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201201 Management Information SystemsManagement Information Systems

Dr. Yasser Dr. Yasser SabrySabry

Room:Room: 21442144 Languages and Translation BuildingLanguages and Translation Building

Email: [email protected]: [email protected]


Dr. Yasser Dr. Yasser SabrySabry

Room:Room: 21442144 Languages and Translation BuildingLanguages and Translation Building

Email: [email protected]: [email protected]

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Module Description Basic concept of MISs MISs and operation strategy and

IS IS in solving management problems IT: machines programs communications- databases and

file processing organization of systems automation(offices automation).

Module Aims To use of IT in solving administrative problems and the

development of the ability of students to apply theories in practice.

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1Chapter

BusinessBusinessInformation SystemsInformation Systemsin Your Career in Your Career

BusinessBusinessInformation SystemsInformation Systemsin Your Career in Your Career

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STUDENT LEARNING OBJECTIVES

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter Chapter 1 1 Business Information Systems in Your Career Business Information Systems in Your Career

What exactly is an information system? What areits people, organization, and technologycomponents? How does it work?

How are information systems transformingbusiness and what is their relationship toglobalization?

Why are information systems so essential for running and managing a business today?

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How will a four-step method for business problemsolving help you solve information system-

related problems?

How will information systems affect businesscareers and what information systems skills and

knowledge are essential?

STUDENT LEARNING OBJECTIVES (Continued)

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 1 Business Information Systems in Your Career Chapter 1 Business Information Systems in Your Career

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What Is an Information System?Functions of an Information SystemDimensions of Information Systems

How Information Systems Are Transforming BusinessGlobalization Challenges and OpportunitiesThe Role of Information Systems in Business TodayThe Problem-Solving Approach

The Role of Critical Thinking in Problem SolvingHow Information Systems Will Affect BusinessCareers

ChCh 11: Outline: Outline

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Information technology: The hardware and softwarea business uses to achieve objectives

Information system:Interrelated components thatmanage information to:

Support decision making and control

Help with analysis, visualization, and product creation

Data: Streams of raw facts

Information: Data shaped into meaningful, useful form

What Is an Information System?What Is an Information System?

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Data and InformationData and Information

Raw data from a supermarket checkout counter can be processedand organized to produce meaningful information, such as thetotal unit sales or the total sales revenue for a specific store.

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Activities in an information system that produceinformation are:

Input

Processing

Output

Feedback

Sharp distinction between computer and computer

program vs. information system

What Is an Information System?What Is an Information System?

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Functions of an Information SystemFunctions of an Information System

An information system contains information about an organization andits surrounding environment.

Three basic activitiesinput, processing, and output produce theinformation organizations need.

Feedback is output returned to appropriate people or activities in theorganization to evaluate and refine the input. This is the most importantprocess for information systems.

Environmental actors, such as customers, suppliers, competitors,stockholders, and regulatory agencies, interact with the organizationand its information systems.

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Unfortunately, the hardware (input and output) and the software(processing) receive the most attention. With those two alone, you havecomputer literacy. But if you dont use the "persware" side of the triangleto complete the feedback loop, you dont accomplish much.

Add the persware angle with good feedback and you have the

beginnings of information literacy. You also create formal systemsstructured to collect, store, process, disseminate, and use data in well-designed and well-built information systems.

So, computer literacy focuses mostly on knowledge of IT

Information systems literacy includes behavioral and technical approach

Management information systems (MIS)Management information systems (MIS) focuses on information systemsliteracy and issues surrounding development, use, impact of information

systems used by managers and employees

Functions of an Information SystemFunctions of an Information System

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Three dimensions of informationsystems

1. Organizations

2. People

3. Technology

Using information systems effectively requires anunderstanding of the organization, people, andinformation technology shaping the systems.

