ICS321 Management
Information Systems
Dr. Kenneth Cosh
Lecture 1
M.I.S.
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ICS321
3(3-0-6) credits.
Dr. Kenneth Cosh
Office: 314
Class Time: 14:00-15:30 – Mon/Wed
Assessment: Midterm, Final, Case Study
Presentation, Individual Report.
Course Description
“A study of the structure of basic information
and the design and development of
management information systems within
business and industrial environments.
Students will explore the application of
information technology as a management
productivity tool and integrative use of
application programs to improve productivity.”
Today’s Topic
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Foundation Concepts
What is M.I.S.?
Management Information Systems
or
The Management of Information Systems
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“The study of information systems and their
use in business and management” (Laudon)
MIS is a term from the 1960’s, it is now often
considered out of date.
Why study M.I.S.?
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For C.I.S. students;
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It’s a key application of materials from related
courses.
As a C.I.S. graduate it’s likely you will be dealing with
computerised information systems within businesses.
Most of the information systems we will be dealing
with are ‘computer-based information systems’
(CBIS).
What is an Information System?
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“An information system can be any organised
combination of people, hardware, software,
communications networks, and data
resources that collects, transforms and
disseminates information in an organisation.”
(O’Brien).
What is Information Technology?
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Technologies are ‘devices’ which can assist
with the working of the information system;
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Paper and Pencil (Hardware)
Word of Mouth (Communication Networks)
Filing Cabinet (Data Resource)
Mostly we will be interested in computer
based technology.
What is a System?
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“Group of interrelated or interacting elements
forming a unified whole.” (O’Brien)
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Physical Systems (Weather Systems, Solar
Systems)
Biological Systems (Human body)
Educational Systems (Schools, Universities)
Information Systems…
Systems
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Systems have 3 basic elements;
Input: the ‘things’ which enter the
system, (food, orbits, high / low
pressure systems, data)
Processing: transformation
process to convert input into
output, (breathing, mathematical
calculations)
Output: Transferring the
transformed elements to their
ultimate destination, (Physical
movements, information)
Input
Processing
Output
Feedback and Control
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The System becomes
more useful when there
is Feedback and
Control;
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Feedback: data about
system performance
Control: monitoring and
evaluating feedback to
determine whether the
system is moving towards
achieving it’s goal and
then adjusting where
necessary.
Input
Processing
Output
Feedback
& Control
System Example
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A Thermostat self-regulating Air Conditioning.
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Input: Current room temperature.
Processing: Comparison with desired temperature
Output: Either On or Off
Feedback & Control: Ability of human user to
adjust temperature.
Further System Concepts
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Sub-systems
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Interfacing Systems
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Systems rarely exist within a vacuum, they are normally
part of some environment (or greater system).
Often multiple systems share the same environment, in
which case they often interract / have shared interfaces
The output of one system could be the input of the next
(stock control figures are passed as input to sales
department).
Adaptive Systems
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Some systems have the ability to change itself or it’s
environment in order to survive.
Case Study
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UPS Competes Globally with Information
Technology
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Laudon & Laudon p16.
Information Systems
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Collects data inputs, transforms them into
information outputs and disseminates the
information around an organisation.
Remember O’Brien’s quote?
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“An information system can be any organised combination
of people, hardware, software, communications networks,
and data resources that collects, transforms and
disseminates information in an organisation.”
Information Systems are comprised of 5 major types
of resource;
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People, Hardware, Software, Communication, Data
A Computer…for Dummies!
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Input Devices
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Output Devices
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Monitor, Printer, Speaker…
Processor
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Keyboard, Mouse,
Microphone, Scanner…
CPU
Storage Capabilities
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Main memory (RAM),
Secondary memory (Hard
Disk, CD’s etc.)
Information System Resources
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People
Hardware
Software
Data
Network (Communication)
People Resources
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End Users - the people who use the
information systems. E.g. Customers,
salespeople, engineers, clerks, accountants,
all of us!
IS Specialists - the people who develop,
implement and maintain the information
systems. E.g. software developers,
analysts, support staff.
Hardware Resources
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Physical, Tangible devices & materials used
in information processing.
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Machines - PC’s, monitors, printers etc.
