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Study Guide in ELEC 104 MIS with e-Commerce and Internet Marketing Module No. 1

STUDY GUIDE FOR MODULE NO. 1

INTRODUCTION TO MANAGEMENT INFORMATION SYSTEMS

MODULE OVERVIEW

This module will acquaint you with the concept of Management Information Systems (MIS) and its
profound influence on business organizations. While many recognize information systems as
encompassing technologies like computers, keyboards, and networks, it's essential to understand that
technology is just a small facet. Some argue that other components of MIS, such as people and
processes, play more crucial roles. Information systems comprise three key components: technology,
people, and processes. As you progress through the course, you will delve deeper into each of these
components introduced in this module.

MIS is propelled by innovation. The convergence of the right technology, processes, and people is
pivotal in addressing challenges using novel techniques and strategies. Within this module, you will
explore the practical applications of MIS in business and gain insights into how far MIS has evolved
since the dawn of the information age.

MODULE LEARNING OUTCOMES

Upon completion of this chapter, you will be able to:

a. Explain the distinctions among data, information, and knowledge.

b. Articulate the definition of an information system by recognizing its primary components.
c. Provide an overview of the fundamental history of information systems.
d. Explain the concept of innovation and elucidate the role of technology in contributing to it.

LEARNING CONTENT: DATA, INFORMATION, AND KNOWLEDGE

Introduction

Data, information, and knowledge form a continuum that plays a vital role in today's information-driven
world. Understanding the distinctions and relationships among these concepts is crucial for effective decision-
making and innovation in various fields.

Data. Data consists of raw facts and figures, often in the form of numbers, text, or symbols. It lacks
context and meaning on its own. For instance, a list of temperatures (numbers) or a collection of
words (text) constitutes data. In the digital era, data is ubiquitous, generated by various sources such
as sensors, social media, and business transactions.

Information. Information arises when data is processed, organized, and given context, resulting in a
meaningful and usable form. It answers questions like "who," "what," "when," and "where." For
example, converting a list of temperatures into a weather report provides information. Information is
the foundation for communication and understanding in both personal and organizational settings.

Knowledge. Knowledge goes beyond information, involving the interpretation and synthesis of
information. It is the understanding and application of information in a meaningful context. Knowledge
incorporates experience, values, and insights. In a business context, knowledge enables employees
to make informed decisions and solve complex problems.

Data, information, and knowledge are interconnected elements crucial for decision-making and
problem-solving. The journey from raw data to meaningful knowledge involves processing, interpretation, and
contextualization. Understanding these concepts enhances our ability to extract value from the vast amounts

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Study Guide in ELEC 104 MIS with e-Commerce and Internet Marketing Module No. 1

of information available, fostering innovation and informed decision-making in diverse fields.

LEARNING ACTIVITY 1

General Instructions:

A. References: Ensure you include citations from the provided references where appropriate. If you consult
additional sources, include those as well.
B. Structure: Organize your responses with a clear introduction, body, and conclusion for each question.
C. Critical Thinking: Demonstrate critical thinking skills by analyzing and synthesizing information in your
responses.
D. Application: Use real-world examples and practical applications to illustrate key concepts.
E. Clarity: Aim for clarity, coherence, and conciseness in your writing.
F. Word Count: While there is no strict word count, strive for a comprehensive yet concise exploration of
each topic.

Note: References are integral to supporting your answers. Properly cite sources and feel free to consult
additional literature to enhance the depth of your responses.

1. Describe the characteristics of data and explain why it lacks context and meaning on its own. Provide
examples of how data is generated in the digital era. How does the ubiquity of data impact decision-
making in various fields?

2. Elaborate on the process through which data transforms into information. Discuss the importance of
processing, organization, and contextualization in creating meaningful and usable information. Provide
real-world examples to illustrate the transition from data to information.

3. Differentiate between information and knowledge, emphasizing the interpretation and synthesis involved
in knowledge creation. How does knowledge, incorporating experience and values, contribute to
informed decision-making and problem-solving in a business context? Provide practical examples to
support your explanation.

