Are you in the right room

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Are you in the right room

• Course Code CSC 491
• Course Title Management Information System
• Instructor Asif Iqbal
• Day Monday
• Timing2.154.45 pm
• Date week1 2004

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Overview of todays class

• Administrative Information.
• Overview of the course.
• Information Systems
• Summary(student)
• Class homepage
• http//groups.yahoo.com/group/biztekcsc491

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A Brief Introduction

• Name Asif Iqbal
• Qualification B.E.(E) NED
• MS (CSC) DePaul
• Major Data Communication
• Minor Software Engineering
• Professional exp

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Contact Information

• Instructor Asif Iqbal
• Email asif_iqbal20_at_msn.com
• Phone [phone]
• Office Faculty Office(see front desk)
• Class hours2.15 to 4.45pm
• I prefer communication via email
• I check email couple of times a day
• I will send email to the class in the event of
  last minute changes or announcement

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Attendance

• You must attend the midterm and the final exam.
• Quiz1 will be held on 4th week last hour of the
  class
• Midterm will be held on 8th week (No Class)
• Quiz2 will be held on 12th week last hour of the
  class
• Final Exam will be held on ?th( look event sheet)
  week

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Assessment

• Your final grade will be based on
• Quiz (1 2) 10
• mid-term 20
• Class participation 10
• Assignments presentation 20
• Final Exam 40
• Total
  100
• There will be no extra credit homework

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Textbook

• Required Management Information Systems
• New approaches to Organization Technology
• by Kenneth C. Laudon Jane P. Laudon
• (5th edition)

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Expectations

• The course requires that you actively engage the
  material on your own.you should not only read the
  book ,but also search the web.
• Spend at least a few hours a week just playing
  with the Internet to search information of your
  interest field ,how information systems can help
  improve your organization interests.

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Tell me about yourself

• Pass on a paper
• Name
• Career
• Email address
• What are future plans

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Course Overview

• A managerial approach to Information Technology
  concepts
• The need and significance of Information Systems
  in an Organization
• Different programming languages
• Database
• To help managers to manage Take Decisions on
  time with highest level of accuracy
• Transaction Process Systems (TPS)
• Management Information Systems (MIS)
• Decision Support Systems (DSS)

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Why Information Systems?

• The management process was considered a
  face-to-face ,personal art and not a Global
  coordination process.
• But today a few managers can afford to ignore how
  information is handled by their organization
• In 1872, Montgomery Ward Co. launched the first
  mail-order catalogue in the united
  states,offering home goods to tens of thousands
  of people living in small towns and on farms.
• 125 years later Gary Baker electronic onestop
  shop on the internet will have similar impact on
  the digital world.
• Baker created the Catalog Site on the World Wide
  Web as an electronic mall for companies selling
  their merchandise through catalogues

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• Found catalogues in his mail box
• He concluded that mailing telephone book size
  catalogues is not efficient or cost-effective way
  to do business
• Let people use networked information systems to
  do the walking

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• The catalog site lists more than 200 companies
  that sell their wares through either on-line or
  traditional print catalogues
• Visitors can search for the goods they want by
  product type
• Or scroll through this list of tenants
• They select the company in which they are
  interested
• They are taken to a templated storefront (front
  side)
• Offering telephone numbers, store hours,types of
  payments accepted and other essential information

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• They can then link to the companys own web site
  on the WWW to see its electronic catalogue of
  goods
• If the company does not have a web site,they can
  order a free paper catalogue by filling out an
  on-line order form
• The visitor receives an order reference number
  for the catalogue order
• Visitors can view the summary of the orders
• Visitors can also preview paper catalogue,find
  out what items are on sale, order gift
  certificates, or sign up for a biweekly email
  news letter

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• The catalog site offers clients four basic level
  of marketing service.
• an electronic order form for the companys paper
  catalogue and a single Web page
• an additional Web page for the company to display
  its products
• on-line ordering facility for the clients
  products themselves and
• an automatic link to the clients Web site.
• Basic service costs between 1200 and 1500 per
  year

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What Baker Needed

• Sun Microsystems Inc.,
• SPARCstation 5 workstation computer
• Two pieces of software from ICat Corporation
• One is Commerce Publisher, for catalogue
  creation
• other is Commerce Exchange,for secure credit card
  transactions
• Third software is Netscape Secure Server for
  sorting thousands of orders for print catalogues
  and gift certificates

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What Baker Got!

