MISY 200 Presentation 1 PDF

SLIDES PREPARED BY Unknown PRESENTER Dr. Ilya Bystrov COLLEGE / CENTRE CoB PROGRAM Multiple SEMESTER Fall 2021/2022 MISY 200 Presentation 1 1 Course Outcomes (From Course Specificatio...

SLIDES PREPARED BY Unknown PRESENTER Dr. Ilya Bystrov COLLEGE / CENTRE CoB PROGRAM Multiple SEMESTER Fall 2021/2022 MISY 200 Presentation 1 1 Course Outcomes (From Course Specifications) A1. Demonstrate an understanding of the role of information systems and its effect on business and globalization. A2.Demonstrate an understanding on the different types of IS and its impact on organization and society. B1. Apply MIS principles and practices in businesses for effective decision making. B2.Comprehend the stages and technology drivers of IT infrastructure evolution. C1. Analyze the ethical, social, and political issues are raised by information systems. C2.Choose appropriate tools and technologies for accessing information from databases to improve business performance and decision making. D1. Work effectively as an individual and team player. D2.Communicate and present results/information effectively. 2  MISY 200 MANAGEMENT INFORMATION SYSTEMS Topic 1 IS in Business Today  Learning Objectives ▪ What is MIS ▪ Understanding the effects of information systems on business and their relationship to globalisation.  Globalisation: reduction of economic and cultural advantages of developed countries, increased number of companies with operations in multiple countries worldwide, and increased reliance on imports and exports of goods (and jobs) ▪ Explain why information systems are essential in business today. ▪ Define an information system and describe its management, organization, and technology 4 © Prentice Hall 2011  Learning Objectives ▪ Describe the different academic disciplines used to study information systems and explain how each contributes to our understanding of them. 5 © Prentice Hall 2011  What Is MIS ▪ Management Information Systems (MIS) is the study of people, technology, organizations and the relationships among them. ▪ Management information system, or MIS, broadly refers to a computer- based system that provides managers with the tools to organize, evaluate and efficiently manage departments within an organization 6  Information Systems ▪ Why Do People Need Information?  Individuals - Entertainment and enlightenment  Businesses - Decision making, problem solving and control  Data, Information, and Systems ▪ Data vs. Information  Data ▪ A “given,” or fact; a number, a statement, or a picture ▪ Represents something in the real world ▪ The raw materials in the production of information  Information ▪ Data that have meaning within a context ▪ Data in relationships ▪ Data after manipulation  Data, Information, and Systems ▪ Data Manipulation  Example: customer survey ▪ Reading through data collected from a customer survey with questions in various categories would be time-consuming and not very helpful. ▪ When manipulated, the surveys may provide useful information.  Data, Information, and Systems ▪ Generating Information  Computer-based ISs take data as raw material, process it, and produce information as output. Figure 1.1 Input-process-output  The Role of Information Systems in Business Today ▪ How information systems are transforming business  Increase in wireless technology use, Web sites  Cloud computing, mobile digital platform allow more distributed work, decision-making, and collaboration  More wireless cell phone accounts were opened in 2009 than telephone land lines installed. Cell phones, BlackBerrys, iPhones, e-mail, and online conferencing over the Internet have all become essential tools of business. ▪ Globalization opportunities  Internet has drastically reduced costs of operating on global scale. © Prentice Hall 2011  Information Technology Capital Investment IT capital investment, defined as hardware, software, and communications equipment, grew from 32 percent to 52 percent of all invested capital between 1980 and 2009. Investment in 2010 was over one trillion dollars - over 550 billion dollars of that was invested in IT © Prentice Hall 2011  Information Technology Capital Investment ▪ Other kinds of capital investment are machinery and buildings.  Why would firms increase IT investment faster than machinery and buildings?  The answer is capital substitution: the price of IT has been falling, while the price of machine and buildings has been growing. ▪ Firms would rather invest in IT than machinery or buildings because the returns on the investment are greater. 13  The Role of Information Systems in Business Today ▪ In the emerging, fully digital firm  Significant business relationships are digitally enabled and mediated  Core business processes are accomplished through digital networks  Key corporate assets are managed digitally 14 © Prentice Hall 2011  Influence of IT By June 2010, more than 99 million businesses worldwide had dot-com Internet sites registered (Verisign, 2010). Today, 162 million Americans shop online, and 133 million have purchased online. Every day about 41 million Americans go online to research a product or service. As newspaper readership continues to decline, more than 78 million people receive their news online. About 39 million people watch a video online everyday, 66 million read a blog, and 16 million15post to blogs. ▪ Social networking site Facebook attracted 134 million monthly visitors in 2010 in the United States, and over 500 million worldwide. ▪ Businesses are starting to use social networking tools to connect their employees, customers, and managers worldwide. ▪ Many Fortune 500 companies now have Facebook pages. 