Management Information
System
Course Code: ILO7013
Credits: 03
Objectives:
1. The course is blend of Management and Technical field.
2. Discuss the roles played by information technology in today’s
business and define various technology architectures on
which
information systems are built
3. Define and analyze typical functional information systems and
identify how they meet the needs of the firm to deliver
efficiency
and competitive advantage
4. Identify the basic steps in systems development
Outcomes: Learner will be able to…
1. Explain how information systems Transform Business
2. Identify the impact information systems have on an organization
3. Describe IT infrastructure and its components and its current
trends
4. Understand the principal tools and technologies for accessing
information from databases to improve business performance
and
decision making
5. Identify the types of systems used for enterprise-wide
knowledge
management and how they provide value for businesses
Module Detailed Contents Hours Books
1 Introduction To Information 4 R1 & R4 :
Systems (IS): Computer Based Chapter 1 & 2
Information
Systems, Impact of IT on
organizations, Importance of IS
to Society.
Organizational Strategy,
Competitive Advantages and
IS.
2 Data and Knowledge 7 R1 : Chapter 5
Management: Database R2 : Chapter 6
Approach, Big Data, Data
warehouse and Data Marts,
Knowledge Management.
Business intelligence (BI):
Managers and Decision
Making, BI for Data analysis
and Presenting Results
3 Ethical issues and Privacy: 7 R1 : Chapter 3,4
Information Security. Threat to
IS, and Security
Controls
Module Detailed Contents Hours Books
4 Social Computing (SC): Web 7 R4 : Chapter 5 &
2.0 and 3.0, SC in business- 6
shopping, Marketing, R1 : Chapter 7 &
Operational and Analytic CRM, 9
E-business and E-commerce –
B2B B2C.
Mobile commerce.
5 Computer Networks Wired 6 R1 : Chapter 6
and Wireless technology,
Pervasive computing,
Cloud computing model.
6 Information System within 8 R1 : Chapter 10
Organization: Transaction
Processing Systems,
Functional Area Information
System, ERP and ERP support
of Business Process.
Acquiring Information Systems
and Applications: Various
System development
life cycle models.
• R1 : Kelly Rainer, Brad Prince,Management
Information Systems, Wiley
• R2 : K. C. Laudon and J.P. Laudon, Management
Information Systems: Managing the Digital
Firm,10th Ed., Prentice Hall, 2007.
• R3 : D. Boddy, A. Boonstra, Managing Information
Systems: Strategy and Organization, Prentice Hall,
2008
• R4 : Introduction to Information SystemsThird
EditionR. Kelly Rainer [Link] G. Cegielski
The Business Problem
• software is disrupting every industry, and
every organization must prepare for this
disruption.
• Numerous companies have attempted to meet
the disruption challenge: Some have
succeeded and some have failed.
Software Disruptions
• examples of software disruption across several
industries.
• Industries where software disrupted the
previous market-leading companies and
industries where a new company (or
companies) used software to achieve a
competitive advantage.
The book industry:
• In 2001, Borders agreed to hand over its
online business to Amazon because the
bookstore was convinced that online book
sales were nonstrategic and unimportant. Ten
years later, Borders filed for bankruptcy.
The photography industry:
• The leading photography companies include
• Shutterfly ([Link] [Link]), Snapfish
([Link]), Flickr
([Link] .com), and Instagram
([Link]).
• Meanwhile, the long-time market leader
Kodak—whose name was almost synonymous
with cameras—declared bankruptcy in
January 2012.
The marketing industry
• Today’s largest direct marketing companies
include Facebook ([Link]),
Google ([Link]), Groupon
([Link]),
• Living Social ([Link]), and
Foursquare ([Link]).
• All of these companies are using software to
disrupt the retail marketing industry.
The recruiting industry
• LinkedIn ([Link]) is a fast-growing
company that is disrupting the traditional job
recruiting industry. For the first time,
employees and job searchers can maintain
their own resumes on LinkedIn for recruiters
to search in real time.
The financial services industry:
• Software has transformed the financial
services industry.
