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Chapter 1 MIS

The document discusses the importance of Management Information Systems (MIS) in global business, highlighting the definitions and components of information systems, including data, information, and knowledge. It outlines the strategic objectives driving the use of IS, such as operational excellence, new business models, customer intimacy, improved decision-making, competitive advantage, and survival. Additionally, it emphasizes the need for complementary assets, including organizational and managerial support, to ensure successful implementation and return on technology investments.

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Zeyneb Jaghmoun
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7 views3 pages

Chapter 1 MIS

The document discusses the importance of Management Information Systems (MIS) in global business, highlighting the definitions and components of information systems, including data, information, and knowledge. It outlines the strategic objectives driving the use of IS, such as operational excellence, new business models, customer intimacy, improved decision-making, competitive advantage, and survival. Additionally, it emphasizes the need for complementary assets, including organizational and managerial support, to ensure successful implementation and return on technology investments.

Uploaded by

Zeyneb Jaghmoun
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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MIS:Management Information Systems

Chapter 1 : Information Systems in Global Business Today

Information Concepts What Is an Information System?


• From a Technical perspective:
• DATA: Raw facts with no precise context or ✓ Components that work together to process

meaning data and produce information.


✓ Collects, stores, and disseminates
Information.
• INFORMATION: refined, organized, meaningful,
✓ Transform raw data into useful Information
and useful data. To become an information, data
through three basic activities: Input, Processing
is processed by summing, ordering, averaging,
and Output
grouping, comparing, etc.
• From a Business perspective
• KNOWLEDGE: A contextual information based on ✓ An IS uses information from a firm's external

expert insight and experience-based intuition. It environment and internal operations to support
organizational functions and help managers
originates in the minds of people and their ability
solve problems and make decisions and
to compare situations, problems, and solutions. It
provide real economic value to the business.
allows predictions, unlike information which
simply gives us the facts.

Types of Data

The components of an IS
• Hardware: computer equipment used to
manage information
Characteristics of Valuable Information • Software: computer programs that
• Relevant: important to decision making govern the hardware
• Complete : contain all the important facts. • Database: with a database, the collected
• Accurate: error free. data is stored and organized.
• Current/Timely: delivered when needed. Examples of databases include employee
• Economical: it’s value is bigger than it’s cost records and product catalogues.
• Accessible: can be obtained in the right format • Telecommunications, networks, and the
and time Internet
• People: The most important element in
an IS
• Procedures: strategies, policies,methods,
and rules for using the IS.

Yesmine Chalgham 1
MIS:Management Information Systems

What makes IS so essential today? Organizational dimensions


• The main strategic business objectives • IS are part of a broader organization.
driving the use of IS and technologies are: The organization is a combination of key
1. Operational excellence factors which are people, structure, business
Does things better than competitors or better than previously done •
processes, politics, and culture.
Minimizes waste, repetition and errors • Identifies and solves
problems quickly • Continually improves the way things are done •
Maximizes productivity, etc
People
2. New products, services, and business Senior managers, for example, need an IS that deals with
models unstructured decisions and summarized reports.
Ex: the shift from the “brick and mortar” model to the online
marketplace model (Uber, Lyft, Fiverr) or to the online retailer model
(Alibaba, Amazon). The shift from the purchase model to the Structure
transaction/rental model (Netflix,Airbnb, cloud computing…) For every functional area in every management level, a
3. Customer and supplier intimacy different IS is required to fulfill the unique information
• IS enhances the shopping experience. In an online retailer website, requirement.
buyers can select a particular product display based on best-selling
items, price range and customer ratings.
• IS allows businesses to share real time data with suppliers so they Business Processes
can determine the inventory needed, reorder with their suppliers, IS can help firms achieve great efficiencies by automating
track and receive shipments in a timely way which results in lowering
parts of these processes or by helping firms redesign and
costs.
reorganize them. Unique IS are required to perform such
4. Improved decision making
business processes.
Verizon Corporation, a large telecommunication company in US,
uses a digital dashboard to provide managers with real-time
information on customer complaints, network performance for each
locality, and line outages or storm-damaged lines. Using this
information, managers can immediately allocate repair resources to
affected areas, inform consumers of repair efforts, and restore
service fast.

5. Competitive advantage
Michael Porter presents 3 competitive
strategies: cost leadership, differentiation and Politics, and culture.
focus niche. IS comes out of this cauldron of differing perspectives,

6. Survival conflicts, compromises, and agreements that are a natural

For instance, after Citibank introduced the first automated teller


part of all organizations.
machines (ATMs) in 1977 to attract customers through higher service
levels, its competitors rushed to provideATMs to their customers to
keep up with Citibank

Management
Dimensions of Information Systems Even an IS with many capabilities is not a
workable solution if managers are not willing
to accept it.

Technology
Technology infrastructure is the real
foundation of any IS.
If the required technology infrastructure is not
available, then the implementation of an
information system is not possible. For
example, a slow internet connection will not
support quick analytical processing so
delaying the decision making.

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MIS:Management Information Systems

It Isn’t Just Technology: A Business Perspective on Information Systems

Invest in technology and the people to make it


work properly!
Investing in IT does not guarantee good returns.
Firms must also support their technology
investments with appropriate changes in
organization and management. These investments
are called complementary assets.

• Complementary assets include


• Organizational assets
✓ Supportive culture that values efficiency and effectiveness
✓ Appropriate business model
✓ Efficient business processes
✓ Decentralized authority

• Managerial assets
✓ Strong senior management support for technology investment and change
✓ Incentives for management innovation
✓ Teamwork and collaborative work environments

Yesmine Chalgham 3

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