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Management Information Systems By Effy Oz

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Management Information Systems By Effy Oz & Andy Jones Chapter 1: Business Information Systems: An Overview www.cengage.co.uk/oz Objectives Explain why information ... – PowerPoint PPT presentation

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Title: Management Information Systems By Effy Oz


1
Management Information SystemsBy Effy Oz Andy
Jones
Chapter 1 Business Information Systems An
Overview
www.cengage.co.uk/oz
2
Objectives
  • Explain why information systems are essential to
    business
  • Describe how computers process data into useful
    information for problem solving and decision
    making
  • Identify the functions of different types of
    information systems in business

3
Objectives (continued)
  • Describe careers in information technology
  • Identify major ethical and societal concerns
    created by widespread use of information
    technology

4
The Purpose of Information Systems
  • Businesses use information systems
  • To make sound decisions
  • To solve problems
  • Problem is any undesirable situation
  • Decision arises when more than one solution to
    problem exists

5
The Purpose of Information Systems (continued)
  • Problem solving and decision making require
    information
  • Keys to success in business are
  • Gathering correct information
  • Storing information
  • Using information

6
Data, Information, and Information Systems
  • Data, information and system are commonly
    used terms
  • Important to understand their similarities and
    differences

7
Data vs. Information
  • Data a given or fact
  • Can be number, statement, or picture
  • Information facts or conclusions that have
    meaning within context
  • Composed of data that is manipulated

8
Data Manipulation
  • Data is manipulated to make useful information
  • Survey is common method of collecting data
  • Raw data is hard to read
  • Information is more useful to business than data

9
Generating Information
  • A process is manipulation of data
  • Process usually produces information
  • Process may produce more data
  • A piece of information in one context may be
    considered data in another context

10
Generating Information (continued)
11
Information in Context
  • Not all information is useful
  • Useful information is
  • Relevant
  • Complete
  • Accurate

12
Information in Context (continued)
  • Useful information is
  • Current
  • Obtained economically (in business)

13
Information in Context (continued)
14
What Is a System?
  • System array of components that work together to
    achieve goal or goals
  • System
  • Accepts input
  • Processes input
  • Produces output

15
What is a system? (continued)
  • System may have multiple goals
  • System may contain subsystems
  • Subsystems have sub-goals that meet main goal
  • Subsystems transfer output to other subsystems

16
What is a system? (continued)
  • Closed system has no connections with other
    systems
  • Open system interfaces and interacts with other
    systems
  • Often a subsystem of a bigger system
  • Information system processes data and produces
    information

17
Information and Managers
  • Systems thinking thinking of an organization in
    terms of subsystems
  • Database collection of electronic records
  • Information systems automate exchange among
    subsystems
  • Information map network of information systems
  • Information technology technologies that
    facilitate construction and maintenance of
    information systems

18
The Benefits of Human-Computer Synergy
  • Humans are relatively slow and make mistakes
  • Computers cannot make decisions
  • Synergy combining resources to produce greater
    output

19
The Benefits of Human-Computer Synergy (Continued)
20
Information Systems in Organisations
  • Computer-based Information system system with
    computer at centre
  • Certain trends have made information systems
    important in business
  • Organisations lag behind if they do not use
    information systems

21
Components of information systems
22
The Four Stages of Processing
  • Input collect and introduce data to system
  • Transaction a business event, usually entered as
    input
  • Data processing perform calculations on input
  • Output what is produced by the information
    system
  • Storage vast amounts of data stored on (for
    example) optical discs

23
Computer Equipment for Information Systems
  • Input devices receive input
  • Computer process data
  • Output displays information
  • Storage devices store data
  • Network devices transfer data

24
Computer Equipment for Information Systems
(continued)
25
From Recording Transactions to Providing
Expertise Types of Information Systems
  • Many types of information systems
  • Capabilities of applications have been combined
    and merged
  • Management Information System supports planning,
    control, and making decisions

26
Transaction Processing Systems
  • Most widely used type of system
  • Records data collected at point where
    organisation interacts with other parties
  • Encompasses cash registers, ATMs and purchase
    order systems

27
Supply Chain Management Systems
  • Supply chain sequence of activities involved in
    producing and delivering products
  • Activities include marketing, purchasing raw
    materials, manufacturing, shipping, billing,
    collection, and after-sale services
  • Also known as enterprise resource planning (ERP)
    systems

