The question of why we need to study

information systems and information technology

?
Information systems have become as integrated into our daily business
activities as accounting, finance, operations management, marketing,
human resource management, or any other major business function.
Information systems and technologies are vital components of successful
businesses and organizations some would say they are business
essentials.
Information technology can help all kinds of businesses to improve the
efficiency and effectiveness of their business processes, managerial
decision making, and workgroup collaboration, which strengthens their
competitive positions in rapidly changing marketplaces.

IT Vs IS

Payroll
System

INFORMATION
TECHNOLOGY

Inventory
System

Hardware
Software
Databases
Networks
Other related
components

are used to build

INFORMATION
SYSTEMS
Marketing
System

Customer
Service
System

What Do MIS Professionals Do in an Organization?

Analyze, design, implement and administer Information Technology

(IT)

Deliver IT to businesses

Apply IT to business goals

Understand IT capabilities to provide value-added business solutions

Communicate with customers and managers to understand their IT

needs

Over 90% of MIS professionals work outside of IT Industries

(Information Technology Association of America study)

MIS Professionals

Are business oriented, problem-solvers, analyzers, innovators, and

communicators.

Work across silos and have a wholesome, horizontal understanding of the

organization.

Are technically competent

Are excellent Communicators

Work in many industries: Health-care, banking, broadcasting, education, high

tech, music, media, gaming, government, retail, surveillance - just about
every industry today depends on MIS

Bridge the IT staff and business clients, relying on strong communication,

business understanding, and technical skills

Sometimes perform technical functions like networking, security, or

development

Sometimes deal with less technical functions such as IT audit, business

analysis, or consulting

Top 10 Reasons toMajor in MIS

Plentiful and well-paid jobs - High demand for IT workers and High Salaries

Rewarding find solutions, help people and businesses with their IT needs

Versatile and Mobile work anywhere, in any industry

Creative and innovative DO THINGS! CREATE STUFF!

Solve real problems in businessbuild bridges between technology,

businesses, and people

Growth and leadership move quickly up the ladder to leadership positions

Fun dynamic, fast, never boring

Communicate with many people, work in team, build connections

Broaden perspective MIS professionals are uniquely capable to think

sideways, horizontally, across business functions and silos.

Enjoy working with greatest and latest technologies

MIS 10 Edition James

OBrien

Management Challenges. The challenges of effectively

and ethically managing information technology at the enduser, enterprise, and global levels of a business. Thus,
Chapter 13 focuses on security challenges and security
management issues in the use of information technology,
while Chapter 14 covers some of the key methods
business managers can use to manage the information
systems function in a company with global business
operations.

MIS 10 Edition James

OBrien

Three Fundamentals by
OBrien

3rd Support of Business Processes and

Operations.

As a consumer, you regularly encounter information

systems that support the business processes and
operations at the many retail stores where you shop. For
example, most retail stores now use computer-based
information systems to help their employees record
customer purchases, keep track of inventory, pay
employees, buy new merchandise, and evaluate
sales trends. Store operations would grind to a halt
without the support of such information systems.

2nd Support of Business Decision Making.

Information systems also help store managers and

other business professionals make better decisions.
For example, decisions about what lines of
merchandise need to be added or discontinued
and what kind of investments they require are
typically made after an analysis provided by
computer-based information systems. This function
not only supports the decision making of store
managers, buyers, and others, but also helps
them look for ways to gain an advantage over
other retailers in the competition for customers.

Ramzan->

Bakra Eid->

1st Support of Strategies for

Competitive Advantage.

Gaining a strategic advantage over competitors

requires the innovative application of information
technologies. For example, store management might
make a decision to install touch-screen kiosks in all stores,
with links to the e-commerce Web site for online
shopping. This offering might attract new customers and
build customer loyalty because of the ease of shopping and
buying merchandise provided by such information systems.
Thus, strategic information systems can help provide
products and services that give a business a comparative
advantage over its competitors

Home delivery free

MOT

Classification of IS

Transaction processing systems. Process data resulting from business

transactions, update operational databases, and produce business documents.
Examples: sales and inventory processing and accounting systems.
Process control systems. Monitor and control industrial processes. Examples:
petroleum refining, power generation, and steel production systems.
Enterprise collaboration systems. Support team, workgroup, and enterprise
communications and collaborations. Examples: e-mail, chat, and videoconferencing
groupware systems.

Management information systems. Provide information in the form of prespecified

reports and displays to support business decision making. Examples: sales analysis,
production performance, and cost trend reporting systems.
Decision support systems. Provide interactive ad hoc support for the decisionmaking processe Examples: product pricing, profitability forecasting, and risk analysis
systems. s of managers and other business professionals.
Executive information systems. Provide critical information from MIS, DSS, and
other sources tailored to the information needs of executives. Examples: systems for
easy access to analyses of business performance, actions of competitors, and
economic developments to support strategic planning.

