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MANAGEMENT
INFORMATION SYSTEMS
SERVICE
CHAPTER-1
THE FOUNDATION OF INFORMATION SYSTEMS IN BUSINESS
• Chapter 1: Introduction
• Contents:
• Information system
• Information Systems in Global Business Today
• Business processes
• Business process integration
LEARNING OBJECTIVES
• Understanding the effects of information systems on business and
their relationship to globalization.
• Explain why information systems are so essential in business
today.
• Define an information system.
• Define complementary assets and explain how they ensure that
information systems provide genuine value to an organization.
Basic concepts
• A management information system (MIS) is a system that provides
information needed to manage organizations efficiently and
effectively.
• Management Information Systems – refers to a collection of
computerized and net technologies whose objective is to support
managerial work and especially decision making
• Management Information System is an accumulation of 3 different
terms as explained below.
• System:
A system can be defined as a set of elements joined together for a
common objective.
Perspectives on Information Systems
• Information system:
• Set of interrelated components
• Collect, process, store, and distribute information
• Support decision making, coordination, and control
• Set of integrated components, collected, stored, and processed data to
provide information, knowledge, and digital products.
• Information vs. data
• Data are streams of raw facts
• Information is data shaped into meaningful form
• Information: Information simply means processed data which can be
converted into meaningful and useful form for a specific user.
Management dimension of information systems
 Management Information System, provides routine information that the company
or organization can be profitable,
• Managers set organizational strategies for responding to business
challenges
• managers to plan, organize, direct and control operations
• In addition, managers must act creatively:
• Creation of new products and services
• Occasionally re-creating the organization organizational
restructuring
The role of a manager:
• Planning: Devise short-range and long-range plans and set
goals to help achieve the plans
• Organizing: How to use resources
• Directing: Guiding employees to perform their work
• Controlling: Monitoring progress toward goals
MANAGEMENT LEVELS
• High level (strategic)
Long-range view
Planning
• Middle level (tactical)
Carry out the plan
Assemble the material
Hire the resources
Organize
• Low level (operational)
Supervisor
Directing and controlling
• Information system: Three activities produce information
organizations need
• Input: Captures raw data from organization or external environment
• Processing: Converts raw data into meaningful form
• Output: Transfers processed information to people or activities that use it
• Feedback:
• The output is returned to appropriate members of the organization to help
evaluate or correct the input stage
• Information systems used for :
• Bussines firms: to manage the operations, interact with their
customer and supplies and compete in the marketplace
• For organization: to interoranaized suppliers and electro market
place(to interact organizations together.
• Managers
Computer based information system components
Characteristics of management of information
system
• Focus on operational efficiency: what the problem is on business,
strong or weak.
• Support functional area
• Common database: storage of information on the organization
• Standard report :
The Role of Information Systems in Business Today
 Transforming business
Increase in wireless technology use, Web sites,
 Globalization opportunities
• Internet has drastically reduced costs of operating on global scal
In the emerging, fully digital firm
 Core business processes are accomplished through digital networks
Digital firms offer greater flexibility in organization and
management
• Time shifting, space shifting
• Business firms invest heavily in information
systems to achieve strategic business objectives:
• Operational excellence:
• Improvement of efficiency to attain higher profitability
• New products, services, and business models:
• Enabled by technology
• Customer and supplier intimacy:
• Serving customers raises revenues and profits
• Better communication with suppliers lowers costs
• Improved decision making
• More accurate data leads to better decisions
• Without accurate information:
• Managers Leads to:
• Overproduction, underproduction of goods and services
• Misallocation of resources
• Poor response times
• Poor outcomes raise costs, lose customers
Competitive advantage of Information Systems in
Business Today
• Competitive advantage
• Delivering better performance
• Charging less for superior products
• Responding to customers and suppliers in real time
What Is Business Process
• Business process Integration refers to a business
model wherein an acceptable business process model is
defined through the specifications of events, sequence,
hierarchy, logic of execution and the information pathways
between systems, within the same enterprise or various
interconnected enterprises.
 Business process integration (BPI) allows companies to connect
their people, data, and applications.
 With BPI, organizations can better coordinate both internally
and with partners, customers, and vendors to achieve better
results.
Business process Integration
 Businesses need a process integration solution to connect their
systems and ensure uniform access to quality, consistent data across
all sources.
• Business process Integration refers to a business model wherein an
acceptable business process model is defined through:-
the specifications of events,
sequence,
hierarchy,
logic of execution and
the information pathways between systems, within the same enterprise
or various interconnected enterprises.
What Are the Benefits of Integrated Business
Processes?
• 1. Increases Operational Efficiency
• Integrated processes improve operational efficiency and free up
employees to focus on more productive tasks like closing deals or
developing new campaigns.
• The lack of integration between software and processes hinders
productivity and only creates more work for your employees.
• Employees waste time navigating between different systems and
copying data from one source to another (which itself is time-
consuming and prone to errors).
2. Facilitates Process Automation
• Process automation lets your company automate repetitive tasks,
reduce errors, and standardize how work gets done.
• However, you’ll have a hard time automating your processes if your
systems aren’t integrated
Otherwise lack of BPI:
• Outdated information occurred
• duplicate entry date
• Higher cost in terms of product
• Poor data
• Time-consuming
Types Of Management Information Systems
Process Control: controls the transaction process
Management Reporting System: manage day-to-day
transactions.
Human resource (Enterprise collaboration/Office automation) :
used to control sub-systems together.
