CSC373: Management Information Systems Mr. Armughan Ali Assistant Professor Department of Computer Science CIIT Attock.

Why is MIS Important? MIS affects all areas of business It is business imperative Manufacturing Accounting & Finance Human resources Marketing Top management Performance evaluations—expectations

Information Systems A Raw Definition A system is a set of interrelated components, with a clearly defined boundary, working together to achieve a common set of objectives. Information System (IS) can be any organized combination of people, hardware, software, communications networks, data resources, and policies and procedures that stores, retrieves, transforms, and disseminates information in an organization

MIS Components Hardware Software Data People Procedures Backup data Restart job Virus scan Data People Procedures

Roles of IS in Business

InfoSys with NO Computers Computers are integral part of IS? It is a fallacy since there were no computers in the past. moke Signals when marooned on an Island Paper Based Accounting Ledger Bag, notebook & File folder: used to organize useful info provided in the forms of books, handouts, documents etc.

3 Basic Roles of IS Support BPR’s and Operations e.g. Computer Based IS (CBIS) Recording customer purchases, track inventory, pay employees, buy new merchandise, evaluate sales trends etc Support Decision Making Merchandise to be added or discontinued Support Strategy Making Innovative use of IT e.g. Automated Kiosks at malls or airports etc. Provides competitive edge.

A Case: “eCourier” Using IT & Business Intelligence (BI) Britain based Courier service 2000 packages per day around London Using IT & BI as competitive weapon over hundreds off other courier firms. Use GPS enabled handheld devices instead of conventional phone dispatchers. Enabled online booking and tracking of orders. Enhanced customer satisfaction Made firm scalable Saved money by reducing man power BI software from “SeeWhy” capable of generating alerts in case of anomaly.

Non Credit Assignment How did information technology contribute to the business success of the eCourier company depicted in the case? Provide an example and explain how the technology implemented led to improved performance.

Credited Activity Activity 1: Use the Internet to research the latest offerings in business intelligence technologies and their uses by companies. What differences can you find with those reviewed in the case? Prepare a report to summarize your findings and highlight new and innovative uses of these technologies. Activity 2: Why do some companies in a given industry, like eCourier adopt and deploy innovative technologies while others in the same line of business do not? Break into small groups with your classmates to discuss what characteristics of companies could influence their decision to innovate with the use of information technologies.

In essence, an online exchange of value What is E-Business? Using Internet technologies to empower… Business processes Electronic commerce (a service by e-business) Collaboration within a company (Intranet) Collaboration with customers, suppliers, and other business stakeholders (Extranet) In essence, an online exchange of value 1-12

Types of Information Systems Operations Support Systems Efficiently process business transactions Control industrial processes Support communication and collaboration Update corporate databases Management Support Systems Provide information as reports and displays Give direct computer support to managers during decision- making 1-13

Purposes of Information Systems 1-14

Types of Operations Support Systems Transaction Processing Systems Record and process business transactions Examples: sales processing, inventory systems, accounting systems Process Control Systems Monitor and control physical processes Example: using sensors to monitor chemical processes in a petroleum refinery Enterprise Collaboration Systems Enhance team and workgroup communication Examples: email, video conferencing 1-15

Two Ways to Process Transactions Batch Processing Accumulate transactions over time and process periodically Example: a bank processes all checks received in a batch at night Online Processing Process transactions immediately Example: a bank processes an ATM withdrawal immediately 1-16

Management Support Systems What do they do? Provide information and support for effective decision making by managers Management information systems Decision support systems Executive information systems 1-17

Types of Management Support Systems Management Information Systems (MIS) Reports and displays Example: daily sales analysis reports Decision Support Systems (DSS) Interactive and ad hoc support Example: a what-if analysis to determine where to spend advertising dollars Executive Information Systems (EIS) Critical information for executives and managers Example: easy access to actions of competitors 1-18

Other Information Systems Expert Systems Provide expert advice Example: credit application advisor Knowledge Management Systems Support creation, organization, and dissemination of business knowledge throughout company Example: intranet access to best business practices 1-19

Other Information Systems Strategic Information Systems Help get a strategic advantage over customer Examples: shipment tracking, e-commerce Web systems Functional Business Systems Focus on operational and managerial applications of basic business functions Examples: accounting, finance, or marketing 1-20

IT Challenges and Opportunities 1-21

Measuring IT Success Efficiency Effectiveness Minimize cost, time, and use of information resources Effectiveness Support business strategies Enable business processes Enhance organizational structure and culture Increase customer and business value 1-22

Developing IS Solutions 1-23

Challenges and Ethics of IT Application of IT Customer relationship management Human resources management Business intelligence systems Potential Harm Infringements on privacy Inaccurate information Collusion 1-24

Challenges and Ethics of IT Potential Risks Consumer boycotts Work stoppages Government intervention Possible Responses Codes of ethics Incentives Certification 1-25

Business Intelligence (BI) BI refers to all applications and technologies in the organization that are focused on the gathering and analysis of data and information that can be used to drive strategic business decisions.

Example: Welch Using BI Welch: Purveyor of Food and Packaged Consumer Goods. Using Business Intelligence (BI) application from Oco to maximize that truckloads. IDEA: maximum load delivered in minimum cost