ITE106: Management Information Systems
Thossaporn Thossansin, BS.c, MS.c
Introduction to Management
Information Systems
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ITE106:
Management Information Systems
Lecture: Wednesday
09:00 PM - 11:45 PM
Thossaporn Thossansin, Bs.c, Ms.c
email: [email protected]
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Course Books
ตำรำหลัก :
Laudon, Kenneth C, Jane Price, Essentials of Management Information
Systems, January 2010 (ISBN: 978-0-136-11444-4)
ตำรำประกอบ :
•
Joseph Valacich / Christoph Schneider, Information Systems Today:
Managing the Digital World, April 2009 (ISBN: 978-0-13607-840-1)
•
http://www.thaiall.com/mis/indexo.html
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Grading
The grade received in the course will be based on:
•Participation/Homework
•Mid-Term Exam
•Final Exam
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(30%)
(30%)
(40%)
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Information Concepts:
Data, Information, and Knowledge
• Data: raw facts
– Alphanumeric, image, audio, and video
• Information: collection of facts organized in such a way
that they have additional value beyond the value of the
facts themselves
– Value of Information is directly linked to how it helps
decision makers achieve their organization’s goals and
can be measured
• in time required to make a decision
• Increased profits to the company
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Data, Information, and Knowledge
Figure 1.2: The Process of Transforming Data into Information
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The Characteristics of Valuable Information
Table 1.2: Characteristics of Valuable Information
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The Characteristics of Valuable Information
(continued)
Table 1.2: Characteristics of Valuable Information
(continued)
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What is an Information System?
Figure 1.3: The Components of any Information System
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Computer-Based Information Systems
• Computer-based information system
(CBIS): single set of hardware, software,
databases, telecommunications, people, and
procedures configured to collect, manipulate,
store, and process data into information
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Computer-Based Information Systems
• CBIS components
– Hardware: computer equipment used to perform input,
processing, and output activities
– Software: computer programs that govern the
operation of the computer
– Database: organized collection of facts and
information
– Telecommunications: electronic transmission of
signals for communications
– Networks: connect computers and equipment in a
building, around the country, and around the world
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Business Information Systems
• Most common types of information systems
used in business organizations
–
–
–
–
–
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Electronic and mobile commerce systems
Transaction processing systems
Management information systems
Decision support systems
Specialized business information systems
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Electronic and Mobile Commerce
• E-commerce: any business transaction
executed electronically between parties
–
–
–
–
–
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Companies (B2B)
Companies and consumers (B2C)
Consumers and other consumers (C2C)
Companies and the public sector
Consumers and the public sector
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Transaction Processing Systems
• Transaction: business-related exchange
– Payments to employees
– Sales to customers
– Payments to suppliers
• Transaction processing system (TPS):
organized collection of people, procedures,
software, databases, and devices used to
record completed business transactions
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Additional Business Information Systems
• Management Information Systems (MIS)
– provide routine information to managers and decision
makers
• Knowledge Management Systems (KMS)
– create, store, share, and use the organization’s knowledge
and experience
• Artificial intelligence (AI)
– field in which the computer system takes on the
characteristics of human intelligence
• Decision support system (DSS)
– used to support problem-specific decision making
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What is MIS?
• Information
 Data that has been put into a meaningful and
useful context. Usually to help make a
decision.
• Management Information System
 A combination of computers and people that
is used to provide information to aid in
making decisions and managing a firm.
• Information Technology (IT)
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Why is MIS Important?
• MIS affects all areas of business
–
–
–
–
–
Manufacturing
Accounting & Finance
Human resources
Marketing
Top management
• Performance evaluations—expectations
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What are e-Commerce and
e-Business?
• Business-to-Consumer (B2C)
– Selling retail products to consumers
• Business-to-Business (B2B)
– Selling at the wholesale level to other businesses
• E-Business
– Using Internet technologies to conduct any level of
business
– E-Commerce
– Intranets
– Most areas of MIS
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Several Terms
•
•
•
•
E-World; Digital Age; Digital Firms
Information Technology (IT)
Information Systems (IS)
Office Workers; Knowledge Workers;
End-Users; End-User Managers
• E-Business; E-Commerce
• Business initiatives drive IT choices
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Meetings
Managers and professionals spend considerable time in meetings. Providing
support for teamwork and group decisions is an important issue in MIS.
