MANAGEMENT

INFORMATION
SYSTEM
 Chapter 1

Information Systems
in Global Business
Today
 Management Information System
• Management in MIS means the ultimate user, the decision
maker

• Information
• Information, in MIS, means the processed data that helps the
management in planning, controlling and operations.
• Data (unprocessed facts and figures)

• 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.
• Information system:
• A system which gathers data and disseminate information

• purpose of providing information to its users.

• Management Information System

• 'MIS' is a planned system of collecting, storing, processing and
disseminating data in the form of information needed to carry
out the functions of management.
 Uses of info by businesses

• Planning
– At the planning stage, info is the most important ingredient in decision
making.

– Information at planning stage includes that of business resources,

assets, liabilities, plants and machineries, properties, suppliers,
customers, competitors, etc.

• Recording
– Business processing involves recording information about each
transaction or event.

– This information is collected, stored, and updated regularly at the

operational level.

• .
• Controlling
– A business need to set up an information filter, so that only filtered
data is presented to the middle and top management.

– This ensures efficiency at the operational level and effectiveness at the

tactical and strategic level

• Measuring
– A business measures its performance metrics by collecting and
analysing sales data, cost of manufacturing, and profit earned.

• Decision-making
– And finally all the information stored in MIS helps in decision making.
 Objectives of MIS

•Capturing data from various internal and external sources of org.

•Processing data by making calculations with the data, sorting, classifying,

summarizing data

•Information storage ---for future use

•Information retrieval ----as and when required

•Information Propagation ----to the users using original network

Functions of an Information System
 What's new in MIS

•Continual change in technology makes MIS exciting

•3 interconnected changes are occurring in the area of

technology

1.The emerging mobile digital platform

– iPhones, iPads, BlackBerrys, Web-surfing Netbooks

2.The growth of online software as a service

– Major business applications are now delivered online as an
Internet service rather than as boxed software or custom
systems.
3. Cloud computing
– Storing and accessing data and programs over the Internet instead of
your computer's hard drive.
– E.g Google and Amazon are offering.
– Apple

– Cloud for storing purpose e.g Google Drive, Google Docs, Gmail or
Dropbox

– Cloud for architecture e.g. need of any hardware

– Cloud for software iPhone, iPad applications used in Businesses such as:
– Salesforce.com, FedEx Mobile, iTimesheet, Quickoffice connect, etc
Public cloud
•Public clouds deliver resources, such as compute, storage, network, develop-and-
deploy environments, and applications over the internet. They are owned and run by
third-party cloud service providers
•e.g Google Cloud.

Private cloud
•Private clouds are built, run, and used by a single organization, typically located on-
premises. They provide greater control, customization, and data security but come
with similar costs and resource limitations associated with traditional IT
environments.
•e.g Avicenna in UOW

Hybrid cloud
•Environments that mix at least one private computing environment (traditional IT
infrastructure or private cloud, including edge) with one or more public clouds are
called hybrid clouds. They allow you to leverage the resources and services from
different computing environments and choose which is the most optimal for the
workloads.
Whats new in MIS
 E- commerce
E-commerce:
Electronic commerce (e-commerce) refers to companies and individuals that
buy and sell goods and services over the internet. E-commerce operates in
different types of market segments and can be conducted over computers,
tablets, smartphones, and other smart devices
Advantage:
•So E-commerce is continuously on the rise providing a social network based
E-commerce such as Facebook, Youtube, twitter, etc.
•E-commerce is changing how firms design, produce and deliver their
products and services.
Disadvantage:
•E-commerce has reinvented itself again, disrupting the traditional marketing
and advertising industry and putting major media and content firms in
jeopardy
• Likewise, the management of business firms has changed:

• remote salespeople on the road are only seconds away from their
managers‘ questions and oversight.

• Managers on the move are in direct, continuous contact with their

employees.

• The growth of enterprise-wide information systems, managers have

instant access to the information they need for accurate and timely
decisions.
Advantage:
So all these enable business to produce new products and services, develop
new business models, and transformed the day-to-day conduct of business.

Disadvantage:
•Some old businesses, even entire industries, are being destroyed while new
businesses are springing up.

•E.g. emergence of online music stores…no more local music stores, CDS etc
 The emerging digital firm
• A digital firm is one in which nearly all of the organization’s
significant business relationships with customers, suppliers,
and employees are digitally enabled and mediated.

• Core business processes are accomplished through digital

networks spanning the entire organization or linking multiple
organizations.
• Digital firms sense and respond to their environments far more
rapidly than traditional firms, giving them more flexibility to
survive in turbulent times.

• Digital firms offer extraordinary opportunities for more flexible

global organization and management.

