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     The question of why we need to study The question of why we need to study

    information systems and information technologyinformation systems and information technology

    ??Information systems have become as integrated into our daily business

    activities as accounting, finance, operations management, marketing,

    human resource management, or any other major business function.

     Information systems and technologies are vital components of successful

    businesses and organizations some would say they are businessessentials.

    Information technology can help all kinds of businesses to improve the

    efficiency and effectiveness of their business processes, managerial

    decision making, and workgroup collaboration, which strengthens theircompetitive positions in rapidly changing marketplaces.

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    INFORMATION

    TECNO!O"#

    Hardware

    Software

    Databases

    etworks

    !ther related

    components

     are used to build

    I"!#$%&I!S'S&($S

    )ayroll

    System

    Inventory

    System

    $arketing

    System

    *ustomer

    Service

    System

     IT Vs ISIT Vs IS

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    What Do MIS Professionals Do in an Organization?What Do MIS Professionals Do in an Organization?

     %nalyze, design, implement and administer Information &echnology+I&

    Deliver I& to businesses

     %pply I& to business goals

    -nderstand I& capabilities to provide valueadded business solutions

    *ommunicate with customers and managers to understand their I&

    needs

    !ver /01 of $IS professionals work outside of I& Industries

    +Information &echnology %ssociation of %merica study

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    MIS ProfessionalsMIS Professionals

     %re business oriented, problemsolvers, analyzers, innovators, andcommunicators.

    2ork across silos and have a wholesome, horizontal understanding of the

    organization.

     %re technically competent

     %re e3cellent *ommunicators

    2ork in many industries4 Healthcare, banking, broadcasting, education, high

    tech, music, media, gaming, government, retail, surveillance just about

    every industry today depends on $IS

    5ridge the I& staff and business clients, relying on strong communication,

    business understanding, and technical skills

    Sometimes perform technical functions like networking, security, ordevelopment

    Sometimes deal with less technical functions such as I& audit, business

    analysis, or consulting

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    Top 10 Reasons to Major in MISTop 10 Reasons to Major in MIS

    )lentiful and wellpaid jobs High demand for I& workers and High Salaries #ewarding 6 find solutions, help people and businesses with their I& needs

    7ersatile and $obile 6 work anywhere, in any industry

    *reative and innovative 6 D! &HI8S9 *#(%&( S&-""9

    Solve real problems in business:build bridges between technology,

    businesses, and people 8rowth and leadership 6 move ;uickly up the ladder to leadership positions

    "un 6 dynamic, fast, never boring

    *ommunicate with many people, work in team, build connections

    5roaden perspective 6 $IS professionals are uni;uely capable to think

    sideways, horizontally, across business functions and silos.

    (njoy working with greatest and latest technologies

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      ..

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    MIS 10 Edition JamesMIS 10 Edition James

    !"rien!"rien

    $anagement *hallenges. &he challenges of effectively

    and ethically managing information technology at the end

    user, enterprise, and global levels of a business. &hus,*hapter

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    MIS 10 Edition JamesMIS 10 Edition James

    !"rien!"rien

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      ..

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     Three #undamentals $y Three #undamentals $y

    !"rien!"rien

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      33rdrd Support of Business Processes andSupport of Business Processes and

    Operations.Operations.

    As a consumer !ou re"ularl! encounter informations!stems t#at support t#e $usiness processes andoperations at the many retail stores where you sho%. #ore&am%le' most retail stores now use com%uter($asedinformation systems to hel% their emplo!ees recordcustomer purc#ases %eep trac% of in&entor! pa!emplo!ees $u! ne' merc#andise and e&aluatesales trends. Store o%erations would grind to a haltwithout the su%%ort of such information systems.

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     (nd  Support of Business )ecision Ma%in".

