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Management Information Systems
Management Information Systems
The following are some of the justifications for having an MIS system:
COMPONENTS OF MIS
INFORMATION SYSTEM
Organizations
Management
Technology
• Software
• Enterprise System
• Hardware
• Telecommunication System
• Video
Conferencing
• VOIP
• Internetwork
• Operational excellence
• Survival
Technical approach:
Behavioral approach:
• Functional Perspective :
• Constituency Perspective:
The type of information system that a user uses depends on their level in an
organization. The following diagram shows the three major levels of users in an
organization and the type of information system that they use.
Management Information
Systems are used to guide tactic
managers to make semi-structured
decisions. The output from the
transaction processing system is used
as input to the MIS system.
A ESS help senior management make these decisions. ESS address non
routine decision requiring judgment, evaluation, and insight because there is no
agreed on procedure for arriving at a solution.
4. Decision Support Systems (DSS)
Decision support systems are used by top level managers to make semi-
structured decisions. The output from the Management Information System is
used as input to the decision support system. DSS systems also get data input
from external sources such as current market forces, competition, etc.
ENTERPRISE APPLICATIONS
SOFTWARE PROCESS
Upper-CASE
Tools to support the early process activities of requirements and design.
Lower-CASE
Tools to support later activities such as programming, debugging and
testing.
• Heterogeneity
– Developing techniques for building software that can cope with
heterogeneous platforms and execution environments;
• Delivery
– Developing techniques that lead to faster delivery of software;
• Trust
– Developing techniques that demonstrate that software can be
trusted by its users.
– Reliable, Secured and Safe.
GENERIC SOFTWARE PROCESS MODELS
– Waterfall
– Evolutionary development
– Formal transformation
– Integration from reusable components
Waterfall Weakness
• High risk for new systems because of specification and design problems.
• Low risk for well-understood developments using familiar technology.
• Usually requirements change, are incomplete or even not known ( Result:
‘That’s not what I meant !’ ( go back to last step )
• WF-Model reacts very statically: Each stage must be completed before
next one starts
• Too expensive
• Doesn’t force to discipline
EVOLUTIONARY PROCESS MODEL
Concurr ent
activities
Initial
Specification
version
Outline Intermediate
Development
description versions
Final
Validation
version
Prototyping
-Low risk for new applications because specification and program stay in step.
Transformational
-High risk because of need for advanced technology and staff skills.
Determine ob jectiv es
Ev aluate alt ern atives
alternatives and id en tify, resol ve risk s
cons traint s Risk
analys is
Risk
analys is
Risk
analys is Opera-
Prot otyp e 3 ti onal
Prot otyp e 2 prot oyp e
Risk
REVIEW anal ysis Prot o-
ty pe 1
Requi rement s pl an Simul ati ons, models, b en ch marks
Li fe-cycle pl an Concept o f
Operati on S/W
requi rement s Prod uct
desi gn Detail ed
Requi rement desi gn
Develop ment
pl an valid ati on Code
Desi gn Uni t t es t
Integrati on
and t est p lan V&V Integr ati on
Plan next p has e test
Accep tance
Serv ice test Develop, v erify
next -l evel p rod uct
Focuses attention on reuse options.
Focuses attention on early error elimination.
Puts quality objectives up front.
Integrates development and maintenance.
Provides a framework for hardware/software
development.
Contractual development often specifies
process model and deliverables in advance.
Requires risk assessment expertise.
INFORMATION SYSTEMS, ORGANIZATIONS, AND STRATEGY
– Technical definition:
• Formal social structure that processes resources from
environment to produce outputs
• A formal legal entity with internal rules and procedures, as
well as a social structure
– Behavioral definition:
• A collection of rights, privileges, obligations, and
responsibilities that is delicately balanced over a period of
time through conflict and conflict resolution
FEATURES OF ORGANIZATIONS
ORGANIZATIONAL POLITICS
ORGANIZATIONAL CULTURE
ORGANIZATIONAL ENVIRONMENTS
DISRUPTIVE TECHNOLOGIES
1. Entrepreneurial:
2. Machine bureaucracy:
3. Divisionalized bureaucracy:
4. Professional bureaucracy:
5. Adhocracy:
• Consulting firms
ECONOMIC IMPACTS
AGENCY THEORY
– IT flattens organizations
• Decision making is pushed to lower levels.
