Mis 1

PAN African eNetwork Project
Master of Finance and Control Management Information System

Semester - II
Prof.- Nishant K Rai
Copyright Amity University 1
Agenda
General Discussion Instructors Profile Syllabus Review Lecture I
Copyright Amity University
Syllabus Review
Module I Role of data and information, Organization structures, Business Process, Systems Approach and introduction to Information Systems. Module II Resources and components of Information System, integration and automation of business functions and developing business models. Classification of Information System Module III Architecture, development and maintenance of Information Systems, Centralized and Decentralized Information Systems, Factors of success and failure, value and risk of IS. Module IV Decision Making Process, Decision Support Systems, Models and approaches to DSS Module V Introduction to Total Quality Management and Enterprise Resource Planning. ERP: role, advantages, reasons of success and failure, Module VI Financial Management Information Systems in Developing Countries by International Monetary Fund
References
Self Study Material Text & References: Text: MIS: Managing the digital firm, Kenneth C.Landon, Jane P. Landon, Pearson Education. References: Management Information Systems, Effy OZ, Thomson Leaning/ Vikas Publications Management Information Systems, James A. OBrein, Tata McGraw-Hill Management Information System, W.S Jawadekar, Tata Mc Graw Hill Publication. Management Information System, David Kroenke, Tata Mc Graw Hill Publication. MIS: Management Perspective, D.P. Goyal, Macmillan Business Books. MIS and Corporate Communications, Raj K. Wadwha, Jimmy Dawar, P. Bhaskara Rao, Kanishka
Lecture I
Module I Role of data and information, Organization structures, Business Process, Systems Approach and introduction toInformation Systems. Module II Resources and components of Information System, integration and automation of business functions and developing business models. Classification of Information System
Module I
Data Information Meaning of data, information and knowledge
Information Systems
Why Do People Need Information?
Individuals - Entertainment and enlightenment Businesses - Decision making, problem solving and control
Data, Information, and Systems

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 Manipulation
Example: customer survey
Reading through data collected from a customer survey with questions in various categories would be time-consuming and not very helpful. When manipulated, the surveys may provide useful information.

Generating Information
Computer-based ISs take data as raw material, process it, and produce information as output.
Figure 1.1 Input-process-output


Information in Context
Figure 1.2 Characteristics of useful information


What Is a System?
System: A set of components that work together to achieve a common goal 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
Figure 1.3 Several subsystems make up this corporate accounting system.


Information and Managers
Systems thinking
Creates a framework for problem solving and decision making. Keeps managers focused on overall goals and operations of business.
Figure 1.5 Qualities of humans and computers that contribute to synergy


The Benefits of Human-Computer Synergy
Synergy
When combined resources produce output that exceeds the sum of the outputs of the same resources employed separately
Allows human thought to be translated into efficient processing of large amounts of data
Figure 1.6 Components of an information system

The Four Stages of Data Processing
Input: Data is collected and entered into computer. Data processing: Data is manipulated into information using mathematical, statistical, and other tools. Output: Information is displayed or presented. Storage: Data and information are maintained for later use.
Why Study IS?

Information Systems Careers
Systems analyst, specialist in enterprise resource planning (ERP), database administrator, telecommunications specialist, consulting, etc.
Knowledge Workers
Managers and non-managers Employers seek computer-literate professionals who know how to use information technology.
Computer Literacy Replacing Traditional Literacy

Key to full participation in western society
Ethical and Societal Issues

The Not-So-Bright Side
Consumer Privacy
Organizations collect (and sometimes sell) huge amounts of data on individuals.
Employee Privacy
IT supports remote monitoring of employees, violating privacy and creating stress.
Ethical and Societal Issues

