MANAGEMENT INFORMATION SYSTEM

Foundation Information Business Development Management Hardware &

Concepts Technologies Applications Processes Challenges Software
Technologies
 Foundation Concepts

Foundations of Information Systems Competing with Information

In Business Technology

Foundation Concepts: Foundation Concepts: Fundamentals of Using Information

Information System and Business Applications, Strategic Advantage Technology for
Technologies Development and Strategic Advantage
Management
 Information Technologies

Data Resources Management Telecommunication

And Network

Managing Data Technical Foundations The Networked Telecommunications

Resources Of Database Enterprise Network
Management Alternatives
 Business Applications

Introductions to Electronic Enterprise Decision Support

E-Business Systems Commerce Systems E-Business Systems Systems

1. Electronic 1. Customer Relationship 1. Decision

1. Functional
Commerce Management: Support in
Business
Fundamentals the Business Focus Business
Systems
2. e-Commerce 2. Enterprise Resources 2. Artificial
2. Cross-Functional
Applications & Planning: The Intelligence
Enterprise
Issues Business Backbone Technologies
Systems
3. Supply Chain in Business
Management:
the Business
Network
 Development Processes

Developing Business/ Developing Business/

IT Strategies IT Solution

Planning Implementation Developing Business Implementing

Systems Business Systems
Fundamentals Challenges
 Management Challenges

Security and Ethical Enterprise and Global

Challenges Management of Information
Technology

Security, Ethical, Security Management Managing Information Managing Global IT

And Societal Of Information Technology
Challenges of IT Technology
 Hardware & Software Technologies

Computer Hardware Computer Software

Computer System, Computer Peripherals: Application Software: System Software

End User and Input, Output and End User Applications Computer System
Enterprise Storage Management
Computing Technologies
Why Information System Are Important
Information systems and technologies (including e-business and e-commerce
technological and applications) have become a vital component of successful
businesses and organizations. They constitute and essential field of study in business
administration and management. That’s why most of business majors must take a
course in understanding information system. A manager, entrepreneur, or business
professional, it is just an important to have a basic understanding of information
systems as it is to understand any other functional areas of business

What is an Information System?

An information system can be any organized combination of people, hardware,
software, communication networks, and data resources that collects, transforms,
and disseminates information in an organization.

Computer based information systems that use computer hardware and software, the
internet and other telecommunications networks, computer-based data resource
management techniques, and many other computer-based information technologies
to transform data resources into an endless variety of information products for
consumers and business professionals
 Management
Challenges

Business Information
Applications Information Systems Technologies

Development Foundation
Processes Concepts
 People

Software Hardware
Information Systems
Resources

Data Networks
 Stock Holder In Business Environment
The Community Competitors

Customers
Control

Management

Information System

Economics Business Goods and

Resources: Processes: Services :
People Market, Develop, Products
Money Produce, and, Services
Material Deliver Products Payments
Machines and Services Contribution
Land Support Customers Information
Facilities Other Processes Other Effects
Energy
Information

Financial Institution Labor Unions

 System Activities

Control Of System Performances

Input Processing Output

of Data of
Data Into Information
Resources Information Products

Storage of Data Resources

Network Resources
Communication Media and Network Support
 Information System Resources and Products
People Resources
Specialist - system analyst, software developers, system operators
End Users - anyone else who uses information systems

Hardware Resources
Machines - computers, video monitors, magnetic disk drives, printers, optical scanners
Media - floppy disks, magnetic tape, optical disks, plastic card, paper forms
Software Resources
Programs - Operating system programs, spreadsheet programs, word processing programs,
payroll programs
Procedures - Data entry procedures, error correction procedures, paycheck, distribution
procedures
Data Resources
Products Descriptions, customer records, employee files, inventory databases.

