MIS Chap 1 Notes PDF

## Bs-commerce 8th Sems: Management Information System ### Where is investment done more in the world? IT industry which not only means computers but also business and managements consultany and BPR (business process reengineering) it all is done to integrate themselves with the industry. - Techn...

## Bs-commerce 8th Sems: Management Information System ### Where is investment done more in the world? IT industry which not only means computers but also business and managements consultany and BPR (business process reengineering) it all is done to integrate themselves with the industry. - Technology have revolutionized itself, Mobile is also a computer it has alarm, calculator, newspapers TV, calender. ### What is new in MIS? It is the fastest growing trend in the world. ### Innovation A continuing stream of information technology innovations is transforming the traditional business world. These innovations are enabling entrepreneurs and innovative firms to create new products and services, develop new business models such as netflix, expanding ecommerce such as on Facebook, Youtube and disrupting traditional marketing industry; including management changes like new smartphones, tablets, wifi these all transform day to day conduct of business. ### Cloud Computing It is delivery of computing services including servers, storage databases, networking, software, analytics and intelligence over the internet. For Eg: Gmail is cloud we use their storage, the much use the much pay. ### Types of Clouds - Private: A cloud infrastructure dedicated to a single organization - Public: A cloud service provided over internet by third party providers, accessible to multiple customers. - Hybrid: A combination of private and public cloud infrastructure, enabling data and apps to be shared. ### Big Data Big data refers to large, diverse sets of structured, unstructured and semi-structured data that grow at ever increasing rate. The term encompasses the volume of information, the velocity at which it is created and collected & the variety of data points being covered commonly known as "Three V's" of big data. - Data is raw form unprocessed - Information is processed, meaningfull 1) Velocity 2) Versatility ### Mobile Digital Platform A mobile digital platform is a software infrastructure or ecosystem that gives a framework for distribution, development and usage of digital service. (Conducting business from mobile such as connecting with suppliers, customers etc decreasing operational cost) ### Analytics/Business Analytics The process of collecting, organizing analyzing and interpreting data to gain insights that can be used to make business decisions. ### Does Information Technology Matters? Yes! Research shows that top 100 company when apply 7% of their income on IT to develop employees so it gives times more efficiency. ### In IT innovation Heading - **New Business Models**: From VCR to streaming & online business eervices. E-commerce is changing in concept of delivery of goods. - **Management Changes**: Now management is connected through system. In past have to physically go to office to get reports now everything on oneclick. - **Change of Firms/Organization**: - From hierarchical structure to Freestructure - Defined roles, top to bottom. - Management by objectives. - Authorized upper-level - Collaboration, Employees. - Can give ideas and take part in decision making. ### Globalizaton: One of the main reason of this change in institution, innovation is globalization- Worldwide network, open trade by internet, exchange of skills was with the help of technology. Suchas in 1492 columbus said that world is round than. Industry revolution happens globalization occurred. So in 2005 Friedman said world is Flat mean with no disparities. ### How Globalization is a challenge? Yes Globalization is a challenge beacuse it increases competition berause multiple countries are involved. As global world means connected with all so different time zone so different jobtime. New skill set required because you have to give service world widely. ### Emerging Digital Firm A digital firm is one in which nearly all of organization's significant/strategic business relationships with customers. Suppliers, employees are digitally enabled and mediated. Core business process are accomplished through digital networks such as ho depart process now hiring digitally. ### Characteristics of Digital Firms: - **Time Shifting**: There is no time limit in digital firms as no time boundary. Business being conducted continuously. - **Space Shifting**: No requirement of having a physical existence or no geographical restriction. ### Strategic Business Advantages/Objectives OF Information System In 20th century business should have office, furniture etc. but in 21st century businesses most important thing is IS. There is growing independence between ability to use information technobgy and ability to implement corporate strategies and achieve corporate goals. From invest heavily in information systems to achieve six strategic business objective as follow: 1) **Operational Excellence**: - Bohatipsain Improvement of efficiency to attain higher profit-ability. And Is, technology an important tool in achieving greater efficiency and productivity. - Example: Walmarot's retail link system links suppliers to stores when a customer picks product from shelf and buy it sends msg to supplier and they refill the shelf. 2) **New Products, Services and Business Models** - Business models: describes how company produces, delivers, and sells product or service to create wealth. Information systems, technology is a main tool enabling newproducts, services, business models. - Example: Apple's ipad, Google's Android OS, Noflix 3) **Customer And Supplier Intimacy:** - Serving customers well leads them to return, increasing revenue and profits. - Example: High-end hotels that use computer to track customers preferences and than customize their room environments according to it. - Intimacy with suppliers allows them provide vital inputs which Lopes costs. - Example: JC Penney's Is which links sales records to contract manufacturer. - Customer relention is more expensive so business work on it. 4) **Improved Decision Making:** Without accurate information manager forecasts, do guesses result in overproduction, misallocation of resources, poor response times. Which lead to raise cost and lose customers. With help of IS everything is maintained on systems, cost, reports etc. 5) **Competitive Advantage:** It means delivering better performance, charging less for superior products, responding to customers and suppliers in real time. The point that differentiates and give you upper-advantage is competitive edge/advantage for business. 