Expert systems. Knowledge-based systems that provide expert advice and act as
expert consultants to users. Examples: credit application advisor, process monitor,
and diagnostic maintenance systems.
Knowledge management systems. Knowledge-based systems that support the
creation, organization, and dissemination of business knowledge within the
enterprise. Examples: intranet access to best business practices, sales proposal
strategies, and customer problem resolution systems.
Strategic information systems. Support operations or management processes
that provide a firm with strategic products, services, and capabilities for competitive
advantage. Examples: online stock trading, shipment tracking, and e-commerce
Web systems.
Functional business systems. Support a variety of operational and managerial
applications of the basic business functions of a company. Examples: information
systems that support applications in accounting, finance, marketing, operations
management, and human resource management.

Management Information
Systems
Terminology Confusion

MIS = the study of information technology in business

settings/ Alignment in order to gain competitive and
strategic advantage
But, MIS is also term to refer to class of systems used to support
operational and tactical decision making

(MIS)?

MIS is a discipline and a profession that brings information and

communication technologies to businesses and society.

By applying information and communications technologies and systems, MIS

solves real business problems and gives competitive advantage to firms.

MIS focuses on the concepts and tools necessary for analyzing, designing,
planning, developing, and managing organizational information
resources.

Major challenges and opportunities that business

managers face in managing information systems and
technologies to meet business goals. Fig 1.12 Obrien

By now you should be able to see that the success of an information system
should not be measured only by its efficiency in terms of minimizing
costs, time, and the use of information resources. Success should also
be measured by the effectiveness of the information technology in
supporting an organizations business strategies, enabling its business
processes, enhancing its organizational structures and culture, and
increasing the customer and business value of the enterprise. It is
important to realize, however, that information technology and
information systems can be mismanaged and misapplied in such a
way that IS performance problems create both technological and
business failures. Lets look at an example of what happens after these
failures occur, as well as what can be done to avoid them.

Management Information Systems

(MIS)

Management information system (MIS)

An MIS provides managers with information and
support for effective decision making, and provides
feedback on daily operations
Output, or reports, are usually generated through
accumulation of transaction processing data
Each MIS is an integrated collection of subsystems,
which are typically organized along functional lines
within an organization

Employees
Corporate
databases
of
internal
data

Business
transactions

Transaction
processing
systems

Operational
databases

Databases
of
valid
transactions

Databases
of
external
data

Management
information
systems

Corporate
intranet

Application
databases

Drill-down reports
Exception reports
Demand reports
Key-indicator reports

Input and
error list

Scheduled
reports

Decision
support
systems
Executive
support
systems

Expert
systems

Outputs of a Management Information System

Scheduled reports
Produced periodically, or on a schedule (daily, weekly, monthly)
Key-indicator report
Summarizes the previous days critical activities
Typically available at the beginning of each day
Demand report
Gives certain information at a managers request
Exception report
Automatically produced when a situation is unusual or requires
management action

Management Information Systems for Competitive Advantage

Provides support to managers as they work to achieve

corporate goals

Enables managers to compare results to established

company goals and identify problem areas and opportunities
for improvement

Financial MIS/ in terms off

multinationals
Provides

financial information to
all financial managers within an
organization.

Databases of
internal data

Databases of
external data

Financial
DSS

Business
transactions
Transaction
processing
systems

Databases
of valid
transactions
for each
TPS

Business
transactions

Internet
Internetoror
Extranet
Extranet

Business
transactions

Financial
MIS

Financial statements

Operational
databases

Uses and management

of funds
Financial statistics
for control

Customers,
Suppliers

Financial
applications
databases

Financial
ES

Databases of
internal data

Databases of
external data

Manufacturing
DSS

Business
transactions
Transaction
processing
systems

Databases
of valid
transactions
for each
TPS

Business
transactions

Manufacturing
MIS

Quality control reports

Process control reports

Internet
Internetoror
Extranet
Extranet

Operational
databases

JIT reports

Manufacturing
ES

MRP reports
Production schedule
CAD output

Business
transactions

Manufacturing
applications
databases

Customers,
Suppliers

Manufacturing
Design and Engineering
Master Production Scheduling
Inventory Control
Materials Planning
Manufacturing and Process
Control
Quality Control