LEARNING CONTENT: INTRODUCTION TO INFORMATION SYSTEMS

Introduction to Information Systems: Understanding the Foundation

In the ever-evolving landscape of technology, an understanding of Information Systems (IS) is critical

for businesses seeking to navigate the complexities of the digital age. Let's delve into the fundamental
concepts of Information Systems, exploring what they are and honing in on the specific domain of

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Management Information Systems.

Information System

At its core, an Information System is a coordinated set of components that work together to collect,
process, store, and disseminate information to support decision-making, coordination, control, analysis, and
visualization in an organization (Laudon & Laudon, 2019). This holistic approach involves a synergy of
hardware, software, data, procedures, and human elements.

Understanding the diverse components within an Information System is crucial. Hardware includes
physical devices like computers and servers, while software comprises applications and programs. Data
represents the raw facts, and procedures are the instructions governing the system. Finally, people are
integral, interacting with the system to input, process, and interpret information.

Major types of information system:

1. Transaction processing system

2. Decision support system
3. Executive information system
4. Enterprise resource planning
5. Expert systems
6. Online Analytical Processing (OLAP)
7. Management information system

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1. Transaction Processing System. The main purpose of Transaction Processing System to fulfill the basic
needs of record keeping of an organization. For example: (Payroll System, Billing Systems, Purchasing
System, and Shipping of record)

The data is employed to generate reports, which may include monthly, quarterly, or annual reports, as well as
on-demand reports based on the organization's requirements. The Transaction Process System efficiently
manages routine transactions.

2. Decision Support System. The Decision Support System (DSS) analyzes data utilized in organizational
decision-making by management. This data may originate from either internal or external sources. For
instance, when assessing product prices, management might utilize external data, such as market prices.

DSS becomes essential when dealing with intricate data needed for decision-making. It aids decision-makers
in the decision-making process, potentially involving the use of complex databases and spreadsheets to
create models for challenging and critical situations.

3. Executive Information System. The Executive Information System, also referred to as the Executive
Support System, is designed for the senior management of an organization. It aids them in analyzing trends
by accessing diverse reports, including summaries, to make strategic decisions for the business.

These systems are user-friendly and offer a variety of reports, particularly graphical reports. These reports are
generated from extensive datasets collected from various sources.

For instance, if management needs sales data categorized by department or product over a specific
timeframe, the system provides such information. Additionally, the system incorporates details about
inventory, assets, and revenue, whether collected or projected.

4. Enterprise Resource Planning. Enterprise Resource Planning (ERP) is a comprehensive system that
encompasses the entirety of business processes, featuring distinct integrated modules. Each module
addresses specific departments within an organization. These ERP systems find application in multinational
organizations.

5. Expert System. Organizations utilize expert systems to seek recommendations, as these systems function
akin to experts with the capability to resolve intricate problems.

The inception of Expert Systems dates back to the 1970s. They consist of an inference engine, which applies
a logical set of rules to the knowledge base. The knowledge base serves as a repository for structured and
unstructured data, encompassing facts and rules.

An exemplar of a knowledge base system is the Expert System, playing a crucial role in numerous
organizations.

6. Online Analytical Processing. Numerous Business Intelligence Systems operate within organizations,
with OLAP serving as the underlying technology. The rationale for employing Online Analytical Processing
Systems lies in their capacity to execute intricate analytical calculations, make predictions, and furnish
comprehensive business reporting.

OLAP, as an integral component of business intelligence, specializes in responding to multi-dimensional

queries in computing. These systems are further classified into categories such as Multidimensional OLAP
(MOLAP), Relational OLAP (ROLAP), Hybrid OLAP (HOLAP), and more.

7. Management Information System (MIS). In the realm of Information Systems, Management Information
Systems (MIS) are specialized in providing essential information for effective organizational management.
MIS supports decision-making, analysis, and overall business operations at the managerial level. It involves
the systematic collection, processing, and dissemination of relevant information, generating reports and
summaries that aid planning, control, and decision-making processes across various organizational aspects,
such as finance and human resources.

