KIBABII UNIVERSITY

COURSE OUTLINE

FACULTY/SCHOOL: SCHOOL OF BUSINESS AND ECONOMICS

DEPARTMENT: BUSINESS ADMINISTRATION AND MANAGEMENT
PROGRAMME: MASTER OF BUSINESS ADMINISTRATION
ACADEMIC YEAR: 2021/2022 YEAR: 1 SEMESTER 1
COURSE CODE: MBA 805
COURSE TITLE: MANAGEMENT INFORMATION SYSTEMS
LECTURER NAMES: DR. ROSELIDA MAROKO ONGARE
LECTURER’S CONTACT: 0721597710 EMAIL: rongare@kibu.ac.ke
LECTURERS OFFICE: ABC 319 CONSULTATION DAY/HOUR: Tuesday 8.00-5.00PM
Prerequisites: None Contact Hours: 42

COURSE PURPOSE
The course aims to provide a framework of knowledge and skills relevant to the construction,
utilization of management of information systems in organizations.

EXPECTED LEARNING OUTCOMES

By the end of this course the learner should be able to;
1. discuss systems and management concepts and their relevance to information systems
2. evaluate the strategic role of information systems in the organization
3. discuss information systems development process.
4. identify the issues in the development of information systems
5. develop strategies for the successful development and implementation of information systems

CONTENT
WEEK TOPIC PRESENTER
1 TOPIC 1: Introduction to Management Dr. Roselida Maroko
information system (MIS)
▪ Management
▪ Information systems
▪ Management information system
▪ Dimensions of MIS

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2 TOPIC 2: Information systems
• Types of ISs
• ISs and business processes

3 TOPIC 3: Information Systems Strategy

• ISs strategy
• Business process reengineering
4 TOPIC 4: Enterprise Applications
• Functional business systems
• Enterprise resource planning systems
5 TOPIC 5: IT Infrastructure
• Hardware
• Networks
• Databases
6 TOPIC 6: Developing IT Solutions
• Systems development
• Managing IT projects
7 CAT ONE
8 TOPIC 7: Computer Security and Ethical
Challenges
• Computer security
• ISs ethical challenges
9 TOPIC 8: Managing Information
Technology
• The IS function
• Outsourcing
10 TOPIC 9: System Theory
• Components of system
• Types of systems
• Control systems
• Types of Feedback
11 TOPIC 10: Application of System
Approach
• Information Systems
• System Development Strategies &
Methodologies.
12 CAT TWO

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 13 TOPIC 11: Evolution of the development
life cycle
• Evolution of SDLC
• Phases in development cycle
• Feasibility techniques
• Fact finding techniques
14 FINAL EXAMINATION

MODE OF DELIVERY
Blended learning, on line, Lectures and tutorials; group discussions; demonstrations; Individual
assignment; Case studies

INSTRUCTIONAL MATERIALS AND EQUIPMENT

It will involve a combination of textbooks, course materials, white board and PowerPoint
projection.

COURSE ASSESSMENT
Written Examination ……………………………………………………………..60%
Continuous Assessment Test (CATS) ……………………………………………40%
TOTAL ………………………………………………………………………… 100%

CORE REFERENCES:
Hoffer, J. A., George, J. F. and Valacich, J. S. (2011). Modern systems analysis and design
(6th edition), Pearson/Prentice Hall ; Upper Saddle River, New Jersey
Kendall and Kendall. (2011). Systems Analysis & Design, Pearson (Upper Saddle River, New
Jersey, ISBN: 9780135094907
Laudon, J. C. & K. Laudon, (2007), Management information systems : managing the digital firm,
Pearson/Prentice Hall, ; Upper Saddle River, NJ
O’Brien.J, and Marakas G.M. (2008), Management information systems, McGraw-Hill Irwin,
;Boston, MA
Turban, E. (2003), Information Technology for Management: Transforming Business in the
Digital Economy, Hoboken, New Jersey John Wiley & Sons

Recommended Reference Materials:

