Manav Rachna College of Engg.

(MBA III SEM)

MANAGEMENT INFORMATION SYSTEM

Information System

What is an Information System

Interrelated components working together to collect,process,store and Disseminate information to support decision making,coordination,control, Analysis and visualization in an organization.

What is an Information System

Interrelated components working together to collect,process,store and Disseminate information to support decision making,coordination,control, Analysis and visualization in an organization.

An information system differs from other kinds of systems in that its objective is to monitor/document the operations of some other system, which we can call a target system. An information system cannot exist without such a target system .Example? Every reactive system will have a subsystem that can be considered an information system .

Business Perspective on Information Systems

Information System

Business Solution

Components of an IS

Data - Input that the system takes to produce information . Hardware - Computer itself and its peripheral equipment: input, output, storage devices; includes data communication equipment Software - Sets of instructions that tell the computer how to input, process, output and store data . Communication networks - Hardware and software specializing in transmission and reception of electronic data People - IS professionals and users who design, construct, operate and maintain IS Procedures - Rules to process data, e.g. priorities in running different applications, security measures, routines for malfunctioning IS, etc.

Information System Resources

People Resources

o End users o IS specialists

Hardware Resources

o Machines o Media

Software Resources

o Program Operating Systems (OS) Examples: Windows, Unix, etc. Application Software Examples: Excel, Access, MS-Word, etc.

Procedures: Operating instructions for the people who will use an information system. Examples: Instructions for filling out a paper form or using a software package.
Data Resources:
Data vs. Information

Network Resources:
o Communications media
o Communications processors o Network access & control software

Why Information Systems?

The Competitive Business Environment Emergence of the Global Economy . Transformation of Industrial Economies . Transformation of the Business Enterprise .

Globalization:
Management and control in global market place. Competition in world market. Global work group. Global delivery system. Transformation of industrial economies. Knowledge and information based economies. Productivity. Time based competition. Shorter product life. Environment turbulent.

Transformation of the Enterprise. Flattening. Decentralization Flexibility Location Independence. Collaborative and teamwork.

Individual Level Managers and Information Systems

Managers must use IS to: access information interpret information incorporate information in decision making Managers must exploit IS because of: rapid changes in technology intense international competition faster product life cycles more complex and specialised markets Managers: are responsible for investments in IS need to be proactive and selective must understand how IS are used in the functional areas of

business.

The New Role of Information Systems in Organizations

The Network Revolution and the Internet Internet as a whole has existed since 1969 . New Options for Organizational Design: The Networked Enterprise .
Think of Daimler from Germany and Chrysler in Michigan.

Virtual organizations.

XYZ and ABC companies can team up, work on a project, and then go their separate ways.

Enterprise Resource Planning . Electronic markets E.g.: Amazon. COM, the largest retailer on the
Internet selling books and CDs .

An information system differs from other kinds of systems in that its objective is to monitor/document the operations of some other system, which we can call a target system. An information system cannot exist without such a target system .Example? Every reactive system will have a subsystem that can be considered an information system .

Business Perspective on Information Systems

Information System

Business Solution

Components of an IS

Data - Input that the system takes to produce information . Hardware - Computer itself and its peripheral equipment: input, output, storage devices; includes data communication equipment Software - Sets of instructions that tell the computer how to input, process, output and store data . Communication networks - Hardware and software specializing in transmission and reception of electronic data People - IS professionals and users who design, construct, operate and maintain IS Procedures - Rules to process data, e.g. priorities in running different applications, security measures, routines for malfunctioning IS, etc.

Information System Resources

People Resources

o End users o IS specialists

Hardware Resources

o Machines o Media

Software Resources

o Program Operating Systems (OS) Examples: Windows, Unix, etc. Application Software Examples: Excel, Access, MS-Word, etc.

Procedures: Operating instructions for the people who will use an information system. Examples: Instructions for filling out a paper form or using a software package.
Data Resources:
Data vs. Information

Network Resources:
o Communications media
o Communications processors o Network access & control software

Why Information Systems?

The Competitive Business Environment Emergence of the Global Economy . Transformation of Industrial Economies . Transformation of the Business Enterprise .

Globalization:
Management and control in global market place. Competition in world market. Global work group. Global delivery system. Transformation of industrial economies. Knowledge and information based economies. Productivity. Time based competition. Shorter product life. Environment turbulent.

