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

Mangement Information Systems 3713 The integration of economies throughout the world. Technological Change: the development of low-cost computing platforms and communication technologies. To gain access to world-class capabilities 4. global finance and labour outsourcing. enabled by innovation and technological progress. 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. and the enforcement of global patent and copyright laws that allow for further innovation. either onshore (DOMESTICALLY) and offshore (INTERNATIONALLY). 2. 3. To reduce of control cost 2. DATA: THE ROOT AND PURPOSE OF INFORMATION SYSTEMS 2 . the frequency of international travels. manufacturing. To free up internal resources 3. To reduce time to market 6. or security to another company. Economic Change: increase in international trade. tourism and immigration and the availability of ethnic foods and restaurants. What are the key driving Impacts of Globalization? 1. WHAT LED TO THE RISE OF OUTSOURCING What is outsourcing? Outsourcing is the moving of business processed or tasks such as accounting. Cultural Change: increases in the availability of multiculturalism through television and movies. Why are companies choosing to outsource business activities? 1. 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. the increasing availability of low-cost communication platforms such as skype and Facebook and the low-cost global telecommunications infrastructure like the internet. To increase process efficiencies 7. To be able to focus on core activities 8.

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

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. What is strategic advantage? 4 . 2. Office Automation Systems: Support a wide range of predefined day-today work activities of individual and small groups. Few or no procedures to follow for a given situation can be specified in advance.Solutions and problems are not clear-cut and often require judgement and expertise.Mangement Information Systems 3713 5. TYPE OF DECISION: UNSTRUCTURES DECISIONS. 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. 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. 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. and to improve the efficiency of business processes at the customer interface. 3.Problems are relatively complex and non-routine. Management makes TYPE OF DECISION: STRUCTURED DECISIONS. but not to the extent where a specific recommendation can be made. TYPE OF DECISION: SEMISTRUCTURED DECISIONS. Collaboration Systems: Enables people to communicate. What are the various levels of organizational decision making? 1. collaborate. Some procedures to follow for given situation can be specified in advance. and coordinate with one another.procedures to follow for a given situation can be specified in advance. 6.

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

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

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

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

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. 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. leading to organizations to have very few or too many idles resources most of the time. Demand Fluctuations: Demand for computing resources are always fluctuating. software and network to communicate information.That facilitates the transmission of web pages and other information. 4.Mangement Information Systems 3713 World Wide Web Architecture: The web consists of a large number of interconnected web servers. they consume electricity. 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. What are Data Centers? Data centers are a host for thousands of servers. 3. Increasing Energy Needs: The worldwide increase in demand is a concern for various organizations as as computers process data. which host the sites users access with their web browsers. convenient. generate heat and cool (which requires a lot of energy) which leads to EXPENSIVE ENERGY COST/ MONTHLY ELECTRICITY BILLS. 2. on-demand network access to a shared pool of configurable computing resources 9 . EXTRANETS Intranets look like and act as a public website and uses the same hardware. INTRANETS VS. This is done through the use of a TRANSMISSION CONTROL PROTOCOL/ INTERNET PROTOCOL. CLOUD COMPUTING Cloud computing is model for enabling ubiquitous. ISSUES ASSOCIATED WITH MANAGING THIS IS INFRASTRUCTURE 1. Rapid Obsolescence and Shorter IT Cycles: As the producers of hardware and software continue to be innovative and modern.

Resource Pooling: The cloud provides users with tools to manage multiple resources that are dynamically assigned to multiple customers based on their needs. WRITE THEN STORE IN CLOUD. Broad Network Access: As cloud services are accessed through the internet. 3. they are accessible from almost anywhere and from almost any web-enabled device. CONTROL LEVEL: LOW What are the three types of clouds? 10 . Measured Service: Customers pay only for what they use. storage and network are provided. 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. human interaction with the provider is not required. CONTROL LEVEL: MODERATE Software as a Service (SaaS): Customers uses only application provided via a cloud infrastructure. storage. CONTROL LEVEL: MOST CONTROL Platform as a Service (PaaS): Customers can run their own applications. Allows users to use existing online services. FIVE CHARACTERISTICS OF CLOUD COMPUTING 1. 5. Users have to provide their own software. Allows users to create their own online services once provided with service provider tools. Rapid Elasticity: In a cloud environment. applications. computing resources can be scaled up or down almost instantaneously and often automatically. which are typically designed using tools provided by the service provider. servers. PROVIDE OWN SOFTWARE. And the metering depends on type of resources. On many occasions. Infrastructure as a Service (IaaS): Basic capabilities of processing. and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. 4. 2.Mangement Information Systems 3713 (networks.

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

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