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Management Information System (MIS)

Course: contents

Module 1: Introduction
Module 2: Kinds of IS Module 3: Telecommunication & Networks Module 4: Enterprise System, Security & Ethical Challenges

Text Books

Management Information Systems by James A OBrien (TMH) Management Information Systems: Managing the Digital Firm by Laudon & Laudon (Pearson) Management Information Systems: For the information age by Haag, Cummings, Philips (TMH)

What is System?

Definition: Group of interrelated & interdependent components which are linked together according to a plan to achieve the specific objectives OR

A set of components that work together to achieve a common goal

Examples: Physical Systems, Biological Systems, Technological System etc.

Subsystem & nature

Subsystem: One part of a system where the products of more than one system are combined to reach an ultimate goal Closed system: Stand-alone system that has no contact with other systems Open system: System that interfaces with other systems

What is Information?

Definition: Processed data used for decision making process

Examples: Examination Score Results, Research Thesis, Computer Generated Summary Reports etc.

Information Systems

Why Do People Need Information?

Decision making, problem solving and control

MIS 715 Eaton Fall 2001

Data vs. Information

Data A given, or fact; a number, a statement, or a picture Represents something in the real world The raw materials in the production of information Information Data that have meaning within a context Data in relationships Data after manipulation




Data Processing



Figure : Input-process-output

What is IS?

Definition: Organized combination of people, hardware, software, communication networks, data resources & policies/procedures that stores, retrieves, transforms & distributes information in an organization Examples: Computers, ATMs, Kiosks, GPS, GPRS etc.

Figure: Components of an information system


INFORMATION TECHNOLOGY Hardware Software Databases are used to build INFORMATION SYSTEMS

Payroll System

Inventory System

Other related components

Marketing System

Customer Service System

IS: Key Elements

People (operators, users, internet surfers, clerks, network administrators, data base developers, etc.) Hardware (Keyboard, monitor, CPU box etc.) Software (web browsers, MS-Office Package, nero etc.) Computer networks (LAN, MAN, WAN, Internet etc.) Data resources (Database) Policies & Procedures (Protocols)

IS: Major areas (Conceptual framework)

Foundation Concepts Information Technologies Business Applications Development Processes Management Challenges

IS: Roles

Support to business processes & operations (TPS) Support to decision making by managers & employees (MIS) Support to strategies for competitive advantage (DSS)

IS: basic functions (activities)

Input (key board, mouse, joy stick, light pen, scanners (flat, barcode, MICR, OCR, OMR), Web camera, touch screen, biometric, etc.) Process Output (monitor (VDU), Printers (dot matrix, ink jet, LASER), Plotters, speakers etc.) Store (Database, computer memories etc.) Feedback Control

IS: Trends

EDP (Electronic Data Processing)(1950-60) MIS (1960-70) DSS (1970-80) ECS (Enterprise Collaborative Systems), Executive Information Systems, Expert Systems, Strategic Information Systems, Knowledge Management Systems (1980-90) E-business & E-commerce (1990-2000) ERP (Enterprise Resource Planning) & Artificial Intelligence (2000-2010)

The role of ebusiness

Use of internet technologies to work & empower business processes, e-commerce, and enterprise collaboration within a company and with its customers, suppliers, and other business

Types of IS
1. OSS 1.1 TPS/DPS 1.2 PCS 1.3 ECS 2. MSS 2.1 MIS 2.2 DSS 2.3 EIS 3. Specialized IS 3.1 ES, KMS, SIS, FBS


Process data resulting from business transactions Update operational databases Produce business reports Examples: ATM, Kiosk, POS terminal, sales & inventory processing, accounting systems etc.

PCS (Process Control System)

Monitor and control industrial manufacturing activities / processes Engineering designs / frame work Electronic sensors Examples: Auto CAD, CAE, CAM, SCADA, PLC, Petroleum refining, power generation, steel production system etc.

