201 ‫نما‬

Management Information Systems

Dr. Yasser Sabry

Room: 2144 – Languages and Translation Building
Email: ysabri@ksu.edu.sa

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 201 ‫ن ما‬
Management Information Systems

• Module Description
– Basic concept of MISs – MISs and operation – strategy and
IS – IS in solving management problems
– IT: machines – programs – communications- databases and
file processing – organization of systems automation
(offices automation).

• Module Aims
– To use of IT in solving administrative problems and the
development of the ability of students to apply theories in
practice.

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 201 ‫ن ما‬
Management Information Systems

• Main References
– Essentials of Management
Information Systems, 8/E. Jane
Laudon and Kenneth Laudon.
– Lecture notes: Adopted from the
book slides.

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 Chapter 1

Business
Information Systems
in Your Career

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 Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career

STUDENT LEARNING OBJECTIVES

• What exactly is an information system? What are

its people, organization, and technology
components? How does it work?

• How are information systems transforming

business and what is their relationship to
globalization?

• Why are information systems so essential for

running and managing a business today?

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 Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career

STUDENT LEARNING OBJECTIVES (Continued)

• How will a four-step method for business

problem solving help you solve information
system-related problems?

• How will information systems affect business

careers and what information systems skills and
knowledge are essential?

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 Ch 1: Outline

• What Is an Information System?

• Functions of an Information System
• Dimensions of Information Systems
• How Information Systems Are Transforming Business
• Globalization Challenges and Opportunities
• The Role of Information Systems in Business Today
• The Problem-Solving Approach
• The Role of Critical Thinking in Problem Solving
• How Information Systems Will Affect Business
Careers

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 What Is an Information System?

• Information technology: The hardware and software

a business uses to achieve objectives

• Information system: Interrelated components that

manage information to:
• Support decision making and control
• Help with analysis, visualization, and product creation

• Data: Streams of raw facts

• Information: Data shaped into meaningful, useful form

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 Data and Information

Raw data from a supermarket checkout counter can be processed

and organized to produce meaningful information, such as the
total unit sales or the total sales revenue for a specific store.

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 What Is an Information System?

• Activities in an information system that produce

information are:
• Input
• Processing
• Output
• Feedback

• Sharp distinction between computer and computer

program vs. information system
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 Functions of an Information System

• An information system contains information about an organization and

its surrounding environment.

• Three basic activities—input, processing, and output— produce the

information organizations need.

• Feedback is output returned to appropriate people or activities in the

organization to evaluate and refine the input. This is the most important
process for information systems.

• Environmental actors, such as customers, suppliers, competitors,

stockholders, and regulatory agencies, interact with the organization
and its information systems.

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 Functions of an Information System

• Unfortunately, the hardware (input and output) and the software

(processing) receive the most attention. With those two alone, you have
computer literacy. But if you don’t use the "persware" side of the
triangle to complete the feedback loop, you don’t accomplish much.

• Add the “persware” angle with good feedback and you have the
beginnings of information literacy. You also create formal systems
structured to collect, store, process, disseminate, and use data in well-
designed and well-built information systems.

• So, computer literacy focuses mostly on knowledge of IT

• Information systems literacy includes behavioral and technical approach

• Management information systems (MIS) focuses on information systems

literacy and issues surrounding development, use, impact of information
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 Dimensions of Information Systems

• Three dimensions of information

systems
1. Organizations
2. People
3. Technology

Using information systems effectively requires an

understanding of the organization, people, and
information technology shaping the systems.
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 Dimensions of Information Systems

1. Organizations
• Coordinate work through structured hierarchy and
business processes
• Business processes: Related tasks and behaviors for
accomplishing work
• E.g. Fulfilling an order
• May be informal or include formal rules
• Culture embedded in information systems
• E.g. UPS’s (for shipping) concern with placing service to
customer first

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 Dimensions of Information Systems

• 2. People
• Information systems require skilled people to build,
maintain, and use them
• Employee attitudes affect ability to use systems
productively
• Role of managers
• Perceive business challenges
• Set organizational strategy
• Allocate human and financial resources
• Creative work: New products, services

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 Dimensions of Information Systems

• 3. Technology
• IT Infrastructure: Foundation or platform that
information systems built on
• Computer hardware
• Computer software
• Data management technology
• Networking and telecommunications technology
• Internet and Web, extranets, intranets
• Voice, video communications

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 • Synergy Sports Technology’s tools help collect,
organize, and distribute video of NBA games.