O'Leary, T. J. and O'Leary, L. I. (2013). Computing Essentials : Making It Work for
You, Complete (The O'Leary Series), McGraw-Hill College; 23rd Revised edition, Introduction
to computers and communications (2013) McGraw-Hill (Boston
Massachusetts), ISBN: 0077470672
Shelly, C. and Vermaat. (2011). Discovering Computers, Thomson Course Technology, ISBN:
9780495806813

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Core Journals
International Journal of Business Information Systems
Business & Information Systems Engineering
Academy of Information and Management Sciences Journal

SIGNATURE OF THE COURSE LECTURER: __________________ DATE: 16/11/2021

CHECKED AND VERIFIED BY: ________________________________________________

COD, BUSINESS ADMINISTRATION AND MANAGEMENT

APPROVED BY: ___________________________________________________________

DEAN, SOBE

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 TOPIC 1: INTRODUCTION TO MANAGEMENT INFORMATION SYSTEM
(MIS)

Expected Learning Outcome

After covering this topic, you will be able to:
 Define an information system from both a technical and business perspective
 Explain why information systems are so important today for business and management.
 Evaluate the role of information systems in today’s competitive business environment.

Introduction

Data
Data means all the facts arising out of the operations of the concern.

Management
Management covers the planning, control, and administration of the operations of a concern. The
top management handles planning; the middle management concentrates on controlling; and the
lower management is concerned with actual administration.

Information
Information, means the processed data that helps the management in planning, controlling and
operations. Data is processed i.e., recorded, summarized, compared and finally presented to the
management in the form of MIS report.

Dimensions of Information
Information may be understood to have various dimensions. However, for our purpose, the
following dimension of information will be of interest.
i) Economic dimension,
ii) Business dimension, and
iii) Technical dimension.

Economic Dimension
This dimension of information refers to the cost of information and its benefits.

Cost of information
It may include
i. Cost of acquiring data,
ii. Cost of maintaining data,
iii. Cost of generating information, and

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iv. Cost of communicating information.
The cost is related to the response time required to generate information and communicate it. For
systems with low response time, cost is high.

Value of information
Before a particular piece of information is acquired, decision-makers must know its value. In
decision theory, the value of information is the value of the change in decision behaviour because
of the information. The change in the behaviour due to new information is measured to determine
the benefits from its use. To arrive at the value of new information, the cost incurred to get this
information is deducted from the benefits.

Business Dimension
This dimension relates to the business angle of information. Its value to the organization,
sustainability of getting the information from a managerial standpoint, accuracy and reliability of
the information, scope and appropriateness of the information are the parameters for understanding
the business dimension of the information. This dimension has got more to do with the ‘what’ of
the information rather than the ‘how’. Business dimension of information can have the following
parameters:
• Time dimension – information has to be timely to be of any value. The basic utility of
information within an organization is in decision-making. If the information is not timely then
the decisions derived out of it will have poor quality. Hence, time is an important dimension
of information.
• Accuracy dimension – information has to be accurate to satisfy the user. Again, this is an
important dimension as inaccurate information leads to bad decision-making.
• Reliability dimension – information has to be reliable so that users have confidence.
• Appropriateness dimension – information must be relevant to the receiver. It must be
appropriate to his needs.
• Scope dimension – information should be within the scope.
• Completeness of content dimension – information should be complete and not in bits and
pieces.

Technical Dimension
The technical dimension relates to the information gathering, summarizing, storing and retrieval,
analysis and cost aspects of information. It can have the following parameters:
 Information gathering – the means of capturing the data and storing it
 Analysis methodology – the data processing methodology
• Costs of information –
• Cost of data acquisition – the cost of data acquisition from the point of view of time and
resource (technical) costs. A piece of data is supposed to be costly to acquire if say, it is

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 recovered from a secondary source after processing it for a long time. On the other hand,
the cost of acquisition of data is low for such cases when (say), the customer is himself
putting such data into the system (like in the case of ATMs or online banking, the systems
cost of acquiring data is very low is such cases)
• Cost of data maintenance – is the cost of maintaining the data in terms of technical costs
of space and efforts (technical) in maintaining it. A data source that requires a lot of
technical efforts like indexing, etc., and requires huge storage (for say storing images, etc.),
is said to be more costly.
• Cost of data access – is the cost in terms of resource requirements (both processing and
network) for accessing the data. Data that can be accessed after utilizing a lot of CPU and
network resources is said to be costly to access.