Dimensions of Information SystemsDimensions of Information Systems

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1. OrganizationsCoordinate work through structured hierarchy andbusiness processes

Business processes: Related tasks and behaviors for accomplishing workE.g. Fulfilling an order May be informal or include formal rules

Culture embedded in information systemsE.g. UPSs (for shipping) concern with placing service tocustomer first


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2. PeopleInformation systems require skilled people to build,

maintain, and use them

Employee attitudes affect ability to use systemsproductivelyRole of managers

Perceive business challenges

Set organizational strategyAllocate human and financial resourcesCreative work: New products, services


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3. TechnologyIT Infrastructure: Foundation or platform thatinformation systems built on

Computer hardwareComputer softwareData management technologyNetworking and telecommunications technology

Internet and Web, extranets, intranetsVoice, video communications


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Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 1 Business Information Systems in Your Career Chapter 1 Business Information Systems in Your Career

NBA Teams Make a Slam Dunk with Information Technology

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Globalization Challenges and Opportunities:Globalization Challenges and Opportunities:A Flattened WorldA Flattened World

Internet and global communications has greatlyreduced economic and cultural advantages of developed countries

Drastic reduction of costs of operating and transacting onglobal scale

Competition for jobs, markets, resources, ideas

Requires new understandings of skills, markets,opportunities

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Businesses invest in IT to achieve six importantbusiness objectives

1. Operational excellence

2. New products, services, and business models3. Customer and supplier intimacy

4. Improved decision making

5. Competitive advantage6. Survival

When firms cannot achieve business objectives,

Information systems often present solutions

The Role of Information Systems in Business TodayThe Role of Information Systems in Business Today

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1. Operational Excellence:1. Operational Excellence:

Improved efficiency results in higher profits

Information systems and technologies helpimprove efficiency and productivity

E.g. Wal-Mart:

Most efficient store in world as result of digital links

between suppliers and storesPower of combining information systems and bestbusiness practices to achieve operational efficiencyand $348 billion in sales in 2007


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Information systems and technologies enable firmsto create new products, services, and businessmodels

Business model: How a company produces,delivers, and sells its products and services

E.g. Audio industryDrastic changes in business models in recent years

Apple: Successful innovations iPod, etc.

2. New products, services, and business models:2. New products, services, and business models:


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2. New products, services, and business models:2. New products, services, and business models:

With its stunning multitouchdisplay, full Internet browsing,digital camera, and portableaudio player, Apples iPhone set a new standard for mobile

phones. Other Apple productshave transformed the audio and entertainment industries.


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Customers who are served well become repeatcustomers who purchase more

Mandarin Oriental hotelUses IT to foster an intimate relationship with itscustomers, keeping track of preferences, etc.

Close relationships with suppliers result in lower

costsJCPenney

IT to enhance relationship with supplier

in Hong Kong

33. Customer and supplier intimacy:. Customer and supplier intimacy:


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A companys bottom line (net profit) can be hurt bymanagers being swamped with data that is not timelyor helpful, forcing them to use guesswork

Real-time data improves ability of managers to makedecisions

Verizon: Web-based digital dashboard to updatemanagers with real-time data on customer complaints,network performance, and line outages

44. Improved decision making:. Improved decision making:


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InformationBuilders digital dashboard deliverscomprehensiveand accurateinformation for decision making.The graphical overview of key

performance

indicators helpsmanagersquickly spot areas that need attention.

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Often results from achieving previous businessobjectives

Advantages over competitors:

Charging less for superior products, better performance, and better response to suppliers andcustomers

Toyota : Uses TPS (Toyota Production System) toachieve high levels of efficiency and quality

5. Competitive advantage:5. Competitive advantage:


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In a Toyota factory,the assembly line

produces a superior product in less time,using less inventory,and having fewer defects than thecompetition. Toyotauses information

systems to monitor inventory levels and manage productionscheduling.


