1 C H A P T E R CP3507 – MIS Course Introduction.

1

C H A P T E R

CP3507 – MIS

Course Introduction

Several Terms

• E-World; Digital Age; Digital Firms• Information Technology (IT)• Information Systems (IS)• Office Workers; Knowledge Workers • End-Users; End-User Managers• E-Business; E-Commerce• Business initiatives drive IT choices

Information Technology (IT)

• Computer Technology Hardware and Software Processing and Storing Information

• Communication Technology Transmitting information

The MIS Concept

  The MIS concept addresses the use of IT to improve individual and organizational performance at two levels :

1) producing “better” tangible outputs

2) developing tools and processes that allow better management decision making

Level 1: “Better” Tangible Outputs

• IT is used to make the process in producing a tangible output more efficient and more effective

Level 2 : Intangible Outputs

• A schematic view - the information/decision level

• MIS involves identifying the key decisions that are related to reaching objectives, on determining the proper information needed to make these decisions, and on improving the decision processes employed to make the decisions.

• Implications: Activity at this level concentrates on developing tools and processes that allow better management decision making

The MIS Concept - Level 2:Intangible Outputs (achieving desired objectives)

D ata

In fo rm ation D ec is ion P rocesses

D ec is ion s

G oa ls /O b jec tives

System Concepts

• What is a system?A set of components that interact to accomplish goalsSystems can be viewed as process models in terms of their inputs,

outputs, processing, and feedback/control mechanisms. Examples.

• What is an IS?A set of interrelated components that

collect input, process, and output data and information and provide a feedback/control mechanism

• What is a CBIS?An IS that uses IT.Components: hardware, software, databases, networks, people,

procedures

System Examples

1) University – an example Inputs: students, faculty, textbooks Processing mechanisms: teaching, research, service Output: graduates Goal: acquisition of knowledge

2) The Manufacturing System

3) Other Examples

ManufacturingProcess

Input ofRaw Materials

Output ofFinished Products

Environment

Other Systems

Control byManagement

ControlSignals

ControlSignals

FeedbackSignals

FeedbackSignals

System Boundary

A Manufacturing System: Generic Components

Systems: Some Examples

• University Inputs: Students, Faculty,

Textbooks Processes:

Education/Courses Output: graduates Feedback: surveys, grades

• Toyota Plant Inputs: raw materials,

components Processes: assembly line Output: mini-vans Feedback: customer surveys,

quality reports

• Fast Food IS Inputs: consumer orders Processes: processing

software Output: receipts, cook’s

order list Feedback: invalid entry

message• Video Store IS

Inputs: rentals, returns Processes: processing

software Output: reports, rental

agreement Feedback: error repots

Input, Processing, Output, Feedback/Control

INPUTSGathering and capturing raw data

INPUTSGathering and capturing raw data

PROCESSINGConverting or transforming data into useful outputs

PROCESSINGConverting or transforming data into useful outputs

OUTPUTSProducing useful information, usually in the form of documents.

OUTPUTSProducing useful information, usually in the form of documents.

Feedback/Control

Output that is used to make changes to input or processing activities

Procedures

• Procedures - set of instructions used by people to complete a task

• Procedures include the strategies, policies, methods, and rules for using the CBIS.

• Examples: procedures describe When each program is to be run Who can have access to database What is to be done in case of a disaster

System Performance Standards:Efficiency and Effectiveness

Efficiency: a measure of what is produced divided by what is consumed

• an improved product• the same level product

produced cheaper or faster

• the improvement in the product exceeds the increased cost

Effectiveness: a measure of the extent to which a system achieves its goals.

• Goal: to reduce damaged parts by 100 units

• Q: Actual reduction in damaged parts using a control system is only 85 units. Effectiveness?

• A: The effectiveness of the control system is 85 percent

What You Need to Know

• Foundation Concepts: Fundamental concepts about the components and roles of IS

• IT: Major concepts, developments, and management issues in information technologies

• Business Applications: The major uses of IS for the operations, management, and competitive advantage

• Development Processes: How end users or information specialists develop and implement IS

• The challenges of effectively and ethically managing information technologies, strategies, and security at the end user, enterprise, and global levels of a business

Major Roles of Information Systems

Support of Strategic

Advantage

Support of Managerial

Decision Making

Support of Business Operations

History of the Role of IS

Data Processing

ManagementReporting

DecisionSupport

Strategic &End User

Electronic Commerce

1950-1960 1960-1970 1970-1980 1980-1990 1990-2000

ElectronicData Processing- TPS

ManagementInformationSystems

DecisionSupportSystems- Ad hoc Reports

End UserComputingExec Info SysExpert SystemsSIS

ElectronicBusiness & Commerce-InternetworkedE-Business &Commerce

Trends in ISs

• Data Processing: 1950s - Transaction processing, record keeping, traditional accounting

applications• Management Reporting: 1960s -

MIS – predefined management reports for decision-making purposes

• Decision Support: 1970s - DSS – interactive ad hoc support of the managerial decision-

making process• Strategic and End User Support: 1980s -

EUC, Executive Information Systems, Expert Systems, Strategic Information Systems

• Electronic Business and E-Commerce: 1990s -

Manufacturingand

Production

Engineering &Research

Accounting,Finance, andManagement

Suppliers and Other Business Partners

Procurement, Distribution, and Logistics

Advertising Sales Customer Service

Consumer and Business Customers

CompanyBoundary

Intranets

The Internet

Extranets

Ext

ran

ets

The Electronic Business

• What uses of IT might be considered improper, irresponsible, or harmful to other individuals or to society?

• What is the proper use of an organization’s information resources?

• What does it take to be a responsible end user of IT?

• How can you protect yourself from computer crime and other risks of IT?

Ethical Dimensions of IT