Technological Issues
Networking and communication relate to transmission of data in a network
1. Methodology – the methodology of networking and communication.
2. Protocol – the rules and procedures followed in the transmission of data in the network.
3. Topology – the layout of the network.

System
Data is processed into information with the help of a system. A system is made up of inputs,
processing, output and feedback or control.

Hardware
Hardware means equipment and machinery. This category encompasses the computer and all of
its supporting equipment in modern information systems. The supporting devices contain input
and output devices, communication devices and storage device. Hardware in pre-computer
information systems may contain ledger books and ink.

Hardware vs. software

You know that working with hardware and software is a large part of an IT department’s work,
but what counts as hardware? And what’s software? Let’s break down this important distinction.

Hardware includes all the physical parts of a computer system. This includes hardware installed
inside the computer like the motherboard, central processing unit and hard drive. Hardware also
describes components that can be connected to the outside of a computer like a keyboard, mouse
and printer. Keep in mind though that some tablets and smaller laptops integrate items like a
keyboard and a mouse within the device. Basically, hardware is any part, component or device
related to computers and their networks that you can physically touch and manipulate.

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Unlike hardware, software is not something you can physically change. Software encompasses all
the data, application and programs stored electronically, like an operating system or a video-editing
tool.

Information Technology
The most basic information technology definition is that it's the application of technology to solve
business or organizational problems on a broad scale. No matter the role, a member of an IT
department works with others to solve technology problems, both big and small.

We can also define Information technology (IT) as everything that businesses use computers for.
Information technology is building communications networks for a company, safeguarding data
and information, creating and administering databases, helping employees troubleshoot problems
with their computers or mobile devices, or doing a range of other work to ensure the efficiency
and security of business information systems.

There are three primary pillars of responsibility for IT in an organization:

1. IT governance: This refers to the combination of policies and processes that ensure IT systems
are effectively run and in alignment with the organization’s needs.
2. IT operations: This is a general category for the daily work of an organization. This includes
providing tech support, network maintenance, security testing and device management duties.
3. Hardware and infrastructure: This focus area refers to all the physical components of IT
infrastructure. This pillar of IT includes the setup and maintenance of equipment like routers,
servers, phone systems and individual devices like laptops.

Even though an organization’s IT department handles many different functions and plays a critical
role in keeping things running, the perfect IT department is the one you aren’t even aware of. This
means that they are able to automate and create processes for many of their daily tasks, so that the
business continues to run smoothly. The ideal IT department is also aligned with the business’s
goals and transparent in its processes in a way that the rest of the business can understand and
provide input on.

Why is information technology important?

Simply put, the work of most organizations would slow to a crawl without functioning IT systems.
You’d be hard-pressed to find a business that doesn’t at least partially rely on computers and the
networks that connect them. Maintaining a standard level of service, security and connectivity is
a huge task, but it’s not the only priority or potential challenge on their plates.

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More and more companies want to implement more intuitive and sophisticated solutions. “IT can
provide the edge a company needs to outsmart, outpace and out-deliver competitors.

Let’s take a look at the needs that current and future IT:
• Data overload: Businesses need to process huge amounts of data. This requires large
amounts of processing power, sophisticated software and human analytical skills.
• Mobile and wireless usages: More employers are offering remote work options that
require smartphones, tablets and laptops with wireless hotspots and roaming ability.
• Cloud services: Most businesses no longer operate their own “server farms” to store
massive amounts of data. Many businesses now work with cloud services—third-party
hosting platforms that maintain that data.
• Bandwidth for video hosting: Videoconferencing solutions have become more and more
popular, so more network bandwidth is needed to support them sufficiently.

