1. We Are in the Information Age.
A Time When...
Knowledge is power
Knowledge workers outnumber all other
workers by a 4 to 1 margin
Introduction
A KNOWLEDGE WORKER works with
and produces information as a product. As
a knowledge worker, how do you work with
and produce information?
1-2
2. YOUR FOCUS IN THIS CHAPTER
Management Information Systems & The
MIS Challenge
Factors Shaping Business Today
The Role of IT in the Information Age
Information as a New Business Resource
Your Role as a Knowledge Worker
Introduction
1-3
3. MANAGEMENT INFORMATION
SYSTEMS (MIS)...
deals with the planning for, development,
management, and use of information
technology tools to help people perform
all tasks related to information
processing and management.
Introduction
1-4
4. MIS Deals with Three Important
Organizational Resources:
1. Information
2. Information technology
3. People (the most important).
Introduction
Can you find those 3 resources for the
organizations in Photo Essay 1-1 on pages 6-7?
1-5
5. The MIS Challenge
All businesses must strive to meet The MIS
Challenge. The complete MIS Challenge is in
Figure 1.1 on page 5.
1-6
THE MANAGEMENT
INFORMATION SYSTEMS
CHALLENGE
What businesses do
Customer moment of value
The role of information technology
6. WHAT DO BUSINESSES DO?
They service their customers.
Never forget the customer is number one.
The MIS Challenge
1-7
7. CUSTOMER MOMENT OF VALUE
is providing service...
The MIS Challenge
1.When the customer wants it (time)
2.Where the customer wants it (location)
3.How the customer wants it (form), and
4.Guaranteed to the customer (perfect
delivery)
1-8
8. THE ROLE OF INFORMATION
TECHNOLOGY
Information technology (IT) is a set of tools that
can help provide the right people with the
right information at the right time.
The MIS Challenge
REMEMBER: What you don’t know may put
you out of business.
1-9
9. Businesses Use Information
Technology in 3 Ways:
1. To support information-processing tasks.
2. As an enabler of innovation.
3. As a collapser of time and space.
Information Technology
1-22
10. TO SUPPORT INFORMATION-
PROCESSING TASKS
1. CAPTURING information - at its point of origin.
2. CONVEYING information - in its most useful form.
3. CREATING information - to obtain new
information.
4. CRADLING information - for use at a later time.
5. COMMUNICATING information - to other people
or another location.
Information Technology
1-23
11. AS AN ENABLER OF
INNOVATION
IT is not innovation all by itself.
IT, however, can enable innovation.
FedEx used IT to build customer-oriented
tracking software.
Information Technology
What other examples of IT innovation can
you think of?
1-24
12. AS A COLLAPSER OF TIME AND
SPACE
A typical CD-ROM can hold 650 million
characters of information. That’s:
– 325,000 pages of text, or
– 650 500-sheet reams of paper.
In early 2000, the typical home computer
was capable of performing 500 million
instructions per second. How fast are they
today?
Information Technology
1-25
13. INFORMATION AS A NEW
BUSINESS RESOURCE
Information
Information is a key resource in The MIS
Challenge. But what is information?
DATA - are any raw facts or observations that
describe a particular phenomenon.
INFORMATION - is simply data that has a
particular meaning within a specific context.
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14. DIMENSIONS OF INFORMATION -
DEFINING VALUE
TIME DIMENSION - the “when” aspect of
information.
CONTENT DIMENSION - the “what” aspect
of information.
FORM DIMENSION - the “how” aspect of
information.
Information
You can determine the value of information by
evaluating its dimensions.
