Transcript Management Information Systems Introduction
Organizations, Environments and Information Technology
Lecture 1
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Prepared by Natalie Rose
Assessment
Mid Module Exam June 16, 2008 Group Project/Presentation August 4, 2008 End of Term Exam TBA Prepared by Natalie Rose 20% 20% 60%
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Web Page and Book List
Main Course Web Page is at: http://nnrose.weebly.com
Recommended Text Laudon & Laudon:
Management Information Systems
,
9
th
Edition
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Components of Management Information System
Information System Management Prepared by Natalie Rose
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What is meant by Technology?
It is the use of power, tools and materials for production.
Information Technology = Hardware + software + storage + (communications)
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What is meant by an Organization?
“A stable, formal, social structure that takes resources from the environment and processes them to produce outputs” -
Technical (black box) definition
“A collection of rights, privileges, obligations and responsibilities that are delicately balanced over a period of time through conflict and conflict resolution” -
Behavioural (internal) definition
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People within the Organizations
Category Examples Examples of Tasks
Knowledge Workers Data Workers Production or Service Workers Managers Engineers Architects Scientists Secretaries Bookkeepers Machinists Assemblers Senior, Middle, Operational Design Products Create New Knowledge Process Paperwork Produce Products Make Decisions
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What is meant by Management?
Classical view
(what a manager is expected to do): Plan, organise, coordinate, decide and control.
Behavioural models
manager: (what a manager actually does) - roles of a Interpersonal (figurehead, leader, liaison) Informational (hub, disseminator, spokesperson) Decisional (entrepreneur, disturbance handler, resource allocator, negotiator) Therefore Management is the process of achieving organizational goals by planning, organizing,leading and controlling organizational resources.
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So what is Information?
Data Streams of raw numbers (bits/bytes)
Rain = true
Information Interpretation of data by humans
“It is raining today”
Knowledge Interpretation of information in context of prior understanding
“If I go out I will get wet”
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What is An Information System?
“A set of interrelated components that collect (or retrieve), process, store and distribute information
to support decision making, coordination and control
in an organization......also help managers and workers
analyse problems, visualise complex subjects and create new
products ”
[laudon and laudon, 2005]
Examples:
systems.
ATMs, airline reservation systems, course reservation
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Components of an Information System
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Input
:- Data are collected and entered into computer.
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Processing
: Data are manipulated into information using mathematical, statistical, and other tools.
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Output
: Information is displayed or presented •
Feedback:
This is an output that help the organization to evaluate or correct the input stage.
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The Role of Information in An Organization
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The Role of Information in An Organization (resources)
Information as a Resource. Resources
are inputs to the production of outputs. Examples include time, money, people, raw materials, and machinery. Managers can use information to replace labor.
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The Role of Information in An Organization (asset)
Information as an Asset. An asset
is defined as the property of a person or an organization that contributes to a company’s output. Using information as an asset encourages managers to view information as a strategic investment.
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The Role of Information in An Organization (commodity)
Information as a Commodity.
When information is treated as a salable product, it is viewed as a
commodity.
Publishers of directories, television guides, and airline guides are examples of companies making a profit by selling information.
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Traditional Organizational Structure
Strategic Level Management Level Senior Managers Middle Managers Knowledge Level INFORMATI ON SYSTEM Knowledge and Data Workers Operational Level Sales and Marketing Manufacturing Finance Accounting Human Resources Prepared by Natalie Rose
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Organizations
Organizational structure
Organizational subunits and the way they are related to the overall organization
Traditional organizational structure
Major department heads report to a president or top-level manager
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A.Bailey, Legal counsel S. Burry, President B. Wong, VP Accounting C.Rodrig, VP Information Systems R. Henderson, VP Marketing K. Kelly, VP Production V. Cisborn, VP Human Resources S. Samuel Supervisor L. Bashran, Supervisor Traditional Organizational Structure Prepared by Natalie Rose
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Organizational Structure
Hierarchical organizational structure
Series of levels
Those at high levels have more power and authority within an organization
Flat organizational structure
An organizational structure with a reduced number of layers of management 19
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Organizational Structure
Empowerment
Giving employees and their managers more power, responsibility, and authority to make decisions, take certain actions, and have more control over their jobs 20
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Other Organizational Structures
Project organizational structure
An organization structure centred on major products or services
Contrast with traditional structure
Team organizational structure
An organizational structure centred on work teams or groups Temporary or permanent teams
Work groups Various sizes 21
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Centered on major products and services Temporary project teams.
