MSIT:- Pichai Takkabutr DEC, 20101 What is Management Information Systems ? M-I-S What is Management...

MSIT:- Pichai Takkabutr DEC, 2010 1

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What isWhat is Management Information Systems ? M-I-Management Information Systems ? M-I-

S S


Definition of Management Information System IS:-Definition of Management Information System IS:-ระบบสารสนเทส เพื่��อ การจั�ดการ ระบบสารสนเทส เพื่��อ การจั�ดการ ((บรรยาย อธิ�บาย บรรยาย อธิ�บาย

พื่ยากรณ์� และควบค�มพื่ยากรณ์� และควบค�ม))1. For providing information

พื่��งพื่าทร�พื่ย�ส�นทางปั ญญาสารสนเทศ ค้�นหาจัากค้�นหาจัากระบบธรรมูชิาติ�ส��งแวดล�อมู ระบบธรรมูชิาติ�ส��งแวดล�อมู REAL SECTOR/ REAL SECTOR/ ANALOGANALOG

2. - Integrated man machine system พื่��งพื่าอ�ตโนม�ต� ให้(ก�บ คน และ ธิรรมชาต�ส��งแวดล(อ

ม อย*+รอด ย��งย�น ICT SECTOR/ DIGITALICT SECTOR/ DIGITAL

3. To support operations, management, analysis and decision making functions of

an organization (All of Activities and Fu nctions of Information Processors)

แก(ไขปั ญห้าของคนด(วยปั ญญาเท.ยม /ปั ญญาปัระด�ษฐ VIRTUAL SECTOR/ VIRTUAL SECTOR/

WORLDWORLD


MIS is Integrated man-machine systemMIS is Integrated man-machine system1. MAN is People Ware/ PW :- • Computer Man/ Technician:- CIO, System

Analyst, System Engineer, System Programmer, Data Admin / ADMIN, Operators, Data Entry Operator etc;

• Users:- EP, EVP, CEO, CCO, CFO, Computing User, USER, Client/ Customer, Executive, BOSS etc;

2. MACHINE is ICT/ IT/ ECTI/ E/ Computer/ NETWORK/ Technology INFRASTRUCTURE of HARDWARE/ HW and SOFTWARE/ SW

3. SYSTEMS Integrated is KNOW-HOW/ Explicit Knowledge and KNOW-WHY/ TACIT Knowledge inter-disciplinary/ SOCIO-cultural INNOVATION/ SOCIO Technology/ APPLICAIONS (METAPHYSICS/ ONTOLOGY/ EPISTERMOLOGY)


MIS For providing information MIS For providing information 1.1. Types of Information Types of Information Impact/ Feed Back from Impact/ Feed Back from

Activities and Functions of Information ProcessorsActivities and Functions of Information Processors• Based onBased on Activities VS. DSS:- Structured, Unstructured, Activities VS. DSS:- Structured, Unstructured,

Semi-structuredSemi-structured:-:- SISP. MIS, TPS SISP. MIS, TPS• Based onBased on Functions VS. GDSS:- Both Front Office and Functions VS. GDSS:- Both Front Office and

Back Office:- Production, Marketing, Trading, Service, Back Office:- Production, Marketing, Trading, Service, Consumption, FinancialConsumption, Financial

• Based onBased on Internal Information VS. ERP, External Internal Information VS. ERP, External Information VS. SCM, CRM, DCMInformation VS. SCM, CRM, DCM

2.2. Information sub_systems:- TPS, Information sub_systems:- TPS, EDPS, OAS, MIS, EIS. ESEDPS, OAS, MIS, EIS. ES


MIS To support operations, management, analysis and MIS To support operations, management, analysis and decision making functions In an organization (All of decision making functions In an organization (All of Activities and Fuctions of Information Processors)Activities and Fuctions of Information Processors)

1.1. Target GropusTarget Gropus• Shareholders/ Stock HoldersShareholders/ Stock Holders• StakeholdersStakeholders2.2. Activities of Target GroupsActivities of Target Groups• Strategy/ Top Management:- SISPStrategy/ Top Management:- SISP• Tactical/ Management/ Middle Management:- MIS/ Tactical/ Management/ Middle Management:- MIS/

Information Center, KB CenterInformation Center, KB Center• Operating Management:- Network Centric Operation/ Operating Management:- Network Centric Operation/

NCONCO3.3. Function/ All of Applications:- Interdisciplinary Function/ All of Applications:- Interdisciplinary


Foundations of Information Foundations of Information Systems 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 of professionals and identify five key areas of information systems knowledge.information systems knowledge.

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

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Learning Objectives (Continued)Learning Objectives (Continued)

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

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

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

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Information Systems FrameworkInformation Systems Framework11


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 operations, The major uses of information systems for operations,

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

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

plan, develop, and implement information systems.plan, develop, and implement information 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 working A group of interrelated components working together toward a common goal by accepting together toward a common goal by accepting inputs and producing outputs in an organized inputs and producing outputs in an organized transformation process (dynamic system).transformation process (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 cybernetic And the system, now called a cybernetic system, becomes even more useful.system, becomes even more useful.– Self-monitoringSelf-monitoring– Self-regulatingSelf-regulating

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Other System CharacteristicsOther System Characteristics

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

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

• Systems that share the same environment may be Systems that share the same environment may be connected to one another through a shared 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


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


Attributes of Information QualityAttributes of Information Quality11


11Logical Data ElementsLogical Data Elements

NameFieldNameField

PayrollRecordPayrollRecord

PayrollFile

PayrollFile

PersonnelDatabase


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


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 internet The use of Internet technologies to internet

work and empower…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 stakeholders.suppliers, & other business 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 through IS supports business operations through the use of: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


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

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

– Enterprise Collaboration SystemsEnterprise Collaboration Systems

11Orasa T.Orasa T.


