MANAGEMENT INFORMATION SYSTEM ESSENTIALS

BY:SURESH KUMAR

REFERENCES:

• DAVID M.KROENKE, MIS ESSENTIALS INTERNATIONAL EDITION, PEARSON PRENTICE HALL, 2010;

• MANAGING INFORMATION TECHNOLOGY, …• LONG AND LONG, INTRODUCTION TO

COMPUTER 10TH EDITION, PEARSON PRENTICE HALL, 2009;

MIS and YOU• NAME : DEE CLARK• POSITION : SALES MARKETING DIRECTOR OF

ACADEMIC AND HOSPITAL DIVISION• COMPANY : EMERSON PHARMACEUTICALS• COMPANY

LIABILITIES : $4 BILLION• EMPLOYEES : 450 SALESPERSON• DUTY OF : TO PRESENT DRUGS AND

EMPLOYEES : INFORMATION ABOUT THEIR EFFECTIVENESS AND USE TO DOCTORS

• FOCUS OF DUTY : DOCTORS AND PHARMACICTS IN MEDICAL SCHOOLS AND IN

HOSPITAL

• PROBLEMS :- MANY COMPETITORS - TO DISSEMINATE SUCCESFUL TECHNIQUE OF ANY

REPRESENTATIVE TO OTHER REPRESENTATIVES

• SOLUTIONS :

HOLDING SEMINAR BY INVITING DOCTORS AND

OTHER PROFFESSIONALS BY LEADING MEDICAL

RESEARCHERS, AND SOMETIMES SHE HERSELF MAKES

PRESENTATION TO HOSPITALS• A FRIEND’S ADVICE :

TO USE A BLOG TO DISSEMINATE THE LATEST PRODUCT NEWS, CURRENT COMPETITIVE THREATS AND RESPONSES, RECENT SUCCESSES AND OTHER INFORMATION.

• PROBLEMS IN DEE’S THOUGHT:– Is this possible? Can I have it done on time?– What will I need to learn? How hard will it be to

post my thoughts, pictures, and other resources on the blog?

– Will the salespeople use the blog? What can I do to make it easy for them to do so?

– What kind of computer do I need to support the blog?

– Where do I begin?

Note: www.drudgereport.com (is one of the most famous blog)

Dee’s situation illustrates why the knowledge in this class is vitally important to business professionals today. Dee is a marketing manager. In college, she majored in marketing. She is not an information systems professional, and she never thought she would need to know how to manage the construction of an information system. Yet that is exactly what her job now requires her to do.This could happen to you!!!!!!!

Q1 What is an Information System?• A system is a group of interrelated components

working together toward a common goal by accepting inputs and producing outputs in an organized transformation process.

• An information system(IS) is typically considered to be a set of interrelated elements or components that collect(input), manipulate(processes), and disseminate (output) data and information and provide a feedback mechanism to meet an objective.

THE STRUCTURE

• Input of• Data

• Resources

• Input of• Data

• Resources

• Processing • Data

• Processing • Data

• Output of• Information• Products

• Output of• Information• Products

• Control of System Performance• Control of System Performance

• Storage of Data Resources• Storage of Data Resources

• Manufacturing• Process

• Input of• Raw Materials

• Output of• Finished Products

• Environment

• Other Systems

• Control by• Management

• Control• Signals

• Control• Signals

• Feedback• Signals

• Feedback• Signals

• System Boundary

EXAMPLE

• An information system depends on the resources of people (end users and IS specialists), hardware (machines and media), software (programs and procedures), data (data and knowledge basis), and networks (communications media and network support) to perform input, processing, output, storage, and control activities that convert data resources into information products.

Information System Resources

THINK:

• TO MAKE A CLASS REPORT

• AIRLINE RESERVATION SYSTEM

Back to Dee’s problem. Now she definitely needs this five components

of the Information System that will support her blog especially, PEOPLE AND SOFTWARE components.

• Dee and her product managers will contribute to her blog

• The salespeople will need software (procedures) for accessing the blog.

• Someone will need to support the hardware and software (program) as well as administer the data contained in the blog.

Q2 What is MIS

• MIS—management information systems—is the development and use of information systems that help businesses achieve their goals and objectives

• Three key elements:– Components of information systems – Development and use of information systems– Achieving business goals and objectives

• Development and Use of Information Systems

– You should take an active role in specifying requirements and helping manage development projects since you are the one who’ll be using the system to do your job.

– Your responsibilities also include using information systems responsibly and protecting the system and its data.

• Achieving Business Goals and Objectives

– Businesses themselves do not “do” anything, the people do.

– Information systems exist to help people in business achieve the goals and objectives of that business.

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Q3 – What is the Difference Between Information Technology and Information Systems?

Because many people confuse the two terms, compare what each one consists of and how the two differ.

Information technology drives the development of new information systems.

