Management Information Systems

SESSION - 1
 CHAPTER-01

Topic-1
Information Systems in
Business Today
 Information Systems in Business Today
The Role of Information Systems in Business Today

How information systems are transforming business

• Emerging mobile digital platform
• Growing business use of “big data”
• Growth in cloud computing
Globalization opportunities
• Internet has drastically reduced costs of operating on global scale
• Increases in foreign trade, outsourcing
• Presents both challenges and opportunities
 Information Systems in Business Today
The Role of Information Systems in Business Today

In the emerging, fully digital firm:

• Significant business relationships are digitally enabled and
mediated.
• Core business processes are accomplished through digital
networks.
• Key corporate assets are managed digitally.
Digital firms offer greater flexibility in organization and
management.
• Time shifting, space shifting
 Information Systems in Business Today
The Role of Information Systems in Business Today

• Growing interdependence
between ability to use
information technology
and ability to implement
corporate strategies and
achieve corporate goals
• In contemporary systems there is a growing interdependence
between a firm’s ISs and its business capabilities.
• Changes in strategy, rules, and business processes increasingly
require changes in hardware, software, databases, and
telecommunications.
 Information Systems in Business Today
The Role of Information Systems in Business Today

Business firms invest heavily in information systems to

achieve six strategic business objectives:
1. Operational excellence
2. New products, services, and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Survival
 Information Systems in Business Today
The Role of Information Systems in Business Today

1. Operational excellence:
• Improvement of efficiency to attain higher profitability
• Information systems, technology an important tool in
achieving greater efficiency and productivity
• Wal-Mart’s Retail Link system links suppliers to stores for
superior replenishment system
 Information Systems in Business Today
The Role of Information Systems in Business Today

2. New products, services, and business models:

• Business model: describes how company produces,
delivers, and sells product or service to create wealth
• Information systems and technology a major enabling tool
for new products, services, business models
Examples: Apple’s iPad, Google’s Android OS, and Netflix
 Information Systems in Business Today
The Role of Information Systems in Business Today

3. Customer and supplier intimacy:

• Serving customers well leads to customers returning, which
raises revenues and profits.
• Example: High-end hotels that use computers to track
customer preferences and used to monitor and customize
environment
• Intimacy with suppliers allows them to provide vital inputs,
which lowers costs.
• Example: JCPenney’s information system which links sales
records to contract manufacturer
Information Systems in Business Today
The Role of Information Systems in Business Today
 Information Systems in Business Today
The Role of Information Systems in Business Today

5. Competitive advantage
• Delivering better performance
• Charging less for superior products
• Responding to customers and suppliers in
real time
• Examples: Apple, Wal-Mart, UPS
 Information Systems in Business Today
The Role of Information Systems in Business Today

6. Survival
• Information technologies as necessity of business
• Industry-level changes
• Example: Citibank’s introduction of ATMs
• Governmental regulations requiring record-keeping
• Examples: Toxic Substances Control Act, Sarbanes-Oxley Act
Management Information Systems
SESSION - 2
 CHAPTER-01

Topic-2
Perspectives on
Information Systems
 Information Systems in Business Today
Perspectives on Information Systems

Information system:
• Set of interrelated components
• Collect, process, store, and distribute information
• Support decision making, coordination, and control
Information vs. data
• Data are streams of raw facts.
• Information is data shaped into meaningful form.
 Information Systems in Business Today
Perspectives on Information Systems

Data and Information

Raw data from a
supermarket checkout
counter can be processed
and organized to produce
meaningful information,
such as the total unit sales
of shampoo or the total
sales revenue from
shampoo for a specific store
or sales territory
 Information Systems in Business Today
Perspectives on Information Systems

Three activities of information systems produce information

organizations need
• Input: Captures raw data from organization or external
environment
• Processing: Converts raw data into meaningful form
• Output: Transfers processed information to people or activities
that use it
 Information Systems in Business Today
Perspectives on Information Systems

Feedback:
Output is returned to appropriate members of organization
to help evaluate or correct input stage.
Computer/Computer program vs. information system
Computers and software are technical foundation and tools,
similar to the material and tools used to build a house.
 Information Systems in Business Today
Perspectives on Information Systems

