Management

Information Systems
(MIS)
Lesson 1: Information Systems in
Global Business Today
Nandana Pathirage

General Sir John Kotelawala Defence

Reference Books:
Laudon and Laudon, Management Information Systems,
Managing the Digital Firm, 12th Edition, Prentice Hall,
2012

Additional Reading:
EFFY OZ, Management Information Systems, 6th Edition,
2009

Acknowledgement
This lecture series is based on the
following
key
texts
and
resources
(including lecture slides associated with
each text book)
Laudon and Laudon, Management Information Systems,
Managing the Digital Firm, 12th Edition, Prentice Hall,
2012
EFFY OZ, Management Information Systems, 6th Edition,
2009

Other sources are referenced separately

Unit Overview
This unit is about the Managing Information
particularly Business Information Systems.

Systems,

The unit concentrates of addressing series of important

questions:
What is an information system (IS) and what are its
management, organization, and technology dimensions? Why
are IS so essential in businesses today? How can IS help
businesses become more competitive? What broader ethical
and social issues are raised by widespread use of IS?
Once you have done that then you will study the technical
foundation for understanding IS by examining hardware,
software, databases, and networking technologies along with
tools and techniques for security and control.

Programme of Study
Each week you will study one lesson and you are
expected to undertake the real-world case studies and
interactive sessions in Loudon's Book.
Finally, students are expected to spend approximately
10-15 hours per week on the given activities and
spending less time will significantly affect your chances
of success in the two assessments.

Unit will cover:

1. Information Systems in Global Business Today
2. Global E-Business: How Business use Information
Systems
3. Information Systems, Organizations, and Strategy
4. Ethical and Social Issues in Information Systems
5. IT Infrastructure and Emerging Technologies
6. Foundation of Business Intelligence: Databases and
Information Management
7.

Telecommunications,
Technology

the

Internet,

and

Wireless

Assessment and Grading

How is the unit assessed?
The unit is assessed by a coursework (assignment),
worth of 40% of the total marks, and an examination
(60%). In order to pass the unit student need to
achieve 40% in the combined unit.
During the study of the unit you will be asked to
participate the discussion and team work activities (end
of the each lessons).

1.0Introduction to MIS
Today, organizations recognizes
the importance of
managing resources of information and informative
processes as well as basic resources such as labor,
capital, and raw materials.
What
What
What
What

is
is
is
is

Data?
Information?
a System?
an Information System?

Data and Information

Raw data from a supermarket checkout counter can be processed and

organized to produce meaningful information, such as the total unit sales of
dish detergent or the total sales revenue from dish detergent for a specific
store or sales territory

A Hierarchy of Understanding
Data
Order

Information
Experience

Knowledge

Integration of
unrelated set of
knowledge

Wisdom
You need to understand that concepts of knowledge, and
especially wisdom, are outside the capability of current
technology despite claims to the contrary.

System and Information System

System is 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.
An Information System is a set of interrelated components
that collect or retrieve, process, store, and distribute
information to support decision making and control in an
organization.
Information systems can also be used to analyze problems,
visualize complex subjects, and create new products.

What do MIS professionals do?

BUSINESS

MIS
TECHNOLOGY

Bridge the gap between business and technical minds

Functions of an Information System

An information system contains information about an organization and its surrounding environment.
Three basic activitiesinput, processing, and outputproduce the information organizations need.
Feedback is output returned to appropriate people or activities in the organization to evaluate and refine
the input. Environmental actors, such as customers, suppliers, competitors, stockholders, and regulatory
agencies, interact with the organization and its information systems.

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

System Components

Systems: Some Examples

University
Inputs: Students, Faculty,
Textbooks
Processes: Education/Courses
Output: graduates
Feedback: surveys, grades

Fast Food IS
Inputs: consumer orders
Processes: processing
software
Output: receipts, cooks order
list
Feedback: invalid entry
message

Toyota Plant
Inputs: raw materials,
components
Processes: assembly line
Output: mini-vans
Feedback: customer surveys,
quality reports

Video Store IS
Inputs: rentals, returns
Processes: processing
software
Output: reports, rental
agreement
Feedback: error repots

Interactive Session: Management

MIS IN YOUR POCKET
Refer to the given case study

Major Types of Systems in Organization

Levels in a firm

Business organizations are hierarchies consisting of three principal levels: senior

management, middle management, and operational management. Information systems
serve each of these levels. Scientists and knowledge workers often work with middle
management.

Major Business Functions and need of

IS

If you career is in finance or accounting, you will need information systems

to summarize transactions, organize data, and perform financial analysis.

If your career is in human resources or management, you will need

information systems to communicate with employees, maintain employee
records, and coordinate work activities.

If your career is in information systems, you will be working with

management and other business professionals to develop and support new
systems that serve the needs of the business.

If you career is in manufacturing, production or operations management,

you will need information systems for planning, forecasting, and
monitoring production and services.

If you career is in sales and marketing, you will need information systems
for branding, promotions, processing orders, and providing customer
service.

Types of Information Systems

Three main categories of information systems serve different

organizational levels:
Operational-level
Systems:
support
operational
managers, keeping track of the elementary activities and
transactions
Management-level Systems: serve the monitoring,
controlling, decision-making, and administrative activities
Strategic-level Systems: help senior management tackle
and address strategic issues

Four major types of information systems

Strategic Business
Objectives of IS
Business firms invest heavily in information systems to
achieve six strategic business objectives:
Operational excellence: Efficiency, productivity, and improved
changes in business practices and management behavior
-Wal-Mart become the most efficient retail store in the industry New products, services, and business models: A business
model describes how a company produces, delivers, and sells a product
or service to create wealth. Information systems and technologies create
opportunities for products, services, and new ways to engage in business.
- Apple Inc. transformed an old business model of music distribution
vinyl records, tapes and CDs into an online, legal distribution model
based on its own iPod technology platform Customer and supplier intimacy: Improved communication with
and service to customers raises revenues, and improved communication
with suppliers lowers costs.

 Improved decision making: Without accurate and timely

information, business managers must make decisions based on
forecasts, best guesses, and luck, a process that results in over and
under-production of goods, raising costs, and the loss of customers.
Competitive advantage: Implementing effective and efficient
information systems can allow a company to charge less for superior
products, adding up to higher sales and profits than their competitors.
-Dell Computer remains most efficient producer of PCs in the world
due to the concept of mass customization Survival: Information systems can also be a necessity of doing
business.
-A necessity may be driven by industry-level changes, as in the
implementation of ATMs in the retail banking industry (Citi Bank 1977).
A necessity may also be driven by governmental regulations, such as
federal or state statutes requiring a business to retain data and report
specific information-

The Role of Information Systems in Business Today

Total Investment

IT Investment

Information technology capital investment, defined as hardware, software, and

communications equipment, grew from 34% to 50% between 1980 and 2004.

The Interdependence Between Organizations and Information

Changes in strategy, rules, and business processes increasingly require changes in

hardware, software, databases, and telecommunications. Often, what the
organization would like to do depends on what its systems will permit it to do.

Interactive Session: Technology

UPS COMPETES GLOBALLY WITH INFORMATION
TECHNOLOGY
Refer to the given case study

Dimensions of Information Systems

Using information systems effectively requires an understanding of the

organization, management, and information technology shaping the systems.

THE NEW YANKEE STADIUM LOOKS TO THE FUTURE

Refer to the given case study