9781423901785_PPT_ch01

Management Information Systems, Sixth EditionChapter 1Business Information Systems: An Overview

Management Information Systems, Sixth Edition

Management Information Systems, Sixth Edition*ObjectivesExplain why information technology mattersDefine digital information and explain why digital systems are so powerful and usefulExplain why information systems are essential to businessDescribe how computers process data into useful information for problem solving and decision makingIdentify the functions of different types of information systems in business


Objectives (continued)Describe careers in information technologyIdentify major ethical and societal concerns created by widespread use of information technology

Management Information Systems, Sixth Edition*


Does Information Technology Matter?Hackett Group study: Does IT Matter? Hackett Concludes the Answer is YesWorlds best performing companies spent 7% more per employee on IT than typical companiesThey recouped the investment fivefold in lower operational costsTodays business professionals must know how to develop and use ITManagement Information Systems, Sixth Edition*


The Power of Digital SystemsBinary counting system uses only two digits: 0 and 1Digital systems: Computers and devices that use the binary systemCan represent any information as a combination of zeros and onesInformation can be represented, stored, communicated, and processed digitallyManagement Information Systems, Sixth Edition*


The Power of Digital Systems (continued)Digital information is stored and communicated by means of electromagnetic signalsExtremely fastDigital copy is an exact copy of the originalAccuracy and speed make digital systems powerful, useful, and importantManagement Information Systems, Sixth Edition*


Management Information Systems, Sixth Edition*The Purpose of Information SystemsBusinesses use information systemsTo make sound decisionsTo solve problemsProblem: any undesirable situationDecision: arises when more than one solution to problem existsBoth problem solving and decision making require information


Management Information Systems, Sixth Edition*The Purpose of Information Systems (continued)Keys to success in business:Gathering correct information efficientlyStoring informationUsing informationPurpose of information systems is to support these activities


Management Information Systems, Sixth Edition*Data, Information, and Information SystemsData, information, and system are commonly used termsImportant to understand their similarities and differences


Management Information Systems, Sixth Edition*Data vs. InformationData: a given or factCan be number, statement, or pictureIs the raw material in the production of informationInformation: facts or conclusions that have meaning within contextComposed of data that has been manipulated


Management Information Systems, Sixth Edition*Data ManipulationData is manipulated to make useful informationNew information can be generated from data, such as averages, trends, etc.Survey is common method of collecting dataRaw data is hard to readInformation is more useful to business than data


Management Information Systems, Sixth Edition*Generating InformationProcess: the manipulation of dataUsually produces informationMay produce more dataA piece of information (output of a process) in one context may be considered data (input to a process) in another context


Management Information Systems, Sixth Edition*Generating Information (continued)


Management Information Systems, Sixth Edition*Information in ContextNot all information is usefulTo be useful, information must be:RelevantCompleteAccurateIn business, information must also be:CurrentObtained in a cost-effective manner


Management Information Systems, Sixth Edition*Information in Context (continued)


Management Information Systems, Sixth Edition*What Is a System?System: array of components that work together to achieve goal or goalsSystemAccepts inputProcesses inputProduces output


Management Information Systems, Sixth Edition*What is a System? (continued)System may have multiple goalsSystem may contain subsystemsSubsystem: component of a larger systemSubsystems have subgoals that contribute to main goalSubsystems can receive input from and transfer output to other subsystems


What is a System? (continued)Management Information Systems, Sixth Edition*


Management Information Systems, Sixth Edition*What is a System? (continued)Closed system: has no connections with other systemsOpen system: interfaces and interacts with other systemsOften a subsystem of a bigger systemSubsystems by definition are always openInformation system (IS): components that work together to process data and produce information


Management Information Systems, Sixth Edition*Information and ManagersSystems thinking: thinking of an organization in terms of subsystems Powerful management approach that creates a framework for problem solving and decision makingHelps keep managers focused on overall goalsDatabase: collection of electronic recordsInformation systems automate exchange of information among subsystems


Management Information Systems, Sixth Edition*Information and Managers (continued)Information map: description of data and information flow within an organizationShows a network of information subsystems that exchange information with each other and with the outside worldInformation technology: technologies that facilitate construction and maintenance of information systems