Databases of
internal data

Business
transactions

Transaction
processing
systems

Databases of
external data

Databases
of valid
transactions
for each
TPS

Marketing
MIS

Manufacturing
DSS

Marketing
applications
databases

Sales by customer
Sales by salesperson

Operational
databases

Sales by product

Manufacturing
ES

Pricing report
Total service calls
Customer satisfaction

Marketing MIS -> Supports managerial activities in product development,

distribution, pricing decisions, and promotional effectiveness

Databases of
internal data

Business
transactions

Transaction
processing
systems

Databases of
external data

Databases
of valid
transactions
for each
TPS

Human
Resource
MIS

Manufacturing
DSS

Human
resource
applications
databases

Benefit reports
Salary surveys

Operational
databases

Scheduling reports

Manufacturing
ES

Training test scores

Job applicant profiles
Needs and planning
reports

HR-> MIS : Concerned with all of the activities related to employees

and potential employees of the organization

Foundation Concepts: The Components of Information Systems

(Obrien)

System concepts underlie all business processes, as well as our understanding

of information systems and technologies. Thats why we need to discuss how
generic system concepts apply to business firms and the components and
activities of information systems. Understanding system concepts will help you
understand many other concepts in the technology, applications, development,
and management of information systems that we cover in this text. For
example, system concepts help us understand:

Technology. Computer networks are systems of information

processing components that use a variety of hardware, software, data
management, and telecommunications network technologies.
Applications. E-business and e-commerce applications involve
interconnected business information systems.
Development. Developing ways to use information technology in
business includes designing the basic components of information
systems.
Management. Managing information technology emphasizes the
quality, strategic business value, and security of an organizations
information systems.

What is System ?
A system is defined as a set of interrelated components, with a
clearly defined boundary, working together to achieve a common
set of objectives by accepting inputs and producing outputs in an
organized transformation process.
Input involves capturing and assembling elements that enter the
system to be processed. For example, raw materials, energy, data,
and human effort must be secured and organized for processing.
Processing involves transformation processes that convert input
into output. Examples are manufacturing processes, the human
breathing process, or mathematical calculations.
Output involves transferring elements that have been produced
by a transformation process to their ultimate destination. For
example, finished products, human services, and management
information must be transmitted to their human users.

Data, Information, and

Systems
Data

vs. Information

Data
A given, or fact; a number, a statement, or a picture
Represents something in the real world
The raw materials in the production of information

Information
Data that have meaning within a context
Data in relationships
Data after manipulation

MIS 715 Eaton Fall 2001

38

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.

MIS 715 Eaton Fall 2001

39

Data, Information,
and Systems
Information

in Context

Figure 1.2 Characteristics of useful informationMIS 715 Eaton Fall 2001

40

Data, Information,and Systems

Generating

Information

Computer-based ISs take data as raw

material, process it, and produce
information as output.

MIS 715 Eaton Fall 2001

41

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
MIS 715 Eaton Fall 2001

42

Data, Information,
and Systems

Figure 1.3 Several subsystems make up this corporate

accounting system.
MIS 715 Eaton Fall 2001

43

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.

MIS 715 Eaton Fall 2001

44

Data, Information,
and Systems

Figure 1.5 Qualities of humans and computers that contribute to

synergy
MIS 715 Eaton Fall 2001

45

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
MIS 715 Eaton Fall 2001

46

Data, Information,
and Systems

Figure 1.6 Components of an information system

MIS 715 Eaton Fall 2001

47

Data, Information,
and Systems
The

Four Stages of Data Processing

Input: Data is collected and entered into

computer.
Data processing: Data is manipulated into
information using mathematical, statistical,
and other tools.
Output: Information is displayed or
presented.
Storage: Data and information are
maintained for later use.
MIS 715 Eaton Fall 2001

48

IS Functions
The successful management of information systems and technologies
presents major challenges to business managers and professionals. Thus,
the information systems function represents:
A major functional area of business equally as important to business
success as the functions of accounting, finance, operations
management, marketing, and human resource management.
A n important contributor to operational efficiency, employee productivity and
morale, and customer service and satisfaction. The IS Function
A recognized source of value to the firm.
A major source of information and support needed to promote effective
decision making by managers and business professionals.
A vital part in developing competitive products and services that give an
organization a strategic advantage in the global marketplace.
A key component of the resources, infrastructure, and capabilities of todays
networked business enterprises.
A strategic resource.

As a business professional, you should be able to recognize

the fundamental components of information systems you
encounter in the real world. This demand means that you
should be able to identify:
The people, hardware, software, data, and network
resources they use.
The types of information products they produce.
The way they perform input, processing, output, storage,
and control activities.
This kind of understanding will help you be a better user,
developer, and manager of information systems. As we have
pointed out in this chapter, this is important to your future
success as a manager, entrepreneur, business professional, or
modern business technologist.

poters