• Practically every financial transaction is now
performed by software. Also, many of the
leading innovators in financial services are
software companies. For example, Square
([Link] allows anyone to
accept credit card payments with a mobile
phone.
Fundraising:
• In early 2013, Joel Silver and Rob Thomas, the
producers of Veronica Mars, a feature film,
used Kickstarter ([Link]) to
raise money to produce the film.
• They achieved their goal of $2 million in just
10 hours. Kickstarter takes a 5 percent cut of
every transaction.
Software is also disrupting industries that
operate primarily in the physical world.
Consider the following examples:
• The automobile industry: In modern cars, software is
responsible for running the engines, controlling safety
features, entertaining passengers, guiding drivers to their
destinations, and connecting the car to mobile, satellite, and
GPS networks. Other software functions in modern cars
include Wi-Fi receivers, which turn your car into a mobile
hot spot; software, which helps maximize fuel efficiency; and
ultrasonic sensors, which enable some models to parallel-
park automatically. The next step is to network all vehicles
together, a necessary step toward driverless cars. The
creation of software-powered driverless cars is already being
undertaken at Google as well as several major car
companies.
• The logistics industry: Today’s leading real-world
retailer, Walmart, uses software to power its logistics
and distribution capabilities. This technology has
enabled Walmart to become dominant in its industry.
• The postal industry: FedEx, which early in its history
adopted the view that “the information about the
package is as important as the package itself,” now
employs hundreds of developers who build and deploy
software products for 350,000 customer sites to help
customers with their mailing and shipping needs.
• The oil and gas industry: Companies in this industry
were early innovators in supercomputing and data
visualization and analysis, which are critically
important to oil and gas exploration efforts.
The agriculture industry:
• Agriculture is increasingly powered by
software, including satellite analysis of soils
linked to per-acre seed selection software
algorithms. In addition, precision agriculture
makes use of automated, driverless tractors
controlled by global positioning systems and
software.
National defence:
• Even national defence is increasingly software
based. The modern combat soldier is embedded in
a web of software that provides intelligence,
communications, logistics, and weapons guidance.
Software-powered drone aircraft launch airstrikes
without placing human pilots at risk. (We discuss
drone technology later in the chapter.) Intelligence
agencies perform large-scale data mining with
software to uncover and track potential terrorist
plots.
The legal profession:
• Today, electronic discovery (e-discovery) software
applications can analyze documents in a fraction
of the time that human lawyers would take, at a
fraction of the cost. For example, Blackstone
Discovery ([Link])
helped one company analyze 1.5 million
documents for less than $100,000. That
company estimated that the process would have
cost $1.5 million if performed by lawyers.
The Results
• Clearly, then, an increasing number of major businesses
and industries are being run on software and delivered as
online services—from motion pictures to agriculture to
national defence.
• Regardless of the industry, companies face constant
competitive threats from both established rivals and
entrepreneurial technology companies that are
developing disruptive software.
• These threats will force companies to become more agile
and to respond to competitive threats more quickly,
efficiently, and effectively.
What is an Information System?
• A set of interrelated components that collect, manipulate, store,
and disseminate data and information and provide feedback to
meet an objective.(payroll process, RFID etc)
***This process could be manual or computerized.
An information system is a collection of related things that work together to achieve a
common goal. The components collect, process or transform, and distribute data and
information.
Common examples of information systems include: ATMs, point of sale (POS) systems
used by grocery checkout clerks; information systems used by airlines to make
reservations or schedule flights; and the system you use at your university to register
23
for classes.
Components of a MIS
• Hardware - computer equipment used to perform input, processing, and
output activities.
• Software - computer programs that govern the operation of the computer.
• Database - an organized collection of facts and information, typically
consisting of two or more related data files.
• Telecommunications - the electronic transmission of signals for
communications which enables organizations to carry out their processes
and tasks.
• People - the most important element in most computer-based information
systems.
• Procedures - include the strategies, policies, methods, and rules for using
the CBIS.
24
Major capabilities of Computerized
information systems
• Perform high-speed high-volume, numerical computations (DSS)
• Provide fast, accurate, reliable, and inexpensive communication
within and between organizations, anytime, anyplace.
