CH 1 2 3

Management Information Systems
Dr Mohammad Yamin PhD(ANU)

Professor
Department of Management Information Systems
Email: doctoryaminhotmail!com
Mo"ile: #$#%&#'###
Prof Mohammad Yamin
E(perience:
)eaching * +esearch
Si(teen YearsA,stralianNationalUni-ersity*U.
)/el-e YearsElse/here
Ind,stry
0-er 1 Years2,manSer-ices (A,st 3o-t I)

0rgani4ation 5 one of the ten largest IS
organi4ations in the /orld)
Business Information Systems

Business Information Systems
eBusiness
eBusiness
Competitive Advantage
Competitive Advantage
This Presentation
Pointers
How are information systems transforming?
Why are information systems so essential for

running and managing a usiness today?
What do we e!a"tly mean y an information

system? How does it wor#? What are its people$
organi%ation$ and te"hnology "omponents?
&ifferent #ind of people in Businesses and

systems that manage eBusiness
What is Competitive Advantage and what is the

role of IS in a"hieving it
What does IT give us?

What does IT give us?
Programs$ Tools$ 'adgets

Programs$ Tools$ 'adgets
What does IS provide us?

What does IS provide us?
Management of Businesses$
Management of Businesses$
(rgani%ations and So"iety
(rgani%ations and So"iety
IT vs) IS
Perspe"tives on Information Systems and Information Te"hnology
Information te"hnology* The hardware and software

a business uses to achieve objectives
Information system* Interrelated components that

manage information to:
Support decision making and control
Help with analysis, visualiation, and product creation
Includes resources including personnel

What Is an Information System? What Is an Information System?
Information Systems:
Concepts and Definitions
&ata: Streams of raw facts
Information: !ata shaped into meaningful,

useful form
+nowledge* Something that can be applied to

achieve results
"#amples:
$riday
%st &anuary
'(th &anuary
,i"hPi"ture * Ha-- Management System
Hajj
!atabase
)meer *agent
+ocal ,ilgrim
-anager
,ilgrim s
+ocal )urthority
)irport Staff
.ertified!octor
/isa0ffice
Hospital
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facilities 5
)rewegoingto
receivegood
serviceandare
thefaresvaluefor
money 5
)rewegivingthe
right peoplevisa 5
)rewegiving
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)mI providingthe
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)mI receiving
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of moneyfor my
efforts 5
Isit goingtobe
easytosearchfor
missingpeople 5
)reweableto
identifyevery
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proof 5
)rethelocals
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The .ew /an#ee Stadium 0oo#s to the 1uture
Prolem* 2s"alating salaries$ travel

"osts$ and ti"#et pri"es$ more
"ompeting entertainment options)
Solutions* 2nhan"e fan e!perien"e

y uilding state3of3the3art new
stadium)
The .ew /an#ee Stadium 0oo#s to the 1uture
Cis"o Systems supplied the te"hnology for the new /an#ee Stadium$
in"luding 4$455 high3definition monitors and video"onferen"ing e6uipment)
&emonstrates IT7s role in in"reasing value and revenue in any usiness)
Illustrates the potential for te"hnology to transform an organi%ation)

The ,ole of Information Systems in Business
Today
In 8559$ more than :; million usinesses had dot3

"om addresses registered)
More than 45< million people re"eive their news

online= ;; million Ameri"ans read logs)
Internet advertising "ontinues to grow at more than

4; per"ent per year)
.ew laws re6uire usinesses to store more data

for longer periods)
How Information Systems Are Transforming Business How Information Systems Are Transforming Business
The ,ole of Information Systems
in Business Today
What7s .ew in MIS?
.ew te"hnologies
Cloud "omputing > hardware ? software as servi"es over internet
Software as a servi"e @SaaSA > delivered as an internet servi"e @oo#sA
Moile digital platform > iPhone$ minimi%ing the use of traditional "omputers
People and ehavior "hanges
Managers use so"ial networ#s$ "ollaoration)
2mployees have a""ess to powerful de"ision aids 3 dashoards)
Birtual meetings are a""epted and used >video "onferen"ing)
(rgani%ations
We 8)5 appli"ations widely adopted > online "ommunities using logs
Telewor# gains momentum > internet$ wireless laptops$ iPhones$ Bla"#erries
Collaoration a"ross firms > STC$ Moily$ Cein
The ,ole of Information Systems in Business Today
'loali%ation 'loali%ation Challenges and (pportunities* Challenges and (pportunities*
A 1lattened World A 1lattened World
Internet and gloal "ommuni"ations have greatly

