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Management Information SystemsManagement Information Systems

Dr.Orasa TetiwatDr.Orasa Tetiwat

Department of Computer Science Department of Computer Science and Information Technologyand Information Technology

Faculty of Science Faculty of Science

Naresuan UniversityNaresuan University

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Foundations of Foundations of Information Systems Information Systems

in Businessin Business

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Learning ObjectivesLearning Objectives

• Explain why knowledge of information Explain why knowledge of information systems is important for business systems is important for business professionals and identify five key areas professionals and identify five key areas of information systems knowledge.of information systems knowledge.

• Give examples to illustrate how the Give examples to illustrate how the business applications of information business applications of information systems can support a firm’s business systems can support a firm’s business processes, managerial decision making, processes, managerial decision making, and strategies for competitive advantage.and strategies for competitive advantage.

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Learning Objectives (Continued)Learning Objectives (Continued)

• Provide examples of the components of Provide examples of the components of real world information systems.real world information systems.

• Provide examples of several major types Provide examples of several major types of information systems.of information systems.

• Identify several challenges that a Identify several challenges that a business manager might face in business manager might face in managing the successful and ethical managing the successful and ethical development and use of information development and use of information technology in a business.technology in a business.

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Information Systems FrameworkInformation Systems Framework11

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Information Systems Concepts (Continued)Information Systems Concepts (Continued)

• Foundation ConceptsFoundation Concepts– Fundamental concepts about the Fundamental concepts about the

components and roles of information components and roles of information systems.systems.

• Information TechnologiesInformation Technologies– Major concepts, developments, and Major concepts, developments, and

management issues in information management issues in information technology.technology.

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Information Systems Concepts (Continued)Information Systems Concepts (Continued)

• Business ApplicationsBusiness Applications– The major uses of information systems for The major uses of information systems for

operations, management, and competitive operations, management, and competitive advantage.advantage.

• Development ProcessesDevelopment Processes– How business professionals and information How business professionals and information

specialists plan, develop, and implement information specialists plan, develop, and implement information systems.systems.

• Management ChallengesManagement Challenges– The challenge of managing ethically and effectively.The challenge of managing ethically and effectively.

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What IS a system?What IS a system?

• A group of interrelated or interacting A group of interrelated or interacting elements forming a unified whole, ORelements forming a unified whole, OR

• A group of interrelated components A group of interrelated components working together toward a common goal working together toward a common goal by accepting inputs and producing outputs by accepting inputs and producing outputs in an organized transformation process in an organized transformation process (dynamic system).(dynamic system).

• Three basic interacting components:Three basic interacting components:– InputInput– Processing (transformation process)Processing (transformation process)– OutputOutput

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Add Feedback and Control Loops..Add Feedback and Control Loops..

• And the system, now called a And the system, now called a cybernetic system, becomes even cybernetic system, becomes even more useful.more useful.– Self-monitoringSelf-monitoring– Self-regulatingSelf-regulating

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Other System CharacteristicsOther System Characteristics

• A system exists and functions in an A system exists and functions in an environment containing other systems.environment containing other systems.

• Subsystem – a component of a larger system.Subsystem – a component of a larger system.

• Systems that share the same environment may Systems that share the same environment may be connected to one another through a shared be connected to one another through a shared boundary, or interface.boundary, or interface.

• Open versus closed system.Open versus closed system.

• Adaptive systemAdaptive system

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Components of an INFORMATION SystemComponents of an INFORMATION System11

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Components of an Information System Components of an Information System (Continued)(Continued)

• People ResourcesPeople Resources– End UsersEnd Users– IS SpecialistsIS Specialists

• Hardware ResourcesHardware Resources– Computer systemsComputer systems– PeripheralsPeripherals

• Software ResourcesSoftware Resources– System softwareSystem software– Application softwareApplication software– ProceduresProcedures

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Components of an Information System Components of an Information System (Continued)(Continued)

• Data ResourcesData Resources– Data versus InformationData versus Information

• Network ResourcesNetwork Resources– Communication mediaCommunication media– Network supportNetwork support

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Data Versus InformationData Versus Information11

1200100

WestCharles Mann

79154 TM Shoes

Monthly Sales Report for West Region

Sales Rep: Charles MannEmp No. 79154Item Qty Sold PriceTM Shoes 1200 $100

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Attributes of Information QualityAttributes of Information Quality11

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11 Logical Data ElementsLogical Data Elements

NameFieldNameField

PayrollRecordPayrollRecord

PayrollFile

PayrollFile

PersonnelDatabase

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Information ProductsInformation Products

• Focus is on the end-user.Focus is on the end-user.

• They are the result of IS They are the result of IS activities…activities…– InputInput– ProcessingProcessing– OutputOutput– StorageStorage– ControlControl

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Section IISection II

• Foundation Concepts: Business Foundation Concepts: Business Applications, Development, and Applications, Development, and

ManagementManagement

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Major Roles of ISMajor Roles of IS11

Support CompetitiveAdvantage

Support Business

Decision Making

Support of Business Processes and Operations

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Major Roles of IS (continued)Major Roles of IS (continued)

• Support Business ProcessesSupport Business Processes

• Support Decision MakingSupport Decision Making

• Support Competitive AdvantageSupport Competitive Advantage

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The Present and the FutureThe Present and the Future

• E-BusinessE-Business– The use of Internet technologies to The use of Internet technologies to

internet work and empower…internet work and empower…• Business processesBusiness processes• Electronic commerce, andElectronic commerce, and• Enterprise communication & collaborationEnterprise communication & collaboration

– Within a company & with its customers, Within a company & with its customers, suppliers, & other business suppliers, & other business stakeholders.stakeholders.

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IS in the E-Business EnterpriseIS in the E-Business Enterprise

• Every business competes globally Every business competes globally (whether they realize it or not)(whether they realize it or not)

• IS supports business operations IS supports business operations through the use of:through the use of:– IntranetsIntranets– ExtranetsExtranets– InternetInternet– Other information technologiesOther information technologies

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IS in the E-Business Enterprise (continued)IS in the E-Business Enterprise (continued)

• Enterprise Collaboration SystemsEnterprise Collaboration Systems– Support communication, coordination, Support communication, coordination,

& collaboration.& collaboration.• Virtual teamsVirtual teams

• Electronic CommerceElectronic Commerce– Buying & selling, and marketing & Buying & selling, and marketing &

servicing of products, services, & servicing of products, services, & information.information.

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Trends in Information SystemsTrends in Information Systems11

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Types of Information SystemsTypes of Information Systems

• Operations Support SystemsOperations Support Systems– Transaction processing systemsTransaction processing systems

• Batch – transaction data accumulate over Batch – transaction data accumulate over time, processed periodically.time, processed periodically.

• Real-time – data processed immediately Real-time – data processed immediately after a transaction occurs.after a transaction occurs.

– Process Control Systems – monitor & Process Control Systems – monitor & control physical processes.control physical processes.

– Enterprise Collaboration SystemsEnterprise Collaboration Systems

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Types of Information Systems (continued)Types of Information Systems (continued)

• Management Support SystemsManagement Support Systems– Management Information Systems – Management Information Systems –

pre-specified reports & displays to pre-specified reports & displays to support decision-making.support decision-making.

– Decision Support Systems – provide Decision Support Systems – provide interactive ad hoc support.interactive ad hoc support.

– Executive Information Systems – Executive Information Systems – critical information tailored to the critical information tailored to the information needs of executives.information needs of executives.

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Types of Information Systems (continued)

• Other ClassificationsOther Classifications– Expert systems – expert adviceExpert systems – expert advice– Knowledge management systems – Knowledge management systems –

support the creation, organization, & support the creation, organization, & dissemination of business knowledgedissemination of business knowledge

– Functional business systems – support Functional business systems – support the basic business functionsthe basic business functions

– Strategic information systems – Strategic information systems – strategic advantagestrategic advantage

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Developing IS Solutions to Business Developing IS Solutions to Business Challenges Challenges 11

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Ethical ChallengesEthical Challenges

• Just because we can, should we?Just because we can, should we?

• Where do we draw the line between Where do we draw the line between customer privacy and collecting customer privacy and collecting business information?business information?

• Do we owe it to society to use this Do we owe it to society to use this technology wisely and responsibly? technology wisely and responsibly? Why? Isn’t our job to make a profit?Why? Isn’t our job to make a profit?

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In Summary, the IS Function…In Summary, the IS Function…

• Is a major functional area of business.Is a major functional area of business.

• Is an important contributor to operational Is an important contributor to operational efficiency, employee productivity and morale, efficiency, employee productivity and morale, and customer service & satisfaction.and customer service & satisfaction.

• Is a major source of information and support for Is a major source of information and support for decision making.decision making.

• Provides a strategic advantage in developing Provides a strategic advantage in developing competitive products & services.competitive products & services.

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Discussion QuestionsDiscussion Questions

• How can information technology support a How can information technology support a company’s business processes and decision company’s business processes and decision making, and give it a competitive advantage?making, and give it a competitive advantage?

• How does the use of the Internet, intranets, and How does the use of the Internet, intranets, and extranets by an e-business enterprise support extranets by an e-business enterprise support their e-commerce activities?their e-commerce activities?

• Why do big companies still fail in their use of Why do big companies still fail in their use of information technology? What should they be information technology? What should they be doing differently?doing differently?

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Discussion Questions (continued)Discussion Questions (continued)

• How can a manager demonstrate that he or she How can a manager demonstrate that he or she is a responsible end user of information is a responsible end user of information systems?systems?

• What are some of the toughest management What are some of the toughest management challenges in developing IT solutions to solve challenges in developing IT solutions to solve business problems and meet new e-business business problems and meet new e-business opportunities?opportunities?

• Why are there so many conceptual Why are there so many conceptual classifications of information systems? Why are classifications of information systems? Why are they typically integrated in information systems they typically integrated in information systems found in the real world?found in the real world?

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Discussion Questions (continued)Discussion Questions (continued)

• In what major ways have the roles of In what major ways have the roles of information systems applications in information systems applications in business expanded during the last 40 business expanded during the last 40 years? What is one major change you years? What is one major change you think will happen in the next 10 years?think will happen in the next 10 years?

• Can the business use of Internet Can the business use of Internet technologies help a company gain a technologies help a company gain a competitive advantage?competitive advantage?

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ReferencesReferences

• James A. O'Brien; George M. Marakas. Management Information Systems: Managing Information Technology in the Business Enterprise 6th Ed., Boston: McGraw-Hill/ Irwin,2004

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