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Information Management
Global Business andInformation Systems
Chapter 1&2Lecturer: Dr Richard Boateng
Email: [email protected]
Feb 3rd 2010
Management Information Systems
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Management Information Systems
What is an information system?What is an information system?What is an information system?What is an information system?
Management Information Systems
An information system (IS) is an arrangement of people,data, processes, and information technology that interact tocollect, process, store, and provide as output the informationneeded to support an organization.
Information technology is a contemporary term thatdescribes the combination of computer technology (hardwareand software) with telecommunications technology (data,image, and voice networks).
An information system (IS) is an arrangement of people,data, processes, and information technology that interact tocollect, process, store, and provide as output the informationneeded to support an organization.
Information technology is a contemporary term thatdescribes the combination of computer technology (hardwareand software) with telecommunications technology (data,image, and voice networks).
Management Information Systems
Figure 1 An Integrated View of Information and Communication Technologies
HRIS
Source: Adapted from Duncome and Heeks (2001)
Management Information Systems
Data: Streams of raw facts representing eventssuch as business transactions
Information: Clusters of facts that are meaningfuland useful to human beings in the processes suchas making decisions
Data: Streams of raw facts representing eventssuch as business transactions
Information: Clusters of facts that are meaningfuland useful to human beings in the processes suchas making decisions
Management Information Systems
INPUT OUTPUTPROCESS
Activities in an Information System
INPUT OUTPUTPROCESS
FEEDBACK
Management Information SystemsMore Qu
1. What are the major types of systems in a business?What role do they play?
2. How do information systems support the majorbusiness functions: sales and marketing,manufacturing and production, finance andaccounting, and human resources?
1. What are the major types of systems in a business?What role do they play?
2. How do information systems support the majorbusiness functions: sales and marketing,manufacturing and production, finance andaccounting, and human resources?
Management Information Systems
Six Types of Information Systems
3. Management InformationSystems (MIS)
2. Decision SupportSystems (DSS)
1. Executive SupportSystem (ESS)
Strategic-LevelPlan and Project,
Forecast- Senior Managers
Management-Level
Decision Analysis;Summary Reports- Staff Managers &Middle Managers
6. Transaction ProcessSystems (TPS)
5. Office Systems (OS)
3. Management InformationSystems (MIS)
4. Knowledge WorkSystems (OS)
Decision Analysis;Summary Reports- Staff Managers &Middle Managers
Knowledge-Level
Models; Graphics;Documents & Mail
-Professionals &Clerical Workers
Operational-LevelSorting; lists; Detailed
Reports; Pay Slips- Operations
Personnel; Supervisors
Management Information Systems
Systems that Span the Business
SAP ERP:
Human Resource Systems - Leave RequestExample
Executive Support Systems – Sales Planningand Forecasting
http://www.sap.com/solutions/business-suite/erp/demos/index.epx
SAP ERP:
Human Resource Systems - Leave RequestExample
Executive Support Systems – Sales Planningand Forecasting
http://www.sap.com/solutions/business-suite/erp/demos/index.epx
Management Information Systems
A transaction processing system (TPS) is an informationsystem that captures and processes data about businesstransactions.
A management information system (MIS) is aninformation system that provides for management-orientedreporting based on transaction processing and operations ofthe organization.
A decision support system (DSS) is an information systemthat either helps to identify decision making opportunities orprovides information to help make decisions.
A transaction processing system (TPS) is an informationsystem that captures and processes data about businesstransactions.
A management information system (MIS) is aninformation system that provides for management-orientedreporting based on transaction processing and operations ofthe organization.
A decision support system (DSS) is an information systemthat either helps to identify decision making opportunities orprovides information to help make decisions.
Management Information Systems
An expert system is an information system that capturesthe expertise of workers and then simulates that expertise tothe benefit of nonexperts.
A communications and collaboration system is aninformation system that enables more effectivecommunications between workers, partners, customers, andsuppliers to enhance their ability to collaborate.
