Database Management System (DBMS)

• Every organization faces different data resource management challenges.
• Effective information usage depends on proper data storage, organization, and delivery.
• The ability to manage data as an important resource relies on computer hardware and software capabilities.

Database Management System (DBMS)

• Software that efficiently collects and manages data within an organization.
• Serves as an interface between data resources and application programs.
• Transferring to a database environment from a traditional file one requires understanding of managerial, organizational and technological requirements.

Organizing Data

• Organizing data can be difficult but necessary for providing accurate information.
• Organizations gain a competitive edge using useful, well-organized data.

Accessing Records

• There are two types of accessible files for accessing database records:
  • Sequential File Organization: Typically used for processing the same information.
  • Direct/Random File Organization: Used with magnetic disks.
• Index Sequential Access Method:
  • Records are stored in a file using the primary key.
  • An index value is generated for each primary key and mapped with the record.
• Direct File Access Method: Uses a primary key with mathematical calculations to determine a record's location.

Integration of Information

• Coordination requires a variety of information from many resources.
• Data integration is the first step, especially in companies that use teams.
• Diversity in hardware and software creates difficulties when integrating information.
• Many software packages each use unique formats to store data files, exacerbating the problem.
• To integrate different types of information, find software that can either read different file types or use a common format.

Role of Enterprise Resource Planning

• Enterprise Resource Planning (ERP) integrates business processes like manufacturing, finance, sales, marketing, and HR into a single software system.
• The field is dominated by large and expensive software packages from companies such as SAP, Peoplesoft, and Oracle.
• ERP handles all financial accounting systems.
• ERP emphasizes purchasing, human resource management, and investment management.
• The system uses databases, processes, and rules to provide up-to-the-minute data on major financial issues.
• The primary strength is handling data for large companies operating in an international environment.

Information Systems, Organizations, and Business Processes

• An organization is defined as a stable, formal social structure that takes resources from the environment and processes them to produce outputs.
• Organizations are more stable than an informal group in terms of longevity and routines.
• Information systems (IS) consist of data, hardware, software, telecommunications, people, and procedures.
• Data is the input that the system uses to produce information.
  • Hardware refers to the computer and its peripherals.
  • Software consists of instructions that tell the computer how to take data in, how to process, how to display information, and how to store data and information.
  • Telecommunications includes the hardware and software that enable fast transmission.
  • People include the information systems professionals and users who design, construct, operate, and maintain systems.
  • Procedures are rules for achieving ideal and secure operations in data processing, including prioritizing software application dispensation and security measures.

Business Process

• Refers to how work is organized, coordinated, and focused on producing a valuable product or service.
• Inefficient processes can be liabilities that impede organizational responsiveness and efficiency.
• Many business processes cross functional areas and require coordination across departments.
• Many business processes are tied to a specific functional area, for example:
  • Manufacturing and production: Assembling the product, checking for quality, and producing bills of materials.
  • Sales and marketing: Identifying customers, making them aware of the product, and selling it to them.
  • Finance and accounting: Paying creditors, creating financial statements, and managing cash accounts.
  • Human resources: Hiring employees, evaluating performance, and enrolling employees in benefits plans.

Management Information Systems (MIS)

• Aims to achieve broad information systems literacy, addressing behavioral and technical issues related to the development, use, and impact of IS.
• MIS is exciting due to continuous changes in technology, management, and business processes.
  • IT innovation transforms the business world with cloud computing, mobile digital platforms, Big Data, business analytics, and social networks.
  • New business models have emerged, such as online video streaming services like Netflix, Apple TV, and Amazon Prime Video.
  • E-commerce is expanding and reinventing itself, disrupting traditional marketing and media firms.
  • Management changes occur as increased availability and use of smartphones and tablets allow managers to be more in touch with remote employees.
• Firms and organizations are putting less emphasis on hierarchy and structure and more on employees in the 21st-century.

Information Technology in Organization

• Information Technology (IT) has become a vital part of every business, ranging from multi-national corporations to small businesses.
• The organizational structure of the IS function and the distribution of IS specialists are designed to meet the business's evolving strategies.

Information System and Strategy

• Strategy is described as the determination of the basic long-term goals and objectives of an enterprise and the adoption of courses of action and allocation of resources necessary for achieving these goals.

Information Systems and Business Strategy

• Leveraging technology in the value chain affects producing the product, getting it to the stores, and making the customer happy.
• Other examples are information system products and services.

Use of Systems for Competitive Advantage

• Using IS to beat the competition and increase the value of a product requires changing long standing processes and may fall on managers throughout the organization.