Welcome to this session on

MIS-Management Information SystemCourse Title: MIS-5205

CH-1: Managing the Digital Firm

Dr. Engr. Jnan Ranjan Sil, PHFBSc.Engg(civil), MBA(HRM),

Doctor of Business Administration, PhD in Civil Engg.

Objectives of course :• The main objective of this course is to acquaint the

students with the information system by the study of information and its impact on the individuals, the organizations, and the society.

• Information system knowledge is essential for creating competitive firms, managing global corporations, adding business value, and providing useful products and services to customers.

• How can internet technology support e-business and supply chain management?

Contd..

• What computer processing and storage capacity does an organization need to handle its information and business transactions?

• How should we manage our firm’s hardware and software assets?

• How can students see clearly and how can they use this knowledge in their jobs?

CH-1: MANAGING THE DIGITAL FIRMObjectives:As a manager, you will need to know how information systems can

make business more competitive, efficient, and profitable. You will be able to answer the following questions:

1. What is the role of information systems in today’s competitive business environment?

2. What exactly is an information system? What do managers need to know about information systems?

3. How are information systems transferring organizations and management?

4. How have the Internet and Internet technology transformed business?

5. What are the major management challenges to building and using information systems?

What do you meant by MIS?

• MIS is the study of information and its impact on the individuals, the organizations, and the society.

• It is a system that creates, posses, stores, and generates information within and outside an organization to take decision quickly and accurately.

• A system is a collection of parts that works together to achieve a common goal.

What is an information system?

• An information system is a set of interrelated components that collect, process, store, and distribute information to support decision making, coordination, and control in an organization.

• In addition to supporting decision making, coordination, and control, information systems may also help managers and workers analyze problems, visualize complex subjects, and create new products.

Q. What are the Functions of an information system?The functions of information system are –• Inputting• Processing – classifying, arrange, calculate• Outputting• Feedback Q. Why information system?• Extending the reach to far away location• Offering new products and services• Reshaping jobs and work flows• Bringing dynamism in business operations.

Data and Information:

• Data: Data means streams of raw facts representing events occurring in organizations or physical environment before they have been organized and arranged into a form that people can understand and use.

• Information: It refers to data that have been shaved into a form that is meaningful and useful to human beings.

Functions of information system includes- Input, processing, output and feedback: • Input: Input refers to capture or collection of

raw data from within the organization or from its external environment for processing in an information system.

• Processing: It refers to the process of conversion, manipulation, and analysis of raw input into a form that is more meaningful to humans information.

Contd..

• Outputting: Output is the distribution of processed information to the people who will use it or to the activities for which it will be used.

• Feedback: It refers to output that is returned to the appropriate members of the organization to help them evaluate or correct input.

CBIS- Computer Based Information System:

• Computer based information systems, refers to information systems that rely on computer hardware and software for processing and disseminating information.

• CBIS : It’s a – formal system fixed definitions of data and proceduresCollecting, storing, processing, disseminating,

and using data.

What is a computer ?

Computer is a machine that can receive or accept data, can process, can give processed result or output and can store data or information for future use.

Sound

Text

Graphics

Input Process Output

Store

Data

Hardware

The physical devices that make up the computer are called hardware. Hardware is any part of the computer you can touch. A computer’s hardware consists of inter-connected electronic devices that you can use to control the computer’s operation, input, and output.

The generic term device refers to any piece of hardware.

RAM

Pen Drive

Floppy DiskHard Disk

CD Drive NIC Card

Processor

Modem

INPUT DEVICE CPU OUTPUT DEVICE

MOUSE, KEYBOARDSCANNER

PROCESSOR MONITORPRINTER

COMPUTER

These are the Hardware or physical parts of a computer

Primary Memory

Secondary Memory

PRIMARY MEMORY:Random Access Memory (RAM)

SECONDARY MEMORY: HARD DISKFLOPPY DISKCD ROMPEN DRIVE ETC.

MEMORY Unit:210 bytes = 1 Kilobyte220 bytes = 1 Megabyte230 bytes = 1 Gigabyte

APPLICATIONS SOFTWARE

SYSTEM SOFTWARE

Software

Software is a set of instructions that makes the computer perform tasks. In other words, software tells the computer what to do. Some programs exist primarily for the computer’s use, helping it perform tasks and manage its own resources. Other types of programs exist for the users, enabling him or her to perform tasks such as creating documents.

