Management Information Systems

Unit1. Introduction to Information Systems

Business Model or Business Information System

16-12-2009

A Sanjeev raj

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 Unit 1: Introduction to IS
• Information System.
• Establishing the Framework.
• Business Model.
• Architecture.
• Evolution.

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 Today we are going to discuss about..

• Business Information System.

• Data, Information, etc
• Characteristics of useful Information.
• Why study IS.

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 Data, Information,
and Systems
• Data vs. Information
– Data
• A “given,” or fact: a number, a statement, or a
picture
• The raw materials in the production of information
– Information
• Data that have meaning within a context
• Raw data or data that have been manipulated

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 Information Systems

• Why Do People Need Information?

– Individuals - Entertainment and
enlightenment
– Businesses - Decision making and problem
solving
• Gathering
• Storing
• Manipulating

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 Data, Information,
and Systems
• Data Manipulation
– Example: customer survey
• Reading through data collected from a customer
survey with questions in various categories
would be time-consuming and not very helpful.
• When manipulated, the surveys may provide
useful information.

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 Data, Information,
and Systems
• Generating Information
– Computer-based ISs take data as raw material, process it,
and produce information as output.

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 Data, Information, &
Systems
• Characteristics of useful information

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 Data, Information,
and Systems
• What Is a System?
– System: A set of components that work together to
achieve a common goal
– Subsystem: One part of a system where the
products of more than one system are combined to
reach an ultimate goal
– Closed system: Stand-alone system that has no
contact with other systems
– Open system: System that interfaces with other
systems
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Data, Information,
and Systems

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 Data, Information, and
Systems

Farmington High School is one subsystem within the Farmington school

system.
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 Data, Information,
and Systems
• Information and Managers
– Systems thinking
• Creates a framework for problem solving and
decision making.
• Keeps managers focused on overall goals
and operations of business.

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 Data, Information,
and Systems
• The Benefits of Human-Computer
Synergy
– Synergy
• When combined resources produce output that
exceeds the sum of the outputs of the same
resources employed separately
– Allows human thought to be translated into
efficient processing of large amounts of
data.

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 Data, Information,
and Systems

Figure 1.5 Qualities of humans and computers that contribute to synergy

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 Data, Information,
and Systems
• In an organization, an information systems
consists of:
– Data
– Hardware
– Software
– People
– Procedures

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 Data, Information,
and Systems
• The Four Stages of Data Processing
– Input: Data are collected and entered into
computer.
– Data processing: Data are manipulated into
information using mathematical, statistical, and
other tools.
– Output: Information is displayed or presented.
– Storage: Data and information are maintained for
later use.

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 Data, Information,
and Systems
• Computer Equipment for Information
System
– Input devices introduce data into the IS.
– The computer processes data through the IS.
– Output devices display information.
– Storage devices store data and information.

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 Data, Information,
and Systems

Figure 1.7 Input-process-output-storage devices

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 ISs From Recording Transactions
to Providing Expertise

• Transaction Processing Systems (TPS):

– Record data and perform basic processing
• Cash registers and ATMs
• Management Information Systems (MIS):
– Use recorded transactions and other data to
produce information for problem solving and
decision making.

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ISs From Recording Transactions
to Providing Expertise
• Types of MIS’s:
– Decision Support Systems (DSS)
• Contain models, or formulas, that
manipulate data into information
• Often answer “what if?” questions
• Group Decision Support Systems
(GDSS) help groups generate ideas,
establish priorities, and reach decisions

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 ISs From Recording Transactions
to Providing Expertise

– Executive Information Systems (EIS)

• Can gather information from vast amounts of
data for high-level executives
• Highly useful in control and planning
– Expert Systems (ES)
• Programmed with human expertise
• Can help solve problems of unstructured nature

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ISs From Recording Transactions
to Providing Expertise

– Geographic Information Systems (GISS)

• Represents local conditions or features
• Allows planning, decision-making, and monitoring
of local conditions or activities
– On-demand Output
• Managers can obtain reports tailored to their
needs at any time

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 Information Systems
in Business
• ISs in Functional Business Areas
– Accounting
• Record business transactions, produce periodic
financial statements, and create reports required
by law
– Finance
• Organize budgets, manage the flow of cash,
analyze investments, and make decisions that
could reduce interest payments and increase
revenues

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 Information Systems
in Business

– Marketing
• Analyze demand for various products in different
regions and population groups
– Human Resources
• Help with record keeping and employee evaluation

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 Information Systems
in Business
• ISs in Different Business Sectors
– Manufacturing
• Allocate resources such as personnel, raw
material, and time
• Control inventory, process customer orders,
prepare production schedules, perform quality
assurance, and prepare shipping documents

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 Information Systems
in Business
– Government
• Tax authorities, national insurance and welfare
agencies, defense departments, economic
organizations, immigration authorities
– Service
• ISs are often the backbone of service
organizations

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 Information Systems
in Business
– Retail
• Some retail stores (e.g., Wal-Mart, Kmart) are
now linked to communication networks by
satellite.
• Management can determine which items move
quickly and which do not.
– New Businesses
• ISs have made new products and services
possible, such as credit reports and shipment
tracking.

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 Shared Data Resources

• Most effective way to operate: different

systems share same data from same pool
• Company’s database: one of the most
powerful resources
• Categorized and structured data can be
manipulated to produce useful information

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 Shared Data Resources

Figure 1.8 Computer-based databases are an important resource for any

organization
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 Shared Data Resources

Figure 1.9 Generalized concept of organization information systems

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 E-Commerce

• E-Commerce
– Business-to-business and business-to-
consumer transactions take place in
electronic form via computer networks.
– Database management online makes
information cheaper to distribute.
– E-commerce is now synonymous with
“doing business on the Internet.”

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 Why Study IS?
• Knowledge Workers
– Employers seek computer-literate professionals who
know how to use information technology.
• Degrees in IS
– Computer Science and Management Information
Systems
• Information Systems Careers
– Systems analyst, specialist in enterprise resource
planning (ERP), database administrator,
telecommunications specialist, consulting, etc.

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Ethical and Societal Issues
The Not-So-Bright Side
• Consumer Privacy
– Organizations collect (and sometimes
sell) huge amounts of data on
individuals.
• Employee Privacy
– IT supports remote monitoring of
employees, violating privacy and
creating stress.

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 Overview
– Data
• A “given,” or fact: a number, a statement, or a
picture
– Information
• Data that have meaning within a context
- Four Stages of Data Processing:
Input, Process, Storage, Output.

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Thank You

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