redu"ed e"onomi" and "ultural advantages of
developed "ountries @6S, "urope and others7)
!rastic reduction of costs of operating and transacting on

global scale 2 greatly reduced the advantage of 6S 8 others
.ompetition for jobs, markets, resources, ideas 96S 8 "urope

were competing for their economic life7
!ependence on imports and e#ports 9::; of 6S economy results
from foreign trade, <== 6S firms drive their revenue from foreign
operations, Half of Intel>s revenue came from overseas7
.ew Produ"ts$ Servi"es$ and Business Models* .ew Produ"ts$ Servi"es$ and Business Models*
?ith its stunning multitouch
display, full Internet browsing,
digital camera, and portable
music player, )pple@s i,hone has
set a new standard for mobile
phonesA 0ther )pple products
have transformed the music and
entertainment industriesA
Businesses invest in IT to a"hieve si!

important usiness o-e"tives)
4) (perational e!"ellen"e
8) .ew produ"ts$ servi"es$ and usiness models
D) Customer and supplier intima"y
E) Improved de"ision ma#ing
;) Competitive advantage
<) Survival
Business &rivers of Information Systems Business &rivers of Information Systems
The ,ole of Information
Systems in Business Today
(perational 2!"ellen"e* (perational 2!"ellen"e*
Improved effi"ien"y results in higher profits)
Information systems and te"hnologies help

improve effi"ien"y and produ"tivity)
"#ample: ?al2-art
,ower of combining information systems and best
business practices to achieve operational efficiencyB
and over CD== billion in sales in '==E
-ost efficient store in world as result of digital links
between suppliers and stores
Information systems and te"hnologies enale firms

to "reate new produ"ts$ servi"es$ and usiness
models)
Business model* how a company produces,

delivers, and sells its products and services
2!ample* Musi" industry
!rastic changes in business models in recent years
)pple: Successful innovationsBi,od, i,hone, and

so on
.ew Produ"ts$ Servi"es$ and Business Models* .ew Produ"ts$ Servi"es$ and Business Models*
Customers who are served well e"ome repeat

"ustomers who pur"hase more)
Mandarin (riental hotel
6ses IT to foster an intimate relationship with its
customers, keeping track of preferences, and so on
2mirates
Close relationships with suppliers result in lower

"osts)
FCPenney @PortfolioA
IT to enhance relationship with supplier in Hong Fong
Customer and Supplier Intima"y* Customer and Supplier Intima"y*
If managers rely on fore"asts$ est guesses$

and lu"#$ they will misallo"ate employees$
servi"es$ and inventory)
,eal3time data improves aility of managers to

ma#e de"isions)
Beri%on @PortfolioA* ?eb2based digital

dashboard to update managers with real2time
data on customer complaints, network
performance, and line outages
) contrast: &eddah floods

Improved &e"ision Ma#ing* Improved &e"ision Ma#ing*
(ften results from a"hieving previous usiness

o-e"tives
Advantages over "ompetitors*
.harging less for superior products, better

performance, and better response to suppliers and
customers 9.ontrast G -y e#perience H"lectro7
Toyota: uses T,S 9Toyota ,roduction System7 to

achieve high levels of efficiency and Iuality 9how
Iuickly has Toyota responded to the recent faults7
Competitive Advantage* Competitive Advantage*
Businesses may need to invest in information

systems out of ne"essity= simply the "ost of doing
usiness)
+eeping up with "ompetitors
.itibank@s introduction of )T-s
1ederal and state regulations and reporting

