Management Information Systems

or
Information Systems for Managers
N Siva Prasad
 Overview of Topics
• Introduction to Information Systems
• Business process and Information Systems
• Global e-Business and Collaboration
• IT infrastructure and emerging technologies.
• Spread sheet concepts, functions & DSS ( Excel)
• DBMS using MS-Access
• Business Intelligence
• Knowledge Management
• Building IS projects
• Enterprise Applications
• E-Commerce
• Information Security
Recommended Text Book:
TEXT BOOK AUTHOR / PUBLICATION

Information Systems Hossein Bidgoli and others

for Managers

Suggested books:

BOOKS AUTHOR / PUBLICATION

Management Information Kenneth C Laudon and Jane P Laudon, 14th edition,

Systems - Managing the Digital Pearson Education, 2016
firm

Management Information Robert Schultheis and Mary Sumner, Tata McGraw-

Systems - The Manager's Hill, 4th edition 1999 (21st reprint 2011)
view
Management Information Waman S Jawadekar, 4th edition, Tata McGraw-Hill,
Systems – Text and cases – A 2009
Digital firm perspective
Introduction to Information
Systems
 Introduction
( Participants)
• Name and to be called as ( first name or last
name etc.)
• Educational Qualification
• Work Experience ( total years and recent
organisation)
• Role and position ( HR executive, Sales
manager, technical lead etc.)
• Any certifications?
 Management
• Management is the process of directing tasks
and organising resources to achieve
organisation goals
• Main functions are
– Planning
– Organising
– Leading and
– controlling
 Management roles
– Planning
• Establishing organisational goals
• Developing strategies to achieve goals
– Organising
• Developing the structure of the organisation
• Acquiring resources
– Leading
• Motivating and managing employees
• Forming task groups
– Controlling
• Evaluating performance
• Controlling the resources
 Additional roles
• Interpersonal
– Figure head
– Leader
– Liaison
• Informational
– Monitor
– Disseminator
– Spokesperson
• Decisional
– Entrepreneur
– Disturbance handler
– Resource allocator
– Negotiator
 Levels of Management
• Operational
– Day to day transactions
• Tactical
– Budgets
– Tactical plans(short span)
• Strategic Planning
– Long term plans
– Future plans
 Framework for Information Systems
• Operational Systems
– Repetitiveness
– Predictability
– Emphasis on the past
– Detailed nature
– Internally originated information
– Structured form
– Great accuracy
 Framework for Information Systems
• Tactical Systems
– For middle level managers
– In the form of summary reports
– Exception reports
– Ad hoc reports
– Periodic in nature
– May produce unexpected findings
– It is comparative rather than descriptive
– Information from internal and external sources
 Framework for Information Systems
• Strategic Planning Systems
– For Top Managers
– Help in long term/range planning
– Could be regular or ad hoc
– Unexpected information
– In summary form(dash boards,charts etc.)
– Un structured format of data as input
– Data is subjective in nature and may need
validation
 The Role of Information Systems in Business Today

• Firms invest heavily in information

systems to achieve six strategic business
objectives:
1. Operational excellence
2. New products, services, and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Survival
 The Role of Information Systems in Business Today

• Operational excellence:
– Improvement of efficiency to attain higher
profitability

– Information systems and technology are

important tools in achieving greater efficiency
and productivity
 The Role of Information Systems in Business Today

• New products, services, and business models:

– Business model: describes how company
produces, delivers, and sells product or service to
create wealth
– Information systems and technology is a major
enabling tool for new products, services,
business models
 The Role of Information Systems in Business Today

• Customer and supplier intimacy:

– Serving customers well leads to customers returning,
which raises revenues and profits.
• Example: High-end hotels that use computers to track
customer preferences and used to monitor and
customize environment
– Intimacy with suppliers allows them to provide vital
inputs, which lowers costs.
• Example: Information system which links sales records
to contract manufacturer
 The Role of Information Systems in Business Today

• Improved decision making

– Without accurate information:
• Managers must use forecasts, best guesses, luck
• Results in:
– Overproduction, underproduction
– Misallocation of resources
– Poor response times
• Poor outcomes raise costs, lose customers
– Example: Digital dashboards to provide managers
with real-time data on customer complaints,
network performance, line outages, and so on
 The Role of Information Systems in Business Today

• Competitive advantage
– Delivering better performance
– Charging less for superior products
– Responding to customers and suppliers in
real time
 The Role of Information Systems in Business Today

• Survival
– Information technologies as necessity of business
– Industry-level changes
– Governmental regulations requiring record-
keeping
 Systems

Information Systems
 Systems Concept
• It is integrated set of components or entities that
interact to achieve a particular function or goal.
• Characteristics
– Boundaries
– Output
– Input
– Means of converting out put from input
– Interfaces
– Sub-systems
 Systems and their environment
• Open and closed systems
• System feedback
• System entropy
• System stress and change
• System concepts in business

An information system as a System

 Information System
• A combination of hardware, software,
infrastructure and trained personnel
organized to facilitate planning, control,
coordination, and decision making in an
organization.
 What Is an Information System?

• Information system:
– Set of interrelated components
– Collect, process, store, and distribute information
– Support decision making, coordination, and
control
• Information vs. data
– Data are streams of raw facts.
– Information is data shaped into meaningful form.
 What Is an Information System?

• Organizational dimension of information

systems
– Hierarchy of authority, responsibility
• Senior management
• Middle management
• Operational management
• Knowledge workers
• Data workers
• Production or service workers
 What Is an Information System?

• Organizational dimension of information

systems (cont.)
– Separation of business functions
• Sales and marketing
• Human resources
• Finance and accounting
• Manufacturing and production
– Unique business processes
– Unique business culture
– Organizational politics
The Business Information Value Chain
 Systematic approach to problem
solving
• Define the problem
• Gather data describing the problem
• Identify alternative solutions
• Evaluate the alternatives
• Select and implement an alternative
• Follow up to determine effectiveness
 The Role of Information Systems in
Business Today

• How information systems are transforming

business
– Emerging mobile digital platform
– Growing business use of “big data”
– Growth in cloud computing
• Globalization opportunities
– Internet has drastically reduced costs of operating on
global scale
– Increases in foreign trade, outsourcing
– Presents both challenges and opportunities
 Impact of IT
• Impact on individual
• Impact on functional unit
• Impact on organisation

In terms of
• Efficiency
• Effectiveness
• transformation
 Management challenges in Business
process re-design
• Guidelines to manage transition
– Create task force with people from cross functional
groups
– Have re-design teams work closely with managers and
staff
– Explain through the information systems group wrt
power offered by technology
– Build a team of industrial engineers with strong
interpersonal skills, understanding of multiple
functions, process measurement etc.
– Build IT technology platforms that support cross
functional applications.
Functions of an Information System