ECS (Enterprise Collaboration System)

Support team, workgroup, and enterprise communications and collaborations Office automation systems Examples: email, chat, videoconferencing groupware systems


Provides information in the form of prescribed reports and displays to support business decision making Example: Sales analysis, production performance, cost trend analysis


Provide interactive support for the decision making processes Examples: product pricing, profitability forecasting, and risk analysis systems

EIS (Executive Information Systems)

Provide critical information from MIS, DSS, and other sources tailored to the information needs of executives Examples: systems for easy access to analyses of business performance, actions of competitors, and economic developments to support strategic planning

ES (Expert System)

Knowledge based systems that provide expert advise and act as expert consultants to users. Examples: credit application adviser, process monitor, and diagnostic maintenance system

Knowledge Management System (KMS)

Knowledge based systems that support the creation, organization and distribution of business knowledge within the enterprise. Examples: intranet access to best business practices, sales proposal strategies, and customer problem resolution systems

Strategic Information Systems (SIS)

Support operations or management processes that provide a firm with strategic products, services and capabilities for competitive advantage. Examples: online stock trading, shipment tracking, and e-commerce web systems

Functional Business Systems

Support a variety of operational and managerial applications of the basic business functions of a company. Examples: information systems that support applications in accounting, finance, marketing, operations management, and human resource management


An Organizations MIS Financial MIS

Business transactions

Transaction processing systems

Databases of valid transactions

Accounting MIS

Exception reports Demand reports

Marketing MIS

Scheduled reports

Business transactions

Human Resources MIS Etc.



System characteristics

System-subsystem Environment Interface / boundary Open / close system Adaptive system

IS Resources

People resources Hardware resources Software resources Data resources Network resources

Six Strategic Business Objectives of IS

Operational Excellence (ATM, Kiosk) [Cost leadership strategy] New products / services (,, Mobile banking) [Differentiation strategy] Customer / Supplier intimacy (e-SCM, e-CRM) [Alliance strategy] Improved decision making (ERP) [Growth Strategy] Competitive advantage (Dell mass customization) [Innovation strategy] Survival (new technological support)

Strategic Use of IT

Cost leadership strategy Differentiation strategy Innovation strategy Growth strategy Alliance strategy

Other strategies
1. Lock in customers & suppliers 2. Create switching costs 3. Raise barriers to entry 4. Leverage investment in IT

Example: Web System & its advantages

24 x 7 hrs., 365 days a year Local into the Global Competitive advantage / Comparative advantage Search cost reduction Online marketing More customer interaction (email, FAQ) Flexible Online catalog e-SCM Ease to sell Digital goods Search engine access Online Advertising / Banner based revenue generation

Competitive Forces

Rivalry of competitors Threats of new entrants Threats of substitutes Bargaining power of customers Bargaining power of suppliers

Decisions: types

Structured Semi structured


Information Quality Dimensions

Accuracy Integrity Consistency Completeness Validity Timeliness Accessibility

Types of DSS

GDSS (Group Decision Support System) GIS (Geographical Information System)

CDSS (Consumer Decision Support System)

Input Peripherals

Keyboard/Multimedia Keyboard Mouse/Wireless Mouse Track pad (touch pad) Touch Screen Scanner (Flat, OMR, MICR, OCR) Light pen Web (digital) camera Magnetic stripes Joy sticks Biometric devices

Output Peripherals

VDU (CRT,LCD) Printers (Dot Matrix, Inkjet, LASER) Plotters Headphone Speaker



RAM, ROM Floppy HD CD, DVD Pen drive RAID



Definition: Set of Programs Types:

Application software System software

Introduction to Computer Networks

Computer Networks
Computer network connects two or more autonomous computers.

The computers geographically anywhere.

can be located

Introduction to Computer Networks


Network in small geographical Area (Room, Building or a Campus) is called LAN (Local Area Network)

Network in a City is call MAN (Metropolitan Area Network)

Network spread geographically (Country or across Globe) is called WAN (Wide Area Network)

Computer Network Components

Client computer Server computer Transmission media (wired / wireless) Connecting devices (MODEM, hub, switch, bridge, router, gateway) NIC (Network Interface Card) NOS (Novell Netware, Apache, UNIX, MS Windows Server, Linux)

Introduction to Computer Networks

Networking Devices
HUB, Switches, Wireless Access Modems etc. Routers, Points,

Computers: Clients and Servers

In a client/server network arrangement, network services are located in a dedicated computer whose only function is to respond to the requests of clients. The server contains the file, print, application, security, and other services in a central computer that is continuously available to respond to client requests.

