managment information system
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This document provides an overview of business information systems, describing their purpose in problem solving, decision making, and data processing. It defines key terms like data, information, and systems, and explains the different types of information systems used in businesses, including transaction processing, supply chain management, customer relationship management, and geographic information systems. It also outlines various careers in information technology and the roles of chief information officer and other IT professionals.
managment information system
- 1. Business Information Systems: An Overview Management Information Systems, Fifth Edition by Effy Oz
- 2. 2 Objectives • Explain why information systems are essential to business • Describe how computers process data into useful information for problem solving and decision making • Identify the functions of different types of information systems in business • Describe careers in information technology • Identify major ethical and societal concerns created by widespread use of information technology
- 3. 3 The Purpose of Information Systems • Businesses use information systems – To make sound decisions – To solve problems • Problem is any undesirable situation • Decision arises when more than one solution to problem exists
- 4. 4 The Purpose of Information Systems (continued) • Problem solving and decision making require information • Keys to success in business are – Gathering correct information – Storing information – Using information
- 5. 5 Data, Information, and Information Systems • “Data”, “information” and “system” are commonly used terms • Important to understand their similarities and differences
- 6. 6 Data vs. Information • Data: a given or fact – Can be number, statement, or picture • Information: facts or conclusions that have meaning within context – Composed of data that is manipulated
- 7. 7 Data Manipulation • Data is manipulated to make useful information • Survey is common method of collecting data • Raw data is hard to read • Information is more useful to business than data
- 8. 8 Generating Information • A process is manipulation of data • Process usually produces information • Process may produce more data • A piece of information in one context may be considered data in another context
- 9. 9 Generating Information (continued) Figure 1.1: Input-process-output
- 10. 10 Information in Context • Not all information is useful • Useful information is – Relevant – Complete – Accurate
- 11. 11 Information in Context (continued) • Useful information is – Current – Obtained economically (in business)
- 12. 12 Information in Context (continued) Figure 1.2: Characteristics of useful information
- 13. 13 What Is a System? • System: array of components that work together to achieve goal or goals • System – Accepts input – Processes input – Produces output
- 14. 14 What is a system? (continued) • System may have multiple goals • System may contain subsystems • Subsystems have sub-goals that meet main goal • Subsystems transfer output to other subsystems
- 15. 15 What is a system? (continued) • Closed system: has no connections with other systems • Open system: interfaces and interacts with other systems – Often a subsystem of a bigger system • Information system: processes data and produces information
- 16. 16 Information and Managers • Systems thinking: thinking of an organization in terms of subsystems • Database: collection of electronic records • Information systems automate exchange among subsystems • Information map: network of information systems • Information technology: technologies that facilitate construction and maintenance of information systems
- 17. 17 The Benefits of Human-Computer Synergy • Humans are relatively slow and make mistakes • Computers cannot make decisions • Synergy: combining resources to produce greater output
- 18. 18 The Benefits of Human-Computer Synergy (Continued) Figure 1.4: Qualities of humans and computers that contribute to synergy
- 19. 19 Information Systems in Organizations • Computer-based Information system: system with computer at center • Certain trends have made information systems important in business • Organizations lag behind if they do not use information systems
- 20. 20 Components of information systems Figure 1.5: Components of an information system
- 21. 21 The Four Stages of Processing • Input: collect and introduce data to system – Transaction: a business event, usually entered as input • Data processing: perform calculations on input • Output: what is produced by the information system • Storage: vast amounts of data stored on optical discs
- 22. 22 Computer Equipment for Information Systems • Input devices: receive input • Computer: process data • Output: displays information • Storage devices: store data • Network devices: transfer data
- 23. 23 Computer Equipment for Information Systems (continued) Figure 1.6: Input, process, output, storage, and networking devices
- 24. 24 From Recording Transactions to Providing Expertise: Types of Information Systems • Many types of information systems • Capabilities of applications have been combined and merged • Management Information System: supports planning, control, and making decisions