• Demonstrates IT’s role in reducing cost,

organizing data, and increasing efficiency.

• Illustrates the emerging digital firm landscape

where businesses can use tools to analyze critical
data.

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 Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career

NBA Teams Make a Slam Dunk with Information Technology

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 How Information Systems Are Transforming
Business

• In 2007, more wireless phone accounts were opened

than telephone land lines installed
• More than 95 million people receive their news online;
55 million Americans read blogs
• Assignment: Define blogs (weblogs) and discuss
how it could be used in business.

• Internet advertising continues to grow at more than

15% per year
• Changes in business result in changes in jobs and
careers

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 Globalization Challenges and Opportunities:
A Flattened World

• Internet and global communications has greatly

reduced economic and cultural advantages of
developed countries
• Drastic reduction of costs of operating and transacting on
global scale
• Competition for jobs, markets, resources, ideas
• Requires new understandings of skills, markets,
opportunities

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 The Role of Information Systems in Business Today

• Businesses invest in IT to achieve six important

business objectives
1. Operational excellence
2. New products, services, and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Survival

• When firms cannot achieve business objectives,

Information systems often present solutions
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 The Role of Information Systems in Business Today

1. Operational Excellence:
• Improved efficiency results in higher profits
• Information systems and technologies help
improve efficiency and productivity
– E.g. Wal-Mart:
• Most efficient store in world as result of digital links
between suppliers and stores
• Power of combining information systems and best
business practices to achieve operational efficiency—
and $348 billion in sales in 2007

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1.25
 The Role of Information Systems in Business Today

2. New products, services, and business models:

• Information systems and technologies enable firms

to create new products, services, and business
models
• Business model: How a company produces,
delivers, and sells its products and services
• E.g. Audio industry
• Drastic changes in business models in recent years
• Apple: Successful innovations – iPod, etc.

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 The Role of Information Systems in Business Today

2. New products, services, and business models:

With its stunning multitouch

display, full Internet browsing,
digital camera, and portable
audio player, Apple’s iPhone set
a new standard for mobile
phones. Other Apple products
have transformed the audio and
entertainment industries.

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 The Role of Information Systems in Business Today

3. Customer and supplier intimacy:

• Customers who are served well become repeat
customers who purchase more
• Mandarin Oriental hotel
• Uses IT to foster an intimate relationship with its
customers, keeping track of preferences, etc.
• Close relationships with suppliers result in lower
costs
• JCPenney
• IT to enhance relationship with supplier
in Hong Kong

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 The Role of Information Systems in Business Today

4. Improved decision making:

• A company’s bottom line (net profit) can be hurt by
managers being swamped with data that is not timely
or helpful, forcing them to use guesswork
• Real-time data improves ability of managers to make
decisions
• Verizon: Web-based digital dashboard to update
managers with real-time data on customer complaints,
network performance, and line outages

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 Information
Builders’ digital
dashboard
delivers
comprehensive
and accurate
information for
decision making.
The graphical
overview of key
performance
indicators helps
managers
quickly spot
areas that need
attention.

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 The Role of Information Systems in Business Today

5. Competitive advantage:
• Often results from achieving previous business
objectives
• Advantages over competitors:
• Charging less for superior products, better
performance, and better response to suppliers and
customers
• Toyota: Uses TPS (Toyota Production System) to
achieve high levels of efficiency and quality

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 The Role of Information Systems in Business Today

In a Toyota factory,
the assembly line
produces a superior
product in less time,
using less inventory,
and having fewer
defects than the
competition. Toyota
uses information
systems to monitor
inventory levels and
manage production
scheduling.

