All in one mis

Management information system, or MIS, broadly refers to a computer based system that provides managers with the tools
to organize, evaluate and efficiently manage departments within an organization.
In order to provide past, present and prediction information, a management information system can include software that
helps in decision making, data resources such as databases, the hardware resources of a system, decision support
Systems, people management and project management applications, and any computerized processes that enable the
department to run efficiently.
MIS provides information that is needed to manage organizations efficiently and effectively
MIS is any organized approach for obtaining relevant and timely information on which managerial decisions are based

The MIS is defined as an integrated system of man and machine for providing the information to support the
operations, the management and the decision making function in the organization.
MIS provides accurate and timely information necessary to facilitate the decision-making process and enable the
organizations planning, control, and operational functions to be carried out effectively.
Management Information System (MIS) is basically concerned with processing data into information and is then
communicated to the various Departments in an organization for appropriate decision-making.
MIS facilitates the decision making process and enable the organizational planning, control, and operational
functions to be carried out effectively

Advantages of MIS
•Companies are able to high light their strengths and weaknesses due to the presence of revenue reports,
employees' performance record etc.
The identification of these aspects can help the company improve their business processes and operations.
• Giving an overall picture of the company and acting as a communication and planning tool.
• The availability of the customer data and feedback can help the company to align their business processes
according to the needs of the customers.

The effective management of customer data can help the company to perform direct marketing and promotion
activities.
•Information is considered to be an important asset for any company in the modern competitive world.
The consumer buying trends and behaviors can be predicted by the analysis of sales and revenue reports from each
operating region of the company.

Information Systems Vs Information Technology
• System is a functional unit, which involves set of procedures/functions to produce certain outputs by processing
data/information given as input.
•Information System is computer based system that create, process, store and disseminate information through the
organization. Information systems can be formal or informal.
•Formal systems are designed and developed using a set of well-established organizational polices, procedures and
principles to coordinate and facilitate communication between different functional units and the processes they
support and to meet the overall information needs of the business.

• Informal System do not follow any formal or pre-established rules for collection, processing, storing or
disseminating data . Employees create informal systems when they need information that is not readily available
through formal systems.
•Information technology(IT) are tools and techniques that support the design and development of information
systems.
•They include hardware, software, databases, telecommunications and client-servers.
•Information systems and information technologies go hand in had.

Process of Converting Data into Information
Steps in conversion of data into information:
 Collection : first step is to collect data through surveys, interviews, sensors, documents, newspapers or any other
appropriable means. It can be tedious, time consuming and labor-intensive process.
 Classification: Second step classification of collected data based on some criteria
 Sorting, adding , merging and so on: Next data is sorted to arrange it in a meaningful form. Some additional task
may be included in this process like adding values, merging files and many others.
 Summarizing : When processed data become information, it can be condensed and summarized to make time are
useful to the decision maker.

 Storing: The information is then stored carefully for future use. Without proper storage decision makers may find it
difficult to retrieve the information when they need it and also information may be damaged if not properly stored.
 Retrieval: The decision maker must be able to retrieve the stored information in an easy way when it is needed.
 Dissemination: Finally the information must be disseminated or distributed in the right format , at the right time ,
to the right place and to the right people if it is not be useful.

Need of MIS for Organization
 Management Information Systems (MINS) is the study of how technology can be used to solve business
problems and create new business opportunities. So today any medium or large sized companies can survive
without computers and information system
 Meeting global Challenges
 Capturing Opportunities in the marketplace
 Supporting Corporate Strategy
 Linking Departments whose functions are different
 Enhancing work productivity
 Increasing the quality of goods and Services

Digital Firms and objectives of
Information System
12

Digital Firms
The digital firm is a general term for organizations that have enabled core business relationships with employees,
customers, suppliers and other external partners through digital networks.
these digital networks are supported by enterprise class technology platforms that have been leveraged within an
organization to support critical business functions and services
13

Some examples:
Some examples of these technology platforms are, Customer relationship management, supply chain management,
enterprise resource planning, knowledge management system, enterprise content management, and warehouse
management system among others
14

Purpose of these technology platform
To digitally enable seamless integration and information exchange within the organization to employees and outside
the organization to customers, suppliers, and other business partners.
15

Origin of “digital Firm”
The term "The Digital Firm" originated as a concept in a series of Management Information System books authored
by Ken Laudon and it provides a new way to describe organizations that operate differently than the traditional brick
and mortar business as a result of broad sweeping changes in technology and global markets
Digital firms place an emphasis on the digitization of business processes and services through sophisticated
technology and information systems.
These information systems create opportunities for digital firms to decentralize operations, accelerate market
readiness and responsiveness, enhance customer interactions, as well as increase efficiencies across a variety of
business functions.
16

Advantages of digital firms
Through digital networks and information system, the digital firm is able to operate core business service and
functions continuously and more efficiently.
This digital enablement of business processes creates highly dynamic information systems allowing for more efficient
and productive management of an organization.
17

Continue..
Additionally, digital enablement of core business functions and services provides an organization with opportunities
to:
Operate business continuously ("Time Shifting")
Operate business in a global workplace("Space shifting")
Adapt business strategies to meet market demands
Create business value from technology investments
 Drive efficiency improvements in inventory and supply chain
Enhance the management of customer relationship
Improve organizational productivity
18

Emergence of Digital Firms
Digitally-enabled relationships with customers, suppliers, and employees
Core business processes accomplished via digital networks
digital management of key corporate assets
rapid sensing and responding to environmental changes
19

Importance of MIS
Management Information System is always management oriented and keeps in view every level of management and
gets the desired information.
Integrated – refers to how different components(sub systems) are actually tied up together. eg: different
departments of organization linked together.
Useful for planning– as every organization makes log-term and short-term plans with the help of information like
sales & production, capital investments, stocks etc management can easily plan..
Effective Management Information System helps the management to know deviations of actual performance from
pre-set targets and control things.
20

