Managing

Information
Systems
Week 1

IT and IS

What is Information Technology?

Any

form of technology used by people to handle

information.

What are Information Systems?

Integrated

components processing, storing and

disseminating information in an organisation.

Study

of systems that provide information to

users in organisations.

Information and Data

Information
Clusters

of facts meaningful and useful to

human beings in processes such as
making decisions

Data
Streams

of raw facts representing events

such as business transactions
meaningless without structure

Experiences of IT and IS

Examples of IT
Hardware (PC, UNIX server)
Software (e-mail, Internet, Windows, Word)
Consumer devices (mobiles, train times)
Examples of IS
File systems, databases, e-mail servers /
clients
e-commerce
SAP, student records

Management Information
Systems
Management

Information

System

The study of information

systems focusing on their
use in business and
management.

Why is IS Important?
For

an organisation to survive and

prosper
More
New

locations (networking, Internet)

products and services

Improve

jobs and work flows:

Efficiency
Cost
Ethical

and social issues

Fundamental Role of IS
Support

of Business Decision Making.

Information

systems also help store managers

and other business professionals make better
decisions.

For

example, decisions about what lines of

merchandise need to be added or
discontinued and what kind of investments
they require are typically made after an
analysis provided by computer-based
information systems.

Fundamental Role of IS

Support of Strategies for Competitive

Advantage.
Gaining

a strategic advantage over competitors

requires the innovative application of information
technologies.
For example, store management might make a
decision to install touch-screen kiosks in all
stores, with links to the e-commerce Web site for
online shopping.
This offering might attract new customers and
build customer loyalty because of the ease of
shopping and buying merchandise provided by
such information systems.

Management Information Systems

The Role of Information Systems in Business Today

Growing

interdependence between ability to

use information technology and ability to
implement corporate strategies and achieve
corporate goals

Business

firms invest heavily in

information systems to achieve six
strategic business objectives:
1.
2.
3.
4.
5.
6.

Operational excellence
New products, services, and business models
Customer and supplier intimacy
Improved decision making
Competitive advantage
Survival

Management Information Systems

The Role of Information Systems in Business Today

Operational
Improvement

excellence:

of efficiency to
attain higher profitability
Information systems, technology an
important tool in achieving
greater efficiency and
productivity
Walmarts RetailLink system links
suppliers to stores for superior
replenishment system

Management Information Systems

The Role of Information Systems in Business Today

New

products, services, and

business models:
Business

model: describes how company

produces, delivers, and sells product
or service to create wealth
Information systems and technology a
major enabling tool for new products,
services, business models
Examples: Apples iPod, iTunes,
iPhone, iPad, Googles Android OS,
and Netflix

Management Information Systems

The Role of Information Systems in Business Today

Customer
Serving

and supplier intimacy:

customers well leads to customers

returning, which raises revenues and profits
Example: High-end hotels that use
computers to track customer preferences
and use to monitor and customize
environment
Intimacy with suppliers allows them to
provide vital inputs, which lowers costs
Example: J.C.Penneys information system
which links sales records to contract
manufacturer

Management Information Systems

The Role of Information Systems in Business Today
Improved

decision making

Without

accurate information:

Managers
Leads

must use forecasts, best guesses, luck

to:

Overproduction,
Misallocation
Poor

Poor

underproduction of goods and services

of resources

response times

outcomes raise costs, lose customers

Example:

Verizons Web-based digital

dashboard to provide managers with real-time
data on customer complaints, network
performance, line outages, etc.

Management Information Systems

The Role of Information Systems in Business Today

Operational

excellence:

Improvement

of efficiency to attain higher

profitability

New

products, services, and business models:

Enabled

Customer

by technology

and supplier intimacy:

Serving

customers raises revenues and profits

Better communication with suppliers lowers
costs
Improved
More

decision making

accurate data leads to better decisions

Management Information Systems

The Role of Information Systems in Business Today

Competitive
Delivering
Charging

products

advantage

better performance

less for superior

Responding

to customers and
suppliers in real time

Examples:

Apple, Walmart, UPS

Management Information Systems

The Role of Information Systems in Business Today

Survival
Information

technologies as
necessity of business
May be:
Industry-level changes, e.g.
Citibanks introduction of ATMs
Governmental regulations
requiring record-keeping
Examples:

Any new Act