1-27
15. DIMENSIONS OF INFORMATION
TIME - when
– Timeliness
– Currency
Information
FORM - how
–Detail
–Presentation
CONTENT- what
–Accuracy
–Relevance
–Completeness
1-28
16. Information Management
An internal operation that arranges the
firm’s information resources to support
business performance and outcomes
information managers are responsible for:
– generating information
– analyzing information
– dissemination of information to
facilitate the decision-making process
17. Data vs. Information
data are raw facts and figures
information is a meaningful and useful
interpretation of the data
data are processed to become information
example:
– data include raw data about clients’ purchases,
account balances
– information is a printout showing whose
accounts are up-to-date and whose are overdue
18. Converting Data to Information
Input (Data) Output
(Information)
Process
Text, format
commands
Text, images,
line work
Accounting
data
Sales, cost of
sales data
Word
processor
Page layout/
publishing
General ledger
program
Break-even
software
Finished
document
Financial
statements
Page proofs for
production
Break-even
analysis
19. Information Systems (IS)
an organized method of transforming
data into information that can be used
for decision making
necessary to determine what information
is needed and how it will be produced
must ensure that only those who are
supposed to have access to the
information can get a hold of it
20. New Options for Organizational
Design: The Networked Enterprise
The structure of business organizations is
changing due to the information
technologies in use:
– Leaner organizations
– More flexible operations
– Increased collaboration (internal & external)
– Improved management processes
21. Types of Information Systems
An information system
consists of many
different systems,
sharing information,
serving different levels
within the organization
Systems can be
matched to users at
different levels in the
firm
Top Level: Strategic IS
Mid-Level: Management IS
Knowledge Workers:
Knowledge IS
First-Level: Operational IS
Matching Users to Systems
22. Transaction Processing Systems
(TPS)
Applications of information
processing for basic day-to-
day business transactions
– Payroll
– Customer order-taking and
processing
– Customer billing
– Management reports
23. Other Information Systems
Management Information Systems (MIS):
– Systems that support an organization’s managers by
providing daily reports, schedules, plans, and budgets
Decision Support System (DSS):
– Computer systems used to help managers consider
alternatives when making decisions on complicated
problems
Executive Support Systems (ESS):
– A quick-reference, easy-access application of
information systems specially designed for upper-level
management
24. Artificial Intelligence (AI)
the programming and development of computers
to imitate human thought, learning, reasoning, and
intelligence
artificial senses include vision, hearing, and
feeling, and facial recognition
ability to process natural (not machine) languages
to respond to human voice commands
includes robotics
25. Expert Systems
a special form of artificial
intelligence that makes decisions or
aids employees with specific tasks,
using decision/processing rules
provided by area experts
allows non-experts to arrive at a
solution to a problem simply by
using the software
26. The Elements of the Information
System
Hardware
Software
Control
Database
People
Telecommunications
27. Software
programs that instruct the
computer what to do and how to
do it
systems programs: tell the
computer what resources to use
and how to use them (only one
operating system per computer)
application programs: process
data to meet the needs of users
(may be many in a computer)
language program allows users to
write instructions for the
computer (e.g.: FORTRAN)
object-oriented technology:
modern programming tools that
write code in small reusable
chunks (objects) that can be
inserted into programs as needed
graphic user interface (GUI):
user-friendly computer displays
with icons for point-and-click ease
of use
icons: small images on the
computer screen that represent
various applications
28. Control
ensures computer is operating within
established parameters
address: security and privacy issues, virus
protection, piracy protection, disaster recovery
virus: harmful programs created and spread by
vandals seeking to disrupt computer operations
piracy: illegal copying of programs that are
privately owned
security: protection of programs or data from
unauthorized users (hackers) with electronic
firewalls
29. Processing Methods
batch: data are combined into a
group that is processed all at once,
often after hours or overnight
online: data are entered and
immediately processed (may be
required for very volatile data, such
as keeping track of credit card
balances)
30. Computer Applications
for Business
word processing: sophisticated text editing and layout
programs to store, edit, and type letters, numbers, reports
(e.g.: Word, WordPerfect)
spreadsheet: electronic spreadsheets allow manipulation
of financial information (e.g.: Excel, Quattro Pro, Lotus)
database management: maintains and monitors the data
generated by a business (e.g.: DBase, Access, Paradox)
graphics: high quality photographic layout, design and
drawing software (e.g.: Quark Xpress, Harvard Graphics,
PageMaker, CorelDraw)
31. Databases
A centralized collection of central data that can be
sorted and analyzed as required to meet highly
specialized information needs.
David McKay 14 Willow Cres., (000) 123-4567
Customer Record
Customer Fields
Susan Campbell
Michael Powell
Claire Matthews
Customer File
(Related Records)
32. System Architecture
computers at different locations can function
independently but are interconnected as well to allow
information exchange as required
wide area network (WAN): networks that cover a vast
geographic area
local area network (LAN): a network that links a single
office environment, a single building, or a small
geographic area
wide area networks may rely on telephone or satellite
transmission, while local area networks rely on hard
wiring (cable)
33. Client-Server Systems
server: a component that can be shared by LAN
users
client: PCs that are linked by means of a LAN
the server may be a file server (sharing
programs and data) and/or a print server
(controlling all print jobs)
Client-server network: a network composed of
both clients (users) and servers that allow clients
to access various services without costly and
unnecessary duplication
Editor's Notes
3
4
5
6
Discussed on pages 389-390.
Activities:
Review Questions: #1, 3.
Discussed on pages 392-393.
Activities:
Review Questions: #1, 3.
Discussed on pages 395-396.
Activities:
Review Questions: #1, 3.
Discussed on page 397.
Activities:
Review Questions: #1, 3.