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Management Information Systems Management Information Systems

Chapter 1: Information Systems in Global Business Today Chapter 1: Information Systems in Global Business Today
IT and IS
• What is Information Technology?
– Any form of technology used by people to handle
Managing Information Systems information.
• What are Information Systems?
– Integrated components processing, storing
information in an organisation.
– Interdisciplinary study of systems that provide
information to users in organisations.
1.1 1.3

Information Systems Information and Data
• Information
• Information Systems are becoming the
– Clusters of facts meaningful and useful to human
foundation of business models and processes
beings in processes such as making decisions
• They allow for the distribution of knowledge
• Data
– Streams of raw facts representing events such as
business transactions – meaningless without
structure
1.2 1.4
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Approaches to IS
Experiences of IT and IS TECHNICAL APPROACHES
• Examples of IT
COMPUTER
OPERATIONS
SCIENCE
– Hardware (PC, UNIX server) RESEARCH
– Software (e-mail, Internet, Windows, Word)

MANAGEMENT
SCIENCE
– Consumer devices (mobiles, train times) MIS

• Examples of IS SOCIOLOGY
– File systems, databases, e-mail servers / clients PSYCHOLOGY POLITICAL

– e-commerce SCIENCE
– SAP Systems, Applications and Products,

BEHAVIORAL APPROACHES
1.5 student records 1.7

Management Information Systems Why is IS Important?

• MIS • For an organisation to survive and grow
– The study of information systems focusing on their – More locations (networking, Internet)
use in business and management. – New products and services
• Approaches – Improve jobs and work flows:
– Technical • Efficiency
– Behavioural • Cost
• Ethical and social issues
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Why is IS Important? Changes to Society

• Change of employment profiles:
• Worldwide changes: – Less farming
– Global economy – Less ‘blue collar’ – manufacturing
– Knowledge- or information-based society – Increased service
– Business enterprise – Increased ‘white collar’ – office-based
– Digital firm • 55% of work force are in knowledge- or
information-based activities
• Shift of manufacture to low-wage countries
1.9 1.11

Global Economy Business Enterprise

• Growing percentage of economy relies upon
• Change from hierarchical organisations
import and export
• Relies on instant information
• Need to operate globally
• Flexibility with customer focus, with
• IS can provide global trading infrastructure
increasing importance
1.10 1.12
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Digital Firm Course Content

• An organisation where: • www.shoaibfarooq.blogspot.com/p/manageme
– Nearly all relationships with customers, suppliers nt-information-system-mis.html
and employees is digital
– Business processes accomplished through digital
networks
• Flexible
• Dependent upon on IT
1.13 1.15

Course Objectives Visiting Hours

• Provide an understanding of 11:00 AM – 1:00 PM ( Tuesday )
– IS and underlying IT
– Impact on organisations of IS
or by appointment
– Implementation and management of IS
– IS and global organisations sshoaibfarooq2@yahoo.com
• Provide awareness of IS in your role as a
professional
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1.1 THE ROLE OF INFORMATION SYSTEMS IN BUSINESS TODAY

How Information Systems are Transforming Business
The Emerging Digital Firm

Business processes:
• Manner in which work is
organized, coordinated, and
focused to produce a valuable
product or service
• Concrete work flows of material,
Information Technology Capital Investment information, and knowledge—
sets of activities
• Unique ways to coordinate work,
information, and knowledge
• Ways in which management
chooses to coordinate work
Source: Based on the data in U.S. Department of
Commerce, Bureau of Economic Analysis, National
Income and Product Accounts, 2006.
1.17 Figure 1-1 1.19 Figure 1-0


1.1 THE ROLE OF INFORMATION SYSTEMS IN BUSINESS TODAY How Information Systems are Transforming Business
How Information Systems are Transforming Business Strategic business objectives of information systems
• Globalization Opportunities  Operational Excellence: example – Wal-Mart
• The Emerging Digital Firm  New Products, Services, and Business Models: eBay has developed
• Strategic business objectives of information systems the largest auction trading platform for millions of individuals and
Globalization Opportunities: businesses. Competitors have not been able to imitate its success.
• Management and control in a global marketplace Other Examples – Apple Inc.’s iPod, Netflix’ DVD titles
• Competition in world markets  Competitive Advantage: IT makes it possible to develop competitive
• Global workgroups ● Global delivery systems advantages. Dell Computer has built its competitive advantage on
Emergence of the Digital Firm: an IT enabled build-to-order business model that other firms have
not been able to imitate.
• Digitally enabled relationships with customers, suppliers, & employees
• Core business processes accomplished using digital networks  Survival: Example – Automatic Teller Machines (ATM)
• Digital management of key corporate assets
• Sensing and responding to environmental changes
• Seamless flow of information within the firm, and with strategic
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Technology perspective
1.2 PERSPECTIVES ON INFORMATION SYSTEMS What Is an Information System?
What Is an Information System? Functions of an Information System

