1. Business Management Information System
Lecture 1

2. Professor Dr. Sajjad Mohsin
Ph.D.
Division of Production, Information and Systems Engineering, Muroran Institute of Technology, Hokkaido. JAPAN
M.E.
Dept. of Computer Science and Systems Engineering, Muroran Institute of Technology, JAPAN
M.Sc. Computer Science
Department of Computer Science, Quaid-i-Azam University Islamabad, Pakistan

3. Experience
Professor & Dean FIST, COMSATS Institute of Information Technology Islamabad Pakistan, April 2011 to date
Dean FIST & Chairman CS (Associate Professor)COMSATS Institute of Information Technology Islamabad Pakistan, Nov 2010 to August 2011
Chairman & Head (Associate Professor) Department of Computer Science, COMSATS Institute of Information Technology Islamabad Pakistan, July 2009 to Nov 2010.

4. Experience
Head (Associate Professor), Department of Computer Science, COMSATS Institute of Information Technology Islamabad Pakistan, January 2008 to July 2009
Associate Professor, COMSATS Institute of Information Technology Abbottabad Campus, Pakistan, April 2005-January 2008
Research Assistant with Prof. Yukinori Suzuki, MIT Japan, 2004 to 2005
Research Project: A study on Telecommunication Network Modeling.

5. Experience
Research Assistant with Prof. Yukinori Suzuki, MIT Japan. Research,
Project: A study on Congestion Control of Telecommunication Network.
Teaching Assistant with Dr. Yasushi Honda, MIT Japan. Oct 2002, to Feb 2003
Subject: Information Engineering Basic Practice B.
Researcher with Prof. Yukinori Suzuki at the MIT Japan, Oct 1998 to March 2000.

6. Experience
Systems Analyst, Central Telecom Research Laboratories (CTRL),PakistanTelecommunication Corporation Ltd. (PTCL), Islamabad. Pakistan, July 1992 – Sep. 2003
Systems Analyst, National Institute of Electronics (NIE), Islamabad. Pakistan, Jun – Jul. 1992

7. Grants
2007 – Present
Higher Education Commission, Pakistan approved & funded research project "High Performance Image Processing using Genetic Algorithms on Auto-Load Balancing Symmetric Multi-Processing Platform" worth more than (Pakistan Rs.) 0.6 million
2011 – 2013
National ICT R&D Fund approved and funded the research project titled “3D Graphical Imagery Therapy for Healing Brain Tumors in Children” worth more than 11 million PKR.

8. HONORS Distinguish Professor of COMSATS
Member Editorial Board of the “IEEE Transaction of The Fuzzy Systems” Journal
Member Editorial Board of the World Information Technology Journal
Member Editorial Board of the Information Technology Journal
Approved PhD Supervisor of Higher Education Commission for Pakistan
Member Australian Computer Society

9. Honors
Awarded Japanese Government, Ministry of Education Scholarship for Ph.D. April March 2005
Awarded Japanese Government, Ministry of Education Scholarship for M.E. April 2000 –March 2002
Awarded Japanese Government, Ministry of Education Scholarship as Research Student. Oct March 2000.
Awarded Merit Scholarship by the Quaid-i-Azam University Islamabad for M.Sc. Jan – Dec. 1986

10. Course Theme The importance of Information System Management
Leadership Issues (The Top is Job)
Strategic Uses of information Technology
Information System Planning
Distributed Systems The Overall Architecture
Managing Telecommunications
Managing Information Resources
Managing Operations

11. Course Theme Technologies for Developing Systems
Management Issues in System Development
Supporting Decision Making
Supporting Collaboration
Supporting knowledge Work
The Challenges Ahead

12. Introduction
Information Technology (IT) -computers and telecommunications - is having the kind of revolutionary, restructuring impact that has been expected and promised for years
Rapid advances in speed and capacity + pervasiveness of Internet, wireless, portable devices etc. = making major changes in the way we live and work
‘Go Back’ – 5, 10, 15 years

13. Introduction cont…..
Due to the growth and pervasiveness of IT, organizations are operating in a different environment from just a few years ago
Themes this unit emphasizes:
Globalization
The world seems to be getting smaller
Backlash – local needs Vs. ‘standard’
Jobs to stay ‘local’
IS executives need ‘balancing act’
E-enablement
Internet has become a hub for conducting business
Interconnectivity plus!
Knowledge Sharing and Knowledge Management
Between people
Out of people’s heads and into ‘lasting’ things e.g. systems, policies and procedures etc.