Expert system: high expertise, computerized system
Inventory control :
Sales and Marketing :
Accounting and finance :
Decision Support System:
chapter one(1).pptx

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chapter one(1).pptx

  • 2. • Chapter 1: Introduction • Contents: • Information system • Information Systems in Global Business Today • Business processes • Business process integration
  • 3. LEARNING OBJECTIVES • Understanding the effects of information systems on business and their relationship to globalization. • Explain why information systems are so essential in business today. • Define an information system. • Define complementary assets and explain how they ensure that information systems provide genuine value to an organization.
  • 4. Basic concepts • A management information system (MIS) is a system that provides information needed to manage organizations efficiently and effectively. • Management Information Systems – refers to a collection of computerized and net technologies whose objective is to support managerial work and especially decision making • Management Information System is an accumulation of 3 different terms as explained below. • System: A system can be defined as a set of elements joined together for a common objective.
  • 5. Perspectives on Information Systems • Information system: • Set of interrelated components • Collect, process, store, and distribute information • Support decision making, coordination, and control • Set of integrated components, collected, stored, and processed data to provide information, knowledge, and digital products. • Information vs. data • Data are streams of raw facts • Information is data shaped into meaningful form • Information: Information simply means processed data which can be converted into meaningful and useful form for a specific user.
  • 6. Management dimension of information systems  Management Information System, provides routine information that the company or organization can be profitable, • Managers set organizational strategies for responding to business challenges • managers to plan, organize, direct and control operations • In addition, managers must act creatively: • Creation of new products and services • Occasionally re-creating the organization organizational restructuring
  • 7. The role of a manager: • Planning: Devise short-range and long-range plans and set goals to help achieve the plans • Organizing: How to use resources • Directing: Guiding employees to perform their work • Controlling: Monitoring progress toward goals
  • 8. MANAGEMENT LEVELS • High level (strategic) Long-range view Planning • Middle level (tactical) Carry out the plan Assemble the material Hire the resources Organize • Low level (operational) Supervisor Directing and controlling
  • 9. • Information system: Three activities produce information organizations need • Input: Captures raw data from organization or external environment • Processing: Converts raw data into meaningful form • Output: Transfers processed information to people or activities that use it • Feedback: • The output is returned to appropriate members of the organization to help evaluate or correct the input stage • Information systems used for : • Bussines firms: to manage the operations, interact with their customer and supplies and compete in the marketplace • For organization: to interoranaized suppliers and electro market place(to interact organizations together. • Managers
  • 10. Computer based information system components
  • 11. Characteristics of management of information system • Focus on operational efficiency: what the problem is on business, strong or weak. • Support functional area • Common database: storage of information on the organization • Standard report :
  • 12. The Role of Information Systems in Business Today  Transforming business Increase in wireless technology use, Web sites,  Globalization opportunities • Internet has drastically reduced costs of operating on global scal In the emerging, fully digital firm  Core business processes are accomplished through digital networks Digital firms offer greater flexibility in organization and management • Time shifting, space shifting • Business firms invest heavily in information systems to achieve strategic business objectives:
  • 13. • Operational excellence: • Improvement of efficiency to attain higher profitability • New products, services, and business models: • Enabled by technology • Customer and supplier intimacy: • Serving customers raises revenues and profits • Better communication with suppliers lowers costs • Improved decision making • More accurate data leads to better decisions • Without accurate information: • Managers Leads to: • Overproduction, underproduction of goods and services • Misallocation of resources • Poor response times • Poor outcomes raise costs, lose customers
  • 14. Competitive advantage of Information Systems in Business Today • Competitive advantage • Delivering better performance • Charging less for superior products • Responding to customers and suppliers in real time
  • 15. What Is Business Process • Business process Integration refers to a business model wherein an acceptable business process model is defined through the specifications of events, sequence, hierarchy, logic of execution and the information pathways between systems, within the same enterprise or various interconnected enterprises.  Business process integration (BPI) allows companies to connect their people, data, and applications.  With BPI, organizations can better coordinate both internally and with partners, customers, and vendors to achieve better results.
  • 16. Business process Integration  Businesses need a process integration solution to connect their systems and ensure uniform access to quality, consistent data across all sources. • Business process Integration refers to a business model wherein an acceptable business process model is defined through:- the specifications of events, sequence, hierarchy, logic of execution and the information pathways between systems, within the same enterprise or various interconnected enterprises.
  • 17. What Are the Benefits of Integrated Business Processes? • 1. Increases Operational Efficiency • Integrated processes improve operational efficiency and free up employees to focus on more productive tasks like closing deals or developing new campaigns. • The lack of integration between software and processes hinders productivity and only creates more work for your employees. • Employees waste time navigating between different systems and copying data from one source to another (which itself is time- consuming and prone to errors).
  • 18. 2. Facilitates Process Automation • Process automation lets your company automate repetitive tasks, reduce errors, and standardize how work gets done. • However, you’ll have a hard time automating your processes if your systems aren’t integrated Otherwise lack of BPI: • Outdated information occurred • duplicate entry date • Higher cost in terms of product • Poor data • Time-consuming
  • 19. Types Of Management Information Systems Process Control: controls the transaction process Management Reporting System: manage day-to-day transactions. Human resource (Enterprise collaboration/Office automation) : used to control sub-systems together. Expert system: high expertise, computerized system Inventory control : Sales and Marketing : Accounting and finance : Decision Support System: