Meeting 1

Introductory to
Information System
Management Course

Communication and Information Management Program

College of Multimedia Yogyakarta
Spring 2014/2015
Tri Anggraeni, S.Kom., M.Sc.

Information System
Management
is not

Management Information
System

Information System Management

I. Achieving Business Success through Information Technology
1. Business Driven Technology Overview (1, 2)
2. Identifying Competitive Advantages (3, 4, 5)
3. Strategic Initiatives for Implementing Competitive Advantages (6,
7)
4. Measuring the Success of Strategic Initiatives (8, 9, 10)
5. Organizational Structures That Support Strategic Initiatives (11, 12)
II. Managing Information for Business Initiatives
Valuing Organizational Information (13, 14)
Reference :
Haag, Baltzan, Phillips (2005) Information System Management. Mc Graw Hill

Meeting 1
Business Driven
Technology Overview
Communication and Information Management Program
College of Multimedia Yogyakarta
Spring 2014/2015
Tri Anggraeni, S.Kom., M.Sc.

LEARNING OUTCOMES

Understand :
The difference between management
information systems (MIS) and information
technology (IT).
The relationships among people,
information technology, and information.
People at different levels of an organization
have different information needs.

Overview of the units in this text and a few

of the important business and technology
concepts covered in each unit.

MIS vs IT
People
Information

IT

Contents

1. Achieving Business Success through

Information Technology
2. Managing Information for Business
Initiatives
3. Enhancing Business Decisions
4. Creating Collaborative Partnerships in
Business
5. Transforming Organizations

1. ACHIEVING BUSINESS SUCCESS THROUGH

INFORMATION TECHNOLOGY
1.
2.
3.
4.

Information technology (IT)

Management information systems (MIS)
Correlation between IT and MIS
Business success principles

Information Technology (IT)

IT : any computer-based tool that people use to work with

information and support the information and informationprocessing needs of an organization.
IT can be an important enabler of business success and
innovation.
But, IT != business success and innovation.
IT does not represent business success and innovation.
IT is most useful when it leverages the talents of people.
IT in and of itself is not useful unless the right people know
how to use and manage it effectively.

Management Information
Systems (MIS)

MIS : a business function

(just as marketing, finance, operations, and human resource
management. Those are business functions)
Formally defined :, management information systems (MIS) is
the function that plans for, develops, implements, and
maintains IT hardware, software, and the portfolio of
applications that people use to support the goals of an
organization.
To perform the MIS function effectively :
almost all organizations today, particularly large and mediumsized ones, have an internal IT Department, often called
Information Technology (IT), Information Systems (IS), or
Management Information Systems (MIS).

 The plans and goals of the IT Department must align

with the plans and goals of the organization.
If a primary goal of the organization is to increase sales,
as at Levis, IT can facilitate Levis relationship with
WalMart.
IT can enable an organization to :
Increase efficiency in manufacturing
Retain key customers
Seek out new sources of supply
Introduce effective financial management.

 It is not always easy for managers to make the right

choices when using IT to support (and often drive)
business initiatives.
Most managers understand their business initiatives
well, but are often at a loss when it comes to knowing
how to use and manage IT effectively in support of those
initiatives.
Managers who understand what IT is, and what IT can
and cannot do, are in the best position to help their
organization succeed.

Business Success =
People + IT + Information

In essence :
People use
IT to work with
Information.

In the order of priority above,

people, information, and IT
are inextricably linked.
One fails all fail
One fails business fail

Tools can be used by

organizations to achieve success

Porters Five Forces

Value chain
Supply chain management
Customer relationship management

2. MANAGING INFORMATION
FOR BUSINESS INITIATIVES
a. What must be done by organization about
information
b. MIS = DB + DBMS
c. Managing Information with a Database and
Database Management System (DBMS)

Organization must manage

information properly

Organization must:
1. Determine what information it requires.
2. Acquire that information.
3. Organize the information in a meaningful fashion.
4. Assure the informations quality.
5. Provide software tools so that employees throughout
the organization can access the information they
require.

MIS = DB + DBMS
A database maintains information about various types of
objects (inventory), events (transactions), people
(employees), and places (warehouses).
A database management system (DBMS) is
software through which users and application programs
interact with a database.

Primary task of
database and DBMS

The primary task of a database is

to store and organize every piece of information
related to transactions and business events.
Transactions, e.g.: the sale of a product.
Business events, e.g. : the hiring of a new employee.
Databases store a tremendous amount of detailed
information.
The primary task of a DBMS is
to allow users to create, access, and use information stored
in a database.

Managing Information with a Database and

Database Management System (DBMS)

User can directly interact with a database using different

types of IT tools such as views and report generators,
Users can also interact indirectly with a database by using
application programs such as accounting, marketing, and
manufacturing applications.

3. Enhancing Business
Decisions
a. Activities, Information, and Information Technology
within an Organization
b. Online transaction processing (OLTP)
c. Online analytical processing (OLAP)
d. Data Warehouse and Data Mining
Introduces the role of information technology in strategic
decision making and covers in detail topics such as data
marts, data-mining tools, digital dashboards, supply chain
management, and customer relationship management.

Activities, Information, and Information

Technology within an Organization
People in the organization have unique information
needs and thus require various sets of information
technology tools.

