2. Unit
UNIT I
Foundation of
Information
Systems
Management Information Systems
Topics
System Concept: Definition of
System, Components of the System,
Types of System, Concept of Data and
Information
Information Systems: Definition of
Information System, Classification of
Information
System
,
Operation
support system, Management support
system, Importance of Management
Information System
GLA Group of Institutions, Mathura
4. Chapter Objectives
Explain why knowledge of information systems is
important for business professionals and identify
five areas of information systems knowledge they
need.
Management Information Systems
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6. Five areas of knowledge are for information systems:
Foundation Concepts. End users must be familiar with the basic
components and types of information systems
Information Technology . End users should understand
technology, more precisely, the information technology of hardware,
software, telecommunications, database management.
Business Applications . How information systems are applied to
business problems is more complex than it might seem.
Management Information Systems
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7. Development Processes . End users of IS need to know
the fundamental concepts of problem-solving and
development
Management Challenges . How manager. Here you
should become familiar with methodologies such as the
systems approach, the systems development life cycle, and
prototyping s make use of IS resources is a key concern
for end users.
Management Information Systems
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8. An Information System is an
organized combination of people,
hardware, software, communications
networks, and data resources that
collects, transforms, and disseminates
information in an organization.
Key concepts of the text include:
Management Information Systems
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9. Components of an Information System
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Hardw
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People
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Management Information Systems
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10. Information Technology (IT). The dynamic
interaction of computer-based information systems
with telecommunications forms the backbone of IT.
End User Perspective. An end user is anyone
who uses an information system or the information
it produces. As a perspective on management
information systems, the end user focuses designers,
developers, and all information systems personnel
on how the system does and should function in use.
Information systems are powerful tools -- and all
the more powerful when made to fit the needs of
those who use them everyday. This involves
adapting the system to the user, not the other way
around.
Management Information Systems
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11. An Enterprise Perspective .
Information technology can provide the
information a business needs for
efficient operations. It can even be the
foundation of a company's competitive
advantage. But to function properly, an
information system must be developed
in support of the strategic objectives,
business operations, and management
needs of the enterprise.
Management Information Systems
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12. What is an information system?
This information system model expresses a fundamental
conceptual framework for the major components and activities
of information systems. An information system depends on the
resources of people (end users and IS specialists), hardware
(machines and media), software (programs and procedures),
data (data and knowledge bases), and networks
(communications media and network support) to perform
input, processing, output, storage, and control activities that
covert data resources into information products.
Data resources are transformed by information processing
activities into a variety of information products for end users.
•
Information processing consists of input, processing, output,
storage and control activities.
Management Information Systems
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13. What is System?
Control of System Performance
Control of System Performance
Input of
Input of
Data
Data
Resources
Resources
Processing
Processing
Data
Data
Output of
Output of
Information
Information
Products
Products
Storage of Data Resources
Storage of Data Resources
Management Information Systems
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14. fundamentals of systems theory
System. A system is a group of interrelated components
working together toward a common goal by accepting inputs
and producing outputs in an organized transformation process.
Systems have the following three basic interacting functions.
Input. Input involves capturing and assembling elements that
enter the system to be processed.
Processing. Processing involves the transformation of input
into output.
Output. Output is the end result of the transformation
process. Output involves transferring elements that have been
produced by a transformation process to their ultimate
destination.
Management Information Systems
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16. components and activities of
information system Model
People Resources . People are required for operation of
all ISs. People resources include:
• End Users. As mentioned, these people use the IS or
the information it produces.
• IS Specialists. These people develop and operate the
IS.
Hardware Resources . These include all the physical
devices and materials used in information processing,
including all machines and data media. Key components
include:
Management Information Systems
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17. • Computer Systems. These are the CPUs and their
related peripherals, such as terminals and networked
PCs.
• Computer Peripherals. These are input and output
devices like keyboards, monitors, and secondary
storage.
• Telecommunications Networks. These are the
computer systems interconnected by various
telecommunications media such as modems.
• Software Resources . These include all sets of information
processing instructions. Software resources include:
• System Software. This controls the computer.
