Introduction to Management Information Systems

1. ITE106: Management Information Systems ThossapornThossansin, BS.c, MS.c Introduction to Management Information Systems

2. ITE106: Management Information Systems Lecture: Wednesday 09:00 PM - 11:45 PM ThossapornThossansin, Bs.c, Ms.c email: thossaporn.piu@gmail.com

3. Course Books • ตำราหลัก : • Laudon, Kenneth C, Jane Price, Essentials of Management Information Systems, January 2010 (ISBN: 978-0-136-11444-4) • ตำราประกอบ : • 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

4. Grading The grade received in the course will be based on: • Participation/Homework (30%) • Mid-Term Exam (30%) • Final Exam (40%)

5. 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 Information Concepts:Data, Information, and Knowledge

6. Data, Information, and Knowledge Figure 1.2: The Process of Transforming Data into Information

7. The Characteristics of Valuable Information Table 1.2: Characteristics of Valuable Information

8. The Characteristics of Valuable Information (continued) Table 1.2: Characteristics of Valuable Information (continued)

9. What is an Information System? Figure 1.3: The Components of any Information System

10. 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 Computer-Based Information Systems

11. 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 Computer-Based Information Systems

12. 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 BusinessInformation Systems

13. 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 Electronic and Mobile Commerce

14. 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 Transaction Processing Systems

15. 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 Additional Business Information Systems

16. 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)

17. MIS affects all areas of business Manufacturing Accounting & Finance Human resources Marketing Top management Performance evaluations—expectations Why is MIS Important?

18. 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 What are e-Commerce and e-Business?

19. 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 Several Terms

20. Meetings Managers and professionals spend considerable time in meetings. Providing support for teamwork and group decisions is an important issue in MIS.

21. Methodology v. Ad Hoc Decisions Decision Process Collect Data Identify Problems & Opportunities Make Choices Making Decisions 2 3 1

22. Collect data Traditional Management CEO Condensed reports Commands VP Finance VP Marketing VP Accounting VP HRM VP MIS Analyze data Layers of middle managers Customers

23. Corporate Database & Network Decentralization Management Team CEO VP Fin VP Mrkt VP Acct VP HRM VP MIS Strategy Finance Team Marketing Team Accounting Team HRM Team Methodology/Rules Sales Team Franchise Customers

24. 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 Business Trends

25. Business Trend Summary

26. US Employment Patterns

27. International Web Browsers Source: http://www.glreach.com/globstats/

28. MIS Organization EIS Strategic ERP Mgt. ES DSS Tactical Management Transaction Process Control Business Operations

29. Operations, Tactics, Strategy

30. Decision Levels

31. Information Technology (IT) • Computer Technology (Hardware and Software) • Processing and Storing Information • Communication Technology • Transmitting information

33. 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 “Better” Tangible Outputs

34. 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 Intangible Outputs

35. The MIS Concept Intangible Outputs (achieving desired objectives)

36. 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 System Concepts

37. 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 System Examples Boundary Feedback

38. A Manufacturing System: Generic Components Environment Control by Management Feedback Signals Feedback Signals Control Signals Control Signals Input of Raw Materials Output of Finished Products Manufacturing Process System Boundary Other Systems

39. 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 Systems: Some Examples

40. Open Closed Adaptive Nonadaptive System Classifications and Characteristics Subsystem System Boundary Interface Open, Adaptive Systems

41. INPUTSGathering and capturing raw data PROCESSINGConverting or transforming data into useful outputs OUTPUTSProducing useful information, usually in the form of documents. Feedback/Control Input, Processing, Output, Feedback/Control Output that is used to make changes to input or processing activities

42. 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 Procedures

43. 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 System Performance Standards:Efficiency and Effectiveness

44. 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 What You Need to Know

45. Support of Strategic Advantage Support of Managerial Decision Making Support of Business Operations Major Roles of Information Systems

46. 1970-1980 1950-1960 1960-1970 1980-1990 1990-2000 Strategic & End User Management Reporting Data Processing Electronic Commerce Decision Support Electronic Data Processing - TPS Management Information Systems Decision Support Systems - Ad hoc Reports End User Computing Exec Info Sys Expert Systems SIS Electronic Business & Commerce -Internetworked E-Business & Commerce History of the Role of IS

47. 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 - Trends in ISs

48. The Internet Company Boundary Suppliers and Other Business Partners Procurement, Distribution, and Logistics Extranets Engineering & Research Accounting, Finance, and Management Manufacturing and Production Intranets Advertising Sales Customer Service Extranets Consumer and Business Customers The Electronic Business

49. 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?