    Information systems also hel% store managers andother $usiness %rofessionals ma)e $etter decisions.#or e&am%le' decisions a$out '#at lines ofmerc#andise need to $e added or discontinuedand what )ind of in*estments they require are

    ty%ically made after an analysis %ro*ided $ycom%uter($ased information systems. This functionnot only su%%orts the decision ma)ing of storemana"ers $u!ers and ot#ers $ut also #elpst#em loo% for 'a!s to "ain an ad&anta"e o&er

    ot#er retailers in the com%etition for customers.

    +am,an(-

    "a)ra Eid(-

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    11stst Support of Strate"ies forSupport of Strate"ies for

    *ompetiti&e Ad&anta"e*ompetiti&e Ad&anta"e..

    aining a strate"ic ad&anta"e o&er competitorsre+uires t#e inno&ati&e application of informationtec#nolo"ies. #or e&am%le' store management mightma)e a decision to install touch(screen )ios)s in all stores'with lin)s to the e(commerce /e$ site for onlines#oppin". This oering might attract new customers and

    $uild customer loyalty $ecause of the ease of sho%%ing and$uying merchandise %ro*ided $y such information systems. Thus' strategic information systems can hel% %ro*ide%roducts and ser*ices that gi*e a $usiness a com%arati*ead*antage o*er its com%etitors

    ome deli*ery free

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      MTMT

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     Transaction processing systems. )rocess data resulting from business

    transactions, update operational databases, and produce business documents.

    Examples: sales and inventory processing and accounting systems.

    $rocess contro% systems. $onitor and control industrial processes. (3amples4petroleum refining, power generation, and steel production systems.

    Enterprise co%%a&oration systems. Support team, workgroup, and enterprise

    communications and collaborations. Examples: e-mail, chat, and videoconferencing

    groupware systems.

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     Management information systems' )rovide information in the form of prespecifiedreports and displays to support business decision making. Examples: sales analysis,

     production performance, and cost trend reporting systems.

    (ecision support systems. )rovide interactive ad hoc support for the decision

    making processe Examples: product pricing, profitability forecasting, and risk analysissystems. s of managers and other business professionals.

    E)ecutive information systems. )rovide critical information from $IS, DSS, and

    other sources tailored to the information needs of e3ecutives. Examples: systems for

    easy access to analyses of business performance, actions of competitors, and

    economic developments to support strategic planning .

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    E)pert systems'  ?nowledgebased systems that provide e3pert advice and act as

    e3pert consultants to users. Examples: credit application advisor, process monitor,

    and diagnostic maintenance systems.

    *no+%edge management systems'  ?nowledgebased systems that support the

    creation, organization, and dissemination of business knowledge within theenterprise. Examples: intranet access to best business practices, sales proposal

    strategies, and customer problem resolution systems.

    trategic information systems'  Support operations or management processes

    that provide a firm with strategic products, services, and capabilities for competitive

    advantage. Examples: online stock trading, shipment tracking, and e-commerce

    Web systems.

    Functiona% &usiness systems. Support a variety of operational and managerialapplications of the basic business functions of a company. Examples: information

    systems that support applications in accounting, finance, marketing, operations

    management, and human resource management .

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    Management InformationManagement Information

    SystemsSystems  Terminology 2onfusion

    ◦ MIS 4 the study of information technology in $usinesssettin"s, Ali"nment in order to "ain competiti&e andstrate"ic ad&anta"e

    ◦ "ut' MIS is also term to refer to class of systems used to supportoperational and tactical decision ma%in"

    -MIS/

    MIS is a disci%line and a %rofession that $rings information and

    communication technologies to $usinesses and society.

    "y a%%lying information and communications technologies and systems' MISsol*es real $usiness %ro$lems and gi*es competiti&e ad&anta"e to rms.

    MIS focuses on the conce%ts and tools necessary for anal!in" desi"nin"plannin" de&elopin" and mana"in" or"aniational informationresources.