•
Application Software. These are for a specific end user task,
such as word-processing.
•
Procedures. These are the operating instructions for the people
who use the IS.
Management Information Systems
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18. Components of an Information
System
Management Information Systems
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19. Data versus Information
ann
100 rles M
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Cha Shoe
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est
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791
Management Information Systems
Monthly Sales Report
for West Region
Sales Rep: Charles Mann
Emp No. 79154
Item
Qty Sold Price
TM Shoes 1200
$100
GLA Group of Institutions, Mathura
20. Data versus Information
•
•
•
•
Data:
Data is the plural of datum, though data commonly represents both
singular and plural forms.
Data are raw facts or observations, typically about physical
phenomena or business transactions.
Data should be viewed as raw material resources that are processed
into finished information products.
Data are usually subjected to a value-added process (data processing
or information processing) where
• Its form is aggregated, manipulated, and organized
• Its content is analyzed and evaluated
• It is placed in a proper context for a human user
Management Information Systems
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21. Data versus Information
•
•
Information:
Information can be defined as data that
have been converted into a meaningful and
useful context for specific end users.
Information should be viewed as processed
data which has been placed in a context
that gives it value for specific end users.
Management Information Systems
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23. Attributes of Information Quality
Time Dimension:
Timeliness Information should be provided when it is
needed
Currency Information should be up-to-date when it is
provided
Frequency Information should be provided as often as
needed
Time Period
Information can be provided about
past, present, and future time periods.
Management Information Systems
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24. Attributes of Information Quality
Content Dimension:
Accuracy
Information should be free from errors
Relevance
Information should be related to the information needs
of a specific recipient
for a specific situation
Completeness All the information that is needed should be provided
Conciseness Only the information that is needed should be
provided
Scope
Information can have a broad or narrow scope, or an
internal or external focus
Performance Information can reveal performance by measuring
activities accomplished,
progress made, or resources
accumulated.
Management Information Systems
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25. Attributes of Information Quality
Form Dimension:
Clarity
Information should be provided in a form that
is easy to understand
Detail
Information can be provided in detail or
summary form
Order
Information can be arranged in a
predetermined sequence
Presentation
Information can be presented in
narrative, numeric, graphic, or other forms.
Media
Information can be provided in the form of
printed paper documents, video displays, or
other media.
Management Information Systems
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27. Logical Data Elements
Storage is the information activity in which data and
information are retained in an organized manner for
latter use. For storage purposes, data are typically
organized into the following categories:
Field. A field is a grouping of characters that represent a
characteristic of a person, place, thing, or event. On the
slide, a person's name constitutes a field.
Record. A record is a collection of interrelated fields.
For example, an employee's payroll record usually
contains several fields, such as their name, social security
number, department, and salary.
Management Information Systems
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28. Logical Data Elements
File. A file is a collection of interrelated
records. For example, a payroll file might
contain all of the payroll files for all the
employees of a firm.
Database. A database is an integrated
collection of interrelated records or files.
For example, the personnel database of a
firm might contain payroll, personnel
action, and employee skills files.
Management Information Systems
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29. Major Roles of Information Systems
Support
Strategies for
Competitive Advantage
Support
Business Decision Making
Support
Business Processes and Operations
Management Information Systems
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30. Major Roles of Information
Systems
Information Technology is increasingly important in the
competitive marketplace. Managers need all the help
they can get. Information systems perform three vital
roles in business:
Support Business Operations . From accounting to
tracking customers' orders, information systems provide
management with support in day-to-day business
operations. As quick response becomes more important,
the ability of information systems to gather and integrate
information across business functions is become crucial.
Management Information Systems
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31. Major Roles of Information
Systems
Support Managerial Decision Making .
Just as information systems can combine
information to help run the business better, the
same information can help managers identify
trends and to evaluate the outcome of previous
decisions. IS helps managers make better,
quicker, and more informed decisions.
Support Strategic Advantage . Information
systems designed around the strategic objectives
of the company help create competitive
advantages in the marketplace.