Distinguished from Transaction Processing Systems (TPS), MIS delivers routine summaries to management.
It consolidates diverse data, including sales and production, mainly derived from internal sources. These

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summaries serve managers and decision-makers, enhancing operational efficiency and tracking
organizational progress, particularly in marketing and revenue departments.

In the contemporary business landscape, the role of Information Systems, and particularly
Management Information Systems, is transformative. MIS empowers decision-makers with the right
information at the right time, fostering a more strategic and informed approach to management.

Understanding the intricacies of Information Systems allows organizations to harness the power of
data for competitive advantage. As technology continues to advance, the importance of Information Systems,
especially in managerial contexts, is likely to increase. This knowledge is not only beneficial for businesses
but is also a crucial skill set for professionals navigating the digital age.

LEARNING ACTIVITY 2

General Instructions:

A. References: Ensure you include citations from the provided references where appropriate. If you consult
additional sources, include those as well.
B. Structure: Organize your responses with a clear introduction, body, and conclusion for each question.
C. Critical Thinking: Demonstrate critical thinking skills by analyzing and synthesizing information in your
responses.
D. Application: Use real-world examples and practical applications to illustrate key concepts.
E. Clarity: Aim for clarity, coherence, and conciseness in your writing.
F. Word Count: While there is no strict word count, strive for a comprehensive yet concise exploration of
each topic.

Note: References are integral to supporting your answers. Properly cite sources and feel free to consult
additional literature to enhance the depth of your responses.

1. Explore the specialized role of Management Information Systems (MIS) in providing essential information
for organizational management. Discuss how MIS supports decision-making, analysis, and overall
business operations at the managerial level. Distinguish MIS from Transaction Processing Systems
(TPS).

2. Discuss the transformative role of Information Systems, particularly Management Information Systems, in
the contemporary business landscape. How does MIS empower decision-makers, and why is it crucial for
professionals navigating the digital age? How can an understanding of Information Systems provide a
competitive advantage for businesses?

LEARNING CONTENT: THE COMPONENTS OF AN INFORMATION SYSTEM

Understanding the Components of an Information System: Building Blocks of Technological

Integration

In the dynamic landscape of modern business and technology, Information Systems (IS)
serve as the backbone for effective data management, decision-making, and organizational
functioning. Let's delve into a comprehensive discussion about the key components that constitute an
Information System and understand their pivotal roles.

1. Hardware: The Physical Foundation. Hardware forms the tangible, physical components of an
Information System. This includes computers, servers, storage devices, and network devices. These
elements create the infrastructure necessary for processing and storing data. The selection and
configuration of hardware play a crucial role in determining the system's capacity and performance.

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Data

People Software

Information
System

Procedures Hardware

2. Software: Enabling Functionality. Software represents the set of programs and applications that
enable the Information System to perform specific functions. Operating systems, databases,
middleware, and application software contribute to the overall functionality of the system. The
choice of software directly influences the system's capabilities, efficiency, and adaptability to
organizational needs.

3. Data: The Raw Material of Information. Data serves as the raw material processed by
Information Systems. It encompasses facts, figures, and information in various formats. Data can be
structured or unstructured and is collected from both internal and external sources. Effective data
management ensures the availability of accurate and relevant information for decision-making
processes.

4. Procedures: Guiding the Workflow. Procedures define the rules and guidelines governing the
use and operation of an Information System. They encompass protocols for data input, processing,
storage, and retrieval. Standard operating procedures and guidelines ensure consistency, accuracy,
and security in handling information. Well-defined procedures contribute to the overall efficiency of
the system.

5. People: The Human Element. Perhaps the most critical component, people are integral to the
success of an Information System. This includes the users who input, process, and interpret
information, as well as the professionals responsible for system design, development, and
maintenance. User training, communication, and collaboration are key factors in ensuring the
system's effectiveness.

LEARNING ACTIVITY 3

General Instructions:

A. References: Ensure you include citations from the provided references where appropriate. If you consult
additional sources, include those as well.
B. Structure: Organize your responses with a clear introduction, body, and conclusion for each question.

