Management Information Systems

Mourad MAKACI

Université Bretagne Occidentale

[email protected]
 Contents

Contents
• Introduction to information system
• Information Systems in Global Business
• IS and organization management
• process modeling
• ERP
• Cases Study
 Introduction

What’s Information Systems Management ?

we are in a highly competitive environment, what makes a company have
more customers than a competitor?
Introduction
 Information System Components

Technology
resources

Organizational
Human ressources
ressources
 Components of an Information System
1. Technology resources
- Software technology resources
ERP, Application, Microsoft,…
Systems Software (windows, IOS, Android)
- Hardware technology resources
- Data input devices: keyboard, graphic tablet,
- Desktop computers
- Laptops
- Mobile Devices

- Processing center: microprocessor

- Storage devices and media: data centers, hard disks, etc.
- Data output device: monitor (screen), printer, ...
- Transfer and communication : networking Equipment : servers, firwalls
 Components of an Information System
2. Human resources
- IT specialists
- ISD: Information Systems Department

- Operations: routine operation and user support

- Study: software deployment or implementation project

- Expertise: diagnostics and audits

- SCSC: Software and Computing Services Company

- Consulting
- Integration and implementation
- Outsourcing: from maintenance to function outsourcing
- Managers and users

- Managers: generally top management => investment, IS alignment, technology

watch, etc.
- Users: company employees who use the hardware and applications.
 Components of an Information System

3. Organizational and managerial resources

- Business process

- Organizational culture and change management

- support from top management

- Decision-making

- Teamwork and work environments

- Training programs
 Data
• Data
• Input to the system
• Sources of data
• External
• Internal
• Time orientation
• Can be collected in different forms
• Aggregated
• Disaggregated
 Data - Information - Knowledge

Data: raw values representing events that took place in inside or outside organizations.
They have not yet been organized in such a way that users will be able to understand
and use them serve (Laudon et al., 2006, p.14)

Information: data that is presented in a useful and understandable form.

usable by people (Laudon et al., 2006, p.14)

Knowledge: what people believe in and value on the basis of a significant and
organized accumulation of information from experience or communication (Kakabadse
et al., 2003)
 Process

• Process
• Generates the most useful type of information for decision
making
• Generally includes transaction-processing reports and
models for decision analysis
• Includes a wide range of models to support all levels of
decision making
Information
 Using Information Systems and Information
Technologies

• Information technologies
• Achieve goals of information systems
• Examples
• Internet
• Databases
• RFID tags
 Information Technologies
• Wireless network
• Efficient in-store communication
• Web site
• Communicate with customers
• Increase sales with online orders
• RFID tags
• Better manage inventory
 The Importance of Information Systems
• Personnel information system (PIS) or human
resource information system (HRIS)
• Designed to provide information that helps decision
makers in personnel carry out their tasks more
effectively
• Use Web technologies
• Main difference between an intranet and the
Internet
• Intranets are private and the Internet is public
 The Importance of Information Systems
• Logistics information system (LIS)
• Designed to reduce the cost of transporting materials
• Maintains safe and reliable delivery

• Manufacturing information system (MFIS)

• Manages manufacturing resources
• Companies can reduce manufacturing costs, increase
product quality, and improve inventory decisions
 The Importance of Information Systems

• Financial information system (FIS)

• Provides information to financial executives in a timely manner
• Marketing information system (MKIS)
• Improves marketing decisions
• Provides timely, accurate, and integrated information about the
marketing
What is a System
 Systems and Subsystems

a system is an array of components that work together to achieve a

common goal, or multiple goals, by accepting input, processing it, and
producing output in an organized manner.
Not every system has a single goal. Often, a system consists of several
subsystems components of a larger system with subgoals, all contributing
to meeting the main goal. Subsystems can receive input from, and transfer
output to, other systems or subsystems.
Consider the different departments of a manufacturing business. The marketing
department promotes sales of the organization’s products; the engineering department
designs new products and improves existing ones; the finance department plans a budget
and arranges for every unused penny to earn interest by the end of the day. Each
department is a subsystem with its own goal, which is a subgoal of a larger system (the
company), whose goal is to maximize profit. 24
 Information System

The Control system: (decision-making system):

- Organizes the system’s functionning;
- Defines what actions to be taken on the operating system;
- Reasoning according to company objectives and policies

The operating system :

- Receives information from the control system;
- performs the tasks assigned to it;
- Generates information for the control system.

To organize its operation, the system needs to store information in

order to compare, forecast, etc. This role is played by the
Information System, which is also responsible for :
- Distribution information;
- Perform all processing required for system operation
What is an information system?

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 • Definitions of Information Systems

The company's information system is the part of reality made

up of organised information, events having an effect on this
information, and actors who act on or from this information,
according to processes aimed at a management purpose and
using information technologies.