re6uirements
Survival* Survival*
Perspe"tives on Information Systems and Information Te"hnology
A"tivities in an information system that produ"e

information*
Input
Pro"essing
(utput
1eeda"#
A"tivities in an Information System? A"tivities in an Information System?
It Isn7t Simply Te"hnology* The ,ole of People and (rgani%ations
1un"tions of an Information System 1un"tions of an Information System
1igure 438
An information system "ontains
information aout an
organi%ation and its surrounding
environment) Three asi"
a"tivitiesGinput$ pro"essing$ and
outputGprodu"e the information
organi%ations need) 1eeda"# is
output returned to appropriate
people or a"tivities in the
organi%ation to evaluate and
refine the input) 2nvironmental
a"tors$ su"h as "ustomers$
suppliers$ "ompetitors$
sto"#holders$ and regulatory
agen"ies$ intera"t with the
organi%ation and its information
systems)
It Isn7t Simply Te"hnology* The ,ole of People and (rgani%ations
Three dimensions of information systems Three dimensions of information systems
1igure 43D
Hsing information systems
effe"tively re6uires an
understanding of the
organi%ation$ people$ and
information te"hnology
shaping the systems) An
information system
provides a solution to
important usiness
prolems or "hallenges
fa"ing the firm)
Portfolio
Intera"tive Session* Te"hnology Intera"tive Session* Te"hnology
HPS Competes 'loally with Information Te"hnology HPS Competes 'loally with Information Te"hnology
Using a handheld
computer called a Delivery
Information Acquisition
Device (DIAD), UPS
drivers automatically
capture customers
signatures along ith
pic!up, delivery, and time
card information" UPS
information systems use
these data to trac!
pac!ages hile they are
#eing transported"
Hnderstanding Information Systems* A Business Prolem3Solving Approa"h
Prolem solving* four3step pro"ess

4) Prolem identifi"ation
8) Solution design
D) Choi"e
E) Implementation
A Model of the Prolem3Solving Pro"ess A Model of the Prolem3Solving Pro"ess
4) Prolem identifi"ation in"ludes*
)greement that problem e#ists
!efinition of problem
.auses of problem
?hat can be done given resources of firm

Typi"al organi%ational prolems
0utdated business processes
6nsupportive culture and attitudes
,olitical in2fighting
Turbulent business environment, change
.omple#ity of task
InadeIuate resources
Typi"al te"hnology prolems
Insufficient or aging hardware
0utdated software
InadeIuate database capacity
Insufficient telecommunications capacity
Incompatibility of old systems with new technology
1apid technological change

Typi"al people prolems
+ack of employee training
!ifficulties of evaluating performance
+egal and regulatory compliance
?ork environment, ergonomics
,oor or indecisive management
+ack of employee support and participation

8) Solution design
0ften many possible solutions
.onsider as many as possible to understand range

of solutions
8) Choi"e* $actors include
.ost
$easibility given resources and skills
+ength of time needed to implement solution

E) Implementation
3uilding or purchasing solution
Testing solution, employee training
.hange management
-easurement of outcomes
$eedback, evaluation of solution
Prolem solving is a "ontinuous pro"ess$ not a

single event
Sometimes chosen solution doesn@t work or needs
adjustment
Prolem Solving Is a Continuous 1our3Step Pro"ess Prolem Solving Is a Continuous 1our3Step Pro"ess
1igure 43E
&uring implementation and
thereafter$ the out"ome
must e "ontinually
measured and the
information aout how well
the solution is wor#ing is
fed a"# to the prolem
solvers) In this way$ the
identifi"ation of the
prolem "an "hange over
time$ solutions "an e
"hanged$ and new "hoi"es
made$ all ased on
e!perien"e)
Without "riti"al thin#ing$ easy to -ump to

"on"lusions$ mis-udge a prolem$ and waste
resour"es
Criti"al thin#ing*
Sustained suspension of judgment with an

awareness of multiple perspectives and
alternatives
The ,ole of Criti"al Thin#ing in Prolem Solving The ,ole of Criti"al Thin#ing in Prolem Solving
1our elements of "riti"al thin#ing*