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Study Guide in ELEC 104 MIS with e-Commerce and Internet Marketing Module No. 1

C. Critical Thinking: Demonstrate critical thinking skills by analyzing and synthesizing information in your
responses.
D. Application: Use real-world examples and practical applications to illustrate key concepts.
E. Clarity: Aim for clarity, coherence, and conciseness in your writing.
F. Word Count: While there is no strict word count, strive for a comprehensive yet concise exploration of
each topic.

Note: References are integral to supporting your answers. Properly cite sources and feel free to consult
additional literature to enhance the depth of your responses.

1. Discuss the fundamental concepts of Information Systems (IS) and their critical role in the digital age.
Explain the synergy of hardware, software, data, procedures, and human elements within an Information
System. Why is understanding these components crucial for businesses?

LEARNING CONTENT: SYSTEMS INNOVATION

Turning Technology into Business Transformation: Navigating the Digital Landscape

In today's fast-paced and ever-evolving business landscape, the integration of technology has
become a key driver for organizational success. Turning technology into business transformation is not merely
about adopting the latest tools and gadgets but involves a strategic approach to leverage innovation for
sustainable growth. This discussion delves into the dynamics of technology-driven business transformation
and its implications for companies seeking to thrive in the digital era.

The Evolution of Technology in Business

Technology has played a pivotal role in reshaping the way businesses operate. From the advent of
the internet to the rise of artificial intelligence and the Internet of Things (IoT), companies are presented with
unprecedented opportunities to enhance efficiency, streamline operations, and create new revenue streams.
However, the successful integration of these technologies requires a thoughtful strategy that goes beyond
mere implementation.

Key Considerations in Turning Technology into Business Transformation:

Strategic Alignment. Businesses must align technology initiatives with their overall strategic objectives.
Adopting technology for the sake of novelty may lead to inefficiencies and missed opportunities. A clear
understanding of how technology supports the organization's goals is essential.

Cultural Transformation. The adoption of technology often necessitates a cultural shift within the
organization. Employees need to be receptive to change, and leadership must foster a culture of innovation,
continuous learning, and adaptability.

Data-Driven Decision-Making. Leveraging technology for business transformation involves harnessing the
power of data. Companies need to invest in robust data analytics and business intelligence tools to make
informed decisions based on real-time insights.

Customer-Centric Approach. Technology should enhance the customer experience. Whether through
personalized marketing, seamless transactions, or improved customer support, businesses must prioritize
customer-centric solutions to stay competitive in the market.

Agility and Flexibility. The digital landscape is dynamic, and successful business transformation requires
agility and flexibility. Companies should be prepared to iterate on their technology solutions and adapt to
changing market conditions.

Cybersecurity and Risk Management. With increased reliance on technology comes the need for robust
cybersecurity measures. Businesses must invest in cybersecurity protocols to protect sensitive data and
mitigate potential risks associated with technological advancements.

Turning technology into business transformation is a strategic imperative for organizations looking to
thrive in the digital age. A holistic approach, encompassing strategic alignment, cultural transformation, data-

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driven decision-making, customer-centricity, agility, and cybersecurity, is essential for success. By learning
from the experiences of industry leaders and staying abreast of technological advancements, businesses can
position themselves for sustained growth and competitiveness in an ever-evolving marketplace.

LEARNING ACTIVITY 4

Case Study Title - Strategic Integration of Technology: Learning from Amazon, Netflix, and Tesla

Objective:
The objective of this case study is to analyze and draw insights from the successful business transformations
of companies such as Amazon, Netflix, and Tesla, which have strategically integrated technology to achieve
market dominance, operational excellence, and superior customer experiences. The case study aims to
provide a deep understanding of the key factors and decisions that contributed to their success.

Instructions:

Introduction:
Begin with a brief introduction to the case study, emphasizing the significance of strategic technology
integration in achieving business transformation. Highlight the relevance of studying companies like Amazon,
Netflix, and Tesla as prime examples.

Background of Amazon, Netflix, and Tesla:

Provide a comprehensive background on each company, including their industry, founding principles,
and historical context. Explain the factors that drove these companies to embark on a journey of technology-
driven business transformation.