Transformation of the Enterprise. Flattening. Decentralization Flexibility Location Independence. Collaborative and teamwork.

Individual Level Managers and Information Systems

Managers must use IS to: access information interpret information incorporate information in decision making Managers must exploit IS because of: rapid changes in technology intense international competition faster product life cycles more complex and specialised markets Managers: are responsible for investments in IS need to be proactive and selective must understand how IS are used in the functional areas of

business.

The New Role of Information Systems in Organizations

The Network Revolution and the Internet Internet as a whole has existed since 1969 . New Options for Organizational Design: The Networked Enterprise . Think of Daimler from Germany and Chrysler in Michigan.

Virtual organizations.

XYZ and ABC companies can team up, work on a project, and then go their separate ways.

Enterprise Resource Planning . Electronic markets E.g.: Amazon. COM, the largest retailer on
the Internet selling books and CDs .

SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE

Systems Development and Organizational Change Four Kinds of Structural Change: Automation: Mechanizing procedures to speed up the performance of existing tasks .eg calculating paychecks, instant access to customer deposits. airline reservation.

Rationalization of procedures: The streamlining of standard operating procedures

SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE

Systems Development and Organizational Change ) Four Kinds of Structural Change: (Continued) Business process reengineering: Analysis and redesign of business processes to reorganize workflows and reduce waste and repetitive tasks Paradigm shift: Radical reconceptualization of the nature of the business and the nature of the organization

SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE

Systems Development and Organizational Change ) Four Kinds of Structural Change: (Continued) Business process reengineering: Analysis and redesign of business processes to reorganize workflows and reduce waste and repetitive tasks Paradigm shift: Radical reconceptualization of the nature of the business and the nature of the organization

SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE

Organizational Change Carries Risks and Rewards

Figure 14-3

BUSINESS PROCESS REENGNEERING AND PROCESS IMPROVEMENT

Business Process Reengineering Leading mortgage banks reduced time to obtain a mortgage from 6-8 weeks to one week, by radically changing the workflow and document management procedures

Workflow management: The process of streamlining business procedures so that documents can be moved easily and efficiently from one location to another

BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENT

Steps to effective reengineering:

Understanding which processes need improvement Measuring performance of existing processes as a baseline Allowing IT to influence process design from the start

BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENT

Redesigning Mortgage Processing in the United States

Figure 14-4

BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENT

Process Improvement: Business Process Management, Total Quality Management, and Six Sigma
Business Process Management (BPM): Methodology and tools for revising the organizations business processes enabling continual improvements

BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENT

BPM and BPM software tools include:

Workflow management Business process modeling Quality management

Change management

BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENT

Process Improvement: Total Quality Management and Six Sigma Total Quality Management (TQM): Edward Deming & joseph juran A concept that makes quality control a

responsibility to be shared by all people in an organization

Focuses on a series of continuous improvements rather than large change

BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENT

Total Quality Management and Six Sigma Six Sigma: A specific measure of quality, representing 3.4 defects per million opportunities Designates a set of methodologies and techniques for improving quality and reducing costs

Uses statistical analysis to detect process flaws and make minor adjustments

BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENT

Benchmarking:

Setting strict standards for products, services, or activities and measuring organizational

performance against those standards

Information System Support Quality improvement

Use customer demands as a guide to improving products and services:

Simplifying the product or the production Process:

Benchmarking: Reduce Cycle Time. Errors caught earlier in production. Improve quality and precision of the design: CAD/ Cam,sofware. Increase the precision of production.

BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENT

BPM and BPM software tools include:

Workflow management Business process modeling Quality management

Change management

BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENT

Process Improvement: Total Quality Management and Six Sigma Total Quality Management (TQM): Edward Deming & joseph juran A concept that makes quality control a

responsibility to be shared by all people in an organization

Focuses on a series of continuous improvements rather than large change

BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENT

Total Quality Management and Six Sigma Six Sigma: A specific measure of quality, representing 3.4 defects per million opportunities Designates a set of methodologies and techniques for improving quality and reducing costs

Uses statistical analysis to detect process flaws and make minor adjustments

BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENT

Benchmarking:

Setting strict standards for products, services, or activities and measuring organizational

performance against those standards