MIS CHAPTER SUMMARY QUESTIONS AND ANSWERS

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MIS CHAPTER SUMMARYQUESTIONS AND ANSWERS
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MANAGEMENT INFORMATION SYSTEMS

• SUMMARY ( LECTURE NOTES 1 Information
  Systems in Global Business Today)
• 1. Explain why Information Systems are so
  essential in business today.
• Information Systems are fundamental for
  conducting Business today.
• In many industries, survival and even existence
  is difficult without extensive use of Information
  Systems.
• Information Systems have become essential for
  helping organizations operate in a global
  economy.
• Organization are trying to become more
  competitive and efficient by transforming
  themselves into Digital Firms where nearly all
  core business processes and relationship with
  customers, suppliers, and employees are digitally
  enabled.
• Business today use Information Systems to achieve
  six major objectives
• 1. Operational excellence
  4. Improved Decision
  making
• 2. New product, Services Business
  models 5. Competitive advantage
• 3. Customer / Supplier intimacy
  6. Day-to-day survival

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MANAGEMENT INFORMATION SYSTEMS

• 2. Define an Information System from both
  Technical and Business perspective
• From a Technical perspective
• An Information System collects, stores, and
  disseminates Information from an organizations
  environment and internal operations to support
  organizational functions and decision making,
  communication, coordination, control, Analysis
  and visualization.
• Information Systems transform raw data into
  useful Information through three basic
  activities Input, Processing and Output
• From a Business perspective
• An Information System provides a solution to a
  problem or challenge facing a firm and provides
  real economic value to the business.

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MANAGEMENT INFORMATION SYSTEMS

• 3. Identify and describe the three dimensions of
  Information Systems
• An Information System represents a
  combination of Management,
• Organization, and Technology elements.
• The Management Dimension involves
• Leadership,
• Strategy,
• Management behaviour.
• The Organization Dimension involves
• Organizations hierarchy,
• Functional specialities,
• Business Processes,
• Culture,
• Political interest groups
• The Technology Dimension consists of
• Computer Hardware,
• Software,

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MANAGEMENT INFORMATION SYSTEMS

• 4. Asses the Complementary Assets required for
  I.T to provide value to a Business
• An Information System is part of a series of
  Value-adding activities for acquiring,
  transforming and distributing Information to
  improve Management decision making, enhance
  Organizational performance, and ultimately
  Increase firm profitability
• IT cannot provide this Value unless it is
  accompanied by supportive changes in Organization
  and Management called Complementary Assets
• These Complementary Assets include
• New Business Models
• New Business Processes
• Supportive Organizational Culture
• Incentives for Management Support and innovations
• Training
• Social Assets (Such as Standards, Laws and
  Regulations),
• Telecommunications infrastructure.
• Firms that make appropriate investments in these
  complementary Assets, also called Organizational
  and Management Capital, receive superior returns
  on their IT Investment.

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MANAGEMENT INFORMATION SYSTEMS

• 5. Identify and describe contemporary approaches
  to the Study of Information Systems
• and distinguish between Computer Literacy
  and Information Systems Literacy.
• The study of Information Systems deals with
  issues and insights contributed from Technical
  and Behavioural disciplines.
• The Discipline that contributes to Technical
  approach are
• Computer Science
• Management Science
• Operational Research
• The Discipline that contributes to Behavioural
  Approach are
• Psychology
• Sociology
• Economics
• Information Systems Literacy requires an
  understanding of the Organizational and
  Management dimensions of Information Systems, as
  well as Technical dimensions addressed by
  Computer Literacy.

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MANAGEMENT INFORMATION SYSTEMS

• SUMMARY ( LECTURE NOTES 2 How Business Use
  Information Systems?)
• 1. Define and describe Business Processes and
  their relationship to Information Systems.
• A Business Process is a logically related set of
  activities that define how specific Business
  tasks are performed, and a Business can be viewed
  as a collection of Business Processes.
• Business Processes are concrete flows of
  Material, Information and Knowledge
• Business Processes represent unique ways in which
  organizations coordinate Work, Information, and
  Knowledge, and the ways to which Management
  chooses to coordinate work.
• Managers need to pay attention to Business
  Processes because they determine how well the
  organization can execute its business, and thus
  be a potential source of strategic success or
  failure.
• Each major Business functions has its own set of
  Business processes (such Processes for Production
  function) however there are many business
  processes which are cross-functional such as
  order fulfilment.
• Information Systems can help organizations
  achieve great efficiencies by automating parts of
  these processes or by helping Organizations
  redesign and streamlining them.
• Firms can become more flexible and efficient by
  coordinating their Business Processes closely,
  and in some cases, integrating thesePprocesses so
  they are focused on efficient management of
  resources and customer service.