Influence of IT on organizational goals

Organizational goals refer to objectives and the mission of the organization, especially in the long
term. Regardless of the type of business that an organization engages in, the overall goal is to
create value for the customers or clients.

Business Information Technology alignment is concerned with using information technology to

effectively achieve business goals.

Two of the most common ways that an organization can provide value is by offering a quality
product at a lower price than the competitor or at a high price but with more features that add value
to the customers.

Information technology enables businesses to process and analyze large amounts of data at a
cheaper cost and within the shortest possible time. This enables organizations to provide quality
products at a cheaper price.

Let’s take a bank example. A bank can use ATM to allow the clients to withdraw money and other
automated means to deposit money. Customers with queries can be directed to a website that has
frequently asked questions. Both individuals and businesses can view the statements online if they
subscribe to internet banking.

The above IT business practices lead to reduced costs of doing business and creating new products
and services. Reduced cost of doing business enables a bank to reduce the bank charges, therefore,
offering a quality product or service at a cheaper rate.

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Information System and why it Matters
Businesses have faced several challenges over the years that have made it more difficult to
maintain a competitive edge. From globalization to increased regulations to COVID-19-based
restrictions, companies have no choice but to evolve, adapt, and get creative.

Saving money and resources while finding new ways to streamline operations is critical. Using an
optimized software solution to gather internal and external data is a common solution to these
problems, but many don't make the best use of the information they have.

Companies that implement an information system to collect, store, and transfer information can
improve operational decision-making, problem-solving, resource planning. Read ahead for an
overview of an information system and why effectively managing computer information is a
critical component to a company's success.

Information System Triangle: An information system triangle is the three components required
for an information system to work. These include people, business processes, and technology
systems.

An information system encompasses a variety of technology systems used to collect, process,

store, and administer software data to business users.

Information system is set of people, information technology, and business process required to
achieve a business objective.

Information systems are a set of interconnected elements working together to collect, process,
store, and distribute information to help coordination, visualization in an organization, analysis,
and decision-making.

The Information system can be defined as a collection of software, hardware,

and telecommunications network that people develop and use to gather, create, and distribute
useful data, mainly in organizational settings.

In other words, an information system means a collection of interrelated components which work
together to gather, process, store, and break down (analyzing) the information to help decision
making.

An IS has several different components that work together to help employees and managers
perform their jobs. These operating system components include hardware, software solutions, the
IS's housing infrastructure, and all of the users involved with the system.
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The use of cases of information systems is endless. From supply chain management to performing
payroll to fostering customer interactions, organizations use an IS to automate repetitive processes
and increase knowledge management.

With greater access to relevant data, business users can communicate to streamline business
processes and meet key objectives.

1. Pinpoints Growth Opportunities: Growing companies need a strong infrastructure to manage

all of their data and extract valuable insights. An information system can generate reports,
pinpoint inefficiencies, identify cost savings opportunities, and streamline activities. All of
which improve internal operations. Because a management system automates manual
processes, departments are free to focus on achieving their goals rather than working on
repetitive tasks. This allows business owners to have more resources, time, and knowledge to
focus on building their business and developing new products/services.
2. Stores Valuable Information: A log of transaction data helps users pinpoint the root cause of
problems and delivers the insight necessary to identify the solutions to those problems.
Examples of information system data stored by an IS include records of interactions,
operational information, and valuable documents. Manually storing information is costly and
ineffective, while an information system stores and manages all relevant data in one centralized
location that is easily accessible to business users.
3. Optimizes Decision-Making: Before the digital age, business owners had to use a lot of
guesswork to make important decisions. While instinct can be helpful in certain circumstances,
using statistical evidence can help others feel confident in managements' choices. It also
provides data analysis and recommendations that pinpoint the best solutions. Furthermore, an
information system is accessible to authorized individuals, with new data inputs updated
immediately in the system. Employees can rest assured that their decisions are made on the
most relevant information.
4. Improves Business Communication: Proper communication is essential to any company's
success. An information system improves business communication by making data accessible
to everyone in customized formats. Users can easily share, upload, and transfer data without
flooding an email inbox. Because data inputs are updated immediately, workers can view the
changes without ever speaking to the other person. Externally, businesses can optimize
customer relationships by maintaining accurate records of client interactions, offering self-
service options that answer client questions, or providing automatic updates for a customer
order. Organizations can optimize customer relationship management by sharing data with
clients when needed (shipping information, billing data, etc.) In summary, an information
support system optimizes communication while minimizing all of the factors that harm it, such

