AN INTRODUCTION TO
MANAGEMENT INFORMATION
SYSTEMS
IS 340
BY
CHANDRA S. AMARAVADI
1
IN THIS PRESENTATION
Why information systems?
What are information systems?
What is their role in organizations?
How are they developed?
What are some current issues?
Course outline and features
2
THE GROWING IMPORTANCE
OF INFORMATION SYSTEMS
3
WHY INFORMATION SYSTEMS?
IT budget for Nation’s Bank $2 billion
IT budget for Bank America $ 4 billion
Web spending $200 billion
U.S. IT spending approx $1 trillion
Worldwide IT spending $2.6 trillion
4
WHY INFORMATION SYSTEMS?
Consider the following:
Morgan Stanley, An investment bank
24hr/day 7day/week operation
15,000 computers to process 100,000 trades/day
34,000 batch jobs/day
100 million lines of code
Intranet with 10,000 users
5
MOTIVATION FOR IS
What business changes [in the last 30 years] have
resulted in the increased demand for information
systems?
6
DEFINITION AND EXAMPLES
OF INFORMATION SYSTEMS
7
DEFINITION OF IS
“A set of interrelated components working together to
collect, process, store and disseminate information to
support decision making, co-ordination, control, analysis
and visualization.”
“A collection of computer systems to support
information processing in organizations.”
-- preferred definition.
Information technologies refer to technologies such as
computers, Networks, LANs etc.
8
INFORMATION SYSTEMS IN
ORGANIZATIONS
orders
SALES/
MARKETING
CUSTOMER
raw
materials
ACCOUNTING/
FINANCE
order fulfillment
PRODUCTION
SUPPLIERS
SOME EXAMPLES
OF INFORMATION SYSTEMS ARE
Billing systems
Bank account processing
Online ordering
Sales prediction
Repair assessment
10
EVOLUTION/TYPES OF INFORMATION
SYSTEMS
1950’s
Transaction processing
Reporting systems
1970’s
Database management systems
Decision support
Office information systems
1990’s
Enterprise information systems
E-Commerce systems
Knowledge Management systems
1980’s
AI based systems
Executive information systems
Strategic information systems
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TYPES OF INFORMATION SYSTEMS
Transaction processing systems: process business transactions
Reporting systems: summarize transaction information
Database management systems: systems to manage information
Decision support systems: support analysis of data to aid in d.m.
Executive information systems: systems to support executive d.m.
Office information systems: provide support to office workers
AI & expert systems: use artificial intelligence to duplicate human
activity (in organizations).
Strategic systems:systems which support the strategy of the
organization and improve competitive advantage.
Enterprise information systems: systems which support all functional
areas, from marketing to production.
E-commerce systems: systems for browsing, ordering, payment etc.
KM Systems: support organizational knowledge.
12
ROLE OF INFORMATION
SYSTEMS IN ORGANIZATIONS
13
WHAT IS A ROLE?
An IS role is a particular usage of information systems.

Labor substitution
 Managerial control
 …………
Take the example of a building.

1950s: Labor Substitution
 Use technology instead of labor

60s-70s: Managerial Control


Use information to control operations
80s-90s: Organizational Strategy
 Support organizational strategy

80s-90s: Institutional Core Activities
 Support activities such as accounting, finance etc.

80s-90s: Organizational Redesign
 See next

Current: E-Commerce (not discussed)
 Support web operations
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LABOR SUBSTITUTION &
MANAGERIAL CONTROL
Information
ORGANIZATIONAL
STRATEGY ROLE
Use IS as a competitive weapon
 Started with classic cases of SABRE & AHS
 SABRE -- reservation system of AA
 AHS (BAXTER) -- system now classified as SCM.
 IS should support org. strategies
AHS
HOSPITAL
Note: AA – American Airlines; AHS – American Hospital Supply, now Baxter
17
INSTITUTIONAL/CORE ACTIVITIES
ORGANIZATIONAL RE-DESIGN
Change organizational structure:

Simplify & redesign business processes
 Extend organizational boundaries
 Support new organizational structures
Note: E-commerce role will be discussed later in the course
19
INFORMATION SYSTEMS
DEVELOPMENT
20
INFORMATION SYSTEMS
DEVELOPMENT
IS development is the process of developing
an information system.
Also known as:
 Systems analysis and design (SAD)
 Software development/software engg.
 Information systems development
21
IS DEVELOPMENT METHODS
Conventional/Traditional
Prototyping (RAD)
Object oriented
RAD: Rapid Application Development
Note: these methods will be discussed later in the course
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THE IS DEVELOPMENT PROCESS
Project
manager
Users
Business
Analysts
Specs
Programmers
application/
information system
CURRENT ISSUES IN
INFORMATION SYSTEMS
24
CURRENT ISSUES IN
INFORMATION SYSTEMS




Managing global projects
Open Source software
Information privacy
Information security -- viruses
25
COURSE OUTLINE AND
FEATURES
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COURSE OBJECTIVES
A good and thorough understanding of
what information systems are, where they
are used and how they are developed.
COURSE PHILOSOPHY
Application of technologies to business
problems.
Understanding of technology v. imp.
This is nature of IS
Needed by AACSB, for info. literacy
Course arranged in this manner
Tests based on understanding matl.
COURSE FEATURES
Concept oriented (but technical)
Learn concept and apply it
Large # of concepts
Critical thinking is important
Become SW independent

Refers to current business events
Lots of questions, discussions
digressions welcome!

KEEP UP!
COURSE OUTLINE
Information Systems Technologies
•Hardware infra.
•Software infra.
•Internet
•Database
Information Systems Applications
•TP & ERP systems*
•E-Commerce
•Management support systems
•AI and expert systems
Information Systems Development
•Conventional
•Prototyping*
*if time permits
COURSE EVALUATION
Evaluation Item
Points
Midterms (2 x 100)
200
Final exam
100
Quizzes (4 x 10 – 1 x 10)
Assignments (5 x 20)
Participation
Total
30
100
40
470
Straight scale
Note: The following is tentative, please refer to your syllabus for
uptodate allocation of points
PARTICIPATION
Both assigned and spontaneous
 Research a topic & give a 5 min presentation
Answer questions, raise relevant issues
 Relate topics to discussions in press
 Quality > frequency
 One good contribution per class
adequate for an “A” in participation
 Avoid disruptive activities

DISRUPTIVE ACTIVITIES
Talking to class mates
 Eating
 Texting
 Checking for messages
 Homework
 Studying for another course/test
 Etc.

ADDITIONAL COMMENTS
Turn in Assignments on day they are due (before
class)
 Check into web site for assignments and other
announcements
 No makeups except under extreme circumstances
(with documentation)
 Take notes & review materials before class
 No talking, eating, sleeping or doing HW in class!