4) Maintaining dout and suspending -udgment
8) Being aware of different perspe"tives
Including technology, organiation, and people
perspectives
4) Testing alternatives and letting e!perien"e guide
8) Being aware of organi%ational and personal limitations
The ,ole of Criti"al Thin#ing in Prolem Solving The ,ole of Criti"al Thin#ing in Prolem Solving
When firms "annot a"hieve usiness o-e"tives

these o-e"tives e"ome "hallenges)
Information systems often present solutions$

partially or fully$ to these "hallenges)
The Conne"tion Between Business (-e"tives$ The Conne"tion Between Business (-e"tives$
Prolems$ and Solutions Prolems$ and Solutions
23Business
23Business
How Businesses Hse Information Systems
23Business
23Business
Managing a Business and 1irm Hierar"hies Managing a Business and 1irm Hierar"hies
$irms coordinate work of employees by developing

hierarchy in which authority is concentrated at topA
Senior management
-iddle management
0perational management
Fnowledge workers
!ata workers
,roduction or service workers
"ach group has different needs for informationA

Components of a Business
1igure 83D
Business organi%ations are
hierar"hies "onsisting of
three prin"ipal levels* senior
management$ middle
management$ and operational
management) Information
systems serve ea"h of these
levels) S"ientists and
#nowledge wor#ers often
wor# with middle
management)
0evels in a 1irm 0evels in a 1irm
D=
Management Skills
0
"#hibit %A'
1irms invest in information systems in order to*
A"hieve operational e!"ellen"e)
&evelop new produ"ts and servi"es)
Attain "ustomer intima"y and servi"e)
Improve de"ision ma#ing)
Promote "ompetitive advantage)
2nsure survival)
The ,ole of Information Systems in a Business The ,ole of Information Systems in a Business
Transa"tion pro"essing systems*

Feep track of basic activities and transactions of organiation
9eAgA, sales, receipts, cash deposits, payroll, credit decisions,
flow of materials in a factory7A 7A
Management information systems and de"ision3

support systems*
Help with monitoring, controlling, decision making, and

administrative activitiesA
2!e"utive support systems* *
Help address strategic issues and long2term trends, both in

firm and in e#ternal environmentA
Systems 1or &ifferent 0evels of Management Systems 1or &ifferent 0evels of Management
Types of Business Information Systems
Transa"tion pro"essing systems*
Serve operational managers)
Prin"ipal purpose is to answer routine 6uestions and

to tra"# the flow of transa"tions through the
organi%ation)
2)g)$ inventory 6uestions$ granting "redit to "ustomer
Monitor status of internal operations and firm7s

relationship with e!ternal environment)
Ma-or produ"ers of information for other systems)
Highly "entral to usiness operations and

fun"tioning)
Types of Business Information Systems
Management information systems*
Provide middle managers with reports on firm7s

performan"e)
To monitor firm and help predi"t future

performan"e)
Summari%e and report on asi" operations using
data from TPS)
Provide wee#ly$ monthly$ annual results$ ut may
enale drilling down into daily or hourly data)
Typi"ally not very fle!ile systems with little analyti"
"apaility)
Types of Business Information
Systems
2!e"utive support systems @2SSA*
Serve senior managers)
Address strategi" issues and long3term trends)

2)g)$ what produ"ts should we ma#e in five years?
Address nonroutine de"ision ma#ing)
Provide generali%ed "omputing "apa"ity that "an e

applied to "hanging array of prolems)
&raw summari%ed information from MIS$ &SS$ and

data from e!ternal events)
Typi"ally use portal with We interfa"e to present

"ontent)
Types of Business
Information Systems
2nterprise appli"ations
Systems that span fun"tional areas$ fo"us on

e!e"uting usiness pro"esses a"ross the firm$
and in"lude all levels of management)
2nterprise systems
Supply "hain management systems
Customer relationship management systems
+nowledge management systems
Systems That Span the 2nterprise Systems That Span the 2nterprise
Types of Business
Information Systems
Integrate data from #ey usiness pro"esses into

single system)
Speed "ommuni"ation of information throughout

firm)
2nale greater fle!iility in responding to "ustomer

re6uests$ greater a""ura"y in order fulfillment)
2nale managers of large firms to assemle overall

view of operations)
Al"oa used 2,P to eliminate redundan"ies and

ineffi"ien"ies in its disparate systems)
2nterprise Systems 2nterprise Systems
Systems That Span the
2nterprise
Help manage relationship with "ustomers)
Coordinate usiness pro"esses that deal with

