Introduction to

Information Systems
What is the difference
between data and
information?
What is Data?

 Individual or separate pieces of raw facts,

concepts, and ideas derived through different
modes of inquiry
What is Information?

 Processed data that is organized, has use,

provides meaning, and is important in
accomplishing a certain task
 Data that have a particular meaning within a
specific context
 September 1, 2008
5 sunglasses were sold

September 4, 2008
DATA
10 jackets were sold

September 7, 2008
2 sunglasses were sold

September 7, 2008
18 jackets were sold

September 12, 2008

15 jackets were sold
Information

From September 1 to 12 of 2008, the

company was able to sell 7 sunglasses
and 33 jackets.
Qualities of Valuable Information

 Accurate
 Information is error free
 Verifiable
 Information can be proven as correct or
incorrect
 Timely
 Information is up-to-date
 Organized
 Information is arranged to suit our needs and
requirements
Qualities of Valuable Information

 Accessible
 Information is available whenever it is needed
 Useful
 Information is relevant and has meaning
 Cost-Effective
 Information should give more value than it costs
to produce
What is Knowledge?

 A concrete expression of thought derived

from relating, understanding, and analyzing
several pieces of valuable information
 A combination of instincts, ideas, rules, and
procedures that guide actions and decisions
Knowledge

During the rainy season, more people

buy jackets than sunglasses.
Relationship between data,
information, and knowledge
What Is MIS?

• Development and
Management use of information
Information systems
• Achieving business
Systems goals and objectives

Goal of MIS
Aligning the IS to achieve business
goals and objectives
What is MIS?

 MIS = Management Information Systems

 MIS is the development and use of
information systems that help businesses
achieve goals and objectives
 Key elements of MIS:

 Development and use

 Information systems

 Business goals and objectives

See the video explanation

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Why Is Introduction to MIS Important in the Business
School?

Future business professionals need to be able

to assess, evaluate, and apply emerging
information technology to business

Knowledge gained in this course will help you

attain that skill

Your only job security is a marketable skill

and courage to use it
MIS Manager

 The MIS manager runs

the MIS department.
 The MIS manager must
be comfortable with both
computer technology and
the organization’s
business.
Development and Use of
Information Systems
Business professionals need to:
Take an active role in IS to ensure
that systems meet their needs

Understand how IT systems are

constructed
Consider users’ needs during
development

Learn how to use IT systems

Take into account ancillary IT

functions (security, backups)
Information System Components

HARDWARE SOFTWARE DATA

PEOPLE PROCEDURES
Five-Component Framework of an Information System

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Information technology, information systems, and work
systems
Functions of an Information System
 CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS

Technical
Approaches
Computer Operations
Science Research

Management Sociology
Science

Psychology Economics
Behavioral
Approaches
Conceptual Framework of IS
Knowledge
Roles of IS in Business
The Interdependence Between Organizations and
Information Systems
How Does IT Differ from IS?

IT includes:
1. Hardware
2. Software
3. Data components

Information technology refers to:

1. Methods
2. Inventions
3. Standards
4. Products

IT could be thought of as “information tools.”

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

How Does IT Differ from IS? (cont’d)

 IT alone will not help an organization

achieve goals
 You can’t build a house with tools alone.
It takes people, procedures, and
instructions.
 IS = IT plus people and procedures

 IS makes IT useful

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

How Do Successful Business Professionals Use IS?

 Think creatively about problems, challenges,

and opportunities and find ways to apply IT and
IS
 Create innovative applications using emerging
(new) technologies
 Find ways to gain a competitive advantage with
information systems

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Classic Management Functions

 Historically, managers have had these main

functions:
 Planning
 Organizing
 Staffing
 Directing
 Controlling
Planning

 Managers devise both

short-range and long-
range plans for the
organization and set
goals to achieve those
plans.
Organizing

 Managers must
decide how to
use resources,
such as people
and materials.
Staffing

 Managers must
hire and train
workers.
Directing

 Managers guide
employees to perform
their work in a way
that supports the
organization’s goals.
Controlling

 Managers monitor
the organization’s
progress toward
reaching its goals.
Classic Management Pyramid

Top-level
Strategic
managers

Middle-level
managers Tactical

Low-level
managers Operational
 WHY INFORMATION SYSTEMS?

Management

Levels:
 Senior managers: make long-range strategic
decisions about products and services

 Middle managers: Carry out the programs

and plans of senior management

 Operational managers: monitor the firm’s

daily activities
Strategic Level Management

 This level of
management
focuses on the
planning functions
of the organization.
Tactical Level Management

 At this level,
management
focuses on
organizing and
staffing to carry out
the visions of top-
level managers.
Operational Level Management

 The focus of this level of

management is on
directing and controlling
workers to perform the
planned activities.
New Management Model

 Many industries are finding that they can do

without middle managers.
 For these businesses, communication that
was once carried out by middle managers
has been replaced by computer networks.
 The result has been a flattened management
pyramid.
 TOWARD THE DIGITAL FIRM

New Options for Organizational Design

 Flattening organizations

 Separating work from location

 Reorganizing work-flows

 Increasing flexibility

 Redefining organizational boundaries

Flattened Management Pyramid

Top-level
Strategic
managers

Low and
Middle-level Tactical
managers

Workers Operational
 TOWARD THE DIGITAL FIRM

Flattening Organizations & Information Systems

 TOWARD THE DIGITAL FIRM

Redesigned Work Flow For Insurance Underwriting

Information
Systems Planning
Organizational Strategy Determines
Information Systems
Information Systems Planning
(ISP)

 An orderly means of assessing the

information needs of an organization and
defining systems, databases, and
technologies that will best meet those needs
 ISP must be done in accordance with the
organization's mission, objectives, and
competitive strategy.
The information system plan as part of
the business plan
Strategic alignment of business and IT
 Ben Meadowcroft - Masters in Software
Engineering from UMIST and worked in
managerial and technical roles
 Why Systems Fail
 Poor development practices
 Incorrect assumptions with regard to system
requirements
 Poor user interface
 Inadequate user training/ user error
 Poor fit between systems and organization
Why IS Systems Fail?
Poor fit between systems and
organization

American and French electrical plugs

Why is it hard to develop the right system?

Incorrect assumptions with regard to system requirements