1. Management Information Systems 1

2. 2 Course Overview & Objective Lecturer: Sieng Samrang, MBA, BSc Contact Info:  Email: Samrang_it@yahoo.com  Mobile Phone: 012 961 828

3. 3 Vital component of successful businesses Helps businesses expand and compete Improves efficiency and effectiveness of business processes Facilitates managerial decision making and workgroup collaboration Why study information systems and information technology?

4. 4 Does an information system have to have a computer? Think of 3 examples of an information system So Why Use a PC? manipulate data much faster than a human. They are cheaper than human labor They do not make mistakes Data can easily be moved or copied How do you know if an information system is effective? Return on Investment (ROI) Why Study Information Systems? No Supermarket's POS, Bank’s ATM, Hotel’s Management System

5. 5 COURSE OBJECTIVE Course Objective: To enable students to understand basic information technology concepts and participate in developing information systems solutions to business problems. To assist students to understand the fundamental concepts of real- world information systems and to demonstrate the potential advantages of state-of-the-art information technology applications in organization. Course synopsis: The foundations of information systems. Information management and its strategic role in organizations. The technical foundations of information systems; elements of information processing and the telecommunication. The contemporary tools, techniques and approaches used to build information systems.

6. 6 Course Outline Chapter 1: An Introduction to Information Systems Chapter 2: Information System in Organization Chapter 3: Hardware: Input, Processing and Output device Chapter 4: Software: System and Application Software Chapter 5: Organizing Data and Information Chapter 6: Telecommunication and Network Chapter 7: E-Commerce Chapter 8: Transaction Processing and Enterprise Resource Planning ( ERP ) System Course Materials: Text book: - Laudon and Laudon. Management Information Systems: Managing the Digital Firm (12th Ed.), Prentice Hall, 2007. Lecture notes: softcopy

7. 7 Assessment Model On-going Assessment 40% Mid-term Exam 20% Final Exam 40% 100%

8. 8

9. Principles of Information Systems, Seventh Edition9 The value of information is directly linked to how it helps decision makers achieve the organization’s goals Discuss why it is important to study and understand information systems Distinguish data from information and describe the characteristics used to evaluate the quality of data

10. Principles of Information Systems, Seventh Edition10 Models, computers, and information systems are constantly making it possible for organizations to improve the way they conduct business Name the components of an information system and describe several system characteristics Identify the basic types of models and explain how they are used

11. Principles of Information Systems, Seventh Edition11 Knowing the potential impact of information systems and having the ability to put this knowledge to work can result in a successful personal career, organizations that reach their goals, and a society with a higher quality of life List the components of a computer-based information system Identify the basic types of business information systems and discuss who uses them, how they are used, and what kinds of benefits they deliver

12. Principles of Information Systems, Seventh Edition12 System users, business managers, and information systems professionals must work together to build a successful information system Identify the major steps of the systems development process and state the goal of each

13. Principles of Information Systems, Seventh Edition13 Information systems must be applied thoughtfully and carefully so that society, business, and industry can reap their enormous benefits Describe some of the threats to security and privacy that information systems and the Internet can pose Discuss the expanding role and benefits of information systems in business and industry

14. Principles of Information Systems, Seventh Edition14 Introduction Information system (IS) A set of interrelated components that collect, manipulate, and disseminate data and information and provide feedback to meet an objective Examples: ATMs, airline reservation systems, course reservation systems, Hotel Management System

15. Principles of Information Systems, Seventh Edition15 Information Concepts: Data Versus Information Data: raw facts Information: collection of facts organized in such a way that they have additional value beyond the facts themselves

16. Data Versus Information 1200100 WestCharles Mann 79154TM Shoes Monthly Sales Report for West Region Sales Rep: Charles Mann Emp No. 79154 Item Qty Sold Price TM Shoes 1200 $100 16

17. Principles of Information Systems, Seventh Edition17 Table 1.1: Types of Data

18. Principles of Information Systems, Seventh Edition18 Figure 1.1: Defining and Organizing Relationships Among Data Creates Information