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Making Decisions
• Methodology v. Ad Hoc Decisions
• Decision Process
– Collect Data
– Identify Problems & Opportunities
2
– Make Choices
1
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3
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Traditional Management
CEO
Commands
VP
Finance
VP
Marketing
VP
Accounting
Condensed reports
VP
HRM
VP
MIS
Analyze data
Layers of middle managers
Collect
data
Customers
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Decentralization
Management Team
CEO
VP
Fin
VP
Mrkt
VP
Acct
VP
HRM
VP
MIS
Strategy
Finance
Team
Marketing
Team
Sales
Team
Accounting
Team
Methodology/Rules
HRM
Team
Corporate
Database
&
Network
Franchise
Customers
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Business Trends
• Changing business environment
– Specialization
– Management by Methodology and Franchises
– Mergers
– Decentralization and Small Business
– Temporary Workers
– Internationalization
– Service-Oriented Business
– Re-engineering
• Need for faster responses and flexibility
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Business Trend Summary
Business Trend
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Implications for Technology
Specialization
1.Increased demand for technical skills
2.Specialized MIS tools
3.Increased communication
Methodology & Franchises
1.Reduction of middle management
2.Increased data sharing
3.Increased analysis by top management
4.Computer support for rules
5.Re-engineering
Mergers
1.Four or five big firms dominate most industries
2.Need for communication
3.Strategic ties to customers and suppliers
Decentralization & Small Business
1.Communication needs
2.Lower cost of management tasks
3.Low maintenance technology
Temporary Workers
1.Managing through rules
2.Finding and evaluating workers
3.Coordination and control
4.Personal advancement through technology
5.Security
Internationalization
1.Communication
2.Product design
3.System development and programming
4.Sales and marketing
Service Orientation
1.Management jobs are information jobs
2.Customer service requires better information
3.Speed
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US Employment Patterns
US Employment Patterns
160
millions of workers
140
120
Service
100
Management
80
Manufacturing
60
Farm
40
20
0
1920 1930 1940 1950 1960 1970 1980 1990 2000
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International Web Browsers
Web Users
Asia-Other 2%
Scandanavian
2%
Russian 2%
Malay 2%
Dutch 2%
Arabic 1%
Italian 3%
Portuguese 3%
English 35%
French 3%
Korean 4%
Europe-Other
4%
German 7%
Spanish 8%
Japanese 9%
Chinese 13%
Source: http://www.glreach.com/globstats/
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MIS Organization
Strategic
Mgt.
Tactical
Management
Business Operations
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Operations, Tactics, Strategy
Sector
Operations
Production
• Machine settings
• Worker schedules
• Maintenance sch.
• Categorize assets
• Assign expenses
• Produce reports
• Reward salespeople
• Survey customers
• Monitor promotions
Accounting
Marketing
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Tactics
• Rearrange work area
• Schedule new products
• Change inventory method
• Inventory valuation
• Depreciation method
• Finance short/long term
• Determine pricing
• Promotional campaigns
• Select marketing media
Strategy
• New factory
• New products
• New industry
• New GL system
• Debt vs. equity
• International taxes
• Monitor competitors
• New products
• New markets
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Decision Levels
Decision
Level
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Description
Example
Type of Information
Strategic
Competitive advantage,
become a market leader.
Long-term outlook.
New product that
will change the
industry.
External events, rivals,
sales, costs quality,
trends.
Tactical
Improving operations
without restructuring the
company.
New tools to cut
costs or improve
efficiency.
Expenses, schedules,
sales, models,
forecasts.
Operations
Day-to-day actions to
keep the company
functioning.
Scheduling
Transactions,
employees,
accounting, human
ordering supplies. resource management,
inventory.
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Information Technology (IT)
• Computer Technology (Hardware and
Software)
 Processing and Storing Information
• Communication Technology
 Transmitting information
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“Better” Tangible Outputs
• IT is used to make the process in producing a
tangible output more efficient and more effective
• Implication Issues
–whether or not to use IT
–selecting the proper IT
–employing correct procedures for the
utilization of the IT
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Intangible Outputs
• A schematic view - the information/decision level
• MIS involves identifying the key decisions that are
related to reaching objectives, on determining the
proper information needed to make these decisions,
and on improving the decision processes employed to
make the decisions.
• Implications: Activity at this level concentrates on
developing tools and processes that allow better
management decision making
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The MIS Concept
Intangible Outputs (achieving desired objectives)
Goals/Objectives
Decisions
Information
Decision Processes
Data
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System Concepts
• What is a system?
–A set of components that interact to accomplish goals
–Systems can be viewed as process models in terms of their
inputs, outputs, processing, and feedback/control mechanisms.
Examples.
• What is an IS?
–A set of interrelated components that collect input, process, and
output data and information and provide a feedback/control
mechanism
• What is a CBIS? (Computer-Based Information System )
–An IS that uses IT.
