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Management Information Systems
Global Business and
Information Systems
Chapter 1&2
Lecturer: Dr Richard Boateng
Email: richard@pearlrichards.org
Feb 3rd 2010
Management Information Systems
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Management Information Systems
An information system (IS) is an arrangement of people,
data, processes, and information technology that interact to
collect, process, store, and provide as output the information
needed to support an organization.
Information technology is a contemporary term that
describes the combination of computer technology (hardware
and software) with telecommunications technology (data,
image, and voice networks).
Management Information Systems
Figure 1 An Integrated View of Information and Communication Technologies
Source: Adapted from Duncome and Heeks (2001)
HRIS
Management Information Systems
Data: Streams of raw facts representing events
such as business transactions
Information: Clusters of facts that are meaningful
and useful to human beings in the processes such
as making decisions
Management Information Systems
More Qu
1. What are the major types of systems in a business?
What role do they play?
2. How do information systems support the major
business functions: sales and marketing,
manufacturing and production, finance and
accounting, and human resources?
Management Information Systems
Six Types of Information Systems
6. Transaction Process
Systems (TPS)
5. Office Systems (OS)
3. Management Information
Systems (MIS)
2. Decision Support
Systems (DSS)
1. Executive Support
System (ESS)
4. Knowledge Work
Systems (OS)
Strategic-LevelPlan and Project,
Forecast- Senior Managers
Management-Level
Decision Analysis; Summary Reports- Staff Managers & Middle Managers
Knowledge-Level
Models; Graphics; Documents & Mail
-Professionals & Clerical Workers
Operational-LevelSorting; lists; Detailed
Reports; Pay Slips- Operations
Personnel; Supervisors
Management Information Systems
Systems that Span the Business
SAP ERP:
Human Resource Systems - Leave Request
Example
Executive Support Systems – Sales Planning
and Forecasting
http://www.sap.com/solutions/business-suite/erp/demos/index.epx
Management Information Systems
A transaction processing system (TPS) is an information
system that captures and processes data about business
transactions.
A management information system (MIS) is an
information system that provides for management-oriented
reporting based on transaction processing and operations of
the organization.
A decision support system (DSS) is an information system
that either helps to identify decision making opportunities or
provides information to help make decisions.
Management Information Systems
An expert system is an information system that captures
the expertise of workers and then simulates that expertise to
the benefit of nonexperts.
A communications and collaboration system is an
information system that enables more effective
communications between workers, partners, customers, and
suppliers to enhance their ability to collaborate.
An office automation system is an information system that
supports the wide range of business office activities that
provide for improved work flow between workers.
Management Information Systems
A firm which uses information systems to
become networked and decentralized and to
digitalize their business processes and foster
innovation and creativity.
Management Information Systems
International network of networks
Universal technology platform: Any computer can
communicate with any other computer
World Wide Web and Websites
The Internet
Management Information Systems
4 Major Systems Defining the Digital Firm
Supply chain management systems
Customer relationship management systems
Enterprise systems
Knowledge management systems
The Competitive Business Environment and the Emerging Digital Firm
Management Information Systems
Video Sessions
I-800 Flowers (http://www.1800flowers.com)
for video: http://news.zdnet.com/2422-12794_22-334892.html
Blue Nile
(http://www.bluenile.com)
for video: http://news.zdnet.com/2422-12794_22-334950.html
Management Information Systems
I-800 Flowers A network of 9000 florists
Mobile (device) service
Call Centre
Blogs
User Experience
- 75 % Customers from Web
- Visual Experience
- Portray the beauty of products
- Easy Experience, comfortable
- Efficient
TOWARD THE DIGITAL FIRM
• Blue Nile• 60,000 jewelry
• 3-4 days delivery times
• Unique products need unique
technology
User Experience
- Understand Gender
Preferences
- Women do the selection Men
do the buying
- Competitive Price – no
middlemen/commissions
- Availability: 24/7
Management Information Systems
Role of Information Systems
Enabling
Processes and
Functions in
Organizations
Supporting
Processes and
Functions in
Organizations
The websites of these
companies support the sale
of electronic products which
are primarily done in the
shops
The websites of these companies enable
the sale of products. These companies
primarily do not have any
shops/showrooms for consumers or may
fail to operate efficiently without
their websites.