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 as irrelevant data, human error, or overwhelmed email boxes.
5. Saves Money: Though it can be expensive to invest in a management information system, the
cost savings opportunities provide a return on investment. Manual processes require more
workers, drive up costs, and take up valuable resources. Traditional data management in the
form of file cabinets or extra office space not only cost more money but provide ripe
opportunities for theft and fraud. Compliance is also a growing concern among organizations,
as regulations evolve and penalties increase. Utilizing a systems management network can
ensure that business processes are following all of the rules and regulations required by
federal/local regulators. In summary, using an information system can save money, pinpoint
cost savings opportunities, and help workers allocate resources more effectively.

How an Information System Can Generate Profits

1. Helps an organization analyse stocks and check previous performance levels to mitigate
against disaster
2. Track profits and margins so business has all information required to mitigate a crisis
3. Reduces transaction costs and search costs and yields a greater flexibility of production

Dimensions of an information system

There are various dimensions of an information system:
1. Organizational dimension
2. Management dimension
3. Technology dimension

Management Dimension
In today's world, managers face business challenges. Information systems provide managers with
the tools and information they have to plan, manage, monitor their work, make decisions, develop
new goods and services, and make long-term tactical decisions.

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Technology Dimension
Management makes use of technology to fulfil their duties. It contains- computer hardware and
software, networking/telecom technology, and data management. It's one of the many strategies a
manager can use to deal with changes. Organizational levels, processing, system goals, mode of
data and type of support provided are used to classify information systems.

Components of Information System

There are various components of an information system:
• Hardware
• Software
• Data
• Procedures
• People
• Feedback

Let's discuss the above components in detail

Software
In an information system, software means computer programs as well as the manuals which
support them. Computer program means the machine-readable instructions that tell circuitry in the
system's hardware to work to generate helpful information from the data. In most cases, programs
are stored on an input/output medium, such as a tape or disk.

Data
Data means facts that systems use to generate valuable knowledge. Data is usually stored in
machine-readable form on tape or disk until the computer requires them. The data in pre-computer
information systems is usually stored in a human-readable format.

Procedures
Procedures mean rules which govern how an operation is performed in information system.
"Procedures are for people what software is for hardware" is a general analogy that we used to
clarify the importance of procedures in a system.

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People
Every system requires individuals if the system is to be beneficial. People are often the most
neglected part of the system, and they are possibly the factor that has the greatest impact on the
success or failure of information systems.

This contains clients, yet additionally the individuals who operate as well as service the computers,
those who support the network of computers, and the individuals who keep up the information.

Summary
 Explain why information systems are so important today for business and management.
Information systems are a foundation for conducting business today. In many industries,
survival and even existence without extensive use of IT is inconceivable and IT plays a critical
role in increasing productivity. Although information technology has become more of a
commodity, when coupled with complementary changes in organization and management, it
can provide the foundation for new products, services, and ways of conducting business that
provide firms with a strategic advantage. Information technology has become the largest
component of capital investment for firms in the United States and many industrialized
societies.
 Evaluate the role of information systems in today’s competitive business environment.
Information systems have become essential for helping organizations deal with changes in
global economies and the business enterprise. Information systems provide firms with
communication and analytic tools for conducting trade and managing businesses on a global
scale. Information systems are the foundation of new knowledge-based products and services
in knowledge economies and help firms manage their knowledge assets. Information systems
make it possible for businesses to adopt more flexible arrangements of employees and
management that can coordinate with other organizations across great distances. Organizations
are trying to become more competitive and efficient by transforming themselves into digital
firms where nearly all core business processes and relationships with customers, suppliers, and
employees are digitally enabled. The Internet is bringing about a convergence of technologies
that is further widening the use of information systems in business and transforming industries
and business models.
 Assess the impact of the Internet and Internet technology on business and government.
The Internet provides global connectivity and a flexible platform for the seamless flow of
information across the enterprise and between the firm and its customers and suppliers. It is
the primary technology infrastructure for electronic commerce, electronic business, and the
emerging digital firm. In electronic commerce (e-commerce), businesses can exchange
electronic purchase and sale transactions with each other and with individual customers.
Electronic business (e-business) uses Internet and other digital technology for organizational
communication and coordination, collaboration with business partners, and the management
of the firm, as well as for electronic commerce transactions. Digital firms use Internet
technology intensively to manage their internal processes and relationships with customers,
suppliers, and other external entities. E--government uses the Internet and intranets to improve
delivery of government services, make internal operations more efficient, and empower
citizens to network electronically with other citizens.

