foundation of information system in business-student copy

8/11/2019 Foundation of Information System in Business-student Copy

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Foundations of

Information Systemsin Business


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Explain why knowledge of information

systems is important for businessprofessionals and identify five areas ofinformation systems knowledge they need.

Provide examples of several major types of

information systems. Identify several challenges that a business

manager might face in managing thesuccessful and ethical development and use

of information technology in a business.

Learning Objectives


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Enterprise


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What is MIS?M: Management

Business Functions/Processes, Organizations and Human

Behaviors

I: Information

Contents: Data, Information, Knowledge

Processng part of it: How we Create, Gather/capture/elicit,

store, organize, Consolidate and Condense, Filter, Deliver and

Share

S: System (Information Systems/Information Technology)

Input-Process-Output and storage ..Next slide

General System Theory (GST)

References:

http://en.wikipedia.org/wiki/Management_Information_System

http://en.wikipedia.org/wiki/System_thinking
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A System View of an Information System

Input Process Output

Control Data Storage

Procedure

Main Memory

Sec. Memory

Data

Providers

Data

Sources/Businessevents

Information

Destinations

Consumers Users

Organization

units

Information System (Producer)

Information System BoundaryEnvironments

There has been a huge development in hardware options or inputs, outputs, processing and storages


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System & Information System?

System: A group of interrelated components,

with a clearly defined boundary, workingtogether toward a common goal by accepting

inputs and producing outputs in an organized

transformation process.

IS: It is a combination of h/w, s/w, infrastructure

and trained personnel organized to facilitate

planning, control, coordination and decisionmaking in an organization.


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A Business System


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Cybernetic Systemsa self-monitoring, self-regulating system.

Feedbackdata about the performanceof a system

Controlmonitoring and evaluatingfeedback to determine whether a system

is moving toward the achievement of itsgoal


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Example of a Cybernetic System


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Characteristics of Good Information System?

Accuracy

Timely

Relevant (provide context) to decisions

Just sufficient ..Information overloading

Worth its cost (to justify its benefits)Summary: Deliver just enough accurate, relevant and

timely information to the right persons to make better

decisions

Just to emphasize above: How much energy does aGoogle search consumes?

0.0003 kWh of energy per search; a Google search uses just

about the same amount of energy that your body burns in ten

seconds


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Information Quality (IQ) and Categories

IQ Category IQ Dimension

Intrinsic IQ Accuracy, Objectivity,Believability, Reputation

Accessibility IQ Access, Security

Contextual IQ Relevancy, Value-Added,

Timeliness, Completeness,

Amount of data

Representational IQ Interpretability, Ease of

understanding, Conciserepresentation, Consistent

representation

Sources: https://reader010.{domain}/reader010/html5/0612/5b1ef11ee37e1/5b1ef1244http://sloanreview.mit.edu/article/manage-your-information-as-a-product/
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Presentation of Information


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Presentation of Information


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Why Study Information Systems?

Information technology can help all kinds of

businesses to improve the efficiency andeffectiveness of their business processes,

managerial decision making, and workgroup

collaboration, thus strengthening their

competitive positions in a rapidly changing

marketplace.

Internet-based systems have become a

necessary ingredient for business success intodays dynamic global environment.

Information technologies are playing an

expanding role in business.


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Management Information System


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Management Information System

MIS has been defined in many ways as:

The system that provides information support for decision

making in the organization

An integrated system of man and machine for providing

the information to support the operation, the

management and the decision making function in theorganization.

The system based in the database of the organization

evolved for the purpose of providing information to the

people in the organization.


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Conceptual Framework of IS

Knowledge


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Roles of IS in Business


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IS Classifications by Scope Functional Business Systemssupport basic

business functions

Strategic Information Systemssupport

processes that provide a firm with strategic

products, services, and capabilities for

competitive advantage

Cross-functional Information Systemsintegrated combinations of information systems


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Trends in Information Systems


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E-Business

The use of Internet technologies to work andempower business processes, electronic

commerce, and enterprise collaboration within acompany and with its customers, suppliers, andother business stakeholders.

E-Commerce

The buying and selling, and marketing andservicing of products, services, and information

over a variety of computer networks.

ECSInvolve the use of software tools to support

communication, coordination, and collaborationamong the members of networked teams and

workgroups.


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E-Business IT Infrastructure


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Types of Information Systems


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Operation Support Systems

Information systems that process data

generated by and used in businessoperations

Goal is to efficiently process business

transactions, control industrial processes,support enterprise communications and

collaboration, and update corporate

databases


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Examples of Operations Support Systems

Transaction Processing Systems (TPS)

process data resulting from businesstransactions, update operational databases, and

produce business documents.

Process Control Systems (PCS)monitor and

control industrial processes.

Enterprise Collaboration Systemssupportteam, workgroup, and enterprise

communications an collaboration.


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Management Support Systems

Information systems that focus on providinginformation and support for effective

decision making by managers


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Management Support Systems Management Information Systems (MIS)

provide information in the form of pre-specified

reports and displays to support businessdecision making.

Decision Support Systems (DSS)provide

interactive ad hoc support for the decisionmaking processes of managers and otherbusiness professionals.

Executive Information Systems (EIS)providecritical information from MIS, DSS, and othersources tailored to the information needs ofexecutives.


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Operational & Managerial IS Expert Systemsprovide expert advice

for operational chores or managerialdecisions

Knowledge Management Systemssupport the creation, organization, and

dissemination of business knowledge to

employees and managers


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Management Challenges &

Opportunities


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Measures of Success Efficiency

Minimize costs Minimize time

Minimize the use of information resources

Effectiveness

Support an organizations business strategies

Enable its business processes

Enhance its organizational structure and culture Increase the customer business value of the

enterprise


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Developing IS Solutions


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Ethical Challenges of IT


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IT Career Trends Rising labor costs have resulting in large-scale

movement to outsource programming functions to India,

the Middle East and Asia-Pacific countries.

More new and exciting jobs emerge each day asorganizations continue to expand their wide-scale use of

IT.

Frequent shortages of qualified information systemspersonnel.

Constantly changing job requirements due to dynamicdevelopments in business and IT ensure long-term joboutlook in IT remains positive and exciting.

Th IS F ti t


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The IS Function represents A major functional area of business equally as important

to business success as the functions of accounting,

finance, operations management, marketing, andhuman resource management.

An important contributor to operational efficiency,employee productivity and morale, and customerservice and satisfaction.

A major source of information and support needed topromote effective decision making by managers andbusiness professionals.

A vital ingredient in developing competitive products andservices that give an organization a strategic advantage

in global marketplace. A dynamic, rewarding, and challenging careeropportunity for millions of men and women.

A key component of the resources, infrastructure, andcapabilities of todays networked business enterprise.


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