The Not-So-Bright Side Freedom of Speech
IT increases opportunities for pornography, hate speech, intellectual property crime, an d other intrusions; prevention may abridge free speech.
IT Professionalism
No mandatory or enforced code of ethics for IT professionals-unlike other professions.
Social Inequality
Less than 20% of the worlds population have ever used a PC; less than 3% have Internet access. Copyright Amity University
Contemporary Approaches to Information Systems
Technical approach Behavioral approach Approach of this text: Sociotechnical systems
TYPES OF INFORMATION SYSTEMS
KIND OF SYSTEM
STRATEGIC LEVEL
GROUPS SERVED
SENIOR MANAGERS
MANAGEMENT LEVEL
MIDDLE MANAGERS
KNOWLEDGE LEVEL
KNOWLEDGE & DATA WORKERS
OPERATIONAL LEVEL
SALES & MARKETING Copyright Amity University MANUFACTURING FINANCE ACCOUNTING
OPERATIONAL MANAGERS MANAGERS

HUMAN RESOURCES
MAJOR TYPES OF SYSTEMS
Executive Support Systems (Ess) Decision Support Systems (Dss) Management Information Systems (Mis) Knowledge Work Systems (Kws) Office Automation Systems (Oas) Transaction Processing Systems (Tps)
TPS DATA FOR MIS APPLICATIONS
TPS
Order Processing System ORDER FILE Materials Resource Planning System PRODUCTION MASTER FILE General Ledger System ACCOUNTING FILES UNIT PRODUCT COST PRODUCT CHANGE DATA EXPENSE DATA MIS FILES SALES DATA
MIS
MIS
REPORTS
MANAGERS
DECISION SUPPORT SYSTEMS (DSS)
Management Level Inputs: Low Volume Data Processing: Interactive Outputs: Decision Analysis Users: Professionals, Staff Example: Contract Cost Analysis
DECISION SUPPORT SYSTEMS (DSS) Flexible, Adaptable, Quick User Controls Inputs/Outputs No Professional Programming Supports Decision Process Sophisticated Modeling Tools
EXECUTIVE SUPPORT SYSTEMS (ESS) Strategic Level Inputs: Aggregate Data Processing: Interactive Outputs: Projections Users: Senior Managers Example: 5 Year Operating Plan
INTERRELATIONSHIPS AMONG SYSTEMS
ESS
MIS
DSS
KWS OAS
TPS
Organization of the IS Function
Typical firm has a unit called the IS department who are responsible for IT services Members of the IS department Programmers System analysts Project managers CIO Database administrators Network administrators Chief information officer End users (users of IS services outside the IS department)
IS and Business Strategy
Business strategy determines The products and services a firm produces The industries in which the firm competes Competitors, suppliers, and customers of the firm Long-term goals of the firm
General Ways that IS Contributes to Strategic Business Objectives
IS can contribute to strategic objectives in the following ways Operational excellence New products, services, and business models Customer and supplier intimacy Improved decision making The contributions listed above can lead to Competitive advantage Survival
Competitive Forces Model
NEW MARKET ENTRANTS
SUBSTITUTE PRODUCTS & SERVICES
THE FIRM
TRADITIONAL COMPETITION
SUPPLIERS
CUSTOMERS
Four Strategies Used With the Competitive Forces Model

Product differentiation involves developing new and unique products and services not easily duplicated by competitors Becoming the low-cost producer (provide same value but at a lower cost than competitors) Focused differentiation involves Narrowing the market by developing niches for specialized products or services where a business can compete better than its rivals Use of customer data (data mining, credit card transactions, Internet behavior) Strengthen customer and supplier intimacy Use IS to develop strong ties with customers and suppliers (SCM and CRM are major tools in this area)
Competitive Forces Model and the Internet