• In June 1995,its 30 clients received 2500
  catalogue requests per week
• The number of requests has climbed to 17,000 per
  week
• Each week 60,000 people visits the Web site to
  look around

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Conclusion

• Innovative use of the Internet demonstrate how
  information systems can create new business
  opportunities for both small and large
  companies,helping them compete in todays Global
  business environment.
• Information Systems allow companies to extend
  their reach to faraway locations,reshape jobs and
  work flows, and perhaps change the way they do
  business
• Understanding of I.S. is essential for todays
  managers because most organization need
  information systems to survive and prosper

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The competitive business environment

• Three powerful worldwide changes have altered the
  environment of business
• The first change is the emergence and
  strengthening of the global economy
• The second change is the transformation of
  industrial economies and societies into knowledge
  and information-based service economies
• The third is the transformation of the business
  enterprise
• These pose new challenges to business firms and
  their management

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1Globalization

• Management and control in a global marketplace
• Competition in world markets
• Global work groups
• Global delivery systems

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1Emergence of the Global economy

• Advanced industrial economies in USA,Europe, and
  Asia depends on imports and exports
• Foreign trade ,both exports and imports, accounts
  for approximately 25 of the goods and service
  produced in the US,even more in Japan and Germany
• This percentage will grow
• The success of firms today and in future depends
  on their ability to operate globally
• Information systems provide the communication and
  analytic power that firms need for conducting
  trade and managing business on a global scale
• Globalization and IS bring new threats to
  domestic business firms
• Customers now can shop in a worldwide
  marketplace, obtaining price and quality
  information reliably,24 hours a day
• This heightens competition and forces firms to
  play in open, unprotected worldwide markets
• To be effective and profitable in international
  markets, firms need powerful Information and
  communication systems

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2Transformation of Industrial Economies

• Knowledge- and information-based economies
• Productivity
• New products and services
• Knowledge a central productive and strategic
  asset
• Time-based competition
• Shorter product life
• Turbulent environment
• Limited employee knowledge base

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2Transformation of Industrial Economies

• The US,Japan, Germany, and other major industrial
  powers are experiencing a third economic
  revolution
• First revolution the US had by 1890 transformed
  itself from a colonial backwater to an agrarian
  powerhouse capable of feeding large segments of
  the world population
• Second revolutionthe US had by 1920 transformed
  itself from agrarian society to industrial power
• Third revolution it is transforming into a
  knowledge- and information-based service economy
  while manufacturing has moved to low-wage
  countries
• Knowledge and information are key ingredients in
  making wealth
• In 1976 number of white-collar workers employed
  in offices surpassed the number of farm workers,
  service workers, and blue-collar workers employed
  in manufacturing
• Today most people are working in sales,
  education,health care,banks, insurance firms

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• Knowledge-and information-intense products
  products that require a great deal of learning
  and knowledge to produce
• Example computer games, automobile industry,
  environmental engineering firms
• Hiring of computer specialist, engineers, and
  designers
• Reduction of blue-collar production workers
• Knowledge-based products and services of great
  economic value such as credit cards, overnight
  package delivery, and worldwide reservation
  systems are based on new information technologies

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3Transformation of the business enterprise

• Flattening
• Decentralization
• Flexibility
• Location independence
• Low transaction and coordination costs
• Empowerment
• Collaborative work and teamwork

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3 transformation of the business enterprise

• The third major change in the business
  environment is the very nature of organization
  and management
• Transformation in the possibilities for
  organizing and managing
• Traditional business firm was and still is a
  hierarchical , centralized, structured
  arrangement of specialists that typically relies
  on a fixed set of standard operating procedures
  to deliver a mass-produced product or service
• The new style of business firm is a
  flattened,decentralized,flexible arrangement of
  generalist who rely on nearly instant information
  to deliver mass-customized products and services
  uniquely suited to specific markets or customers
• The traditional managers relied and still does on
  formal plans,formal rules
• The new manager relies on informal commitments
  and networks to establish goals(rather than
  formal planning), a flexible arrangement of teams
  and individuals working in task forces
• A customer orientation to achieve coordination
  among employees
• Appeals to professionalism and knowledge to
  ensure proper operation of the firm

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Information System?

• It is a set of interrelated elements or
  components that collect (input), manipulate and
  store (processing), and disseminate (output) data
  and information as well as feedback mechanism
  

processing
input
output
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Information System / Input

• Input input is the activity of capturing and
  gathering raw data.
• Paychecks no of hours worked for every employee
  must be collected before they can be printed
• Students grade must be collected from
  instructors for total summary of grades

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Information System / Processing

• Transforming raw data into useful outputs
• Manual and Automatic processing
• Gross pay hrs weekly hourly pay rate
• Overtime pay if hrs weekly gt 40 hrs
• Federal and state taxes

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Information System /Output

• Output involves useful information, usually in
  the form of documents and reports
• Paycheck for employees, reports for managers.
• Output can be produced in a variety of ways
  computers, printers and monitors

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Information System / Feedback