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MANAGEMENT INFORMATION SYSTEMS

• SUMMARY
• 2. Describe the Information Systems supporting
  the major business functions
• At each level of Organization, Information
  Systems support the major
• Functional areas of the Business
• Sales and Marketing Systems
• Help the firm identify Customers for firms
  Products or Services,
• Develop Products and Services to meet Customer's
  needs
• Promote the Products and Services
• Sell the Product and Services
• Provide ongoing Customer support
• Manufacturing and Production Systems
• Deals with Production Planning
• Development
• Production of Products and Services
• Control the flow of Production

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MANAGEMENT INFORMATION SYSTEMS

• SUMMARY
• Finance and Accounting Systems
• Keeps firms Financial assets and fund flows
• Human Resources Systems
• Maintain Employee records
• Track Employee skills, Job performance, and
  Training
• Support planning for Employee compensation and
  career development

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MANAGEMENT INFORMATION SYSTEMS

• SUMMARY
• 3. Evaluate the Role Played by System Serving the
  Various Levels of Management
• in Business and their relationship to each
  other.
• There are four major types of Information Systems
  in contemporary organizations serving
• Operational Management
• Middle Management
• Senior Management
• 1. Transaction Processing Systems (TPS)
• Serve Operational Management . Such as
  Payroll or Order Processing Systems
• that track the flow of daily routine
  transactions necessary to conduct business.
• 2. Management Information Systems (MIS)
• Provide Middle management with reports and
  access to the organizations
• current performance and historical records.
• Most MIS reports condense information from TPS
  and are not highly analytical.

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MANAGEMENT INFORMATION SYSTEMS

• SUMMARY
• 3. Decision Support Systems (DSS)
• DSS supports Management
  decisions when these decisions are
  unique, rapidly changing, and not specified
  easily in advanced.
• DSS have more advanced
  Analytical models and Data analysis
  capabilities than MIS and often draw on
  information from external as well as
  internal sources.
• 4. Executive Support Systems (ESS)
• Support Executive Management
  by providing data of greatest
  importance to senior Management Decision makers,
  often in the form of graphs and
  charts delivered via portals.
• ESS have limited Analytical
  capabilities but can draw on
  sophisticated graphics Software and many sources
  of internal and external
  information.

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MANAGEMENT INFORMATION SYSTEMS

• SUMMARY
• 4. Explain how Enterprise Applications and
  Intranets promotes Business
• Process Integration and improve
  organizational performance
• Enterprise Applications
• These Systems are designed to support
  organizational wide process
• coordination and integration so that the
  organization can operate efficiently
• Such Enterprise Systems are
• Enterprise Systems
• Supply Chain Management Systems
• Customer Relationship Systems
• Knowledge Management Systems
• Enterprise Systems
• Span multiple functions and business processes
  and may be tied to the Business Processes
• of other organizations

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MANAGEMENT INFORMATION SYSTEMS

• SUMMARY
• Supply Chain Management Systems
• Help the firm manage its relationship with
  supplier to optimize the Planning, Sourcing,
• Manufacturing, and Delivering of Products and
  Services.
• Customer Relationship Management
• Uses Information Systems to coordinate all
  the Business Processes surrounding the
• firms interactions with its Customers to
  optimize firms Revenue and Customer
• satisfaction
• Knowledge Management Systems
• Enable firms to optimize the creation,
  sharing, and distribution of knowledge to
• improve Business Processes and Management
  decisions
• Intranets and Extranets both use Internet
  technology and standards to assemble

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MANAGEMENT INFORMATION SYSTEMS

• SUMMARY
• 5. Asses the role of Information Systems
  Function in a Business
• The Information Systems Department is the
  formal Organizational unit responsible for IT
  Services.
• The IS Department is responsible for
  maintaining the Computer Hardware, Software,
  Data
• Storage, and Network that comprise the
  firms IT Infrastructure.
• The Department is consisted of
  Specialists, such as Software Engineers, Systems
  Analysts, Programmers, Project Web Designers,
  Project Managers, Systems Managers and is often
  headed by a Chief Executive Officer (CIO).
• Alternative ways of Organizing the IT
  Function
• A very small company will not have a formal IS
  group.
• Larger Companies will have a separate IS
  Department.
• Each Functional Area of the Business may have its
  own IS Department, overseen by a CIO.
• The IT function may be run as a separate
  Department similar to other Functional department

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MANAGEMENT INFORMATION SYSTEMS

• SUMMARY (LECTURE NOTES 3 - Information Systems,
  Organizations and Strategies)
• 1. Identify and describe features of
  organizations that managers need to know about in
  order to build and use Information Systems
  successfully.
• Managers need to understand certain
  essential features to build and use Information
• Systems successfully.
• All modern Organizations are hierarchical,
  specialized, and, impartial, using explicit
• routines to maximize efficiency. All
  Organizations have their culture and Politics
• arising from differences in interest
  groups, and they are affected by their
  surrounding
• environment.
• Organizations differs in goals, groups
  served, social roles, leadership styles,
  incentives,
• types of tasks performed, and type
  structure. These features help explain
  differences in
• organization's use of Information Systems.