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

• Management Support SystemsManagement Support Systems– Management Information Systems – pre-Management Information Systems – pre-

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

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

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

11Orasa T.Orasa T.


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

– Strategic information systems – strategic Strategic information systems – strategic advantageadvantage

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

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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 business customer privacy and collecting business information?information?

• Do we owe it to society to use this Do we owe it to society to use this technology wisely and responsibly? Why? technology wisely and responsibly? Why? Isn’t our job to make a profit?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 efficiency, Is an important contributor to operational efficiency, employee productivity and morale, and customer employee productivity and morale, and customer service & satisfaction.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 making, company’s business processes and decision making, and give it a competitive advantage?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 their e-extranets by an e-business enterprise support their e-commerce activities?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 doing information technology? What should they be doing differently?differently?

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Discussion Questions (continued)Discussion Questions (continued)

• How can a manager demonstrate that he or she is a How can a manager demonstrate that he or she is a responsible end user of information systems?responsible end user of information 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 classifications of Why are there so many conceptual classifications of information systems? Why are they typically information systems? Why are they typically integrated in information systems found in the real integrated in information systems found in the real world?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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Information Systems

• Information Systems are becoming the foundation of business models and processes

• They allow for the distribution of knowledge


IT and IS

• What is Information Technology?– Any form of technology used by people to

handle information.

• What are Information Systems?– Integrated components processing, storing and

disseminating information in an organisation.– Interdisciplinary study of systems that provide

information to users in organisations.Pyle, I.C. & Illingworth, V. (Eds) (1996). Oxford Dictionary of Computing, 4 th Edition. Oxford / New York: Oxford University Press


Information and Data

• Information– Clusters of facts meaningful and useful to

human beings in processes such as making decisions

• Data– Streams of raw facts representing events such

as business transactions – meaningless without structure


Experiences of IT and IS

• Examples of IT– Hardware (PC, UNIX server)– Software (e-mail, Internet, Windows, Word)– Consumer devices (mobiles, train times)

• Examples of IS– File systems, databases, e-mail servers / clients– e-commerce– SAP, student records


Management Information Systems

• MIS– The study of information systems focusing on

their use in business and management.

• Approaches– Technical– Behavioural– Sociotechnical


Approaches to IS

SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

SOCIOTECHNICALSOCIOTECHNICAL


Why is IS Important?

• For an organisation to survive and prosper– More locations (networking, Internet)– New products and services– Improve jobs and work flows:

• Efficiency

• Cost

• Ethical and social issues


Why is IS Important?

• Worldwide changes:– Global economy– Knowledge- or information-based society– Business enterprise– Digital firm


Global Economy

• Growing percentage of economy relies upon import and export

• Need to operate globally

• IS can provide global trading infrastructure


Information Economy

0%

10%

20%

30%

40%

50%

60%

70%

1900

1910

1920

1930

1940

1950

1960

1970

1980

1997

YEAR

% SERVICE

% WHITE COLLAR

% BLUE COLLAR

% FARMING


Changes to Society

• Change of employment profiles:– Less farming– Less ‘blue collar’ – manufacturing– Increased service– Increased ‘white collar’ – office-based

• USA: 55% of work force are in knowledge- or information-based activities

• Shift of manufacture to low-wage countries


Business Enterprise

• Change from hierarchical organisations

• Now flat, decentralised

• Relies on instant information

• Flexibility with customer focus, with increasing importance


Digital Firm

• An organisation where:– Nearly all relationships with customers,

suppliers and employees is digital– Business processes accomplished through

digital networks

• Flexible

• Dependent upon on IT


Course Objectives

• Provide an understanding of– IS and underlying IT– Impact on organisations of IS– Implementation and management of IS– IS and global organisations

• Provide awareness of IS in your role as a professional


Course Content

• Information Systems in an Organisation

• Information Systems, Organisations, Management and Strategy

• Enhancing Management Decision Making

• Managing Data and Information

• Redesigning the Organisation with Information Systems and Managing Change


Course Content

• Electronic Commerce and the Internet

• Information Systems Security and Control

• Managing International Information Systems

• Managing Assets


Tutorials

• Three case studies over semester– Information systems, organisations and

decision support– Changing organisations– International organisations and the Internet


Assessment

• One piece of individual course-work– 40% of module– Case study report– Set in week 1– Due beginning week 12 (Monday by 5:00pm)

• Exam– 60% of module


Text Book• Haag, Cummings, McCubbrey (2004). Management

Information Systems for the Information Age, 4th Edition. McGraw Hill.

• Turban, McLean, Wetherbe (1999). Information Technology for Management, 2nd Edition. John Wiley & Sons. Inc.

• Laudon, K.C. & Laudon, J.P. (2002). Management Information Systems: Managing the Digital Firm, 7th Edition. Upper Saddle River, New Jersey: Prentice-Hall International, Inc.


TopicsTopic

Introduction 1

Information Systems in an Organisation 2, 11.1

Information Systems, Organisations, Management and Strategy 3

Enhancing Management Decision Making 13

Managing Data and Information 7, 12

Redesigning the Organisation with Information Systems and Managing Change

10, 11.2/3

Electronic Commerce and the Internet 4, 8, 9

Information Systems Security and Control 14

Managing International Information Systems 16

Managing Assets 5, 6


Case Study

Planning a New Internet Business

MSIT:- Pichai Takkabutr DEC, 20101 What is Management Information Systems ? M-I-S What is Management...

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