Information Systems in Business

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Information Systems in Business

• MBA 820
• Information Technology
• for Decision Making

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Information Systems Defined
A set of interrelated components that collect
(or retrieve), process, store, and distribute
information to support decision making and
control in an organization.
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ORGANIZATION
INFORMATION SYSTEM
INPUT
PROCESSING
OUTPUT
FEEDBACK/CONTROL Decision Making, Reporting
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Elements of Information Sys

• Computer Hardware
• Computer Software
• Data/Databases
• Telecommunications/Networking
• People
• Users
• Computer personnel
• Procedures

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ORGANIZATIONS
TECHNOLOGY
INFORMATION SYSTEMS
Culture Mgt Styles Type
E-Commerce Internet
EXTERNAL ENVIROMENT
Political, Social, Economic, Legal
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Information Needs by Org Level
Information Horizon
Senior
5 Years
1 Year
Middle Mgt
Operational Mgt
Daily
Non-Management
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Types of Information Systems

• Transactional Processing (TPS)
• Management Information (MIS)
• Decision Support (DSS)
• Executive Information (EIS)

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Systems Support
EIS
Senior
Middle Mgt
MIS, DSS
Operational Mgt
TPS
Non-Management
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Transaction Processing (TPS)

• Day-to-day systems
• Transactional in nature
• Routine work
• Boundary spanning between organizations and their
  environments
• Major producers of information for other types of
  systems

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Mgt Info Systems (MIS)

• Efficiency driven do things right
• Harness transactions from TPS (internal)
• Generally reporting/control oriented
• Support structured decisions
• Relatively inflexible
• Little analytical ability

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Decision Support Systems (DSS)

• Effectiveness Do the right things
• What if Questions
• Non-routine Decisions
• Flexible, decision-oriented
• Combines internal with external data
• Use sophisticated analysis/modeling

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Exec Information Systems (EIS)

• Strategic level computer systems
• What business should we be in?
• What are competitors doing?
• Must be highly adaptable to leadership styles

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System Integration
EIS
MIS
DSS
TPS
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Organizations Info Systems

• Two-way Relationship
• Aligning Information Systems with the Org
• Environment
• Culture
• Structure
• Changes in technology require changes in data
  control and access rights

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Features of Organizations

• Common Features
• Operating Procedures
• Politics
• Culture

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Organizational Differences

• Organizational Type
• Environments
• Rigidity (inability to adapt)
• Goals and types of power
• Nature of leadership
• Tasks performed and uses of technology

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Changing Roles of Info Systems

• Economic Theories
• EDI, E-Commerce, Distance Learning
• Behavioral Theories
• Decision making/control
• Flattened (task force) organizations
• Political competition between subgroups
• Organizational resistance

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Effects on the Organization

• Increase productivity
• Reduce cost
• Gain competitive advantage
• Improve customer service
• Improve decision making
• Produce information

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Evolution of Information Technology

• Mainframe based
• PC based
• Networked environment
• Web-Based Systems
• Internet
• Intranets
• Extranets

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Management Challenges

• How to avoid failures
• Organizational Barriers
• Culture, resistance to change
• IT role in designing competitive and effective
  organizations
• How to develop IT that supports business goals
• Evolving IT
• Legacy systems to client/server to web-based
• Ethical and social responsibility