ICS321 Management Information Systems Dr. Kenneth Cosh Lecture 1

M.I.S. ICS321 3(3-0-6) credits. Dr. Kenneth Cosh Office: 314 Class Time: 14:00-15:30 – Mon/Wed Assessment: Midterm, Final, Case Study Presentation, Individual Report.

Course Description “A study of the structure of basic information and the design and development of management information systems within business and industrial environments. Students will explore the application of information technology as a management productivity tool and integrative use of application programs to improve productivity.”

Today’s Topic Foundation Concepts

What is M.I.S.? Management Information Systems or The Management of Information Systems “The study of information systems and their use in business and management” (Laudon) MIS is a term from the 1960’s, it is now often considered out of date.

Why study M.I.S.? For C.I.S. students; It’s a key application of materials from related courses. As a C.I.S. graduate it’s likely you will be dealing with computerised information systems within businesses. Most of the information systems we will be dealing with are ‘computer-based information systems’ (CBIS).

What is an Information System? “An information system can be any organised combination of people, hardware, software, communications networks, and data resources that collects, transforms and disseminates information in an organisation.” (O’Brien).

What is Information Technology? Technologies are ‘devices’ which can assist with the working of the information system; Paper and Pencil (Hardware) Word of Mouth (Communication Networks) Filing Cabinet (Data Resource) Mostly we will be interested in computer based technology.

What is a System? “Group of interrelated or interacting elements forming a unified whole.” (O’Brien) Physical Systems (Weather Systems, Solar Systems) Biological Systems (Human body) Educational Systems (Schools, Universities) Information Systems…

Systems Systems have 3 basic elements; Input: the ‘things’ which enter the system, (food, orbits, high / low pressure systems, data) Processing: transformation process to convert input into output, (breathing, mathematical calculations) Output: Transferring the transformed elements to their ultimate destination, (Physical movements, information) Input Processing Output

Feedback and Control The System becomes more useful when there is Feedback and Control; Feedback: data about system performance Control: monitoring and evaluating feedback to determine whether the system is moving towards achieving it’s goal and then adjusting where necessary. Input Feedback & Control Processing Output

System Example A Thermostat self-regulating Air Conditioning. Input: Current room temperature. Processing: Comparison with desired temperature Output: Either On or Off Feedback & Control: Ability of human user to adjust temperature.

Further System Concepts Sub-systems Systems rarely exist within a vacuum, they are normally part of some environment (or greater system). Interfacing Systems Often multiple systems share the same environment, in which case they often interract / have shared interfaces The output of one system could be the input of the next (stock control figures are passed as input to sales department). Adaptive Systems Some systems have the ability to change itself or it’s environment in order to survive.

Case Study UPS Competes Globally with Information Technology Laudon & Laudon p16.

Information Systems Collects data inputs, transforms them into information outputs and disseminates the information around an organisation. Remember O’Brien’s quote? “An information system can be any organised combination of people, hardware, software, communications networks, and data resources that collects, transforms and disseminates information in an organisation.” Information Systems are comprised of 5 major types of resource; People, Hardware, Software, Communication, Data

A Computer…for Dummies! Input Devices Keyboard, Mouse, Microphone, Scanner… Output Devices Monitor, Printer, Speaker… Processor CPU Storage Capabilities Main memory (RAM), Secondary memory (Hard Disk, CD’s etc.)

Information System Resources People Hardware Software Data Network (Communication)

People Resources End Users - the people who use the information systems. E.g. Customers, salespeople, engineers, clerks, accountants, all of us! IS Specialists - the people who develop, implement and maintain the information systems. E.g. software developers, analysts, support staff.

Hardware Resources Physical, Tangible devices & materials used in information processing. Machines - PC’s, monitors, printers etc. Media - disks, printouts, paper etc.

Software Resources Information Processing Instructions Programs (system, application software) OS, word processing, spreadsheets, databases, payroll etc. Procedures (Operating Instructions) Data Entry procedures, paycheck distribution procedures

Data Resources Databases Knowledge Bases Data vs Information? Data - Raw material resources Information - Processed data into meaningful product.

From Data to Wisdom Data: symbols Information: data that are processed to be useful; provides answers to "who", "what", "where", and "when" questions Knowledge: application of data and information; answers "how" questions Understanding: appreciation of "why" Wisdom: evaluated understanding. (Ackoff)

Network Resources Communication Media Network Support Cables, fibre optics, cellular, wireless Network Support Technologies to support the network, modems, internet browsers etc.

Changing Role of IS IS is performing an increasingly important role within organisations, that role is changing. Technology Push effects Business Pull effects

Technology - ‘Push’ Increased Capability Improved Processing & Storage Improved Connection Networks Internet Comparative Cost reductions

Business Pull Effects 6 Important Business Objectives Operational Excellence Efficiency / Productivity New Products, Services & Business Models Consider today’s music industry? Customer & Supplier Intimacy CRM & SCM systems Improved Decision Making Right information at the right time Competitive Advantage Doing things your competitors can’t match Survival Keeping up with competitors, or legal changes

Changing Role of IT in Organisations 4 Era’s of Technology DP Era (Data Processing) MIS Era (Management Information Systems) SIS Era (Strategic Information Systems) Internet Era

DP Era (50’s-60’s) Purpose : AUTOMATE Form : Mainframe Limitations : Hardware Focus : Programming Ownership : Computer Dept., Remote from users Objectives : lower costs, make use of technology

MIS Era (70’s-80’s) Purpose : INFORMATE Form : Distributed Processing - PC’s Limitations : Software Focus : Identifying User’s needs Ownership : Regulated by management, available as service Objectives :Supporting management, meeting users’ needs

SIS Era (80’s-90’s) Purpose : TRANSFORMATE Form : Networking Limitations : Management Vision Focus : Identifying Business Opportunities Ownership : Executives, Linked to business functions Objectives : Supporting Business, meeting business needs.

Internet Era (Now!) Purpose : ???...MATE Form : Internet Limitations : ??? Viability of Business Models Focus : ??? Reach and Range Ownership : Everyone - central to whole business Objectives : it IS the business.

Case Study Is Second Life Ready for Business? Laudon & Laudon p34