Transcript Document 7225831

Are you in the right room
Course Code: CSC 491
Course Title: Management Information System
Instructor: Asif Iqbal
Day: Monday
Timing:2.15—4.45 pm
Date: week1 2004
Overview of today’s class
Administrative Information.
Overview of the course.
Information Systems
Summary(student)
Class homepage:
http://groups.yahoo.com/group/biztekcsc491
A Brief Introduction
Name:
Qualification:
Asif Iqbal
B.E.(E) NED
MS (CSC) DePaul
Major
:
Data Communication
Minor
:
Software Engineering
Professional exp:
Contact Information
Instructor : Asif Iqbal
Email:
[email protected]
Phone:
4979415
Office:
Faculty Office(see front desk)
Class hours:2.15 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
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
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
Textbook
Required: Management Information Systems
New approaches to Organization & Technology
by Kenneth C. Laudon & Jane P. Laudon
(5th edition)
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.
Tell me about yourself
Pass on a paper
Name:
Career:
Email address:
What are future plans
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)
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 one–stop 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
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
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
They can then link to the company’s 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
The catalog site offers clients four basic level of
marketing service.
1. an electronic order form for the company’s paper
catalogue and a single Web page
2. an additional Web page for the company to display
its products
3. on-line ordering facility for the client’s products
themselves and
4. an automatic link to the client’s Web site.
Basic service costs between $1200 and $1500 per year
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
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
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 today’s 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 today’s
managers because most organization need
information systems to survive and prosper
The competitive business
environment
1.
2.
3.
•
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
1:Globalization
Management and control in a global marketplace
Competition in world markets
Global work groups
Global delivery systems
1:Emergence 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
2:Transformation 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
2:Transformation 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 revolution:the 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
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
3:Transformation of the business enterprise
Flattening
Decentralization
Flexibility
Location independence
Low transaction and coordination costs
Empowerment
Collaborative work and teamwork
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
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
input
processing
output
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
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 > 40 hrs
Federal and state taxes
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
Information System /
Feedback
It is an output that is used to make adjustments
or changes to input or processing activities
Errors
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
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
Computer-Based Information
Systems (CBIS)
1.
2.
3.
A set of
Hardware,Software,Database,Telecommunication,P
eople,and Procedures
To Collect ,Process,Store data into Information.
Examples :
company’s payroll system,
order entry system, and
inventory control system
Components Of A Computer-Based
Information Systems (CBIS)
Hardware:
Software:system and application
Database:organized collection of facts & Info
Telecommunications:electronic transmission of signals
for communication
Networks:interconnected devices for electronic
communication
Internet,Intranet,extranet
People: manage , run , program ,maintain Systems
Procedures:strategies,policies,methods,rules for using
CBIS
Key Concepts
Data: data consists of raw facts, such as an employee’s 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
Data
Information process
Information
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)
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.
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.
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.
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.
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.
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.
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
The Characteristics of Good
Information
Accessible: Should be easily accessible by
authorized users in the right format
Secure: secure from access by unauthorized
users.
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
Information System are more than computers
Organizations
Technology
Information
systems
Management
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,manufacturing,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
Major Organizational Functions
Function
Purpose
Sales and marketing
Selling the organization’s products and services
Manufacturing
Producing products and services
Finance
Managing the organization’s financial
assets(cash,stocks,bonds)
Accounting
Maintaining the organization’s financial
records(receipts,disbursement,paychecks
Human resources
Attracting,developing, and maintaining the
organization’s labor force,maintaining employees
records
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
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 organization’s paper work
Production or service workers: people who
actually produce the products or services of the
organization
MANAGERS
WHO ARE MANAGERS
DECISION MAKING AND MANAGERS
HOW INFORMATION SYSTEM SUPPORTS
WHO ARE MANAGERS
MANAGERS PLAY A KEY ROLE IN AN ORGANISATION.
They must be creative;to 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
MANAGERS AND DECISION MAKING
USUALLY MANAGERS ARE SUPPOSE TO
MAKE THREE TYPE OF DECISIONS.
1. STRUCTURED.
2. UNSTRUCTURED.
3. SEMISTRUCTURED.
STRUCTURED DECISIONS
1.
2.
MADE ACCORDING TO SPECIFIED PROCEDURES.
PREDEFINED SET OF RULES AND STANDARDS FOR
SOLUTION.
UN STRUCTURED DECISION
1. INVOLVES A HIGH DEGREE OF FREEDOM AND NO PRECEDENT.
2. MAY REQUIRE A LOT OF CREATIVITY AND INTUITION FROM THE
DECISION MAKER AND THEY MAY DEFY FORMULATION INTO A
STANDARD SET OF RULES
3. STRATIGEC DECISIONS ARE OFTEN DESCRIBED THAT AS BEING
UNSTRUCTURED DECISION
SEMI STRUCTURED DECISION
1. ARE THOSE WHICH HAS BOTH STRUCTURE AND UNSTRUCTURE
COMPONENTS .
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.
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.
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 firm’s daily activity