14. Introduction cont……. Management of Information Systems 3 Major Trends
Governance of IT = a collaborative effort from IS executives and all other members of Senior Management
Role of IS is shifting from application delivery to system integration and infrastructure development
Outsourcing – total / selective
Developing and managing contracts and relationships

15. Introduction cont.
Historically, managing IT has been the job of ‘technical managers’
NOW = increasingly becoming an important part of the responsibilities of:
Senior executives
Line managers
Employees at all levels of an organization

16. The ‘Key’ (What’s it all about?)
Technology is configured into systems that help manage information to improve organizational performance

17. What is Information?
Information is created by defining and organizing relationships among data.
Defining different relationships results in different information.
Example: Different Designs of wood depicting different shapes of information!

18. What is Information? cont…
All individuals, companies and, in general, all organizations are continuously capturing data, many of which are of no significance to them at all. However, other data are available that would afford them a better understanding of their own environment and of themselves. These data – what we know as information – enable them to make more accurate decisions. For this reason, the right amount of information at the right time is a key factor for every organization.

19. Company managers take decisions, prepare plans and control their company’s activities using information that they can obtain either from formal sources or through informal channels such as face-to-face conversations, telephone calls, social contacts, etc.
Managers are challenged by an increasingly complex and uncertain environment. In these circumstances, managers should theoretically be able to define and obtain the type of information they require. However, this is not what happens in practice; rather, the way managers perform their work depends on the available information that they have access to. Most decisions are therefore made in the absence of absolute knowledge, either because the information is not available or because access to it would be very costly.

20. Although the terms data and information are sometimes used indiscriminately, they do have different meanings. Data are non-random symbols that represent the values of attributes or events. Hence, data are facts, events and transactions stored according to an agreed code. Data are facts obtained through reading, observation, calculation, measurement, etc. The amounts and other details on an organization's invoices, cheques or pay slips, etc, are referred to as data, for example. Data are obtained automatically, the result of a routine procedure such as invoicing or measurement processes.

21. Information is a set of data transformed in such a way that it helps to reduce future uncertainty and, therefore, contributes to the decision-making process. Information is data transformed in a way that makes sense to the person who receives it; in other words, it has a real or perceived value for that person when he or she acts or takes decisions. Information, moreover, is data that have been interpreted and understood by the recipient of the message. The relationship between data and information is similar to that of raw materials and the finished product. Information will be meaningful insofar as it provides useful raw material for taking a specific decision.

22. Characteristics of a Valuable information
Good information provides value.
Information should posses following characteristics,
Accurate
Complete
Economical
Flexible
Reliable
Relevant

23. Cont….. Simple Timely Verifiable Accessible Secure Punctuality
Comprehension

24. Accurate
Information must be sufficiently accurate for managers’ purposes. No information is totally accurate, and spending more on information in pursuit of greater accuracy does not always result in more valuable information.
The degree of accuracy should be coherent with the importance of the decision to be taken and will vary according to the decision-maker’s level in the hierarchy. The degree of information accuracy required will depend on the hierarchical level in question.

25. Complete
In an ideal world, all the information required to take a decision would be available; however in reality this is not possible. Information is considered to be completed if it informs us on the key points of the problem we are analyzing.

26. Economical
All the information required to take a decision would be available; however in reality this is not possible. Information is considered to be economical if it informs us on the key points of the problem we are analyzing.