Substitute products/services Online banking, stock trading, reservations, online music Customers bargaining power Availability of pricing information (kbb.com) Expansion of options (expedia.com, pricegrabber.com) Suppliers bargaining power Procurement over the Internet raises bargaining power of customer Suppliers benefit from reduced barriers to entry and elimination of intermediaries (alibaba.com)
Competitive Forces Model and the Internet (continued)
Threat of new entrants The Internet has reduced barriers to entry such as the need for a sales force, access to channels, and physical assets Rivalries among existing competitors Widens the geographic market Increases number of competitors Reduces differences among competitors Pressure to compete on price
Porters Value Chain Model
The value chain model looks at a business in terms of a set of primary and support activities that add value to the firms products or services. VC model can be used to determine where information systems can have the most impact to effect the competitive position of the firm Firm gains a competitive advantage when it provides the product or service with more value or the same value at a lower price
E-commerce
E-commerce: Digitally enabled commercial transactions between and among organizations and individuals, primarily over Internet Began in 1995 with Netscape.coms acceptance of ads Rapid growth led to dot-com bubble (burst in 2001) Current growth 25% annually Today e-commerce revenues picture is very positive E.g. Number of people who have purchased something online expanded to about 106 million in 2007
The Growth of E-Commerce EElectronic Commerce and the Internet
Retail e-commerce revenues have grown exponentially since 1995 and have only recently slowed to a very rapid 25 percent annual increase, which is projected to remain the same until 2008. Source: Based on data from eMarketer, 2006; Shop.org and Forrester Research, 2005; and authors.
Electronic Commerce and the Internet
Seven unique features of e-commerce 1. Ubiquity Internet technology available anytime and everywhere: work, home, mobile devices Business significance: Marketplace is extended beyond traditional boundaries and is removed from temporal and geographic location Creates marketspace: Marketplace extended beyond traditional temporal, geographical boundaries Shopping can take place anywhere - customer convenience is enhanced, shopping costs are reduced
2. Global reach Technology reaches across national boundaries, around Earth Business significance: Commerce enabled across cultural and national boundaries seamlessly, without modification Marketspace includes potentially billions of consumers and millions of businesses worldwide
3. Universal standards There is one set of Internet technology standards Business significance Disparate computer systems can easily communicate Brings lower market entry costs (costs merchants pay to bring goods to market) Lowers search costs for consumers
4. Richness Video, audio, text messages are possible Business significance: Video, audio, text integrated into single marketing message and experience Technology works through interaction with user Business significance: Consumers engaged in dialog that adjusts to individual; consumer is co-participant in delivering goods to market
5. Interactivity
6. Information density Technology reduces information costs and raises quality Business significance: Information becomes plentiful, cheap, and more accurate Increases price transparency and cost transparency Enables price discrimination
7. Personalization/customization Technology allows personalized messages to be delivered to individuals as well as groups Permits customizationchanging delivered product or service based on users preferences or prior behavior Business significance Personalization of marketing messages and customization of products and services are based on individual characteristics
Key concepts in e-commerce: Digital markets and digital goods Internet shrinks information asymmetry Information asymmetry: when one party has more information important for transaction E.g. Information asymmetry between auto dealers and customers Digital markets more flexible and efficient Reduced search and transaction costs Lower menu costs (cost of changing prices) Dynamic pricing
Digital goods Goods that can be delivered over network E.g. Music tracks, video, e-books, software Cost for producing first unit is nearly total cost of product: Cost for producing additional units very low Impact of Internet on market for digital goods is revolutionary Video rental services Hollywood studios Record label companies Newspapers and magazines
Digital goods Goods that can be delivered over network E.g. Music tracks, video, e-books, software Cost for producing first unit is nearly total cost of product: Cost for producing additional units very low Impact of Internet on market for digital goods is revolutionary Video rental services Hollywood studios Record label companies Newspapers and magazines
Electronic Commerce
Three major e-commerce categories Business-to-consumer (B2C) E.g. Barnesandnoble.com Business-to-business (B2B) E.g. ChemConnect.com Consumer-to-consumer (C2C) E.g. eBay.com M-commerce Use of handheld wireless devices for purchasing goods and services from any location
M-Commerce
M-Commerce services and applications Popular for services that are time-critical, that appeal to people on the move, or that accomplish task more efficiently than other methods Especially popular in Europe, Japan, South Korea, and countries where fees for conventional Internet usage are very expensive Content and location-based services Example: checking train schedules, searching for local businesses
M-Commerce
Banking and financial services Example: Wireless alerts about changes in account information Wireless advertising Example: Wireless service providers including advertising for local restaurants, movie theaters on cell phones and Wi-Fi devices Games and entertainment Example: downloading ringtones, movie clips Wireless portals Feature content optimized for mobile devices to steer users to information most likely to need
M-Commerce
M-Commerce challenges Keyboards and screens tiny and awkward to use Data transfer speeds (2G networks) slow compared to Internet connections for PCs Time-based connection fees Limited memory and power supplies M-commerce will benefit from: 3G networks and other broadband services Standardized mobile payment systems
Electronic Commerce Payment Systems Types of electronic payment systems Digital credit card payment systems Extend functionality of credit cards for online shopping payments Provide mechanisms for authentication and transferring money from bank to seller Digital wallets Software stores credit card and other information to facilitate form completion and payment for goods on Web. Example: Google CheckOut
Electronic Commerce Payment Systems
Micropayment systems: For purchases of less than $10, such as downloads of individual articles or music clips Accumulated balance digital payment systems: Accumulate debit balance that users pay periodically on credit card or telephone bills Stored value payment systems: Allow instant online payments based on value stored in digital account (e.g. checking, credit card accounts May require use of digital wallet Example: Smart cards and devices like EZ Pass
Electronic Commerce Payment Systems Digital cash: Currency represented in electronic form that moves outside normal network of money. Not regulated and not legal tender Client software allows exchange of money with other e-cash user over Internet or with retailer accepting e-cash Peer-to-peer payment systems: Serve people who want to send money to vendors or individuals who are not set up to accept credit card payments Digital checking payment systems: Electronic check with secure digital signature Electronic billing presentment and payment systems: Used for paying routine monthly bills from bank or credit card accounts
Electronic Commerce Payment Systems
Digital payment systems for m-commerce Utilize any form of e-commerce payment systems Many payments are small purchases (soft drinks, mobile games, sports scores) requiring micropayment systems In Europe/Asia, mobile payments often added and presented on single bill such as mobile phone bill Virgin Mobile phone can dial Virgin Cola vending machine in London eBays PayPal Mobile Text2Buy service allows payments sent to mobile PayPal accounts via texting
Telecommunications and Networking in Todays Business World