• It is an output that is used to make adjustments
  or changes to input or processing activities
• Errors

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Manual And Computerized Information Systems

• Some investment analysts manually draw charts and
  trend lines to help them make investment
  decisions.
• Many computer systems have been developed to
  follow stock indexes and markets and to suggest
  when stocks should be purchased or sold

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• Many Information Systems begin as manual systems
  and become computerized.
• U.S. Postal Service Sorts Mail
• Previously visually scanned by employees
• to determine ZIP code and place in
  appropriate bin
• Today bar-coded address read Electronically

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Computer-Based Information Systems (CBIS)

• A set of Hardware,Software,Database,Telecommunicat
  ion,People,and Procedures
• To Collect ,Process,Store data into Information.
• Examples
• companys payroll system,
• order entry system, and
• inventory control system

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Components Of A Computer-Based Information
Systems (CBIS)

• Hardware
• Softwaresystem and application
• Databaseorganized collection of facts Info
• Telecommunicationselectronic transmission of
  signals for communication
• Networksinterconnected devices for electronic
  communication
• Internet,Intranet,extranet
• People manage , run , program ,maintain Systems
• Proceduresstrategies,policies,methods,rules for
  using CBIS

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Key Concepts

• Data data consists of raw facts, such as an
  employees name and number of hours worked in a
  week
• Information 1 A collection of facts organized in
  such a way that they have additional value of the
  facts themselves
• Information 2 Data that have been shaped into a
  form that is meaningful and useful to human
  beings

Information process
Information
Data
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The characteristics of Good Information

• To be valuable to managers and decision
  makers,information should have the following
  characteristics.
• Accurate Accurate information is error free.In
  some cases, inaccurate information is generated
  because inaccurate data is fed into
  transformation process.This is called garbage in
  garbage out (GIGO)

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The characteristics of Good Information

• Complete complete information contains all of
  the important facts.For examples,an investment
  report that does not include all important costs
  is not complete.
• Economical information should also be relatively
  economical to produce.Decision makers must always
  balance the value of information with the cost of
  producing it.

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The Characteristics of Good Information

• Reliable Reliable information can be dependent
  on.In many case,the reliability of the
  information depends on the reliability of the
  data collection methods.
• It depends on the source of the information
• A rumor from unknown source that oil prices might
  go up may not be reliable.

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The Characteristics of Good Information

• Relevant relevant information is important to
  the managers and decision makers
• Information that cotton price may drop not be
  relevant to a computer chip manufacturer.

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The Characteristics of Good Information

• Simple Information should also be simple and
  not complex.
• Sophisticated and detailed information may not be
  needed.
• In fact,too much information can cause
  information overload,where a decision maker has
  too much information and is unable to determine
  what is really important.

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The Characteristics of Good Information

• Timely
• Timely information is fresh and new
• Knowing last week weather conditions is not as
  important as what the weather is today.

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The Characteristics of Good Information

• Verifiable
• Finally,information should be verifiable.
• This means that you can check it to make sure it
  is correct,perhaps by checking many sources for
  the same information.

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The Characteristics of Good Information

• Flexible
• Can be used for different purposes for example
• Sales representative How much inventory is on
  hand for a particular part for closing a sale
• Production Manager to determine whether more
  inventory is needed
• Financial Executive total value the company has
  invested

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The Characteristics of Good Information

• Accessible Should be easily accessible by
  authorized users in the right format
• Secure secure from access by unauthorized users.

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Business perspective on IS

• From a business perspective, an IS is an
  organizational and management solution, based on
  information technology, to a challenge posed by
  the environment
• This definition emphasizes the organizational and
  management nature of IS
• Information systems literate, a manager must
  understand the broader organization, management,
  and information technology dimensions of systems
  and their power to provide solutions to
  challenges and problems in the business
  environment

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Information System are more than computers
Organizations Technology Management
Information systems
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Organizations

• Information Systems are a part of organizations
• For some companies,such as credit reporting
  firms, without the system there would be no
  business
• Key elements of organizations are its
  people,structure and operating procedures,politics
  , and culture
• Formal organizations are composed of different
  levels and specialties
• Their structures define a clear-cut division of
  labor
• Experts are employed and trained for different
  functions,example sales and marketing,manufacturi
  ng,finance, accounting, and human resources
• An organization coordinates work through a
  structured hierarchy and formal,standard
  operating procedures(SOPs)
• The hierarchy arranges people in a pyramidal
  structure of rising authority and
  responsibilities
• Upper levels managerial, professional, and
  technical employees
• Lower levels operational personnel