Network Topology
The network topology defines the way in which computers, printers, and other devices are connected. A network topology describes the layout of the wire and devices as well as the paths used by data transmissions.

Bus Topology
Commonly referred to as a linear bus, all the devices on a bus topology are connected by one single cable.

Introduction to Computer Networks

Star & Tree Topology

The star topology is the most commonly used architecture in Ethernet LANs. When installed, the star topology resembles spokes in a bicycle wheel. Larger networks use the extended star topology also called tree topology. When used with network devices that filter frames or packets, like bridges, switches, and routers, this topology significantly reduces the traffic on the wires by sending packets only to the wires of the destination host.

Ring Topology
A frame travels around the ring, stopping at each node. If a node wants to transmit data, it adds the data as well as the destination address to the frame. The frame then continues around the ring until it finds the destination node, which takes the data out of the frame.

Single ring All the devices on the network share a single cable

Dual ring The dual ring topology allows data to be sent in both directions.

Mesh Topology
The mesh topology connects all devices (nodes) to each other for redundancy and fault tolerance.

It is used in WANs to interconnect LANs and for mission critical networks like those used by banks and financial institutions.
Implementing the mesh topology is expensive and difficult.

Wired Channels

Twisted pair (telephone line / analog line)

Twisted copper strips Older type of transmission Made for analog communication, but digital communication as well Transmission speed up to 1000 Mbps (1 Gbps) Cabling limit up to 100 meters (328 feet) Cable type is CAT5 for LAN Single, tickly insulated copper wire Main application: Cable television Transmission speed up to 1 Gbps Cabling limit more than 100 meters Cable type is solid CATS for LAN

Coaxial cable

Fiber optic

Strands of pure glass/plastic More expensive, harder to install, fasted communication, ligher Light pulses from LED / LASER Speed up to 6+ Tbps

Networking Media
Networking media can be defined simply as the means by which signals (data) are sent from one computer to another (either by cable or wireless means).

Wireless Channel


IEEE 802.5 wireless standard WPAN 8 to 40 devices 10 to 100 meter area cable free Low power, radio wave communication Transmit up to 1 Mbps Bandwidth 2.4 GHz Wireless phones, pagers, computers, printers, wireless keyboard, wireless mice, laptops, PDA, scanners etc.

Wi-Fi (Wireless/Wider Fidelity)

IEEE 802.11 family standards (802.11a/b/g/n) Distance 10 to more than 100 meters Transmit more than 1 Mbps Frequency range 2.4 GHz 802.11n 200 Mbps

Mobile Communication

Cell structure Radio waves & radio antennas (towers) GSM & CDMA Radio frequency spectrum 800 2000 MHz Satellite phones Microwaves (line-of-sight problem) VSAT (Very Small Aperture Terminal)

Internet: terminologies

ISP (National, Regional, Local) Web browser (IE, Netscape Navigator, Safari, Opera, Mozilla Firefox) & Web site Dial up / Broadband Wireless web WML & WAP DNS (Domain Name System) OSI Model / TCP Model Protocols (HTTP, IP, SMTP, MIME, VoIP) Web site tools: HTML, DHTML, JavaScript, JAVA, JSP,, XML etc.

Internet: popular uses

Surf E-mail Search Discuss (e.g. chat rooms) Publish (e.g. weblog) Buy & Sell (e.g. ecommerce) Download (e.g. files, software, report, article, picture, music, video etc.) Compute Other (phone calls, video conference, radio, TV, video games etc.)

