Information Technology (IT)
• Computer Technology (Hardware and
Software)
 Processing and Storing Information
• Communication Technology
 Transmitting information
Introduction to MIS
• The MIS Concept
• System Concepts
• Types of Business Information Systems
 Roles; Trends
• Managerial Challenges of IT
• Why Studying IS/MIS
 What You Need to Know
The MIS Concept
The MIS concept addresses the use of IT
to improve individual and organizational
performance at two levels:
1) producing “better” tangible outputs
2) developing tools and processes that allow
better management decision making
Level 1: “Better” Tangible Outputs
• IT is used to make the process in producing a
tangible output more efficient and more effective
• Implication Issues
whether or not to use IT
selecting the proper IT
employing correct procedures for the
utilization of the IT
Level 2 : Intangible Outputs
• A schematic view - the information/decision level
• MIS involves identifying the key decisions that
are related to reaching objectives, on determining
the proper information needed to make these
decisions, and on improving the decision
processes employed to make the decisions.
• Implications: Activity at this level concentrates
on developing tools and processes that allow
better management decision making
The MIS Concept - Level 2:
Intangible Outputs (achieving desired objectives)
Goals/Objectives
Decisions
Information
Data
Decision Processes
System Concepts
• What is a system?
 A set of components that interact to accomplish goals
 Systems can be viewed as process models in terms of
their inputs, outputs, processing, and feedback/control
mechanisms. Examples.
• What is an IS?
 A set of interrelated components that collect input,
process, and output data and information and provide a
feedback/control mechanism
• What is a CBIS?
 An IS that uses IT.
 Components: hardware, software, databases, networks,
people, procedures
System Examples
• University – an example
 Inputs: students, faculty, textbooks
 Processing mechanisms: teaching, research, service
 Output: graduates
 Goal: acquisition of knowledge
• The Manufacturing System
• Other Examples
• Subsystem, interface,
open, adaptive
Boundary
Feedback
A Manufacturing System: Generic Components
Environment
Feedback
Signals
Feedback
Signals
Control
Signals
Control by
Management
Control
Signals
Input of
Raw Materials
Manufacturing
Process
Output of
Finished Products
System Boundary
Other Systems
Systems: Some Examples
• University
 Inputs: Students, Faculty,
Textbooks
 Processes:
Education/Courses
 Output: graduates
 Feedback: surveys, grades
• Toyota Plant
 Inputs: raw materials,
components
 Processes: assembly line
 Output: mini-vans
 Feedback: customer surveys,
quality reports
• Fast Food IS
 Inputs: consumer orders
 Processes: processing
software
 Output: receipts, cook’s
order list
 Feedback: invalid entry
message
• Video Store IS
 Inputs: rentals, returns
 Processes: processing
software
 Output: reports, rental
agreement
 Feedback: error repots
System Classifications and Characteristics
Subsystem
System Boundary
Interface
Open, Adaptive Systems
Open
Adaptive
Closed
Nonadaptive
Input, Processing, Output,
Feedback/Control
INPUTS
Gathering and
capturing raw data
PROCESSING
Converting or
transforming data
into useful outputs
OUTPUTS
Producing useful
information, usually in
the form of documents.
Feedback/Control
Output that is used to
make changes to input
or processing activities
System Performance Standards:
Efficiency and Effectiveness
Efficiency: a measure of
what is produced divided
by what is consumed
• an improved product
• the same level product
produced cheaper or
faster
• the improvement in the
product exceeds the
increased cost
Effectiveness: a measure
of the extent to which a
system achieves its
goals.
• Goal: to reduce damaged
parts by 100 units
• Q: Actual reduction in
damaged parts using a
control system is only
85 units. Effectiveness?
• A: The effectiveness of
the control system is 85
percent
What You Need to Know
• Foundation Concepts: Fundamental concepts about the
components and roles of IS
• IT: Major concepts, developments, and management
issues in information technologies
• Business Applications: The major uses of IS for the
operations, management, and competitive advantage
• Development Processes: How end users or information
specialists develop and implement IS
• The challenges of effectively and ethically managing
information technologies, strategies, and security at the
end user, enterprise, and global levels of a business
Ethical Dimensions of IT
• What uses of IT might be considered improper,
irresponsible, or harmful to other individuals or
to society?
• What is the proper use of an organization’s
information resources?
• What does it take to be a responsible end user of
IT?
• How can you protect yourself from computer
crime and other risks of IT?
Major Roles of Information Systems
Support of
Strategic
Advantage
Support of
Managerial
Decision Making
Support of
Business Operations
History of the Role of IS
1950-1960
1960-1970
Data
Processing
Management
Reporting
Electronic
Data
Processing
- TPS
Management
Information
Systems
1970-1980
Decision
Support
Decision
Support
Systems
- Ad hoc
Reports
1980-1990
1990-2000
Strategic &
End User
Electronic
Commerce
End User
Computing
Exec Info Sys
Expert Systems
SIS
Electronic
Business &
Commerce
-Internetworked
E-Business &
Commerce
Trends in ISs
• Data Processing: 1950s  Transaction processing, record keeping, traditional
accounting applications
• Management Reporting: 1960s  MIS – predefined management reports for decisionmaking purposes
• Decision Support: 1970s  DSS – interactive ad hoc support of the managerial
decision-making process
• Strategic and End User Support: 1980s  EUC, Executive Information Systems, Expert Systems,
Strategic Information Systems
• Electronic Business and E-Commerce: 1990s -
The Electronic Business
The Internet
Suppliers and Other Business Partners
Company
Boundary
Extranets
Procurement, Distribution, and Logistics
Engineering &
Research
Manufacturing
and
Production
Accounting,
Finance, and
Management
Intranets
Advertising
Sales
Customer Service
Extranets
Consumer and Business Customers