Management Information Systems
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32. History of the role of
Information Systems
1950-1960
1960-1970
1970-1980
1980-1990
1990-2000
Data
Processing
Management
Reporting
Decision
Support
Strategic &
End User
Electronic
Commerce
Electronic
Data
Processing
- TPS
Management
Information
Systems
Management Information Systems
Decision
Support
Systems
- Ad hoc
Reports
End User
Computing
Exec Info Sys
Expert Systems
SIS
Electronic
Business &
Commerce
-Internetworked
E-Business &
Commerce
GLA Group of Institutions, Mathura
33. History of the role of
Information Systems
Data Processing: 1950s - 1960’s:
Electronic data processing systems. Transaction processing,
record-keeping, and traditional accounting applications
Management Reporting: 1960s - 1970’s:
Management Information systems. Management reports of
prespecified information to support decision making.
Decision Support: 1970s - 1980s:
Decision Support systems. Interactive ad hoc support of the
managerial decision-making process.
Management Information Systems
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34. Strategic and End User Support: 1980s - 1990’s:
End User computing systems. Direct computing support for
end user productivity and work group collaboration.
Executive information systems. Critical information for top
management
Expert systems: Knowledge-based expert advice for end
users
Strategic Information Systems. Strategic products and
services for competitive advantage
Electronic Business and Commerce: 1990’s 2000’s:
Internetworked e-business and e-commerce Systems.
Internetworked enterprise and global e-business operations
and e-commerce on the Internet, intranets, extranets, and
other networks.
Management Information Systems
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35. The e-Business Enterprise
The Internet
Suppliers and Other Business Partners
Extranets
Supply Chain Management
Procurement, Distribution, and Logistics
Manufacturing
and
Production
Engineering &
Research
Company
Boundary
Accounting,
and Finance
Intranets
Customer Relationship Management
Marketing
Sales
Customer Service
Extranets
Consumer and Business Customers
Management Information Systems
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36. The e-Business Enterprise
The Internet and related technologies and applications is
revolutionizing the way businesses are operated and
people work, and how information technology supports
business operations and end user work activities.
Businesses are quickly becoming e-business
enterprises .
• The Internet and Internet-like networks - inside the
enterprise (intranets), and between an enterprise and its
trading partners (extranets) - have become the primary
information technology infrastructure that supports the
business operations of many companies. Institutions, Mathura
Management Information Systems
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37. The e-Business Enterprise
E-business enterprises rely on such technologies
as to:
1. Reengineer and revitalize internal business processes
2. Implement electronic commerce systems among
businesses and their customers and suppliers.
3. Promote enterprise collaboration among business
teams and workgroups.
E-Business: is defined as the use of Internet
technologies to internetwork and empower business
processes, electronic commerce, and enterprise
communication and collaboration within a company and
Managementwith its Systems
Information customers, suppliers, and other of Institutions, Mathura
GLA Group business
38. Types of Information Systems
Information Systems
Operations
Management
Support
Support
Systems
Systems
Transaction
Process
Enterprise
Management
Decision
Executive
Processing
Control
Collaboration
Information
Support
Information
Systems
Systems
Systems
Systems
Systems
Systems
Management Information Systems
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39. Types of Information Systems
Information Systems can be classified by the type of the support
they provide an organization.
•Operations support systems process data generated by
and used in business operations. They produce a variety of
information products for internal and external use. Operations
support systems do not emphasize producing the specific
information products that can best be used by managers.
Further processing by management information systems is
usually required. The role of a business firm’s operations
support systems is to:
1. Effectively process business transactions
2. Control industrial processes
3. Support enterprise communications and collaboration
4. Update corporate databases.
Management Information Systems
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40. •
Management support systems assist managers in
decision making. Providing information and support for
decision making by all types of managers and business
professionals is a complex task. Conceptually, several
major types of information systems support a variety of
decision-making responsibilities.
1. Management information systems - provide
information in the form of reports and displays to
managers and many business professionals.
2. Decision support systems - give direct computer
support to managers during the decision-making process.