An office automation system is an information system thatsupports the wide range of business office activities thatprovide for improved work flow between workers.
An expert system is an information system that capturesthe expertise of workers and then simulates that expertise tothe benefit of nonexperts.
A communications and collaboration system is aninformation system that enables more effectivecommunications between workers, partners, customers, andsuppliers to enhance their ability to collaborate.
An office automation system is an information system thatsupports the wide range of business office activities thatprovide for improved work flow between workers.
Management Information Systems
So what is the DIGITAL FIRM?So what is the DIGITAL FIRM?So what is the DIGITAL FIRM?So what is the DIGITAL FIRM?
Management Information Systems
A firm which uses information systems toA firm which uses information systems tobecome networked and decentralized and tobecome networked and decentralized and todigitalize their business processes and fosterdigitalize their business processes and fosterinnovation and creativity.innovation and creativity.
A firm which uses information systems toA firm which uses information systems tobecome networked and decentralized and tobecome networked and decentralized and todigitalize their business processes and fosterdigitalize their business processes and fosterinnovation and creativity.innovation and creativity.
Management Information Systems
The Internet:The Internet:Reducing Boundaries and CompetingReducing Boundaries and Competingon Informationon Information
The Internet:The Internet:Reducing Boundaries and CompetingReducing Boundaries and Competingon Informationon Information
Management Information Systems
International network of networks
Universal technology platform: Any computer cancommunicate with any other computer
World Wide Web and Websites
The Internet
International network of networks
Universal technology platform: Any computer cancommunicate with any other computer
World Wide Web and Websites
Management Information Systems
4 Major Systems Defining the Digital Firm Supply chain management systems Customer relationship management systems Enterprise systems Knowledge management systems
The Competitive Business Environment and the Emerging Digital Firm
4 Major Systems Defining the Digital Firm Supply chain management systems Customer relationship management systems Enterprise systems Knowledge management systems
Management Information Systems
Video Sessions I-800 Flowers (http://www.1800flowers.com)
for video: http://news.zdnet.com/2422-12794_22-334892.html
Blue Nile(http://www.bluenile.com)
for video: http://news.zdnet.com/2422-12794_22-334950.html
Video Sessions I-800 Flowers (http://www.1800flowers.com)
for video: http://news.zdnet.com/2422-12794_22-334892.html
Blue Nile(http://www.bluenile.com)
for video: http://news.zdnet.com/2422-12794_22-334950.html
Management Information Systems
I-800 Flowers A network of 9000 florists Mobile (device) service Call Centre Blogs
User Experience- 75 % Customers from Web- Visual Experience- Portray the beauty of products- Easy Experience, comfortable- Efficient
TOWARD THE DIGITAL FIRM
•• Blue NileBlue Nile•• 60,000 jewelry60,000 jewelry•• 33--4 days delivery times4 days delivery times•• Unique products need uniqueUnique products need unique
technologytechnology
User ExperienceUser Experience-- Understand GenderUnderstand Gender
PreferencesPreferences- Women do the selection Men
do the buying-- Competitive PriceCompetitive Price –– nono
middlemen/commissionsmiddlemen/commissions-- Availability: 24/7Availability: 24/7
I-800 Flowers A network of 9000 florists Mobile (device) service Call Centre Blogs
User Experience- 75 % Customers from Web- Visual Experience- Portray the beauty of products- Easy Experience, comfortable- Efficient
•• Blue NileBlue Nile•• 60,000 jewelry60,000 jewelry•• 33--4 days delivery times4 days delivery times•• Unique products need uniqueUnique products need unique
technologytechnology
User ExperienceUser Experience-- Understand GenderUnderstand Gender
PreferencesPreferences- Women do the selection Men
do the buying-- Competitive PriceCompetitive Price –– nono
middlemen/commissionsmiddlemen/commissions-- Availability: 24/7Availability: 24/7
Management Information Systems
Role of Information Systems
Enabling
Processes andFunctions in
Organizations
Supporting
Processes andFunctions in
Organizations
The websites of thesecompanies support the saleof electronic products which
are primarily done in theshops
The websites of these companies enablethe sale of products. These companies
primarily do not have anyshops/showrooms for consumers or may
fail to operate efficiently withouttheir websites.
