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Information Systems in Business and Management
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Origins in a number of Disciplines –Management –Operations Research –Computer Science –Accounting –Organisation Development Taxonomy of Information Systems –Transaction Processing –Management Reporting Systems –Decision Support Systems –Executive Information Systems
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Five Main Resources Personnel Material Machines –(including facilities and energy) Money Information (and data) Physical Conceptua l }
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Management Information Systems Information: The most valuable resource
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How Resources are Managed Acquire Assemble, or prepare Maximize use Replace
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Factors Stimulating Interest in Information Management Increasing complexity of business –International economy –Worldwide competition –Increasing complexity of technology –Shrinking time frames –Social constraints Improved computer capabilities
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Who are the Users? Managers Supervisors & employees Persons & organizations in the firm’s environment
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Where Managers are Found Various management levels Various functional areas of the firm
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The Nature of Management Functional Activities –Accounting –Marketing –Production –Personnel Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title
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Levels of Management (Anthony 1965) Strategic Planning Management control Operational Control
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Levels of Managers Strategic planning Management control Operational control
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Strategic Planning Relates to the Organisation as a Whole Occurs on an Irregular Basis Relies on External Information An Exercise in Applied Economics Small Numbers Involved Provides the Framework for Mgt Control
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Management Control Elements Process Managers Goals Efficiency and Effectiveness Characteristics – Focus on Responsibility Centres – General Types of Information – Comprehensive – Expressed in Financial Terms – Defined Patterns and Timetables – Coordinated Integrated System
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Operational Control Restricted to Narrowly Defined Activities Occurs in the Context of Mgt Control Based on a Financial Structure Relates to Individual Transactions Requires a Formal Model of Operation
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The Influence of Management Level on Information Source Strategic planning level Management control level Operational control level Internal Environmental
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The Influence of Management Level on Information Form Strategic planning level Management control level Operational control level Detail Summary
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Managers Can Be Found on All Levels and in All Functional Areas of the Firm Finance Function Human Resources Function Information Services Function Manufacturing Function Marketing Function Strategic planning level Management Control Level Operational Control Level
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Managerial Roles Fayol Mintzberg Stewart Planning, Staffing, Controlling etc
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What Managers do -- Fayol’s Functions Strategic Planning Level Management Control Level Operational Control Level
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What Managers do -- Mintzberg’s Roles Interpersonal roles –Figurehead –Leader –Liaison Informational roles –Monitor –Disseminator –Spokesperson n Decisional roles –Entrepreneur –Disturbance handler –Resource allocator –Negotiator
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Problem Solving Information Comes in Many Forms Computer Reports Noncomputer reports Electronic mail Periodical s Telephone Problem Solving Written Media Oral Media Internal Sources External Sources Scheduled Meetings Unscheduled Meetings Voice Mail Tours Business Meals Letters & Memos
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Management Skills Communications Problem solving How can an information specialist help?
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Transaction Processing Systems A focus on data storage processing and flows at the operational ; Efficient Transaction Processing Automation of High Volume Routine Tasks Minimum Participation by Users Summary reports to Management Ryanair, EBay, Google
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Management Reporting Systems An Information Focus aimed at Middle Managers Structured Information Flow Inquiry and Report Generation off a Database Planning and Control Summary Details Rhythmic in Nature Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title
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Decision Support Systems Support for Managerial Decision Making Evolved from Experiences with M.I.S. Aimed at the less well structured/Underspecified problems Combine modelling and Analysis Capability Flexibility and Adaptability
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Executive Information Systems Structured Automated Tracking Systems for Executives Designed to Support Top Executives Characteristics –Ease of use - Touch Screens etc –Data Cube –External Information Examples in Ireland –Bank of Ireland, AIB –Telecom Eireann –ESB Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title
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A Systems View Business operations are embedded within a larger environmental setting
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Evolution of the CBIS Data (EDP) MIS 1964 –IBM promoted the concept as a means of selling disk files and terminals DSS 1971 –Our distinction: »MIS: Organizational/group - general »DSS: Individual - specific 1980’s/1990/s EIS 1990’s/2000’s ERP systems (back to 1964?)