3. Executive information systems - provide critical
information from a wide variety of internal and external
sources in easy-to-use displays to executives and
managers.
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41. Other Categories of Information
Systems
Expert Systems
Expert Systems
Knowledge Management Systems
Knowledge Management Systems
Functional Business Systems
Functional Business Systems
Strategic Information Systems
Strategic Information Systems
Cross-Functional Information Systems
Cross-Functional Information Systems
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42. Other Categories of Information
Systems
Expert Systems : Knowledge-based systems that
provide expert advice and act as expert consultants to
users. Examples: credit application advisor, process
monitor, and diagnostic maintenance systems.
Knowledge Management Systems : are knowledgebased information systems that support the creation,
organization, and dissemination of business knowledge to
employees and managers throughout a company.
Examples: intranet access to best business practices, sales
proposal strategies, and customer problem resolution
systems.
Management Information Systems
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43. Other Categories of Information
Systems
Functional Business Systems : Support a variety of
operational and managerial applications in support of
basic business functions of a company. Examples:
information systems that support applications in
accounting, finance, marketing, operations management,
and human resource management.
Strategic Information Systems: are information
systems that support operations or management processes
that provide a firm with strategic products, services, and
capabilities for competitive advantage. Examples: online
stock trading, shipment tracking, and e-commerce Web
systems.
Management Information Systems
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44. Other Categories of Information
Systems
Cross-Functional Information
Systems: are information systems that are
integrated combinations of business
information systems, thus sharing
information resources across the functional
units of an organization
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45. The Information Systems Development Process
Management Information Systems
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46. The Information Systems
Development Process
The traditional information systems development cycle is
based upon the stages in the systems approach to problem
solving:
Systems Investigation . This stage may begin with a
formal information systems planning process to help sort
out choices from many opportunities. Typically, due to
the expense associated with information systems
development this stage includes a cost/benefit analysis as
part of a feasibility study. This stage is covered in more
detail on the following slide.
Management Information Systems
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47. The Information Systems
Development Process
Systems Analysis . This stage includes an analysis of
the information needs of end users, the organizational
environment, and any system currently used to develop
the functional requirements of a new system.
Systems Design. This stage develops specifications for
the hardware, software, people, and data resources of the
system. The information products the system is expected
to produce are also designated.
Management Information Systems
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48. The Information Systems
Development Process
Systems Implementation . Here the
organization develops or acquires the hardware
and software needed to implement the system
design. Testing of the system and training of
people to operate and use the system are also part
of this stage. Finally, the organization converts to
the new system.
Systems Maintenance. In this stage,
management uses a postimplementation review
process to monitor, evaluate, and modify the
system as needed.
Management Information Systems
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49. Management Challenges of the E-business Enterprise
•IS Human Resources
•IS Development
•IT Infrastructure
•IS Performance
•Organization Structure
•and Culture
•User Acceptance
Management Information Systems
•Business Strategies
•Business Processes
•Business Needs
•Customer Relationships
•Business Partners
•Suppliers
•Business Customers
Ethical Considerations
Potential Risks?
Potential Laws?
Possible Responses?
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50. Management Challenges of the
E-business Enterprise
Prospective managers and business
professionals should become aware of the
problems and opportunities presented by
the use of information technology and
learn how to effectively confront such
managerial challenges.
Management Information Systems
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51. Chapter Summary
Information Systems play a vital role in the
efficient and effective operations of Ebusiness, E-commerce and enterprise
collaboration.
The business professional must know:
Foundations (fundamentals) of IS
Information Technologies
Business Applications
Development Processes; and
Managerial Challenges
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52. Chapter Summary (cont)
A system is a group of interrelated
components working toward the
attainment of a common goal by accepting
inputs and producing outputs in an
organized transformation process.
An information system uses the resources
of people, hardware, software, data, and
networks to perform input, processing,
output, storage and control activities.