Management Information Systems
Electronic Commerce: Sharing business information,managing business relationships and facilitating transactions withInternet technology. (linking buyers and sellers).
Electronic Business: Executing all the firm’s businessprocesses with Internet technology. (sales, finance, humanresources, manufacturing)
Intranet: Business builds private, secure network based onInternet technology
Extranet: Extension of intranet to authorized external users
Electronic Commerce: Sharing business information,managing business relationships and facilitating transactions withInternet technology. (linking buyers and sellers).
Electronic Business: Executing all the firm’s businessprocesses with Internet technology. (sales, finance, humanresources, manufacturing)
Intranet: Business builds private, secure network based onInternet technology
Extranet: Extension of intranet to authorized external users
Management Information Systems
Transformation of the Business Enterprise
Flattening Decentralization Flexibility Location independence Low transaction and coordination costs Empowerment Collaborative work and teamwork
Transformation of the Business Enterprise
Flattening Decentralization Flexibility Location independence Low transaction and coordination costs Empowerment Collaborative work and teamwork
Management Information Systems
Business Perspective of Information Systems
ORGANIZATIONORGANIZATION TECHNOLOGYTECHNOLOGY
INFORMATIONINFORMATION
SYSTEMSSYSTEMS
People
Structure
Procedures
Politics
Culture
Hardware
Software
Storage
MANAGEMENTMANAGEMENT
INFORMATIONINFORMATION
SYSTEMSSYSTEMS
People
Structure
Procedures
Politics
Culture
Hardware
Software
Storage
Senior, middle, operational
Management Information Systems
Key Elements:
People: Managers, knowledge workers, dataworkers, production or service workers
Structure: Organization chart , groups of specialists,products, geography
Organizations
Key Elements:
People: Managers, knowledge workers, dataworkers, production or service workers
Structure: Organization chart , groups of specialists,products, geography
Management Information Systems
Operating procedures: Standard operating procedures(SOP, rules for action)
Politics: Power to persuade, get things done
Culture: Customs of behavior
Organizations
Operating procedures: Standard operating procedures(SOP, rules for action)
Politics: Power to persuade, get things done
Culture: Customs of behavior
Management Information Systems
Levels: Senior managers: make long-range strategic decisions
about products and services
Middle managers: Carry out the programs and plans ofsenior management
Operational managers: monitor the firm’s daily activities
ManagementLevels: Senior managers: make long-range strategic decisions
about products and services
Middle managers: Carry out the programs and plans ofsenior management
Operational managers: monitor the firm’s daily activities
Management Information Systems
Tools managers use to cope with change
Hardware: Physical equipment
Software: Detailed preprogrammed instructions
Storage: Physical media forstoring data and the software
Computer TechnologyTools managers use to cope with change
Hardware: Physical equipment
Software: Detailed preprogrammed instructions
Storage: Physical media forstoring data and the software
Management Information Systems
So what is the DIGITAL FIRM?So what is the DIGITAL FIRM?So what is the DIGITAL FIRM?So what is the DIGITAL FIRM?
Management Information Systems
A firm which uses information systems to becomeA firm which uses information systems to becomenetworked and decentralized and to digitalize theirbusiness processes and foster innovation andand foster innovation andcreativity.creativity.
A firm which uses information systems to becomeA firm which uses information systems to becomenetworked and decentralized and to digitalize theirbusiness processes and foster innovation andand foster innovation andcreativity.creativity.
Management Information SystemsHow Digital is your firm?