19. Principles of Information Systems, Seventh Edition19 Figure 1.2: The Process of Transforming Data into Information

20. Principles of Information Systems, Seventh Edition20 Table 1.2: Characteristics of Valuable Data

21. Principles of Information Systems, Seventh Edition21 Table 1.2: Characteristics of Valuable Data (continued)

22. Principles of Information Systems, Seventh Edition22 System and Modeling Concepts System: a set of elements or components that interact to accomplish goals Components of a system Input Processing Output Feedback

23. Principles of Information Systems, Seventh Edition23 Figure 1.3: Components of a System

24. Principles of Information Systems, Seventh Edition24 System Components and Concepts System boundary: defines the system and distinguishes it from everything else (i.e., the environment) Configuration: the way system elements are organized or arranged Systems can be classified as simple or complex, open or closed, stable or dynamic, adaptive or nonadaptive, and permanent or temporary

25. Principles of Information Systems, Seventh Edition25 Table 1.3: Systems Classifications and Their Primary Characteristics

26. Principles of Information Systems, Seventh Edition26 System Performance and Standards Efficiency: a measure of what is produced divided by what is consumed Effectiveness: extent to which system attains its goals System performance standard: a specific objective of a system

27. Principles of Information Systems, Seventh Edition27 System Variables and Parameters System variable: quantity or item controlled by the decision maker System parameter: value or quantity that cannot be controlled (e.g., the cost of a raw material)

28. Principles of Information Systems, Seventh Edition28 Modeling a System Model: an abstraction that is used to represent reality Four major types of models: narrative (based on words); physical (tangible); schematic (graphic representation); mathematical (arithmetic representation)

29. Principles of Information Systems, Seventh Edition29 Figure 1.6: Four Types of Models

30. Principles of Information Systems, Seventh Edition30 Figure 1.7: The Components of an Information System

31. Principles of Information Systems, Seventh Edition31 Input, Processing, Output, Feedback Input: activity of gathering and capturing raw data Processing: converting or transforming data into useful outputs Output: production of useful information, usually in form of documents and reports Feedback: output used to make changes to input or processing activities

32. Principles of Information Systems, Seventh Edition32 Computer-Based Information Systems Computer-based information system (CBIS) A single set of hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information Examples: a company’s payroll systems, order entry system, and inventory control systems

33. Principles of Information Systems, Seventh Edition33 Figure 1.8: The Components of a Computer-Based Information System

34. Principles of Information Systems, Seventh Edition34 Business Information Systems Most common types of information systems used in business organizations include: Electronic and mobile commerce systems Transaction processing systems Management information systems Decision support systems

35. Principles of Information Systems, Seventh Edition35 Electronic and Mobile Commerce E-commerce: any business transaction executed electronically between parties Parties involved include companies (B2B); companies and consumers (B2C); consumers and other consumers (C2C); businesses and the public sector; consumers and the public sector

36. Principles of Information Systems, Seventh Edition36 Transaction Processing Systems and Enterprise Resource Planning Transaction: any business-related exchange, such as payments to employees, sales to customers, and payments to suppliers Transaction processing system (TPS): an organized collection of people, procedures, software, databases, and devices used to record completed business transactions

37. Principles of Information Systems, Seventh Edition37 Figure 1.11: A Payroll Transaction Processing System The inputs (numbers of employee hours worked and pay rates) go through a transformation process to produce outputs (paychecks)

38. Principles of Information Systems, Seventh Edition38 Enterprise Resource Planning Enterprise resource planning (ERP) system: set of integrated programs that can manage a company’s entire set of business operations ERP systems often coordinate planning, inventory control, production, and ordering

39. Principles of Information Systems, Seventh Edition39 Information and Decision Support Systems Management information system (MIS): an organized collection of people, procedures, software, databases, and devices that provides routine information to managers and decision makers Primary focus of an MIS is on operational efficiency