Media - disks, printouts, paper etc.
Software Resources
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Information Processing Instructions
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Programs (system, application software)
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OS, word processing, spreadsheets, databases, payroll
etc.
Procedures (Operating Instructions)
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Data Entry procedures, paycheck distribution
procedures
Data Resources
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Databases
Knowledge Bases
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Data vs Information?
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Data - Raw material resources
Information - Processed data into meaningful
product.
From Data to Wisdom
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Data: symbols
Information: data that are processed to be useful;
provides answers to "who", "what", "where", and "when"
questions
Knowledge: application of data and information; answers
"how" questions
Understanding: appreciation of "why"
Wisdom: evaluated understanding.
(Ackoff)
Network Resources
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Communication Media
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Cables, fibre optics, cellular, wireless
Network Support
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Technologies to support the network, modems,
internet browsers etc.
Changing Role of IS
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IS is performing an increasingly important
role within organisations, that role is
changing.
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Technology Push effects
Business Pull effects
Technology - ‘Push’
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Increased Capability
Improved Processing & Storage
Improved Connection
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Networks
Internet
Comparative Cost reductions
THE ECONOMICS OF COMPUTERS
Power ‘66
Year
Cost
1966
$10,000,000
2001
$7
2006
$0.87
11,508,821
2016
$0.01
670,329,823
1
1,508,002
Gresham’s Law even faster
Source: McFarlan
McFarlan,, Warren F ., T ale of Two Airlines in the Information Age: Or Why the Spirit of King G eor ge III is Alive
and Well ! Teaching N ote, Copyright © 1995 President and Fellows Harvard College
Ta le of Two Ai rli ne s TN, Sli de 3 of 6
Evolution of Computing Performance
Pric e Pe rfo rmanc e Tre nds o f Main frames a nd PCs
$/MIP s
1,000,000
8:1*
100.000
Main frame
10,000
286:1*
1,000
PCs a nd wo rks tations
900:1*
100
10
1
1980
*Rat io of MIPs per D ollars (Ma inframes:PCs)
1990
1996
Ada pte d from: McKenn ey, J., W a ves o f C ha nge : Bu sine s s Evo lutio n
th rou gh Info rmatio n Tech no log y , Bosto n: Ha rvard Bu sin ess Sch oo l
P re ss, 1 99 5.
Source : Applegat e, Lynda M. , R obe rt D. Aust in, a nd F. Warren M cFa rl an ., Corporat e Informat ion Strat egy and Management. Burr R idge , IL: M cGraw-Hi ll /Irwi n, 2002.
Int roducti on Figure I-1
Business Pull Effects
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6 Important Business Objectives
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Operational Excellence
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New Products, Services & Business Models
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Right information at the right time
Competitive Advantage
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CRM & SCM systems
Improved Decision Making
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Consider today’s music industry?
Customer & Supplier Intimacy
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Efficiency / Productivity
Doing things your competitors can’t match
Survival
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Keeping up with competitors, or legal changes
Changing Role of IT in Organisations
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4 Era’s of Technology
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DP Era (Data Processing)
MIS Era (Management Information Systems)
SIS Era (Strategic Information Systems)
Internet Era
DP Era (50’s-60’s)
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Purpose : AUTOMATE
Form : Mainframe
Limitations : Hardware
Focus : Programming
Ownership : Computer Dept., Remote from users
Objectives : lower costs, make use of technology
MIS Era (70’s-80’s)
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Purpose : INFORMATE
Form : Distributed Processing - PC’s
Limitations : Software
Focus : Identifying User’s needs
Ownership : Regulated by management, available
as service
Objectives :Supporting management, meeting users’
needs
SIS Era (80’s-90’s)
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Purpose : TRANSFORMATE
Form : Networking
Limitations : Management Vision
Focus : Identifying Business Opportunities
Ownership : Executives, Linked to business
functions
Objectives : Supporting Business, meeting business
needs.
Internet Era (Now!)
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Purpose : ???...MATE
Form : Internet
Limitations : ??? Viability of Business Models
Focus : ??? Reach and Range
Ownership : Everyone - central to whole business
Objectives : it IS the business.
Case Study
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Is Second Life Ready for Business?
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Laudon & Laudon p34