D. Berthier, C. Morley, M. Maurice-Demouriaux,

Information Systems and Management,
Vol. 10, n°3, 2005, p. 26 27
 Information Systems

Information Systems
With an understanding of the terms “information” and “system,” the
definition of an information system is almost intuitive: an information
system (IS) consists of all the components that work together to process
data and produce information. Almost all business information systems
consist of many subsystems with subgoals, all contributing to the
organization’s main goal.

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 Information System

An information system
is the combination of
people and information
technology that create,
collect, process, store,
and distribute useful
data.

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• Functions of
Information System

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 Four Stages of Processing

All information systems operate in the same basic fashion whether

they include a computer or not. However, the computer provides a
convenient means to execute the four main operations of an
information system:
• Entering data into the IS (input).
• Changing and manipulating the data in the IS (data
processing).
• Getting information out of the IS (output).
• Storing data and information (storage). 31
Four Stages of Processing

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 Four Stages of Processing

1.Input : The first step in producing information is collecting and introducing data, known as
input, into the IS. Most data an organization uses as input to its ISs are generated and
collected within the organization.

2. Processing : The computer’s greatest contribution to ISs is efficient data processing. The
computer’s speed and accuracy enable organizations to process millions of pieces of data in
several seconds. For example, managers of a national retail chain can receive up-to-date
information on inventory levels of every item the chain carries and then order accordingly; in
the past, obtaining such information would take days.

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 Four Stages of Processing

3. Output
Output is the information an IS produces and displays in the format most useful to an
organization. computers can communicate output through speakers in the form of music or
speech and also can transmit it to another computer or electronic device in computer-
coded form, for later interpretation

4. Storage
One of the greatest benefits of using IT is the ability to store vast amounts of data and
information. Technically, storing a library of millions of volumes on magnetic or optical storage
media is feasible. Publishers, libraries, and governments have done tha

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Input
Processing
 Storage & Dissemination (Diffusion)

From IS to IS
 Information System

IS  computer systems

IS  reserved for IT specialists only

IS = necessary skills for managers

What’s new in Information System ?
Components of an Information System
 • Organisation of an IS

For Reix et al (2016) the IS is organised from several resources and working practices:

STAFF ACQUIRING INFORMATION

(specialists or users) (collect)

DATA PROCESS INFORMATION

(knowledge, models...) (transform)
INFORMATION
SYSTEM
For...
HARDWARE AND SOFTWARE STORE INFORMATION
(machines, programs) (keep)

WORKING PRACTICES COMMUNICATE INFORMATION

(methods, procedures, ...) (broadcast)

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Characteristics of useful information

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Information Systems in Organizations

In an organization, an information
system consists of data, hardware,
software, telecommuni- cations, people,
and procedures.
An information system has become
synonymous with a computer-based
information system, a system with one
or more computers at its center. In a
computer-based information system,
computers collect, store, and process
data into information according to
instructions people provide via
computer programs.

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The interdependence between Organizations and Information Systems
 Reasons for the importance of IS

Productivity : It is one of the most

important tools managers have to increase
productivity and efficiency of businesses

Strategic Opportunity and Advantage : Create

competitive advantage: IT makes it possible to develop
competitive advantages
Attributes of Information Quality
 • Strategic business objectives of IS

What are the links and differences between these different

organisations?

15 min 49
 Questions (in group 4 or 5 students)

Based on article, please answer the following questions :

1. What is an information system

2. The different stages in the information systems process

3. What is a marketing information system?

4. What role do information systems play in the marketing function?

5. How to explain the interdependence between information systems and the marketing function

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 • 6 major challenges

1. IS investment: how can companies generate value from their

IS?
2. Performance: senior managers are likely to ask "How can we
evaluate IS investments, as we do other types of
investments?", "Is the capital invested in our systems
producing the return it should?", "Are our competitors
doing better?"
3. The strategic challenge: what complementary assets do
companies need to use IS effectively?
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 • 6 major challenges

4. The challenge of globalisation: how can companies understand and

combine the competitive demands and potential of IS in a global
economy?
5. The Information Technology (IT) Infrastructure Challenge: Given the
rapidly changing economic and technological contexts and conditions,
how can organisations develop and implement an IT infrastructure that
supports and promotes their objectives in a sustainable and robust
manner?
6. The challenge of accountability and control, or ethics and security: how
can organisations ensure that their IS is used ethically and responsibly?
How can we design systems that users can understand and control?
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Categories of Information Systems Used in Organizations
Categories of Information Systems Used in Organizations
Summary
Summary
Summary
 Summary

❑ IS evolve with technology and adapt to

change organizational

❑ Recent trends have been towards

application integration and IS integration inter-
organizational.
 Teamwork

• How are information systems transforming business, and why are they
essential for running and managing a business today?
• What is an information system? How does it work? What are its
management, organization, and technology components?
• Why are complementary assets essential for ensuring that information
systems provide genuine value for organizations?