16  Whats new in MIS ▪ Cloud computing platform emerges as a major business : A flexible collection of computers on the Internet begins to perform area of innovation tasks traditionally performed on corporate computers. ▪ Growth in software as a service (SaaS) Major business applications are now delivered online as an Internet service rather than as boxed software or custom systems. 17  Whats new in MIS ▪ A mobile digital platform emerges to compete with the PC as a Apple opens its iPhone software to developers, and then opens an business system Applications Store on iTunes where business users can download hundreds of applications to support collaboration, location-based services, and communication with colleagues. ▪ Managers routinely use so-called “Web 2.0” technologies like social networking, collaboration tools, and wikis in order to make better, faster decisions 18  The Role of Information Systems in Business Today ▪ Digital firms offer greater flexibility in organization and management  Time shifting (any time), space shifting (any place)  by allowing business to be conducted at any time (time shifting) and any place (space shifting), digital firms are ideally suited for global operations which take place in remote locations and different time zones 19 © Prentice Hall 2011  Whats Time shifting and Space Shifting ▪ Time shifting refers to business being conducted continuously, 24/7, rather than in narrow “work day” time bands of 9 A.M. to 5 P.M. ▪ Space shifting means that work takes place in a global workshop, as well as within national boundaries. Work is accomplished physically wherever in the world it is best accomplished 20  The Role of Information Systems in Business Today ▪ Growing interdependence between ability to use IT and ability to implement corporate strategies and achieve corporate goals ▪ Business firms invest heavily in information systems to achieve six strategic business objectives: 1. Operational excellence 2. New products, services, and business models 3. Customer and supplier intimacy 4. Improved decision making 5. Competitive advantage 6. Survival 21 © Prentice Hall 2011  The Role of Information Systems in Business Today ▪ Operational excellence:  Improvement of efficiency to attain higher profitability  Information systems, technology an important tool in achieving greater efficiency and productivity 22 © Prentice Hall 2011  The Interdependence Between Organizations and Information Technology In contemporary systems there is a growing interdependence between a firm’s information systems and its business capabilities. Changes in strategy, rules, and business processes increasingly require changes in hardware, software, databases, and telecommunications. Often, what the organization would like to do depends on what its systems will permit it to do.  The Role of Information Systems in Business Today ▪ New products, services, and business models:  Business model: describes how company produces, delivers, and sells product or service to create wealth  Information systems and technology a major enabling tool for new products, services, business models ▪ Examples: Apple’s iPod, iTunes, iPhone, iPad, Google’s Android OS, and Netflix 24 © Prentice Hall 2011  The Role of Information Systems in Business Today ▪ Customer and supplier intimacy:  Serving customers well leads to customers returning, which raises revenues and profits ▪ Example: High-end hotels that use computers to track customer preferences and use to monitor and customize environment  Serving customers raises revenues and profits  Better communication with suppliers lowers costs 25  The Role of Information Systems in Business Today ▪ Improved decision making  Without accurate information: ▪ Managers must use forecasts, best guesses, luck ▪ Leads to:  Overproduction, underproduction of goods and services  Misallocation of resources  Poor response times ▪ Poor outcomes raise costs, lose customers ▪ More accurate data leads to better decisions 26 © Prentice Hall 2011  The Role of Information Systems in Business Today ▪ Achieving any of the previous four business objectives represents the achievement of a competitive advantage  Operational excellence:  New products, services, and business models:  Customer and supplier intimacy:  Improved decision making 27 © Prentice Hall 2011  The Role of Information Systems in Business Today ▪ Competitive advantage  Delivering better performance  Charging less for superior products  Responding to customers and suppliers in real time  Examples: Apple, Walmart, UPS 28 © Prentice Hall 2011  The Role of Information Systems in Business Today ▪ Survival  Information technologies as necessity of business  May be: ▪ Industry-level changes, e.g. Citibank’s introduction of ATMs ▪ Governmental regulations requiring record- keeping  Sarbanes-Oxley Act - requires public firms keep all data, including e-mail, on record for 5 years 29 © Prentice Hall 2011  Perspectives on Information Systems ▪ Information system: ▪ An information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization. ▪ Information vs. data  Data are streams of raw facts  Information is data shaped into meaningful form 30 © Prentice Hall 2011  Data and Information 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.  