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    Ma5or challenges and o%%ortunities that $usinessmanagers face in managing information systems andtechnologies to meet $usiness goals. #ig 1.16 $rien

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    5y now you should be able to see that the success of an information system

    should not be measured only by its efficiency in terms of minimi-ing

    costs, time, and the use of information resources. Success should also

    be measured by the effectiveness of the information technology in

    supporting an organization@s &usiness strategies, enabling its business

    processes, enhancing its organizational structures and culture, and

    increasing the customer and business value of the enterprise. It is

    important to realize, however, that information techno%ogy and

    information systems can &e mismanaged and misapp%ied in such a

    +ay that I performance pro&%ems create &oth techno%ogica% and&usiness fai%ures. Aet@s look at an e3ample of what happens after these

    failures occur, as well as what can be done to avoid them.

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    Management Information SystemsManagement Information Systems

    7MIS87MIS8

    Management information system 7MIS8 9n MIS %ro*ides managers with information and

    su%%ort for eecti*e decision ma)ing' and %ro*idesfeed$ac) on daily o%erations

    ut%ut' or re%orts' are usually generated through

    accumulation of transaction %rocessing data Each MIS is an integrated collection of su$systems'

    which are ty%ically organi,ed along functional lineswithin an organi,ation

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    *orporate

    databases

    of 

    internaldata

    Databases

    of 

    e3ternaldata

    Databases

    of 

    valid

    transactions

    !perational

    databases

    Transaction

     processing

    systems

    Management

    information

    systems

    Decision

    support

    systems

    Executive

    support

    systems

    Expert

    systems

    5usinesstransactions

    Input and

    error list

    Drilldown reports

    (3ception reports

    Demand reports

    ?eyindicator reports

    Scheduled

    reports

    (mployees

    *orporate

    intranet

     %pplicationdatabases

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    Outputs of a Management Information System

    Scheduled reports )roduced periodically, or on a schedule +daily, weekly, monthly

    ?eyindicator report

    Summarizes the previous day@s critical activities

    &ypically available at the beginning of each day

    Demand report 8ives certain information at a manager@s re;uest

    (3ception report

     %utomatically produced when a situation is unusual or re;uiresmanagement action

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    Management Information ystems for Competitive Advantage

    )rovides support to managers as they work to achieve

    corporate goals

    (nables managers to compare results to establishedcompany goals and identify problem areas and opportunities

    for improvement

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    #inancial MIS: in terms o#inancial MIS: in terms o

    multinationalsmultinationals;ro*ides 3nancial information to

    all 3nancial managers within anorgani,ation.