• Fewer managers are needed (IT enables faster decision
making and increases span of control).
– Postindustrial organizations
• Organizations flatten because in postindustrial societies,
authority increasingly relies on knowledge and competence
rather than formal positions.
– Environment
– Structure
• Hierarchy, specialization, routines, business processes
– Culture and politics
– Type of organization and style of leadership
– Main interest groups affected by system; attitudes of end users
– Tasks, decisions, and business processes the system will assist
1. Low-cost leadership
2. Product differentiation
– Enable new products or services, greatly change customer
convenience and experience
– Example: Google, Nike, Apple
– Mass customization
3. Focus on market niche
– Use information systems to enable a focused strategy on a single
market niche; specialize
– Example: Hilton Hotels’ OnQ system
4. Strengthen customer and supplier intimacy
– Use information systems to develop strong ties and loyalty with
customers and suppliers
– Increase switching costs
– Example: Netflix, Amazon
VALUE WEB
SYNERGIES
CORE COMPETENCIES
NETWORK-BASED STRATEGIES
Confidentiality
Competence
Computer misuse
• PUBLIC
– Software engineers shall act consistently with the public interest.
• CLIENT AND EMPLOYER
– Software engineers shall act in a manner that is in the best
interests of their client and employer consistent with the public
interest.
• PRODUCT
– Software engineers shall ensure that their products and related
modifications meet the highest professional standards possible.
• JUDGMENT
– Software engineers shall maintain integrity and independence in
their professional judgment.
• MANAGEMENT
– Software engineering managers and leaders shall subscribe to and
promote an ethical approach to the management of software
development and maintenance.
• PROFESSION
– Software engineers shall advance the integrity and reputation of the
profession consistent with the public interest.
• COLLEAGUES
– Software engineers shall be fair to and supportive of their
colleagues.
• SELF
– Software engineers shall participate in lifelong learning regarding
the practice of their profession and shall promote an ethical
approach to the practice of the profession.
EVOLUTION OF IT INFRASTRUCTURE
At first level, a Web server will serve a Web page to a client in response to
a request for service. Application server software handles all application
operations between a user and an organization’s back-end business
systems. Novell NetWare was the leading technology for client/server
networking at the beginning of the client/server era. Today, Microsoft is the
market leader with its Windows operating systems.
Enterprise Computing Era: (1992 to Present)
The growing bandwidth power of the Internet has pushed the client/server
model one step further, towards what is called the “Cloud Computing Model,”
refers to a model of computing that provides access to a shared pool of
computing resources over a network, often the Internet.
Nanotechnology
At the client level, 90 percent of PCs use some form of Microsoft Windows
operating system to manage the resources and activities of the computer.
Google’s Chrome OS provides a lightweight operating system for cloud
computing using netbooks. Android is a mobile operating system developed by
Android, Inc. and later the Open Handset Alliance as a flexible, upgradeable
mobile device platform. Multitouch interface, where users use their fingers to
manipulate objects on the screen.
Cell phones and smartphones such as the BlackBerry and iPhone have
taken on many functions of handheld computers, including transmission of data,
surfing the Web, transmitting email and instant messages, displaying digital
content and exchanging data with internal corporate systems. The new mobile
platform also includes small low-cost lightweight subnotebooks called netbooks
optimized for wireless communication and Internet access, with core computing
functions such as word processing; tablet computers such as the iPad; and
digital e-book readers such as Amazon’s Kindle with some Web access
capabilities.
GRID COMPUTING
VIRTUALIZATION
CLOUD COMPUTING
AUTONOMIC COMPUTING
LINUX
A computer system organizes data in a hierarchy that starts with bits and
bytes and progresses to fields, records, files, and databases.
Program-Data Dependence
Program-data dependence refers to the coupling of data stores in
files and the specific programs required to update and maintain those files
such that changes in programs require changes to the data.
Lack of Flexibility
Poor Security
Because there is little control or management of data, access to
and dissemination of information may be out of control. Management may
have no way of knowing who is accessing or even making changes to the
organization’s data.
RATIONAL DBMS
OBJECT-ORIENTED DBMS
DATA WAREHOUSES
A data warehouse is a database that stores current and historical data of
potential interest to decision makers throughout the company.
DATA MARTS
A data mart is a subset of a data warehouse in which a summarized or
highly focused portion of the organization’s data is placed in a separate database
for a specific population of users.
