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Chapter No 1 - Foundations of Information Systems in Business
Management Information Systems
Compiled By:
Muzammil Ahmad Khan Muhammad Kashif Shaikh
Batch 2012
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HS-107 : Management Information Systems
Course Objectives:
Upon successful completion of this course, the student will be able to:
Understand the role of Information Systems (IS) in organizations.
Understand how Information Systems (IS) can be used to create competitive advantages for businesses.
Understand the key elements associated with designing Information Systems (IS).
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HS-107 : Management Information Systems
Prerequisites: Familiarity with basic computer devices and terminologies.
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MIS Books
Text Book
1. Management Information System, 8thEdition
By: James A. O' Brien , George Marakas
Reference Books
1. Management Information System, 9th Edition
By: Kenneth C. Laudon, Jane P. Laudon
2. Introduction to Information Systems: Supporting and Transforming Business
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Marks Distribution
Mid Term
____ 30
Assignment + Quizzes
____ 10
Report + Class Performance
____
10
Semester Final Paper
____
50
Total Marks
____
100
Duration of Mid-Term Paper ____ 1.5 Hours Duration of Semester Final Paper ____ 2.5 Hours
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Marks Distribution [ Sessional ]
Class Test
______________ 10 Points
Assignment
______________ 10 Points
Class Presentation
______________ 15 Points
Project
______________ 15 Points
Total Points
______________
50 Points
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MIS Website
http://www.ssuet.edu.pk/courses/hs107/mis 8B
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Course Instructors
Muzammil Ahmad Khan [email protected]
Assistant Professor, CED Room No: BS-04 Section A
Noman Ali Khan [email protected]
Assistant Professor, CED Room No: BS-02 Section B, C
Nadia Ishaq [email protected]
Assistant Professor, CED Room No: BS-02 Section D, E
Ahmad Hasan [email protected]
Lecturer, CED Room No: ISP Section F, G
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Project
Comprehensive Study of Information Systems of an Organization.
Organization Overview
Organizational Hierarchy
Main business function of the organization
Analysis of IT Department
Role/Activities and Resources of IT Department
Illustration of Computer Based Information System
System Development Life Cycle
Analysis of other business System
Sales, Marketing, Supply Chain, Accounts, HR
How IT interact with other business system?
DFD of main business function and IS
Gantt chart and PERT chart
Identification of problems/weaknesses in the existing system
Suggestions and Recommendations
Conclusion
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Course Outline
Module 1: Introduction Chapter 1: Foundations of IS in Business
Chapter 2: Competing with Information Technology
Module 2: Hard and Soft Aspect Chapter 3: Computer Hardware
Chapter 4: Computer Software
Chapter 5: Data Resource Management
Chapter 6: Telecommunications and Networks
Module 3: E-Business
Chapter 7: Electronic Business Systems
Module 4: IT in Business
Chapter 11: Developing Business/IT Strategies
Chapter 12: Developing Business/IT Solutions
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Foundations of
Information Systems in Business
Chapter
1
Management Information Systems
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1. Understand the concept of a system and how it relates to information systems
2. Explain why knowledge of information systems is important for business professionals
Identify five areas of information systems knowledge needed
3. Give examples to illustrate how business applications of information systems can support a firm’s
Business processes
Managerial decision making
Strategies for competitive advantage
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4. Provide examples of information systems from your experiences with business organizations in the real world
5. Identify challenges that a business manager might face in managing the successful, ethical development and use of information technology
6. Provide examples of the components of real world information systems
7. Become familiar with the myriad of career opportunities in information systems
Learning Objectives
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Foundation Concepts
Why study Information Systems and
Information Technology?
Vital component of successful businesses
Helps businesses expand and compete
Improves efficiency and effectiveness of
business processes
Facilitates managerial decision making and
workgroup collaboration
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What is a System?
A set of interrelated components
With a clearly defined boundary
Working together
To achieve a common set of objectives
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What is an Information System?
An organized combination of…
People
Hardware and software
Communication networks
Data resources
Policies and procedures
This system…
Stores, retrieves, transforms, and disseminates information in an organizationCompiled By: Muzammil Ahmad Khan
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Information Technologies
Information Systems
All the components and resources necessary to
deliver information and functions to the organization
Could be paper based
Information Technologies
Hardware, software, networking, data management
Our focus will be on Computer-Based Information
Systems (CBIS)
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Fundamental Roles of IS in Business
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What is E-Business?
Using Internet technologies to empower…
Business processes
Electronic commerce
Collaboration within a company
Collaboration with customers, suppliers, and other
business stakeholders
In essence, an online exchange of value
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E-Business Use
Reengineering
Internal business processes
Enterprise Collaboration Systems
Support communications, coordination and
coordination among teams and work groups
Electronic Commerce
Buying, selling, marketing, and servicing of
products and services over networks
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Types of Information Systems
Operations Support Systems
Efficiently process business transactions
Control industrial processes
Support communication and collaboration
Update corporate databases
Management Support Systems
Provide information as reports and displays
Give direct computer support to managers during decision-makingCompiled By: Muzammil Ahmad Khan
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Purposes of Information Systems
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Operations Support Systems
What do they do?
