1 MIS, Chapter 1 ©2011 Course Technology, a part of Cengage Learning INFORMATION SYSTEMS: AN OVERVIEW CHAPTER 1 Hossein BIDGOLI MIS Cambios en este color

1MIS, Chapter 1

©2011 Course Technology, a part of Cengage Learning

INFORMATION SYSTEMS: AN OVERVIEW

CHAPTER 1

Hossein BIDGOLI

MIS

Cambios en este color por el prof. José Díaz Caballero

2MIS, Chapter 1


Chapter 1 Information Systems: An Overview

LO1 Discuss common applications of computers and information systems.

LO2 Explain the differences between computer literacy and information literacy.

LO3 Define transaction processing systems and management information systems.

LO4 Describe the four major components of an information system.

LO5 Discuss the differences between data and information.

l e a r n i n g o u t c o m e s

3MIS, Chapter 1


LO6 Explain the importance and applications of information systems in functional areas of a business.

LO7 Discuss how information technologies are used to gain a competitive advantage.

LO8 Explain the Five Forces Model and strategies for gaining a competitive advantage.

LO9 Summarize the future outlook of information systems.

l e a r n i n g o u t c o m e s (cont’d.)


4MIS, Chapter 1



Management Information Systems

• Management information system (MIS)– Organized integration of hardware and

software technologies, data, processes, and human elements

– Designed to produce timely, integrated, relevant, accurate, and useful information • For decision-making purposes

• Include:– Hardware components– MIS software– Processes

5MIS, Chapter 1



Management Information Systems (cont’d.)

• Designing an MIS– Define objectives– Collect and analyze data– Provide information in useful format

• Used in both the private and public sect• Many organizations use information

systems to gain a competitive advantage

6MIS, Chapter 1



Major Components of an Information System

• Data• Database• Process• Information

7MIS, Chapter 1



Data

• Data – Input to the system

• Sources of data– External– Internal

• Time orientation• Can be collected in different forms

– Aggregated – Disaggregated

8MIS, Chapter 1



Database

• Database– Heart of an information system– Collection of all relevant data organized in a

series of integrated files• Essential for the success of any

information system• Managed with database management

system (DBMS): e.g., Oracle• Reduces personnel time needed to gather,

process, and interpret data manually

9MIS, Chapter 1



Process

• Process – Generates the most useful type of information

for decision making• Generally includes transaction-processing

reports and models for decision analysis• Includes a wide range of models to

support all levels of decision making

10MIS, Chapter 1



Information

• Information– Output of an information system– Facts that have been analyzed by the process

component• Quality of information

– Timeliness– Integration with other data and information– Consistency and accuracy– Relevance

11MIS, Chapter 1



Information (cont’d.)

• User interface– Must be flexible and easy to use– Graphical user interfaces (GUIs)

• Ultimate goal of an information system – Generate business intelligence (BI)

12MIS, Chapter 1



Using Information Systems and Information Technologies• Information technologies

– Achieve goals of information systems• Examples

– Internet– Databases– POS Systems– RFID tags

13MIS, Chapter 1



The Importance of Information Systems

• Information – Second most important resource in any

organization• Four Ms of resources:

– Manpower– Machinery– Materials– Money

14MIS, Chapter 1



The Importance of Information Systems (cont’d.)

• Personnel information system (PIS) or human resource information system (HRIS) – Designed to provide information that helps

decision makers in personnel carry out their tasks more effectively

– Use Web technologies• Main difference between an intranet and

the Internet – Intranets are private and the Internet is public

15MIS, Chapter 1




• Logistics information system (LIS) – Designed to reduce the cost of transporting

materials – Maintains safe and reliable delivery

• Manufacturing information system (MFIS)– Manages manufacturing resources – Companies can reduce manufacturing costs,

increase product quality, and improve inventory decisions

16MIS, Chapter 1




• Financial information system (FIS)– Provides information to financial executives in

a timely manner• Marketing information system (MKIS)

– Improve marketing decisions– Provide timely, accurate, and integrated

information about the marketing mix

17MIS, Chapter 1



Using Information Technologies for a Competitive Advantage• Michael Porter

– Professor at Harvard Business School– Identified three strategies for competing in the

marketplace successfully• Overall cost leadership• Differentiation• Focus

18MIS, Chapter 1



Using Information Technologies for a Competitive Advantage (cont’d.)• Information systems

– Help organizations reduce the cost of products and services

– Assist with differentiation and focus strategies

– Can help bottom-line and top-line strategies• Enterprise systems

– Supply chain management (SCM)– Customer relationship management (CRM)– Enterprise resource planning (ERP)– Collaboration software

19MIS, Chapter 1



Using Information Technologies for a Competitive Advantage (cont'd.)• Differentiation strategies

– Make products and services different from competitors

– Examples: Apple, Amazon.com

20MIS, Chapter 1



Using Information Technologies for a Competitive Advantage (cont'd.)• Focus strategies

– Concentrate on a specific market segment – Attempt to achieve a cost or differentiation

advantage– Examples: Apple, Abercrombie & Fitch,

Nordstrom

21MIS, Chapter 1



Porter’s Five Forces Model: Understanding the Business Environment• Five Forces Model

– Michael Porter– For analyzing an organization, its position in

the marketplace, and how information systems could be used to make it more competitive

– Buyer power– Supplier power– Threat of substitute products or services– Threat of new entrants– Rivalry among existing competitors

22MIS, Chapter 1


Exhibit 1.4 The Five Forces Model

23MIS, Chapter 1



Porter’s Five Forces Model: Understanding the Business Environment (cont'd.)1. Buyer power

– High when customers have many choices – Low when they have few choices– Limit buyers’ choices by offering services that

make it difficult for customers to switch

2. Supplier power– High when customers have fewer options – Low when customers have more options– Use information systems to make their

products and services cheaper

24MIS, Chapter 1



Porter’s Five Forces Model: Understanding the Business Environment (cont'd.)

3. Threat of substitute products or services– High when many alternatives for an

organization’s products or services available– Add services to make organization more

distinct– Add fees to discourage customers from

switching

4. Threat of new entrants – Low when duplicating a company’s product or

service is difficult– Use focus strategies to ensure that this threat

remains low

25MIS, Chapter 1



Porter’s Five Forces Model: Understanding the Business Environment (cont'd.)

5. Rivalry among existing competitors – High when many competitors occupy the same

marketplace position– Low when there are few competitors

26MIS, Chapter 1



Future Outlooks

• Hardware and software costs continue to decline– Processing information less expensive in the

future• Artificial intelligence and related

technologies will continue to improve and expand

• Computer literacy will improve• Networking technology will improve• Personal computers will continue to

improve in power and quality

27MIS, Chapter 1



Future Outlooks (cont'd.)

• Internet growth and acceptance will continue

• Computer criminals will become more sophisticated– Protecting personal identity information will

become more difficult

28MIS, Chapter 1



Summary

• Examples of uses for computers and information systems

• Difference between computer literacy and information literacy

• Management information system (MIS)– Data, database, process, and information

• Porter– Three competitive strategies – Five Forces Model

Documents

1 MIS, Chapter 1 ©2011 Course Technology, a part of Cengage Learning INFORMATION SYSTEMS: AN OVERVIEW CHAPTER 1 Hossein BIDGOLI MIS Cambios en este color