Networking and communication trends Convergence of telephone and computer networks into single digital network using Internet standards Telecommunications providers offering multiple services: Data, cable, Internet, voice Both voice and data networks have become more powerful, more portable, and less expensive Broadband connections of 1Mbps Growth of wireless broadband platforms, wireless Internet access

Most basic computer network: Two or more interconnected computers Major hardware, software, transmission components used in simple network: Client computer Dedicated server computer Network interfaces (NICs) Network operating system (NOS) Hub or switch Routers: Device used to communicate with other networks

Components of a Simple Computer Network
Illustrated here is a very simple computer network, consisting of computers, a network operating system residing on a dedicated server computer, cable (wiring) connecting the devices, network interface cards (NIC), switches, and a router.

Networks in large companies may include Hundreds of local area networks (LANs) linked to firmwide corporate networks Multiple powerful servers Corporate Web site, corporate intranet, extranet Back-end systems for sales, financial, purchasing transactions Telephone network, videoconferencing Mobile WiFi network Key issue: Integration of disparate systems Alleviated as networks digitize, use Internet standards

Corporate Network Infrastructure
Todays corporate network infrastructure is a collection of many different networks from the public switched telephone network; to the Internet; to corporate local area networks linking workgroups, departments, or office floors.

Key digital networking technologies Client/server computing Clients linked through network controlled by server computer Packet switching Method of slicing digital messages into packets, sending packets along different communication paths as they become available, and then reassembling packets once they arrive at their destinations TCP/IP and connectivity standards Protocol: Set of rules and procedures governing transmission of information between two points in network TCP/IP: Suite of protocols

PacketPacket-Switched Networks and Packet Communications
Data are grouped into small packets, which are transmitted independently over various communications channels and reassembled at their final destination.