• Store huge amounts of information in an easy to access, yet small
space (database management)
• Allow quick and inexpensive access to vast amounts of information
worldwide at any time
• Enable collaboration any where anytime(Extranet)
• Increase the effectiveness and efficiency of people working in
groups in one place or in several locations (ex. data exchange, video
conferencing)
• Vividly present information
• Facilitate global trade (ex. [Link])
• Enable automation of routing decision making(ROP)
• Can be wireless, thus supporting unique applications
27
New Economy vs. Old Economy
• Example #1: Registering for Classes
– Old Economy: You would go to the Registrar’s Office on
campus with a paper registration document
– New Economy: You access your campus website, log into
registration site, and electronically register for classes from
anywhere
28
New Economy vs. Old Economy
• Example #2: Buying and Selling Textbooks
– Old Economy: You go to the bookstore in person and buy
new or sell used books
– New Economy: You go online to the Publisher’s Web site or
to Web-based services such as [Link] to buy or sell
books
29
New Economy vs. Old Economy
• Example #3: Photography
– Old Economy: You use a camera with film, which you have
to purchase and have developed; you mail copies of
pictures.
– New Economy: You can scan photos, make copies and e-
mail them. Digital cameras require no film or processing.
Digital photography and video integrated into cell phones
for immediate viewing
30
New Economy vs. Old Economy
• Example #4: Paying for Transportation
– Old Economy: Use tokens for bus and subway
transportation
– New Economy: Bus and subway riders now use
MetroCards; contactless cards that have a small radio
transmitter that transmit account information to a reader
31
New Economy vs. Old Economy
• Example #5: Paying for Goods, Checkout
– Old-old Economy: Customer selects goods, waits in line for
the cashier to key in price of items, and then pays in cash
– Old Economy: The clerk swipes the barcode of each item
and customer pays in cash, credit, or debit. Information
scanned is available for immediate analysis known as
source-data automation (inventory levels are updated,
Walmart, POS)
32
New Economy vs. Old Economy
• Example #6: Paying for Goods, Checkout continued
– Old Economy: Shoppers take their items to a self-service kiosk and
swipe the barcodes themselves
– New Economy: Wireless technology affixed to each item. Allows
you to select items that pass through a scanner, which reads
wireless signal, generates a bill, automatically debits your
designated account for payment and you leave (RFID – Japanese
Bank)
• Example #7: Netflix
33
IT vs IS
• Information technology (IT) refers to any
computer-based tool that people use to work
with information and to support the
information and information-processing needs
of an organization.
• An information system (IS) collects,
processes, stores, analyzes, and disseminates
information for a specific purpose.
Why Should I Study Information Systems?
• You are part of the most connected generation in
history: You have grown up online; you are, quite
literally, never out of touch; you use more
Information technologies (in the form of digital
devices), for more tasks, and are bombarded with
more information, than any generation in history.
Information technologies are so deeply embedded
in your lives that your daily routines would be
almost unrecognizable to a college student just 20
years ago.
So, the question is: Why you should learn about
information systems and information technologies?
• First, you will benefit more from your organization’s IT applications
because you will understand what is “behind” those applications .
That is, what you see on your computer screen is brought to you by
your MIS department, who are operating “behind” your screen.
• Second, you will be in a position to enhance the quality of your
organization’s IT applications with your input.
• Third, even as a new graduate, you will quickly be in a position to
recommend—and perhaps help select—the IT applications that
your organization will use.
• Fourth, being an informed user will keep you abreast
of both new information technologies and rapid
developments in existing technologies. Remaining “on
top of things” will help you to anticipate the impacts
that “new and improved” technologies will have on
your organization and to make recommendations on
the adoption and use of these technologies.
• Fifth, you will understand how using IT can improve
your organization’s performance and teamwork as
well as your own productivity.
• Finally, if you have ideas of becoming an
entrepreneur, then being an informed user will help
you use IT when you start your own business.