Perspectives on Information Systems ▪ 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 32 © Prentice Hall 2011  Perspectives on Information Systems ▪ 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 33 © Prentice Hall 2011  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. © Prentice Hall 2011  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. © Prentice Hall 2011  Organisations ▪ Information systems are an integral part of organizations. The key elements of an organization are its people, structure, business processes, politics, and culture. ▪ Organizations have a structure that is composed of different levels and specialties. Their structures reveal a clear-cut division of labor. Authority and responsibility in a business firm are organized as a hierarchy, or a pyramid structure. The upper levels of the hierarchy consist of managerial, professional, and technical employees, whereas the lower levels consist of operational personnel. 36  Perspectives on Information Systems ▪ Organizational dimension of information systems  Hierarchy of authority, responsibility ▪ Senior management ▪ Middle management ▪ Operational management ▪ Knowledge workers ▪ Data workers ▪ Production or service workers 37 © Prentice Hall 2011  Organisation ▪ Senior management makes long-range strategic decisions about products and services as well as ensures financial performance of the firm. ▪ Middle management carries out the programs and plans of senior management ▪ operational management is responsible for monitoring the daily activities of the business. 38 ▪ Knowledge workers, such as engineers, scientists, or architects, design products or services and create new knowledge for the firm, ▪ Data workers, such as secretaries or clerks, assist with scheduling and communications at all levels of the firm. Production or service workers actually produce the product and deliver the service 39  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.  Management ▪ Management’s job is to make sense out of the many situations faced by organizations, make decisions, and formulate action plans to solve organizational problems. Managers perceive business challenges in the environment; they set the organizational strategy for responding to those challenges; and they allocate the human and financial resources to coordinate the work and achieve success. 41  Technology ▪ Technology dimension of information systems  Computer hardware and software  Data management technology  Networking and telecommunications technology ▪ Intranets private networks used by corporations ▪ Extranets are directed at customers and suppliers ▪ Internet connects millions of different networks across the globe  IT infrastructure: provides platform that system is built on 42 © Prentice Hall 2011  Information Technology ▪ Computer hardware is the physical equipment used for input, processing, and output activities in an information system. It consists of the following: computers of various sizes and shapes (including mobile handheld devices); various input, output, and storage devices; and telecommunications devices that link computers together. 43  Information Technology ▪ Computer software consists of the detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system. ▪ Networking and telecommunications technology, consisting of both physical devices and software, links the various pieces of hardware and transfers data from one physical location to another. 44  Contemporary Approaches to Information Systems The study of information systems deals with issues and insights contributed from technical and behavioral disciplines. 45 © Prentice Hall 2011  Contemporary Approaches to Information Systems ▪ Technical approach  Emphasizes mathematically based models  Computer science, management science, operations research ▪ Behavioral approach  Behavioral issues (strategic business integration, implementation, etc.)  Psychology, economics, sociology 46 © Prentice Hall 2011  Contemporary Approaches to Information Systems ▪ Management Information Systems  Combines computer science, management science, operations research and practical orientation with behavioral issues ▪ Four main actors  Suppliers of hardware and software  Business firms  Managers and employees  Firm’s environment (legal, social, cultural context) 47 © Prentice Hall 2011  Contemporary Approaches to Information Systems Sociotechnical view: Optimal organizational performance achieved by jointly optimizing both social and technical systems used in production Helps avoid purely technological approach 48 © Prentice Hall 2011  A Sociotechnical Perspective on Information Systems In a sociotechnical perspective, the performance of a system is optimized when both the technology and the organization mutually adjust to one another until a satisfactory fit is obtained. References Management Information Systems, 12/E, Ken Laudon and Jane Laudon, Prentice Hall, ISBN-10: 0132142856 or ISBN-13: 9780132142854 Extra reading: B. Shannaq, I.R. Al Shamsi and S. Nabhan,” Management Information System for Predicting Quantity Martials”, TEM Journal. Vol. 8.no. 2,(2019),pp. 1143-1149. http://www.temjournal.com/content/84/TEMJournalNovember2019_1143_1149.pdf 50 Thank You 51 51