MANAGEMENT

INFORMATION SYSTEM
ESSENTIALS
BY:
SURESH KUMAR
 REFERENCES:
• DAVID M.KROENKE, MIS ESSENTIALS
INTERNATIONAL EDITION, PEARSON
PRENTICE HALL, 2010;
• MANAGING INFORMATION
TECHNOLOGY, …
• LONG AND LONG, INTRODUCTION TO
COMPUTER 10TH EDITION,
PEARSON PRENTICE HALL, 2009;
•
 MIS and YOU
• NAME : DEE CLARK
• POSITION : SALES MARKETING DIRECTOR OF
ACADEMIC AND HOSPITAL DIVISION
• COMPANY : EMERSON PHARMACEUTICALS
• COMPANY
 LIABILITIES : $4 BILLION
• EMPLOYEES : 450 SALESPERSON
• DUTY OF : TO PRESENT DRUGS AND
 EMPLOYEES : INFORMATION ABOUT THEIR
EFFECTIVENESS AND USE TO DOCTORS
• FOCUS OF DUTY : DOCTORS AND PHARMACICTS IN
MEDICAL SCHOOLS AND IN HOSPITAL
• PROBLEMS :- MANY COMPETITORS
 - TO DISSEMINATE SUCCESFUL
 TECHNIQUE OF ANY REPRESENTATIVE
TO OTHER REPRESENTATIVES
• SOLUTIONS :
 HOLDING SEMINAR BY INVITING DOCTORS AND
OTHER PROFFESSIONALS BY LEADING MEDICAL
RESEARCHERS, AND SOMETIMES SHE HERSELF MAKES
PRESENTATION TO HOSPITALS
• A FRIEND’S ADVICE :
 TO USE A BLOG TO DISSEMINATE THE LATEST
PRODUCT NEWS, CURRENT COMPETITIVE THREATS AND
RESPONSES, RECENT SUCCESSES AND OTHER
INFORMATION.
• PROBLEMS IN DEE’S THOUGHT:
– Is this possible? Can I have it done on
time?
– What will I need to learn? How hard
will it be to post my thoughts,
pictures, and other resources on the
blog?
– Will the salespeople use the blog?
What can I do to make it easy for
them to do so?
– What kind of computer do I need to
support the blog?
– Where do I begin?

 Dee’s situation illustrates why
the knowledge in this class is vitally
important to business professionals
today. Dee is a marketing manager.
In college, she majored in marketing.
She is not an information systems
professional, and she never thought
she would need to know how to
manage the construction of an
information system. Yet that is
exactly what her job now requires
her to do.
 This could happen to you!!!!!!!
Q1 What is an Information
System?
• A system is a group of interrelated
components working together toward
a common goal by accepting inputs
and producing outputs in an
organized transformation process.
• An information system(IS) is typically
considered to be a set of interrelated
elements or components that
collect(input), manipulate(processes),
and disseminate (output) data and
information and provide a feedback
mechanism to meet an objective.

 THE STRUCTURE
Control
Control of
of System
System Performance
Performance

Input
Input of
of Output
Output of
of
Processing
Processing
Data
Data Information
Information
Data
Data
Resources
Resources Products
Products

Storage
Storage of
of Data
Data Resources
Resources
 EXAMPLE
Environment

Feedback Feedback
Signals Signals
Control Control by Control
Signals Management Signals

Input of Manufacturing Output of

Raw Materials Process Finished
Products
System Boundary
Other Systems
• An information system depends on
the resources of people (end
users and IS specialists), hardware
(machines and media), software
(programs and procedures), data
(data and knowledge basis), and
networks (communications media
and network support) to perform
input, processing, output, storage,
and control activities that convert
data resources into information
products.
Information System Resources
THINK:

• TO MAKE A CLASS

REPORT

• AIRLINE RESERVATION

SYSTEM
 Back to Dee’s problem.
Now she definitely needs this five components of

the Information System that will support her blog

especially, PEOPLE AND SOFTWARE
components.
• Dee and her product managers will contribute to
her blog
• The salespeople will need software (procedures)
for accessing the blog.
• Someone will need to support the hardware and
software (program) as well as administer the
data contained in the blog.
Q2 What is MIS
• MIS—management information
systems—is the development and
use of information systems that
help businesses achieve their goals
and objectives


• Three key elements:

– Components of information systems
– Development and use of information systems
– Achieving business goals and objectives

• Development and Use of Information
Systems


– You should take an active role in

specifying requirements and helping
manage development projects since
you are the one who’ll be using the
system to do your job.


– Your responsibilities also include using

information systems responsibly and
protecting the system and its data.

• Achieving Business Goals and
Objectives


– Businesses themselves do not “do”

anything, the people do.


– Information systems exist to help

people in business achieve the goals
and objectives of that business.



 Q3 – What is the Difference Between
Information Technology and Information
Systems?
Because many people confuse the two terms, compare


what each one consists of and how the two differ.

•
nIn fo rm a tio n te ch n o lo g y
• Information Systems
• p e rta in s to
include five
• qPro d u cts components
• qM e th o d s – Hardware
• qIn ve n tio n s – Software
• qS ta n d a rd s – Data
 – Networks
– People
Information technology drives the development of new
information systems.