• In digital firms, both time shifting and space shifting are the
norm.
• Time shifting refers to business being conducted continuously,
24/7, rather than in narrow “work day” time bands of 9 a.m. to 5
p.m.
• Space shifting means that work takes place in a global
workshop, as well as within national boundaries
 STRATEGIC BUSINESS OBJECTIVES OF INFORMATION
SYSTEMS

• Business firms invest heavily in information systems to achieve

six strategic business objectives:

– Operational excellence

– New products, services, and business models

– Customer and supplier intimacy

– Improved decision making

– Competitive advantage

– Survival
• Operational excellence:

– Improvement of efficiency of operation to attain higher

profitability

• E.g. In 2010, Walmart achieved $408 billion in sales because of its

Retail Link system, which digitally links its suppliers to every one of
Walmart’s stores.

• As soon as a customer purchases an item, the supplier monitoring

the item knows to ship a replacement to the shelf.
• New Products, Services, and Business Models

• Information systems and technologies are a major enabling tool for firms
to create new products and services, as well as entirely new business
models.

– A business model describes how a company produces, delivers, and

sells a product or service to create wealth.

– Apple Inc. transformed an old business model of music distribution

based on tapes, and CDs into an online (iTunes), music store.
• Customer and supplier intimacy:

– Serving customers well leads to customers returning, which raises

revenues and profits

• E.g. luxury hotels that use computers to track customer preferences

(TV shows, Music, Lighting, Temp) and use to monitor and
customize environment

• Intimacy with suppliers allows them to provide vital inputs, which lowers
costs

• E.g. J.C.Penney’s (chain of departmental stores) information system

which links sales records to contract manufacturer
• ---shelf space, Zero inventory
• Improved decision-making
– Most of the time managers use forecasts
• Leads to:
– Overproduction, underproduction of goods and services
– Misallocation of resources
– Poor response times
• Poor outcomes raise costs, lose customers
– Therefore, IS provide real-time data for making decisions

– E.g. Verizon corporation’s(US telecommunication company) Web-

based digital dashboard to provide managers with real-time data
on customer complaints, network performance, line outages or
storm-damaged lines etc.

– So managers can immediately allocate repair resources to

affected areas, inform consumers of repair efforts, and restore
service fast.
– E.g nayatel inform customers before maintenance work.
• Competitive advantage

– When firms achieve one or more of these business objectives—

operational excellence; new products, services, and business models;
customer/supplier intimacy; and improved decision making—chances
are they have already achieved a competitive advantage.

– This all add up to higher sales and higher profits that your
competitors cannot match.

– For Example: Apple Inc. and Walmart are industry leaders because
they know how to use information systems for this purpose.
• Survival

– Information technologies are necessity of doing

business

– Some time these necessities are driven by Industry-

level changes, e.g. introduction of ATMs

– Governmental regulations requiring record-keeping

• Business perspective on IS

• Information technology (IT) consists of all the hardware and software that a
firm needs to use in order to achieve its business objectives.

• Information System is an instrument for creating value for firms

–Investments in IS result in superior returns:

• Increases productivity and revenue, decrease costs, improves execution of
business process.

–IS provides information that helps managers making better decisions and
improve the execution of business process
 Perspectives on Information Systems
• Investing only in information technology does not guarantee good
returns
 Out-dated technology uses

Factors:
• Adopting right business model according (suite) to new technology.

– E.g recording label companies refused to change their old

business model, which was based on physical music stores for
distribution , as a result music industry is dominated by
technology company Apple Inc.

• complementary investments (business processes, models,

management behavior and culture)
 Perspectives on Information Systems

• Complementary assets:
– Assets required to derive value from a primary investment
– Firms supporting their technology investments with
investment in complementary assets receive superior
returns
– E.g: invest in technology and the people to make it work
properly, train people.
• E.g. To realize value from automobiles requires substantial
complementary investments in highways, roads, gas stations,
repair facilities, and a legal regulatory structure to set
standards and control drivers.
 DIMENSIONS OF INFORMATION SYSTEMS

organizational dimensions of systems

• Information systems automate many business processes.

• For instance, how a customer receives credit or how a

customer is billed is often determined by an information
system that incorporates a set of formal business processes.

• Parts of an organization’s culture can always be found

embedded in its information systems.

• For instance, TCS concern with placing service to the

customer first is an aspect of its organizational culture that
can be found in the company’s package tracking systems.
 Management dimension of IS
• managers must do more than manage what already exists.

• A substantial part of management responsibility is creative

work driven by new knowledge and information.

• Information technology can play a powerful role in helping

managers design and deliver new products and services.

• redirecting and redesigning their organizations

Thank You!