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. 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. 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. tourism and immigration and the availability of ethnic foods and restaurants. manufacturing. Economic Change: increase in international trade. WHAT LED TO THE RISE OF OUTSOURCING What is outsourcing? Outsourcing is the moving of business processed or tasks such as accounting. To be able to focus on core activities 8. 2.Mangement Information Systems 3713 The integration of economies throughout the world. Cultural Change: increases in the availability of multiculturalism through television and movies. DATA: THE ROOT AND PURPOSE OF INFORMATION SYSTEMS 2 . or security to another company. Technological Change: the development of low-cost computing platforms and communication technologies. and the enforcement of global patent and copyright laws that allow for further innovation. To increase the revenue potential of the organization 5. global finance and labour outsourcing. Why are companies choosing to outsource business activities? 1. the frequency of international travels. 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. To gain access to world-class capabilities 4. 3. To increase process efficiencies 7. To free up internal resources 3. What are the key driving Impacts of Globalization? 1. To reduce time to market 6. enabled by innovation and technological progress.

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

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

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

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

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

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

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

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

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

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