Management Information Systems 1
Jan 29, 2016
ManagementInformation Systems
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Course Overview & Objective
• Lecturer: Sieng Samrang, MBA, BSc
• Contact Info: Email: [email protected] Mobile Phone: 012 961 828
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• Vital component of successful businesses
• Helps businesses expand and compete
• Improves efficiency and effectiveness of business processes
• Facilitates managerial decision making and workgroup collaboration
Why study information systems and information technology?
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• Does an information system have to have a computer?
• Think of 3 examples of an information system
• So Why Use a PC?• manipulate data much faster than a human.
• They are cheaper than human labor
• They do not make mistakes
• Data can easily be moved or copied
• How do you know if an information system is
effective? Return on Investment (ROI)
Why Study Information Systems?No
Supermarket's POS, Bank’s ATM, Hotel’s Management System
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COURSE OBJECTIVE• Course Objective:
• To enable students to understand basic information technology concepts and participate in developing information systems solutions to business problems.
• To assist students to understand the fundamental concepts of real-world information systems and to demonstrate the potential advantages of state-of-the-art information technology applications in organization.
• Course synopsis:• The foundations of information systems. Information management
and its strategic role in organizations. The technical foundations of information systems; elements of information processing and the telecommunication. The contemporary tools, techniques and approaches used to build information systems.
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Course Outline
• Chapter 1: An Introduction to Information Systems
• Chapter 2: Information System in Organization
• Chapter 3: Hardware: Input, Processing and Output device
• Chapter 4: Software: System and Application Software
• Chapter 5: Organizing Data and Information
• Chapter 6: Telecommunication and Network
• Chapter 7: E-Commerce
• Chapter 8: Transaction Processing and Enterprise Resource Planning ( ERP ) System
• Course Materials:• Text book: -Laudon and Laudon. Management Information Systems:
Managing the Digital Firm (12th Ed.), Prentice Hall, 2007.
• Lecture notes: softcopy
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Assessment Model
• On-going Assessment 40%
• Mid-term Exam 20%
• Final Exam 40%
100%
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Principles of Information Systems, Seventh Edition 9
• The value of information is directly linked to how it helps decision makers achieve the organization’s goals
• Discuss why it is important to study and understand information systems
• Distinguish data from information and describe the characteristics used to evaluate the quality of data
Principles of Information Systems, Seventh Edition 10
• Models, computers, and information systems are constantly making it possible for organizations to improve the way they conduct business
• Name the components of an information system and describe several system characteristics
• Identify the basic types of models and explain how they are used
Principles of Information Systems, Seventh Edition 11
• Knowing the potential impact of information systems and having the ability to put this knowledge to work can result in a successful personal career, organizations that reach their goals, and a society with a higher quality of life
• List the components of a computer-based information system
• Identify the basic types of business information systems and discuss who uses them, how they are used, and what kinds of benefits they deliver
Principles of Information Systems, Seventh Edition 12
• System users, business managers, and information systems professionals must work together to build a successful information system
• Identify the major steps of the systems development process and state the goal of each
Principles of Information Systems, Seventh Edition 13
• Information systems must be applied thoughtfully and carefully so that society, business, and industry can reap their enormous benefits
• Describe some of the threats to security and privacy that information systems and the Internet can pose
• Discuss the expanding role and benefits of information systems in business and industry
Principles of Information Systems, Seventh Edition 14
Introduction
• Information system (IS)
• A set of interrelated components that collect, manipulate, and disseminate data and information and provide feedback to meet an objective
• Examples: ATMs, airline reservation systems, course reservation systems, Hotel Management System
Principles of Information Systems, Seventh Edition 15
Information Concepts:Data Versus Information
• Data: raw facts
• Information: collection of facts organized in such a way that they have additional value beyond the facts themselves
Data Versus Information
1200100
WestCharles Mann
79154 TM Shoes
Monthly Sales Report for West Region
Sales Rep: Charles MannEmp No. 79154Item Qty Sold PriceTM Shoes 1200 $100
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Principles of Information Systems, Seventh Edition 17
Table 1.1: Types of Data
Principles of Information Systems, Seventh Edition 18
Figure 1.1: Defining and Organizing
Relationships Among Data Creates Information
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Figure 1.2: The Process of Transforming Data into Information
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Table 1.2: Characteristics of Valuable Data
Principles of Information Systems, Seventh Edition 21
Table 1.2: Characteristics of Valuable Data (continued)
Principles of Information Systems, Seventh Edition 22
System and Modeling Concepts
• System: a set of elements or components that interact to accomplish goals
• Components of a system
• Input
• Processing
• Output
• Feedback
Principles of Information Systems, Seventh Edition 23
Figure 1.3: Components of a System
Principles of Information Systems, Seventh Edition 24
System Components and Concepts
• System boundary: defines the system and distinguishes it from everything else (i.e., the environment)
• Configuration: the way system elements are organized or arranged
• Systems can be classified as simple or complex, open or closed, stable or dynamic, adaptive or nonadaptive, and permanent or temporary
Principles of Information Systems, Seventh Edition 25
Table 1.3: Systems Classifications and
Their Primary Characteristics
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System Performance and Standards
• Efficiency: a measure of what is produced divided by what is consumed
• Effectiveness: extent to which system attains its goals
• System performance standard: a specific objective of a system
Principles of Information Systems, Seventh Edition 27
System Variables and Parameters
• System variable: quantity or item controlled by the decision maker
• System parameter: value or quantity that cannot be controlled (e.g., the cost of a raw material)
Principles of Information Systems, Seventh Edition 28
Modeling a System
• Model: an abstraction that is used to represent reality
• Four major types of models: narrative (based on words); physical (tangible); schematic (graphic representation); mathematical (arithmetic representation)
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Figure 1.6: Four Types of Models
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Figure 1.7: The Components of an Information System