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Businesses may need to invest in informationsystems out of necessity

Keeping up with competitorsCitibanks introduction of ATMs

Federal and state regulations and reportingrequirements

Toxic Substances Control Act

66. Survival:. Survival:


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Typical organizational problems

Outdated business processes

Unsupportive culture and attitudes

Political in-fighting

Turbulent business environment, change

Complexity of task

Inadequate resources

A Model of the ProblemA Model of the Problem- -Solving ProcessSolving Process

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Typical technology problems

Insufficient or aging hardware

Outdated software

Inadequate database capacity

Insufficient telecommunications capacity

Incompatibility of old systems with new technology

Rapid technological change


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Typical people problems

Lack of employee training

Difficulties of evaluating performance

Legal and regulatory compliance

Work environment, ergonomics ( human engineering )

Poor or indecisive management

Lack of employee support and participation


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Problem solving: 4-step process

1. Problem identification

2. Solution design

3. Choice

4. Implementation


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1. Problem identification includes:

Agreement that problem exists

Definition of problem

Causes of problem

What can be done given resources of firm


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2. Solution design

Often many possible solutions

Consider as many as possible to understand range

of solutions

3. Choice: Factors include:

Cost

Feasibility given resources and skills

Length of time needed to implement solution


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4. ImplementationBuilding or purchasing solutionTesting solution, employee trainingChange management

Measurement of outcomesFeedback, evaluation of solution

Problem solving is a continuous process, not asingle event

Sometimes chosen solution doesnt work or needs adjustment


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Problem Solving Is a Continuous Four Problem Solving Is a Continuous Four- -StepStepProcessProcess

During implementationand thereafter, theoutcome must becontinually measuredand the informationabout how well the

solution is working isfed back to the problemsolvers.

In this way, theidentification of theproblem can change

over time, solutions canbe changed, and newchoices made, all basedon experience.

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Without critical thinking, easy to jump to conclusions,misjudge a problem and waste resources

Four elements of critical thinking:1. Maintaining doubt and suspending judgment

2. Being aware of different perspectives

Including technology, organization, and people perspectives3. Testing alternatives and letting experience guide

4. Being aware of organizational and personal limitations

The Role of Critical Thinking in Problem SolvingThe Role of Critical Thinking in Problem Solving

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Accounting:

Accountants increasingly rely on information systems tosummarize transactions, create financial records, organize data,and perform financial analysis

Skills:

IT, software used in auditing, accounting functions

System and network security issues

Enterprise systems for financial reporting

How Information Systems Will Affect BusinessHow Information Systems Will Affect BusinessCareersCareers

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Finance:

Relationship between information systems and financialmanagement and services is so strong that many advisefinance majors to have minor in information systems

Skills:

IT, software used by financial managers and financialservice firms

New technologies for financial transactions, tradingEnterprise systems for financial reporting


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Marketing:

No field has undergone more technology-driven change inthe past five years than marketing and advertising

Skills:

Internet, marketing database systems and impact onmarketing activities

Enterprise systems for product management, customer relationship management


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Operations management in services andmanufacturing:

Industrial production managers, administrative service managers,and operations analysts

Skills:

Hardware and software platforms for operations management

How enterprise systems for production management, supplier management, sales force management, customer relationship

management are used to achieve efficient operations and meetother goals


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Information systems:

Fast changing and dynamic profession because informationtechnologies are among most important tools for achievingbusiness firms key objectives

Domestic and offshore outsourcing

Skills:

Uses of new and emerging hardware and software toachieve six business objectives

An ability to take a leadership role in the design andimplementation of new information systems


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Success in todays job market requires a broad set of skills

Job candidates must have problem-solving skills aswell as technical skills so that they can carry specifictasks

The service sector will account for 95 % of the new jobs that are created or open up by 2012

Some Final RemarksSome Final Remarks

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C o n g r a t u l a t i o n s !C o n g r a t u l a t i o n s !

End Of Chapter End Of Chapter 1 1

C o n g r a t u l a t i o n s !C o n g r a t u l a t i o n s !

End Of Chapter End Of Chapter 1 1

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