Highly networkeddecentralization
LowDigitalization
Less networkcentralization
HighDigitalization
Management Information Systems
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Management Information Systems
Further Examples of the MajorTypes of Systems inOrganizations
Further Examples of the MajorTypes of Systems inOrganizations
Management Information Systems
Four powerful worldwide changes that have altered thebusiness environment:
1. Emergence of the Global Economy2. Transformation of Industrial Economies3. Transformation of the Business Enterprise4. The Emerging Digital Firm
Four powerful worldwide changes that have altered thebusiness environment:
1. Emergence of the Global Economy2. Transformation of Industrial Economies3. Transformation of the Business Enterprise4. The Emerging Digital Firm
Management Information SystemsMajor Types of Systems in Organizations
Typical Applications of Transaction Processing Systems (TPS)
Management Information SystemsMajor Types of Systems in Organizations
How management information systems obtain their datafrom the organization’s TPS
Management Information SystemsMajor Types of Systems in Organizations
Transaction Processing Systems (TPS)
Basic business systems that serve the organization’soperational level
Input:Transactions, events Processing: Sorting, listing, merging, updating Output: Detailed reports, lists, summaries Users: Operations personnel, supervisors
Four Major Types of Systems
Transaction Processing Systems (TPS)
Basic business systems that serve the organization’soperational level
Input:Transactions, events Processing: Sorting, listing, merging, updating Output: Detailed reports, lists, summaries Users: Operations personnel, supervisors
Management Information SystemsEnterprise Applications
Knowledge Management Systems (KMS) Collect relevant knowledge and experience in firm to
support business processes and management decisions Manage and distribute documents and other digital
knowledge objects
Knowledge Management Systems in the Enterprise
Knowledge Management Systems (KMS) Collect relevant knowledge and experience in firm to
support business processes and management decisions Manage and distribute documents and other digital
knowledge objects
Management Information SystemsEnterprise Applications
Role of Knowledge Management Systems Acquire knowledge Store knowledge Distribute knowledge Apply knowledge
Knowledge Management Systems in the Enterprise
Role of Knowledge Management Systems Acquire knowledge Store knowledge Distribute knowledge Apply knowledge
Management Information SystemsMajor Types of Systems in Organizations
Management Information Systems (MIS)
Serve management level; provide reports and access tocompany data
Input: Summary transaction data, high-volume data, simplemodels
Processing: Routine reports, simple models, low-levelanalysis
Output: Summary and exception reports Users: Middle managers
Four Major Types of SystemsManagement Information Systems (MIS)
Serve management level; provide reports and access tocompany data
Input: Summary transaction data, high-volume data, simplemodels
Processing: Routine reports, simple models, low-levelanalysis
Output: Summary and exception reports Users: Middle managers
Management Information SystemsMajor Types of Systems in Organizations
Decision-Support Systems (DSS)
Serve management level with data analysis for makingdecisions
Input: Low-volume data or massive databases, analyticmodels, and data analysis tools
Processing: Interactive, simulations, analysis Output: Special reports, decision analyses, responses to
queries Users: Professionals, staff managers
Four Major Types of SystemsDecision-Support Systems (DSS)
Serve management level with data analysis for makingdecisions
Input: Low-volume data or massive databases, analyticmodels, and data analysis tools
Processing: Interactive, simulations, analysis Output: Special reports, decision analyses, responses to
queries Users: Professionals, staff managers
Management Information SystemsMajor Types of Systems in Organizations
Executive Support Systems (ESS)
Provide communications and computing environment thatserves the organization’s strategic level
Input: External and internal aggregate data Processing: Graphics, simulations, interactive Output: Projections, responses to queries Users: Senior Managers
Four Major Types of Systems
Executive Support Systems (ESS)
Provide communications and computing environment thatserves the organization’s strategic level
Input: External and internal aggregate data Processing: Graphics, simulations, interactive Output: Projections, responses to queries Users: Senior Managers
Management Information SystemsMajor Types of Systems in Organizations
Model of a typical executive support system
Management Information Systems
Thank You for Listening
Contact: [email protected] Website: www.pearlrichards.org
48
Thank You for Listening
Contact: [email protected] Website: www.pearlrichards.org