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Chapter No 1 Batch 2010 1 Compiled By: Muzammil Ahmad Khan and Kashif Shaikh Management Information Systems Sir Syed University of Engineering and Technology Introduction Management Information Systems Compiled By: Muzammil Ahmad Khan Muhammad Kashif Shaikh 1-2 HS-107 : Management Information Systems Course Objectives: Upon successful completion of this course, the student will be able to: Understand the role of Information Systems (IS) in organizations. Understand how Information Systems (IS) can be used to create competitive advantages for businesses.

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Chapter No 1 Batch 2010

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Compiled By: Muzammil Ahmad Khan and Kashif Shaikh

Management Information Systems

Sir Syed University of Engineering and Technology

Introduction

Management Information Systems

Compiled By:

Muzammil Ahmad Khan

Muhammad Kashif Shaikh

1-2

HS-107 : Management Information Systems

Course Objectives:

Upon successful completion of this course, the student will be able to:

Understand the role of Information Systems (IS) in organizations.

Understand how Information Systems (IS) can be used to create competitive advantages for businesses.

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HS-107 : Management Information Systems

Course Objectives:

Understand the key elements associated with designing Information Systems (IS).

Understand the key elements associated with planning and managing Information Systems (IS).

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HS-107 : Management Information Systems

Prerequisites:

Familiarity with basic computer devices and terminologies.

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MIS Books

Text Book

1. Management Information System, 8th EditionBy: James A. O' Brien , George Marakas

Reference Books

1. Management Information System, 9th EditionBy: Kenneth C. Laudon, Jane P. Laudon

2. Introduction to Information Systems: Supporting and Transforming BusinessBy: Rainer, Turban, Potter, 1st Edition

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Marks Distribution

Mid Term ________ 15Assignment + Class Performance + Quiz + Presentation + Report ________ 5Semester Final Paper ________ 80Total Marks ________ 100

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Marks Distribution [ Sessional ]

Class Test ______________ 10 PointsAssignment ______________ 10 PointsClass Presentation ______________ 15 PointsProject ______________ 15 PointsTotal Points ______________ 50 Points

Performance Bonus ______________ 10 Points

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MIS Website

http://www.ssuet.edu.pk/courses/hs107/mis

http://taimoor/hs107/mis

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Course Instructors

Muhammad Kashif Shaikh [email protected] Professor, CEDRoom No: BS-04Section A, D, F (Computer, Batch 2010)

Muzammil Ahmad Khan [email protected] Professor, CEDRoom No: BS-04Section B, C, E (Computer, Batch 2010)

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Project

Comprehensive study of Information Systems of an Organization.Organization OverviewOrganizational HierarchyMain business function of the organizationAnalysis of IT Department

Role/ActivitiesResourcesIllustration of Computer based Information SystemSystem Development Life Cycle

Analysis of other business SystemSales, Marketing, Supply Chain, Accounts, HRHow IT interact with other business system?

DFD of main business function and ISGantt chart and PERT chartIdentification of problems/weaknesses in the existing systemSuggestions and RecommendationsConclusion

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Course Outline

Module 1: IntroductionChapter 1: Foundations of IS in Business Chapter 2: Competing with Information Technology

Module 2: Hard and Soft AspectChapter 3: Computer Hardware Chapter 4: Computer Software Chapter 5: Data Resource Management Chapter 6: Telecommunications and Networks

Module 3: E-BusinessChapter 7: Electronic Business Systems Chapter 10: Decision Support Systems

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Module 4: IT in BusinessChapter 11: Developing Business/IT StrategiesChapter 12: Developing Business/IT Solutions

Module 5: Special TopicsData Flow DiagramPERT and GANTT Chart

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Foundations of Information Systems in

Business

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1. Understand the concept of a system and how it relates to information systems

2. Explain why knowledge of information systems is important for business professionals

Identify five areas of information systems knowledge needed

3. Give examples to illustrate how business applications of information systems can support a firm’s

Business processesManagerial decision makingStrategies for competitive advantage

Learning Objectives

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4. Provide examples of information systems from your experiences with business organizations in the real world

5. Identify challenges that a business manager might face in managing the successful, ethical development and use of information technology

6. Provide examples of the components of real world information systems

7. Become familiar with the myriad of career opportunities in information systems

Learning Objectives

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Foundation Concepts

Why study information systems and information technology?

Vital component of successful businessesHelps businesses expand and competeImproves efficiency and effectiveness of business processesFacilitates managerial decision making and workgroup collaboration

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What is a System?

A set of interrelated componentsWith a clearly defined boundaryWorking togetherTo achieve a common set of objectives

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What is an Information System?

An organized combination of…PeopleHardware and softwareCommunication networksData resourcesPolicies and procedures

This system…Stores, retrieves, transforms, and disseminates information in an organization

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Information Technologies

Information SystemsAll the components and resources necessary to deliver information and functions to the organizationCould be paper based

Information TechnologiesHardware, software, networking, data management

Our focus will be on computer-based information systems (CBIS)

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What Should Business Professionals Know?

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Fundamental Roles of IS in Business

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Trends in Information Systems

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What is E-Business?