APPLICATION PACKAGES EXAMPLE : MS WORD, MS EXCEL, MS ACCESS, POWERPOINT, ETC.

CUSTOMIZED SOFTWAREEXAMPLE : PERSONNEL MANAGEMENT SOFTWARE,

BANKING SOFTWARE, ETC.

APPLICATION SOFTWARE

EX. M.S OFFICE

EX. BANKING SOFTWARE

SYSTEM SOFTWARE

OPERATING SYSTEMS EXAMPLE: DOS, WINDOWS 95, 98, 2000, XP, LINUX

Data management technology, consists of the software governing the organization of data on physical storage media.• Networking and telecommunications technology,

consisting of both physical devices and software, links the various pieces of hardware and transfers data from one physical location to another.

• Computers and communications equipment can be connected in networks for sharing-voice, data, images, sound, and video.

• A network links two or more computers to share data or resources, such as a printer.

• Information technology(IT), consists of all the hardware and software that a firm needs to use in order to achieve its business objectives. • This includes not only computer machines, disk drives,

and handheld mobile devices, but also software, such as the windows or Linux operating systems, the computer programs that can be found in a typical large firm.

What is ICT ?"ICT include the whole range of technologies designed to access, process and

transmit information in regard to text, sound, data and pictures. ICT encompass the full range from traditional widely used devices such as radios, telephones or televisions to more sophisticated tools like computers or the Internet."[i]

• DEFINING ICT: Information and Communication Technology includes the whole range of technologies designed to access, process and transmit information in regard to text, sound, data and pictures. ICT encompasses the full range from traditional widely used devices such as radios, telephone or television to more sophisticated tools like computer or the internet. We can connect people / customers by digitally enable – through communication technologies.

• ICT plays an indispensable role in promoting openness, accessibility, accountability, connectivity, democracy and decentralization- all the “soft” qualities so essential for effective social, economic, and political development.

“Digital Bangladesh”.

• Our present Government agenda is “Digital Bangladesh”. To overcome this issue or agenda there are two major problems or obstacles – one is education and other is electricity. Bangladesh is a developing country. Our literacy rate is only about 60%. We have much deficiency in electricity. Without education and supply of electricity, the country could not be developed by other ways. To build ‘digital Bangladesh’ electricity supply is our main obstacle. Electricity is our burning issue. In rural area it is too big crisis. Urgent need of electricity production is first then its proper distribution is also necessary. The Government of Bangladesh aims at providing electricity to its entire rural population by 2020 to help boost social development and economic growth.

Contd..

• We know that Information and Communications Technologies (ICTs) play a key role in assisting developing countries in driving economic growth and reaching the Millennium Development Goals, by promoting a more efficient functioning of markets, creating new income-generating opportunities, making the delivery of public services more effective, transparent and efficient, connecting them to the world economy and overall contributing to the social and economic transformation of entire countries. This kind of transformation is even more necessary for rural and isolated areas, where widespread access to ICTs and effective use of these technologies for productive purposes, can make a tremendous difference in development outcomes

Contd..

• . Use of ICT by the government in the education, health care, and environment sectors can also prove beneficial. In education, it can increase literacy rates significantly. Web-based education and e-learning have emerged as handy tools for distance learning. Both video and computer conferencing have made it possible for students in remote rural regions to have access to teachers anywhere in the world. Now my point is - improve rural health care by the use of ICT. We see at present health care system is done by traditional way. People come physically to the health care centre, hospital or clinic for treatment as a patient. Health workers also visit physically to the patient at patient’s house.

Why ICTs in Public Administration ?

ICTs have three basic change potentials within the context of governance:[i] • Support- ICTs can assist with existing tasks and processes that involve complex

decision-making, communication and decision implementation. • Supplant- ICTs can automate tedious tasks done by humans which involve

accepting, storing, processing, outputting or transmitting information. • Innovate- ICTs can support innovating new tasks and processes that did not

exist before.

Except many other applications, ICT is considered both as an instrument of citizen empowerment and public sector reform[ii].

[i] Bhavya Lal, "Information and Communication Technologies for Improved Governance" (Cambridge: Abt Associates Inc., 1999), pp. 8-9. Available at: http://www.abtassoc.com/reports/ict.pdf[ii] Ibid., p. 8.

