Information Systems in Business and Management

Information Systems in Business and Management

Information Systems in Business and Management

Information Systems in Business and Management

• Origins in a number of Disciplines– Management

– Operations Research

– Computer Science

– Accounting

– Organisation Development

• Taxonomy of Information Systems– Transaction Processing

– Management Reporting Systems

– Decision Support Systems

– Executive Information Systems

Five Main Resources

• Personnel

• Material

• Machines– (including facilities and energy)

• Money

• Information (and data)

PhysicalPhysical

ConceptualConceptual}

}

Management Information Systems

Information: The most valuable resource

How Resources are Managed

• Acquire

• Assemble, or prepare

• Maximize use

• Replace

Factors Stimulating Interest in Information Management

• Increasing complexity of business– International economy

– Worldwide competition

– Increasing complexity of technology

– Shrinking time frames

– Social constraints

• Improved computer capabilities

Who are the Users?

• Managers

• Supervisors & employees

• Persons & organizations in the firm’s environment

Where Managers are Found

• Various management levels

• Various functional areas of the firm

The Nature of ManagementThe Nature of Management

• Functional Activities– Accounting

– Marketing

– Production

– Personnel

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

Levels of Management (Anthony 1965)

Levels of Management (Anthony 1965)

Strategic Planning

Management control

Operational Control

Levels of Managers

• Strategic planning

• Management control

• Operational control

Strategic PlanningStrategic Planning

• Relates to the Organisation as a Whole

• Occurs on an Irregular Basis

• Relies on External Information

• An Exercise in Applied Economics

• Small Numbers Involved

• Provides the Framework for Mgt Control

Management ControlManagement Control

• Elements

•   Process  

• Managers  

• Goals  

• Efficiency and Effectiveness

• Characteristics–   Focus on Responsibility Centres

–   General Types of Information

–   Comprehensive

–   Expressed in Financial Terms

–   Defined Patterns and Timetables

–   Coordinated Integrated System

Operational ControlOperational Control

• Restricted to Narrowly Defined Activities

• Occurs in the Context of Mgt Control

• Based on a Financial Structure

• Relates to Individual Transactions

• Requires a Formal Model of Operation

The Influence of Management Level on

Information Source

Strategic planning levelStrategic planning level

Management control levelManagement control level

Operational control levelOperational control level InternalInternal

EnvironmentalEnvironmental

The Influence of Management Level on

Information Form

Strategic planning levelStrategic planning level

Management control levelManagement control level

Operational control levelOperational control level DetailDetail

SummarySummary

Managers Can Be Found on All Levels and in All

Functional Areas of the Firm

FinanceFunction

Human ResourcesFunction

InformationServicesFunction

ManufacturingFunction

MarketingFunction

Strategic planning levelStrategic planning level

Management Control LevelManagement Control Level

Operational Control Operational Control LevelLevel

Managerial Roles Managerial Roles

• Fayol

• Mintzberg

• Stewart

Planning , Staffing, Controlling etc

What Managers do --Fayol’s Functions

Strategic Planning Level

Management Control Level

Operational Control Level

Plan

Control

Organize

Direct

Staff

Organize

Staff

Direct

Plan

Control

Direct

Staff

Plan

Control

Organize

What Managers do -- Mintzberg’s Roles

• Interpersonal roles– Figurehead

– Leader

– Liaison

• Informational roles– Monitor

– Disseminator

– Spokesperson

Decisional rolesDecisional roles– EntrepreneurEntrepreneur– Disturbance handlerDisturbance handler– Resource allocatorResource allocator– NegotiatorNegotiator

Problem Solving Information Comes in Many Forms

Co

mp

ute

r R

ep

ort

sC

om

pu

ter

Re

po

rts

No

nc

om

pu

ter

No

nc

om

pu

ter

rep

ort

sre

po

rts

Ele

ctr

on

ic

Ele

ctr

on

ic

ma

ilm

ail P

eri

od

ica

lP

eri

od

ica

lss T

ele

ph

on

eT

ele

ph

on

eProblem Problem SolvingSolving

Written MediaWritten Media Oral MediaOral Media

Internal SourcesInternal Sources External SourcesExternal Sources

Sc

he

du

led

Me

eti

ng

sS

ch

ed

ule

d M

ee

tin

gs

Un

sc

he

du

led

Me

eti

ng

sU

ns

ch

ed

ule

d M

ee

tin

gs

Vo

ice

Ma

ilV

oic

e M

ail

To

urs

To

urs

Bu

sin

es

s M

ea

lsB

us

ine

ss

Me

als

Le

tte

rs &

Me

mo

sL

ett

ers

& M

em

os

Management Skills

• Communications

• Problem solvingHow can an How can an information information specialist help?specialist help?}

