MANAGEMENT INFORMATION SYSTEM

Rahmat Ullah Niazi

Class : BBA
Credit Hours (3)
11/06/20 1
 Recommended Books
Books in course outline:
 “Management Information System, Managing the Digital Firm” by
Kenneth C. Laudon, Jane P. Laudon. Eighth Edition, Prentice Hall,
India
Internet sources
Reference Book
 Management Information Systems: Strategy and Action Book by
Charles S. Parker

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 Grading Policy

Mid-Term 30%
Final 50 %
Assignments & Quizzes 10 %
Presentation 10%

 Internal marks are subject to change and will be notified before hand

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 Course Outline
This course will introduce information systems in
the modern enterprise through a survey of
information systems technologies and the way
they affect management.
Although the course considers information
technology, it focuses on management strategies,
not technical issues.

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 Unit : Introduction to information systems

Management Information Systems

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 Key Learning Objectives

 Introduction to IS
 The Background
 What are these systems?
 Why Information System
 Importance of Information System
 The current International status and Business
Challenges
 Information System in problem Solving

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 Background

Operational Efficiency
 Computers replacing manual activities
 Speed, accuracy, efficiency, capacity

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 Background

The Early Information Systems (IS)

 Slow computing
 Time consuming system development and information

management
 Failure Stories

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 What are Systems?

“An organized combination of people,

hardware, software, networks and data
resources that collect, transforms, and
disseminates information in the
organization.”
James O’Brien (1998).

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 What is difference between Data and Information

Data:
 Streams of raw facts representing events such as
business transactions.

Information:
 Clusters of facts that are meaningful and useful to
human beings in the processes such as making
decisions

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 What is difference between Data and Information

Data and Information

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 Information Systems

Information System
 An information system (IS) is any organized system for
the collection, organization, storage and communication
of information.

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 Information Systems
Examples:
 When we visit a travel agency to book a trip, a collection
of interconnected information systems is used for
checking the availability of flights and hotels and for
booking them.
 When we make an electronic payment, we interact with

the bank’s information system rather than with

personnel of the bank.
 Modern supermarkets use IT to track the stock based on

incoming shipments and the sales that are recorded at

cash registers.

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 Integrated View of Information Systems

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 Integrated View of Information Systems
Figure shows an integrated view of an information system
encompassing six entities: customers, products (and services),
business processes, participants, information, and technology.
 Customers are the actors that interact with the information system
through the exchange of products or services.
 These products are being manufactured or assembled in business
processes that use participants, information, and technology.
 Participants are the people who do the work. Information may
range from information about customers to information about
products and business processes. Business processes use
technology, and new technologies may enable new ways of doing
work.
 Customers and participants are examples of agents. A business
process describes the flow of work within an organization.

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 Business Process
Business Process:
 A business process is a
 collection of linked tasks which find their end in the
delivery of a service or product to a client.
 A business process has also been defined as a
 set of activities and tasks that, once completed, will
accomplish an organizational goal.

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 Example of a family doctor
A patient serves as a customer, the product is health care.
The business process describes the procedure of the
medical treatment. It has five activities:
n A patient informs the doctor about the symptoms,
n then the doctor examines the patient,
n makes a diagnosis,
n determines the treatments, and
n finally the doctor enters the data into the software system.
Participant: The doctor,
Pieces of information: are the symptoms of the patient and the
data added to the software system
Technology: The doctor’s software system.

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 Internal Environment

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 External Environment

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 IS Environment
Technology – the means by which data is
transformed and organized for business use:
 Hardware


Software
 Database

 Telecommunication

 People – the users of IS

Organization -- a collection of functional units
working together to achieve a common goal

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 Goals & Objectives

Operational Efficiency

Functional Effectiveness

Customer Service

Product Creation & Enhancement

Availability

Communication and Networking

Control & Feedback

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 Current International Environment

Last Decade (Heavy Investment in IT/IS)

IS a normal life necessity
Banks
Communication & Entertainment

Government Essentials (Registration, civil

administration)

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 WHY INFORMATION SYSTEMS?

The Competitive Business Environment and the Emerging

Digital Firm

Four powerful worldwide changes that have

altered the business environment:

1. Emergence of the Global Economy

2. Transformation of Industrial Economies
3. Transformation of the Business Enterprise
4. The Emerging Digital Firm

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 WHY INFORMATION SYSTEMS?

The Competitive Business Environment and the Emerging

Digital Firm

Emergence of the Global Economy

 Management and control in a global marketplace

 Competition in world markets
 Global work groups
 Global delivery systems

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 WHY INFORMATION SYSTEMS?

The Competitive Business Environment and the Emerging

Digital Firm

Transformation of Industrial Economies

 Knowledge- and information-based economies

 Productivity
 New products and services
 Knowledge: a central productive and strategic asset
 Shorter product life
 Limited employee knowledge base

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 WHY INFORMATION SYSTEMS?

The Competitive Business Environment and the Emerging

Digital Firm
Transformation of the Business Enterprise

 Flattening
 Decentralization
 Flexibility
 Location independence
 Low transaction and coordination costs
 Empowerment
 Collaborative work and teamwork

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 WHY INFORMATION SYSTEMS?

The Competitive Business Environment and the Emerging

Digital Firm
Emergence of the Digital Firm

 Digitally-enabled relationships with customers,

suppliers, and employees
 Core business processes accomplished via digital
networks
 Digital management of key corporate assets
 Rapid sensing and responding to environmental
changes

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Information Architecture and Information
Technology Infrastructure

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 IS Approach to Problem Solving

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 Systems Analysis & Design
Systems Analysis
 Problem analysis (what)

 Information gathering (where & why)

 Decision making (how)

 Establish objectives

 Determine feasibility

 Choose best solution

Systems Design (Input, Process, Output, Procedures,

Control)
 Logical design

 Physical Design

 Implementation

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 Systems Analysis & Design
Systems Design
 Logical design (what will the system do?)

 Input: content, format, source, volume, frequency,

timing
 Process: rule, model, formula, timing

 Output: content, format, organization, volume, freq.,

timing
 Storage: data, format, organization, relationship,

volume
 Procedure: manual activities, rule, sequence, timing,

location
 Control: security, accuracy, validity, supervision

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 Systems Analysis & Design
 Physical design (how the system will work?)
 Input: keyboard, voice, scanner

 Process: PC, operating system, software

 Output: print-outs, files, audio

 Storage: tape, CD

 Procedure: batching, backup, auditing, data

entry
 Control: batch control, password, audit logs

 Implementation (coding, testing, training)

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 Links
https://www.huridocs.org/information-systems/
https://www.huridocs.org/information-systems/

http://www.blueavenueassociates.com/insight-
resources/online-resource-
center/insights/importance-good-information-
management-system
Management Information Systems 8/e Chapter 1
Managing the Digital Firm

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 Summary
 Introduction to IS
 The Background
 What are these systems?
 Why Information System
 Importance of Information System
 The current International status and Business
Challenges
 Information System in problem Solving

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 Key Learning Points
Data
Information
IS
Feedback
Processing

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