Internet: business values

Generate net revenue sources Reduce costs of doing business Attract new customers Increase customer loyalty & retention Develop new markets and channels Develop new web based products

Internet abuses (Security Challenges)

General e-mail abuses (spamming, phishing, spoofing, propagation of viruses/worms) Unauthorized usage & access (sharing of passwords & access into networks without permission) Copyright Infringement (pirated software) Transmission of confidential data (trade secret)


Pornography (accessing sexually explicit sites) Hacking (black hat [crackers], gray hat, white hat) Non work related download/upload (transmission of movies, music, and graphical material during working time) Leisure use (shopping, e-cards, gambling, chatting, game playing, auctioning, stock trading, personal email etc.) Moonlighting (side job)

Cyber [Computer] Crime

Hacking & cracking (monitor email, unauthorized access of networked computers, extract password, steal & damage confidential & private information) Cyber theft (theft of money) Unauthorized use at work (time & resource theft) Software privacy (unauthorized copying of software) Theft of Intellectual property (infringements of copyrighted material such as music, videos, images, articles, research, books etc.)


Viruses, Worms, Trojan Horse (Malicious software programs/ Malwares/ Flaming) Ad ware (internet banners & pop up ads without the consent of the computer user) Spy ware (collect specific demographics like name, address, passwords, or other personal details) Individual privacy

Other challenges

Employment challenges (job reduction) Computer monitoring (violation of right to privacy) Challenges in working conditions (challenging jobs requiring highly developed skills, do-nothing standby role) Challenges to individuality (dehumanize & depersonalize activities, inflexible & uncaring organizations with computer based operations)


Software/program errors Improper software/hardware or computer network installation Power fluctuation & failure Catastrophic effects (floods, fires, bombarding, earthquake, heavy snowfall, terrorist attack, riots)

Malicious Software

referred to as Malware & include a variety of threats, such as viruses, worms, and torjan horses Virus attaches itself to other software or files to be executed, destroying programs & data, clogging computer memory, corrupting hard drive, causing programs to run improperly, spread from one computer to another when users take an action such as sending email or copying an infected files, can make its own replicas


Worm independent programs that copy themselves from one computer to another, unlike viruses, it operate on their own without attaching to other computer program files & rely less on human behavior to spread from computer to computer, destroy data and programs as well as disrupt or even halt the operation of computer networks, more vulnerable than viruses


Torjan horses software that appear to be benign but then does something other than expected, doesnt replicate like virus, often a way for viruses or other malicious code to be introduced into a computer system Spyware small programs install themselves secretly on computers to monitor user web surfing activity Key loggers record every keystroke made on a computer to steal serial number of software, to gain access to email accounts, to obtain passwords or to pick up credit card details

Health Issues

Health problems: job stress, damage fingers/wrist/arms/neck muscles, eyestrain, back pain, indigestion etc. Ergonomics (Human Factors Engineering)

The tools (computer, hardware, software) The work environment (lighting, furniture, climate) The task (training, shift work, rest break)

Societal Solutions

Medical diagnosis Environment quality control Computer based training Distance learning Crime control Weather forecasting Urban planning Pollution control Highway planning

Security Management: tools

Cryptography (Encryption & Decryption) Firewall Defending against DDOS (Distributed Denial of Service) [monitor traffic, close unused ports, limit connections to each server, coordinate security with ISP) e-Mail monitoring Virus defenses


Other Security Measures

Security codes Backup files Biometric security Failure Tolerance Systems Disaster Recovery


Its considered as BPR. Its the technological backbone of e-business. Its cross functional enterprise system. Its an integrated suite of software modules. Its supports the basic internal business processes.

ERP Components

Sales, Distribution, Order management Production Planning Accounting & Finance Human Resources Integrated Logistic CRM SCM

ERP: leading vendors

SAP Oracle

J. D. Edwards

ERP: trends

Flexible ERP Web-Enabled ERP

Inter-enterprise ERP
e-Business ERP

ERP: benefits

Corporate headquarters has access to up-to-the-minute data on sales, inventory, and production and uses this information to create more accurate sales and production forecasts. Quality & efficiency Decreased costs Decision support Enterprise agility Speedy communication of information Easier to coordinate daily operations Increase accuracy Eliminate redundant processes & systems Increase customer satisfaction On-time shipments

ERP: costs

Reengineering 43 % Data Conversion 15 % Training & Change Management 15 % Software 15 % Hardware 12 %

ERP: causes of failures

Underestimated the complexity of the planning & development Fast conversion process Insufficient training Over-reliance on the claims of ERP vendors Over-reliance on the assistance of prestigious consulting firms hired to lead the implemenation