It’s important for increasing efficiency.
MIS provides updated results of various departments to management.
MIS is highly computerized so it provides accurate results.
MIS adds to the intelligence, alertness, awareness of managers by providing them information in the form of
progress and review reports of an ongoing activity.
Helps managers in decision- making.
21

Objectives of MIS
The objective of MIS is to provide information for decision making on planning, initiating, organizing,
and controlling the operations of the subsystems of the firm and to provide a synergistic organization in the
process.
It facilitates the decisions-making process by furnishing information in the proper time frame. This helps the
decision-maker to select the best course of action.
MIS provide requisite information at each level of management to carry out their functions.
MIS provide a system of people, computers, procedures, and interactive query facilities, documents for
collecting, and storing, retrieving and transmitting information to the users.
22

Business prospective of information system
From a business perspective, an information system is an organizational and management solution, based on
information technology, to a challenge posed by the environment.
IS emphasizes the organizational and managerial nature of information systems:
To fully understand information systems,
A manager must understand the broader organization,
Management, and information technology dimensions of systems
Their power to provide solutions to challenges and problems in the business environment.
23

Continue..
IS problems are surveyed and classified.
IS problems is classified into several perspectives whose relevance in coping with the problems is discussed.
Research perspectives focusing on IS operations environment, IS development process, IS development
organization, IS development methods, and IS theories are distinguished.
24

References
https://www.sciencedirect.com/science/article/abs/pii/0963868794900124
https://www.ukessays.com/essays/information-technology/emergence-of-the-digital-firm-information-technology-
essay.php
https://www.uniassignment.com/essay-samples/information-technology/business-perspective-on-information-
systems-information-technology-essay.php
http://csit.merospark.com/third-semester/importance-and-objective-of-management-information-system-mis/
25

CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION27

Business Process
A network of activities, resources, facilities and information that interact to achieve/ accomplish some business
function.
Processes interact to achieve business objectives
manner in which work is organized, coordinated, and focused to produce a valuable products or service.
28

Continue..
concrete work flows of material, information, and knowledge- sets of activities.
unique ways to coordinate work, information, and knowledge.
ways in which management chooses to coordinate work.
29

Components of Business Process
Activities – transform resources and information of one type into resources and information of another type.
Resources – items of value, such as customers, suppliers, employees, distributors and so on
Facilities – structures used within resources. Eg. Inventories, databases, factories, vehicles
Information – activities use information to know how to transform inputs to outputs.
30

Business Information System
Represents a system of controls and processes which a business uses to analyze information needed to effectively
manage their business.
These controls and procedures can include accounting systems.
31

Objective Of Business Information System
use of information systems facilitates better decision making in the company
management is able to review all the present practices and norms and formulate new for the future
information systems are used across all realms and functions of the business
management is able to better control its people and processes and attain organizational goals
32

Information Systems Help Organization
achieve great efficiencies by automating parts of processes
rethink and streamline processes
Information System supports activities in business process
o Several activities may use one information system.
o Activity may have own information system and use several information system
33

Types of Information Systems
Transaction Processing System
Management Information System
Intelligent Support System (Decision Support system(DSS), Executive Information System(EIS) and
Expert System(ES)
Office Automation System(OAS)
34

Transaction Processing System
Basic business systems that serve the operational level
A computerized system that performs and records the daily routine transactions necessary to the conduct of the
business
35

Major functions
budgeting,
general ledger,
billing,
coat accounting,
sales management,
market research,
promotion,
pricing,
new products
Scheduling
Engineering
operations
Purchasing
Shipping
Receiving
Personnel records
Benefits
Compensation
Labor relations
Training
36

Major application systems
general ledger,
accounts receivable,
accounts payable,
budgeting, funds management systems,
sales order info system,
market research system,
Pricing
Materials resource planning systems
Purchase order control systems
Engineering systems
Quality control systems
Payroll
Employee records
Benefit system
Career path systems
Personnel training systems
37

Management Information System
An MIS provides managers with information and support for effective decision making and provides feedback on
daily operations.
MIS provides information to the users in the form of reports
Output, or reports are usually generated through accumulation of transaction processing data
MIS is an integrated collection of subsystems which are typically organized along functional lines within an
organization
38

Intelligent Support System (Decision Support system(DSS), Executive Information System(EIS) and
Expert System(ES)
Decision Support Systems are interactive information systems that assist a decision maker in approaching ill-
structured problems by offering analytical models and access to database.
These supports are designed to support the decision-making process, rather than to render a decision.
Can help rapidly obtain qualitative results needed to reach a decision.
Support easy modification of models
39

Expert System is a knowledge-based information system.
Uses its knowledge about a specific area to act as an expert consultant to users
Provide answer to questions in a very specific problem area by making human like interfaces about knowledge
contained in a specialized knowledge base.
40

Office Automation System(OAS)
An information system which is computer based that collects, processes, stores and transmits electronic messages
Office automation refers to the varied computer machinery and software used to digitally create, collect, store,
manipulate and relay office information needed for accomplishing basic task
41

Advantages are reduce involvement in clerical work, fast and accurate storage, less work force for large volume of
data, reduce the storage space
Disadvantages are Expensive first time, more technical, resist to change, training cost and time, no use while
electricity cut-off
42

References
https://www.slideshare.net/mobile/saurabhgoel66/business-process-presentation-873854
https://www.slideshare.net/mobile/NishantHaran/business-information-system-56318039
http://slideplayer.com/slide/3330310/
http://users.edinboro.edu/pditmore/BUAD290_Class_Exercises/Kroenke%20ppt/CH02_BP_Info_IS.ppt
https://www.slideshare.net/mobile/mannyardales/types-of-information-systems
43

System For Linking The
Enterprise System For
Collaboration And Team Work
44

Collaboration
Working with others to achieve shared & explicit goals
Occurs when two or more people work together to achieve a common goal, result or work project
Collaboration requires feedback and iteration
Short lived or long term
Informal or formal (teams)
Focuses on Task/mission accomplishment & usually takes place in business or organization & between businesses
45