COMPUTER NETWORK
Contemporary digital networks and the Internet are based on three key
technologies: client/server computing, the use of packet switching, a dn the
development of widely used communications standards (the most important of
which is Transmission Control Protocol/Internet Protocol, or TCP/IP) for linking
disparate networks and computers.)
COMMUNICATIONS NETWORKS
Type Area
Local area network (LAN) Up to 500 meters (half a mile); an office or floor of
a building
Campus area network Up to 1,000 meters (a mile); a college campus or
(CAN) corporate facility
Metropolitan area network A city or metropolitan area
(MAN)
Wide area network (WAN) A transcontinental or global area
INTERNET SERVICES
THE WEB
HYPERTEXT
Web pages are based on a standard Hypertext Markup Language
(HTML), which formats documents and incorporates dynamic links to other
documents and pictures stored in the same or remote computers. Hypertext
Transfer Protocol (HTTP) is the communications standard used to transfer
pages on the web.
WEB SERVERS
A Web server is software for locating and managing stored Web pages.
SEARCHING FOR INFORMATION ON THE WEB
SEARCH ENGINES
WEB 2.0
If you have a laptop computer, you might be able to use it to access the
Internet as you move from room to room in your dorm, or table to table in in your
university library.
BLUETOOTH
Bluetooth is the popular name for the 802.15 wireless networking
standard, which is useful for creating small personal area networks
(PANs). Although Bluetooth lends itself to personal networking, it has uses in
large corporations.
The 802.11 set of standard for wireless LANs and wireless Internet access
is also known as Wi-Fi. The first of these standards to be widely adopted was
502.11b, which can transmit up to 11 Mbps in the unlicensed 2.4-GHz band and
has an effective distance of 30 to 50 meters. Hotspots typically consist of one or
more access points providing wireless Internet access in a public place
WIMAX
The range of Wi-Fi systems is no more than 300 feet from the base
station, making it difficult for rural groups that don't have cable or DSL service to
find wireless access to the Internet. The IEEE developed a new family of
standards known as WiMax to deal with these problems. WiMax, which stands
for Worldwide Interoperability for Microwave Access, is the popular term for IEEE
Standard 802.16.
When large amounts of data are stored in electronic form, they are
vulnerable to many more kinds of threats than when they existed in manual form.
Through communications networks, information systems in different locations are
interconnected. The potential for unauthorized access, abuse, or fraud is not
limited to a single location but can occur at any access point in the network.
INTERNET VULNERABILITIES
Large public networks, such as the Internet, are more vulnerable than
internal networks because they are virtually open to anyone. The Internet is so
huge that when abuses do occur, they can have an enormously widespread
impact. When the Internet becomes part of the corporate network, the
organization's information systems are even more vulnerable to actions from
outsiders.
It depends on how vigilant you are. Even the wireless network in your
home is vulnerable because radio frequency bands are easy to scan. Both
Bluetooth and Wi-Fi networks is only several hundred feet, it can be extended up
to one-fourth of a mile using external antennae.
DENIAL-OF-SERVICE ATTACKS
COMPUTER CRIME
IDENTITY THEFT
CLICK FRAUD
ROLE OF AUDITING
FIREWALLS
Firewalls prevent unauthorized users from accessing private networks. A
firewall is a combination of hardware and software that controls the flow of
incoming and outgoing network traffic.
INTRUSION DETECTION SYSTEMS
Two methods for encrypting network traffic on the Web are SSL and S-
HTTP. Secure Sockets Layer (SSL) and its successor Transport Layer Security
(TLS) enable client and server computers to manage encryption and decryption
activities as they communicate with each other during a secure Web session.
Secure Hypertext Transfer Protocol (S-HTTP) is another protocol used for
encrypting data flowing over the Internet, but it is limited to individual messages,
where as SSL and TLS are designed to establish a secure connection between
two computers. A more secure form of encryption called public key encryption
uses two keys: one share (or public) and one totally private. The keys are
mathematically related so that data encrypted with one key can be decrypted
using only the other key.
Digital certificates are data files used to establish the identity of users and
electronic assets for protection of online transactions.
A technology called deep packet inspection (DPI) examines data files and
sort out low-priority online material while assigning higher priority to business-
critical files.