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 The Role of Information Systems in Business Today

6. Survival:

• Businesses may need to invest in information

systems out of necessity
• Keeping up with competitors
• Citibank’s introduction of ATMs
• Federal and state regulations and reporting
requirements
• Toxic Substances Control Act

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 The Problem-Solving Approach

• Few business problems are simple or straightforward

• Most business problems involve a number of major

factors that can fall into three main categories:

• Organization

• Technology

• People

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 A Model of the Problem-Solving Process

• Typical organizational problems

• Outdated business processes
• Unsupportive culture and attitudes
• Political in-fighting
• Turbulent business environment, change
• Complexity of task
• Inadequate resources

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 A Model of the Problem-Solving Process

• Typical technology problems

• Insufficient or aging hardware
• Outdated software
• Inadequate database capacity
• Insufficient telecommunications capacity
• Incompatibility of old systems with new technology
• Rapid technological change

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 A Model of the Problem-Solving Process

• Typical people problems

• Lack of employee training
• Difficulties of evaluating performance
• Legal and regulatory compliance
• Work environment, ergonomics (human engineering )
• Poor or indecisive management
• Lack of employee support and participation

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 A Model of the Problem-Solving Process

• Problem solving: 4-step process

1. Problem identification

2. Solution design

3. Choice

4. Implementation

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 A Model of the Problem-Solving Process

1. Problem identification includes:

• Agreement that problem exists
• Definition of problem
• Causes of problem
• What can be done given resources of firm

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 A Model of the Problem-Solving Process

2. Solution design
• Often many possible solutions
• Consider as many as possible to understand range
of solutions

3. Choice: Factors include:

• Cost
• Feasibility given resources and skills
• Length of time needed to implement solution

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 A Model of the Problem-Solving Process

4. Implementation
• Building or purchasing solution
• Testing solution, employee training
• Change management
• Measurement of outcomes
• Feedback, evaluation of solution

• Problem solving is a continuous process, not a

single event
• Sometimes chosen solution doesn’t work or needs adjustment

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 Problem Solving Is a Continuous Four-Step
Process
During implementation
and thereafter, the
outcome must be
continually measured
and the information
about how well the
solution is working is
fed back to the problem
solvers.
In this way, the
identification of the
problem can change
over time, solutions can
be changed, and new
choices made, all based
on experience.

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 The Role of Critical Thinking in Problem Solving

• Without critical thinking, easy to jump to conclusions,

misjudge a problem and waste resources

• Four elements of critical thinking:

1. Maintaining doubt and suspending judgment

2. Being aware of different perspectives

• Including technology, organization, and people perspectives

3. Testing alternatives and letting experience guide

4. Being aware of organizational and personal limitations

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 How Information Systems Will Affect Business
Careers

• Accounting:
• Accountants increasingly rely on information systems to
summarize transactions, create financial records, organize data,
and perform financial analysis

• Skills:

• IT, software used in auditing, accounting functions

• System and network security issues

• Enterprise systems for financial reporting

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 How Information Systems Will Affect Business
Careers

• Finance:
• Relationship between information systems and financial
management and services is so strong that many advise
finance majors to have minor in information systems

• Skills:

• IT, software used by financial managers and financial

service firms

• New technologies for financial transactions, trading

• Enterprise systems for financial reporting

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 How Information Systems Will Affect Business
Careers

• Marketing:
• No field has undergone more technology-driven change in
the past five years than marketing and advertising

• Skills:

• Internet, marketing database systems and impact on

marketing activities

• Enterprise systems for product management, customer

relationship management

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 How Information Systems Will Affect Business
Careers

• Operations management in services and

manufacturing:
• Industrial production managers, administrative service managers,
and operations analysts
• Skills:
• Hardware and software platforms for operations management
• How enterprise systems for production management, supplier
management, sales force management, customer relationship
management are used to achieve efficient operations and meet
other goals

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 How Information Systems Will Affect Business
Careers

• Management:
• The job of management has been transformed by
information systems
• Skills:
• Hardware and software to improve management,
enhance leadership and coordination, improve
achievement of overall corporate objectives
• How enterprise systems are used to achieve efficient
operations and help make better decisions for improving
firm performance

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 How Information Systems Will Affect Business
Careers

• Information systems:
• Fast changing and dynamic profession because information
technologies are among most important tools for achieving
business firms’ key objectives
• Domestic and offshore outsourcing
• Skills:
• Uses of new and emerging hardware and software to
achieve six business objectives
• An ability to take a leadership role in the design and
implementation of new information systems

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 Some Final Remarks

• Success in today’s job market requires a broad set of

skills

• Job candidates must have problem-solving skills as

well as technical skills so that they can carry specific
tasks

• The service sector will account for 95 % of the new

jobs that are created or open up by 2012

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 Congratulations!
End Of Chapter 1

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