Management Information Systems, Sixth Edition*The Benefits of Human-Computer SynergyHumans are relatively slow and make mistakesComputers cannot make decisions unless programmed to do soSynergy: combining resources to produce output that exceeds the sum of outputs of the separate resources by themselvesHuman-computer combination allows human thought to be translated into efficient processing of data


Management Information Systems, Sixth Edition*The Benefits of Human-Computer Synergy (continued)


Management Information Systems, Sixth Edition*Information Systems in OrganizationsInformation system consists of data, hardware, software, telecommunications, people, and proceduresComputer-based Information system: system with one or more computers at centerOrganizations lag behind and lose competitiveness if they do not use information systems


Information Systems in Organizations (continued)Trends that have made information systems important in business:Growing power and decreasing cost of computersGrowing capacity and decreasing costs of data storage devicesIncreasing variety and ingenuity of computer programsAvailable, reliable, affordable, and fast communications links to the InternetGrowth of the InternetIncreasing computer literacy of the workforce



Management Information Systems, Sixth Edition*Information Systems in Organizations (continued)


Management Information Systems, Sixth Edition*The Four Stages of ProcessingInput: collect and introduce data to systemTransaction: a business event, usually entered as inputTransaction processing system (TPS): a system that records transactionsInput devices include keyboards, bar code readers, voice recognition systems, touch screensData processing: perform calculations on input


Management Information Systems, Sixth Edition*The Four Stages of Processing (continued)Output: what is produced by the information systemOutput devices include printers and speakersStorage: maintaining vast amounts of dataStorage devices include optical discs


Management Information Systems, Sixth Edition*Computer Equipment for Information SystemsDifferent technologies are used to support the four data processing functions: Input devices: receive inputComputers: process dataOutput devices: display informationStorage devices: store dataNetwork devices: transfer dataTelecommunications: communication that takes place between computers over great distances


Management Information Systems, Sixth Edition*Computer Equipment for Information Systems (continued)


Management Information Systems, Sixth Edition*From Recording Transactions to Providing Expertise: Types of Information SystemsDifferent types of information systems serve different functionsCapabilities of applications have been combined and mergedManagement Information System: a system that supports planning, control, and making decisions



Transaction Processing Systems

Transaction processing system (TPS): most widely used type of systemRecords data collected at point where organization transacts business with other partiesPoint-of-sale machines: record salesInclude cash registers, ATMs, and purchase order systems



Supply Chain Management Systems

Supply chain: sequence of activities involved in producing and selling products or servicesFor products, activities include marketing, purchasing raw materials, manufacturing and assembly, packing and shipping, billing, collection, and after-sale servicesFor services, activities include marketing, document management, and monitoring customer portfolios


Supply Chain Management Systems (continued)Supply chain management (SCM) systems: systems that support these activitiesAlso known as enterprise resource planning systemsSCM systems eliminate the need to reenter data that was captured elsewhere in the organizationAn SCM is an enterprise application Management Information Systems, Sixth Edition*


Management Information Systems, Sixth Edition*Customer Relationship Management SystemsCustomer relationship management (CRM) systems: systems for managing relations with customersUsed in combination with telephones to provide customer serviceOften linked to Web applications that track online transactionsRetaining loyal customers is less expensive than acquiring new ones



Business Intelligence Systems

Business intelligence (BI) systems: systems that glean relationships and trends from raw data to help organization competeOften contain statistical modelsAccess large pools of dataData warehouse: large database that usually store transactional records



Decision Support and Expert Systems

Decision support system (DSS): supports decision makingRelies on models to produce tablesExtrapolates data to predict outcomesHelps answer What if? questionsExpert system (ES): supports knowledge-intensive decision makingUses artificial intelligence techniquesCan preserve the knowledge of retiring experts


Management Information Systems, Sixth Edition*Geographic Information SystemsGeographic information system (GIS): ties data to physical locationsRepresents data on a map in different formatsMay reflect demographic information in addition to geographic informationMay use information from global positioning system (GPS) satellitesExamples: Google Earth, Mapquest


Management Information Systems, Sixth Edition*Geographic Information Systems (continued)


Management Information Systems, Sixth Edition*Information Systems in Business FunctionsFunctional business area: services within a company that support main businessIncludes accounting, finance, marketing, and human resourcesPart of a larger enterprise system