27. Flexible
Ideal world requires that, all the information to take a decision would be flexible; however in reality this is not possible. Information is considered to be flexible if it informs us on the key points of the problem we are analyzing.

28. Reliable
All the provided information should be reliable with respect to the other information. In reality some type of reliability about the information is gained.

29. Relevant
All the provided information must be relevant to the system information and provide relevancy, to perform in the better way. Must be relevant to the given management information system.

30. Simple
Good information must be simple in all the aspect and should provide simple terms and the conditions about the management information system.

31. Timely
All the information required to take a decision would be timely manage; however in reality this is not possible. Information is considered to be Timely if it informs us on the key points of the problem we are analyzing.

32. Verifiable
All the information required to take a decision would be verified; however in reality this is not possible. Information is considered to be verifiable if it informs us on the key points of the problem we are analyzing.

33. Accessible
All the information required to take a decision would be accessible to all the users ; however in reality this is not possible. Information is considered to be accessible if it informs us on the key points of the problem we are analyzing.

34. Secure
All the information required to take a decision would be secured to all the users ; however in reality this is not possible. Information is considered to be secured if it informs us on the key points of the problem we are analyzing.

35. Punctuality
Good information is that which is delivered just when it is needed. To a certain extent, the need to obtain information quickly can jeopardize its accuracy, although today’s data processing methods can produce accurate information very rapidly.
Vital information for the company may become worthless if it takes too long to obtain, or delays occur in processing and communicating the information.
Although the punctuality of regularly produced information is important, how often information is produced should be related to the type of decision or activity it is required for.
Often, companies routinely produce reports at fairly arbitrary intervals (daily, weekly or monthly) following traditions or calendar conventions without taking into account the time cycle of the activity involved.

36. Comprehension
Comprehension is what transforms data into information. If the information is not understood it cannot be used and therefore it cannot add value.
Many factors intervene in understanding information.

37. Cont…
Comprehension is the result of memory in association with the received message. Environmental factors.
Group pressure, available time and trust in the information system all influence comprehension.
Language. Information is codified in signs or messages.

38. Previous knowledge. Comprehension is the result of memory in association with the received message.

39. What is an Information System?
A set of interrelated elements or components that collect (input), manipulate and store (process), disseminate (output) data and information, and provide a feedback mechanism to meet an objective.
Computer based information system Composed of hardware, software, data, telecommunications, people, and procedures to collect, manipulate, store, and process data into information

40. Why Need an Information System?
Here are some reasons for the need of an information system,
Global Competition for Market and for Labor
Need for Real-time Operations
Managing Work Force
Customer-Oriented Operations
Technological Innovation and Obsolescence
Information Overload
Social Responsibility of Organizations
Government Regulation and Deregulation
Organizational Responses to Business Pressures in the Information Age

41. Components of Information System as Defined by
Turban, McLean, Wetherbe (1996)

42. Henry C. Lucas (1997)
Information systems may be described by five of their key components:
Decisions
transactions and processing
information and its flow
individuals or functions involved
communications and coordination

43. Where is the difference?
Outcome of different definitions depicts
Trend and technological effects at that time
Information system definition evolved with respect to time.
People worked on data processing until they realized the need of information systems.

44. Information Systems Today
The early focus on IS was for the support of operations, management, analysis and decision-making in organizations.

45. Social Media Information System Today

46. Terminology
In many textbooks and contexts, the terms Management Information Systems (or MIS) and Information Systems (IS) are used interchangeably.
However, in other contexts, Management Information Systems are considered as a subset of the more general Information Systems.
MIS are considered to be information systems which provides information specifically for managing an organization generally at a tactical or middle management level. Information Systems would be a more general term that can include other systems (e.g. group communication systems). We will generally follow this convention.

