CHAPTER

CIS 300 MIS Course Introduction

Chang-Yang Lin cy.lin@eku.edu people.eku.edu/linc

Several Terms
E-World; Digital Age; Digital Firms Information Technology (IT) Information Systems (IS) Office Workers; Knowledge Workers; End-Users; End-User Managers E-Business; E-Commerce Business initiatives drive IT choices

Information Technology (IT)

Computer Technology (Hardware and Software)
Processing and Storing Information

Communication Technology
Transmitting information

CIS 300 - MIS

The MIS Concept Why Studying IS/MIS What You Need to Know System Concepts Types of Business Information Systems Roles; Trends Managerial Challenges of IT Course Website

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

Intangible Outputs (achieving desired objectives)

The MIS Concept - Level 2:

Goals/Objectives

Decisions

Information

Decision Processes

Data

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 Control Signals

Feedback Signals

Control by Management

Control Signals

Input of Raw Materials System Boundary

Manufacturing Process

Output of Finished Products

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, cooks 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 Closed

Adaptive

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

Procedures
Procedures - set of instructions used by people to complete a task Procedures include the strategies, policies, methods, and rules for using the CBIS. Examples: procedures describe When each program is to be run Who can have access to database What is to be done in case of a disaster

System Performance Standards:

Efficiency and Effectiveness
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

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

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

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 Data Processing 1960-1970 Management Reporting 1970-1980 1980-1990 1990-2000 Electronic Commerce

Decision Support

Strategic & End User

Electronic Data Processing - TPS

Management Information Systems

Decision Support Systems - Ad hoc Reports

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 Procurement, Distribution, and Logistics Extranets Company Boundary

Engineering & Research

Manufacturing and Production

Accounting, Finance, and Management

Intranets
Advertising Extranets Consumer and Business Customers Sales Customer Service

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 organizations 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?

Employment Projections by Occupation: 1998 and 2008

Employment (1,000) Rank Occupation 1 2 3 4 5 6 7 8 9 10 20 Fastest growing Computer engineers Computer support specialists Systems analysts Database administrators Desktop publishing specialists Paralegals and legal assistants Personal care and home health aides Medical assistants Social and human service assistants Physician assistants Securities, commodities, and financial services sales agents 1998 299 429 617 87 26 136 746 252 268 66 303 2008 622 869 1,194 155 44 220 1,179 398 410 98 427 # Change (1,000) 323 440 577 68 18 84 433 146 142 32 124 Percent change 108 102 94 77 73 62 58 58 53 48 41 Quartile rank by median earnings 1 1 1 1 2 2 4 3 3 1 1

U.S. Bureau of Labor Statistics, 1999

Employment Projections by Occupation: 1998 and 2008

Employment (1,000) Rank Occupation Largest job growth 1 2 3 4 7 8 13 14 15 19 25 26 27 Systems analysts Retail salespersons Cashiers General managers and top executives Registered nurses Computer support specialists Computer engineers Teachers, secondary school Office and administrative support supervisors and managers Marketing and sales worker supervisors Teachers, elementary school Blue-collar worker supervisors College faculty 1998 617 4,056 3,198 3,362 2,079 429 299 1,426 1,611 2,584 1,754 2,198 865 2008 1,194 4,620 3,754 3,913 2,530 869 622 1,749 1,924 2,847 1,959 2,394 1,061 # Change (1,000) 577 564 556 551 451 440 323 323 313 263 205 196 196 Percent change 94 14 17 16 22 102 108 23 19 10 12 9 23 Quartile rank by median earnings 1 4 4 1 1 1 1 1 2 2 1 1 1

U.S. Bureau of Labor Statistics, 1999