Introduction of MIS(Lecture 2).pdf

Introduction: Perspectives on Information Systems Main learning Objectives Define an information system and describe its management, organization, and technology components. Explain the business perspective of information systems. Define complementary assets and explain how they ensure that informat...

Introduction: Perspectives on Information Systems Main learning Objectives Define an information system and describe its management, organization, and technology components. Explain the business perspective of information systems. Define complementary assets and explain how they ensure that information systems provide genuine value to an organization. 2 What is an Information System ? Information system: – – – – Set of interrelated components Collect, process, store, and distribute information Support decision making, coordination, and control Help managers analyze problems, visualize complex subjects, and create new products Information vs. data – Data are streams of raw facts – Information is data shaped into meaningful form 3 Data and Information Figure 1.3 4 Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory. Functions of an Information System Three activities of information systems produce information organizations need 1. Input: Captures raw data from organization or external environment 2. Processing: Converts raw data into meaningful form 3. Output: Transfers processed information to people or activities that use it 5 Functions of an Information System Feedback: – Output returned to appropriate members of organization to help evaluate or correct input stage Computer/Computer program vs. information system – Computers and software are technical foundation and tools, similar to the material and tools used to build a house 6 Functions of an Information System Functions of an Information System An information system contains information about an organization and its surrounding environment. Three basic activities—input, processing, and output— produce the information organizations need. Feedback is output returned to appropriate people or activities in the organization to evaluate and refine the input. Environmental actors, such as customers, suppliers, competitors, stockholders, and regulatory agencies, interact with the organization and its information systems. Figure 1.4 7 Dimensions of an Information System Information Systems Are More Than Computers Using information systems effectively requires an understanding of the organization, management, and information technology shaping the systems. An information system creates value for the firm as an organizational and management solution to challenges posed by the environment. Figure 1.5 8 Dimensions of an Information System Organizational dimension of information systems – Hierarchy of authority, responsibility Senior management Middle management Operational management Knowledge workers Data workers Production or service workers 9 Dimensions of an Information System Levels in a Firm Business organizations are hierarchies consisting of three principal levels: senior management, middle management, and operational management. Information systems serve each of these levels. Scientists and knowledge workers often work with middle management. Figure 1.6 10 Dimensions of an Information System Organizational dimension of information systems (cont.) – Separation of business functions Sales and marketing Human resources Finance and accounting Manufacturing and production – Unique business processes – Unique business culture – Organizational politics 11 Dimensions of an Information System Management dimension of information systems – Managers set organizational strategy for responding to business challenges – In addition, managers must act creatively: Creation of new products and services Occasionally re-creating the organization 12 Dimensions of an Information System Technology dimension of information systems – Computer hardware and software – Data management technology – Networking and telecommunications technology Networks, the Internet, intranets and extranets, World Wide Web – IT infrastructure: provides platform that system is built on 13 A business perspective Business perspective on information systems: – Information system is instrument for creating value – Investments in information technology will result in superior returns: Productivity increases Revenue increases Superior long-term strategic positioning 14 A business perspective Investing in information technology does not guarantee good returns Considerable variation in the returns firms receive from systems investments Factors: – Adopting the right business model – Investing in complementary assets (organizational and management capital) 15 A business perspective Complementary assets: – Assets required to derive value from a primary investment – Firms supporting technology investments with investment in complementary assets receive superior returns – E.g.: invest in technology and the people to make it work properly 16 A business perspective Complementary assets include: – Organizational assets, e.g. Appropriate business model Efficient business processes – Managerial assets, e.g. Incentives for management innovation Teamwork and collaborative work environments – Social assets, e.g. The Internet and telecommunications infrastructure Technology standards 17