Technology perspective: A set of interrelated components
that collect (or retrieve), process, store, and distribute
information to support decision making and control in an
organization
• Data: Streams of raw facts representing events such as
business transactions
• Information: Clusters of facts meaningful and useful to
human beings in the processes such as making decisions
1.21 1.23 Figure 1-4

Technology perspective 1.2 PERSPECTIVES ON INFORMATION SYSTEMS
What Is an Information System? Technology perspective
Data and Information Dimensions of Information Systems

• Information systems literacy: Broad-based understanding
of information systems that includes behavioral knowledge
about organizations, management and individuals using
information systems as well as technical knowledge about
computers
• Computer literacy: Knowledge about information
technology, focusing on understanding how computer
technologies work
Three Important Dimensions of Information Systems
• Organizations
• Managers
• Technology
1.22 Figure 1-3 1.24
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Technology perspective Technology perspective
Dimensions of Information Systems Dimensions of Information Systems
Information Systems Are More than Computers Level in a Firm

1. Strategic-level systems:
help senior management
tackle and address strategic
You will need to issues
understand and 2. Management-level systems:
balance these serve the monitoring,
dimensions of controlling, decision-
information systems making, and administrative
activities
in order to create
business value. 3. Operational-level systems:
support operational
managers, keeping track of
the elementary activities
and transactions
1.25 Figure 1-5 1.27 Figure 1-6

The Organizational Dimension of Information Systems
The Technology Dimension of Information Systems
• People
• Structure Information technology is one of the tools managers use to
• Business processes cope with change:
 Sales and marketing • Computer Hardware: Physical equipment
 Manufacturing and Production • Computer Software: Detailed preprogrammed instructions
 Finance and Accounting
• Data management technology: Physical media for storing data
 Human resources
and the software
• Culture
• Politics • Communications technology: Transfers data from one physical
location to another
The Management Dimension of Information Systems
• Networks: Links computers to share data or resources
Managers are: Managers need to know enough about information
• Sense makers ● Decision makers
technology to make intelligent decisions about how to use it
• Planners ● Innovators of new processes
for creating business value.
• Leaders: set agendas
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1.2 PERSPECTIVES ON INFORMATION SYSTEMS 1.2 PERSPECTIVES ON INFORMATION SYSTEMS
A Business Perspective on Information Systems Complementary Assets and Organizational Capital

Information systems are more than just technology. Complementary assets:
Businesses invest in IS in order to create value and increase • New business processes
profitability. • Management behavior
• Information systems are an organizational and • Organizational culture
management solution to business challenges that arise • Training
from the business environment. Organizational and Management capital:
• Based on information technology but also require • Supportive business culture that values efficiency and
significant investment in organizational and management effectiveness
changes and innovations • Efficient business processes, decentralization of authority
• IS create value primarily by changing business processes • Highly distributed decision rights
and management decision making. • A strong information system (IS) development team
1.29 1.31

1.2 PERSPECTIVES ON INFORMATION SYSTEMS 1.3 CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS
The Business Information Value Chain Technical

Approaches
Computer Operations
Science Research
Management Sociology
Science
Psychology Economics
Behavioral
Approaches
1.30 Figure 1-7 1.32

Figure 1-9
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Management Information Systems

Chapter 1: Information Systems in Global Business Today
1.3 CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS
A technical Perspective on Information Systems
Optimize systems
performance:
• Technology and
organization
• Organizations mutually
adjust to one another until
fit is satisfactory
Figure 1-10
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IT and IS
1.1 1.3

• Information
• Data
structure
1.2 1.4
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Approaches to IS
• Examples of IT
COMPUTER
OPERATIONS
SCIENCE

MANAGEMENT
SCIENCE





1.6 1.8
2
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1.9 1.11


import and export
1.10 1.12
3
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networks
• Flexible
1.13 1.15


or by appointment
professional
1.14 1.16
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Business processes:
product or service
sets of activities
1.17 Figure 1-1 1.19 Figure 1-0


1.18partners 1.20
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organization
1.21 1.23 Figure 1-4


computers
technologies work
• Organizations
• Managers
• Technology
1.22 Figure 1-3 1.24
6
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activities
in order to create
support operational
and transactions
1.25 Figure 1-5 1.27 Figure 1-6

• People
 Human resources
and the software
• Culture
location to another
1.26 1.28
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1.29 1.31


Approaches
Computer Operations
Science Research
Science
Behavioral
Approaches
1.30 Figure 1-7 1.32

Figure 1-9
8
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Optimize systems
performance:
• Technology and
organization
fit is satisfactory
Figure 1-10
1.33
9
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IT and IS
1.1 1.3

• Information
• Data
structure
1.2 1.4
1
10/16/2017

Approaches to IS
• Examples of IT
COMPUTER
OPERATIONS
SCIENCE

MANAGEMENT
SCIENCE





1.6 1.8
2
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1.9 1.11


import and export
1.10 1.12
3
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networks
• Flexible
1.13 1.15


or by appointment
professional
1.14 1.16
4
10/16/2017



Business processes:
product or service
sets of activities
1.17 Figure 1-1 1.19 Figure 1-0


