Management Information Systems Course Overview Objective Lecturer Sieng

Management Information Systems

Course Overview & Objective • Lecturer: Sieng Samrang, MBA, BSc • Contact Info: § Email: Samrang_it@yahoo. com § Mobile Phone: 012 961 828 2

Why study information systems and information technology? • Vital component of successful businesses • Helps businesses expand compete • Improves efficiency and effectiveness of business processes • Facilitates managerial decision making and workgroup collaboration 3

Why Study Information Systems? • Does an information system have to have a computer? • Think of 3 examples of an information system No Supermarket's POS, Bank’s ATM, Hotel’s Management System • So Why Use a PC? • • manipulate data much faster than a human. They are cheaper than human labor They do not make mistakes Data can easily be moved or copied • How do you know if an information system is effective? Return on Investment (ROI) 4

COURSE OBJECTIVE • Course Objective: • To enable students to understand basic information technology concepts and participate in developing information systems solutions to business problems. • To assist students to understand the fundamental concepts of realworld information systems and to demonstrate the potential advantages of state-of-the-art information technology applications in organization. • Course synopsis: • The foundations of information systems. Information management and its strategic role in organizations. The technical foundations of information systems; elements of information processing and the telecommunication. The contemporary tools, techniques and approaches used to build information systems. 5

Course Outline • • Chapter 1: An Introduction to Information Systems Chapter 2: Information System in Organization Chapter 3: Hardware: Input, Processing and Output device Chapter 4: Software: System and Application Software Chapter 5: Organizing Data and Information Chapter 6: Telecommunication and Network Chapter 7: E-Commerce Chapter 8: Transaction Processing and Enterprise Resource Planning ( ERP ) System • Course Materials: • Text book: -Laudon and Laudon. Management Information Systems: Managing the Digital Firm (12 th Ed. ), Prentice Hall, 2007. • Lecture notes: softcopy 6

Assessment Model • On-going Assessment 40% • Mid-term Exam 20% • Final Exam 40% 100% 7

• The value of information is directly linked to how it helps decision makers achieve the organization’s goals • Discuss why it is important to study and understand information systems • Distinguish data from information and describe the characteristics used to evaluate the quality of data Principles of Information Systems, Seventh Edition 9

• Models, computers, and information systems are constantly making it possible for organizations to improve the way they conduct business • Name the components of an information system and describe several system characteristics • Identify the basic types of models and explain how they are used Principles of Information Systems, Seventh Edition 10

• Knowing the potential impact of information systems and having the ability to put this knowledge to work can result in a successful personal career, organizations that reach their goals, and a society with a higher quality of life • List the components of a computer-based information system • Identify the basic types of business information systems and discuss who uses them, how they are used, and what kinds of benefits they deliver Principles of Information Systems, Seventh Edition 11

• System users, business managers, and information systems professionals must work together to build a successful information system • Identify the major steps of the systems development process and state the goal of each Principles of Information Systems, Seventh Edition 12

• Information systems must be applied thoughtfully and carefully so that society, business, and industry can reap their enormous benefits • Describe some of the threats to security and privacy that information systems and the Internet can pose • Discuss the expanding role and benefits of information systems in business and industry Principles of Information Systems, Seventh Edition 13

Introduction • Information system (IS) • A set of interrelated components that collect, manipulate, and disseminate data and information and provide feedback to meet an objective • Examples: ATMs, airline reservation systems, course reservation systems, Hotel Management System Principles of Information Systems, Seventh Edition 14

Information Concepts: Data Versus Information • Data: raw facts • Information: collection of facts organized in such a way that they have additional value beyond the facts themselves Principles of Information Systems, Seventh Edition 15

Data Versus Information nn a 0 es M 0 1 arl s e 0 h Sho 0 C 2 1 st M We 54 T 1 79 Monthly Sales Report for West Region Sales Rep: Charles Mann Emp No. 79154 Item Qty Sold Price TM Shoes 1200 $100 16