TCP/IP: Suite of protocols developed for U.S. Dept. of Defense Transmission Control Protocol (TCP): Handles movement of data between computers Internet Protocol (IP): Handles assembly, delivery, disassembly of packets
TCP/IP allows two computers of different hardware and software platforms to communicate Four-layer TCP/IP reference model 1. Application layer 2. Transport layer 3. Internet layer 4. Network interface layer
Communications Networks
Signals: digital vs. analog Analog: Represented by continuous waveform Digital: Discrete, binary waveform Data as strings of two states: one bit, zero bits / on-off electrical pulses Modem needed to translate between analog and digital Types of networks (geographic scope) Local area network (LAN) Campus area network (CAN) Metropolitan area network (MAN) Wide area network (WAN)
Functions of the Modem
A modem is a device that translates digital signals from a computer into analog form so that they can be transmitted over analog telephone lines. The modem also translates analog signals back into digital form for the receiving computer.
Ethernet: Dominant LAN standard at physical network level Types of networks (network architecture) Peer-to-peer or client/server Types of networks (topology) Star: All network components connect to single hub Bus: Signals travel in both directions along single transmission segment Most common Ethernet topology Ring: Connects network components in closed loop
Network Topologies
The three basic network topologies are the bus, star, and ring.
Physical transmission media Twisted wire Pairs of twisted copper wire Older type of transmission medium Most common LAN cabling: Cat5 cable Coaxial cable Single, thickly insulated copper wire Used for longer runs
Physical transmission media Fiber optics and optical networks Strands of clear glass fiber Used for Internet backbone Optical networks can boost capacity by using multiplexing (DWDM) - using different wave lengths to carry separate streams of data over same strand
Wireless transmission media Microwave systems High-frequency radio signals that follow straight line and require transmission stations or satellites to act as relay Cellular telephones Radio towers placed in adjacent geographic areas (cells)
Broadband network services and technologies Digital subscriber line (DSL) (1 Mbps 9 Mbps) Dedicated telephone network broadband Internet access Cable Internet connections (Up to 10 Mbps) Dedicated cable network broadband access T lines (1.5 Mbps to 45 Mbps) Dedicated lines for high-speed data transmission and Internet connection
The Internet
What is the Internet? Worlds most extensive public communication system, rivaling global telephone system Worlds largest implementation of: Client/server network Internetworking Internet service provider: Commercial organization with permanent connection to Internet Sells temporary connections to retail subscribers
The Internet
Internet addressing IP address Assigned to each computer on Internet 32-bit number: four strings of numbers ranging from 0 to 255 separated by periods E.g. 207.46.250.119 Messages decomposed into packets, each carrying destination IP address
The Internet
Domain Name System Converts IP addresses to domain names DNS servers maintain database of domain names mapped to IP addresses Domains: E.g. sales.google.com Root domain (.) Top-level domain (.gov, .com, .edu, etc.) Second-level domain (e.g. google) Third-level domains/hosts (computer1.sales.google.com)
The Internet
The Domain Name System
The Domain Name System is a hierarchical system with a root domain, top-level domains, second-level domains, and host computers at the third level.
The Internet
Internet governance Internet policies established by several professional organizations and government bodies IAB: Defines overall structure of Internet ICANN: Assigns IP addresses W3C: Sets programming standards, HTML standards for Web These organizations influence government agencies, network owners, ISPs, and software developers Internet must conform to local national law and technical infrastructure Internet paid for by connection services and fees
The Internet
Internet services Client/server technology Client: Software (e.g. Web browsers) on personal computers or information appliances Servers: Store data (e-mails, Web pages) Transfer data to clients Run services, implemented by one or more software programs, that clients can access E.g. Telnet, FTP, World Wide Web, newsgroups, chat
The Internet
Client/Server Computing on the Internet
Client computers running Web browser and other software can access an array of services on servers over the Internet. These services may all run on a single server or on multiple specialized servers.
The Internet
World Wide Web: Most popular Internet service Web pages: Formatted using Hypertext Markup Language (HTML) with embedded links that connect documents to one another and that also link pages to other objects, such as sound, video, or animation files Hypertext Transfer Protocol (HTTP): Communications standard used to transfer pages on Web Uniform resource locator (URL): Full address of web page, including protocol, domain name, directory path, and file name E.g.: http://www.megacorp.com/content/features/082602.html
The Internet
Web servers: Software for locating and managing stored Web pages, typically run on dedicated computers E.g. Apache HTTP Server, Microsoft IIS Web site: Collection of Web pages linked to home page Webmaster: Person in charge of organizations Web site Search engines: Allow finding information on Web of 50 billion+ pages nearly instantly Serve as major portals to Web Early search engines: Simple keyword indexes of visited pages Yahoo!: Originally organized favorite Web sites into directory lists
The Internet
Search engines: Google: Utilized new page ranking system and indexed combinations of words Search engine marketplace very competitive Search engines have become major shopping tools Search engine marketing: Search engine includes paid, sponsored links and advertisements in search results Fastest growing form of Internet advertising Shopping bots: Use intelligent agent software for searching Internet for shopping information
The Internet
Web 2.0 Second-generation interactive Internet-based services Mashups: Software services that mix and match content or software components to create something entirely new Blog: informal chronological Web site where subscribing individuals can publish stories, opinions, and links to other Web sites RSS (Rich Site Summary or Really Simple Syndication): Syndicates Web site content so it can be pulled from Web sites and fed automatically to subscribed users Wikis: Collaborative Web sites where visitors can add, delete, or modify content on site, including work of previous authors
The Internet
Intranets: Private networks using Internet standards Protected from public visits by firewalls Extranets: Limited area of intranet designed for access by authorized vendors and customers Technologies and tools for communication and e-business E-mail Chat, instant messaging Electronic discussions Groupware Electronic conferencing
The Internet
Internet telephony: Telephone voice transmission over Internet or private networks Voice over IP (VoIP): Uses Internet Protocol (IP) to deliver voice information using packet switching, avoiding tolls charged by local and long-distance telephone networks Fastest-growing form of telephone service in United States Can reduce communication and network management costs by 20 to 30 percent Flexible technology: Phones can be added or moved to different offices without rewiring or reconfiguring network
The Wireless Revolution