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MANAGEMENT INFORMATION SYSTEMS

• SUMMARY
• 2. Evaluate the impact of Information Systems on
  Organizations
• Information Systems and the Organizations in
  which they are used interact with and
• influence each other.
• The introduction of a new Information System
  will affect Organizational Structure,
• goals, Work design, values, Competition
  between interest groups, Decision making, and
• day-to-day behaviour.
• At the same time, Information Systems must be
  designed to serve the needs of important
• organizational groups and will be shaped by
  the organizations structure, tasks, goals,
• culture, Politics, and Management. IT can
  reduce transaction and agency costs, and such
• changes have been accentuated in
  Organizations sing the Internet.
• Information Systems are closely intertwined
  with an organizations structure, Culture,
• and Business Processes. New Systems disrupts
  established patterns of work and power
• relationships. So there is often considerable
  résistance to them when they are introduced.

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MANAGEMENT INFORMATION SYSTEMS

• SUMMARY
• 3. Demonstrate how Porters Competitive Forces
  Model and the Value Chain
• Model help Businesses use Information
  Systems for Competitive Advantage.
• The Strategic position of the firm, and its
  strategies, are determined by competition with
• its traditional direct competitors but also
  they are greatly affected by
• New market entrants,
• Substitute products and services,
• Suppliers,
• Customers.
• Information Systems help companies compete by
  maintaining low cost, differentiating
• products or services, focusing on market
  niche, strengthening ties with Customer and
• Suppliers, and increasing barriers to market
  entry with high levels of Operational
• excellence.
• The Value Chain Model highlights specific
  activities in the business where Competitive
• strategies and Information Systems will have
  the greatest impact.

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MANAGEMENT INFORMATION SYSTEMS

• SUMMARY
• The Porters Competitive Forces Model views
  the firm as a series of primary and
• support activities that add value to a
  firms products or services.
• Primary activities are directly related to
  production and distribution, whereas support
• activities make the delivery of primary
  activities possible.
• A Firms Value Chain can be linked to that
  value chains of its Suppliers, Distributors,
• and Customers.
• A Value Web consist of Information Systems
  that enhance competitiveness at the
• Industry level by promoting the use of
  standards and industry-wide consortia, and by
• enabling businesses to work more efficiently
  with their value partners.

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MANAGEMENT INFORMATION SYSTEMS

• SUMMARY
• 4. Demonstrate how Information Systems help
  Business use Synergies, Core Competences,
• and Network-based Strategies to achieve
  Competitive Advantages.
• Because firms consists multiple business
  units, Information Systems achieve additional
• efficiencies or enhanced services by trying
  together the operations of disparate business
• units.
• Information Systems help businesses leverage
  their core competences by promoting the
• sharing of knowledge across business units.
• Information Systems facilitate Business Models
  based on large Networks of Networks to
• link to other firms so that a company can use
  the capabilities of other companies to
• together to deliver value to the customer.
• Information Systems support a dense Network of
  interactioms among the participating
• firms.

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MANAGEMENT INFORMATION SYSTEMS

• SUMMARY
• 5. Asses the challenges posed by Strategic
  Information Systems and Management
• solutions.
• Implementing Strategic Systems often
  requires extensive organizational change and a
• transition from one Sociotechnical level to
  another.
• Such changes are called Strategic Transitions and
  are often difficult and painful to achieve.
  Moreover, not all Strategic Systems are
  profitable, and they can be expensive to build.
• Many Strategic Information Systems are easily
  copied by other firms so that strategic
• advantage is not always sustainable. A
  strategic Systems Analysis is helpful.

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MANAGEMENT INFORMATION SYSTEMS

• SUMMARY (LECTURE NOTES 4 Foundations of
  Business Intelligence)
• 1. Evaluate Tools and Technologies for providing
  Information from Databases to improve
• Business Performance and Decision making.
• Powerful tools are available to analyze and
  access the Information in Databases.
• A Data warehouse consolidates current and
  historical data from many different Operational
  Systems
• in a central Database designed for reporting
  and Analysis.
• Data Warehouse support multidimensional data
  analysis, also known as Online Analytical
• Processing (OLAP).
• OLAP represents relationships among data as a
  multidimensional structure, which can be
• visualized as cubes of data and cubes within
  cubes of data, enabling more sophisticated Data
• Analysis.
• Data Mining analyzes large pools of data,
  including the contents of Data Warehouses, to
  find
• patterns and rules that can be used to
  predict future behaviour and Decision making.
  Conventional

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MANAGEMENT INFORMATION SYSTEMS

• SUMMARY
• 2. Asses the role of Information Policy, Data
  Administration, and Data quality assurance in
• the Management of Organizational Data
  resources.
• Developing a Database environment requires
  Policies and Procedures for managing
  Organizational
• data as well as a good Data Model and
  Database Technology.
• A formal Information Policy govern the
  Maintenance, Distribution, and use of
  Information in the
• organization.
• In a large corporations, a formal Data
  Administration function is responsible for
  Information
• Policy, as well as for data Planning, Data
  Dictionary development, and monitoring data usage
  in
• the firm.
• Data that are inaccurate, incomplete, or
  inconsistent create serious Operational and
  Financial
• problems for business because they may
  create inaccuracies in Product pricing, Customer
  accounts,
• and Inventory data, and leads to inaccurate
  decisions about the actions that should be taken
  by the
• firm.

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MANAGEMENT INFORMATION SYSTEMS

• SUMMARY (LECTURE NOTES 5 IT Infrastructure
  and Emerging Technologies)
• 1.