Table 1. 1: Types of Data Principles of Information Systems, Seventh Edition 17

Figure 1. 1: Defining and Organizing Relationships Among Data Creates Information Principles of Information Systems, Seventh Edition 18

Figure 1. 2: The Process of Transforming Data into Information Principles of Information Systems, Seventh Edition 19

Table 1. 2: Characteristics of Valuable Data Principles of Information Systems, Seventh Edition 20

Table 1. 2: Characteristics of Valuable Data (continued) Principles of Information Systems, Seventh Edition 21

System and Modeling Concepts • System: a set of elements or components that interact to accomplish goals • Components of a system • Input • Processing • Output • Feedback Principles of Information Systems, Seventh Edition 22

Figure 1. 3: Components of a System Principles of Information Systems, Seventh Edition 23

System Components and Concepts • System boundary: defines the system and distinguishes it from everything else (i. e. , the environment) • Configuration: the way system elements are organized or arranged • Systems can be classified as simple or complex, open or closed, stable or dynamic, adaptive or nonadaptive, and permanent or temporary Principles of Information Systems, Seventh Edition 24

Table 1. 3: Systems Classifications and Their Primary Characteristics Principles of Information Systems, Seventh Edition 25

System Performance and Standards • Efficiency: a measure of what is produced divided by what is consumed • Effectiveness: extent to which system attains its goals • System performance standard: a specific objective of a system Principles of Information Systems, Seventh Edition 26

System Variables and Parameters • System variable: quantity or item controlled by the decision maker • System parameter: value or quantity that cannot be controlled (e. g. , the cost of a raw material) Principles of Information Systems, Seventh Edition 27

Modeling a System • Model: an abstraction that is used to represent reality • Four major types of models: narrative (based on words); physical (tangible); schematic (graphic representation); mathematical (arithmetic representation) Principles of Information Systems, Seventh Edition 28

Figure 1. 6: Four Types of Models Principles of Information Systems, Seventh Edition 29

Figure 1. 7: The Components of an Information System Principles of Information Systems, Seventh Edition 30

Input, Processing, Output, Feedback • Input: activity of gathering and capturing raw data • Processing: converting or transforming data into useful outputs • Output: production of useful information, usually in form of documents and reports • Feedback: output used to make changes to input or processing activities Principles of Information Systems, Seventh Edition 31

Computer-Based Information Systems • Computer-based information system (CBIS) • A single set of hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information • Examples: a company’s payroll systems, order entry system, and inventory control systems Principles of Information Systems, Seventh Edition 32

Figure 1. 8: The Components of a Computer-Based Information System Principles of Information Systems, Seventh Edition 33

Business Information Systems • Most common types of information systems used in business organizations include: • Electronic and mobile commerce systems • Transaction processing systems • Management information systems • Decision support systems Principles of Information Systems, Seventh Edition 34

Electronic and Mobile Commerce • E-commerce: any business transaction executed electronically between parties • Parties involved include companies (B 2 B); companies and consumers (B 2 C); consumers and other consumers (C 2 C); businesses and the public sector; consumers and the public sector Principles of Information Systems, Seventh Edition 35

Transaction Processing Systems and Enterprise Resource Planning • Transaction: any business-related exchange, such as payments to employees, sales to customers, and payments to suppliers • Transaction processing system (TPS): an organized collection of people, procedures, software, databases, and devices used to record completed business transactions Principles of Information Systems, Seventh Edition 36

Figure 1. 11: A Payroll Transaction Processing System The inputs (numbers of employee hours worked and pay rates) go through a transformation process to produce outputs (paychecks) Principles of Information Systems, Seventh Edition 37

Enterprise Resource Planning • Enterprise resource planning (ERP) system: set of integrated programs that can manage a company’s entire set of business operations • ERP systems often coordinate planning, inventory control, production, and ordering Principles of Information Systems, Seventh Edition 38

Information and Decision Support Systems • Management information system (MIS): an organized collection of people, procedures, software, databases, and devices that provides routine information to managers and decision makers • Primary focus of an MIS is on operational efficiency Principles of Information Systems, Seventh Edition 39

