MIS
Chapter 1
Definition of Information System: An Information System (IS) is a structured system that integrates technology, people, and processes to manage, process, and disseminate information effectively for decision-making and operational purposes.
Components of Information System:
Hardware: Physical devices like computers (e.g., desktops, laptops), servers, and networking equipment (e.g., routers, switches).
Software: Applications and programs (e.g., database management systems like MySQL, enterprise applications like SAP) that process data and facilitate operations.
Data: Raw facts and figures (e.g., sales data, customer information) that are processed to produce meaningful information (e.g., monthly sales report).
Procedures: Policies and methods for operating IS (e.g., user manuals, data entry procedures), including how data is collected and processed.
People: Users who interact with the IS (e.g., IT staff, business analysts, end-users in sales).
Users of Information Systems:
Top-level Management: CEO and Board of Directors (e.g., developing long-term growth strategies).
Middle Management: Department heads (e.g., marketing manager analyzing campaign data).
Operational Staff: Customer service representatives inputting customer inquiries into the system.
External Stakeholders: Customers using an online ordering system, or suppliers accessing inventory data.
Levels of Management:
Top/Strategic Management: Develops long-term goals and strategies for the organization (e.g., launching new market initiatives).
Senior Management: Oversees departments (e.g., CFO overseeing finance department) and ensures alignment with strategic objectives.
Middle Management: Coordinates between different departments (e.g., human resources manager ensuring alignment of staffing with strategic goals).
Operational Management: Manages day-to-day activities (e.g., production manager overseeing daily manufacturing operations).
Role of Information System in Organizations:
Facilitates effective communication across all levels of management (e.g., collaboration software like Slack).
Assists in decision-making processes by providing timely and accurate information (e.g., reporting tools like Tableau).
Aids in managing business processes efficiently, enhancing productivity (e.g., project management software like Asana).
Role of Information System in Business Today:
While IS is expected to enhance operational efficiency, some argue its criticality has diminished due to the rise of alternative business models and technologies (e.g., agile and lean methodologies).
Organizations are increasingly exploring cloud services (e.g., AWS, Google Cloud) and outsourcing, reducing reliance on traditional IS.
Six Strategies for Business Objectives with IS:
Enhancing Operational Efficiency: Streamlining processes to reduce costs and save time (e.g., using software automation tools).
Enabling Innovation: Supporting new ideas and business models (e.g., developing apps for new services).
Strengthening Customer Relationships: Utilizing data analytics to better understand and engage customers (e.g., CRM systems like Salesforce).
Supporting Strategic Decision-Making: Providing data-driven insights to inform high-level decisions (e.g., dashboards summarizing key performance indicators).
Achieving Competitive Advantage: Leveraging IS capabilities to outperform rivals (e.g., using advanced analytics to identify market trends).
Facilitating Global Operations: Enabling businesses to operate across borders and access global markets (e.g., global e-commerce platforms).
Chapter 2
Business Processes and Types of Information Systems:
Transaction Processing Systems (TPS): Essential for daily operations (e.g., point of sale systems that process sales transactions).
Business Intelligence (BI) Systems: Analyze business data to support decision-making and strategic planning (e.g., BI tools like Power BI that visualize data trends).
Enterprise Resource Planning (ERP) Systems: Integrate core business processes (e.g., SAP, Oracle ERP) to improve efficiency and data accuracy.
Chapter 3
Database Concepts:
Definitions of Entity, Record, File:
Entity: A real-world object represented in the database (e.g., a student, in a university database).
Record: A single entry in a table, containing data related to an entity (e.g., a student's record including name, ID, and enrollment year).
File: A collection of related records (e.g., all student records in the university database).
Example of Entity: Student table.
Attributes: Characteristics of the entity such as Student name, Student ID, Age, Course of Study, and Contact Information.
Capabilities of Database Management Systems (DBMS):
Data Integrity: Ensures accuracy and consistency of stored data (e.g., referential integrity in relational databases).
Security: Protects data from unauthorized access (e.g., user authentication mechanisms).
Data Management: Facilitates data storage, retrieval, and manipulation (e.g., SQL for querying databases).
Chapter 4
Categories of E-Commerce:
B2B (Business-to-Business): Transactions between businesses (e.g., a manufacturer selling raw materials to a supplier).
B2C (Business-to-Consumer): Transactions directly between businesses and consumers (e.g., Amazon selling products to shoppers).
C2C (Consumer-to-Consumer): Transactions between consumers, facilitated by a third-party platform (e.g., eBay where users sell items to each other).
Unique Features of E-Commerce:
Ubiquity: Accessible from anywhere at any time (e.g., online banking apps).
Global Reach: Ability to reach a broader market across geographical boundaries (e.g., Shopify allowing small businesses to sell internationally).
Universal Standards: Technological standards provide a common format (e.g., HTTP for web access).
Richness: Supports various multimedia content and interactions (e.g., video product demonstrations).
Interactivity: Facilitates two-way communication (e.g., customer reviews and feedback sections).
Information Density: High volume of information processed (e.g., advanced analytics tracking user behavior).
Personalization/Customization: Tailored marketing and product offerings (e.g., Netflix recommending shows based on viewing history).
Social Technology: Engages consumers through social networks (e.g., advertising on Facebook and Instagram).
Chapter 5
Enterprise System: Focused on integrating various organizational processes (e.g., using an ERP system to streamline inventory, finance, and HR).
Supply Chain Planning Types:
Demand Planning: Forecasting demand (e.g., using analytics to predict product sales).
Supply Planning: Coordinating among suppliers (e.g., creating schedules for suppliers to meet production timelines).
SCM Software: Tools that enhance visibility (e.g., tools like SAP SCM that manage logistics and supply chain operations).
Chapter 6
Building Information Systems:
Goals and Reasons for System Development: Address business needs (e.g., reducing manual processes, improving customer service).
Business Process Management (BPM): A methodology focused on improving organizational processes (e.g., using BPM to refine workflow in order fulfillment).
System Analysis: Identifying potential IS to develop and system design (e.g., conducting feasibility studies assessing the need for a new service desk system).
Types of System Testing: Different stages (e.g., unit testing – testing individual modules of software, integration testing – testing multiple modules together, user acceptance testing – involving end-users to validate functionality).
Chapter 7
Types of Decisions: Decisions categorized as Strategic (long-term organization direction), Tactical (mid-term resource allocation), and Operational (daily management tasks).
Information Requirements of Groups: Tailored information for different management levels to support their functions (e.g., executives need high-level summaries while operational managers need specific reports).
Four Stages of Decision-Making Process:
Intelligence: Gathering relevant information (e.g., market research reports).
Design: Developing alternatives (e.g., brainstorming new product ideas).
Choice: Selecting the best alternative (e.g., choosing one product design to proceed with).
Implementation: Executing the chosen solution (e.g., launching a marketing campaign).
Role of Management Systems for Different Managers: Management systems provide essential data based on the specific information needs corresponding to management levels, ensuring support for informed decision-making (e.g., dashboards for executives, detailed reports for operational managers).