Efficiently process business transactions
Control industrial processes
Support communications and collaboration
Update corporate databases
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Types of Operations Support Systems
Transaction Processing Systems
Record and process business transactions
Examples: sales processing, inventory systems, accounting systems
Process Control Systems
Monitor and control physical processes
Example: using sensors to monitor chemical processes in a petroleum refinery
Enterprise Collaboration Systems
Enhance team and workgroup communication Examples: email, video conferencing
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Two Ways to Process Transactions
Batch Processing
Accumulate transactions over time and process periodically
Example: a bank processes all checks received in a batch at night
Online Processing
Process transactions immediately
Example: a bank processes an ATM withdrawal immediately
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Management Support Systems
What do they do?
Provide information and support for effective decision making by managers
Management information systems
Decision support systems
Executive information systemsB
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Types of Management Support Systems
Management Information Systems (MIS)
Reports and displays
Example: daily sales analysis reports Decision Support Systems (DSS)
Interactive and ad hoc support
Example: a what-if analysis to determine where to spend advertising dollars
Executive Information Systems (EIS)
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Other Information Systems
Expert Systems
Provide expert advice
Example: credit application advisor Knowledge Management Systems
Support creation, organization, and dissemination of business knowledge throughout company
Example: intranet access to best business practices
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Other Information Systems
Strategic Information Systems
Help get a strategic advantage over customer
Examples: shipment tracking, e-commerce Web systems Functional Business Systems
Focus on operational and managerial applications of basic business functions
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IT Challenges and Opportunities
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Measuring IT Success
Efficiency
Minimize cost, time, and use of information
resources
Effectiveness
Support business strategies
Enable business processes
Enhance organizational structure and culture
Increase customer and business value
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Developing IS Solutions
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Challenges and Ethics of IT
Application of IT
Customer Relationship Management Human Resources Management Business Intelligence Systems Potential Harm
Infringements on privacy Inaccurate information Collusion
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Challenges and Ethics of IT
Potential Risks Consumer boycotts Work stoppages Government intervention Possible Responses Codes of ethics Incentives Certification
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IT Careers
Economic downturns have affected all job sectors, including IT
Rising labor costs are pushing jobs to India, the Middle East, and Asia-Pacific countries
However, IT employment opportunities are strong, with new jobs emerging daily
Shortages of IT personnel are frequent
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IT Careers
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IT Careers
Job increases will be driven by…
Rapid growth in computer system design and related services
The need to backfill positions
Information sharing and client/server environments The need for those with problem-solving skills
Falling hardware and software prices, which will fuel expanded computerization of operations
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The IS Function
The IS function is…
A major functional area of business
An important contributor to operational efficiency, employee productivity, morale, customer service and satisfaction
A major source of information and support for decision making
A vital ingredient in developing competitive products and services in the global marketplace
A dynamic and challenging career opportunity A key component of today’s networked business
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System Concepts: A Foundation
System concepts help us understand…
Technology:hardware, software, data management, telecommunications networks
Applications:to support inter-connected information systems
Development:developing ways to use information technology includes designing the basic components of information systems
Management:emphasizes the quality, strategic business value, and security of an organization’s information
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What is a System?
A System is… A set of interrelated components With a clearly defined boundary Working together
To achieve a common set of objectives By accepting inputs and producing outputs In an organized transformation process
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Basic Functions of a System
Input
Capturing and assembling elements that enter the system to be processed
Processing
Transformation process that converts input into output Output
Transferring transformed elements to their ultimate destination
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Cybernetic System
All systems have input, processing, and output
A cybernetic system, a self-monitoring, self-regulating system, adds feedback and control:
Feedbackis data about the performance of a system
Controlinvolves monitoring and evaluating feedback to determine whether a system is moving toward the achievement of its goalB
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A Cybernetic System
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A Business as a System
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Other System Characteristics
If a system is one of the components of a larger system, it is a Sub-System
The larger system is an environment
Several systems may share the same environment Some may be connected via a shared boundary, or
interface
Types of Systems…
Open Adaptive
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Components of an IS
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Information System Resources
People Resources Specialists End users Hardware Resources Machines Media Software Resources Programs Procedures
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Information System Resources
Data Resources
Product descriptions, customer records, employee files, inventory databases
Network Resources
Communications media, communications processors, network access and control software
Information Resources
Management reports and business documents using text and graphics displays, audio responses, and paper forms
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Data Versus Information
Data
are raw facts about physical phenomena or business transactions
Information
is data that has been converted into meaningful and useful context for end users Examples:
Sales data is names, quantities, and dollar amounts
Sales information is amount of sales by product type, sales territory, or salesperson
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IS Activities
Inputof data resources Data entry activities
Processingof data into information
Calculations, comparisons, sorting, and so on Outputof information products
Messages, reports, forms, graphic images Storageof data resources
Data elements and databases Controlof system performance
Monitoring and evaluating feedback
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Recognizing Information Systems
Business professionals should be able to look at an information system and identify…
The people, hardware, software, data, and network resources they use
The type of information products they produce
The way they perform input, processing, output, storage, and control activities