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Major Organizational Functions
Function Purpose
Sales and marketing Selling the organizations products and services
Manufacturing Producing products and services
Finance Managing the organizations financial assets(cash,stocks,bonds)
Accounting Maintaining the organizations financial records(receipts,disbursement,paychecks
Human resources Attracting,developing, and maintaining the organizations labor force,maintaining employees records
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Standard Operating Procedures(SOPs)

• All ORGs., over time , stabilize to produce a
  given number of products and services.
• Over periods of time,orgs that survive become
  very efficient by following standards routines.
• In this time, employees develop reasonably
  precise rules, procedures, and practice called
  SOPs to cope with virtually all expected
  situations.
• Some of these rules and procedures are written
  down as formal procedures
• But most are rules of thumb to be followed in
  selected situations

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Types of workers in ORG

• Knowledge workers people such as engineers or
  architects who design products or services and
  create knowledge for the organization
• Data workers people such as secretaries,clerks,
  or bookkeepers who process an organizations
  paper work
• Production or service workers people who
  actually produce the products or services of the
  organization

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MANAGERS

• WHO ARE MANAGERS
• DECISION MAKING AND MANAGERS
• HOW INFORMATION SYSTEM SUPPORTS

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WHO ARE MANAGERS

• MANAGERS PLAY A KEY ROLE IN AN ORGANISATION.
• They must be creativeto develop novel solutions
  to a broad range of problems
• THEY PERFORM SEVERAL FUNCTIONS INCLUDING
  PLANNING,ORGANISING,CO-ORDINATING,DECIDING AND
  CONTROLLING.
• IN OTHER WORDS WE CAN SAY THAT MANAGERS BASICALLY
  PERFORM DECISION MAKING BECAUSE ALL OTHER
  FUNCTIONS OR RESPONSIBILITIES WHICH ARE EXPECTED
  TO BE PERFORMED BY THE MANAGERS ARE INTERTIED.
• Managers must also create new products and
  services
• Even recreate organization from time to time

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MANAGERS AND DECISION MAKING

• USUALLY MANAGERS ARE SUPPOSE TO
• MAKE THREE TYPE OF DECISIONS.
• STRUCTURED.
• UNSTRUCTURED.
• SEMISTRUCTURED.
• STRUCTURED DECISIONS
• MADE ACCORDING TO SPECIFIED PROCEDURES.
• PREDEFINED SET OF RULES AND STANDARDS FOR
• SOLUTION.

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UN STRUCTURED DECISION

• INVOLVES A HIGH DEGREE OF FREEDOM AND NO
  PRECEDENT.
• MAY REQUIRE A LOT OF CREATIVITY AND INTUITION
  FROM THE DECISION MAKER AND THEY MAY DEFY
  FORMULATION INTO A STANDARD SET OF RULES
• STRATIGEC DECISIONS ARE OFTEN DESCRIBED THAT AS
  BEING UNSTRUCTURED DECISION
• SEMI STRUCTURED DECISION
• 1. ARE THOSE WHICH HAS BOTH STRUCTURE AND
  UNSTRUCTURE COMPONENTS .

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HOW I.S SUPPORTS

• 1. INFORMATIOIN TECHNOLOGY RECASTING THE
  MANAGEMENT PROCESS PROVIDING POWERFUL NEW
  CAPABLITIES TO HELP MANAGERS PLAN, ORGANISE,
  LEAD, AND CONTROL.
• 2. INFORMATION SYSTEMS ELECTRONICALLY LINKED
  PURCHASING PERSONEL WITH ORDER ENTRY SYSTEM PROVE
  THAT BUSINESS COULD USE INFOFORMATION TECHNOLOGY
  TO GAVE A COMPETATIVE ADVANTAGE
• 3. IT SYSTEM MADE EASIER TO ORDER, CREATED ACCESS
  TO INVENTORY AND DELIVERY INFORMATION, AND
  PROVIDED AN ELECTRONIC INTERFACE THAT ELIMINATED
  A GREAT DEAL OF PAPER WORK.

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• 4. FLEXIBLE AND PROVISION OF OPTIONS FOR HANDLING
  DATA AND EVALUTING INFROMATION.
• 5. SUPPORT FOR VARIETY OF STYLES SKILLS AND
  KNOWLEDGE.
• 6. PROVIDE MULTIPLE ANALYTICAL MODELS FOR
  EVALUATION OF DATA AND THE ABILITY TO KEEP TRACK
  OF ALTERNATIVES AND CONSEQUENCES.
• 7. EASE OF DISSEMINATION OF INFORMATION CREATES
  UNDERSTANDING OF GROUP AND ORGANISATIONAL
  PROCESSES.

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Managerial levels

• Senior managers make long-range strategic
  decisions about products and services to produce
• Middle managers carry out the programs and plans
  of senior management
• Operational managers responsible for monitoring
  the firms daily activity