Figure 1. 12: Functional Management Information Systems Principles of Information Systems, Seventh Edition 40

Management Information Systems • MIS outputs • Scheduled reports • Demand reports • Exception reports Principles of Information Systems, Seventh Edition 41

Decision Support Systems • Decision support system (DSS): an organized collection of people, procedures, software, databases, and devices used to support problem-specific decision making • Focus of a DSS is on decision-making effectiveness Principles of Information Systems, Seventh Edition 42

Figure 1. 13: Essential DSS Elements Principles of Information Systems, Seventh Edition 43

Specialized Business Information Systems • Artificial intelligence (AI) systems • Virtual reality systems • Expert systems • Other special-purpose business information systems Principles of Information Systems, Seventh Edition 44

Figure 1. 14: The Major Elements of Artificial Intelligence Principles of Information Systems, Seventh Edition 45

Systems Development • Systems development: the activity of creating or modifying existing business systems • Systems investigation: gaining a clear understanding of the problem to be solved or opportunity to be addressed • Systems analysis: defines the problems and opportunities of the existing system Principles of Information Systems, Seventh Edition 46

Figure 1. 17: An Overview of Systems Development Principles of Information Systems, Seventh Edition 47

Systems Development (continued) • Systems design: determines how new system will work to meet business needs defined during systems analysis • Systems implementation: creating or acquiring the various system components defined in design step, assembling them, and putting new system into operation • Systems maintenance and review: check and modify system so that it continues to meet changing business needs Principles of Information Systems, Seventh Edition 48

Information Systems in Society, Business, and Industry • Information systems must be implemented thoughtfully and carefully • Information systems face a variety of threats from unethical people Principles of Information Systems, Seventh Edition 49

Figure 1. 18: Attacks on Businesses and Other Organizations in One Year Principles of Information Systems, Seventh Edition 50

Figure 1. 19: The Cost and Cause of Computer Attacks Principles of Information Systems, Seventh Edition 51

Computer and Information Systems Literacy • Computer literacy: knowledge of computer systems and equipment and the ways they function • Information systems literacy: knowledge of how data and information are used Principles of Information Systems, Seventh Edition 52

Information Systems in the Functional Areas of Business • Finance and accounting (e. g. , forecast revenues and business activity; analyze investments; perform audits) • Sales and marketing (e. g. , product analysis; promotion analysis; price analysis) • Manufacturing (e. g. , process orders; develop schedules; control inventory) Principles of Information Systems, Seventh Edition 53

Information Systems in Industry • Airline industry (e. g. , Internet auction sites) • Investment firms (e. g. , analyze stocks and bonds) • Banks (e. g. , online check payment) • Transportation industry (e. g. , schedule trucks and trains) • Publishing companies (e. g. , analyze markets) Principles of Information Systems, Seventh Edition 54

Information Systems in Industry (continued) • Healthcare organizations (e. g. , track patient records) • Retail companies (e. g. , process customer orders) • Power management and utility companies (e. g. , monitor and control power generation and usage) • Professional services (e. g. , provide information on products and services to its consultants) Principles of Information Systems, Seventh Edition 55

Summary • Data: raw facts • Information: collection of facts organized in such a way that they have value beyond the facts themselves • System: a set of elements that interact to accomplish a goal • Components of a system: input, processing, output, and feedback • A model is an abstraction that is used to represent reality Principles of Information Systems, Seventh Edition 56

Summary (continued) • Computer-based information system (CBIS): a single set of hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information • Transaction processing system (TPS): an organized collection of people, procedures, software, databases, and devices used to record completed business transactions Principles of Information Systems, Seventh Edition 57

Summary (continued) • Management information system (MIS): an organized collection of people, procedures, software, databases, and devices used to provide routine information to managers and decision makers • Decision support system (DSS): an organized collection of people, procedures, software, databases, and devices used to support problem-specific decision making • Systems development: the activity of creating or modifying existing business systems Principles of Information Systems, Seventh Edition 58