• Information Systems include five components– Hardware– Software– Data– Networks– People

Information technology pertains to

Products Methods Inventions Standards

Shahzad Arain

INFORMATION TECHNOLOGY

Hardware

Software

Databases

Networks

Other related components

are used to buildINFORMATION SYSTEMS

Payroll System

Inventory System

Marketing System

Customer Service System

IS Vs IT

• Consider Dee and her blog. She will use IT, but that isn’t her primary interest. Her goal is to combine the IT in hardware, software, and data with the procedures to enable herself, Emerson’s product managers, and her sales reps to accomplish their own goals and objectives.

• Consider You and Your university. Do you care that the university network uses the latest, greatest technology to send messages across campus? Do you care that the university’s Web site uses the latest, fastest hardware to show you available classes? Not really. It is only when the humans at the university (including you) use procedures to do something – to enroll in a class, for example – that the IT becomes useful to you.

Q4 How Do Successful Business Professionals Use IS?

• Think creatively about the problems, challenges, and opportunities in your business and organization and be able to apply new technology to your business needs.

• Knowing how to write e-mail, access Web pages, and do instant messaging doesn’t give anyone a competitive advantage in the workplace.

• Consider Dee Clark, she needs to rapidly and conveniently transmit the latest news, advice, and opportunities t the sales reps with whom she deals by using The Blog which gave both her and her sales reps a competitive advantage.

• Other example, Amazon.com founder, Jeff Bezos, didn’t invent any technology rather than combining the emerging technology of internet, with existing database technology, enabled a new business model.

• Or Chad Hurley, Steve Chen, and Jawed Karim registered the domain “YouTube” on February 15, 2005 and posted their first video by April 23. By November, YouTube had 200,00 registered users and was showing 2 million videos per day.By January 2006, YouTube was showing 25 million videos per day. By May 2006, YouTube was showing 43 percent of all videos viewed over the internet. By July 2006 with only 30 employees, YouTube was serving 100 million videos per day.

That phenomenal success was capped by Google’s $1.65 billion of YouTube in October 2006.

YouTube’s founder had turned nothing but an idea into $1.6 billion.

Q5 What New Opportunities for IS Are Developing Today?• Two Opportunities, Right Now

“The cost of production is zero (so low)”In this case, the costs of storage and data transmission are so low compared to other business expenses.

Selling images over internet (exe. Getty Images)Online Training (exe. Media Partners’ customer

service training)

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MOORE’S LAW• Moore’s Law (GORDON MOORE, cofounder of Intel

Corporation)

“The number of transistors per square inch on an integrated chip doubles every 18 months.”

• Dramatic Reduction in Price/Performance Ratio– Ratio fallen dramatically for over 40 years and is estimated

to continue to fall in accordance with Moore’s Law. Computers have shrunk from multimillion-dollar, room filling machines in 1968 to $300 small desktop devices in 2008

• Enabled developments such as:– Laser printers, Graphical user interfaces, High-speed

communications, Cell phones, PDAs, Email, Internet

Figure 1-6 Computer Price/Performance Ratio Decreases

Q6 What is Your Role in IS Security?

IS create value as long with the risk.Buying over the internet needs credit card!!!

• Strong Passwords– Has seven or more characters– Does not contain your user name, real name, or

company name– Does not contain a complete dictionary word in any

language– Is different from previous passwords you have used– Contains both upper- and lowercase letters, numbers,

and special characters (such as ~ ! @ # $ % ^ & * ( ) _ -+ = { } | [] : ” ; ’ < > ? , . / )

• Password Etiquette– Never write your password, and do not share it

with others or ask others for their passwords

Q7 What is This Class About?

• Now, you should have an idea that this class is much broader than just learning how to use Excel or Dreamweaver.

• MIS is all-encompassing. Consider the components: hardware, software, data, networks, and people. Do you want to be an engineer? Then work with the hardware component. Do you want to be a programmer? Write software. Do you want to be a practicing philosopher, an applied epistemologist? Learn data modeling.

Do you like social systems and sociology? Learn how to design effective group and organizational procedures. Do you like people? Become an Is trainer or computer systems salesperson. Do you enjoy management? Learn how to bring all of those disparate elements together.

To understand MIS, you need to understand both business and technology, and you need to be able to relate on to the other.

What Did Dee Clark Get?

Dee’s work can be guided by the five components. She will need a computer with software and data to store and training before she could post entries to her blog. The salespeople too will need training for accessing the blog and for sending her comments about blog entries.

She will need to think constantly about how she can use other technology in other systems to help her accomplish her goals and objectives because technology will continue to develop and improve.

She also knows that she will need a strong password to control access to her blog.

Collaboration Exercise 1

1. How did the availability of near-free data communication and data storage facilitate YouTube’s success? Would YouTube have been possible without them?

2. Even though the cost of data communication and data storage is very low, for the volume at which YouTube operates they are still substantial expenses. How did YouTube fund these expenses? (Search the internet for “History of YouTube”)

3. How does YouTube (now owned by Google) earn revenue?

4. Search for a large corporation over Google, and find out how they could sell an idea into millions of dollars of business.

5. As a team, define innovations.6. Using the corporation you identified in question

4 and your team’s definition of innovation in question 5, identify three innovative ways that the corporation could take advantage of the low cost of data communication and storage