Management Information Systems
GLA Group of Institutions, Mathura
53. Chapter Summary (cont)
IS Resources:
Hardware Resources
Software Resources
People Resources
Data Resources
Network Resources
Products:
Paper Reports
Visual Displays
Multimedia Documents
Electronic Messages
Graphics images
Audio Responses
Management Information Systems
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54. Chapter Summary (cont)
Information systems perform three vital
roles in business firms. They support:
Business processes and operations,
Business decision making; and
Strategic competitive advantage
Major application categories of
information systems include:
Operations Support Systems; and
Management Support Systems
Management Information Systems
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Editor's Notes
Foundation Concepts: Foundations of Information in Business presents an overview of the five basic areas of information systems knowledge needed by business professionals, including the conceptual system components and major types of information systems.
An IS Framework for Business Professionals – The IS knowledge that a business manager or professional needs to know is illustrated in the Figure. This include
foundation concepts: fundamental behavior, technical, business, and managerial concepts like system components and functions, or competitive strategies;
information technologies: concepts, developments, or management issues regarding hardware, software, data management, networks, and other technologies;
business applications: major uses of IT for business processes, operations, decision making, and strategic/competitive advantage;
development processes: how end users and IS specialists develop and implement business/IT solutions to problems and opportunities arising in business; and
management challenges: how to effectively and ethically manage the IS function and IT resources to achieve top performance and business value in support of the business strategies of the enterprise.
An Information System is an organized combination of people, hardware, software, communications networks, and data resources that collects, transforms, and disseminates information in an organization.
Key concepts of the text include:
Information Technology (IT). The dynamic interaction of computer-based information systems with telecommunications forms the backbone of IT.
End User Perspective. An end user is anyone who uses an information system or the information it produces. As a perspective on management information systems, the end user focuses designers, developers, and all information systems personnel on how the system does and should function in use. Information systems are powerful tools -- and all the more powerful when made to fit the needs of those who use them everyday. This involves adapting the system to the user, not the other way around.
An Enterprise Perspective. Information technology can provide the information a business needs for efficient operations. It can even be the foundation of a company's competitive advantage. But to function properly, an information system must be developed in support of the strategic objectives, business operations, and management needs of the enterprise.
Discussion Note: To emphasize how important the seamless integration of each component of the information system is, ask students to make an argument excluding each element in turn. The necessity of interdependence soon becomes clear.
What is an information system? Note: This graph is part of Figure 1.5 in the text.
This information system model expresses a fundamental conceptual framework for the major components and activities of information systems. An information system depends on the resources of people (end users and IS specialists), hardware (machines and media), software (programs and procedures), data (data and knowledge bases), and networks (communications media and network support) to perform input, processing, output, storage, and control activities that covert data resources into information products.
Data resources are transformed by information processing activities into a variety of information products for end users.
Information processing consists of input, processing, output, storage and control activities.
System concepts underlie the field of information systems. From the end user perspective, it is necessary to understand the fundamentals of systems theory:
System. A system is a group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process. Systems have the following three basic interacting functions.
Input. Input involves capturing and assembling elements that enter the system to be processed.
Processing. Processing involves the transformation of input into output.
Output. Output is the end result of the transformation process. Output involves transferring elements that have been produced by a transformation process to their ultimate destination.
Teaching Tip: You might want to introduce the concept of "value-added" in relation to system transformation. The changes that occur during processing are typically worth more to someone outside the system, such as a customer, than the costs involved in making the transformation.
The information system model shown on the slide highlights the relationships among the components and activities of information systems:
People Resources. People are required for operation of all ISs. People resources include:
End Users. As mentioned, these people use the IS or the information it produces.
IS Specialists. These people develop and operate the IS.
Hardware Resources. These include all the physical devices and materials used in information processing, including all machines and data media. Key components include:
Computer Systems. These are the CPUs and their related peripherals, such as terminals and networked PCs.
Computer Peripherals. These are input and output devices like keyboards, monitors, and secondary storage.
Telecommunications Networks. These are the computer systems interconnected by various telecommunications media such as modems.
Software Resources. These include all sets of information processing instructions. Software resources include:
System Software. This controls the computer.
Application Software. These are for a specific end user task, such as word-processing.
Procedures. These are the operating instructions for the people who use the IS.