Wireless devices: Have become portable computing platforms Cell phones Laptops Handhelds Personal digital assistants (PDAs) E-mail handhelds Smart phones Cellular systems: Mobile phones enable millions to communicate and access Internet in countries where conventional phone or Internet service is expensive or unavailable. More mobile phones than PCs (3 billion vs 1 billion)
Thank You
Please forward your query To: Faculty email add. CC: manoj.amity@panafnet.com
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PAN African eNetwork Project

Master of Finance and Control Management Information System

Copyright Amity University

Copyright Amity University

Copyright Amity University

Copyright Amity University

Copyright Amity University

Copyright Amity University

Data, Information, and Systems

Data, Information, and Systems

Copyright Amity University

Data, Information, and Systems

Figure 1.1 Input-process-output

Data, Information, and Systems

Figure 1.2 Characteristics of useful information

Data, Information, and Systems

Copyright Amity University

Data, Information, and Systems

Figure 1.3 Several subsystems make up this corporate accounting system.

Data, Information, and Systems

Copyright Amity University

Data, Information, and Systems

Figure 1.5 Qualities of humans and computers that contribute to synergy

Data, Information, and Systems

Copyright Amity University

Data, Information, and Systems

Figure 1.6 Components of an information system

Copyright Amity University

Data, Information, and Systems

Why Study IS?

Computer Literacy Replacing Traditional Literacy

Ethical and Societal Issues

Copyright Amity University

Ethical and Societal Issues

Contemporary Approaches to Information Systems

Technical approach Behavioral approach Approach of this text: Sociotechnical systems

Copyright Amity University

TYPES OF INFORMATION SYSTEMS

KNOWLEDGE & DATA WORKERS

OPERATIONAL MANAGERS MANAGERS

MAJOR TYPES OF SYSTEMS

Copyright Amity University

TPS DATA FOR MIS APPLICATIONS

Copyright Amity University

DECISION SUPPORT SYSTEMS (DSS)

Copyright Amity University

Copyright Amity University

Copyright Amity University

INTERRELATIONSHIPS AMONG SYSTEMS

Organization of the IS Function

Copyright Amity University

IS and Business Strategy

Copyright Amity University

General Ways that IS Contributes to Strategic Business Objectives

Copyright Amity University

Competitive Forces Model

NEW MARKET ENTRANTS

SUBSTITUTE PRODUCTS & SERVICES

Copyright Amity University

Four Strategies Used With the Competitive Forces Model

Copyright Amity University

Competitive Forces Model and the Internet

Copyright Amity University