Growing importance of collaboration
Changing nature of work
From factory to manufacturing & pre-computer office work
Work organized by silos
Growth of professional work - “interaction jobs”
Interaction jobs tend to be prof. jobs in service sector became close coordination & collaboration
Changing organization of the firm
Past - used hierarchical fashion
Now - organized into groups & teams expected to develop their own methods 4 accomplish task
Senior managers observe & measure result
46

Changing scope of the firm
Single location to multiple location
Large global companies need to have teams working on global basis
Emphasis on innovation
Great individuals are working with a team of brilliant colleagues
Strong collaboration practices & technologies are believed to increase quality of innovation
Changing culture of work
The idea/belief from differ teams can produce better output 47

The Enterprise System
Use of social networking platforms, internal and external
Engage employees, customers, and suppliers
Goal is to deepen interactions and expedite information sharing
“Conversations”
Requires information transparency
 Driving the exchange of information without intervention
from executives or others 48

Business benefits of collaboration and
teamwork
Investments in collaboration technology can bring organization improvements, returning high ROI
49

Benefits
Productivity
Can complete a complex task faster
Fewer errors
Quality
Can communicate errors
Fast corrective actions
Reduction in buffers among production units
Innovation
Come up with more innovative ideas for product & services
50

Customer Service
Can solace customer complaints
Issues faster & more effectively
Financial Performance
 Collaborative firms have superior sales, sales growth & financial performance
51

Building a collaborative culture and business
processes
“Command and control” organizations
No value placed on teamwork or lower-level participation in decisions
Collaborative business culture
 Senior managers rely on teams of employees.
 Policies, products, designs, processes, and systems rely on teams.
 The managers purpose is to build teams.
52

Tools for collaboration and teamwork
E-mail and instant messaging
Wikis
Virtual worlds
Collaboration and social business platforms
 Virtual meeting systems (telepresence)
 Cloud collaboration services (Google Tools, cyberlockers)
 Microsoft SharePoint
 IBM Notes
 Enterprise social networking tools 53

Enterprise social networking software
capabilities
Profiles
Content sharing
Feeds and notifications
Groups and team workspaces
Tagging and social bookmarking
Permissions and privacy 54

Building a collaborative culture and Enterprise
System
 No value placed on teamwork or lower-level
participation in decisions
 Policies, products, designs, processes, and systems rely
on teams.
55

Reference
https://www.mindmeister.com/183357003/system-for-collaboration-teamwork
http://ocmis.blogspot.com/2013/03/global-e-business-and-collaboration.html
https://www.slideshare.net/aashimawadhwa37/global-e-business
https://www.slideshare.net/muathasmar/mis-chapter-2-16413603
http://www2.southeastern.edu/Academics/Faculty/mhuynh/teach/omis350/ppt-
laudon/Laudon_MIS14_ch02.pdf
56

57

Collaboration
58

59

“Conversations”

teamwork
62

Benefits
Productivity
Can complete a complex task faster
Fewer errors
Quality
Can communicate errors
Fast corrective actions
Reduction in buffers among production units
Innovation
Come up with more innovative ideas for product & services
63

Customer Service
64

processes
65

Wikis
Virtual worlds
 IBM Notes

capabilities
Profiles
Content sharing

System
on teams.
68

Reference
69

Organizations And Information
Systems
CHAPTER: 3

What is an organization?
◦ Technical definition:
◦ Stable, formal social structure that takes resources from environment and processes them to produce outputs
◦ A formal legal entity with internal rules and procedures, as well as a social structure
◦ Behavioral definition:
◦ A collection of rights, privileges, obligations, and responsibilities that is delicately balanced over a period of time through
conflict and conflict resolution

The Behavioral View Of Organizations

Features Of Organizations
 Use of hierarchical structure
 Accountability, authority in system of impartial decision making
 Adherence to principle of efficiency
 Routines and business processes
 Organizational politics, culture, environments and structures

Organizational Environments
• Organizations and environments have a reciprocal relationship
• Organizations are open to, and dependent on, the social and physical environment
• Organizations can influence their environments
• Environments generally change faster than organizations
• Information systems can be an instrument of environmental scanning, act as a lens

5 Basic Kinds Of Organizational Structure
◦ Entrepreneurial:
◦ Small start-up business
◦ Machine bureaucracy:
◦ Midsize manufacturing firm
◦ Divisionalized bureaucracy:
◦ Fortune 500 firms
◦ Professional bureaucracy:
◦ Law firms, school systems, hospitals
◦ Adhocracy:
◦ Consulting firms

Other organizational features
◦Goals
◦Constituencies
◦Leadership styles
◦Tasks
◦Surrounding environments

Economic Impacts
◦ IT changes relative costs of capital and the costs of information
◦ Information systems technology is a factor of production, like capital and labor
◦ IT affects the cost and quality of information and changes economics of information
◦ Information technology helps firms contract in size because it can reduce transaction costs (the cost of participating in markets)
◦ Outsourcing

How Information Systems Impact
Organizations and Business Firms
Transaction Cost Theory
◦ Firms seek to economize on transaction costs (the costs of participating in
markets)
◦ Vertical integration, hiring more employees, buying suppliers and distributors
◦ IT lowers market transaction costs for a firm, making it worthwhile for firms to
transact with other firms rather than grow the number of employees

Agency Theory
◦ Firm is nexus of contracts among self-interested parties requiring supervision
◦ Firms experience agency costs (the cost of managing and supervising) which rise
as firm grows
◦ IT can reduce agency costs, making it possible for firms to grow without adding to
the costs of supervising, and without adding employees

Organizational And Behavioral Impacts
◦ IT flattens organizations
◦ Decision making pushed to lower levels
◦ Fewer managers needed (IT enables faster decision making and increases span
of control)
◦ Postindustrial organizations
◦ Organizations flatten because in postindustrial societies, authority increasingly
relies on knowledge and competence rather than formal positions