–Components: hardware, software, databases, networks, people,
procedure
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System Examples
• University – an example
– Inputs: students, faculty, textbooks
– Processing mechanisms: teaching, research, service
– Output: graduates
– Goal: acquisition of knowledge
• The Manufacturing System
• Other example
• Subsystem, interface,
open, adaptive
Boundary
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Feedbac
k
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A Manufacturing System: Generic Components
Environment
Feedback
Signals
Feedback
Signals
Control
Signals
Control by
Management
Control
Signals
Input of
Raw Materials
Manufacturing
Process
Output of
Finished Products
System Boundary
Other Systems
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Systems: Some Examples
• University
– Inputs: Students, Faculty,
Textbooks
– Processes:
Education/Courses
– Output: graduates
– Feedback: surveys, grades
• Toyota Plant
– Inputs: raw materials,
components
– Processes: assembly line
– Output: mini-vans
– Feedback: customer surveys,
quality reports
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• Fast Food IS
– Inputs: consumer orders
– Processes: processing
software
– Output: receipts, cook’s
order list
– Feedback: invalid entry
message
• Video Store IS
– Inputs: rentals, returns
– Processes: processing
software
– Output: reports, rental
agreement
– Feedback: error repots
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System Classifications and Characteristics
Subsystem
System Boundary
Interface
Open, Adaptive Systems
Open
Adaptive
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Closed
Nonadaptive
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Input, Processing, Output, Feedback/Control
INPUTS
Gathering and
capturing raw data
PROCESSING
Converting or
transforming data
into useful
outputs
OUTPUTS
Producing useful
information, usually in
the form of documents.
Feedback/Control
Output that is used
to make changes to
input or processing
activities
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Procedures
• Procedures - set of instructions used by people
to complete a task
• Procedures include the strategies, policies,
methods, and rules for using the CBIS.
• Examples: procedures describe
– When each program is to be run
– Who can have access to database
– What is to be done in case of a disaster
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System Performance Standards:
Efficiency and Effectiveness
Efficiency: a measure of
what is produced divided
by what is consumed
• an improved product
• the same level product
produced cheaper or
faster
• the improvement in the
product exceeds the
increased cost
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Effectiveness: a measure
of the extent to which a
system achieves its
goals.
• Goal: to reduce damaged
parts by 100 units
• Q: Actual reduction in
damaged parts using a
control system is only
85 units. Effectiveness?
• A: The effectiveness of
the control system is 85
percent
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What You Need to Know
• Foundation Concepts: Fundamental concepts about the
components and roles of IS
• IT: Major concepts, developments, and management
issues in information technologies
• Business Applications: The major uses of IS for the
operations, management, and competitive advantage
• Development Processes: How end users or information
specialists develop and implement IS
• The challenges of effectively and ethically managing
information technologies, strategies, and security at the
end user, enterprise, and global levels of a business
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Major Roles of Information Systems
Support of
Strategic
Advantage
Support of
Managerial
Decision Making
Support of
Business Operations
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History of the Role of IS
1950-1960
1960-1970
Data
Processing
Management
Reporting
Electronic
Data
Processing
- TPS
Management
Information
Systems
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1970-1980
Decision
Support
Decision
Support
Systems
- Ad hoc
Reports
1980-1990
1990-2000
Strategic &
End User
Electronic
Commerce
End User
Computing
Exec Info Sys
Expert Systems
SIS
Electronic
Business &
Commerce
-Internetworked
E-Business &
Commerce
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Trends in ISs
• Data Processing: 1950s – Transaction processing, record keeping, traditional
accounting applications
• Management Reporting: 1960s – MIS – predefined management reports for decision-making
purposes
• Decision Support: 1970s – DSS – interactive ad hoc support of the managerial decisionmaking process
• Strategic and End User Support: 1980s – EUC, Executive Information Systems, Expert Systems,
Strategic Information Systems
• Electronic Business and E-Commerce: 1990s 1.47
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The Electronic Business
The Internet
Suppliers and Other Business Partners
Company
Boundary
Extranets
Procurement, Distribution, and Logistics
Manufacturing
and
Production
Engineering &
Research
Accounting,
Finance, and
Management
Intranets
Advertising
Sales
Customer Service
Extranets
Consumer and Business Customers
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Ethical Dimensions of IT
• What uses of IT might be considered improper,
irresponsible, or harmful to other individuals or to
society?
• What is the proper use of an organization’s
information resources?
• What does it take to be a responsible end user of IT?
• How can you protect yourself from computer crime
and other risks of IT?
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