28
Customer Relationship Management Systems
  • Customer relationship management managing
    relations with customers
  • Used in combination with telephones to provide
    customer service
  • Often linked to Web applications that track
    online transactions

29
Business Intelligence Systems
  • Business Intelligence gather data to help
    organisation compete
  • Often contains statistical models
  • Access large pools of data
  • Data warehouse large database that usually store
    transactional records

30
Decision Support and Expert Systems
  • Decision support system supports decision-making
  • Relies on models to produce tables
  • Extrapolates data to predict outcomes
  • Expert system supports knowledge-intensive
    decision-making
  • Uses artificial intelligence

31
Geographic Information Systems
  • Geographic information system ties data to
    physical locations
  • Represents data on a map in different formats
  • May reflect demographic information in addition
    to geographic
  • May use information from GPS satellites

32
Geographic Information Systems (continued)
33
Information Systems in Business Functions
  • Functional business area services within a
    company that support main business
  • Includes accounting, finance, marketing, and
    human resources
  • Part of a larger enterprise system

34
Accounting
  • Information systems help record transactions
  • Produce periodic statements
  • Create required reports for legal compliance
  • Create supplemental reports for managers

35
Finance
  • Finance systems facilitate financial planning and
    business transactions
  • Tasks include organising budgets, managing cash
    flow, analysing investments, and making decisions

36
Marketing
  • Pinpoint likely customers and promote products
  • Marketing information systems analyse demand for
    products in regions and demographic groups
  • Identify trends in demand for products/services
  • Web provides opportunity to collect marketing data

37
Human Resources
  • Human resource management systems aid
    record-keeping
  • Must keep accurate records
  • Aids recruiting, selection, placement, and reward
    analysis
  • Performance evaluation systems provide grading
    utilities

38
Web Empowered Enterprises
  • E-commerce Buying and selling goods and
    services through Internet
  • Internet is a vast network of computers connected
    globally
  • Web has a profound impact on information systems

39
Careers in Information Systems
  • Information technology professionals are
    increasingly in demand
  • Networking, system analyst, software engineering,
    and database administrator jobs are increasing in
    demand

40
Systems Analyst
  • System analyst designs and updates information
    systems
  • Involves analysing system requirements,
    documenting development efforts, and providing
    specifications for programmers
  • Requires communication and presentation skills

41
Database Administrator
  • Database administrator responsible for databases
  • Develops and acquires database applications
  • Must protect privacy of customers and employees
  • Responsible for securing the database

42
Data Administrator
  • Data administrator responsible for strategic use
    of databases
  • Ensuring senior management are able to make full
    use of internal data
  • Ensuring appropriate external data is collected
    and filtered
  • Enabling the use of this internal and external
    data to gain competitive advantage

43
Network Administrator
  • Network administrator acquires, implements,
    manages, maintains, troubleshoots networks
  • Implements security
  • Firewalls
  • Access codes

44
Webmaster
  • Webmaster creates and maintains Web site
  • Designs and codes the page
  • Demand for Webmasters grows as more businesses
    use Web

45
Chief Security Officer
  • Chief security officer supervises security of
    information system
  • Position exists due to growing threat to
    information security
  • Reports to chief information officer

46
Chief Information Officer and Chief Technology
Officer
  • Chief information officer responsible for all
    aspects of information system
  • Highest ranking IS officer
  • Responsible for IS as a strategic resource
  • Chief technology officer has similar duties as
    CIO
  • High level corporate officer
  • In charge of all IT needs of the organisation
  • Sometimes the two positions are incorporated into
    one

47
Chief Information Officer and Chief Technology
Officer (continued)
48
Summary
  • Computer-based information systems pervade almost
    every aspect of our lives
  • A system is a set of components that work
    together to achieve a common goal
  • Subsystem a system performs a limited task that
    produces an end result, which must be combined
    with other products from other systems to reach
    an ultimate goal
  • Data processing has four stages

49
Summary (continued)
  • Any IS that helps in management is a management
    information system (MIS)
  • Many different types of MIS
  • Enterprise application systems (SCM or ERP) tie
    together different functional areas of a business
  • ISs are used in accounting, finance, marketing,
    and human resources

50
Summary (continued)
  • The job prospects for IT professionals are bright
  • IT has created societal concerns
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