Transaction Processing Systems

Transaction Processing Systems

• A focus on data storage processing and flows at the operational ;

• Efficient Transaction Processing

• Automation of High Volume Routine Tasks

• Minimum Participation by Users

• Summary reports to Management

• Ryanair, EBay, Google

Management Reporting Systems

Management Reporting Systems

• An Information Focus aimed at Middle Managers

• Structured Information Flow

• Inquiry and Report Generation off a Database

• Planning and Control

• Summary Details

• Rhythmic in Nature NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

Decision Support Systems

• Support for Managerial Decision Making

• Evolved from Experiences with M.I.S.

• Aimed at the less well structured/Underspecified problems

• Combine modelling and Analysis Capability

• Flexibility and Adaptability

Executive Information SystemsExecutive Information Systems

• Structured Automated Tracking Systems for Executives

• Designed to Support Top Executives

• Characteristics– Ease of use - Touch Screens etc

– Data Cube

– External Information

• Examples in Ireland– Bank of Ireland, AIB

– Telecom Eireann

– ESB

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

A Systems View

• Business operations are embedded within a larger environmental setting

Evolution of the CBIS

• Data (EDP)

• MIS 1964– IBM promoted the concept as a means of selling disk files and

terminals

• DSS 1971– Our distinction:

» MIS: Organizational/group - general

» DSS: Individual - specific

• 1980’s/1990/s EIS

• 1990’s/2000’s ERP systems (back to 1964?)

The CBIS Model

Computer-based Information System

(CBIS)

Accounting Information System

ManagementInformation System

Decision SupportSystems

The VirtualOffice

Knowledge-based Systems

DecisionsDecisions

ProbleProblemm

InformationInformation

ProblemProblemSolutionSolution

Information Services

Information specialists have full-time responsibility for

developing and maintaining computer-based systems

Traditional Communications Chain

DatabaseAdministrator

UserUserSystemsAnalyst

Programmer Operator ComputerComputer

NetworkSpecialist

End-User Computing

• End-user computing – Development of all or part of applications

• Stimulants to EUC– Increased computer literacy

– IS backlog

– Low-cost hardware (the PC)

– Prewritten software (electronic spreadsheets)

IS and EUCThe End-User Computing Communication Chain

User Computer

InformationSpecialists

SupportSupport

CommunicationCommunication

Justifying the CBIS

• Justify in the same manner as any other large investment

• Economic– Cost reduction

– Reduced inventory investment

– Increased productivity (CAD/CAM)

• Noneconomic– Perceived value

Achieving the CBIS

Roles Played by the Manager

and by the Information Specialist

Implementation

Phase Manager

Information Specialist

Control

Control

Control

Control

Planning

Analysis

Design

Use

Define problem Support

System Study

Design system

Implement system

Make available

Using Information Technology for Competitive Advantage

MANAGEMENT INFORMATION SYSTEMS

Suppliers The firm Customers

Labor unions

Stockholders or owners

Society

The Firm’s EnvironmentThe Firm’s Environment

FinancialCommunity

Government GlobalCommunity

Suppliers TheFirm

Laborunions

Stockholders or owners

Customers

Competitors

A Value ChainA Value Chain

Firm Infrastructure

Human resource management

Technology development

Procurement

Inboundlogistics

Operations Outboundlogistics

Marketingandsales

Service

Margin

Mar

gin

SupportActivities

Primary Activities

Channelvaluechains

Suppliervaluechains

Buyervaluechains

Firmvaluechain

A Value SystemA Value System

The Information Resources

Facilities

Software DatabaseHardware

InformationSpecialists

Users

Information

The Future

The bright side:

Information is getting more important

The dark side:

Trend to end-user computing is making information management more difficult

Strategicplanning for

information resources

Strategicplanning for marketingresources

Strategicplanning for

manufacturingresources

Strategicplanning for

human resources

Strategic planning for

financial resources

The Functional Areas Should The Functional Areas Should Cooperate Cooperate

in Developing Their Strategic in Developing Their Strategic PlansPlans

Strategic Planning for Strategic Planning for Information ResourcesInformation Resources

Business strategy

InformationresourcesandISstrategy

Influence on BusinessStrategy

Influence onInformation Resources

IRM - Required Elements

• A recognition that competitive advantage can be achieved by means of superior information resources

• A recognition that information services is a major functional area

• A recognition that the CIO is a top-level executive

IRM-Required Ingredients (cont.)