Management Information Systems
Electronic Commerce: Sharing business information, managing business relationships and facilitating transactions with Internet technology. (linking buyers and sellers).
Electronic Business: Executing all the firm’s business processes with Internet technology. (sales, finance, human resources, manufacturing)
Intranet: Business builds private, secure network based on Internet technology
Extranet: Extension of intranet to authorized external users
Management Information Systems
Transformation of the Business Enterprise
Flattening
Decentralization
Flexibility
Location independence
Low transaction and coordination costs
Empowerment
Collaborative work and teamwork
Management Information Systems
Business Perspective of Information Systems
ORGANIZATION TECHNOLOGY
MANAGEMENT
INFORMATION
SYSTEMS
People
Structure
Procedures
Politics
Culture
Hardware
Software
Storage
Senior, middle, operational
Management Information Systems
Key Elements:
People: Managers, knowledge workers, data
workers, production or service workers
Structure: Organization chart , groups of specialists,
products, geography
Organizations
Management Information Systems
Operating procedures: Standard operating procedures
(SOP, rules for action)
Politics: Power to persuade, get things done
Culture: Customs of behavior
Organizations
Management Information Systems
Levels:
Senior managers: make long-range strategic decisions about products and services
Middle managers: Carry out the programs and plans of senior management
Operational managers: monitor the firm’s daily activities
Management
Management Information Systems
Tools managers use to cope with change
Hardware: Physical equipment
Software: Detailed preprogrammed instructions
Storage: Physical media for storing data and the software
Computer Technology
Management Information Systems
A firm which uses information systems to become
networked and decentralized and to digitalize their
business processes and foster innovation and
creativity.
Management Information Systems
How Digital is your firm?
Low
Digitalization
Less network
centralization
Highly networked
decentralization
High
Digitalization
Management Information Systems
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Management Information Systems
Four powerful worldwide changes that have altered the
business environment:
1. Emergence of the Global Economy
2. Transformation of Industrial Economies
3. Transformation of the Business Enterprise
4. The Emerging Digital Firm
Management Information Systems
Major Types of Systems in Organizations
Typical Applications of Transaction Processing Systems (TPS)
Management Information Systems
Major Types of Systems in Organizations
How management information systems obtain their data
from the organization’s TPS
Management Information Systems
Major Types of Systems in Organizations
Transaction Processing Systems (TPS)
Basic business systems that serve the organization’s
operational level
Input:Transactions, events
Processing: Sorting, listing, merging, updating
Output: Detailed reports, lists, summaries
Users: Operations personnel, supervisors
Four Major Types of Systems
Management Information Systems
Enterprise Applications
Knowledge Management Systems (KMS)
Collect relevant knowledge and experience in firm to
support business processes and management decisions
Manage and distribute documents and other digital
knowledge objects
Knowledge Management Systems in the Enterprise
Management Information Systems
Enterprise Applications
Role of Knowledge Management Systems
Acquire knowledge
Store knowledge
Distribute knowledge
Apply knowledge
Knowledge Management Systems in the Enterprise
Management Information Systems
Major Types of Systems in Organizations
Management Information Systems (MIS)
Serve management level; provide reports and access to company data
Input: Summary transaction data, high-volume data, simple models
Processing: Routine reports, simple models, low-level analysis
Output: Summary and exception reports
Users: Middle managers
Four Major Types of Systems
Management Information Systems
Major Types of Systems in Organizations
Decision-Support Systems (DSS)
Serve management level with data analysis for making decisions
Input: Low-volume data or massive databases, analytic models, and data analysis tools
Processing: Interactive, simulations, analysis
Output: Special reports, decision analyses, responses to queries
Users: Professionals, staff managers
Four Major Types of Systems
Management Information Systems
Major Types of Systems in Organizations
Executive Support Systems (ESS)
Provide communications and computing environment that
serves the organization’s strategic level
Input: External and internal aggregate data
Processing: Graphics, simulations, interactive
Output: Projections, responses to queries
Users: Senior Managers
Four Major Types of Systems
Management Information Systems
Major Types of Systems in Organizations
Model of a typical executive support system
Management Information Systems
48
Thank You for Listening
Contact: richard@pearlrichards.org
Website: www.pearlrichards.org
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