40. Principles of Information Systems, Seventh Edition40 Figure 1.12: Functional Management Information Systems

41. Principles of Information Systems, Seventh Edition41 MIS outputs Scheduled reports Demand reports Exception reports Management Information Systems

42. Principles of Information Systems, Seventh Edition42 Decision Support Systems Decision support system (DSS): an organized collection of people, procedures, software, databases, and devices used to support problem-specific decision making Focus of a DSS is on decision-making effectiveness

43. Principles of Information Systems, Seventh Edition43 Figure 1.13: Essential DSS Elements

44. Principles of Information Systems, Seventh Edition44 Specialized Business Information Systems Artificial intelligence (AI) systems Virtual reality systems Expert systems Other special-purpose business information systems

45. Principles of Information Systems, Seventh Edition45 Figure 1.14: The Major Elements of Artificial Intelligence

46. Principles of Information Systems, Seventh Edition46 Systems Development Systems development: the activity of creating or modifying existing business systems Systems investigation: gaining a clear understanding of the problem to be solved or opportunity to be addressed Systems analysis: defines the problems and opportunities of the existing system

47. Principles of Information Systems, Seventh Edition47 Figure 1.17: An Overview of Systems Development

48. Principles of Information Systems, Seventh Edition48 Systems Development (continued) Systems design: determines how new system will work to meet business needs defined during systems analysis Systems implementation: creating or acquiring the various system components defined in design step, assembling them, and putting new system into operation Systems maintenance and review: check and modify system so that it continues to meet changing business needs

49. Principles of Information Systems, Seventh Edition49 Information Systems in Society, Business, and Industry Information systems must be implemented thoughtfully and carefully Information systems face a variety of threats from unethical people

50. Principles of Information Systems, Seventh Edition50 Figure 1.18: Attacks on Businesses and Other Organizations in One Year

51. Principles of Information Systems, Seventh Edition51 Figure 1.19: The Cost and Cause of Computer Attacks

52. Principles of Information Systems, Seventh Edition52 Computer and Information Systems Literacy Computer literacy: knowledge of computer systems and equipment and the ways they function Information systems literacy: knowledge of how data and information are used

53. Principles of Information Systems, Seventh Edition53 Information Systems in the Functional Areas of Business Finance and accounting (e.g., forecast revenues and business activity; analyze investments; perform audits) Sales and marketing (e.g., product analysis; promotion analysis; price analysis) Manufacturing (e.g., process orders; develop schedules; control inventory)

54. Principles of Information Systems, Seventh Edition54 Information Systems in Industry Airline industry (e.g., Internet auction sites) Investment firms (e.g., analyze stocks and bonds) Banks (e.g., online check payment) Transportation industry (e.g., schedule trucks and trains) Publishing companies (e.g., analyze markets)

55. Principles of Information Systems, Seventh Edition55 Information Systems in Industry (continued) Healthcare organizations (e.g., track patient records) Retail companies (e.g., process customer orders) Power management and utility companies (e.g., monitor and control power generation and usage) Professional services (e.g., provide information on products and services to its consultants)

56. Principles of Information Systems, Seventh Edition56 Summary Data: raw facts Information: collection of facts organized in such a way that they have value beyond the facts themselves System: a set of elements that interact to accomplish a goal Components of a system: input, processing, output, and feedback A model is an abstraction that is used to represent reality

57. Principles of Information Systems, Seventh Edition57 Summary (continued) Computer-based information system (CBIS): a single set of hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information Transaction processing system (TPS): an organized collection of people, procedures, software, databases, and devices used to record completed business transactions

58. Principles of Information Systems, Seventh Edition58 Summary (continued) Management information system (MIS): an organized collection of people, procedures, software, databases, and devices used to provide routine information to managers and decision makers Decision support system (DSS): an organized collection of people, procedures, software, databases, and devices used to support problem-specific decision making Systems development: the activity of creating or modifying existing business systems