ICS321 Management Information Systems

Dr. Kenneth Cosh

Lecture 1

M.I.S.

ICS321 3(3-0-6) credits. Dr. Kenneth Cosh Office: 314 Class Time: 14:00-15:30 – Mon/Wed Assessment: Midterm, Final, Case Study

Presentation, Individual Report.

Course Description

“A study of the structure of basic information and the design and development of management information systems within business and industrial environments. Students will explore the application of information technology as a management productivity tool and integrative use of application programs to improve productivity.”

Today’s Topic

Foundation Concepts

What is M.I.S.?

Management Information Systems

or

The Management of Information Systems

“The study of information systems and their use in business and management” (Laudon)

MIS is a term from the 1960’s, it is now often considered out of date.

Why study M.I.S.?

For C.I.S. students; It’s a key application of materials from related

courses. As a C.I.S. graduate it’s likely you will be dealing with

computerised information systems within businesses. Most of the information systems we will be dealing

with are ‘computer-based information systems’ (CBIS).

What is an Information System? “An information system can be any organised

combination of people, hardware, software, communications networks, and data resources that collects, transforms and disseminates information in an organisation.” (O’Brien).

What is Information Technology? Technologies are ‘devices’ which can assist

with the working of the information system; Paper and Pencil (Hardware) Word of Mouth (Communication Networks) Filing Cabinet (Data Resource)

Mostly we will be interested in computer based technology.

What is a System?

“Group of interrelated or interacting elements forming a unified whole.” (O’Brien) Physical Systems (Weather Systems, Solar

Systems) Biological Systems (Human body) Educational Systems (Schools, Universities) Information Systems…

Systems

Systems have 3 basic elements; Input: the ‘things’ which enter the

system, (food, orbits, high / low pressure systems, data)

Processing: transformation process to convert input into output, (breathing, mathematical calculations)

Output: Transferring the transformed elements to their ultimate destination, (Physical movements, information)

Input

Output

Processing

Feedback and Control

The System becomes more useful when there is Feedback and Control; Feedback: data about

system performance Control: monitoring and

evaluating feedback to determine whether the system is moving towards achieving it’s goal and then adjusting where necessary.

Input

Output

Processing Feedback& Control

System Example

A Thermostat self-regulating Air Conditioning. Input: Current room temperature. Processing: Comparison with desired temperature Output: Either On or Off Feedback & Control: Ability of human user to

adjust temperature.

Further System Concepts

Sub-systems Systems rarely exist within a vacuum, they are normally

part of some environment (or greater system). Interfacing Systems

Often multiple systems share the same environment, in which case they often interract / have shared interfaces

The output of one system could be the input of the next (stock control figures are passed as input to sales department).

Adaptive Systems Some systems have the ability to change itself or it’s

environment in order to survive.

Case Study

UPS Competes Globally with Information Technology Laudon & Laudon p16.

Information Systems

Collects data inputs, transforms them into information outputs and disseminates the information around an organisation.

Remember O’Brien’s quote? “An information system can be any organised combination

of people, hardware, software, communications networks, and data resources that collects, transforms and disseminates information in an organisation.”

Information Systems are comprised of 5 major types of resource; People, Hardware, Software, Communication, Data

A Computer…for Dummies!

Input Devices Keyboard, Mouse,

Microphone, Scanner… Output Devices

Monitor, Printer, Speaker… Processor

CPU Storage Capabilities

Main memory (RAM), Secondary memory (Hard Disk, CD’s etc.)

Information System Resources People Hardware Software Data Network (Communication)

People Resources

End Users - the people who use the information systems. E.g. Customers, salespeople, engineers, clerks, accountants, all of us!

IS Specialists - the people who develop, implement and maintain the information systems. E.g. software developers, analysts, support staff.

Hardware Resources

Physical, Tangible devices & materials used in information processing. Machines - PC’s, monitors, printers etc. Media - disks, printouts, paper etc.