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    "inancial statements

    -ses and management

    of funds

    "inancial statisticsfor control

    !perational

    databases

    Databases

    of valid

    transactions

    for each

    &)S

    &ransaction

    processing

    systems

    5usiness

    transactions

    5usinesstransactions

    Internet or 

    Extranet

    Internet or 

    Extranet

    "inancial

    $IS

    5usiness

    transactions

    Databases of 

    e3ternal data

    Databases of 

    internal data

    "inancial

    DSS

    "inancial

    (S

    "inancial

    applications

    databases

    *ustomers,

    Suppliers

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    Buality control reports

    )rocess control reports

    CI& reports!perational

    databases

    Databases

    of valid

    transactions

    for each

    &)S

    &ransaction

    processing

    systems

    5usiness

    transactions

    5usinesstransactions

    Internet or 

    Extranet

    Internet or 

    Extranet

    $anufacturing

    $IS

    5usiness

    transactions

    Databases of 

    e3ternal data

    Databases of 

    internal data

    $anufacturing

    DSS

    $anufacturing

    (S

    $anufacturing

    applications

    databases

    *ustomers,

    Suppliers

    $#) reports

    )roduction schedule

    *%D output  Manufacturing

    Design and (ngineering

    $aster )roduction Scheduling

    Inventory *ontrol

    $aterials )lanning

    $anufacturing and )rocess

    *ontrol

    Buality *ontrol

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    Sales by customer 

    Sales by salesperson

    Sales by product!perational

    databases

    Databases

    of valid

    transactions

    for each

    &)S

    &ransaction

    processing

    systems

    5usiness

    transactions

    $arketing

    $IS

    Databases of 

    e3ternal data

    Databases of 

    internal data

    $anufacturing

    DSS

    $anufacturing

    (S

    $arketing

    applications

    databases

    )ricing report

    &otal service calls

    *ustomer satisfaction

    $arketing $IS Supports managerial activities in product development,

    distribution, pricing decisions, and promotional effectiveness

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    5enefit reports

    Salary surveys

    Scheduling reports!perational

    databases

    Databases

    of valid

    transactions

    for each

    &)S

    &ransaction

    processing

    systems

    5usiness

    transactions

    Human

    #esource

    $IS

    Databases of 

    e3ternal data

    Databases of 

    internal data

    $anufacturing

    DSS

    $anufacturing

    (S

    Human

    resource

    applications

    databases

    &raining test scores

    Cob applicant profiles

    eeds and planning

    reports

    H# $IS 4 *oncerned with all of the activities related to employees

    and potential employees of the organization

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     Foundation Concepts: The Components of Information SystemsFoundation Concepts: The Components of Information Systems(O’brien)(O’brien)

    System concepts underlie all business processes, as well as our understandingof information systems and technologies. &hat@s why we need to discuss how

    generic system concepts apply to business firms and the components and

    activities of information systems. -nderstanding system concepts will help you

    understand many other concepts in the technology, applications, development,

    and management of information systems that we cover in this te3t. "or

    e3ample, system concepts help us understand4

    E Techno%ogy'  *omputer networks are systems of information

    processing components that use a variety of hardware, software, data

    management, and telecommunications network technologies.

    E App%ications'  (business and ecommerce applications involve

    interconnected business information systems.

    E (eve%opment'  Developing ways to use information technology inbusiness includes designing the basic components of information

    systems.

    E Management'  $anaging information technology emphasizes the

    ;uality, strategic business value, and security of an organization@s

    information systems.

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     /hat is System ?/hat is System ?

     % system is defined as a set of interrelated components, with a

    clearly defined boundary, working together to achieve a common

    set of objectives by accepting inputs and producing outputs in an

    organized transformation process.

     Input involves capturing and assembling elements that enter thesystem to be processed. "or e3ample, raw materials, energy, data,

    and human effort must be secured and organized for processing.

    $rocessing involves transformation processes that convert input

    into output. (3amples are manufacturing processes, the human

    breathing process, or mathematical calculations.

    Output involves transferring elements that have been producedby a transformation process to their ultimate destination. "or

    e3ample, finished products, human services, and management

    information must be transmitted to their human users.

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    $IS F

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    $IS F

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    $IS F

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    $IS F

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    $IS F

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    $IS F

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    $IS F

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    $IS F

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      IS #unctionsIS #unctions

      The successful management of information systems and technologiespresents major challenges to business managers and professionals. Thus,the information systems function represents:

    • A major functional area of business equally as important to businesssuccess as the functions of accounting, finance, operationsmanagement, marketing, and human resource management.

    • A n important contributor to operational efficiency, employee productivity and

    morale, and customer service and satisfaction. The I !unction• A recogni"ed source of value to the firm.

    • A major source of information and support needed to promote effectivedecision ma#ing by managers and business professionas.

    • A vital part in developing competitive products and services that give anorgani"ation a strategic ad!antage in the goba marketpace.

    • A #ey component of the resources, infrastructure, and capabilities of today$snet%or#ed business enterprises.

    • A strategic resource.

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     %s a business professional, you should be able to recognizethe fundamental components of information systems you

    encounter in the real world. &his demand means that you

    should be able to identify4

    E &he people, hardware, software, data, and network

    resources they use.

    E &he types of information products they produce.E &he way they perform input, processing, output, storage,

    and control activities.

    &his kind of understanding will help you be a better user,

    developer, and manager of information systems. %s we have

    pointed out in this chapter, this is important to your future

    success as a manager, entrepreneur, business professional, or

    modern business technologist.

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      %oters%oters