• A consideration of the firm’s information resources when engaging in strategic planning

• A formal strategic plan for information resources

• A strategy for stimulating and managing end-user computing

The firm’s executivesThe firm’s executivesCIOCIO Other executivesOther executivesOther executivesOther executives

Central computingCentral computing resourcesresources

Disbursed computingDisbursed computingresourcesresources

FUNCTIONAL AREASFUNCTIONAL AREAS

User’s engaged in User’s engaged in end-user computingend-user computing

Other usersOther users

ENVIRONMENTAL INFLUENCESENVIRONMENTAL INFLUENCES

Internal influences Firm’s strategic plan

STRATEGIC PLAN FOR INFORMATION RESOURCESSTRATEGIC PLAN FOR INFORMATION RESOURCES

DATA AND INFORMATIONDATA AND INFORMATION

The IRM The IRM ModelModel

Informationservices

Humanresources

Manufacturing MarketingFinance

The environment of the firm

A Sales Report of Fast A Sales Report of Fast Moving ProductsMoving Products

Year-to-Date % of TotalItem Number Item Description Sales Volume Year-to-Date Sales

400293 BRAKE PIPE $1,702.93 .068 319421 DOOR HANDLE GASKET 1,624.00 .065 786402 CLUTCH DRIVEN PLATE 1,403.97 .056 190796 CARPET SNAP 1,102.00 .044 001007 SPARK PLUG 1,010.79 .040 739792 HOSE CLIP 949.20 .038 722210 RUBBER PLUG 946.73 .038 410615 UPPER DOOR HINGE 938.40 .038 963214 REAR TUBE SHOCK 922.19 .037 000123 NEEDLE VALVE 919.26 .037

Totals $11,519.47 .461

Information is Gathered from All of the Physical System Elements

ManagementManagement

TransformationTransformationProcessProcess

OutputOutputResourcesResources

Input Input ResourcesResources

InformationInformation InformationInformation

Supplier Analysis ReportSupplier Analysis Report

Item Number: Item Number: 410615410615Item Description: Item Description: Upper Door HingeUpper Door Hinge

SUPPLIERSUPPLIER LASTLAST UNITUNIT DAYS TO PCT.DAYS TO PCT.NUMBER NAMENUMBER NAME DATEDATE P.O. # QTY.P.O. # QTY. PRICEPRICE RECEIPT REJECTSRECEIPT REJECTS

30623062 CARTERCARTER 7/127/12 1048-10 3601048-10 360 $8.75$8.75 12 .00 12 .00 & SONS& SONS

41894189 PACIFICPACIFIC 4/134/13 962-10 350 9.10 08 .02 962-10 350 9.10 08 .02 MACHININGMACHINING

0140 0140 A.B.A.B. 1/041/04 550-10 550-10 350 8.12 350 8.12 03 03 .00 .00 MERRILMERRIL

21112111 BAY AREA BAY AREA 8/198/19 1196-10 1196-10 360 360 11.60 11.60 19 .04 19 .04

A Job Status Report Provides InformationA Job Status Report Provides Informationabout the Transformation Processabout the Transformation Process

Job Number: Job Number: 84-18284-182Customer: Customer: Wankel AutomotiveWankel Automotive

CURRENT STATUSCURRENT STATUSStep 4-weld supports to frameStep 4-weld supports to frameDepartment 410-WeldingDepartment 410-WeldingDate and Time Begun-10/8; 10:15ADate and Time Begun-10/8; 10:15AProjected Job Completion-10/14; 9:30AProjected Job Completion-10/14; 9:30A

NEXT PROCESSNEXT PROCESS

•Step 5-paint frameStep 5-paint frame•Department 632-PaintDepartment 632-Paint

Dimensions of Information

• Relevancy

• Accuracy

• Timeliness

• Completeness

INFORMATION SYSTEMINFORMATION SYSTEM

INFORMATION INFORMATION

SYSTEMSYSTEM

BUSINESS BUSINESS

CHALLENGECHALLENGE

BUSINESS BUSINESS

SOLUTIONSSOLUTIONS

MANAGEMENTMANAGEMENT

INFORMATIONINFORMATION

TECHNOLOGYTECHNOLOGY

ORGANIZATIONORGANIZATION

3.2

MANAGING CHANGEMANAGING CHANGE

FITTING TECHNOLOGY TO FITTING TECHNOLOGY TO ORGANIZATIONORGANIZATION

LIMITS OF TECHNOLOGYLIMITS OF TECHNOLOGY