Software Resources

Information Processing Instructions Programs (system, application software)

OS, word processing, spreadsheets, databases, payroll etc.

Procedures (Operating Instructions) Data Entry procedures, paycheck distribution

procedures

Data Resources

Databases Knowledge Bases

Data vs Information? Data - Raw material resources Information - Processed data into meaningful

product.

From Data to Wisdom

Data: symbols Information: data that are processed to be useful;

provides answers to "who", "what", "where", and "when" questions

Knowledge: application of data and information; answers "how" questions

Understanding: appreciation of "why" Wisdom: evaluated understanding.

(Ackoff)

Network Resources

Communication Media Cables, fibre optics, cellular, wireless

Network Support Technologies to support the network, modems,

internet browsers etc.

Changing Role of IS

IS is performing an increasingly important role within organisations, that role is changing. Technology Push effects Business Pull effects

Technology - ‘Push’

Increased Capability Improved Processing & Storage Improved Connection

Networks Internet

Comparative Cost reductions

Source: Source: McFarlanMcFarlan, Warren F., , Warren F., Tale of Two Airlines in the Information Age: Or Why the Spirit of King George III is AliveTale of Two Airlines in the Information Age: Or Why the Spirit of King George III is Aliveand Well !and Well ! Teaching Note, Copyright © 1995 President and Fellows Harvard College Teaching Note, Copyright © 1995 President and Fellows Harvard College

THE ECONOMICS OF COMPUTERSTHE ECONOMICS OF COMPUTERS

Year Cost Power ‘66

1966 $10,000,000 1

2001 $7 1,508,002

2006 $0.87 11,508,821

2016 $0.01 670,329,823

Gresham’s Law even faster

Tale of Two Airlines TN, Slide 3 of 6Tale of Two Airlines TN, Slide 3 of 6

Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan., Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hi ll /Irwin, 2002.

1

10

100

1,000

10,000

100.000

1,000,000

1980 1990 1996

PCs and wo rks tations

Main frame

Ada pte d from: McKenn ey, J., W a ves o f C ha nge : Bu sine ss Evo lutio n th rou gh Info rmatio n Tech no log y , Bosto n: Ha rvard Bu sin ess Sch oo l Pre ss, 1 99 5.

Pric e Pe rformanc e Tre nds o f Mainframes and PCs $/MIP s

*Rat io of MIPs per Dollars (Mainframes:PCs)

8:1*

286:1*

900:1*

Evolution of Computing Performance

Introduction Figure I-1

Business Pull Effects

6 Important Business Objectives Operational Excellence

Efficiency / Productivity New Products, Services & Business Models

Consider today’s music industry? Customer & Supplier Intimacy

CRM & SCM systems Improved Decision Making

Right information at the right time Competitive Advantage

Doing things your competitors can’t match Survival

Keeping up with competitors, or legal changes

Changing Role of IT in Organisations 4 Era’s of Technology

DP Era (Data Processing) MIS Era (Management Information Systems) SIS Era (Strategic Information Systems) Internet Era

DP Era (50’s-60’s)

Purpose : AUTOMATE Form : Mainframe Limitations : Hardware Focus : Programming Ownership : Computer Dept., Remote from users Objectives : lower costs, make use of technology

MIS Era (70’s-80’s)

Purpose : INFORMATE Form : Distributed Processing - PC’s Limitations : Software Focus : Identifying User’s needs Ownership : Regulated by management, available

as service Objectives :Supporting management, meeting users’

needs

SIS Era (80’s-90’s)

Purpose : TRANSFORMATE Form : Networking Limitations : Management Vision Focus : Identifying Business Opportunities Ownership : Executives, Linked to business

functions Objectives : Supporting Business, meeting business

needs.

Internet Era (Now!)

Purpose : ???...MATE Form : Internet Limitations : ??? Viability of Business Models Focus : ??? Reach and Range Ownership : Everyone - central to whole business Objectives : it IS the business.

Case Study

Is Second Life Ready for Business? Laudon & Laudon p34