- 25. 25 Transaction Processing Systems • Most widely used type of system • Records data collected at point where organization interacts with other parties • Encompasses cash registers, ATMs and purchase order systems
- 26. 26 Supply Chain Management Systems • Supply chain: sequence of activities involved in producing products – Activities include marketing, purchasing raw materials, manufacturing, shipping, billing, collecti on, and after-sale services
- 27. 27 Customer Relationship Management Systems • Customer relationship management: managing relations with customers – Used in combination with telephones to provide customer service – Often linked to Web applications that track online transactions
- 28. 28 Business Intelligence Systems • Business Intelligence: gather data to help organization compete – Often contains statistical models – Access large pools of data • Data warehouse: large database that usually store transactional records
- 29. 29 Decision Support and Expert Systems • Decision support system: supports decision- making – Relies on models to produce tables – Extrapolates data to predict outcomes • Expert system: supports knowledge-intensive decision-making – Uses artificial intelligence
- 30. 30 Geographic Information Systems • Geographic information system: ties data to physical locations • Represents data on a map in different formats • May reflect demographic information in addition to geographic • May use information from GPS satellites
- 32. 32 Information Systems in Business Functions • Functional business area: services within a company that support main business – Includes accounting, finance, marketing, and human resources – Part of a larger enterprise system
- 33. 33 Accounting • Information systems help record transactions • Produce periodic statements • Create required reports for law • Create supplemental reports for managers
- 34. 34 Finance • Finance systems facilitate financial planning and business transactions • Tasks include organizing budgets, managing cash flow, analyzing investments, and making decisions
- 35. 35 Marketing • Pinpoint likely customers and promote products • Marketing information systems analyze demand for products in regions and demographic groups – Identify trends in demand for products/services • Web provides opportunity to collect marketing data
- 36. 36 Human Resources • Human resource management systems aid record-keeping – Must keep accurate records – Aids recruiting, selection, placement, and reward analysis • Performance evaluation systems provide grading utilities
- 37. 37 Web Empowered Enterprises • E-commerce: Buying and selling goods and services through Internet • Internet is a vast network of computers connected globally • Web has a profound impact on information systems
- 38. 38 Careers in Information Systems • Information technology professionals are increasingly in demand • Networking, system analyst, software engineering, and database administrator jobs are increasing in demand
- 39. 39 Systems Analyst • System analyst: designs and updates information systems • Involves analyzing system requirements, documenting development efforts, and providing specifications for programmers • Requires communication and presentation skills
- 40. 40 Database Administrator • Database administrator: responsible for databases – Develops and acquires database applications – Must protect privacy of customers and employees – Responsible for securing the database
- 41. 41 Network Administrator • Network administrator: acquires, implements, manages, maintains, trou bleshoots networks • Implements security – Firewalls – Access codes
- 42. 42 Webmaster • Webmaster: creates and maintains Web site • Designs and codes the page • Demand for Webmasters grows as more businesses use Web
- 43. 43 Chief Security Officer • Chief security officer: supervises security of information system • Position exists due to growing threat to information security • Reports to chief information officer
- 44. 44 Chief Information Officer and Chief Technology Officer • Chief information officer: responsible for all aspects of information system – Often the vice president • Chief technology officer: has similar duties as CIO
- 45. 45 Chief Information Officer and Chief Technology Officer (continued) Figure 1.7: Traits of a successful CIO
- 46. 46 Summary • Computer-based information systems pervade almost every aspect of our lives • A system is a set of components that work together to achieve a common goal • Subsystem: a system performs a limited task that produces an end result, which must be combined with other products from other systems to reach an ultimate goal • Data processing has four stages
- 47. 47 Summary (continued) • Any IS that helps in management is a management information system (MIS) • Many different types of MIS • Enterprise application systems (SCM or ERP) tie together different functional areas of a business • ISs are used in accounting, finance, marketing, and human resources
- 48. 48 Summary (continued) • The job prospects for IT professionals are bright • IT has created societal concerns