Management Information Systems

1. Management Information Systems Islamia University of Bahawalpur Delivered by: Tasawar Javed

2. Management Information Systems • History of Information Systems • It includes: • How H/W has evolved and how it has been applied over time • First general purpose Digital Computer was installed in a business organization • Great increase in speed • Dramatic reduction in Size • Evolved from relatively straightforward accounting process to system Designed to support Managers and other problem solvers

3. Management Information Systems • Why Information Systems? • It includes: • The competitive business environment Three powerful changes have altered the environment of business. 1st: The Emergence & Strengthening of the global economy 2nd: Transformation of industrial economies and societies into knowledge and in-formation based service economies 3rd: Transformation of the business enterprise

4. Why Information Systems • First Change: The Emergence & Strengthening of the global economy • Growing % of economy in the world depends on import and exports. Foreign trade plays a vital role in the economy of the country. • Globalization: • Management & control in a global marketplace • Competition in world markets • Global work groups • Global delivery systems

5. Why Information Systems • Second Change: Transformation of industrial Economies • Knowledge and information based economies • Productivity • New products and services • Leadership • Time based competition • Shorter product life cycle • Turbulent environment • Limited employee knowledge base

6. Why Information Systems • Third Change: Transformation of the enterprise • Flattening • Decentralization • Flexibility • Location independence • Low transaction and coordination costs • Empowerment • Collaborative work and teamwork

7. Why Information Systems • How IT can transform organizations Global Networks International division of labour: the operations of a firm are no longer determined by location, the global reach of firms is extended; costs of global coordination decline. Transaction costs decline Enterprise Networks collaborative work & teamwork, across divisional boundaries, business process changed Distributed computing empowerment: Management cost decline, individual have knowledge and information to act

8. Why Information Systems • How IT can transform organizations Portable Computing Virtual organizations: work is not tied to specific location, knowledge and info can be delivered to anywhere in minimum time, work becomes portable GUI Accessibility: everyone in organization can access the info, work flows can be automated, organizational cost decline as work flows move from paper to digital images, documents & Voice

9. Management Information Systems • Evolution in Computer H/W • ENIAC (Electronic Numerical Integrator & Calculator) • Developed in 1946 by John & Presper • UNIVAC (universal automatic computer) • Installed in 1951, in US census Bureau • GE; installed same machine 3 years later These early computer called ‘Mainframes’ IBM revolutionized the computer industry • Introduced IBM/system/360 line • More than one user appears to be working on the computer at same time; refers as ‘Multitasking’ • Old computer were much more slower than current computers

10. Management Information Systems • Moore’s Law • Processor speed has increased in number of years, after IBM introduced microcomputer • Gordon Moore gave Moore’s law; one of the founder of Intel, in 1960s • It stated “storage density of integrated circuits on a silicon chip doubled about every year” • After that pace slowed down and now it doubles every year and half (18 months) • If you purchase a computer 15 years from today, it would be 1024 times as powerful, yet cost the same as today’s model

11. The Evolution in Computer Applications • IS are virtual system that enable management to control the operations of the physical system of the firm • Physical System • Of the firms consists of tangible resources such as: materials, personnel, machines and money • Virtual System • Consist of the information resources that are used to represent the physical system; for example an inventory storeroom containing inventory items is a physical system and the computer based inventory master file is a virtual system that represents the physical system.

12. The Evolution in Computer Applications • Open system • That interacts with its environment by means of physical resources flows. An Information System is also an open system • Closed system • System that doesn’t communicate with its environment. Closed system would not interact with customers, managers, or anyone else

13. The Evolution in Computer Applications • Transaction Processing Systems • Management Information Systems • Virtual Office Systems • Decision Support Systems • Enterprise Resource Planning Systems

14. What is an IS? • IS; interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualisation in an organization • Information • Data • Feed back Process Data Information

15. Computer Based IS

16. Computer SW vs IS • Computers and software are technical foundation and tools to store and process information • similar to the material and tools used to build a house • Can’t produce required information to a particular organization

17. Dimensions of IS

18. Dimensions of IS • Organizational Dimensions • structure: different levels and specialties • hierarchy of authority, responsibility: Senior Middle Operational management, Knowledge service Data workers • business process: Organization coordinate its work through its hierarchy and business process • Culture : ways of doing things, part is embedded in IS. • Management Dimensions • Technological Dimensions

19. Dimensions of IS • Management Dimensions • Make decisions, formulate action plan and solve organizational problem • Managers set organizational strategy for responding to business challenges • In addition, managers must act creatively: • Creation of new products and services • Occasionally re-creating the organization • Technological Dimensions • Hardware: physical component ;Software: instruction control Hardware; Data management technology • Network and telecommunications technology • WWW: service to store retrieve information • IT infrastructure: platform that the firm can built on its IS

20. Business Perspective on IS • IS instrument for creating value to firms • Investments in IS result in superior returns: • Increases productivity and revenue • IS provides information that helps managers making better decisions and improve the execution of business process • Value of IS

21. There variation in Returns on Information Technology Investment • Investing in information technology does not guarantee good returns • Considerable variation in the returns firms receive from systems investments • Factors that case The variation in Returns: • Adopting right business model according (suite) to new technology • complementary investments (business processes, models, management behavior and culture)

22. Contemporary Approaches to IS

23. Key System Applications in the Organization • Operational level systems • Info that monitor the elementary activities & transactions of the organizations • Knowledge level systems • IS that support knowledge and data workers in an organizations • Management level systems • IS that support the monitoring, control, DM & Admin activities • Strategic level systems • IS that support the long range planning activities of senior management

24. The Challenge of Information System: Key Management Issues • The Strategic Business challenge • The Globalization challenge • The Information Architecture Challenge • The Information System Investment Challenge • The Responsibility and Control Challenge