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 Define an information system from both a technical and business perspective and
distinguish between computer literacy and information systems literacy.
An information system collects, stores, and disseminates information from an organization’s
environment and internal operations to support organizational functions and decision making,
communication, coordination, control, analysis, and visualization. Information systems
transform raw data into useful information through three basic activities: input, processing,
and output. From a business perspective, an information system creates economic value for the
firm as an organizational and management solution, based on information technology, to a
challenge posed by the environment. The information system is part of a series of value-adding
activities for acquiring, transforming, and distributing information to improve management
decision making, enhance organizational performance, and, ultimately, increase firm
profitability.

Information systems are rooted in organizations; they are an outcome of organizational

structure, culture, politics, workflows, and business processes. They are instruments for
organizational change and value creation, making it possible to recast these organizational
elements into new business models and redraw organizational boundaries. Managers are
problem solvers who are responsible for analysing the many challenges confronting
organizations and for developing strategies and action plans. Information systems are one of
their tools, delivering the information required for solutions. Information systems both reflect
management decisions and serve as instruments for changing the management process.
Information systems cannot make managers and organizations more effective unless they are
accompanied by complementary assets such as new business processes, organizational culture,
or management behaviour.

Information systems literacy requires an understanding of the organizational and management

dimensions of information systems as well as the technical dimensions addressed by computer
literacy. Information systems literacy draws on both technical and behavioural approaches to
studying information systems. Both perspectives can be combined into a sociotechnical
approach to systems.

 Identify the major management challenges to building and using information systems.
There are five key management challenges in building and using information systems:
a. obtaining business value from information systems;
b. Providing appropriate complementary assets to use information technology effectively;
c. Understanding the system requirements of a global business environment;
d. Creating an information technology infrastructure that is flexible enough to support
changing organizational goals; and
e. Designing systems that people can control, understand, and use in a socially and ethically
responsible manner.
Review Questions
1. List and describe four reasons why information systems are so important for business today.
2. Describe five technology and business trends that have enhanced the role of information
systems in today’s competitive business environment.

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3. Describe the capabilities of a digital firm. Why are digital firms so powerful?
4. What is an information system? Distinguish between a computer, a computer program, and an
information system. What is the difference between data and information?
5. What activities convert raw data to usable information in information systems? What is their
relationship to feedback?
6. What is the purpose of an information system from a business perspective? What role does it
play in the business information value chain?
7. What is information systems literacy? How does it differ from computer literacy?
8. What are the organizational, management, and technology dimensions of information
systems?
9. What are the Internet and the World Wide Web? How have they changed the roles played by
information systems in organizations?
10. Why do some firms obtain greater value from their information systems than others? What
role do complementary assets and organizational and management capital play?
11. Distinguish between a behavioural and a technical approach to information systems in terms
of the questions asked and the answers provided. What major disciplines contribute to an
understanding of information systems?
12. What are the key management challenges involved in building, operating, and maintaining
information systems today?
13. Information systems are too important to be left to computer specialists. Do you agree? Why
or why not?
14. As computers become faster and cheaper and the Internet becomes more widely used, most of
the problems we have with information systems will disappear. Do you agree? Why or why
not?

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