1.18partners 1.20
5
10/16/2017


organization
1.21 1.23 Figure 1-4


computers
technologies work
• Organizations
• Managers
• Technology
1.22 Figure 1-3 1.24
6
10/16/2017


activities
in order to create
support operational
and transactions
1.25 Figure 1-5 1.27 Figure 1-6

• People
 Human resources
and the software
• Culture
location to another
1.26 1.28
7
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1.29 1.31


Approaches
Computer Operations
Science Research
Science
Behavioral
Approaches
1.30 Figure 1-7 1.32

Figure 1-9
8
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Optimize systems
performance:
• Technology and
organization
fit is satisfactory
Figure 1-10
1.33
9
10/16/2017

IT and IS
1.1 1.3

• Information
• Data
structure
1.2 1.4
1
10/16/2017

Approaches to IS
• Examples of IT
COMPUTER
OPERATIONS
SCIENCE

MANAGEMENT
SCIENCE





1.6 1.8
2
10/16/2017


1.9 1.11


import and export
1.10 1.12
3
10/16/2017


networks
• Flexible
1.13 1.15


or by appointment
professional
1.14 1.16
4
10/16/2017



Business processes:
product or service
sets of activities
1.17 Figure 1-1 1.19 Figure 1-0


1.18partners 1.20
5
10/16/2017


organization
1.21 1.23 Figure 1-4


computers
technologies work
• Organizations
• Managers
• Technology
1.22 Figure 1-3 1.24
6
10/16/2017


activities
in order to create
support operational
and transactions
1.25 Figure 1-5 1.27 Figure 1-6

• People
 Human resources
and the software
• Culture
location to another
1.26 1.28
7
10/16/2017


1.29 1.31


Approaches
Computer Operations
Science Research
Science
Behavioral
Approaches
1.30 Figure 1-7 1.32

Figure 1-9
8
10/16/2017

Optimize systems
performance:
• Technology and
organization
fit is satisfactory
Figure 1-10
1.33

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10/16/2017

Management Information Systems Management Information Systems

Management Information Systems Management Information Systems

Information Systems Information and Data

Management Information Systems Management Information Systems

– Hardware (PC, UNIX server) RESEARCH

– Software (e-mail, Internet, Windows, Word)

– Consumer devices (mobiles, train times) MIS

– File systems, databases, e-mail servers / clients PSYCHOLOGY POLITICAL

– SAP Systems, Applications and Products,

Management Information Systems Management Information Systems

Management Information Systems Why is IS Important?

Management Information Systems Management Information Systems

Why is IS Important? Changes to Society

Management Information Systems Management Information Systems

Global Economy Business Enterprise

Management Information Systems Management Information Systems

Digital Firm Course Content

Management Information Systems Management Information Systems

Course Objectives Visiting Hours

Management Information Systems Management Information Systems

1.1 THE ROLE OF INFORMATION SYSTEMS IN BUSINESS TODAY

The Emerging Digital Firm

1.17 Figure 1-1 1.19 Figure 1-0

Management Information Systems Management Information Systems

1.1 THE ROLE OF INFORMATION SYSTEMS IN BUSINESS TODAY

Management Information Systems Management Information Systems

What Is an Information System? Functions of an Information System

1.21 1.23 Figure 1-4

Management Information Systems Management Information Systems

Data and Information Dimensions of Information Systems

Management Information Systems Management Information Systems

Information Systems Are More than Computers Level in a Firm

1.25 Figure 1-5 1.27 Figure 1-6

Management Information Systems Management Information Systems

Management Information Systems Management Information Systems

1.2 PERSPECTIVES ON INFORMATION SYSTEMS 1.2 PERSPECTIVES ON INFORMATION SYSTEMS

A Business Perspective on Information Systems Complementary Assets and Organizational Capital

Management Information Systems Management Information Systems

1.2 PERSPECTIVES ON INFORMATION SYSTEMS 1.3 CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS

The Business Information Value Chain Technical

1.30 Figure 1-7 1.32

Management Information Systems

1.3 CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS

A technical Perspective on Information Systems

Management Information Systems Management Information Systems

Management Information Systems Management Information Systems

Information Systems Information and Data

Management Information Systems Management Information Systems

– Hardware (PC, UNIX server) RESEARCH

– Software (e-mail, Internet, Windows, Word)

– Consumer devices (mobiles, train times) MIS

– File systems, databases, e-mail servers / clients PSYCHOLOGY POLITICAL

– SAP Systems, Applications and Products,

Management Information Systems Management Information Systems

Management Information Systems Why is IS Important?

Management Information Systems Management Information Systems

Why is IS Important? Changes to Society

Management Information Systems Management Information Systems

Global Economy Business Enterprise

Management Information Systems Management Information Systems

Digital Firm Course Content

Management Information Systems Management Information Systems