Mangement Information Systems 3713

Chapter 1: MANAGING IN THE DIGITAL WORLD
What is a system?
A system is a group of components that interact to achieve some kind of
purpose.
What is an Information System?
An Information System is a group of components that interact to produce
information such as- Hardware, Software (Intangible), Telecommunications,
Databases, People (THE MOST IMPORTANT RESOURCE), and Procedures.
What is Information technology?
The hardware, software, and networking components of an information
system.
What is Management Information Systems?
MIS is the development and use of information systems that help businesses
achieve their goals and objectives.
What were the five IT Megatrends in the Information Age?
1. Mobile: The embodiment of the Post-PC era. Persons are able to
connect and interact with one another without the use of a PC or
laptop anymore.
2. Social Media: Web-based applications embodying core values such as
collaboration and social sharing, allowing people to communicate,
interact, and collaborate in various ways.
3. Internet of Things: A broad range of physical objects such as computer,
sensors or monitors that are interconnected and automatically share
data over the internet.
4. Cloud Computing: Web technologies enable using the Internet as a
platform for applications and data. Most of the functionality previously
offered by application installed on an individual computer is now
offered by application “in the cloud” that are accessed via your web
browser- these can be accessed anywhere and at anytime.
5. Big Data: Extremely large and complex databases, typically
characterized as being of high volume, variety and velocity.
What is Globalization?

1

To reduce of control cost 2. 2. and the enforcement of global patent and copyright laws that allow for further innovation. Why are companies choosing to outsource business activities? 1. 3. tourism and immigration and the availability of ethnic foods and restaurants. To increase process efficiencies 7. To compensate for a lack of specific capabilities or skills NB: COMPANIES ARE OFFSHORING PRODUCTION TO OVERSEAS COUNTRIES SUCH AS CHINA TO UTILIZE MORE TALENTED AND SKILLED WORKERS OR REDUCE COSTS. To increase the revenue potential of the organization 5. the frequency of international travels. To reduce time to market 6. WHAT LED TO THE RISE OF OUTSOURCING What is outsourcing? Outsourcing is the moving of business processed or tasks such as accounting. DATA: THE ROOT AND PURPOSE OF INFORMATION SYSTEMS 2 . To free up internal resources 3. What are the key driving Impacts of Globalization? 1. Economic Change: increase in international trade. To gain access to world-class capabilities 4. enabled by innovation and technological progress. manufacturing. Cultural Change: increases in the availability of multiculturalism through television and movies. To be able to focus on core activities 8. or security to another company.Mangement Information Systems 3713 The integration of economies throughout the world. The rise of outsourcing started when a decrease in communication costs came and companies realised that they can outsource business processes on a global scale. global finance and labour outsourcing. either onshore (DOMESTICALLY) and offshore (INTERNATIONALLY). the increasing availability of low-cost communication platforms such as skype and Facebook and the low-cost global telecommunications infrastructure like the internet. Technological Change: the development of low-cost computing platforms and communication technologies.

CREATE AND DISTRIBUTE USEFUL DATA. PROCESS DAY-TO-DAY BUSINESS EVENT DATA AT THE OPERATIONAL LEVEL OF THE ORGANIZATION. TO GAIN COMPETITIVE ADVANTAGE. System Integration: Connecting separate information systems and data to improve business processes and decision making. 1. knowledge must be involved. Telecommunications. 3 .TPS data is sorted into and organized to support a broad range of managerial decision making using a variety of systems. Management Information System: PRODUCES DETAILED INFORMATION TO HELP MANAGE A FIRM OR PART OF A FIRM. and Procedures. and are of little value until processed. INFORMATION: Data that have been formatted and/ or organized in some way as to be useful to people 3. 4. 2. TO REACH MORE CUSTOMERS. ORGANIZATIONS: THE CONTEXT OF INFORMATION SYSTEMS ORAGANIZATIONS USE INFORMATION SYSTEMS TO BECOME MORE PRODUCTIVE AND PROFITABLE. OR TO IMPROVE CUSTOMER SERVICE.Mangement Information Systems 3713 INFORMATION SYSTEMS USE INFORMATION TECHNOLOGY TO COLLECT.Hardware. DATA: Raw symbol. Knowledge is a body of governing procedures such as guidelines or rules that are used to organize or manipulate data to make the data suitable for a given task. Internetworking: Connecting host computers and their networks together to form even larger networks like the internet. such as words and numbers. KNOWLEDGE: In order to actually use information. 3. People (THE MOST IMPORTANT RESOURCE). Software (Intangible). Transaction Processing Systems: Used by a broad range of organizations to not only more efficiently process customer transactions. 2. What are the different types of Information Systems? 1. What is an Information System? An Information System is a group of components that interact to produce information such as. that have no meaning in and of themselves. Databases. but also generate a tremendous amount of data that can be used by the organization to learn about customers or ever-changing product trends.