Organizational Resistance To Change
◦ Information systems become bound up in organizational politics because they
influence access to a key resource – information
◦ Information systems potentially change an organization’s structure, culture,
politics, and work
◦ Most common reason for failure of large projects is due to organizational and
political resistance to change

The Internet And Organizations
◦ The Internet increases the accessibility, storage, and distribution of information
and knowledge for organizations
◦ The Internet can greatly lower transaction and agency costs
◦ Example: Large firm delivers internal manuals to employees via a corporate Web
site, saving millions of dollars in distribution costs

Central Organizational Factors To Consider When Planning A New System
◦ Environment
◦ Structure
◦ Hierarchy, specialization, routines, business processes
◦ Culture and politics
◦ Type of organization and style of leadership
◦ Main interest groups affected by system; attitudes of end users
◦ Tasks, decisions, and business processes the system will assist

Information Systems to Achieve
Competitive Advantage

Competitive Advantage
Competitive advantage is the attribute that allows an organization to outperform its competitors.
It may include access to natural resources, such as high-grade ores or a low-cost power source, highly skilled labor,
geographic location, high entry barriers, and access to new technology.
It grow fundamentally from the value a firm is able to create to their customers.

Functions of Competitive Advantages

Types of Competitive Advantage
Barriers to entry that restrict supply Barriers to entry that restrict supply
Demand control Demand control
Economies of scale Economies of scale
Process efficiency

Porter Competitive Forces Model
In Porter Compétitive Forces model, the strategic position is identified by the competition of existing/ traditional
direct, new market entrants, substitute products, customers, and suppliers.

PORTER’S COMPETITIVE FORCES MODEL

Porter Competitive Forces Model
Traditional competitors Traditional competitors
New market entrants New market entrants
Substitute products and services Substitute products and services
Customers Customers
Suppliers

Traditional competitors
◦ All firms share market space with competitors who are continuously devising new products, services, efficiencies, switching
costs
New market entrants
◦ Some industries have high barriers to entry, e.g. computer chip business
◦ New companies have new equipment, younger workers, but little brand recognition

Substitute products and services
◦ Substitutes customers might use if your prices become too high, e.g. iTunes substitutes for CDs
Customers
◦ Can customers easily switch to competitor’s products? Can they force businesses to compete on price alone in transparent
marketplace?
Suppliers
◦ Market power of suppliers when firm cannot raise prices as fast as suppliers

Four generic strategies for dealing with competitive forces,
enabled by using IT
◦ Low-cost leadership
◦ Product differentiation
◦ Focus on market niche
◦ Strengthen customer and supplier intimacy

The Internet’s Impact on Competitive Advantage
Enables new products and services
Transforms industries
Increases bargaining power of customers and suppliers
Intensifies competitive rivalry
Creates new opportunities for building brands and large customer bases

Business value chain model
◦ Highlights specific activities in a business where competitive strategies can best be applied and where information systems are
likely to have a strategic impact
◦ Primary activities
◦ Support activities
◦ Benchmarking
◦ Best practices

◦ Views firm as series of activities that add value to products or services
◦ Highlights activities where competitive strategies can best be applied
◦ Primary activities vs. support activities
◦ At each stage, determine how information systems can improve operational efficiency and improve customer and supplier
intimacy
◦ Utilize benchmarking, industry best practices

Value web:
◦ A firm’s value chain is linked to the value chains of its suppliers, distributors, and customers
◦ A value web is a collection of independent firms that use information technology to coordinate their value chains to produce a
product collectively
◦ Value webs are flexible and adapt to changes in supply and demand

Synergies, Core Competencies, and Network-Based
Strategies
Information systems can improve overall performance of business units by promoting synergies and core
competencies
◦ Synergies
◦ When output of some units used as inputs to others, or organizations pool markets and expertise
◦ Example: merger of Bank of NY and JPMorgan Chase
◦ Purchase of YouTube by Google

Core competencies
◦ Activity for which firm is world-class leader
◦ Relies on knowledge, experience, and sharing this across business units
◦ Example: Procter & Gamble’s intranet and directory of subject matter experts

Network-based strategies
◦ Take advantage of firm’s abilities to network with each other
◦ Include use of:
◦ Network economics
◦ Virtual company model
◦ Business ecosystems

Information Technology
Infrastructure

What is IT Infrastructure?
Includes hardware, software and services
A set of physical devices and software applications that are required to operate the entire enterprise
Firm is largely dependent on its infrastructure for delivering services to customers, employees and suppliers.

Infrastructure components
1. Computer hardware platforms
2. Operating system platforms
3. Enterprise software applications
4. Data management and storage
5. Networking/telecommunications platforms
6. Internet platforms
7. Consulting system integration services

1. Computer hardware platforms
• Client machines
Intel, AMD microprocessors
• Server market
Intel, AMD blade server replaces box servers
Sun SPARC
IBM POWER chips
• Mainframe
IBM
Giant server for massive enterprise network and corporate Web site
Equivalent to thousands of small blade servers
 Top hardware manufacture
IBM
HP
Dell
Sun Microsystem
 Top chip producers
Intel
AMD
IBM

2. Operating System Platform
•Server operating system
Microsoft
Unix/Linux
•Client operating system
Microsoft Windows OS
Google Chrome OS
Android
IOS

3. Enterprise Software Applications
SAP
Oracle
Siebel
Microsoft
4. Data Management and Storage
Leading database software
IBM DB2
Oracle
Microsoft SQL Server
Sybase
MySQL
Physical data storage
EMC(electro magnetic compatibility
Storage area network

5. Networking/Telecommunication Platform
Local area network operating systems
Windows
Linux and Unix
Unix: large wide area networks
Leading hardware
Cisco
Nortel
Juniper Network
6. Internet Platform
Internet hardware server
IBM, Dell, HP/Compaq
Web software applications development tools
Microsoft
Oracle – Sun
Adobe

