Management

Information System Assignment

HARAMBA UNIVERSITY COLLEGE

Prepared by ID No
Name: -1. Netsanet Dechasa 121036 2
2. Chaltu Hailu 121035
3. Liulekal Getachew 121037
4. Tufa Guchi 121999
5. Meskerem Bulbula 119428
6. Buskute Abaye 118618

Summation Date
February 18,220

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TABLE of CONTENT PAGE NUMBER
1. Information systems and the relation with business administration…………………….1

2. How organizations, management and strategy can connect within technology………2-3

3. Describe management challenges in information systems……………………………......4

4. The changing role of information systems in organization……………………………….4

5. How can managers use technology for decision making and information systems…...5-6

6. Describe and identify information systems and business strategy………………….….6-7

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What is System?

A system can be defined as a collection of interrelated components that work together towards a
collective goal.

The function of a system is to receive inputs and transform

control
these into outputs

What is a Business Information System?

input feedback output
A business information system is a group of interrelated
components that work collectively to carry out input,
process processing, output, storage and control actions in order to
convert data into

information products that can be used to support forecasting, planning, control, coordination,
decision making and operational activities in an organization.

Computer Based (Business) Information

System

= an information system that makes use of

information technology in order to create
management (and/or business) information.

CATEGORIES OF BUSINESS INFORMATION SYSTEM

℘ Operation Information System: - systems required for the day- to-day activities of a
business such as process control, transaction processing, communications (internal
and external) and productivity.
℘ Management Information systems: - systems providing feedback on organizational
activities and supporting managerial decision making. i.e.
 Decision support systems
 Information reporting systems
 Executive information systems

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2. How organizations, management and strategy can connect within technology

The Fundamental Roles of Information System in Business

There are three fundamental reasons

1. Support of its business processes and operations. (Like keeping inventories record or
payment details etc.)
2. Support of decision making by its employees and
3. Support of its strategies for competitive advantage

Trends in Information Systems:

1. Data processing: 1950s – 1960s

 Electronic data processing systems
 Transaction processing, record keeping and traditional accounting applications.
2. Management reporting: 1960s – 1970s
 management information systems
 management reports of pre specified
 information to support decision making
3. Decision support: 1970s – 1980s
 decision support systems
4. Strategic and User Support: 1980s – 1990s
 end user computing systems
 executive information systems
 expert systems
 strategic information systems
5. Electronic Business and Commerce: 1990s – 2000s
 internet based e business and e-commerce systems
℘ An organizations, management and strategy can connect within E-Business technology

E-BUSSINESS SYSTEM: - The process of using Web technology to help businesses streamline
processes, improve productivity and increase efficiencies. Enables companies to easily
communicate with partners, vendors and customers, connect back-end data systems and transact
commerce in a secure manner. (IBM CEO Lou Gerstner, 1997)

The use of ICT, especially the Internet, to conduct business

E-Business is part of a broader Internet economy

which Encompasses all of the activities involved in
using the Internet for commerce, which are consist
℘ An organizations, management and strategy
of can1.Internet infrastructure
also connect layer 2.Internet
within E-Commerce
technology application infrastructure layer 3.Internet
intermediaries layer 4. Internet commerce layer
The benefits of e-business include reduced- 2 -
costs,
improved efficiency and access to larger markets.
 E-COMMERCE: - A common
activity associated with e-business is
electronic commerce (e-commerce)
using technology to conduct business
transactions, such as buying and selling
goods and services.

Using Information System for Strategic Advantage

ENTERPRISE SYSTEM: - aim to support the business processes of an organization across any
functional boundaries that exist within that organization.

The main elements of an enterprise system are:-

1. Enterprise resource planning (ERP) which is concerned with internal

production, distribution and financial processes,

2. Customer relationship management (CRM) which is concerned with

marketing and sales processes

3. Supply chain management (SCM) which is concerned with the flow

of materials, information and customers through the supply chain and

4. Supplier relationship management (SRM) which is concerned with

sourcing, purchasing and the warehousing of goods and services.

