Introduction to Management Information Systems Topic 1
OverviewInformation systems pervade almost every aspect of our lives.Whether we are withdrawing money from bank’s automaticteller machine or surfing the world wide web, hardly a daygoes by without our feeding data into, or using informationgenerated by, an information systems. In business especially,computer-based information systems generate most of theinformation we use. These systems have become essential tosuccessful business operations.
Objectives After studying this topic, students should be able to:3. Distinguish data from information and describe the characteristics used to evaluate the quality of data.4. Identify the basic types of business information systems and discuss who uses them, how they are used, and what kinds of benefits they deliver5. Identify the major steps of the systems development process and state the goal of each.6. Define the term competitive advantage and discuss how organizations are using information systems to gain such an advantage
LECTURE OUTLINE1. Overview2. Introduction To Information Systems 2.1 Information Concepts 2.2 A Business Perspective on Information 2.3 Characteristics of valuable information6. Systems Performance and Standards7. Systems and Modeling Concepts 4.1 Types of Model5. Manual vs Computerized IS10. Computer Based Information Systems 6.1 Components of a CBIS12. Positive and Negative Impact of IS13. Summary14. Tutorial
What IS a system?• A group of interrelated or interacting elements forming a unified whole, OR• A group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process (dynamic system).• Three basic interacting components: – Input – Processing (transformation process) – Output
Information Concepts• Information: Data that have been shaped into a form that is meaningful and useful to human beings.• Data: Streams of raw facts representing events occuring in organizations on the physical environment before they have been organized and arranged into a form that people can understand and use.• Computer based information systems (CBIs): Information systems that rely on computer hardware and software for processing and disseminating information.
Information as...• a resource: Like money, people, raw materials, machinery or time, information can serve as a resource, an input to the production of outputs.• an asset: Information can serve as an asset, which is the property of a person or an organization that contributes to a company’s output.• a commodity: Companies can also sell information, making it a commodity.
Information Systems Concepts (Continued)• Foundation Concepts – Fundamental concepts about the components and roles of information systems.• Information Technologies – Major concepts, developments, and management issues in information technology.
Information Systems Concepts (Continued)• Business Applications – The major uses of information systems for operations, management, and competitive advantage.• Development Processes – How business professionals and information specialists plan, develop, and implement information systems.• Management Challenges – The challenge of managing ethically and effectively.
Add Feedback and Control Loops..• And the system, now called a cybernetic system, becomes even more useful. – Self-monitoring – Self-regulating
Other System Characteristics• A system exists and functions in an environment containing other systems.• Subsystem – a component of a larger system.• Systems that share the same environment may be connected to one another through a shared boundary, or interface.• Open versus closed system.• Adaptive system
The Process of Transforming Data into Information
A Business Perspective on Information Systems• Information systems literacy: Broad-based understanding of information systems that includes behavioral knowledge about organizations and individuals using information systems and technical knowledge about computers.• Computer literacy: Knowledge about information technology, focusing on understanding how computer- based technologies work
System & Modeling Concepts• System : a set of elements or components that interact to accomplish goals• Systems components :
Modeling System• Model : an abstraction or an approximation that is used to represent reality.• Types of model : – Narrative - Physical – Schematic - Mathematical
Types of Model• Narrative model – A logical & not a physical model – Verbal & written descriptions – Reports, document & conversations• Physical Model – A tangible representation of reality – Computer designed & constructed
• Schematic Model – Graph representation of reality – Graphs, charts, figures, diagrams, illustration – Used in developing computer programs & systems.• Mathematical Model – Arithmetic representation of reality – Solving mathematical models
Manual vs Computerized IS• Manual Systems – Does not guarantee can improve system performance – Not efficient• Computerized IS : – Can improved system performance – Computer based information systems – People & procedures can perform a task efficiently without error
Computer-Based Information SystemsConsists of hardware, software, databases,telecommunications, people and proceduresthat are configured to collect , manipulate,store and process data into information.
Components of a CBIS• Hardware - computer equipment used to perform input, processing, and output activities.• Software - computer programs that govern the operation of the computer.• Database - an organized collection of facts and information, typically consisting of two or more related data files.• People - the most important element in most computer- based information systems.• Procedures - include the strategies, policies, methods, and rules for using the CBIS.
What Capabilities Do Business Expect from Using an IS??? – Provide Fast and Accurate Transaction Processing: Companies make thousands of transactions a day. A transaction can be a sale, cost of an item or service, a bank deposit, etc.• – Provide Large Capacity, Fast Access Storage: Information systems (IS) need to be able to have enough access to store corporate data and retrieve it at a quick rate.• – Provide Fast Communications (machine to machine, human to human): Companies must be able to have enough infrastructure available that employee’s can communicate by data, voice, to customers and other associates.
What Capabilities Do Business Expect from Using an IS??? – Reduce Information Overload: “The amount of information available on the Internet doubles approximately every 100 days.” (p.17) Companies can use structure systems to make sure that executives only get the information they need.• – Provide a Competitive Weapon: Companies can link their supply chains with manufacturers as Wal-Mart has done. Manufacturers are able to serve the retailers better and the retailers can avoid out of stocks and get rid of items that are not selling that fast.• – Provide Support for Decision Making: With IS systems in place employees have information that can help them better allocate resources and make decisions.
How Information Systems Support a BusinessSupport business process• Most retail stores now use CBIS to help them record customer purchases, keep track of inventory, pay employees, buy new merchandise and evaluate sales trends.Support decision making• IS help store managers and other business professionals make better decisions and also supports buyers and others to gain an advantage over other retailers in the competition for customers.Support competitive advantage• Gaining a strategic advantage over competition requires innovative application of information technologies. Eq: store management might make decision to install touch- screen kiosks in all stores with links to their e-commerce website for online shopping. This might attract new customers and build customer loyalty.•
A diagram of how 3 fundamental roles of IS support a business
Positive and Negative Impacts of Information SystemsBenefits of Information Systems• can perform calculations or process paperwork much faster than people.• can help companies learn more about the purchase patterns and preferences of their customers.• provide new efficiencies through services such as ATMs, telephone systems, or computer-controlled airplanes and air terminals.• have made possible new medical advances in surgery, radiology, and patient monitoring.• distributes information instantly to millions of people accross the world.
Positive and Negative Impacts of Information SystemsNegative Impacts of Information Systems• by automating activities that were previously performed by people, information systems may eliminate jobs.• may allow organizations to collect personal details about people that violate their privacy.• are used in so many aspects of everyday life that system outages can cause shutdowns of businesses or transportation services, paralyzing communities.• heavy users of information systems may suffer repetitive stress injury, technostress, and other health problems.• the Internet can be used to distribute illegal copies of software, books, articles, and other intellectual property.
Summary• Data - raw facts• Information - data transformed into a meaningful form• Systems development - creating or modifying existing business systems• Organization - a formal collection of people and various other resources established to accomplish a set of goals
Tutorial Answer to section discussion and problem solving questions.3. What is an information system? What are some of the ways information systems are changing our lives?4. How would you distinguish data and information? Information and knowledge?5. What are the most common types of computer based information systems used in business organizations today? Give an example of each.6. What are some of the benefits organizations seek to achieve through using information systems?