Using Internet technologies to empower…Business processesElectronic commerceCollaboration within a companyCollaboration with customers, suppliers, and other business stakeholders

In essence, an online exchange of value

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How E-Business is Being Used

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E-Business Use

ReengineeringInternal business processes

Enterprise collaboration systemsSupport communications, coordination and coordination among teams and work groups

Electronic commerceBuying, selling, marketing, and servicing of products and services over networks

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Types of Information Systems

Operations Support SystemsEfficiently process business transactionsControl industrial processesSupport communication and collaborationUpdate corporate databases

Management Support SystemsProvide information as reports and displaysGive direct computer support to managers during decision-making

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Purposes of Information Systems

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Operations Support Systems

What do they do?Efficiently process business transactionsControl industrial processesSupport communications and collaborationUpdate corporate databases

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Types of Operations Support Systems

Transaction Processing SystemsRecord and process business transactionsExamples: sales processing, inventory systems, accounting systems

Process Control SystemsMonitor and control physical processesExample: using sensors to monitor chemical processes in a petroleum refinery

Enterprise Collaboration SystemsEnhance team and workgroup communicationExamples: email, video conferencing

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Two Ways to Process Transactions

Batch ProcessingAccumulate transactions over time and process periodicallyExample: a bank processes all checks received in a batch at night

Online ProcessingProcess transactions immediatelyExample: a bank processes an ATM withdrawal immediately

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Management Support Systems

What do they do?Provide information and support for effective decision making by managers

Management information systemsDecision support systemsExecutive information systems

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Types of Management Support Systems

Management Information Systems (MIS)Reports and displays Example: daily sales analysis reports

Decision Support Systems (DSS)Interactive and ad hoc supportExample: a what-if analysis to determine where to spend advertising dollars

Executive Information Systems (EIS)Critical information for executives and managersExample: easy access to actions of competitors

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Other Information Systems

Expert SystemsProvide expert adviceExample: credit application advisor

Knowledge Management SystemsSupport creation, organization, and dissemination of business knowledge throughout companyExample: intranet access to best business practices

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Other Information Systems

Strategic Information SystemsHelp get a strategic advantage over customerExamples: shipment tracking, e-commerce Web systems

Functional Business SystemsFocus on operational and managerial applications of basic business functionsExamples: accounting, finance, or marketing

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IT Challenges and Opportunities

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Measuring IT Success

EfficiencyMinimize cost, time, and use of information resources

EffectivenessSupport business strategiesEnable business processesEnhance organizational structure and cultureIncrease customer and business value

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Developing IS Solutions

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Challenges and Ethics of IT

Application of ITCustomer relationship managementHuman resources managementBusiness intelligence systems

Potential HarmInfringements on privacyInaccurate informationCollusion

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Challenges and Ethics of IT

Potential RisksConsumer boycottsWork stoppagesGovernment intervention

Possible ResponsesCodes of ethicsIncentivesCertification

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Ethical Responsibilities

What uses of IT might be considered improper or harmful to other individuals or society?What is the proper business use of the Internet or a company’s IT resources?How can you protect yourself from computer crime?

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IT Careers

Economic downturns have affected all job sectors, including ITRising labor costs are pushing jobs to India, the Middle East, and Asia-Pacific countriesHowever, IT employment opportunities are strong, with new jobs emerging dailyShortages of IT personnel are frequentThe long-term job outlook is positive and exciting

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IT Careers

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IT Careers

Job increases will be driven by…Rapid growth in computer system design and related servicesThe need to backfill positionsInformation sharing and client/server environmentsThe need for those with problem-solving skillsFalling hardware and software prices, which will fuel expanded computerization of operations

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The IS Function

The IS function is…A major functional area of businessAn important contributor to operational efficiency, employee productivity, morale, customer service and satisfactionA major source of information and support for decision makingA vital ingredient in developing competitive products and services in the global marketplaceA dynamic and challenging career opportunityA key component of today’s networked business

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System Concepts: A Foundation

System concepts help us understand…Technology: hardware, software, data management, telecommunications networksApplications: to support inter-connected information systemsDevelopment: developing ways to use information technology includes designing the basic components of information systemsManagement: emphasizes the quality, strategic business value, and security of an organization’s information systems

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What is a System?

A system is…A set of interrelated componentsWith a clearly defined boundaryWorking togetherTo achieve a common set of objectivesBy accepting inputs and producing outputsIn an organized transformation process

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Basic Functions of a System

InputCapturing and assembling elements that enter the system to be processed

ProcessingTransformation process that converts input into output

OutputTransferring transformed elements to their ultimate destination

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Cybernetic System

All systems have input, processing, and outputA cybernetic system, a self-monitoring, self-regulating system, adds feedback and control:

Feedback is data about the performance of a systemControl involves monitoring and evaluating feedback to determine whether a system is moving toward the achievement of its goal

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A Cybernetic System

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A Business as a System

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Other System Characteristics

If a system is one of the components of a larger system, it is a subsystem

The larger system is an environmentSeveral systems may share the same environment

Some may be connected via a shared boundary, or interface

Types of systems…OpenAdaptive

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Components of an IS

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Information System Resources

People ResourcesSpecialistsEnd users

Hardware ResourcesMachinesMedia

Software ResourcesProgramsProcedures

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Information System Resources

Data ResourcesProduct descriptions, customer records, employee files, inventory databases

Network ResourcesCommunications media, communications processors, network access and control software

Information ResourcesManagement reports and business documents using text and graphics displays, audio responses, and paper forms

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Data Versus Information

Data are raw facts about physical phenomena or business transactionsInformation is data that has been converted into meaningful and useful context for end usersExamples:

Sales data is names, quantities, and dollar amountsSales information is amount of sales by product type, sales territory, or salesperson

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IS Activities

Input of data resourcesData entry activities

Processing of data into informationCalculations, comparisons, sorting, and so on

Output of information productsMessages, reports, forms, graphic images

Storage of data resourcesData elements and databases

Control of system performanceMonitoring and evaluating feedback

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Recognizing Information Systems

Business professionals should be able to look at an information system and identify…

The people, hardware, software, data, and network resources they useThe type of information products they produceThe way they perform input, processing, output, storage, and control activities