1 AN INTRODUCTION TO MANAGEMENT INFORMATION SYSTEMS IS 340 BY CHANDRA S. AMARAVADI

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AN INTRODUCTION TO

MANAGEMENT INFORMATION SYSTEMS

IS 340

BY

CHANDRA S. AMARAVADI

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IN THIS PRESENTATION

Why information systems? What are information systems? What is their role in organizations? How are they developed? What are some current issues? Course outline and features

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THE GROWING IMPORTANCE OF INFORMATION SYSTEMS

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IT budget for Nation’s Bank $2 billion IT budget for Bank America $ 4 billion Web spending $200 billion U.S. IT spending approx $1 trillion Worldwide IT spending $2.6 trillion

WHY INFORMATION SYSTEMS?

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WHY INFORMATION SYSTEMS?

Morgan Stanley, An investment bank24hr/day 7day/week operation15,000 computers to process 100,000 trades/day34,000 batch jobs/day100 million lines of codeIntranet with 10,000 users

Consider the following:

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MOTIVATION FOR IS

What business changes [in the last 30 years] haveresulted in the increased demand for informationsystems?

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DEFINITION AND EXAMPLES OF INFORMATION SYSTEMS

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DEFINITION OF IS

“A collection of computer systems to support information processing in organizations.” -- preferred definition.

“A set of interrelated components working together tocollect, process, store and disseminate information tosupport decision making, co-ordination, control, analysisand visualization.”

Information technologies refer to technologies such ascomputers, Networks, LANs etc.

CUSTOMER

PRODUCTION

INFORMATION SYSTEMS IN ORGANIZATIONS

orders

order fulfillment

ACCOUNTING/FINANCE

rawmaterials

SUPPLIERS

SALES/MARKETING

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Billing systems Bank account processing Online ordering Sales prediction Repair assessment

SOME EXAMPLESOF INFORMATION SYSTEMS ARE

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EVOLUTION/TYPES OF INFORMATIONSYSTEMS

Transaction processingReporting systems

Database management systemsDecision supportOffice information systems

AI based systemsExecutive information systemsStrategic information systems

Enterprise information systemsE-Commerce systemsKnowledge Management systems

1950’s

1970’s

1980’s

1990’s

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TYPES OF INFORMATION SYSTEMSTransaction processing systems: process business transactionsReporting systems: summarize transaction informationDatabase management systems: systems to manage informationDecision support systems: support analysis of data to aid in d.m.Executive information systems: systems to support executive d.m.Office information systems: provide support to office workersAI & expert systems: use artificial intelligence to duplicate human activity (in organizations).Strategic systems:systems which support the strategy of the organization and improve competitive advantage.Enterprise information systems: systems which support all functional areas, from marketing to production. E-commerce systems: systems for browsing, ordering, payment etc. KM Systems: support organizational knowledge.

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ROLE OF INFORMATION SYSTEMS IN ORGANIZATIONS

WHAT IS A ROLE?

An IS role is a particular usage of information systems.

Labor substitution Managerial control …………

Take the example of a building.

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1950s: Labor Substitution Use technology instead of labor

60s-70s: Managerial Control Use information to control operations

80s-90s: Organizational Strategy Support organizational strategy

80s-90s: Institutional Core Activities Support activities such as accounting, finance etc.

80s-90s: Organizational Redesign See next

Current: E-Commerce (not discussed) Support web operations

LABOR SUBSTITUTION &MANAGERIAL CONTROL

Information

Cha

nges

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ORGANIZATIONALSTRATEGY ROLE

Started with classic cases of SABRE & AHS SABRE -- reservation system of AA AHS (BAXTER) -- system now classified as SCM.

IS should support org. strategies

Note: AA – American Airlines; AHS – American Hospital Supply, now Baxter

AHSHOSPITAL

Use IS as a competitive weapon

INSTITUTIONAL/CORE ACTIVITIES

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ORGANIZATIONAL RE-DESIGN

Simplify & redesign business processes Extend organizational boundaries Support new organizational structures

Change organizational structure:

Note: E-commerce role will be discussed later in the course

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INFORMATION SYSTEMS DEVELOPMENT

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INFORMATION SYSTEMS DEVELOPMENT

IS development is the process of developingan information system.

Systems analysis and design (SAD) Software development/software engg. Information systems development

Also known as:

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IS DEVELOPMENT METHODS

Conventional/TraditionalPrototyping (RAD)Object oriented

RAD: Rapid Application Development

Note: these methods will be discussed later in the course

THE IS DEVELOPMENT PROCESS

Programmers

Users

BusinessAnalysts

Projectmanager

Specsapplication/information system

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CURRENT ISSUES IN INFORMATION SYSTEMS

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Managing global projects Open Source software Information privacy Information security -- viruses

CURRENT ISSUES IN INFORMATION SYSTEMS

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COURSE OUTLINE AND FEATURES

COURSE OBJECTIVES

A good and thorough understanding ofwhat information systems are, where theyare used and how they are developed.

COURSE PHILOSOPHY

Application of technologies to business problems.

Understanding of technology v. imp. This is nature of IS Needed by AACSB, for info. literacy

Course arranged in this manner Tests based on understanding matl.

COURSE FEATURES

Concept oriented (but technical)Learn concept and apply itLarge # of conceptsCritical thinking is importantBecome SW independent

Refers to current business eventsLots of questions, discussionsdigressions welcome!

KEEP UP!KEEP UP!

COURSE OUTLINE

Information Systems Technologies

Information Systems Applications

Information Systems Development

•Hardware infra.•Software infra.•Internet•Database

•TP & ERP systems*•E-Commerce•Management support systems•AI and expert systems

•Conventional•Prototyping*

*if time permits

COURSE EVALUATION

Straight scale

Note: The following is tentative, please refer to your syllabus for uptodate allocation of points

Evaluation Item Points

Midterms (2 x 100) 200

Final exam 100

Quizzes (4 x 10 – 1 x 10) 30

Assignments (5 x 20) 100

Participation 40

Total 470

PARTICIPATION

Both assigned and spontaneous Research a topic & give a 5 min presentationAnswer questions, raise relevant issues Relate topics to discussions in press

Quality > frequency One good contribution per class adequate for an “A” in participation Avoid disruptive activities

DISRUPTIVE ACTIVITIES

Talking to class mates Eating Texting Checking for messages Homework Studying for another course/test Etc.

ADDITIONAL COMMENTS

Turn in Assignments on day they are due (before class) Check into web site for assignments and other announcements No makeups except under extreme circumstances (with documentation)

Take notes & review materials before class No talking, eating, sleeping or doing HW in class!