5. Other elements may include product lifecycle management (PLM),

financial management and human capital management.
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3. Describe management challenges in information systems

Management Challenges

 Implementing Strategic Information System (SIS) can be risky the investment involve
in implementing SIS is High
 SIS requires planning Porter and Millar framework can be used to plan and develop a
strategy of how to use SIS
 Sustainability of competitive advantage competitive advantage isn’t always sustainable
 Unstructured nature of important decisions.
 Diversity of managerial roles.
 Complexity of decision making.

Why SIS are difficult to build and sustain

℘ Expensive
℘ Risky to build (time consuming)
℘ Easily copied by other firms
℘ Implementing strategic systems often requires extensive organizational change and a
transition from one sociotechnical level to another

4. The changing role of information systems in organization

Role of Management Information System

 System ensures that an appropriate data is collected from the various sources, processed,
and sent further to the entire needy destination.
 MIS helps in Strategic Planning, Management Control, Operational Control and
Transaction Processing.
 MIS plays the role of information generation, communication, problem identification and
helps in the process of decision making.
 Globalization: - It has not only brought the world closer together, but it has allowed the
world’s economy to become a single interdependent system. This means that we can
bring down barriers of linguistic and geographic boundaries.
 Communication: - With the help of this, communication has become cheaper, quicker and
more efficient.
 Cost effectiveness: It has helped to computerize business processes thus streamlining
businesses to make them extremely cost effective money making machines.

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5. How can managers use technology for decision making and information systems

Management Information System (MIS) As a Career

• MIS professionals are leaders who initiate, design and apply technology to transform
business functions and produce innovative products and services.
• MIS professionals have following career options:
℘ Analyst
℘ Consultant
℘ Application Developer
℘ Data Analyst
℘ Project Leader

Roles of MIS Professionals

 MIS as a System Analyst study business problems and implement systems to solve them.
 MIS as a Consultant analyze problems and change business processes.
 MIS as an Application Developer develop software to gather and store data
 MIS as a Data Analyst extracts and analyzes organizational data.
 MIS as a Project Leader organizes a team of analysts, programmers and others to create
an innovative solution

Technology: - refers to information technology (IT), which includes computer

hardware/software, telecommunications, networks, and database.

Management function includes planning, organizing, coordinating, and controlling.

Stages of Decision Making

℘ Intelligence:-Collect information; identify problem

℘ Design:-Conceive alternatives; select criteria
℘ Choice:-Use criteria to evaluate alternatives; select
℘ Implementation: - Put decision into effect; allocate resources; control

REAL WORLD DECISION MAKING

1. Information Quality: Decision may suffer if the information quality doesn’t meet the
decision quality.
2. Management Filters: Information collected by managers through a series of filters. Where
information are rejected if it does not conform to manager.
3. Organizational Culture: some strong forces within organization such as their capabilities
and competencies resist making decision where major changes in business processes are
involved.

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How decision making process work?

Simon (1960) introduced a Decision Making Process which includes four stages. In his theory he
discussed in detail that how actually decision making process works. The following diagram was
given by Simon.

6. Describe and identify information systems and business strategy

Information Systems and Business Strategy

Business Objectives of Information Systems

1. Operational excellence

2. New products, services, and business models

3. Customer and supplier intimacy

4. Improved decision making

5. Survival

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1. Operational

•Improved efficiency results in higher profitability

•Information systems and technologies help to improve higher levels of efficiency and
productivity.

2. New products, services, and business models

• Information systems and technologies enable firms to create new products, services,
and business models
• A business model includes how a company produces, delivers, and sells its products or
services to create wealth.

3. Customer and supplier intimacy

• Customers who are served well become repeat customers who purchase more

4. Improved decision making

A company’s bottom making: managers being swamped with data that are neither timely
nor helpful, forcing them rely on forecasts, best guesses, and luck resulting in over or under
production of goods and services, misallocation of resources, and poor response time

Real-time data have improved the ability of managers to make decisions

5. Survival: - Businesses may need to invest in information systems out of necessity

℘ Necessity arises from keeping up with competitors, such as when

Citibank New York introduced ATMs in 1977.

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