Data Resources. Data is both the raw material of and among the most valuable organizational resources in the IS. Data can be in alphanumeric, text, image and/or audio form. Data are typically organized into either Databases - which hold processed and organized data; or Knowledge bases - which hold knowledge in a variety of forms such as facts and rules of inference about a given subject.
Data:
Data is the plural of datum, though data commonly represents both singular and plural forms.
Data are raw facts or observations, typically about physical phenomena or business transactions.
Data should be viewed as raw material resources that are processed into finished information products.
Data are usually subjected to a value-added process (data processing or information processing) where
Its form is aggregated, manipulated, and organized
Its content is analyzed and evaluated
It is placed in a proper context for a human user
Information:
Information can be defined as data that have been converted into a meaningful and useful context for specific end users.
Information should be viewed as processed data which has been placed in a context that gives it value for specific end users.
Time Dimension:
TimelinessInformation should be provided when it is needed
CurrencyInformation should be up-to-date when it is provided
FrequencyInformation should be provided as often as needed
Time PeriodInformation can be provided about past, present, and future time periods.
Content Dimension:
AccuracyInformation should be free from errors
RelevanceInformation should be related to the information needs of a specific recipient
for a specific situation
CompletenessAll the information that is needed should be provided
ConcisenessOnly the information that is needed should be provided
ScopeInformation can have a broad or narrow scope, or an internal or external focus
PerformanceInformation can reveal performance by measuring activities accomplished, progress made, or resources accumulated.
Form Dimension:
ClarityInformation should be provided in a form that is easy to understand
DetailInformation can be provided in detail or summary form
OrderInformation can be arranged in a predetermined sequence
PresentationInformation can be presented in narrative, numeric, graphic, or other forms.
MediaInformation can be provided in the form of printed paper documents, video displays, or other media.
Storage is the information activity in which data and information are retained in an organized manner for latter use. For storage purposes, data are typically organized into the following categories:
Field. A field is a grouping of characters that represent a characteristic of a person, place, thing, or event. On the slide, a person's name constitutes a field.
Record. A record is a collection of interrelated fields. For example, an employee's payroll record usually contains several fields, such as their name, social security number, department, and salary.
File. A file is a collection of interrelated records. For example, a payroll file might contain all of the payroll files for all the employees of a firm.
Database. A database is an integrated collection of interrelated records or files. For example, the personnel database of a firm might contain payroll, personnel action, and employee skills files.
Teaching Tip: The on-line access to a database by front-line workers can make a very significant contribution to achieving competitive advantage in some industries. Ask students if any of them have ever ordered computer hardware or software from a mail-order catalog. Most of these companies have a database that shows the address and the previous purchase history of the customer. Some even use caller ID to identify the customer even before he or she tells the salesperson!
Information Technology is increasingly important in the competitive marketplace. Managers need all the help they can get. Information systems perform three vital roles in business:
Support Business Operations. From accounting to tracking customers' orders, information systems provide management with support in day-to-day business operations. As quick response becomes more important, the ability of information systems to gather and integrate information across business functions is become crucial.
Teaching Tip: For example, the ability to match a change in product items sales with as a result of a new marketing campaign to the inventory and ordering system, can help keep items in high demand in stock.
Support Managerial Decision Making. Just as information systems can combine information to help run the business better, the same information can help managers identify trends and to evaluate the outcome of previous decisions. IS helps managers make better, quicker, and more informed decisions.
Support Strategic Advantage. Information systems designed around the strategic objectives of the company help create competitive advantages in the marketplace.
Teaching Tip: For example, Wal-Mart stores can provide lower prices in part due to the lower costs incurred by their state-of-the art computerized inventory, tracking, and distribution system.
Data Processing: 1950s - 1960’s:
Electronic data processing systems. Transaction processing, record-keeping, and traditional accounting applications
Management Reporting: 1960s - 1970’s:
Management Information systems. Management reports of prespecified information to support decision making.
Decision Support: 1970s - 1980s:
Decision Support systems. Interactive ad hoc support of the managerial decision-making process.