TYPE OF DECISION: SEMISTRUCTURED DECISIONS. and to improve the efficiency of business processes at the customer interface.Solutions and problems are not clear-cut and often require judgement and expertise. Operational Level (FORMEN & SUPERVISORS): Information systems at the operational level of an organization help to improve efficiency by automating routine and repetitive activities such as sales transaction processing.Mangement Information Systems 3713 5. Executive Level (EXECUTIVE LEVEL MANAGERS): Information Systems at the executive level of an organization help to improve strategy and planning by providing summaries of past data and projections of the future. 2. 6. What are the various levels of organizational decision making? 1.procedures to follow for a given situation can be specified in advance.Problems are relatively complex and non-routine. Collaboration Systems: Enables people to communicate. Some procedures to follow for given situation can be specified in advance. Managerial/ Tactical Level (MIDLEVEL AND FUNCTIONAL MANAGERS): Information systems at the managerial level of an organization help to improve effectiveness by automating the monitoring and controlling of operational activities. collaborate. Management makes TYPE OF DECISION: STRUCTURED DECISIONS. and coordinate with one another. 3. but not to the extent where a specific recommendation can be made. Few or no procedures to follow for a given situation can be specified in advance. What is strategic advantage? 4 . CHAPTER 2: GAINING COMPETITIVE ADVANTAGE THROUGH INFORMATION SYSTEMS What is a business process? A business process is set of related activities an organization performs in order to reach its business goals. Office Automation Systems: Support a wide range of predefined day-today work activities of individual and small groups. TYPE OF DECISION: UNSTRUCTURES DECISIONS.

reduced prices. (d)Bargaining power of buyers: Reduced prices. formula. Value: giving customer more value for their money. and demand for more services. Supplier  Firm of focus  Distributors  Retailer  End Customer (OUTBOUND) (OUTBOUND) (INBOUND LOGISTICS) (OUTBOUND LOGISTICS) 5 . (c) Threat of entrants: Increased capacity in the industry. need for increased quality. 2. decreased market share and losing customers for life. 8.Mangement Information Systems 3713 A lead a firm has over its competitors. product distribution and service. 4. (e) Threat of substitute products or services: Product returns from customers. or algorithm. First-mover advantage: Being the first to enter the market. 6. Brand: Having a well-known brand-name. 7. How do we identify where to compete? PORTER’S FIVE FORCE MODEL (a) Bargaining power of suppliers: Increased costs and reduced quality. (b)Rivalry among existing Firm-in its current state: Competition in Price. 3. PORTER’S VALUE CHAIN MODEL What is a value chain? A value chain is a network of primary and secondary support activities in an organization where value is added to a product or service. Proprietary: Having a proprietary manufacturing technology. What are the sources of Competitive Advantage? 1. Quality: Having the best-made product on the market. Service: Delivering superior customer service. and decreased market share. 5. Low-cost: Achieving lowers costs than rivals. Innovation: Having shorter lead times in developing and testing new products.

6 . and security. software. What are the components of Information System Infrastructure? 1. Communications and other services available to users of the network. resource utilization.Mangement Information Systems 3713 CHAPTER 3: MANAGING THE INFORMATION SYSTEMS INFRASTRUCTURE AND SERVICES What is the IS Infrastructure? The hardware. Mainframes are typically used for mission-critical applications.optimized for high availability.typically not used by business organizations but are used to solve scientific problems. Hardware: The computers that run applications and databases necessary for processing transaction or analyzing business data. What supports business processes? Application software helps to automate business processes. data. (b)Mainframe: Computers that a primarily used as the main. are vital to an organization’s operations and often are vital to competition advantage and success. Types of Hardware: (a) Supercomputer: Most expensive and most powerful kind of computer. and competitive strategy. human resources. and enabled processes that would otherwise not even be possible. facilities. Example: Transaction processing. network. central computing system for major corporations. Databases are a collection of relates data organized in a way that facilitates data searches. (c) Server: Any computer on a network that makes access to files. printing. and services used by organizations to supports their decision making business processes.

2. such as 7 . What are the common operating system functions? Getting input from a keyboard or mouse. This is done by producing a message which is encoded so that it can be transmitted via a communication channel. TRANSMISSION MEDIA This is the physical pathway including cables and wireless that is used to carry network information. clients and peers: A server is any computer on the network that makes access to files.Mangement Information Systems 3713 (d)Workstations: Designed for medical. large memory and video cards. communication and other services available to users of the networks. NETWORKING What is computer networking? Computer networking is the sharing of data or services. architectural. (e) Personal Computers (PC): Used for personal computing and small business computing. PROTOCOLS Protocols define the procedures that different computers follow when they transmit and receive data. engineering. A client is any computer such as a user’s PC or laptop on the network or any software application. and presenting the information to you via a monitor. and typically have fast processors. Servers. (b)Device Drivers: Allow the computer to communicate with various different hardware devices. printing. peripherals (printers). System Software: This is a collection of programs that control the basic operations of computer hardware Types of System Software: (a) Operating System: An operating system (Windows/ OS X) coordinates the interaction between hardware components of a computer (CPU and the monitor). are optimized for visualization and rendering of 3D models. reading from and/ or writing to a storage device such as a hard disk drive. or animation and graphics design uses. application software (Microsoft Office) and users.