17
 IS V s IT Payroll
System

INFORMATION
TECHNOLOGY Inventory
System
Hardware
Software are used to build
INFORMATION
Databases SYSTEMS
Networks
Marketing
Other related System
components

Customer
Service
System

Shahzad Arain
• Consider Dee and her blog. She will use
IT, but that isn’t her primary interest.
Her goal is to combine the IT in
hardware, software, and data with the
procedures to enable herself,
Emerson’s product managers, and her
sales reps to accomplish their own
goals and objectives.
• Consider You and Your university. Do
you care that the university network
uses the latest, greatest technology
to send messages across campus? Do
you care that the university’s Web site
uses the latest, fastest hardware to
show you available classes? Not
really. It is only when the humans at
the university (including you) use
procedures to do something – to
Q4 How Do Successful
Business
Professionals Use IS?
• Think creatively about the problems,
challenges, and opportunities in
your business and organization and
be able to apply new technology to
your business needs.
• Knowing how to write e-mail, access
Web pages, and do instant
messaging doesn’t give anyone a
competitive advantage in the
workplace.
• Consider Dee Clark, she needs to
rapidly and conveniently transmit
the latest news, advice, and
opportunities t the sales reps with
whom she deals by using The Blog
which gave both her and her sales
reps a competitive advantage.
• Other example, Amazon.com
founder, Jeff Bezos, didn’t invent
any technology rather than
combining the emerging
technology of internet, with existing
database technology, enabled a
• Or Chad Hurley, Steve Chen, and Jawed
Karim registered the domain
“YouTube” on February 15, 2005 and
posted their first video by April 23. By
November, YouTube had 200,00
registered users and was showing 2
million videos per day.
 By January 2006, YouTube was
showing 25 million videos per day. By
May 2006, YouTube was showing 43
percent of all videos viewed over the
internet. By July 2006 with only 30
employees, YouTube was serving 100
million videos per day.
That phenomenal success was capped by

Google’s $1.65 billion of YouTube in

October 2006.
Q5 What New Opportunities for IS
Are
Developing Today?
• Two Opportunities, Right Now
 “The cost of production is zero (so
low)”
 In this case, the costs of storage
and data transmission are so low
compared to other business
expenses.
Selling images over internet (exe.

Getty Images)
Online Training (exe. Media
MOORE’S LAW
• Moore’s Law (GORDON MOORE, cofounder of
Intel Corporation)
 “The number of transistors per square
inch on an integrated chip doubles every
18 months.”


• Dramatic Reduction in Price/Performance

Ratio
– Ratio fallen dramatically for over 40 years
and is estimated to continue to fall in
accordance with Moore’s Law. Computers
have shrunk from multimillion-dollar, room
filling machines in 1968 to $300 small
desktop devices in 2008


• Enabled developments such as:

– Laser printers, Graphical user interfaces, 24
Fig u re 1 -6 C o m p u te r Price / Pe rfo rm a n ce R a tio
D e cre a se s
Q6 What is Your Role in IS
Security?
IS create value as long with the risk.
 Buying over the internet needs
credit card!!!
• Strong Passwords
– Has seven or more characters
– Does not contain your user name, real
name, or company name
– Does not contain a complete dictionary
word in any language
– Is different from previous passwords you
have used
– Contains both upper- and lowercase
letters, numbers, and special
characters (such as ~ ! @ # $ % ^ & *
• Password Etiquette
– Never write your password, and do
not share it with others or ask
others for their passwords
Q7 What is This Class
About?
• Now, you should have an idea that this
class is much broader than just
learning how to use Excel or
Dreamweaver.
• MIS is all-encompassing. Consider the
components: hardware, software,
data, networks, and people. Do you
want to be an engineer? Then work
with the hardware component. Do you
want to be a programmer? Write
software. Do you want to be a
practicing philosopher, an applied
epistemologist? Learn data modeling.
 Do you like social systems and
sociology? Learn how to design
effective group and organizational
procedures. Do you like people?
Become an Is trainer or computer
systems salesperson. Do you enjoy
management? Learn how to bring all of
those disparate elements together.


To understand MIS, you need to



understand both business and

technology, and you need to be able to
relate on to the other.
 What Did Dee Clark Get?
Dee’s work can be guided by the five
components. She will need a computer with
software and data to store and training
before she could post entries to her blog.
The salespeople too will need training for
accessing the blog and for sending her
comments about blog entries.
She will need to think constantly about how

she can use other technology in other

systems to help her accomplish her goals
and objectives because technology will
continue to develop and improve.
She also knows that she will need a strong

password to control access to her blog.

Collaboration Exercise 1
1.How did the availability of near-free
data communication and data
storage facilitate YouTube’s success?
Would YouTube have been possible
without them?
2.Even though the cost of data
communication and data storage is
very low, for the volume at which
YouTube operates they are still
substantial expenses. How did
YouTube fund these expenses?
(Search the internet for “History of
3.How does YouTube (now owned by
Google) earn revenue?
4.Search for a large corporation over
Google, and find out how they could
sell an idea into millions of dollars of
business.
5.As a team, define innovations.
6.Using the corporation you identified in
question 4 and your team’s definition
of innovation in question 5, identify
three innovative ways that the
corporation could take advantage of
the low cost of data communication