47. Types of Information Systems
Transaction Processing Systems (TPS).
Management Information Systems (MIS).
Decision Support Systems (DSS).
Expert Systems (ES).
Executive Information Systems (EIS).
Office Automation Systems (including document management systems).
GroupWare, Computer-Supported Cooperative Work (CSCW), and other communication systems.
and much more ….

48. Types of Information Systems

49. Transaction Processing Systems (TPS)
It is an information system designed to process day-to-day business event data at the operational level of the organization.
A transaction is an elementary activity conducted during business operations (e.g. merchandise sale).
Support the monitoring, collection, storage, processing, and dissemination of the organization’s basic business transactions.
Provides backbone for many other applications involving other support systems.

51. TPS Data Entry Screen

52. Types of Transaction Processing Systems
Batch processing
Batch processing is a form of transaction processing.
Batch processing involves processing several transactions at the same time, and the results of each transaction are not immediately available when the transaction is being entered; there is a time delay.
Online transaction processing is the form of transaction processing that processes data as it becomes available.

53. Management Information Systems
A management information system (MIS) provides information that is needed to manage organizations efficiently and effectively.
Management information systems involve three primary resources:
people,
technology, and
information or decision making.

54. Management Information System
Management information systems are distinct from other information systems in that they are used to analyze operational activities in the organization.
Different applications of MIS are, Human Resource Management System, Financial Management System etc.

55. Financial Management Software Example

56. HR Management Software Example

57. Decision Support System
A decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities.
DSSs serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in advance.

58. Decision Support Systems
DSS include knowledge-based systems.
Knowledge base is the set of rules that group together to build knowledge.
Fundamental components of DSS model are,
The database (or Knowledge base)
the model (i.e., the decision context and user criteria), and
The user interface
The users themselves are also important components of the architecture.

59. Decision Support System

60. Expert System
An expert system is a computer system that emulates the decision-making ability of a human expert.
Expert systems are designed to facilitate tasks in the fields of accounting, medicine, process control, financial service, production, human resources, among others.

61. Executive Information System
They are intended to facilitate and support the information and decision-making needs of senior executives by providing easy access to both internal and external information relevant to meeting the strategic goals of the organization.
It is commonly considered as a specialized form of decision support system (DSS)

62. Office Automation System
Office automation systems helps in optimizing or automating existing office procedures.
Office workflows of information and other documentation procedures are automated using office automation system.

63. Groupware information systems
Collaborative software (or groupware) is a type of information system, designed to help people involved in a common task achieve goals.
One of the earliest definitions of “collaborative software” is, "intentional group processes plus software to support them."

65. Information Systems vs. Computer Science
Computer Science has its concentration in the study of algorithms, computation, software, and data structures.
Information Systems is an extension of management and organization theory that applies technical capabilities and solutions initially developed by computer science, to tasks in organizations.
For example, web development using HTML, XML, scripting may be a computer scientist job, but integrating all these to develop business portal is an Information Systems job.

66. Information Technology
Information Technology (IT) sometimes refers to the technology component of an information system.
However, the concept is often used by many to describe the collection of all information systems in organization.

67. Putting Things in Context
Information Technology - the hardware, software, and networks that make Information Systems possible.
Information System - a system that uses information technology to capture, transmit, store, retrieve, manipulate, and display information.
Business process - a related group of steps or activities that use people, information, and other resources, to create value for internal or external customers.

68. Putting Things in Context
Firm (or organization) - consists of a large number of interdependent business processes that work together to generate products of services in a business environment.
Business environment - includes the firm and everything else that affects its success, such as competitors, suppliers, customers, regulatory agencies, and demographic, social, and economic conditions.

70. What goes wrong?

71. Capabilities of Information Systems
Provide Fast and Accurate Transaction
Provide Large Capacity, Fast Access Storage
Provide Fast Communications (machine to machine, human to human)
Reduce Information Overload
Span Boundaries
Provide Support for Decision Making
Provide a Competitive Weapon
General Technological Trends for IT

72. Summary What is information? System components and concepts
Characteristics of information
Management Information System
Groupware information systems