"ustomers to optimi%e revenue and "ustomer
satisfa"tion$ and in"rease sales)
Comine sales$ mar#eting$ and servi"e re"ord data

from multiple "ommuni"ation "hannels to provide
unified view of "ustomer$ eliminate dupli"ate
efforts)
2)g)$ Saa C,M appli"ations to a"hieve D<5 degree

view of "ustomers resulted in greater follow3up
rate on sales leads and in"reased "ustomer
satisfa"tion)
Customer ,elationship Management Systems Customer ,elationship Management Systems
2nterprise
2nterprise
Intangile #nowledge assets
+nowledge aout produ"ing and delivering produ"ts

Sour"e of value and advantage for firms
+nowledge management systems*

Help "apture$ storage$ distriute$ and apply #nowledge so
that it "an e leveraged for strategi" enefit)
In"lude systems for*
Managing and distriuting do"uments$ graphi"s$

other digital #nowledge o-e"ts
Creating #nowledge dire"tories of employees with

spe"iali%ed e!pertise
&istriuting #nowledge
+nowledge Management Systems +nowledge Management Systems
Intranets and 2!tranets Intranets and 2!tranets
2nterprise
Te"hnology platforms that in"rease integration

and e!pedite the flow of information
Intranets*
Internal networ#s ased on Internet standards
Typi"ally utili%e a portal
2!tranets*
Intranets e!tended for authori%ed use outside the

"ompany for partners$ "ustomers
1a"ilitate "ollaoration
23Business$ 23Commer"e$ and 23'overnment 23Business$ 23Commer"e$ and 23'overnment
2nterprise
23usiness*
Hse of digital te"hnology and Internet to drive ma-or

usiness pro"esses
23"ommer"e*
Suset of e3usiness
Buying and selling goods and servi"es through Internet
23government*
Hsing Internet te"hnology to deliver information and
servi"es to "iti%ens$ employees$ and usinesses
,ead the Intera"tive Session and then dis"uss the

following 6uestions*
Will We "onferen"ing ma#e usiness travel e!tin"t? Will We "onferen"ing ma#e usiness travel e!tin"t?
What is the distin"tion etween video"onferen"ing and telepresen"e? What is the distin"tion etween video"onferen"ing and telepresen"e?
What are the ways in whi"h video"onferen"ing provides value to a What are the ways in whi"h video"onferen"ing provides value to a
usiness? Would you "onsider it smart management? usiness? Would you "onsider it smart management?
If you were in "harge of a small usiness$ would you "hoose to If you were in "harge of a small usiness$ would you "hoose to
implement video"onferen"ing? What fa"tors would you "onsider in implement video"onferen"ing? What fa"tors would you "onsider in
your de"ision? your de"ision?
Intera"tive Session* Te"hnology Intera"tive Session* Te"hnology
Birtual Meetings* Smart Management Birtual Meetings* Smart Management
Portfolio
D Chapter
A"hieving Competitive
Advantage with
Advantage with
Information Systems
Information Systems
Advantage with
Advantage with
Information Systems
Information Systems
(ne way to understand "ompetitive advantage
1ive "ompetitive for"es shape fate of firm

4) Traditional "ompetitors
.ompetitors in market space continuously devise new
products, new efficiencies, switching costsA
4) .ew mar#et entrants
Some industries have low barriers to entry:
"AgA, food industry versus microchip industry
Jewer companies may have advantages:
Jewer eIuipment, younger workforce, and so onA
Porter7s Competitive 1or"es Model Porter7s Competitive 1or"es Model
Hsing Information Systems to A"hieve Competitive Advantage
D) Sustitute produ"ts and servi"es
Substitutes customers can purchase if your prices too highA
"AgA, Internet music service versus .!sA

