introduction to management information systems
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ITE106: Management Information Systems. Thossaporn Thossansin , BS.c , MS.c. Introduction to Management Information Systems. ITE106: Management Information Systems. Lecture: Wednesday 09:00 PM - 11:45 PM Thossaporn Thossansin , Bs.c , Ms.c email: [email protected]. - PowerPoint PPT PresentationTRANSCRIPT
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Introduction to Management Introduction to Management Information SystemsInformation Systems
Introduction to Management Introduction to Management Information SystemsInformation Systems
Thossaporn Thossansin, Thossaporn Thossansin, BS.c, MS.cBS.c, MS.c
ITE106: Management Information SystemsITE106: Management Information Systems
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Lecture: Wednesday09:00 PM - 11:45 PM
Thossaporn Thossansin, Bs.c, Ms.c
email: [email protected]
ITE106: Management Information Systems
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ตำ��ร�หลั�ก :Laudon, Kenneth C, Jane Price, Essentials of Management Information Systems, January 2010 (ISBN: 978-0-136-11444-4)
ตำ��ร�ประกอบ :• 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
Course Books
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The grade received in the course will be based on:
•Participation/Homework (30%)•Mid-Term Exam (30%)•Final Exam (40%)
Grading
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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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Figure 1.2: The Process of Transforming Data into Information
Data, Information, and Knowledge
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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– 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– 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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• 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)
What is MIS?
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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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Managers and professionals spend considerable time in meetings. Providingsupport for teamwork and group decisions is an important issue in MIS.
Meetings
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12 3
Making Decisions
• Methodology v. Ad Hoc Decisions
• Decision Process– Collect Data– Identify Problems & Opportunities– Make Choices
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Traditional Management
CEO
VPFinance
VPMarketing
VPAccounting
VPHRM
VPMIS
Layers of middle managers
Customers
Commands
Analyze data
Condensed reports
Collectdata
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Decentralization
Management TeamCEO
FinanceTeam
MarketingTeam
AccountingTeam
HRMTeam
SalesTeam
Franchise
Strategy
Methodology/Rules
Customers
CorporateDatabase
&Network
VPFin
VPMrkt
VPAcct
VPHRM
VPMIS
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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 Implications for Technology
Specialization 1.Increased demand for technical skills2.Specialized MIS tools3.Increased communication
Methodology & Franchises 1.Reduction of middle management2.Increased data sharing3.Increased analysis by top management4.Computer support for rules5.Re-engineering
Mergers 1.Four or five big firms dominate most industries2.Need for communication3.Strategic ties to customers and suppliers
Decentralization & Small Business 1.Communication needs2.Lower cost of management tasks3.Low maintenance technology
Temporary Workers 1.Managing through rules2.Finding and evaluating workers3.Coordination and control4.Personal advancement through technology5.Security
Internationalization 1.Communication2.Product design3.System development and programming4.Sales and marketing
Service Orientation 1.Management jobs are information jobs2.Customer service requires better information3.Speed
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US Employment Patterns
US Employment Patterns
0
20
40
60
80
100
120
140
160
1920 1930 1940 1950 1960 1970 1980 1990 2000
mill
ion
s o
f w
ork
ers
Service
Management
Manufacturing
Farm
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International Web Browsers
Web Users
English 35%
Chinese 13%Japanese 9%
Spanish 8%
German 7%
Europe-Other 4%
Korean 4%
French 3%
Portuguese 3%
Italian 3%
Russian 2%
Scandanavian 2%
Asia-Other 2%
Arabic 1%
Dutch 2%
Malay 2%
Source: http://www.glreach.com/globstats/
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MIS Organization
Business Operations
TacticalManagement
Strategic
Mgt.
EIS
ESD
SSTr
ansa
ctio
n
Proc
ess
Con
trol
ERP
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Operations, Tactics, Strategy
Sector Operations Tactics Strategy
Production • Machine settings• Worker schedules• Maintenance sch.
• Rearrange work area• Schedule new products• Change inventory method
• New factory• New products• New industry
Accounting • Categorize assets• Assign expenses• Produce reports
• Inventory valuation• Depreciation method• Finance short/long term
• New GL system• Debt vs. equity• International taxes
Marketing • Reward salespeople• Survey customers• Monitor promotions
• Determine pricing• Promotional campaigns• Select marketing media
• Monitor competitors• New products• New markets
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Decision Levels
Decision Level
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 employees, ordering supplies.
Transactions, accounting, human 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 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)
D ata
In fo rm ation D ec is ion P rocesses
D ec is ion s
G oa ls /O b jec tives
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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 Feedback
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ManufacturingProcess
Input ofRaw Materials
Output ofFinished Products
Environment
Other Systems
Control byManagement
ControlSignals
ControlSignals
FeedbackSignals
FeedbackSignals
System Boundary
A Manufacturing System: Generic Components
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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
• 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
SubsystemSystem BoundaryInterfaceOpen, Adaptive Systems
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Input, Processing, Output, Feedback/Control
INPUTSGathering and capturing raw data
INPUTSGathering and capturing raw data
PROCESSINGConverting or transforming data into useful outputs
PROCESSINGConverting or transforming data into useful outputs
OUTPUTSProducing useful information, usually in the form of documents.
OUTPUTSProducing useful information, usually in the form of documents.
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
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
Data Processing
ManagementReporting
DecisionSupport
Strategic &End User
Electronic Commerce
1950-1960 1960-1970 1970-1980 1980-1990 1990-2000
ElectronicData Processing- TPS
ManagementInformationSystems
DecisionSupportSystems- Ad hoc Reports
End UserComputingExec Info SysExpert SystemsSIS
ElectronicBusiness & Commerce-InternetworkedE-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 decision-
making process• Strategic and End User Support: 1980s -
– EUC, Executive Information Systems, Expert Systems, Strategic Information Systems
• Electronic Business and E-Commerce: 1990s -
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Manufacturingand
Production
Engineering &Research
Accounting,Finance, andManagement
Suppliers and Other Business Partners
Procurement, Distribution, and Logistics
Advertising Sales Customer Service
Consumer and Business Customers
Company
Boundary
Intranets
The Internet
Extranets
Ext
ran
ets
The Electronic Business
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• 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?
Ethical Dimensions of IT