Functions of an Information System

An IS contains information about an
organization and its surrounding environment.
Three basic activities—input, processing, and
output—produce the information organizations
need.
Feedback is output returned to appropriate
people or activities in the organization to
evaluate and refine the input. Environmental
actors, such as customers, suppliers,
competitors, stockholders, and regulatory
agencies, interact with the organization and its
information systems.
 Information Systems in Business Today
Perspectives on Information Systems

Information Systems Are More Than Computers

• Using information systems effectively
requires an understanding of the
organization, management, and
information technology shaping the
systems.
• An information system creates value for
the firm as an organizational and
management solution to challenges posed
by the environment.
 Information Systems in Business Today
Perspectives on Information Systems

DIMENSIONS OF INFORMATION Business organizations are

SYSTEMS hierarchies consisting of
Organizational dimension of ISs three principal levels: senior
Hierarchy of authority, responsibility management, middle
• Senior management management, and
• Middle management operational management.
• Operational management Information systems serve
• Knowledge workers each of these levels.
• Data workers Scientists and knowledge
• Production or service workers workers often work with
middle management.
 Information Systems in Business Today
Perspectives on Information Systems

Organizational dimension of information systems (cont.)

• Separation of business functions
• Sales and marketing
• Human resources
• Finance and accounting
• Manufacturing and production
• Unique business processes
• Unique business culture
• Organizational politics
 Information Systems in Business Today
Perspectives on Information Systems

Management dimension of information systems

Managers set organizational strategy for responding to
business challenges
In addition, managers must act creatively:
Creation of new products and services
Occasionally re-creating the organization
 Information Systems in Business Today
Perspectives on Information Systems

Technology dimension of information systems:

• Computer hardware and software
• Data management technology
• Networking and telecommunications technology
• Networks, the Internet, intranets and extranets, World Wide
Web
• IT infrastructure: provides platform that system is built on
 Information Systems in Business Today
Perspectives on Information Systems

Business perspective on information systems:

• Information system is instrument for creating value
• Investments in information technology will result in superior returns:
• Productivity increases
• Revenue increases
• Superior long-term strategic positioning
 Information Systems in Business Today
Perspectives on Information Systems

Complementary assets:
• Assets required to derive value from a primary investment
• Firms supporting technology investments with investment in
complementary assets receive superior returns
• Example: Invest in technology and the people to make it
work properly
 Information Systems in Business Today
Perspectives on Information Systems

Complementary assets include:

• Organizational assets, for example:
• Appropriate business model
• Efficient business processes
• Managerial assets, for example:
• Incentives for management innovation
• Teamwork and collaborative work environments
• Social assets, for example:
• The Internet and telecommunications infrastructure
• Technology standards
 CHAPTER-01

Topic-4
Contemporary
Approaches to ISs
 Information Systems in Business Today
Contemporary Approaches to ISs

Technical approach
• Emphasizes mathematically based models
• Computer science, management science,
operations research
Behavioral approach
• Behavioral issues (strategic business integration,
implementation, etc.)
• Psychology, economics, sociology
 Information Systems in Business Today
Contemporary Approaches to ISs

The study of
information systems
deals with issues and
insights contributed
from technical and
behavioral disciplines.
 Information Systems in Business Today
Contemporary Approaches to ISs

Management Information Systems

Combines computer science, management science, operations
research and practical orientation with behavioral issues
MIS – combination of four main factors
Suppliers of hardware and software
Business firms
Managers and employees
Firm’s environment (legal, social, cultural context)
 Information Systems in Business Today
Contemporary Approaches to ISs

Question-MIS

Reference chapter: Ch-1

Q1: Consider a company and explain the role of IS in business today.

Hint:
i. Explain how information systems are transforming business
ii. What and how the business is getting globalization opportunities.
Q2: How Business firms use information systems to achieve six strategic business objectives?
Q3: Draw and explain in detail the dimensions of information systems
Q4: Draw and explain in detail the contemporary approaches to information systems
Hint: You are required to explain the following along with their all sub-components
i. Technical approach
ii. Behavioral approach
Lesson of the day
for the intelligent
people

THANK
 Video Links (if any)

The single biggest reason why

Topic/Unit 1 https://www.youtube.com/watch?v=bNpx7gpSqbY
start-ups succeed | Bill Gross
 Online Article Links (if any

Which Strategy When? |

Topic/Unit 1 https://sloanreview.mit.edu/article/which-strategy
Christopher et al.
-when/
Class Exercises/Activities (if an