D) Customers
.an customers easily switch to competitor@s products5
.an customers force firm and competitors to compete on
price alone 9transparent marketplace75
D) Suppliers
The more suppliers a firm has, the greater control it can

e#ercise over suppliersA
1igure D34
In Porter7s
"ompetitive for"es
model$ the strategi"
position of the firm
and its strategies are
determined not only
y "ompetition with
its traditional dire"t
"ompetitors ut also
y four for"es in the
industry7s
environment* new
mar#et entrants$
sustitute produ"ts$
"ustomers$ and
suppliers)
Information System Strategies for &ealing with Information System Strategies for &ealing with
Competitive 1or"es Competitive 1or"es
Basi" strategy* Align IT with usiness o-e"tives
:; per"ent of usinesses fail to align their IT with their
usiness o-e"tives$ leading to lower profitaility)
To align IT*
Identify usiness goals and strategies)
Brea# strategi" goals into "on"rete a"tivities and pro"esses)
Identify metri"s for measuring progress)
&etermine how IT "an help a"hieve usiness goals)
Measure a"tual performan"e)
0ow3"ost leadership
6se information systems to achieve the lowest operational
costs and the lowest pricesA
2)g) Wal3Mart
Inventory replenishment system sends orders to suppliers
when purchase recorded at cash registerA
-inimies inventory at warehouses, operating costsA
"fficient customer response systemA
Supermar#ets and large
retail stores su"h as Wal3
Mart use sales data "aptured
at the "he"#out "ounter to
determine whi"h items have
sold and need to e
reordered) Wal3Mart7s
"ontinuous replenishment
system transmits orders to
resto"# dire"tly to its
suppliers) The system
enales Wal3Mart to #eep
"osts low while fine3tuning
its mer"handise to meet
"ustomer demands)
Produ"t differentiation
6se information systems to enable new products and

services, or greatly change the customer convenience in
using your e#isting products and servicesA
"AgA, 4oogle@s continuous innovations, )pple@s i,honeA

6se information systems to customie, personalie products
to fit specifications of individual consumersA
&ell
1o"us on mar#et ni"he)
6se information systems to enable specific market focus,

and serve narrow target market better than competitorsA
Analy%es "ustomer uying haits$ preferen"es
Advertising pit"hes to smaller and smaller target
mar#ets
"AgA, Hilton Hotel@s 0nK System 9,ortfolio7

Analy%es data "olle"ted on guests to determine
preferen"es and guest7s profitaility
Strengthen "ustomer and supplier intima"y)
Strong linkages to customers and suppliers increase

switching costs and loyalty
Toyota: uses IS to facilitate direct access from suppliers to

production schedules
,ermits suppliers to decide how and when to ship suppliers to
.hrysler factories, allowing more lead time in producing goodsA
Ama%on: keeps track of user preferences for purchases,

and recommends titles purchased by others
Intera"tive Session @ Intera"tive Session @Portfolio PortfolioA* People A* People
How Mu"h &o Credit Card Companies +now Aout /ou? How Mu"h &o Credit Card Companies +now Aout /ou?
,ead the Intera"tive Session and then dis"uss the

following 6uestions*
What "ompetitive strategy are the "redit "ard "ompanies
pursuing? How do information systems support that
strategy?
What are the usiness enefits of analy%ing "ustomer

pur"hase data and "onstru"ting ehavioral profiles?
Are these pra"ti"es y "redit "ard "ompanies ethi"al? Are
they an invasion of priva"y? Why or why not?
2nales new produ"ts and servi"es
Transforms industries
In"reases argaining power of "ustomers and

suppliers
Intensifies "ompetitive rivalry
Creates new opportunities for uilding rands and

large "ustomer ases
The Internet7s Impa"t on Competitive Advantage The Internet7s Impa"t on Competitive Advantage
2!isting "ompetitors* widens mar#et$ in"reasing "ompetitors$

