Management Information System

SHAHIZAN HASSAN, Ph.D

ASSOCIATE PROFESSOR

COLLEGE OF BUSINESS
UNIVERSITI UTARA MALAYSIA

MIS Lecture 1
TOC
1. IS Evolution 2. Impact of Organisational Environment on IS use 3. Impact of Technology Environment on IS use 4. IS concept, definition, classification and components

MIS Foundation of IS
Learning Outcomes At the end of lecture, you should be able to... 1. 2. Briefly describe the evolution of IS Discuss the impact of Organisational and technology environment on IS use 3. 4. 5. Define IS constructively Classify IS in various ways Identify IS components
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The evolution of IS
1965 1975
Management focused on automating routine functions e.g. payroll, stock control & invoices - TPS

1975 1985 More widespread automation of routine work involving other functional areas (marketing, Production, finance) Many new applications were created including for lower managerial level - MIS

The evolution of IScont.

1980s Major changes of IT - brought IS to the foreground of corporate policy More widespread use of IS involving all functional areas

Introduction of DSS & Expert System

The rise of the Internet further stimulated the use of IS

1990s

Affects business, organizational process & comm process

Evolution of GDSS, AI, ERP, .COM etc etc etc
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The evolution of IScont.

2000s
The rise of digital economy an economy that is based on digital technologies, including digital communication networks, computers, and software. Further evolution in IS, AI, comm areas IDSS, data mining, KMS, IDBMS, wireless & webbased applications etc etc etc

The Organizational Environment & IS

Affects the way IT/IS is being used 2 aspects external & internal environments

External forces cause firms to re-examine how they compete:

Internet Economy B2C, B2B, C2C etc.

Globalization global business & mergers

Decapitalization moving from tangible (capital, equipment, buildings) to intangible (ideas, intellectual capital, knowledge) Faster Business Cycles speedy production, delivery, 7 & service

The Organizational Environment & ISCont.

Internal structural forces affect how companies operate: From Supply-push to Demand-pull - customers create personalized products. From product to Customer centric thinking from thinking inside-out to outside-in. Emergence of Self-service concept many services can be offered online Team-based working need IT to support group work Anytime/anyplace information work need email, voice & video mail, fax etc. Outsourcing and strategic alliances The fall of hierarchical structure in management
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The Technology Environment & IS

IT greatly affects organizational performance Companies should be aware of changes in 4 major areas: Hardware Software Data communication

The Technology Environment Cont.

Hardware Trends Powerful PC & laptops high processing power, memory, storage. The rise client-server computing The rise of mobile & handheld computers

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The Technology Environment Cont.

Software trends Outsource/ purchase software rather than develop in-house The rise of ERP systems Integrates various functions Involves system integration The rise of network/ web-based systems/ portals

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The Technology Environment Cont.

Data trends From centralized to distributed database systems From data resource to information resource From database to data warehouse/ knowledge

repository using data mining

The need for internal & external resource & corporate database
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The Technology Environment Cont.

Communication trends From stand alone PCs to LAN to WAN linking offices, building, & factories Then, came the Internet allowing world wide access to information (either dial-up/ network) Then, came wireless technology wireless long distance, wireless LANs (WiFi), Wireless Personal Area Networks (PAN) Now 3.5G Wireless (4G is coming)
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The Technology Environment Cont.

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Information Systems Concept

IS & IT ? Primary purpose of IS?

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Information Systems Concept

An information system (IS) is a sociotechnical systems designed to collect, process, store, and disseminate information for a specific purpose Application. Utilize hardware, software, data, network, procedures, and people
storage disseminate

Application Data
People

Hardware Software

input

process

output

control

feedback
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IS Concept
IS are sociotechnical - systems dependent on the role played by social and technical aspects. Social aspect - People, & Structure

Technical aspect - Technology (IT) & Process

So, IS consists of 4 main inter-related components of people, structure, technology, and process

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IS Concept
4 IS Components (Picolli, 2008)

Social System
Structure

Technical System
Technology

People

Process

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IS Classification
Can be classified in many different ways: By organisational structure By functional area/ departments By support function

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IS Classification
By structure (departments, business units and corporations). Departmental IS- collection of application programs in a dept Enterprise-Wide IS collection of all IS within an org Inter-Organizational IS collection of IS between org and partners

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IS Classification
By functional department.

Production/ Operations Accounting Finance Marketing Human resources

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IS Classification
By functional department.

Production/ Operations
Inventory management Production and Quality Control Production and operation planning (Material Resource Planning MRP) SCM

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IS Classification
By functional department.

Accounting and Finance

Financial Planning and budgeting Managing financial transactions Budgetary control Auditing Financial ratio analysis

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IS Classification
By functional department.

Marketing
CRM Customer needs analysis Market analysis Sales forecasting

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IS Classification
By functional department.

HR
Recruitment Performance evaluation Training Employee records Salary and benefit administration Staff welfare
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IS Classification
By support function
Top executives
EIS

Managerial posts

MIS, DSS, ISS and KMS

All employees

TPS, OAS

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Discussion
IS vs IT Why integrated system is needed? How to cope with fast changing IT products?

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