Cloud users should ask whether cloud providers will submit to external
audits and security certifications. These kinds of controls can be written into the
service level agreement (SLA) before to signing with a cloud provider.
ENTERPRISE SYSTEMS
Enterprise systems:
CRM systems capture and integrate customer data from all over the
organization, consolidating the data, analyzing the data, and then distributing the
results to various systems and customer touch points across the enterprise. A
touch point (also known as a contact point) is a method of interaction with the
customer, such as telephone, e-mail, customer service desk, conventional mail,
Web site, or retail store.
Sales force automation (SFA): SFA modules help sales staff increase
their productivity by focusing sales efforts on the most profitable
customers. They provide sales prospect and contact information, product
information, product configuration capabilities, and sales quote generation
capabilities.
Customer service: Customer service modules provide information and
tools to make call centers, help desks, and customer support staff more
efficient. They have capabilities for assigning and managing customer
service requests and may include Web-based self-service capabilities.
Marketing: Marketing modules support direct-marketing campaigns with
capabilities for capturing prospect and customer data, qualifying leads,
and scheduling and tracking campaign mailings. They include tools for
analyzing marketing and customer data-identifying profitable and
unprofitable customers, designing products and services to satisfy specific
customer needs and interests, and identifying opportunities for cross-
selling, up-selling, and bundling. Cross-selling is the marketing of
complementary products to customers. Up-selling is the marketing of
higher-value products or services to new or existing customers. Bundling
is cross-selling in which a combination of products is sold as a bundle at a
price lower than the total cost of the individual products.
The rapid growth of e-commerce since 1995 is due to the unique features
of the Internet and the Web as a commercial medium:
Ubiquity: Internet/Web technology is everywhere, at work, home, and
elsewhere, and anytime, providing a ubiquitous marketspace, a
marketplace removed from a temporal and geographical location.
Global reach: The technology reaches across national boundaries.
Universal standards: There is one set of Internet technology standards,
which greatly lower market entry costs (the costs to bring goods to market)
and reduce search costs (the effort to find products) for the consumer.
Richness: Information richness refers to the complexity and content of a
message. Internet technology allows for rich video, audio, and text
messages to be delivered to large numbers of people.
Interactivity: The technology works through interaction with the user.
Information density: Information density is the total amount and quality
of information available to all market participants. Internet technology
reduces information costs and raises quality of information, enabling price
transparency (the ease for consumers of finding a variety of prices)
and cost transparency (the ability of consumers to determine the actual
costs of products). Information density allows merchants to engage
in price discrimination (selling goods to targeted groups at different
prices).
Personalization/customization: E-commerce technologies
permit personalization (targeting personal messages to consumers)
and customization (changing a product or service based on consumer
preference or history.
The Internet also shrinks information asymmetry, which occurs
when one party in a transaction has more information with respect to the
transactions than the other party. For instance, the Web has reduced the
information asymmetries surrounding auto purchases.
Digital markets are very flexible and efficient because they allow:
Reduced search and transaction costs
Lower menu costs (merchant's costs of changing prices)
Price discrimination
Dynamic pricing (prices changing based on the demand characteristics
of the customer or the seller's supply situation)
Disintermediation: Elimination of intermediaries such as distributors or
retailers
Studies have found that a substantial part of a firm's stock market value is
related to its intangible assets, of which knowledge is one important component,
along with brands, reputations, and unique business processes. Knowledge-
based projects have been known to produce extraordinary returns on investment,
although knowledge-based investments are difficult to measure.
Process cost
Process time
Process quality
Process flexibility
SELECTING PROJECTS
Because there are far more ideas for systems projects than there are
resources, it is important to select projects that promise the greatest benefit to
the business and complement the firm's business strategy.
An information systems plan helps identify projects that will deliver the
most business value. The plan is a road map indicating the direction of systems
development (the purpose of the plan), the rationale, the current
systems/situation, new developments to consider, the management strategy, the
implementation plan, and the budget. Other important components of an
information systems plan include target dates and milestones to help evaluate
the plan's future progress and management decisions regarding hardware and
organizational change.
The global business drivers can be divided into two groups: general
cultural factors and specific business factors.
Global markets
Global production and operations
Global coordination
Global workforce
Global economies of scale
Likewise, challenges and obstacles to global business systems include
global and specific business challenges:
SUBMITTED BY:
BSBA-4