Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Management Information Systems By Effy Oz & Andy Jones Chapter 1: Business Information Systems: An Overview

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Objectives Explain why information systems are essential to business Describe how computers process data into useful information for problem solving and decision making Identify the functions of different types of information systems in business

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Objectives (continued) Describe careers in information technology Identify major ethical and societal concerns created by widespread use of information technology

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning The Purpose of Information Systems Businesses use information systems –To make sound decisions –To solve problems Problem is any undesirable situation Decision arises when more than one solution to problem exists

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning The Purpose of Information Systems (continued) Problem solving and decision making require information Keys to success in business are –Gathering correct information –Storing information –Using information

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Data, Information, and Information Systems “Data”, “information” and “system” are commonly used terms Important to understand their similarities and differences

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Data vs. Information Data: a given or fact –Can be number, statement, or picture Information: facts or conclusions that have meaning within context –Composed of data that is manipulated

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Data Manipulation Data is manipulated to make useful information Survey is common method of collecting data Raw data is hard to read Information is more useful to business than data

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Generating Information A process is manipulation of data Process usually produces information Process may produce more data A piece of information in one context may be considered data in another context

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Generating Information (continued)

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Information in Context Not all information is useful Useful information is –Relevant –Complete –Accurate

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Information in Context (continued) Useful information is –Current –Obtained economically (in business)

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Information in Context (continued)

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning What Is a System? System: array of components that work together to achieve goal or goals System –Accepts input –Processes input –Produces output

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning What is a system? (continued) System may have multiple goals System may contain subsystems Subsystems have sub-goals that meet main goal Subsystems transfer output to other subsystems

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning What is a system? (continued) Closed system: has no connections with other systems Open system: interfaces and interacts with other systems –Often a subsystem of a bigger system Information system: processes data and produces information

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Information and Managers Systems thinking: thinking of an organization in terms of subsystems Database: collection of electronic records Information systems automate exchange among subsystems Information map: network of information systems Information technology: technologies that facilitate construction and maintenance of information systems

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning The Benefits of Human- Computer Synergy Humans are relatively slow and make mistakes Computers cannot make decisions Synergy: combining resources to produce greater output

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning The Benefits of Human- Computer Synergy (Continued)

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Information Systems in Organisations Computer-based Information system: system with computer at centre Certain trends have made information systems important in business Organisations lag behind if they do not use information systems

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Components of information systems

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning The Four Stages of Processing Input: collect and introduce data to system –Transaction: a business event, usually entered as input Data processing: perform calculations on input Output: what is produced by the information system Storage: vast amounts of data stored on (for example) optical discs

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Computer Equipment for Information Systems Input devices: receive input Computer: process data Output: displays information Storage devices: store data Network devices: transfer data

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Computer Equipment for Information Systems (continued)

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning From Recording Transactions to Providing Expertise: Types of Information Systems Many types of information systems Capabilities of applications have been combined and merged Management Information System: supports planning, control, and making decisions

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Transaction Processing Systems Most widely used type of system Records data collected at point where organisation interacts with other parties Encompasses cash registers, ATMs and purchase order systems

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Supply Chain Management Systems Supply chain: sequence of activities involved in producing and delivering products –Activities include marketing, purchasing raw materials, manufacturing, shipping, billing, collection, and after-sale services Also known as enterprise resource planning (ERP) systems

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Customer Relationship Management Systems Customer relationship management: managing relations with customers –Used in combination with telephones to provide customer service –Often linked to Web applications that track online transactions

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Business Intelligence Systems Business Intelligence: gather data to help organisation compete –Often contains statistical models –Access large pools of data Data warehouse: large database that usually store transactional records

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Decision Support and Expert Systems Decision support system: supports decision-making –Relies on models to produce tables –Extrapolates data to predict outcomes Expert system: supports knowledge- intensive decision-making –Uses artificial intelligence

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Geographic Information Systems Geographic information system: ties data to physical locations Represents data on a map in different formats May reflect demographic information in addition to geographic May use information from GPS satellites

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Geographic Information Systems (continued)

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Information Systems in Business Functions Functional business area: services within a company that support main business –Includes accounting, finance, marketing, and human resources –Part of a larger enterprise system

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Accounting Information systems help record transactions Produce periodic statements Create required reports for legal compliance Create supplemental reports for managers

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Finance Finance systems facilitate financial planning and business transactions Tasks include organising budgets, managing cash flow, analysing investments, and making decisions

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Marketing Pinpoint likely customers and promote products Marketing information systems analyse demand for products in regions and demographic groups –Identify trends in demand for products/services Web provides opportunity to collect marketing data

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Human Resources Human resource management systems aid record-keeping –Must keep accurate records –Aids recruiting, selection, placement, and reward analysis Performance evaluation systems provide grading utilities

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Web Empowered Enterprises E-commerce: Buying and selling goods and services through Internet Internet is a vast network of computers connected globally Web has a profound impact on information systems

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Careers in Information Systems Information technology professionals are increasingly in demand Networking, system analyst, software engineering, and database administrator jobs are increasing in demand

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Systems Analyst System analyst: designs and updates information systems Involves analysing system requirements, documenting development efforts, and providing specifications for programmers Requires communication and presentation skills

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Database Administrator Database administrator: responsible for databases –Develops and acquires database applications –Must protect privacy of customers and employees –Responsible for securing the database

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Data Administrator Data administrator: responsible for strategic use of databases –Ensuring senior management are able to make full use of internal data –Ensuring appropriate external data is collected and filtered –Enabling the use of this internal and external data to gain competitive advantage

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Network Administrator Network administrator: acquires, implements, manages, maintains, troubleshoots networks Implements security –Firewalls –Access codes

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Webmaster Webmaster: creates and maintains Web site Designs and codes the page Demand for Webmasters grows as more businesses use Web

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Chief Security Officer Chief security officer: supervises security of information system Position exists due to growing threat to information security Reports to chief information officer

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Chief Information Officer and Chief Technology Officer Chief information officer: responsible for all aspects of information system –Highest ranking IS officer –Responsible for IS as a strategic resource Chief technology officer: has similar duties as CIO –High level corporate officer –In charge of all IT needs of the organisation Sometimes the two positions are incorporated into one

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Chief Information Officer and Chief Technology Officer (continued)

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Summary Computer-based information systems pervade almost every aspect of our lives A system is a set of components that work together to achieve a common goal Subsystem: a system performs a limited task that produces an end result, which must be combined with other products from other systems to reach an ultimate goal Data processing has four stages

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Summary (continued) Any IS that helps in management is a management information system (MIS) Many different types of MIS Enterprise application systems (SCM or ERP) tie together different functional areas of a business ISs are used in accounting, finance, marketing, and human resources

Use with Management Information Systems 1e By Effy Oz & Andy Jones ISBN © 2008 Cengage Learning Summary (continued) The job prospects for IT professionals are bright IT has created societal concerns