7. Consulting system integration services
Does not have the staff, the skills, the budget and the necessary experience
To deploy and maintain its entire IT infrastructure
Leading consulting firm
Software integration

Contemporary hardware platform trends
The emerging Mobile Digital Platform
Grid Computing
Consumerization of IT and BYOD
Virtualization
Cloud Computing
Green Computing
High-Performance and Power-Saving Processors
Autonomic Computing

Contemporary software platform trends
Linux and Open- Source Software
Software for the Web
Web Services and Service Orientated Architecture
Software Outsourcing and Cloud Services

Management Issues
An anticipatory, strategic management process that helps organizations detect and respond appropriately to
emerging trends or changes in the socio- political environment.
These trends or changes may then crystallize into an “issue”, which is a situation that evokes the attention and
concern of influential organizational publics and stakeholders.
Issues management argues that organizations should adopt an external focus and enact their environment by
attending to relevant issues.

Requirements of effective issues management
Two- way communication
Formal environmental scanning
Active sense- making strategies

Foundation of Business
Intelligence

File organization concept
Computer system organizes data in a hierarchy
◦ Field: Group of characters as word or number
◦ Record: Group of related fields
◦ File: Group of records of same type
◦ Database: Group of related files
Record: Describes an entity
Entity: Person, place, thing on which we store information
◦ Attribute: Each characteristic, or quality, describing entity

Problems with the traditional file environment
(files maintained separately by different departments)
– Data redundancy:
• Presence of duplicate data in multiple files
– Data inconsistency:
• Same attribute has different values
– Program-data dependence:
• When changes in program requires changes to data accessed by program
– Lack of flexibility
– Poor security
– Lack of data sharing and availability

BI is the process of transforming data into
information

Using databases to improve business performance
and decision making
Business Intelligence:
◦ Tools for consolidating, analyzing, and providing access to vast amounts of data to help users make better
business decisions
◦ Principle tools include:
◦ Software for database query and reporting
◦ Online analytical processing (OLAP)
◦ Data mining

Database
◦ Serves many applications by centralizing data and controlling redundant data
Database management system (DBMS)
◦ Interfaces between applications and physical data files
◦ Separates logical and physical views of data
◦ Solves problems of traditional file environment
◦ Controls redundancy
◦ Eliminates inconsistency
◦ Uncouples programs and data
◦ Enables organization to centrally manage data and data security

Relational DBMS
◦ Represent data as two-dimensional tables called relations or files
◦ Each table contains data on entity and attributes
Table: grid of columns and rows
◦ Rows (tuples): Records for different entities
◦ Fields (columns): Represents attribute for entity
◦ Key field: Field used to uniquely identify each record
◦ Primary key: Field in table used for key fields
◦ Foreign key: Primary key used in second table as look-up field to identify records from original table

Business Intelligence in the Enterprise
Business intelligence
◦ Infrastructure for collecting, storing, analyzing data produced by business
◦ Databases, data warehouses, data marts
Business analytics
◦ Tools and techniques for analyzing data
◦ OLAP, statistics, models, data mining

Business Intelligence And Analytics For Decision Support

Very large databases and systems require special capabilities, tools
◦ To analyze large quantities of data
◦ To access data from multiple systems
Three key techniques
1.Data warehousing
2.Data mining
3.Tools for accessing internal databases through the Web

•Data warehouse:
–Stores current and historical data from many core operational transaction
systems
–Consolidates and standardizes information for use across enterprise, but data
cannot be altered
–Data warehouse system will provide query, analysis, and reporting tools

134

Collaboration
135

136

“Conversations”

teamwork
139

Benefits
Productivity
 Can complete a complex task faster
 Fewer errors
Quality
 Can communicate errors
 Fast corrective actions
 Reduction in buffers among production units
Innovation
 Come up with more innovative ideas for product & services
140

Customer Service
141

processes
142

Wikis
Virtual worlds
 IBM Notes

capabilities
Profiles
Content sharing

System
on teams.
145

Reference
146

Executive Information System(EIS) and
Business Information System

Definition of EIS
EIS is a structured, automated tracking system that operates continuously to keep management abreast of what is
happening in all important areas. This tracking is accomplished by the system itself without management effort
Allows you to turn your organization's data into useful summarize reports
These reports are generally used by executive level managers for quick access to reports coming from all company
levels and departments
EIS is a software that allow user to transform enterprise data into quickly accessible and executive-level reports. It
enhances decision making for executives.

Needed information
More timely information
Greater access to operational data
Greater access to corporate databases
More concise, relevant information
New or additional information
More information about the external environment
More competitive information
Faster access to external databases

Characteristics of EIS
Tracking and Control Tool
Excellent Graphics
Very User-Friendly
Provides Rapid Access to Current Information
Problem Solving vs. Opportunity Assessment

EIS components
Early EIS products were developed for use on high-powered computers, but current products target the client/server
platform.
These more-flexible platforms can adapt to changes in the organization and in technology.
Use of real-time data leads to faster, more informed decisions

EIS components
Hardware Components
• An EIS requires no specific or unique hardware.
• A key issue is to be sure that the EIS components
optimize and conform to the organization’s computing
resources.
• The system must be configured so that the resources are
well-matched to the executives using them.
Software Components
• In contrast to hardware, software is usually highly
specialized to the problem domain.
• This specialization is often achieved by using off the-
shelf components for the EIS backbone, and customized
modules to meet specific needs.
• Lotus Notes is a good example. It can be used alone, or
can accommodate third-party plug-in modules.