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Input, Processing, Output, Feedback
• Input: activity of gathering and capturing raw data
• Processing: converting or transforming data into useful outputs
• Output: production of useful information, usually in form of documents and reports
• Feedback: output used to make changes to input or processing activities
Principles of Information Systems, Seventh Edition 32
Computer-Based Information Systems
• Computer-based information system (CBIS)
• A single set of hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information
• Examples: a company’s payroll systems, order entry system, and inventory control systems
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Figure 1.8: The Components of a Computer-Based Information System
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Business Information Systems
• Most common types of information systems used in business organizations include:
• Electronic and mobile commerce systems
• Transaction processing systems
• Management information systems
• Decision support systems
Principles of Information Systems, Seventh Edition 35
Electronic and Mobile Commerce
• E-commerce: any business transaction executed electronically between parties
• Parties involved include companies (B2B); companies and consumers (B2C); consumers and other consumers (C2C); businesses and the public sector; consumers and the public sector
Principles of Information Systems, Seventh Edition 36
Transaction Processing Systems and Enterprise Resource Planning
• Transaction: any business-related exchange, such as payments to employees, sales to customers, and payments to suppliers
• Transaction processing system (TPS): an organized collection of people, procedures, software, databases, and devices used to record completed business transactions
Principles of Information Systems, Seventh Edition 37
Figure 1.11: A Payroll Transaction Processing System
The inputs (numbers of employee hours worked and pay rates) go through a transformation process to produce outputs (paychecks)
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Enterprise Resource Planning
• Enterprise resource planning (ERP) system: set of integrated programs that can manage a company’s entire set of business operations
• ERP systems often coordinate planning, inventory control, production, and ordering
Principles of Information Systems, Seventh Edition 39
Information and Decision Support Systems
• Management information system (MIS): an organized collection of people, procedures, software, databases, and devices that provides routine information to managers and decision makers
• Primary focus of an MIS is on operational efficiency
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Figure 1.12: Functional Management Information Systems
Principles of Information Systems, Seventh Edition 41
• MIS outputs
• Scheduled reports
• Demand reports
• Exception reports
Management Information Systems
Principles of Information Systems, Seventh Edition 42
Decision Support Systems
• Decision support system (DSS): an organized collection of people, procedures, software, databases, and devices used to support problem-specific decision making
• Focus of a DSS is on decision-making effectiveness
Principles of Information Systems, Seventh Edition 43
Figure 1.13: Essential DSS Elements
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Specialized Business Information Systems
• Artificial intelligence (AI) systems
• Virtual reality systems
• Expert systems
• Other special-purpose business information systems
Principles of Information Systems, Seventh Edition 45
Figure 1.14: The Major Elements of Artificial Intelligence
Principles of Information Systems, Seventh Edition 46
Systems Development
• Systems development: the activity of creating or modifying existing business systems
• Systems investigation: gaining a clear understanding of the problem to be solved or opportunity to be addressed
• Systems analysis: defines the problems and opportunities of the existing system
Principles of Information Systems, Seventh Edition 47
Figure 1.17: An Overview of Systems Development
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Systems Development (continued)
• Systems design: determines how new system will work to meet business needs defined during systems analysis
• Systems implementation: creating or acquiring the various system components defined in design step, assembling them, and putting new system into operation
• Systems maintenance and review: check and modify system so that it continues to meet changing business needs
Principles of Information Systems, Seventh Edition 49
Information Systems in Society, Business, and Industry
• Information systems must be implemented thoughtfully and carefully
• Information systems face a variety of threats from unethical people
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Figure 1.18: Attacks on Businesses and Other Organizations in One Year
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Figure 1.19: The Cost and Cause of Computer Attacks
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Computer and Information Systems Literacy
• Computer literacy: knowledge of computer systems and equipment and the ways they function
• Information systems literacy: knowledge of how data and information are used
Principles of Information Systems, Seventh Edition 53
Information Systems in the Functional Areas of Business
• Finance and accounting (e.g., forecast revenues and business activity; analyze investments; perform audits)
• Sales and marketing (e.g., product analysis; promotion analysis; price analysis)
• Manufacturing (e.g., process orders; develop schedules; control inventory)
Principles of Information Systems, Seventh Edition 54
Information Systems in Industry
• Airline industry (e.g., Internet auction sites)
• Investment firms (e.g., analyze stocks and bonds)
• Banks (e.g., online check payment)
• Transportation industry (e.g., schedule trucks and trains)
• Publishing companies (e.g., analyze markets)
Principles of Information Systems, Seventh Edition 55
Information Systems in Industry (continued)
• Healthcare organizations (e.g., track patient records)
• Retail companies (e.g., process customer orders)
• Power management and utility companies (e.g., monitor and control power generation and usage)
• Professional services (e.g., provide information on products and services to its consultants)
Principles of Information Systems, Seventh Edition 56
Summary
• Data: raw facts
• Information: collection of facts organized in such a way that they have value beyond the facts themselves
• System: a set of elements that interact to accomplish a goal
• Components of a system: input, processing, output, and feedback
• A model is an abstraction that is used to represent reality
Principles of Information Systems, Seventh Edition 57
Summary (continued)
• Computer-based information system (CBIS): a single set of hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information
• Transaction processing system (TPS): an organized collection of people, procedures, software, databases, and devices used to record completed business transactions
Principles of Information Systems, Seventh Edition 58
Summary (continued)
• Management information system (MIS): an organized collection of people, procedures, software, databases, and devices used to provide routine information to managers and decision makers
• Decision support system (DSS): an organized collection of people, procedures, software, databases, and devices used to support problem-specific decision making
• Systems development: the activity of creating or modifying existing business systems