Management Information Systems By Effy Oz

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Management Information SystemsBy Effy Oz Andy
Jones
Chapter 1 Business Information Systems An
Overview
www.cengage.co.uk/oz
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Objectives

• Explain why information systems are essential to
  business
• Describe how computers process data into useful
  information for problem solving and decision
  making
• Identify the functions of different types of
  information systems in business

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Objectives (continued)

• Describe careers in information technology
• Identify major ethical and societal concerns
  created by widespread use of information
  technology

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The Purpose of Information Systems

• Businesses use information systems
• To make sound decisions
• To solve problems
• Problem is any undesirable situation
• Decision arises when more than one solution to
  problem exists

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The Purpose of Information Systems (continued)

• Problem solving and decision making require
  information
• Keys to success in business are
• Gathering correct information
• Storing information
• Using information

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Data, Information, and Information Systems

• Data, information and system are commonly
  used terms
• Important to understand their similarities and
  differences

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Data vs. Information

• Data a given or fact
• Can be number, statement, or picture
• Information facts or conclusions that have
  meaning within context
• Composed of data that is manipulated

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Data Manipulation

• Data is manipulated to make useful information
• Survey is common method of collecting data
• Raw data is hard to read
• Information is more useful to business than data

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Generating Information

• A process is manipulation of data
• Process usually produces information
• Process may produce more data
• A piece of information in one context may be
  considered data in another context

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Generating Information (continued)
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Information in Context

• Not all information is useful
• Useful information is
• Relevant
• Complete
• Accurate

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Information in Context (continued)

• Useful information is
• Current
• Obtained economically (in business)

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Information in Context (continued)
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What Is a System?

• System array of components that work together to
  achieve goal or goals
• System
• Accepts input
• Processes input
• Produces output

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What is a system? (continued)

• System may have multiple goals
• System may contain subsystems
• Subsystems have sub-goals that meet main goal
• Subsystems transfer output to other subsystems

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What is a system? (continued)

• Closed system has no connections with other
  systems
• Open system interfaces and interacts with other
  systems
• Often a subsystem of a bigger system
• Information system processes data and produces
  information

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Information and Managers

• Systems thinking thinking of an organization in
  terms of subsystems
• Database collection of electronic records
• Information systems automate exchange among
  subsystems
• Information map network of information systems
• Information technology technologies that
  facilitate construction and maintenance of
  information systems

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The Benefits of Human-Computer Synergy

• Humans are relatively slow and make mistakes
• Computers cannot make decisions
• Synergy combining resources to produce greater
  output

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The Benefits of Human-Computer Synergy (Continued)
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Information Systems in Organisations

• Computer-based Information system system with
  computer at centre
• Certain trends have made information systems
  important in business
• Organisations lag behind if they do not use
  information systems

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Components of information systems
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The Four Stages of Processing

• Input collect and introduce data to system
• Transaction a business event, usually entered as
  input
• Data processing perform calculations on input
• Output what is produced by the information
  system
• Storage vast amounts of data stored on (for
  example) optical discs

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Computer Equipment for Information Systems

• Input devices receive input
• Computer process data
• Output displays information
• Storage devices store data
• Network devices transfer data

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Computer Equipment for Information Systems
(continued)
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From Recording Transactions to Providing
Expertise Types of Information Systems

• Many types of information systems
• Capabilities of applications have been combined
  and merged
• Management Information System supports planning,
  control, and making decisions

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Transaction Processing Systems

• Most widely used type of system
• Records data collected at point where
  organisation interacts with other parties
• Encompasses cash registers, ATMs and purchase
  order systems

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Supply Chain Management Systems

• Supply chain sequence of activities involved in
  producing and delivering products
• Activities include marketing, purchasing raw
  materials, manufacturing, shipping, billing,
  collection, and after-sale services
• Also known as enterprise resource planning (ERP)
  systems

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Customer Relationship Management Systems