Functional information systems
Functional Information System is based on the various business functions such as Production, Marketing, Finance
and Personnel etc. These departments or functions are known as functional areas of business.
Each functional area requires applications to perform all information processing related to the function.
The popular functional areas of the business organization are:
• Financial Information System
• Marketing Information System
• Production/Marketing Information System
• Human Resource Information System

Financial Information System
Financial information system is a sub-system of organizational management information system. This sub-system
supports the decision-making process of financial functions at the level of an organization.
Marketing Information System
This sub-system of management information system provides information about various functions of the marketing
system of an organization. Marketing is another functional area of the business organization, which is engaged in
marketing (selling) of its products to its customers.
Important functions of the marketing process include the following.
• The marketing identification function
• The purchase motivation function.
• The product adjustment function
• The physical distribution function
• The communication function
• The transaction function
• The post-transaction function

Production /manufacturing Information System
Manufacturing or production information system provides information on production /operation activities of an
organization and thus facilitates the decision-making process of production managers of an organization.
Human Resources Information System
This functional information system supports the functions of human resource management of an organization. The
human resource management function, in its narrow sense, it also known as personnel management .The function
involves:
• Manpower planning.
• Staffing
• Training and development
• Performance evaluation, and
• Separation activities

Marketing information systems
A marketing information system is a continuing and interacting system of people, equipment’s, and procedures to
gather, sort, analyze, evaluate, and distribute the pertinent, timely, and accurate information for use by marketing
decision-makers to improve their marketing planning, implementation, and control.”
Philip Kotler gives alternative definition, such as: “A marketing information system (MIS) consists of people,
equipment’s, and procedures to gather, sort, analyze, evaluate, and distribute the needed, timely, and accurate
information to marketing decision makers.”

Components of MIS
MIS is made of parts, subparts or subsystems which are called the components.
Typically, according to Philip Kotler, a marketing information system consists of four interrelated components
– Internal Reports (Records) System,
-Marketing Research System,
-Marketing Intelligence System,
- Marketing Decision Support System
All components are interrelated and interdependent.

Manufacturing Information Systems
The manufacturing information system that is targeted for use anywhere production is taking place.
Modern management information systems are generally computerized and are designed to collect and present the
data which managers need in order to plan and direst operations within the company.
Manufacturing organizations
◦ Operations functions merged into manufacturing systems
Manufacturing systems facilitate production of goods
◦ Inventory systems
◦ Manufacturing-planning systems
◦ Manufacturing-scheduling systems
◦ Manufacturing operations systems

Manufacturing Information Systems continue

Finance and Accounting Information Systems
Accounting Information Systems
◦ Cost-accounting applications determine marginal cost and profitability
◦ Accounts receivable includes receivables, payments, and collections
◦ Cash management is the process of scheduling payments and planning use of cash
◦ Financial reporting applications produce financial statements
◦ General ledgers show assets and liabilities
◦ Accounts payable systems reconcile payments against purchasers
◦ Budgeting applications allocate and schedule revenues and expenses
◦ Treasury applications concern management and investment

Accounting Information Systems continue

Financial Information Systems
A financial information system is a type of business software used to input, accumulate, and analyze financial and
accounting data.
It provides financial information to all financial managers within an organization.
It is a process and procedures that is used by an organization’s management to exercise financial control and
accountability.
It supports financial managers in decisions concerning.

Features of good financial management system
Keeping all payments and receivables transaction
Amortizing prepaid expenses
Depreciating assets according to accepted schedules
Keeping track of liabilities
Maintain income and expenditure statements and balance sheets
Keeping all records up to date
Maintain complete and accurate accounts
Minimizing overall paperwork

System vulnerability and abuse
Security
Policies, procedures, and technical measures used to prevent unauthorized access, alteration, theft, or physical
damage to information systems
Security refers to the policies, procedures, and technical measures used to prevent unauthorized access, alteration,
theft, or physical damage to information systems.
Controls
Methods, policies, and organizational procedures that ensure safety of organization’ s assets; accuracy and reliability
of its accounting records; and operational loyalty to management standards
Controls are methods, policies, and organizational procedures that ensure the safety of the organization’s assets, the
accuracy and reliability of its records, and operational adherence to management standards.

Vulnerability
Vulnerability is a weakness which allows an attacker to reduce a system’s information assurance.
Vulnerability is the intersection of three elements:
◦ A system susceptibility or flaw
◦ Attacker access to the flaw
◦ Attacker capability to exploit the flaw

Why systems are vulnerable
– Accessibility of networks
– Hardware problems (breakdowns, configuration errors, damage from improper use or crime)
– Software problems (programming errors, installation errors, unauthorized changes)
– Disasters
– Use of networks/computers outside of firm’s control
– Loss and theft of portable devices

Contemporary security challenges and
vulnerabilities

Computer crime
It is any crime that involves a computer and a network
Computer may have been used in the commission of a crime, or it may be the target

Types of computer crime
Spoofing
Sniffer
419 Scam
Denial-of-service attacks(DoS)
War dialing
Logic bombs
Buffer overflow
Password Crackers
Identity theft
Click fraud

Cyber Security And Ethics
Cyber security is the protection of computer systems from theft of or damage to their hardware, software or
electronic data, as well as from disruption or misdirection of the services they provide.
It includes controlling physical access to system hardware as well as protecting against harm that may be done via
network access, malicious data and code injection.
Due to malpractice by operators, whether intentional or accidental, IT security personnel are susceptible to being
tricked into deviating from secure procedures through various methods of social engineering.

Consequences of a cyber attack
Cyber attacks can disrupt and cause considerable financial and reputational damage to even the most resilient
organization.
If you suffer a cyber attack, you stand to lose assets, reputation and business, and potentially face regulatory
fines and litigation- as well as the costs of remediation.

Cyber Ethics
•Cyber-ethics is the discipline of using appropriate and ethical behaviors and acknowledging moral duties and
obligations pertaining to online environments and digital media.
•Cyber ethics is the ethics applied to the online environment.
•Cyber ethics is a code of behavior for using the Internet.

DO DON’T
schoolwork Use the internet to help you do the
homework. You can find many information
inside the internet
Don’t copy other people works and call it your
own. Do credits to the author or website.
Music, videos and copyright Use the internet to learn about music,
video and games.
Don’t use the internet to download or share
copyrighted material.