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The CBIS Model Computer-based Information System (CBIS) Accounting Information System Management Information System Decision Support Systems The Virtual Office Knowledge-based Systems Decisions Problem Information ProblemSolution
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Information Services Information specialists have full-time responsibility for developing and maintaining computer-based systems
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Traditional Communications Chain Database Administrator User Systems Analyst Programmer Operator Computer Network Specialist
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End-User Computing End-user computing –Development of all or part of applications Stimulants to EUC –Increased computer literacy –IS backlog –Low-cost hardware (the PC) –Prewritten software (electronic spreadsheets)
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IS and EUC The End-User Computing Communication Chain User Computer Information Specialists Support Communication
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Justifying the CBIS Justify in the same manner as any other large investment Economic –Cost reduction –Reduced inventory investment –Increased productivity (CAD/CAM) Noneconomic –Perceived value
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Achieving the CBIS
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Roles Played by the Manager and by the Information Specialist Implementatio n PhaseManage r Information Specialist Control Planning Analysis Design Use Define problem Support System Study Design system Implement system Make available
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Using Information Technology for Competitive Advantage MANAGEMENT INFORMATION SYSTEMS
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Suppliers The firm Customers Labor unions Stockholders or owners Society The Firm’s Environment Financial Community Government Global Community Suppliers The Firm Labor unions Stockholders or owners Customers Competitors
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A Value Chain Firm Infrastructure Human resource management Technology development Procurement Inbound logistics OperationsOutbound logistics Marketing and sales Service Margin Support Activities Primary Activities
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Channel value chains Supplier value chains Buyer value chains Firm value chain A Value System
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The Information Resources Facilities SoftwareDatabase Hardware Information Specialists Users Information
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The Future The bright side: Information is getting more important The dark side: Trend to end-user computing is making information management more difficult
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Strategic planning for information resources Strategic planning for marketing resources Strategic planning for manufacturing resources Strategic planning for human resources Strategic planning for financial resources The Functional Areas Should Cooperate in Developing Their Strategic Plans
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Strategic Planning for Information Resources Business strategy Information resources and IS strategy Influence on Business Strategy Influence on Information Resources
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IRM - Required Elements A recognition that competitive advantage can be achieved by means of superior information resources A recognition that information services is a major functional area A recognition that the CIO is a top-level executive
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IRM-Required Ingredients (cont.) A consideration of the firm’s information resources when engaging in strategic planning A formal strategic plan for information resources A strategy for stimulating and managing end- user computing
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The firm’s executives CIO Other executives Central computing resources resources Disbursed computing resources FUNCTIONAL AREAS User’s engaged in end-user computing Other users ENVIRONMENTAL INFLUENCES Internal influencesFirm’s strategic plan STRATEGIC PLAN FOR INFORMATION RESOURCES DATA AND INFORMATION The IRM Model Information services Human resources Manufacturing Marketing Finance The environment of the firm
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A Sales Report of Fast Moving Products Year-to-Date % of Total Item Number Item Description Sales Volume Year-to-Date Sales 400293 BRAKE PIPE $1,702.93.068 319421 DOOR HANDLE GASKET 1,624.00.065 786402 CLUTCH DRIVEN PLATE 1,403.97.056 190796 CARPET SNAP 1,102.00.044 001007 SPARK PLUG 1,010.79.040 739792 HOSE CLIP 949.20.038 722210 RUBBER PLUG 946.73.038 410615 UPPER DOOR HINGE 938.40.038 963214 REAR TUBE SHOCK 922.19.037 000123 NEEDLE VALVE 919.26.037 Totals $11,519.47.461
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Information is Gathered from All of the Physical System Elements Management TransformationProcess OutputResourcesInputResources Information Information
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Supplier Analysis Report Item Number: 410615 Item Description: Upper Door Hinge SUPPLIERLASTUNITDAYS TO PCT. NUMBER NAMEDATEP.O. # QTY.PRICERECEIPT REJECTS 3062 CARTER 7/121048-10 360$8.75 12.00 & SONS & SONS 4189 PACIFIC 4/13 962-10 350 9.10 08.02 MACHINING MACHINING 0140 A.B. 1/04 550-10 350 8.12 03.00 MERRIL MERRIL 2111 BAY AREA 8/19 1196-10 360 11.60 19.04
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A Job Status Report Provides Information about the Transformation Process Job Number: 84-182 Customer: Wankel Automotive CURRENT STATUS Step 4-weld supports to frame Department 410-Welding Date and Time Begun-10/8; 10:15A Projected Job Completion-10/14; 9:30A NEXT PROCESS Step 5-paint frame Step 5-paint frame Department 632-Paint Department 632-Paint
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Dimensions of Information Relevancy Accuracy Timeliness Completeness
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INFORMATION SYSTEM INFORMATIONSYSTEM BUSINESSCHALLENGE BUSINESSSOLUTIONS MANAGEMENTINFORMATIONTECHNOLOGYORGANIZATION 3.2 MANAGING CHANGE FITTING TECHNOLOGY TO ORGANIZATION LIMITS OF TECHNOLOGY
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