MANAGEMENT INFORMATION
SYSTEM
CHAPTER ONE:
FOUNDATIONS OF INFORMATION SYSTEMS IN
BUSINESS
O’Brien/Marakas
SECTION ONE
Foundation Concepts: Information Systems in Business
• Learning information systems is very important in the business
administration and management fields because:
– They are integrated into such business activities as accounting, finance,
operations management, marketing and human resources management.
– Likewise information technologies with their internet based systems help
businesses improve their effectiveness and efficiencies and this way
strengthen their competitive positions.
• Whether they are used for customer support processes, product development teams
or e-commerce transactions
– Thus information systems and technologies are primary ingredients in modern global businesses.
The real world of information systems and
technologies
• What is an information system:
– Any organized combination of people, hardware,
software, communications networks, data
resources, and policies and procedures that
stores, retrieves, transforms, and disseminates
information in an organization
– Are information systems based solely on
computers?
Fundamental Roles of IS in Business
• Support of Business processes and operations
• Support of decision making by employees and
managers
• Support of strategies for competitive
advantage
Trends in Information Systems
• From Data Processing of the 1950s to ERP in the year 2010.
– 1950-1960s electronic data processing traditional accounting
balances
– 1960-1970s Management pre-specified information for decision
making
– 1970-1980s interactive support of management decision making
– 1980-1990s End-user computing, executive information, expert
and strategic information , systems
– 1990-2000s internet based e-business and e-commerce systems.
– 2000-2010 Enterprise Resource Planning systems
• What are the basic functions of today’s information systems as
compared to those used for the last 50 years.
• Types of information
• The Role of e-Business
systems
in Business
– E-business applications
– Operations support systems
• Transaction processing
• Empower business to
systems
interact within itself, with
– Batch
customers, suppliers and – Real time
other stakeholders
• Process control systems
• Online exchange of value
• Enterprise collaboration
– enterprise collaboration systems
systems – Management support
• Virtual teams systems
– E-commerce • MIS
• Buying, selling, marketing, • Decision Support Systems
servicing products – E.g. What if analysis
• Executive Information
Systems
• Other Classifications of Information
Systems – Business/ IT Developments
• Use of internets, intranets, extranets and
the Web technology
• Offer both operational and • Diffusion of Web technology
• Global networked computing
managerial supports
– Business/IT Goals
– Expert systems • Give customers what they want when they
– Knowledge management systems want at low cost
• Functional business systems • Coordinate manufacturing processes with
suppliers and customers
– Strategic information systems
• Marketing channel partnerships with
– “cross-functional information systems” suppliers and distributors
• Managerial Challenges of – Success and Failure with IT
Information Technology • IS and IT can be mismanaged and miss-
applied in such a way that IS performance
problems create both technological and
– Business /IT Challenges business failures
• Speed and Flexibility Requirements – Developing IS Solutions
• Reengineering and cross-functional • analysis of business requirements
integration of business processes • Investigating feasibility
• Integration of e-business and e-commerce • Implement
into the organization’s strategies • maintain
• Challenges and Ethics of IT • IS professionals have career
– Customer, human resources opportunities in every business
and business intelligence environment
– May lead to unethical – Systems analyst
behaviors – Programmer
– Which may result in – Network administrator
consumer boycott • The IS function
– can be prevented by – As important as any other
function
establishing codes of ethics,
special incentives and – Operational efficiency, employee
morale and productivity and
certifications.
customer satisfactions
• Challenges of IT Careers – Source of value to the firm
– Outsourcing employment to – Major source of information
Asia and the Middle East – Developing competitive products
– But diverse and exciting – Career opportunity
careers – Strategic resource.