DO DON’T
E-mail and instant messaging (IM) Use the internet to communicate with
friends and family. But make sure you know
to whom you exchange your e-mail and IM
Don’t use the internet to communicate with
strangers. Don’t pretend to be someone else
and don’t be rude or use bad language.
For Parents Encourage your children to use the Internet.
The Internet has a lot good things to offer
children.
Don't leave your children unsupervised. Make
sure you know what sites your children visit
when they're on the internet, and with whom
they're communicating. Look over their
shoulder.

Rules of Cyber
•Do not use rude or offensive language.
•Don’t be a bully on the Internet. Do not call people names, lie about them, send embarrassing pictures of them, or
do anything else to try to hurt them.
•Do not copy information from the Internet and claim it as yours. That is called plagiarism.
•Adhere to copyright restrictions when downloading material including software, games, movies, or music from the
Internet.
•Do not break into someone else’s computer.
•Do not use someone else’s password.
•Do not attempt to infect or in any way try to make someone else’s computer unusable.

Technologies and tools for protecting information
resources
Firewall
Intrusion Detection Systems
Antivirus and anti-spyware software
Securing Wireless Networks
Encryption

Achieving Operational Excellence
and customer intimacy

Enterprise Systems
◦ Enterprise resource planning (ERP) systems
◦ Suite of integrated software modules and a common central database
◦ Collects data from many divisions of firm for use in nearly all of firm’s internal business
activities
◦ Information entered in one process is immediately available for other processes
◦ (c.f. Triangle diagram + 4 functions) – manufacturing view of sales data enables planning of
resources for future production. Sales view of manufacturing allows visibility of stock levels.

◦ Built around thousands of predefined business processes that reflect best practices
◦ Finance and accounting
◦ Human resources
◦ Manufacturing and production
◦ Sales and marketing
◦ Can help standardize a global company onto standard business processes (big savings come with centralized
IT processes)
◦ To implement, firms:
◦ Select functions of system they wish to use.
◦ Map business processes to software processes.
◦ Use software’s configuration tables for customizing.
◦ Main suppliers are Oracle (e-Business Suite, SAP, Microsoft Dynamics) + lots of others with smaller
market share – some specialization for particular industries

Supply chain management systems
◦ Supply chains can be very large and complex for many companies
◦ Over 50% of operating costs can occur in the supply chain
◦ Can extend to many thousands of organizations and many countries
◦ Getting this right can create big competitive advantage
◦ Network of organizations and processes for:
◦ Procuring materials, transforming them into products, and distributing the products
◦ Upstream supply chain:
◦ Firm’s suppliers, suppliers’ suppliers, processes for managing relationships with them
◦ Downstream supply chain:
◦ Organizations and processes responsible for delivering products to customers
◦ Internal supply chain

◦ Inefficiencies cut into a company’s operating costs
◦ Can waste up to 25% of operating expenses
◦ Just-in-time strategy:
◦ Components arrive as they are needed
◦ Finished goods shipped after leaving assembly line
◦ Safety stock: Buffer for lack of flexibility in supply chain
◦ Bullwhip effect
◦ Information about product demand gets distorted as it passes from one entity to next across
supply chain

Supply Chain Management Software
◦Supply chain planning systems
◦ Model existing supply chain
◦ Enable demand planning
◦ Optimize sourcing, manufacturing plans
◦ Establish inventory levels
◦ Identify transportation modes
◦Supply chain execution systems
◦ Manage flow of products through distribution centers and warehouses

Global supply chain issues
◦ Greater geographical distances
◦ Greater time differences
◦ Participants from different countries
◦ Different performance standards
◦ Different legal requirements
Internet helps manage global complexities
◦ Warehouse management
◦ Transportation management
◦ Logistics
◦ Outsourcing

Supply chain management
◦ Push-based model (build-to-stock)
◦ Earlier SCM systems
◦ Schedules based on best guesses of demand
◦ Pull-based model (demand-driven)
◦ Web-based
◦ Customer orders trigger events in supply chain
◦ Internet enables move from sequential supply chains to concurrent supply
chains
◦ Complex networks of suppliers can adjust immediately

Business value of SCM systems
◦ Match supply to demand; reduce inventory levels
◦ Improve delivery service
◦ Speed product time to market
◦ Use assets more effectively
◦ Reduced supply chain costs lead to increased profitability
◦ Total supply chain costs can be 75% of operating budget
◦ Increase sales

Customer relationship management systems
Knowing the customer
‘Mom and Pop’ store
In large businesses, too many customers and too many
ways customers interact with firm
Website, email, traditional mail, social media site, adverts,
face to face, survey, phone, company reports, press
releases, news reports

CRM systems
◦ Capture and integrate customer data from all
over the organization
◦ Consolidate and analyze customer data
◦ Distribute customer information to various
systems and customer touch points across
enterprise
◦ Provide single enterprise view of customers

CRM Software
◦ Packages range from niche tools to large-scale enterprise applications.
◦ More comprehensive have modules for:
◦ Partner relationship management (PRM)
◦ Integrating lead generation, pricing, promotions, order configurations, and availability
◦ Tools to assess partners’ performances
◦ Employee relationship management (ERM)
◦ Setting objectives, employee performance management, performance-based compensation, employee training
◦ CRM packages typically include tools for:
◦ Sales force automation (SFA)
◦ Sales prospect and contact information, sales quote generation capabilities
◦ Customer service
◦ Assigning and managing customer service requests, Web-based self-service capabilities
◦ Marketing
◦ Capturing prospect and customer data, scheduling and tracking direct-marketing mailings or e-mail, cross-selling

