Scribd
Upload
7 views

Module 1.1

MIS

Uploaded by

brantchikoy
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
7 views

Module 1.1

MIS

Uploaded by

brantchikoy
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 25

MODULE 1

BUSINESS INFORMATION SYSTEM


ROLE OF INFORMATION SYSTEMS IN BUSINESS TODAY

The environment in which organizations operate has changed


dramatically over the last few years. Increased competition,
globalization, the influence of the Internet and international
events affect the performance and survival of organizations on a
world-wide scale. The Internet has changed the way organizations
do business, from the acquisition and servicing of customers to
the management of their relations with suppliers. This is not only
revolutionizing the way people access information, communicate,
shop and entertain themselves, but also the way organizations
compete and operate.
THREE FUNDAMENTAL ROLES OF INFORMATION
SYSTEMS IN THE BUSINESS
Operations
A business information system carries out specific functions in
support of operations, including payroll, employee record
storage, preparing and storing company documents and credit
card processing.
Controls
Monitoring and controlling the activities of employees
is a core function of information systems. This is
especially true of financial transactions in which
management has a duty to prevent fraud and theft.
Decisions
Fundamental role for information systems is
management support in making decisions.
BUSINESS DRIVERS OF INFORMATION
SYSTEMS

❖Operational Excellence
❖New Products, Services, and Business Models
❖Customer Supplier and intimacy
❖Improved Decision-making
❖Competitive Advantage
❖Survival
OPERATIONAL EXCELLENCE

Information systems and technologies are some of the


most important tools available to managers for
achieving higher levels of efficiency and productivity in
business operations, especially when coupled with
changes in business practices and management
behavior.
NEW PRODUCTS, SERVICES, AND BUSINESS
MODELS

Information systems and technologies are a major


enabling tool for the firm to create new products
and services, as well as entirely new business
models. A business model describes how a
company produces, delivers and sells a product or
service to create wealth.
CUSTOMER SUPPLIER AND INTIMACY

When a business really knows its customers and serves them


well, the way they want to be served, the customers generally
respond by returning and purchasing more. This raises
revenues and profits. Likewise, with suppliers: the more
business engages its suppliers the better the suppliers can
provide vital inputs. This lower costs.
IMPROVED DECISION MAKING

In the past ten years, information systems and


technologies have made it possible for managers
to use real-time data from the market place when
making decisions.
COMPETITIVE ADVANTAGE

When firms achieve one or more of these


business objectives—operation excellence: new
products, services, and business models:
customer/supplier intimacy: and improved
decision making—chances are they have already
achieved a competitive advantage.
SURVIVAL

Business firms also invest in information


systems and technologies because they are
necessities of doing business. Sometimes
these necessities are driven by industry-level
changes.
PERSPECTIVES ON INFORMATION
SYSTEMS AND INFORMATION
TECHNOLOGY

INFORMATION TECHNOLOGY consists of all the


hardware and software that a firm needs to use in
order to achieve its business objectives.
WHAT IS INFORMATION SYSTEM?

It is a set of interrelated components that


collect (or retrieve), process, store, and
distribute information to support decision
making and control in an organization.
Three activities in an information system
produce the information that organizations
need to make decisions, control operations,
analyze problems, and create new products
or services. These activities are input,
processing, and output.
FUNCTION OF INFORMATION SYSTEM
Input captures or collects raw data from within
the organization or from its external
environment. Processing converts this raw input
into a meaningful form. Output transfers the
processed information to the people who will
use it or to the activities for which it will be used.
DIMENSIONS OF INFORMATION SYSTEMS

❖Organizations
❖Management
❖Information Technology
ORGANIZATIONS

Information systems are an integral part of


organizations. Indeed, for some companies,
such as credit reporting firms, there would be
no business without an information system. The
key elements of an organization are its people,
structure, business processes, politics, and
culture.
Senior management makes long-range strategic decisions about
products and services as well as ensures financial performance of
the firm. Middle management carries out the programs and plans
of senior management, and operational management is
responsible for monitoring the daily activities of the business.
Knowledge workers, such as engineers, scientists, or architects,
design products or services and create new knowledge for the
firm, whereas data workers, such as secretaries or clerks, assist
with scheduling and communications at all levels of the firm.
Production or service workers produce the product and deliver
the service.
MANAGEMENT
Management’s job is to make sense out of the many
situations faced by organizations, make decisions, and
formulate action plans to solve organizational problems.
Managers perceive business challenges in the
environment; they set the organizational strategy for
responding to those challenges; and they allocate the
human and financial resources to coordinate the work
and achieve success. They must exercise responsible
leadership.
INFORMATION TECHNOLOGY

❖Computer Hardware
❖Computer Software
❖Data Management technology
❖Networking and telecommunications technology
Computer hardware is the physical equipment used for
input, processing, and output activities in an information
system. Computer software consists of the detailed,
preprogrammed instructions that control and coordinate the
computer hardware components in an information system.
Data management technology consists of the software
governing the organization of data on physical storage
media. Networking and telecommunications technology,
consisting of both physical devices and software, links the
various pieces of hardware and transfers data from one
physical location to another.
CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS
TECHNICAL APPROACH

The technical approach to information systems


emphasizes mathematically based models to
study information systems, as well as the physical
technology and formal capabilities of these
systems. The disciplines that contribute to the
technical approach are computer science,
management science, and operations research.
BEHAVIORAL APPROACH

An important part of the information systems field is


concerned with behavioral issues that arise in the
development and long-term maintenance of
information systems. Issues such as strategic business
integration, design, implementation, utilization, and
management cannot be explored usefully with the
models used in the technical approach.

You might also like