Management Information Systems

Islamia University of Bahawalpur

Delivered by:Tasawar Javed

History of Information Systems It includes:

How H/W has evolved and how it has been applied over time

First general purpose Digital Computer was installed in a business organization

Great increase in speed Dramatic reduction in Size Evolved from relatively straightforward accounting

process to system Designed to support Managers and other problem solvers

Management Information Systems

Why Information Systems? It includes:

The competitive business environmentThree powerful changes have altered the environment of

business.1st: The Emergence & Strengthening of the global economy2nd: Transformation of industrial economies and societies

into knowledge and in-formation based service economies

3rd: Transformation of the business enterprise

Management Information Systems

First Change: The Emergence & Strengthening of the global economy

Growing % of economy in the world depends on import and exports. Foreign trade plays a vital role in the economy of the country.

Globalization: Management & control in a global marketplace Competition in world markets Global work groups Global delivery systems

Why Information Systems

Second Change: Transformation of industrial Economies

Knowledge and information based economies Productivity New products and services Leadership Time based competition Shorter product life cycle Turbulent environment Limited employee knowledge base

Why Information Systems

Third Change: Transformation of the enterprise

Flattening Decentralization Flexibility Location independence Low transaction and coordination costs Empowerment Collaborative work and teamwork

Why Information Systems

How IT can transform organizationsGlobal NetworksInternational division of labour: the operations of a firm are no longer

determined by location, the global reach of firms is extended; costs of global coordination decline. Transaction costs decline

Enterprise Networkscollaborative work & teamwork, across divisional boundaries, business process changed

Distributed computingempowerment: Management cost decline, individual have knowledge and information to act

Why Information Systems

How IT can transform organizationsPortable ComputingVirtual organizations: work is not tied to specific location, knowledge

and info can be delivered to anywhere in minimum time, work becomes portable

GUIAccessibility: everyone in organization can access the info, work flows can be automated, organizational cost decline as work flows move from paper to digital images, documents & Voice

Why Information Systems

Evolution in Computer H/W ENIAC (Electronic Numerical Integrator & Calculator)

Developed in 1946 by John & Presper UNIVAC (universal automatic computer)

Installed in 1951, in US census Bureau GE; installed same machine 3 years laterThese early computer called ‘Mainframes’

IBM revolutionized the computer industry Introduced IBM/system/360 line More than one user appears to be working on the computer at

same time; refers as ‘Multitasking’ Old computer were much more slower than current computers

Management Information Systems

Moore’s Law Processor speed has increased in number of years, after

IBM introduced microcomputer Gordon Moore gave Moore’s law; one of the founder of

Intel, in 1960s It stated “storage density of integrated circuits on a silicon

chip doubled about every year” After that pace slowed down and now it doubles every year

and half (18 months) If you purchase a computer 15 years from today, it would

be 1024 times as powerful, yet cost the same as today’s model

Management Information Systems

IS are virtual system that enable management to control the operations of the physical system of the firm

Physical System Of the firms consists of tangible resources such as: materials, personnel,

machines and money Virtual System

Consist of the information resources that are used to represent the physical system; for example an inventory storeroom containing inventory items is a physical system and the computer based inventory master file is a virtual system that represents the physical system.

The Evolution in Computer Applications

Open system That interacts with its environment by means of

physical resources flows. An Information System is also an open system

Closed system System that doesn’t communicate with its

environment. Closed system would not interact with customers, managers, or anyone else

The Evolution in Computer Applications

Transaction Processing Systems Management Information Systems Virtual Office Systems Decision Support Systems Enterprise Resource Planning Systems

The Evolution in Computer Applications

IS; interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualisation in an organization

Information Data

Feed back

What is an IS?

Data Process Information

Computer Based IS

Computers and software are technical foundation and tools to store and process information

similar to the material and tools used to build a house Can’t produce required information to a particular

organization

Computer SW vs IS

Dimensions of IS

Organizational Dimensions structure: different levels and specialties

hierarchy of authority, responsibility: Senior Middle Operational management, Knowledge service Data workers

business process: Organization coordinate its work through its hierarchy and business process

Culture : ways of doing things, part is embedded in IS.

Management Dimensions Technological Dimensions

Dimensions of IS

Management Dimensions– Make decisions, formulate action plan and solve

organizational problem – Managers set organizational strategy for responding to

business challenges– In addition, managers must act creatively:

• Creation of new products and services• Occasionally re-creating the organization

Technological Dimensions– Hardware: physical component ;Software: instruction control

Hardware; Data management technology – Network and telecommunications technology – WWW: service to store retrieve information

• IT infrastructure: platform that the firm can built on its IS

Dimensions of IS

IS instrument for creating value to firms Investments in IS result in superior returns:

Increases productivity and revenue IS provides information that helps managers

making better decisions and improve the execution of business process

Value of IS

Business Perspective on IS

• Investing in information technology does not guarantee good returns

• Considerable variation in the returns firms receive from systems investments

• Factors that case The variation in Returns : – Adopting right business model according (suite) to

new technology – complementary investments (business processes, models,

management behavior and culture)

There variation in Returns on Information Technology Investment

Contemporary Approaches to IS

Operational level systems Info that monitor the elementary activities &

transactions of the organizations Knowledge level systems

IS that support knowledge and data workers in an organizations

Management level systems IS that support the monitoring, control, DM & Admin

activities Strategic level systems

IS that support the long range planning activities of senior management

Key System Applications in the Organization

The Challenge of Information System: Key Management Issues The Strategic Business challenge The Globalization challenge The Information Architecture Challenge The Information System Investment

Challenge The Responsibility and Control Challenge