Management Information System

CHAPTER 1 OVERVIEW OF MANAGEMENT INFORMATION SYSTEMS

Information Technology Information technology is the use of computers to store, retrieve, transmit, and manipulate data or information.

Information System • Interrelated components that collect, process, manipulate, store data and disseminate information to support decision making, coordination, control, analysis and visualization in an organization. • A collection of hardware, software, data, people and procedures that are designed to generate information that support day-to-day activities of users in an organization.

Roles of Information System in business • To support business process and operation. • To support decision making. • To support strategies for competitive advantages.



First era : Mainframe and minicomputer computing • These first business computers were room-sized monsters, with several refrigerator-sized machines linked together. • These computers would often take up whole rooms and require teams to run them.

Second era : Personal computers • In 1975, the first microcomputer was announced : the Altair 8800. • 1981 IBM Microsoft released their own version of the personal computer, called “PC.”



Third era : Client/server networks • Computers used a common network access shared information on a server. • This networking architecture was referred to as “client- server” because users would log in to the Local Area network (LAN) from their PC (the “client”) by connecting to a powerful computer called a “server,” which would then grant them rights to different resources on the network (such as shared file areas and a printer).

Fourth era : Enterprise computing • refers to business-oriented information technology that is critical to a company’s operations. • Enterprise computing encompasses all the various types of enterprise software, including database management, relationship management and so on. • Enterprise computing is usually seen as a collection of big business software solutions to common problems such as resource management and streamlining processes.



Fifth era : Cloud computing • Employs networking technology to deliver applications as well as data storage independent of the configuration, location or nature of the hardware. • Cloud computing means storing and accessing data and programs over the internet instead of our computer’s hard drive.

Usage of Cloud Computing • Is a storage over the internet • Data and resource can be shared and stored on the internet. • Can be synchronize between data stored in over the internet and data stored in PC. • Useful for big data. • Don’t have to depend on portable hard disk/pendrive.

Basic activities of Information System a. Input • Capturing and assembling elements that enter the system to be processed. Input Device • Hardware used to enter data and instructions.

b. Process • Transformation process that converts input to output.

c. Output • Transfering transformed elements to their ultimate destination. Output Device • Hardware that conveys information to one or more people.

Components of Information System • An information system is essentially made up of five components: hardware, software, data, people and process /procedures / policies that work together to produce information. • These five components integrate to perform input, output, feedback and control.

a. Hardware • Hardware consists of input/output device, processor, operating system and media devices. • The physical components of a computer that perform the input, processing, storage and output activities of the computer. • Hardware is the physical parts or components of a computer, such as the monitor, keyboard, optical mouse, printer, scanner, computer data storage, graphic card, sound card and motherboard.

b. Software • Software is an instructions that can be stored and ran by hardware. • Software controlling process of the computer hardware operations. • Two types of computer software are: • System software • Application software

System Software • System software consists of the programs that control or maintain the operations of the computer and its devices. It serves as the interface between the user, the application software and the computer’s hardware. • Examples of system software - operating systems like macOS, Ubuntu (a Linux distribution) and Microsoft Windows, computational science software, etc • Two types of system software: • operating system • utility programs.

Operating System • An operating system is a program designed to run other programs on a computer. • It is considered the backbone of a computer, managing both software and hardware resources.

Utility Programs • A utility programs is a system software used to perform maintenance type task. • Disk Defragmenter - A disk defragmenter reorganizes the files and unused space on a computer's hard disk so that the operating system accesses data more quickly and programs run faster.

Application Software • Application Software is a computer program designed to help people perform an activity. • All the computer software that causes a computer to perform useful tasks beyond the running of the computer itself. • Also known as software application, application program or application. • Examples : accounting software, enterprise software, graphics software, media players and office suites.

c. Data • Streams of raw facts representing events occurring in organizatons or the physical environment before they have been organized and arranged into a form that people can understand and use.

d. People • People are the most often overlooked and most important part of a computer-based information system. It is people who design and operate the software, input the data, build the hardware and keep it running, write the procedures and it is ultimately people who determine the success or failure of a CBIS.

e. Process / Policies / Procedures • Set of logically related tasks performed to achieve a defined outcome.

Systems innovation in business today The role of information system in business. • To support business process and operation. • Use computer to assist employee recording purchases made by customer, monitor inventory, dispense salary, buy merchandise, evaluate sales trend.

• To support decision making. • Management teams use several information system to put together strategic plans, to collect and evaluate sources internal or external information. • To support strategies for competitive advantages. • By strategic plans, management had advantage over competitor. Implementation of touch screen kiosk for a business can lead to competitive advantages.

System innovation in business today a. Business transformation • Business Transformation is a change management strategy which has the aim to align People, Process and Technology initiatives of a company more closely with its business strategy and vision. • It helps to support and innovate new business strategies.

b. Globalization opportunities • Increased free trade and communication between nations, along with increased access to technology, media, education, healthcare, consumer goods, and other resources are often considered advantages of globalization.

c. Digital firms • The Digital Firm is a general term for organizations that have enabled core business relationship 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 function and services.