Strategic and End User Support: 1980s - 1990’s:
End User computing systems. Direct computing support for end user productivity and work group collaboration.
Executive information systems. Critical information for top management
Expert systems: Knowledge-based expert advice for end users
Strategic Information Systems. Strategic products and services for competitive advantage
Electronic Business and Commerce: 1990’s - 2000’s:
Internetworked e-business and e-commerce Systems. Internetworked enterprise and global e-business operations and e-commerce on the Internet, intranets, extranets, and other networks.
The Internet and related technologies and applications is revolutionizing the way businesses are operated and people work, and how information technology supports business operations and end user work activities.
Businesses are quickly becoming e-business enterprises.
The Internet and Internet-like networks - inside the enterprise (intranets), and between an enterprise and its trading partners (extranets) - have become the primary information technology infrastructure that supports the business operations of many companies.
E-business enterprises rely on such technologies as to:
1. Reengineer and revitalize internal business processes
2. Implement electronic commerce systems among businesses and their customers and suppliers.
3. Promote enterprise collaboration among business teams and workgroups.
E-Business: is defined as the use of Internet technologies to internetwork and empower business processes, electronic commerce, and enterprise communication and collaboration within a company and with its customers, suppliers, and other business stakeholders.
Information Systems can be classified by the type of the support they provide an organization.
Operations support systems process data generated by and used in business operations. They produce a variety of information products for internal and external use. Operations support systems do not emphasize producing the specific information products that can best be used by managers. Further processing by management information systems is usually required. The role of a business firm’s operations support systems is to:
1. Effectively process business transactions
2. Control industrial processes
3. Support enterprise communications and collaboration
4. Update corporate databases.
Management support systems assist managers in decision making. Providing information and support for decision making by all types of managers and business professionals is a complex task. Conceptually, several major types of information systems support a variety of decision-making responsibilities.
1. Management information systems - provide information in the form of reports and displays to managers and many business professionals.
2. Decision support systems - give direct computer support to managers during the decision-making process.
3. Executive information systems - provide critical information from a wide variety of internal and external sources in easy-to-use displays to executives and managers.
Expert Systems: Knowledge-based systems that provide expert advice and act as expert consultants to users. Examples: credit application advisor, process monitor, and diagnostic maintenance systems.
Knowledge Management Systems: are knowledge-based information systems that support the creation, organization, and dissemination of business knowledge to employees and managers throughout a company. Examples: intranet access to best business practices, sales proposal strategies, and customer problem resolution systems.
Functional Business Systems: Support a variety of operational and managerial applications in support of basic business functions of a company. Examples: information systems that support applications in accounting, finance, marketing, operations management, and human resource management.
Strategic Information Systems: are information systems that support operations or management processes that provide a firm with strategic products, services, and capabilities for competitive advantage. Examples: online stock trading, shipment tracking, and e-commerce Web systems.
Cross-Functional Information Systems: are information systems that are integrated combinations of business information systems, thus sharing information resources across the functional units of an organization
The traditional information systems development cycle is based upon the stages in the systems approach to problem solving:
Systems Investigation. This stage may begin with a formal information systems planning process to help sort out choices from many opportunities. Typically, due to the expense associated with information systems development this stage includes a cost/benefit analysis as part of a feasibility study. This stage is covered in more detail on the following slide.
Systems Analysis. This stage includes an analysis of the information needs of end users, the organizational environment, and any system currently used to develop the functional requirements of a new system.
Systems Design. This stage develops specifications for the hardware, software, people, and data resources of the system. The information products the system is expected to produce are also designated.
Systems Implementation. Here the organization develops or acquires the hardware and software needed to implement the system design. Testing of the system and training of people to operate and use the system are also part of this stage. Finally, the organization converts to the new system.
Systems Maintenance. In this stage, management uses a postimplementation review process to monitor, evaluate, and modify the system as needed.
Prospective managers and business professionals should become aware of the problems and opportunities presented by the use of information technology and learn how to effectively confront such managerial challenges.
Managerial challenges are emphasized through the textbook.