• Customer relationship management managing
  relations with customers
• Used in combination with telephones to provide
  customer service
• Often linked to Web applications that track
  online transactions

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Business Intelligence Systems

• Business Intelligence gather data to help
  organisation compete
• Often contains statistical models
• Access large pools of data
• Data warehouse large database that usually store
  transactional records

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Decision Support and Expert Systems

• Decision support system supports decision-making
• Relies on models to produce tables
• Extrapolates data to predict outcomes
• Expert system supports knowledge-intensive
  decision-making
• Uses artificial intelligence

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Geographic Information Systems

• Geographic information system ties data to
  physical locations
• Represents data on a map in different formats
• May reflect demographic information in addition
  to geographic
• May use information from GPS satellites

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Geographic Information Systems (continued)
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Information Systems in Business Functions

• Functional business area services within a
  company that support main business
• Includes accounting, finance, marketing, and
  human resources
• Part of a larger enterprise system

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Accounting

• Information systems help record transactions
• Produce periodic statements
• Create required reports for legal compliance
• Create supplemental reports for managers

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Finance

• Finance systems facilitate financial planning and
  business transactions
• Tasks include organising budgets, managing cash
  flow, analysing investments, and making decisions

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Marketing

• Pinpoint likely customers and promote products
• Marketing information systems analyse demand for
  products in regions and demographic groups
• Identify trends in demand for products/services
• Web provides opportunity to collect marketing data

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Human Resources

• Human resource management systems aid
  record-keeping
• Must keep accurate records
• Aids recruiting, selection, placement, and reward
  analysis
• Performance evaluation systems provide grading
  utilities

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Web Empowered Enterprises

• E-commerce Buying and selling goods and
  services through Internet
• Internet is a vast network of computers connected
  globally
• Web has a profound impact on information systems

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Careers in Information Systems

• Information technology professionals are
  increasingly in demand
• Networking, system analyst, software engineering,
  and database administrator jobs are increasing in
  demand

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Systems Analyst

• System analyst designs and updates information
  systems
• Involves analysing system requirements,
  documenting development efforts, and providing
  specifications for programmers
• Requires communication and presentation skills

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Database Administrator

• Database administrator responsible for databases
• Develops and acquires database applications
• Must protect privacy of customers and employees
• Responsible for securing the database

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Data Administrator

• Data administrator responsible for strategic use
  of databases
• Ensuring senior management are able to make full
  use of internal data
• Ensuring appropriate external data is collected
  and filtered
• Enabling the use of this internal and external
  data to gain competitive advantage

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Network Administrator

• Network administrator acquires, implements,
  manages, maintains, troubleshoots networks
• Implements security
• Firewalls
• Access codes

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Webmaster

• Webmaster creates and maintains Web site
• Designs and codes the page
• Demand for Webmasters grows as more businesses
  use Web

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Chief Security Officer

• Chief security officer supervises security of
  information system
• Position exists due to growing threat to
  information security
• Reports to chief information officer

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Chief Information Officer and Chief Technology
Officer

• Chief information officer responsible for all
  aspects of information system
• Highest ranking IS officer
• Responsible for IS as a strategic resource
• Chief technology officer has similar duties as
  CIO
• High level corporate officer
• In charge of all IT needs of the organisation
• Sometimes the two positions are incorporated into
  one

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Chief Information Officer and Chief Technology
Officer (continued)
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Summary

• Computer-based information systems pervade almost
  every aspect of our lives
• A system is a set of components that work
  together to achieve a common goal
• Subsystem a system performs a limited task that
  produces an end result, which must be combined
  with other products from other systems to reach
  an ultimate goal
• Data processing has four stages

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Summary (continued)

• Any IS that helps in management is a management
  information system (MIS)
• Many different types of MIS
• Enterprise application systems (SCM or ERP) tie
  together different functional areas of a business
• ISs are used in accounting, finance, marketing,
  and human resources

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Summary (continued)

• The job prospects for IT professionals are bright
• IT has created societal concerns