6) **Survival:** Information technologies are necessity of business. Businesses which change with change theis survival is easy. Such as industry level change e.g. citibank introduce ATMs or governmental regulations requiring record keeping e.g. Toxic Substances Control Act. ### Information System Is is a set of interrelated components that collect, retrieve process, store and distribute information to support decision making and control in an organization. In addition, to support decision making, coordination and control, Is helps managers and workers to analyze problem, visualize complex subjects and create new products. - IT and Is are not equal. It only include hardware, software to achieve its business objectives. Is is more than this. ### Information VS Data - Information is meaningful data that have been shaped into a form that is meaningful and useful to human beings. - Data are streams of raw facts representing events occuring in organizations or physical enviorment before they have been organized and arranged into form that people can understand and use. Raw data cannot be use for decision making information can be used. ### Activities OF IS Three activities of information systems produce the information that organizations need to make decisions, control operations, analyze problems and create new products. Those activities are: - **Input:** Captures or collects raw data from within organization or from its external environment. - **Processing:** Converts this raw input into a meaningful form. - **Output:** Transfers the processed information to the people who will use it. - **Feedback:** Output that is returned to appropriate members of organization to help them evaluate or correct input stage. (to compare, to improve or to further process) - External information required from suppliers, customers regulatory authorities, stakeholders and competitors. Input → Processing, Classifying, Arrange, evaluate → Output Feedback Regulatory Authorities Environment/ Organization Information Systems Stockholders Competitions ### Computers/Computer program Vs Information System Computers and software are technical foundation and tools similar to the material and tools used to build a house. ### Components OF IS 1) **People**: People are required for operation of all information system. These people include end users and Is specialists. Endusers are people who use Is and Is specialists are those who develop or operate Is. 2) **Hardware**: All physical devices and materials used in information processing. 3) **Software**: The application program used to control hardware components. 4) **Data**: Data, the raw facts and figures that are unorganized that are later processed to generate information. 5) **Network**: Networks refer to telecommunication networies which facilitate the flow of information in organization. It include internet- (public platform accessible to anyone with internet connection) intranet (private internal network for a specific organization) extranet (merge both concepts by providing access ter outsiders to system, data belong to an organization) ### Dimensions OF IS 1) **Organizations**: Information System are integral part of organization. Organization structure is composed of different levels and sperialities. which include senior management, middle management, operational management, knowledge workers, data workers and production or service workers. - Organization have separation of business functions/departments consist of sales, marketing, productions Finance and accounts, HR. - Organization have unique business proccesses including rules. - Organization have unique business culture which are set of assumptions, values, swarot doing things. - Different levels and specialities cause conflicts which are basis for organizational politics. 2) **Management**: - Managers set organizational strategy for responding to business challenges. In addition, managers must act creatively for creation of new products and services, occasionally recreating the organization. 3) **Technology**: - IT is main tool managers use to cope with change. It include computer hardware, software, data management technology, networking and telecommunications technology (networks, internet, intranets, extranets, world wide web). It also include IT infrastructure which provide a platform that system is built on. ### It Isn't Just Technology: Business Perspection On IS: - Is is instrument for creating value. Investments in IT will result in superior returns such as productivity revenue increases and superior long term strategic positioning. ### Business Information Value Chain: Raw data acquired and transformed through stages that add value to the information. information system determined inpart by extent to which it leads to better decisions, greater efficiency, and higher profits. Business processes Firm profitabilit - Supply Chain Enterprise customer knowledgem - Position - Data collection into business - Firm profitabilit - storage systems - Position - Transtosmatton Dissemination - Firm profitabilit - Planning Gordinating Controlling Modelling and Decision making - Position - Business Value - Infomation Processing Activities - Management Actvities ### Business Perspective: - Calls attention to organizational and managerial nature of information systems. - Investing in IT does not guarantee good returns. - There's considerable varication in the returns firms receive from systems investments. - Factors: Adopting right business model, investing in complementary asselt, (organizationd and management capital). ### Contemporary Approaches TO IS: 1) **Technical Approach**: The technical approach to information system emphasizes mathematically based models to study information systems as well as the physical technology and formal capabilities of these systems. The disciplines that contribute to the technical approach are computer science, management science, and operations research. (method of computations) (math techniques improve parameters) 2) **Behavioral Approach**: Information systems field is concerned with behavioral issues that arise in development and long term maintaince of information-tion systems. Issues such as strategic business integration, design implementation, utilization). 3) **Sociotechnical Systems**: Study of management information system asase to focus on computer based information systems in business and government agencies. MIS combines the work of computer science, management science, operational research and practical orientation with behavioral issues. - Four MainActors: Suppliers of hardware and software, Business firms, Managers and employees, Firm's environment (legal, social, cultural context) - Sociotechnical View: Optimal organizational performance achieved by jointly optimizing both social and technical systems used in production. It helps to avoid purely technological approach. (Don't mislead or have bad impact on society)