How CRM systems support Marketing

Operational CRM:
◦ Customer-facing applications such as sales force automation, call center and customer service support, and marketing
automation
Analytical CRM:
◦ Based on data warehouses populated by operational CRM systems and customer touch points
◦ Analyzes customer data (OLAP, data mining, etc.)
◦ Customer lifetime value (CLTV)
Business value of CRM systems
◦ Increased customer satisfaction
◦ Reduced direct-marketing costs
◦ More effective marketing
◦ Lower costs for customer acquisition/retention
◦ Increased sales revenue
Churn rate:
◦ Number of customers who stop using or purchasing products or services from a company
◦ Indicator of growth or decline of firm’s customer base

Enterprise applications challenges
◦ Highly expensive to purchase and implement enterprise applications
◦ Average “large” system—$12 million +
◦ Average “small/midsize” system—$3.5 million
◦ Technology changes
◦ Business process changes
◦ Organizational learning, changes
◦ Switching costs, dependence on software vendors
◦ Data standardization, management, cleansing

Next-generation enterprise applications
◦ Enterprise solutions/suites:
◦ Make applications more flexible, Web-enabled, integrated with other systems
◦ SOA standards
◦ Open-source applications
◦ On-demand solutions
◦ Cloud-based versions
◦ Functionality for mobile platform

Information Service SIS
• System that support information services provide managers with vital financial and statistical data that enhance
internal decision making.
Some information Service SIS are:
◦ •Financial Planning Systems : systems with mathematical models to aid
◦ financial planning.
◦ •Executive Information Systems: system that allow top management to retrieve internal and external data and information
directly from the computer.
◦ •Logistics: vehicle routing, freight rate management, shipment tracing,
◦ performance measurement.
◦ •Electronic Data Interchange (EDI):electronically sending bills, payments , or orders to suppliers and customers
◦ •Expert System : Computerized “consultant” systems for specialized situations

Strategic Information System
•SIS is a system that delivers information about product and services that play a direct and prominent role in helping
the firm achieving its strategic goals.
•SIS delivers data/information used to access and analyze opportunism and threats in the business environment.
•SIS is not a type of information system like TPS or DSS.
•Any information system is classified as SIS on how it is used and on the benefits it provides to the organization.
•If Information system is used in creative ways to achieve the goals and fulfill the mission of the organization; it can
be viewed as an SIS, whether it is TPS or DSS or any other type of system.

•Strategic Information System can be external or internal .
•External SIS are used primarily by external entities in the business environment like customer, suppliers and
distributer
•Internal SIS are used by employees within the organization .
•Example of Strategic Information System
•The ASAP system, designed by American Hospital Supply (AHP) , is a TPS that gained the structure of strategic
system because it made easy for hospital to place orders and provided customers with up-to-date information on the
status of their orders.
•Product description, prices and delivery schedules were readily available both to customers and to AHP managers,
who used the information to improve the quality of their decisions.

Another SIS is the ATM(Automated Teller Machine) introduced by Citibank as it is only alternatives to open branch
offices at large number of different location.
•ATM as a TPS help processing of transaction like deposit, withdraw, balance enquiry and many others ,is also SIS as
it fulfill the long term strategy of Bank to provide the customer-oriented service.
•The ATMs eliminated the need for opening branch offices, reducing the expenses of the bank
•The ATM “brought the bank to the customer” that made the bank services one of the reliable and useful to the
customer.

Types of Strategic Information System
•Systems that focus on innovation for competitive advantage –Innovation SIS
•Systems that use information as a weapon –Information Service SIS
•Systems that increase productivity and lower the costs of goods and services –Productivity SIS
•Innovation SIS: system that support innovation help companies to be responsive to customer needs.
•Some system like :
◦ •Customer Service Systems: order, order inquiry, service system
◦ •Marketing Planning: Forecasting, sales analysis

Is the project technically feasible?
•Many SIS have failed because they were not technically viable.
•SIS require technologies that are well established, well understood and widely accepted by users ; otherwise they
are doomed from the start.
•Once a company determines that the project is both financially and technically feasible, it must take five important
guidelines to ensure the success of SIS .
1.Technology decisions should be grounded in a clear understanding of the processes that drive the technology.
2.Strategic systems should be driven by strategic alliances between trading partners
3.Continuous improvement and investment in strategic systems are essential for their long-term success.
4.The organizational culture should encourage some risk taking.
5.Users must be fully trained if the full potential of the strategic system is to be achieved.

•First step is the organization should carefully study its business process before investing in strategic systems.
•Business process must be re-vaulted and radically redesigned before automating them.
•If business process are not clear then it cannot be transformed into an automated process.
•Second step is the collaboration between business entities that cross traditional organizational boundaries.
•Step third , strategic system can be successful over the long run only if the company is willing to invest in updating and maintaining it.
•Fourth, the organizational culture should encourage top mangers to be “champions” and “passionate sponsors” who are willing to take
key role in development and implementation of the system and encourage its use and acceptance by employees and customers
•Lastly, the organization should have talented people with excellent technical skills and a good understanding of the business

Potential Barriers to Developing an SIS
•Even if the company were to follow some of the guidelines in developing successful Strategic system , barriers
come across .
•Some of barriers are :
•Problem Definition
•Implementation
•Maintenance
Problem Definition:
•Many companies are unsuccessful at making innovative ideas practical , technically feasible, appealing and
affordable.
•Also defining a strategic idea requires that business managers communicate clearly with technical managers .
•If the tow groups cannot communicate properly or clearly this can be a barrier to the development of strategic
systems.
•Many innovative ideas are technically infeasible or expensive.

Implementation
•Even if companies cross the barrier to defining an idea, they often have a difficult time implementing it.
•Strategic system heavily rely on telecommunication and other leading-edge technologies many companies lack the
talent necessary to build such systems.
•Also inter-organizational systems require a great deal of cooperation among diverse departments which is hard to
come through.
Maintenance
•Companies that overcome the first two barriers types are often stumped by the complexity of maintain these
system so that they can sustain the advantages derived from them.
•Strategic system are often expensive to maintain and can be an enormous drain on the corporate budget.
•Companies with limited financial resources, technological sophistication and organizational flexibility are likely to
face one or more of these barriers

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