Technology Initiatives:
Analyze the specific technology initiatives undertaken by Amazon, Netflix, and Tesla. Explore areas
such as e-commerce technologies, streaming platforms, electric vehicles, automation, and any other
technological advancements that played a crucial role in their transformation.

Strategic Decision-Making:
Investigate the strategic decisions made by each company in integrating technology into their
business models. Discuss how these decisions were aligned with the overall corporate strategy and how they
contributed to market dominance, operational efficiency, and enhanced customer experiences.

Operational Excellence:
Examine how technology integration contributed to operational excellence in terms of supply chain
management, logistics, production processes, and overall efficiency. Provide examples of key operational
improvements resulting from technological advancements.

Market Dominance:
Explore how the strategic use of technology positioned each company as a market leader in its
respective industry. Discuss the impact of technology on competitive advantage, market share, and the ability
to disrupt traditional business models.

Customer Experiences:
Delve into the ways technology has enhanced customer experiences for Amazon, Netflix, and Tesla.
Discuss innovations in user interfaces, personalized recommendations, customer service, and other aspects
that have contributed to unparalleled customer satisfaction.

Challenges Faced and Overcome:

Address the challenges each company faced during their technology-driven transformation journey.
Discuss how they overcame obstacles, adapted to changing circumstances, and iterated on their technology
solutions.

Key Takeaways for Other Businesses:

Summarize the key insights and lessons that other businesses can learn from the experiences of
Amazon, Netflix, and Tesla. Provide actionable recommendations for organizations looking to embark on their

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own technology-driven business transformations.

Conclusion:
Conclude the case study by summarizing the transformative impact of technology on these companies
and highlighting the enduring lessons that can be applied across industries.

SUMMARY

Summary of Key Learnings:

Concept of Management Information Systems (MIS):

MIS encompasses technology, people, and processes, with a focus on innovation and addressing
challenges through strategic integration.
It involves the convergence of the right technology, processes, and people for business transformation.
MIS has evolved significantly since the information age, playing a crucial role in practical applications
for businesses.

Data, Information, and Knowledge:

Data consists of raw facts and lacks context, while information is the meaningful and usable form of
processed data.
Knowledge involves interpretation and synthesis, contributing to informed decision-making.
The journey from data to knowledge involves processing, interpretation, and contextualization.

Introduction to Information Systems:

Information Systems (IS) involve hardware, software, data, procedures, and people working together.
Major types of information systems include Transaction Processing System, Decision Support System,
Executive Information System, ERP, Expert System, OLAP, and Management Information System
(MIS).

Components of an Information System:

Hardware, software, data, procedures, and people are the key components of an Information System.
Hardware is the physical foundation, software enables functionality, data is the raw material,
procedures guide workflow, and people are crucial for success.

Turning Technology into Business Transformation:

Successful integration of technology involves strategic alignment, cultural transformation, data-driven
decision-making, customer-centricity, agility, and cybersecurity. Companies like Amazon, Netflix, and
Tesla exemplify how technology can lead to market dominance and operational excellence.

In summary, the modules cover the foundational concepts of MIS, the distinctions among data, information,
and knowledge, the components and types of information systems, and the strategic integration of technology
for business transformation.

REFERENCES

Bellinger, G., Castro, D., & Mills, A. (2004). Data, Information, Knowledge, and Wisdom.
http://www.systems-thinking.org/dikw/dikw.htm
Sharda, R., Delen, D., & Turban, E. (2014). Business Intelligence and Analytics: Systems for Decision
Support.
Nonaka, I., & Takeuchi, H. (1995). The Knowledge-Creating Company: How Japanese Companies Create the
Dynamics of Innovation.
Chadha, A. (2021). Knowledge Management. https://www.phpkb.com/kb/article/defining-knowledge-
information-data-239.html
Laudon, K. C., & Laudon, J. P. (2019). Management Information Systems: Managing the Digital Firm.
Pearson.
O'Brien, J. A., & Marakas, G. M. (2018). Management Information Systems. McGraw-Hill Education.

ExamPlanning (2024). Types of Information System. https://examplanning.com/types-of-information-

system/#google_vignette

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