redu"ing differen"es$ pressure to "ompete on pri"e
.ew entrants* redu"es arriers to entry @e)g)$ need for sales for"e
de"linesA$ provides te"hnology for driving usiness pro"esses
Sustitute produ"ts and servi"es* fa"ilitates "reation of new

produ"ts and servi"es
Customers7 argaining power* argaining power shifts to
"ustomer
Suppliers7 argaining power* pro"urement over Internet raises
power over suppliers$ suppliers "an enefit from redu"ed arriers to
entry and elimination of intermediaries
The Internet7s Impa"t on Competitive Advantage The Internet7s Impa"t on Competitive Advantage
What Is Iuality? What Is Iuality?
Competing on Iuality and &esign
Produ"er perspe"tive*
.onformance to specifications and absence of variation from

specs
Customer perspe"tive*
,hysical Iuality 9reliability7, Iuality of service, psychological
Iuality
Total 6uality management @TIMA*
Kuality control is end in itself

)ll people, functions responsible for Iuality
Si! sigma*
-easure of Iuality: :AD defects*million opportunities
,edu"e "y"le time and simplify produ"tion

pro"ess)
Ben"hmar#ing
Hse "ustomer demands to improve produ"ts and

servi"es)
Improve design 6uality and pre"ision)

.omputer2aided design 9.)!7 systems
Improve produ"tion pre"ision and tighten

produ"tion toleran"es)
How Information Systems Improve Iuality How Information Systems Improve Iuality
Computer3aided
design @CA&A systems
improve the 6uality
and pre"ision of
produ"t design y
performing mu"h of
the design and testing
wor# on the "omputer)

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Management Information Systems

Dr Mohammad Yamin PhD(ANU)

0-er 1 Years2,manSer-ices (A,st 3o-t I)

Business Information Systems

How are information systems transforming?

Why are information systems so essential for

What do we e!a"tly mean y an information

&ifferent #ind of people in Businesses and

What is Competitive Advantage and what is the

What does IT give us?

Programs$ Tools$ 'adgets

What does IS provide us?

Information te"hnology* The hardware and software

Information system* Interrelated components that

Includes resources including personnel

&ata: Streams of raw facts

Information: !ata shaped into meaningful,

+nowledge* Something that can be applied to

Prolem* 2s"alating salaries$ travel

Solutions* 2nhan"e fan e!perien"e

&emonstrates IT7s role in in"reasing value and revenue in any usiness)

Illustrates the potential for te"hnology to transform an organi%ation)

In 8559$ more than :; million usinesses had dot3

More than 45< million people re"eive their news

Internet advertising "ontinues to grow at more than

.ew laws re6uire usinesses to store more data

Internet and gloal "ommuni"ations have greatly

!rastic reduction of costs of operating and transacting on

.ompetition for jobs, markets, resources, ideas 96S 8 "urope

Businesses invest in IT to a"hieve si!

Improved effi"ien"y results in higher profits)

Information systems and te"hnologies help

Information systems and te"hnologies enale firms

Business model* how a company produces,

2!ample* Musi" industry

!rastic changes in business models in recent years

)pple: Successful innovationsBi,od, i,hone, and

Customers who are served well e"ome repeat

Close relationships with suppliers result in lower

If managers rely on fore"asts$ est guesses$

,eal3time data improves aility of managers to

Beri%on @PortfolioA* ?eb2based digital

) contrast: &eddah floods

(ften results from a"hieving previous usiness

Advantages over "ompetitors*

.harging less for superior products, better

Toyota: uses T,S 9Toyota ,roduction System7 to

Businesses may need to invest in information

+eeping up with "ompetitors

.itibank@s introduction of )T-s

1ederal and state regulations and reporting

A"tivities in an information system that produ"e

Prolem solving* four3step pro"ess

)greement that problem e#ists

?hat can be done given resources of firm

Typi"al organi%ational prolems

0utdated business processes

6nsupportive culture and attitudes

Turbulent business environment, change

Typi"al te"hnology prolems

Insufficient or aging hardware

InadeIuate database capacity

Insufficient telecommunications capacity