IT Offers Career Opportunities
• Forbes
• #1 Software developer
• #4 Systems analyst
• #6 Network and systems administrator
• U.S. News & World Report
• #4 Computer systems analyst
• #6 Database administrator
• #7 Software developer
• #9 Web developer
• #20 IT manager
• Money
• #3 Software architect
• #5 Database administrator
• #9 Software developer
• #13 IT consultant
• #21 Systems administrator
• #28 IT business analyst
Information Technology Jobs
The Changing Role of the Information
Systems Department
• Traditional Functions of the MIS Department
• Managing systems development and systems project
management
• As an end user, you will have critical input into the
systems development process
• Managing computer operations, including the computer
center • Staffing, training, and developing IS skills •
Providing technical services
• Infrastructure planning, development, and control
• As an end user, you will provide critical input about the IS
infrastructure needs of your department.
New (Consultative) Functions of the MIS Department
• Initiating and designing specific strategic information systems
• As an end user, your information needs will often mandate the development of
new strategic information systems.
• You will decide which strategic systems you need (because you know your business
needs better than the MIS department does), and you will provide input into
developing these systems. • Incorporating the Internet and electronic commerce into
the business
• As an end user, you will be primarily responsible for effectively using the Internet
and electronic commerce in your business. You will work with the MIS department
to accomplish this task. Managing system integration including the Internet,
intranets, and extranets
• As an end user, your business needs will determine how you want to use the
Internet, your corporate intranets, and extranets to accomplish your goals. You will
be primarily responsible for advising the MIS department on the most effective use
of the Internet, your corporate intranets, and extranets.
• Educating the non-MIS managers about IT
• Your department will be primarily responsible for advising the MIS department on
Educating the MIS staff about the business
• Communication between the MIS department and the business units is a two-way street.
You will be responsible for educating the MIS staff on your business, its needs, and its goals.
• Partnering with business-unit executives: Essentially, you will be in a partnership with the
MIS department. You will be responsible for seeing that this partnership is one “between
equals” and ensuring its success.
• Managing outsourcing: Outsourcing is driven by business needs. Therefore, the
outsourcing decision resides largely with the business units (i.e., with you). The MIS
department, working closely with you, will advise you on technical issues such as
communications bandwidth, security, etc.
• Proactively using business and technical knowledge to seed innovative ideas about IT Your
business needs often will drive innovative ideas about how to effectively use information
systems to accomplish your goals. The best way to bring these innovative uses of IS to life is
to partner closely with your MIS department. Such close partnerships have amazing
synergies!
• Creating business alliances with business partners: ° The needs of your business unit will
drive these alliances, typically along your supply chain. Again, your MIS department will
act as your advisor on various issues, including hardware and software compatibility,
implementing extranets, communications, and security.
Overview of Computer-Based
Information Systems
• Data items refer to an elementary description
of things, events, activities, and transactions
• that are recorded, classified, and stored but are
not organized to convey any specific meaning.
• Data items can be numbers, letters, figures,
sounds, and images. Examples of data items are
collections of numbers (e.g., 3.11, 2.96, 3.95,
1.99, 2.08) and characters (e.g., B, A, C, A, B, D,
F, C).
INFORMATION
• Information refers to data that have been organized so
that they have meaning and value to the recipient. For
example, a grade point average (GPA) by itself is data,
but a student’s name coupled with his or her GPA is
information.
• The recipient interprets the meaning and draws
conclusions and implications from the information.
Consider the examples of data provided in the
preceding paragraph. Within the context of a university,
the numbers could be grade point averages, and the
letters could be grades in an Introduction to MIS class.
KNOWLEDGE
• Knowledge consists of data and/or information that have been
organized and processed to convey understanding, experience,
accumulated learning, and expertise as they apply to a current
business problem.
Example: Suppose that a company recruiting at your school has
found over time that students with grade point averages over 3.0
have experienced the greatest success in its management program.
Based on this accumulated knowledge, that company may decide to
interview only those students with GPAs over 3.0. This example
presents an example of knowledge because the company utilizes
information—GPAs—to address a business problem—hiring
successful employees. As you can see from this example,
organizational knowledge, which reflects the experience and
expertise of many people, has great value to all employees.