Accounting

Accounting information systems:Help record transactionsProduce periodic statementsCreate required reports for lawCreate supplemental reports for managersContain controls to guarantee adherence to standards



Finance

Finance systems: Facilitate financial planning and business transactionsTasks include organizing budgets, managing cash flow, analyzing investments, and making decisions



Marketing

Marketings purpose is to pinpoint likely customers and promote productsMarketing information systems:Analyze demand for products in regions and demographic groupsIdentify trends in demand for products/services Help analyze how advertising campaigns affect profitWeb provides opportunity to collect marketing data as well as promote products and services



Human Resources

Human resource management systems aid record-keepingMust keep accurate recordsAids recruiting, selection, placement, benefits analysis, requirement projectionsPerformance evaluation systems provide grading utilities


Management Information Systems, Sixth Edition*Web-Empowered EnterprisesE-commerce: buying and selling goods and services through InternetInternet is a vast network of computers connected globallyWeb has a profound impact on information systemsAn emerging advertising mediumA place to conduct e-commerce


Management Information Systems, Sixth Edition*Careers in Information SystemsInformation technology professionals are increasingly in demandNetwork administrator, system administrator, system analyst, software engineering, data communications analyst, and database administrator jobs are increasing in demand


Help Desk TechnicianHelp desk technician:Supports end users in their daily use of ITOften provides help via telephoneMay use software that gives them control of the users PCMay need to have knowledge of a wide variety of PC applicationsManagement Information Systems, Sixth Edition*



Systems Analyst

Systems analyst: Researches, plans, and recommends software and systems choicesResponsible for developing cost analyses, design considerations, implementation timelines, and feasibility studiesInvolves analyzing system requirements, documenting development efforts, and providing specifications for programmersRequires communication and presentation skills


Management Information Systems, Sixth Edition*Database AdministratorDatabase administrator (DBA): responsible for databases and data warehousesDevelops and acquires database applicationsMust adhere to federal, state, and corporate regulations to protect privacy of customers and employeesResponsible for securing the database


Management Information Systems, Sixth Edition*Network AdministratorNetwork administrator: acquires, implements, manages, maintains, and troubleshoots networksImplements securityFirewallsAccess codes


System AdministratorSystem administrator: manages an organizations computer operating systemsMust ensure that operating systems work together, support business requirements, and function properlyResponsible for backup and recovery, adding and deleting user accounts, performing system upgradesManagement Information Systems, Sixth Edition*



Webmaster

Webmaster: creates and maintains Web siteMust be familiar with Web transaction software, payment-processing software, security softwareManages both the intranet and extranetDemand for Webmasters grows as more businesses use Web


Management Information Systems, Sixth Edition*Chief Security OfficerChief security officer (CSO): supervises security of information systemPosition exists due to growing threat to information securityUsually reports to chief information officer (CIO)


Management Information Systems, Sixth Edition*Chief Information Officer and Chief Technology OfficerChief information officer (CIO): responsible for all aspects of information systemOften a corporate vice presidentMust have technical understanding of information technologies as well as business knowledgeChief technology officer (CTO): has similar duties as CIO


Management Information Systems, Sixth Edition*Chief Information Officer and Chief Technology Officer (continued)


Management Information Systems, Sixth Edition*SummaryComputer-based information systems pervade almost every aspect of our livesA system is a set of components that work together to achieve a common goalSubsystem: a system performs a limited task that produces an end result, which must be combined with other products from other systems to reach an ultimate goalData processing has four stages


Management Information Systems, Sixth Edition*Summary (continued)Any IS that helps in management is a management information system (MIS)Many different types of MISEnterprise application systems (SCM or ERP) tie together different functional areas of a businessISs are used in many business functions, including accounting, finance, marketing, and human resources


Management Information Systems, Sixth Edition*Summary (continued)The job prospects for IT professionals are brightIT has created societal concerns regarding privacy, identity theft, spam, and Web annoyances


****People require information for many reasons and varied ways. For instance, you probably seek information for entertainment and enligthenment by viewing telvision, watching movies, browsing the internet, listening to the radio, and reading newspapers, magazines and books. In business, however, people and organizations seek and use information specifically to make sound decision and to solve problems.**********************************************

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9781423901785_PPT_ch01