B. Woods, President Air & Aerospace Co.
T. Walker, Senior VP, Aircraft Division W. Butler, Senior VP, Aerospace Division O. Teco, Senior VP, Communications & Satellite Division VP, Finance VP, Marketing VP, Production VP, Sales VP, Finance VP, Marketing VP, Production VP, Sales VP, Finance VP, Marketing VP, Production Project Organizational Structure Prepared by Natalie Rose
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Other Organizational Structures
Multidimensional organizational structure
A structure that may incorporate several structures at the same time
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Vice President, Marketing Vice President, Production Vice President, Finance Publisher, College Division Marketing Group Production Group Publisher, Trade Division Publisher, High School Division Marketing Group Marketing Group Multidimensional Organizational Structure Production Group Production Group Finance Group Finance Group Finance Group Prepared by Natalie Rose
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Virtual Organizational Structure
Employs business units in geographically dispersed areas People may never meet face to face Can be permanent or temporary Prepared by Natalie Rose
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Types of information system by their: Relevance to different organizational levels/users
ORGANIZATIONAL LEVEL
Strategic Level Senior Managers
USERS
Management Level Middle Managers Knowledge Level INFORMATION SYSTEM Knowledge and Data Workers Operational Managers Operational Level Sales and Marketing Manufacturing Finance Accounting
FUNCTIONS SERVED
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Operational Level System
Support operational managers Information systems aim to:
Answer routine questions
Track flow of transactions
Keep track of elementary activities (e.g. sales, receipts, cash deposits)
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Knowledge Level System
Support knowledge and data workers Information systems aim to:
Integrate new knowledge into business
Help control flow of paperwork
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Management Level System
Support middle managers Information systems aim to assist in:
Monitoring, controlling, decision making and administration
Producing periodic reports
Some non-routine decision making
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Strategic Level System
Support senior managers Information systems aim to assist:
In their understanding of strategic issues/long- term trends
To utilise internal and external information
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Types of information system by their: Relevance to different business functions Executive Support Systems (ESS) Management Information Systems (MIS) Decision-Support Systems (DSS) Sales Management Sales Region analysis 5-year sales trend forecasting
Strategic-Level Systems
5-year operating plan 5-year budget forecasting Profit planning Personal planning
Management-Level Systems
Inventory control Production scheduling Annual budgeting Cost analysis Capital investment analysis Pricing/profitability analysis Relocation analysis Contract cost analysis Knowledge Work System (KWS) Office Systems Engineering Workstations Word processing
Knowledge-Level Systems
Graphics workstations Document Imaging Managerial workstations Electronic calendars Transaction Processing Systems (TPS) Order tracking Machine control Plant scheduling Order processing Machine movement control Sales and Marketing Manufacturing
Operational-Level Systems
Securities trading Cash management Payroll Accounts payable Compensation Training & development Accounts receivable Employee record keeping Finance Prepared by Natalie Rose Accounting Human Resources
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Specific types of Information System
Transaction Processing Systems (TPS)
Aid operational managers Most common form of information system Handle routine information manipulation –sorting, listing, merging etc Many online so users can interact with database simultaneously Provide information to other types of systems
Critical
Example –airline computerised reservation systems Prepared by Natalie Rose
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Specific types of Information System
Knowledge Work Systems (KWS)
Aid knowledge workers, often professionals (e.g. Engineers, Scientists) Create new information and knowledge through modelling and simulation Integrate knowledge into business Example –engineering design systems to enable engineers to design complex computer chips
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Specific types of Information System
Office Systems
Primarily aid data workers –secretaries, bookkeepers, clerks, etc.
Process rather than create information Coordination/communication Examples -email, word processing, electronic filing, scheduling, electronic calendars, video conferencing Prepared by Natalie Rose
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Specific types of Information System
Management Information Systems (MIS)
Aid middle managers Provide focused view of information flow Regular reports on
internal
events –weekly, monthly, yearly Planning, controlling, decision making Depend on TPS Not flexible or analytical –answer predefined questions
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Specific types of Information System
Decision Support Systems (DSS)
Primarily aid middle managers Unique, rapidly changing decisions, not predefined Analytical Use
internal
information from TPS and MIS Use
external
information –stock prices, competitor prices Have variety of models to analyse data, and user friendly software Flexible Prepared by Natalie Rose
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Specific types of Information System
Decision Support Systems (DSS)
Examples:
Airlines –passenger demand forecasting, flight scheduling Insurance companies –customer buying patterns and fraud detection Customer relationship management – getting data from website log
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Specific types of Information System
Executive Support Systems (ESS)
Historically, executives have received numerous reports, 100’s of pages long
Information overload
Need to detect warning signals indicating threats or opportunities Senior managers (executives) Non-routine decisions requiring judgment, evaluation, insight Prepared by Natalie Rose
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Specific types of Information System
Executive Support Systems (ESS)
General, not fixed or specific Use MIS, DSS, and external databases Filter, compress, track Use advanced graphics software, little training required Allow drilling down to detailed data underneath Prepared by Natalie Rose
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Considering information systems in terms of business functions Sales and Marketing
Sales
Contact customers Sell products and services Take orders Follow up
Marketing
Identify customers Determine needs/wants Plan and develop products and services to meet needs Advertise and promote so customers aware of products/services
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Sales and Marketing
Requirements for an Information System
Order processing Market analysis (from Market Research, demographics etc) Sales analysis Pricing analysis Sales forecasting Prepared by Natalie Rose
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Considering information systems in terms of business functions Manufacturing/Production
Production of products/services Planning, development, maintenance of production facilities Establishing production goals Acquiring & storing materials, ensuring their availability Scheduling Quality control Prepared by Natalie Rose
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Manufacturing/Production
Requirements for an Information System
Inventory Machine control Computer aided design (CAD) for new products Production planning Facilities (new plant) location Prepared by Natalie Rose
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Considering information systems in terms of business functions Finance and Accounting
Finance
Managing firm’s financial assets –cash, stocks, bonds etc
Maximising return on assets
Acquiring new financial assets
Accounting -
Managing/maintaining financial records –receipts, payroll, etc
Accounting for flow of funds
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Finance and Accounting
Requirements for an Information System
Tracking flow of funds in the firm Designing portfolio of investments Budget preparation, control of financial resources Profit planning and long term investment goals Prepared by Natalie Rose
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Considering information systems in terms of business functions Human Resources
Attract, develop and maintain workforce Identify potential employees Maintain complete records on existing employees Develop training and development programs Evaluate employee performance Enroll employees in benefit plans Prepared by Natalie Rose
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