including text.USED TO CONNECT DEVICES 1. 5. Wide Area Network (city. Personal Area Network 2. Hypertext Markup Language (HTML): Standard method of specifying the structure and content within webpages. Hypertext: A webpage that contains not only information but also hyperlinks. Domain Name: term used to help people recognize the company or person that the domain name represents. Hypertext Transfer Protocol: Allows webservers to process user request for pages. Metropolitan Network (city) 5. 2.Mangement Information Systems 3713 Microsoft Outlook that uses the same services provided by the server. Wireless Local Area Networks (WLANS also known as Wi-Fi networksWireless Fidelity). CLIENTS ONLY REQUEST SERVICES. Uniform Resource Locator (URL): Is used to identify and locate a particular web page. THE INTERNET The internet is derived from the term internetworking which means connecting host computers and their networks together to form even larger networks. and multimedia content. or a graphical user interface to the internet the provides users with a consistent interface to access a wide variety of information. World Wide Web: A system of interlinked documents on the internet. Web Browser: A software application that can be used to locate and display web pages. country. globe) 4. 4. 8 . graphics. A peer is any computer that may both request and provide services TYPES OF NETWORKS. 3. 1. Local Area Network (limited area) 3. which are references or links to other documents. IP Addresses: Identify the various computers or devices on the internet.

leading to organizations to have very few or too many idles resources most of the time. convenient. a lot of businesses and organizations are finding it hard to keep-up and maintain ever-changing technology as they are continuously having to upgrade. ISSUES ASSOCIATED WITH MANAGING THIS IS INFRASTRUCTURE 1. Big Data and Rapidly Increasing Storage Needs: Organizations are faced with the amount of data available and the amount of data needed to stay ahead of its competitors. they consume electricity. INTRANETS VS. 3. Increasing Energy Needs: The worldwide increase in demand is a concern for various organizations as as computers process data. Rapid Obsolescence and Shorter IT Cycles: As the producers of hardware and software continue to be innovative and modern. This is done through the use of a TRANSMISSION CONTROL PROTOCOL/ INTERNET PROTOCOL. which host the sites users access with their web browsers. An extranet is not available to any public users but it allows for two or more firms to use the internet to do business together. 4. Demand Fluctuations: Demand for computing resources are always fluctuating. What are Data Centers? Data centers are a host for thousands of servers.Mangement Information Systems 3713 World Wide Web Architecture: The web consists of a large number of interconnected web servers. 2. EXTRANETS Intranets look like and act as a public website and uses the same hardware. on-demand network access to a shared pool of configurable computing resources 9 . CLOUD COMPUTING Cloud computing is model for enabling ubiquitous.That facilitates the transmission of web pages and other information. software and network to communicate information. generate heat and cool (which requires a lot of energy) which leads to EXPENSIVE ENERGY COST/ MONTHLY ELECTRICITY BILLS.

Resource Pooling: The cloud provides users with tools to manage multiple resources that are dynamically assigned to multiple customers based on their needs. Rapid Elasticity: In a cloud environment. which are typically designed using tools provided by the service provider. 5. CONTROL LEVEL: MOST CONTROL Platform as a Service (PaaS): Customers can run their own applications. CONTROL LEVEL: MODERATE Software as a Service (SaaS): Customers uses only application provided via a cloud infrastructure. CONTROL LEVEL: LOW What are the three types of clouds? 10 . Infrastructure as a Service (IaaS): Basic capabilities of processing. On-demand Self-service: allows for most flexibility as users can access cloud resources on an as-needed basis without the need for lengthy negotiations with the service provider. and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. Allows users to create their own online services once provided with service provider tools. On many occasions. WRITE THEN STORE IN CLOUD. Measured Service: Customers pay only for what they use. they are accessible from almost anywhere and from almost any web-enabled device. Broad Network Access: As cloud services are accessed through the internet. 4. PROVIDE OWN SOFTWARE. Users have to provide their own software. storage. computing resources can be scaled up or down almost instantaneously and often automatically. 3. FIVE CHARACTERISTICS OF CLOUD COMPUTING 1. storage and network are provided.Mangement Information Systems 3713 (networks. applications. 2. servers. human interaction with the provider is not required. And the metering depends on type of resources. Allows users to use existing online services.

3. 11 . Public Cloud: Services in a public cloud can be used by any interested party on a pay-per-use basis. Public clouds are used for applications that need rapid scalability. 2.the ability to adapt to an increase or decrease in demand for processing data storage.Mangement Information Systems 3713 1. Hybrid Cloud: A computing environment that uses a mixture of both private cloud and public cloud services. with collaboration between the two platforms. COMPANY RENTS CLOUD FROM OTHER COMPANY. COMPANY OWNS CLOUD. Private cloud/ Internal Cloud: Internal to an organization and can help organization to balance demand and supply of computing resources within the organization.

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