ISM3003 CHAPTER 1 Management information systems MIS the planning for development management and use of information technology tools to help people perform all tasks related to information processing and management Focus How people can use technology to work with and massage information to help an organization achieve its goals Combination of organizational resources of people information and technology leads to Achieving competitive advantage Do things cheaper and faster Increase revenue Innovate new processes Digital Age Information Age MIS Resource 1 Information Data information and business intelligence build on each other Information is compiled of multiple relevant data points Business intelligence uses information to aid in decision making Data raw facts describing a particular phenomenon Examples current temperature price of movie your age Information data that has a particular meaning within a specific context Examples deciding what to wear based on temperature list of ages that a company can use to create an average Business Intelligence BI collective information about your customers competitors business partners your internal operations that gives you the ability to make effective important and often strategic decisions Example Coupons by gender use shows females use more so tailor to women Example Which sales plan has generated more revenue Defining Information Quality High quality information is pertinent relevant and useful to you 1 Timeliness 2 Location Is the info available when you need it a b Does it describe the time period periods you are considering a Able to access IT should make this aspect easy 3 Form a b c Garbage in garbage out GIGO If the info you have for decision making Is the info in a form that is most useful usable by you Is the information free of errors is in bad for you re likely to make a poor decision 4 Validity Is the information credible from a credible source a b Problem with Internet information gathering Considering Information from an Organizational Perspective Information flows in four basic directions 1 Upward transactions a Describes the current state of the organization based on its daily b When a sale occurs the info originates at the lowest level of the organization and is passed upward through various levels c This information takes on a finer level of granularity extent of detail d At upper levels the info is coarser because it is summarized aggregated within the information and not as detailed 2 Downward to lower levels a Strategies goals and directives that originate at a higher level are passed 3 Horizontal b Upper level makes strategies middle level turns strategies into tactics and lower levels deal with the operational details a Between functional business units and work teams b Goal to eliminate the right hand not knowing what the left hand is doing c All units need to inform others of processes and be informed everyone knows everything relevant to business 4 Outward Inward a Info communicated to and from customers suppliers distributors and other business partners b What electronic commerce is all about c Yields competitive advantage Internal information is specific operational aspects of an organization External information is environment surrounding the organization Objective information quantifiably describes something that is known Subjective information describes something that is unknown Example Bank is deciding what interest rate to offer It will use internal info how many customers of bank can afford external info what other banks are offering objective today s prime interest rate and subjective expected future prime interest rate What other banks are offering is both external and objective MIS Resource 2 People This is the single most important resource set goals carry out tasks serve customers and provide a reliable and stable tech environment so the organization runs smoothly and gains competitive advantage in market The most valuable asset is the mind not the technology Technology literate knowledge worker knows how and when to apply technology How Which tech to purchase how to use software to fullest Can define what info is needed Knows how and where to obtain information Understands the info once it is received transform info to business intelligence Act appropriately based on info to help organization achieve greatest advantage Example Who makes diaper purchases on Friday nights Why they purchase on Friday nights What complementary products they might also want need o This illustrates knowledge Ethics principles and standards that guide our behavior toward other people Subjective matter of cultural or personal interpretation Example Making copies of movies for friends not legal or ethical MIS Resource 3 Information Technology IT any computer based tool that people use to work with information and support the information and information processing needs of an organization Examples cell phone computer large networks Internet Key Technology Categories Hardware versus software is an easy way to categorize technology Hardware physical devices that make up a computer Software set of instructions that your hardware executes to carry out a task 1 Input device tool used to enter information and commands a Example keyboard touch screen bar code reader 2 Output device tool used to see hear or otherwise recognize results of your information processing requests a Example printer monitor speakers 3 Storage device tool used to store information for use at a later times a Example flash drive DVD 4 Central processing unit CPU hardware that interprets and executes system and application software instruction and coordinates the operation of all hardware a Random Access Memory RAM temporary holding area for information you re working with as well as the system and application software instructions that he CPU currently needs 5 Telecommunications device tool used to send information to and receive it from another person or computer in a network a Example Modem 6 Connecting devices such things as a USB port into which you connect a printer connector cables to connect printer to USB port and internal connecting devices on a motherboard 1 Application software software enabling you to solve specific problems and 2 Types of Software perform specific tasks a Microsoft Word 2 System software handles tasks specific to technology management and coordinates the interaction of all technology devices includes network operating system