management information systems chapter one foundations of information systems in business md. golam...

Management Information Systems

Chapter One

Foundations of Information Systems in Business

Md. Golam KibriaLecturer, Southeast University

Behind the Scene Technology innovations are continuing transform the business

world. These innovations enable entrepreneurs and innovative traditional firms to create to

1. new products and services

2. develop new business models

3. destroy entire industries

4. build new business processes

5. transform the day-to-day conduct of business.

For instance, the emergence of email has changed the older method of communication such as letter. Consequently, as managers, most of us will work for firms that are intensively using Information Systems (IS) and making large investment in information systems; therefore, we need to know about Information Systems and its facets.

Information System

Information system is any organized combination of people, hardware, software, communications networks, and data resources that stores, retrieves, transforms, and disseminates information in an organization.

Information Technology

Information Technology is the integration of computers, communications equipment, and other technology used in information systems.

The technology uses to generate information is called Information Technology ( IT)

Information Systems vs. Information Technology

Information Systems (IS) – all components and resources necessary to deliver information and information processing functions to the organization

Information Technology (IT) – various hardware components necessary for the system to operate

Conceptual Framework of IS Knowledge

Conceptual Framework of IS Knowledge

Foundation Concepts: Fundamental behavioral, technical, business, and managerial concepts about the components and roles of information systems.

Information Technologies: Major concepts, development, and management issues in Information technology-that is, hardware, software, networks, data management, internet.

Conceptual Framework of IS Knowledge

Business Application: The major uses of information systems for the operations, management, competitive advantages of a business.

Development Processes: How business professionals and information specialists plan, develop, and implement information systems to meet business opportunities.

Conceptual Framework of IS Knowledge

Management Challenges: The challenges of effectively and ethically managing information technology at the end user, enterprise, global levels of a business.

Roles of IS in Business

Roles of IS in Business

Support business process and operations: As a consumer, you regularly encounter information systems that support the business processes and operations at the many retail stores where you shop. Most retail store now use computer based information systems to help them record customer purchase, keep track of inventory, pay employees, evaluate sales trend.

Roles of IS in Business

Support Decision Making: Information systems also help store manager and other business professionals make better decision.

Support Competitive Advantage: Gaining a strategic advantage over competitors requires innovative applications of information technologies.

Ethical Challenges of IT

Functions of an Information System?

Input Function accepts the input data from outside the system.

Storage Function retains input data and retrieves stored data.

Processing Function calculates and in other ways manipulates the input and stored data.

Output Function produces results of processing for use outside the system.

Feedback Function is the output that is returned to appropriate members of the organization to help them evaluate or correct the input state.

Functions of an Information System

Components of an Information System?

Components Hardware - Equipment such as computers Software - Instructions for the equipment Stored Data - Facts stored in the system Personnel - People who operate the system Procedures for the people to follow

Components of an Information System?

Hardware: The first component of an information system is hardware, which consists of the computers, communication equipment and other devices used in a system.

Software: Software consists of instructions that tell hardware what to do. Computers and computer controlled hardware, such as communications equipment, cannot function without software; they must have instructions to tell them what to do.

Components of an Information System?

Stored Data: The stored data component of an information system consists of all data that is kept in computers in the system and that is used by the software of the system.

Personnel: An information system does not operate by itself; people are needed to make it run. People have to supply input to the system, receive output information from the system, operate the hardware in the system, and run the software that is part of the system.

Components of an Information System?

Procedures: The final components of an information systems consists of procedures, which are instructions that tell people how to use and operate the system.

IS Resources & Activities

Information System Resources

People: People are the essential ingredient for the successful operation of all information systems. These people resources includes– end users and IS specialists. End users: End users are people who use an

information systems or information it produces. IS specialists: IS specialists are people who

develop and operate information systems.

Information System Resources

Hardware – physical devices and materials used in information processing including computer systems, peripherals, and media.

Computer systems Computer peripherals

Information System Resources

Software: Software includes all sets of information processing instructions.

System software, Application software Procedures.

Information Systems Resources (con’t)

Data – facts or observations about physical phenomena or business transactions

Network – communications media and network infrastructure

Network Resources

Communications Media – examples include twisted-pair wire, coaxial and fiber-optic cables, microwave, cellular, and satellite wireless technologies

Network Infrastructure – examples include communications processors such as modems and internetwork processors, and communications control software such as network operating systems and Internet browser packages.

Data vs. Information

Data – raw facts or observations typically about physical phenomena or business transactions.

Information – data that have been converted into a meaningful and useful context for specific end users.

Data Versus Information Data is a representation of a fact, a

number, a word, an image, a picture or a sound. For example, the number 10 is data; it might represent image, a picture, or a sound.

Information is data that is meaningful or useful to someone. For example, the statement “ There are 10 books left in inventory”.

Data versus Information

1200100

WestCharles Mann

79154 TM Shoes

Monthly Sales Report for West Region

Sales Rep: Charles MannEmp No. 79154Item Qty Sold PriceTM Shoes 1200 $100

Data Vs. Information

Information for one person may be data for another.

Data for one person may be information for another.

Benefits & Pitfalls of Information Systems

Benefits Pitfalls

1. IS can perform calculations or process paperwork much faster than people.

1. By automating activities that were previously performed by people, IS may eliminate job.

2. IS can help companies learn more about the purchase patterns and preferences of their customers.

2. IS may allow organization to collect personal information about people that violate their privacy.

3. IS provide new efficiencies through services such as ATMs, IP telephony, Computer controlled Airplanes and Air Terminals

3. IS are used in so may aspects of everyday life that system outages can cause shutdown of businesses or transportation services, paralyzing communities.

4. IS have made possible new medical advances in surgery, radiology and patient monitoring.

4. Heavy users of IS may suffer repetitive stress injury, technostress and other health problems.

5. The internet distributes information instantly to millions of people across the world.

5. The internet can be used to distribute illegal copies of software, books, articles, and other intellectual property.

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