Network Resources
Communications media, communications processors, network access, and control software

Information Products
Management reports and business document using text and graphic display, audio
responses, and paper forms
 Information System Activities

 Input - Optical scanning of bar-coded tags on merchandise

 Processing - Calculating employee pay, taxes, and other payroll deductions

 Output - Producing reports and Displays about sales performance

 Storage - Maintaining Records on customers, employees, and products

 Control - Generating audible signals to indicate proper entry sales data

Information Systems

Support
Strategies
For Competitive
Advantage

Support
Business
Decision Making

Support
Business Process and Operations
The Internet
Suppliers and Other Business
Extranets Partners Company
Boundary
Supply chain management:
Procurement, distribution, and logistics

Intranets
Engineering and Manufacturing Accounting and
research And production Finance

Intranets

Customer relationship management:

Marketing Sales Customer service

Extranets
Consumers and Business
Customers
Electronic Business and Commerce : 1990s-2000s
Internet worked e-business and e-commerce systems
Internet worked enterprise and global e- business operations and electronic commerce
on the internet, intranets, extranets, and other networks

Strategic and End User Support: 1980s-1990s

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
Decision Support: 1970s-1980s
Decision support systems
Interactive ad hoc support of the managerial decision-making process
Management Reporting: 1960s-1970s
Management information systems
Management reports of pre-specified information to support decision-making
Data Processing: 1950s-1960s
Electronic data processing systems
Transaction processing, record-keeping, and traditional accounting applications
 Information
Systems

Support of Operation Management

Support of
Business Support Support
Managerial
Operations Systems Systems Decision Making

Transaction Process Enterprise Management Decision Executive

Processing Control Collaboration Information Support Information
Systems Systems Systems Systems Systems Systems
Processing Control of Team and Pre-specified Interactive Information
Business Industrial Workgroup Reporting Decision Tailored for
Transaction Process Collaboration For Managers Support Executives
 Operations Support Systems

Transactions Processing Systems. Process data resulting from business

transactions, update operational databases, and produce business documents.
examples: sales and inventory processing and accounting systems.
Process Control Systems. Monitor and control industrial processes. Examples
petroleum refining, power generation and steel production systems.
Enterprise Collaboration Systems. Support team, workgroup, and enterprise
communications and collaboration. Examples: e-mail, chat, and videoconferencing
groupware systems

Management Support System

• Management Information Systems. Provide information in the form of
prespecified reports and displays to support business decision making. Examples: sales
analysis, production performance, and cost trend reporting systems
• Decision Support Systems. Provide interactive ad hoc support for the decision-
making processes of managers and other business professionals. Examples: product
pricing, profitability forecasting, and risk analysis systems.
• Executive Information Systems. Provide critical information from many
sources tailored to the information needs of executives. Examples: systems for easy
access to analyses of business performance, actions of competitors, and economic
developments to support strategic planning.
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. Knowledge-based systems that support the
creation, organization, and dissemination of business knowledge within the enterprise.
Examples: intranet access to best business practices, sales proposal strategies and
customer problem resolution systems
Strategic Information Systems. 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
system.
Functional Business System. Support a variety of operational and managerial
applications of the basic business functions of a company. Examples: information systems
that support applications in accounting, finance, marketing operations management and
human resource management.
 From Failure to Success with IT
The Boeing Company Thomson Consumer Electronics
Business Failure: Business Failure:
Costly delays ($ 1,6 billion in 1997) in Retailers not getting quick
obtaining parts to build each aircraft replenishment of core products with
with unintegrated IT systems old inventory systems

New IT Solution: New IT Solution:

Integrate entire supply chain into Demand collaboration system with top
internal production system retailers that link directly into internal
productions and logistics systems

Business Success: Business Success:

Output capacity up 100 % in 4 years. Out-of-stock scenarios reduced to 1 %
Aircraft lead times reduces by 60 %. with forecast accuracy now above
95 %.
The Business Enterprise

Business Strategies Internet worked Customer Value

Business Process Information System Business Value
Structure and Culture

IT Infrastructure

The Global Business Environment

 Investigate

Developing
Analyze
Information
System
Solutions
Maintain
Design

Implement
Applications of IT
 Customers
Relationship
Management
Potential Harms
Potential Risk Possible Responses
 Human How likely are customers,
How likely are legal Can the risks
Resource Employees, business partners,
Actions, consumer And costs be
Management Or competitors to be affected by:
Boycotts, work Mitigated by :
• Infringements on privacy • Self-regulation
Stoppages,
 Business • Inaccurate information • Advocacy
Government
Intelligence • Collusion • Education
Intervention, and
• Exclusion from essential business • Codes of Ethics
Systems Other threats to
•resources • Incentives
Occur ?
• Certification
 Electronic
Commerce
Systems