-demand Output
Managers can obtain reports tailored to their needs at any time, or even anywhere
Management Information Systems, 4th Edition

23. 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, 4th Edition

24. ISs in Functional Business Areas (Cont.)
Marketing
Analyze demand for various products in different regions and population groups
Human Resources
Help with record keeping and employee evaluation, training, and dispatching
Management Information Systems, 4th Edition

25. ISs in Different Business Sectors
Manufacturing
Allocate resources such as personnel, raw material, and time
Control inventory, process customer orders, prepare production schedules, perform quality assurance, and prepare shipping documents
Management Information Systems, 4th Edition

26. ISs in Different Business Sectors (Cont.)
Service
ISs are often the backbone of service organizations
E.g., quick response, FAQs, complain trace, etc.
Retail
Some retail stores (e.g., Wal-Mart, Sears) are now linked to communication networks by satellite
Management can determine which items move quickly and which do not
Returns arrangement
Management Information Systems, 4th Edition

27. ISs in Different Business Sectors (Cont.)
New Businesses
ISs have made new products and services possible, such as credit reports and shipment tracking
Interactive new product designing activities across multiple divisions
Government
Tax authorities, national insurance and welfare agencies, defense departments, economic organizations, immigration authorities
β-version prototyping
Management Information Systems, 4th Edition

28. Shared Data Resources
Effective way to operate: different systems share data from the same pool
Company’s database: one of the most powerful resources, a corporate asset
Categorized and structured data can be manipulated to produce useful information
Management Information Systems, 4th Edition

29. Shared Data Resources (Cont.)
Management Information Systems, 4th Edition

30. E-Commerce
Business-to-business and business-to- consumer transactions done electronically via networks
Database management online makes information cheaper to distribute
E-commerce is now synonymous with “doing business on the Internet”
Management Information Systems, 4th Edition

31. Why Study IS? Knowledge Workers Degrees in IS
Employers seek computer-literate professionals who know how to use information technology
Degrees in IS
Computer Science and Management Information Systems
Information Systems Careers
Systems analyst, specialist in enterprise resource planning (ERP), database administrator, telecommunications specialist, consulting, etc.
Management Information Systems, 4th Edition

32. Ethical and Societal Issues The Not-So-Bright Side
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
Management Information Systems, 4th Edition

33. Ethical and Societal Issues The Not-So-Bright Side
Freedom of Speech
Opportunities increase for pornography, hate speech, intellectual property crime, and other intrusions
Prevention may abridge free speech
Management Information Systems, 4th Edition

34. Ethical and Societal Issues The Not-So-Bright Side
IT Professionalism
No mandatory or enforced code of ethics for IT professionals--unlike other professions
Social Inequality
Less than 20% of the world’s population have ever used a PC; less than 3% have Internet access
Increasing gap or not?
Management Information Systems, 4th Edition

35. Summary Information Systems are essential to business
Data is processed into useful information for problem solving and decision making
Information systems provide information for different levels within an organization
There are major factors to consider when evaluating information systems
Management Information Systems, 4th Edition