Online transaction processing (OLTP)

The capturing of transaction and event

information using technology to :
1. process the information according to defined
business rules
2. store the information
3. update existing information to reflect the
new information.
At this level during OLTP, the organization must
capture every detail of transactions and events.
The activities of processing, storing, and
updating information occur within the context
of databases and DBMSs.

Online analytical processing (OLAP)

Manipulation of information to create

business intelligence in support of strategic
decision making.
Moving up through the organizational
pyramid, people (typically managers) deal
less with the details (finer information) and
more with meaningful aggregations of
information (coarser information) that help
them make broader decisions on behalf of the
organization.
Business intelligence : a broad, general term
describing information that people use to
support their decision-making efforts.

Data Warehouse and Data Mining

Data warehouse : logical collection of

informationgathered from many different
operational databasesthat supports
business analysis activities and decisionmaking tasks.
Data-mining tools : tools that people use to
work with information in a data warehouse.
Data-mining tools use a variety of techniques
to find patterns and relationships in large
volumes of information and infer rules from
them that predict future behavior and guide
decision making.

4. CREATING COLLABORATIVE
PARTNERSHIPS IN BUSINESS

a. Organization
b. Teams, Partnerships, and Alliances within and External
to an Organization
c. Collaboration Systems
d. Core competency strategy
e. Information partnerships

Organization
To be successful
and avoid being
eliminated by the
competition

To support
of these activities

1. Undertake new initiatives

Constantly 2. Address both minor and
major problems
3. Capitalize on significant
opportunities
Create and utilize teams,
partnerships, and alliances
Because all the requisite
expertise needed is beyond the
scope of a single individual or
even the organization

Teams, Partnerships, and Alliances

within and External to an Organization

 Groupware : software tools that support team interaction and

dynamics including calendaring, scheduling, and
videoconferencing.
Document management systems (DMS) : support the electronic
capturing, storage, distribution, archival, and accessing of
documents.
Document management systems are ideal for moving standard
business documents, such as purchase orders, among various
functions including order processing, inventory management,
billing, warehousing, and shipping.
Knowledge management systems (KMS) : systems that support
the capturing and use of an organizations know how
(common procedures).
Project management software : specifically supports the longterm and day-to-day management and execution of the steps in
a project (such as building a new warehouse or designing and
implementing a new IT system).

Example of Collaboration Systems : Project Management Advisors, Inc. (PMA):

provides its clients with expertise in project management for real estate
design, construction, and occupancy processes.
PMA required a system for :
sharing project information with its project team
members who were typically located in cities across
the countries.

Project plans

Budgets
Progress reports

Provides the various team members access to

project information.
Implemented
Synergy, a
Web-based
collaboration
tool that :

Offers the functionality to control which team members

can update documents and which team members can
only view documents.
Replaced e-mail
discussions with Webbased discussion forums

Provide an organized
record of project-related
discussions among
team members.

Synergy Permitted PMA to undertake larger, more complex projects

@PMA and reduce its administrative costs at the same time

Core competency strategy

The key strength, a business function that it does better

than any of its competitors.
Example :
Apple Computer : strength in product design
Accentures : design and installation of information
systems
One in which an organization chooses to focus specifically
on what it does best (its core competency) and forms
partnerships and alliances with other specialist
organizations to handle nonstrategic business processes.

Information partnership

Occurs when two or more organizations

Organization 1
cooperate by integrating their IT systems,
thereby providing customers with the best
Organization 2 Organization n
of what each can offer.
An integral foundation for many business
initiatives, including supply chain
management.
cooperate
IT systems make such business
Integrate
partnerships and alliances
easier to establish and manage.
IT system 1
The advent of the Internet has greatly
increased the opportunity for IT-enabled IT system 2
IT system n
business partnerships and alliances.

Example

Amazon.com developed a profitable business segment by

providing e-business outsourcing services to other retailers who
use Amazons Web site software.
Some well-known retailers partnering with Amazon.com
include Marshall Fields, Office Depot, and Target.
Levis core competency : brand-name differentiation and
recognition
Wal-Marts core competency : retail cost leadership.
The information partnership between those two organizations
enables cost-leadership selling of a widely recognized brand
name.
It is a win-win situation for both organizations.

5. TRANSFORMING ORGANIZATIONS
Digital Darwinism
Impact of advances in technology

Digital Darwinism

Organizations which cannot adapt to the new demands

placed on them for surviving in the information age are
doomed to extinction.
Rapid changes in technology coupled with recent trends
toward the globalization of business have raised the
intensity of the competitive environment in just about
every industry.
In the words of one long-time business consultant,
Nothings easy any more.
What this means is that managers will need all of the tools
at their disposal to ensure that their business thrives in
the information age by continuously transforming itself.

Several business segments that have

changed dramatically because of
Internet-based competition

Impact of advances in technology

There are numerous examples of organizations losing revenue

because of advances in technology.
Example : airline industry lost revenue from business travelers after :
Invention of videoconferencing technologies because managers no
longer have to travel to distant places to meet with their coworkers.
Invention of networking technologies that give individuals the
ability to access systems remotely to make updates, changes, and
fixes.
Technical specialists do not have to physically travel to the location
of the system; they can simply log in from wherever they are
located.

Managers must continually watch for Internet

competition and technology advances that have
the potential to corrode market share.