Change in Public

Administration

Innovative use of

ICTs

Innovative uses of ICTs can improve and facilitate governmental functions and activities

Automate PublicAdministration

Better Citizen Services

Digital Divide:The uneven global distribution of access to the Internet has highlighted a digital divide that separates individuals who are able to access computers and the Internet from those who have no opportunity to do so. Kofi Annan, ex- Secretary-General of the United Nations, has said: The new information and communications technologies are among the driving forces of globalization. They are bringing people together, and bringing decision makers unprecedented new tools for development. At the same time, however, the gap between information ‘haves’ and ‘have-nots’ is widening, and there is a real danger that the world’s poor will be excluded from the emerging knowledge-based global economy.It is necessary to minimize the gap between those who not able to ICT and it is our target.

Q. What are the changes occurred in the business world in the recent past?

The changes occurred are the following –• Globalization• Industrial Economics• Transformation of the enterprise1.Globalization:• Management & control in a global market place.• Competition in world markets• Global work groups• Global delivery systems.

2. Industrial Economics:

• Knowledge and information based economics• Productivity• Knowledge as an asset• Time based competition• Shorter product life• Turbulent environment• Limited employee knowledge base.

3. Transformation of enterprise:

• Flattening• Decentralization• Flexibility• Location independence• Low transaction cost• Empowerment & collaborative work.

Q. What are the management challenges?• Designing competitive & efficient systems• Understanding system requirements of global

business environment• Creating information architecture that

supports organizational goals• Determining business value of information

systems• Designing systems people can control,

understand & use in a socially ethically responsible manner.

Q. What are the major business functions?

Major business functions are ---• Sales & marketing• Manufacturing• Finance• Accounting• Human Resources• Procurement

Q. What are the contemporary approaches to information system?There are two approaches to information

systems:1.Technical Approaches:• Management Science• Computer Science• Operational research2. Behavioral Approaches:• Psychology• Political Science• Sociology

Q. What can you do on the internet?

• Communication & collaboration• Access information• Participate in discussions• Obtain information• Entertain• Transact business

The Emerging Digital Firm:

What is meant by digital firm?• A digital firm is one where nearly all of the

organizations significant business relationships with customers, suppliers, and employees are digitally enabled and modeled. Core business processes are accomplished through digital networks spanning the entire organizations.

Q. What major systems that help define the digital firm?

There are four major systems ---• Supply chain management system( To automate the

relationship between suppliers and the firm)• Customer relationship management system( To develop

a coherent, integrated view of all the relationships a firm maintains with its customers)

• Enterprise management system( To create an integrated enterprise-wise system to coordinate key internal processes of the firm)

• Knowledge management system( To create, capture, store, and disseminate firm expertise and knowledge)

Emergence of digital firm:• Digitally-enabled relationships with

customers, suppliers, and employers• Core-business processes via digital networks• Digital management of key assets• Rapid sensing & responding to environmental

change.

Q. What do meant by e-government?E-government: It refers to the application of the internet and networking technologies to digitally enable government and public sector agencies relationships with citizens, businesses, and other arms of government.

• In addition to improving delivery of government services, e-government can make government operations more efficient and also empower citizens by giving them easier access to information and ability to network electronically with other citizens.

The digital firm:• Electronic commerce(E-Commerce)• Electronic Business(E-Business)• Electronic Market( E-Market)E- Commerce: This refers to the process of

buying and selling goods and services electronically involving transactions using internet, networks and other digital technologies.

The digital firm:

• E-Business: It is the process of buying and selling goods and services electronically with computerized business transactions using the internet, network, and other digital technologies.

• E-Business includes e-commerce as well as processes for the internet management of the firm and for coordination with suppliers and other business partners.

E-Business:( E-business builds private and secure network.) • Internet: It is an international network based on

World Wide Web technology and standards.• Intranet: It is an internal network based on

internet and www.• Extranet: This refers to extension of intranet to

authorized external users.• E-mail, web documents, and group software :

These extend effective communication & control.

Q. How does E-commerce facilitate commerce?

• Internet links buyers and sellers• Lowers transaction costs• Facilitates advertising, buying and exchanging

goods and services world wide.• Increase business to business transactions

Q. What are the challenges of information system?

There are five key challenges confronting managers:1. The strategic business challenge: how can business use

information technology to become competitive, effective, and digitally enabled?

2. The globalization challenge: how can firms understand the business and systems requirements of a global economic environment?

3. The information architecture and infrastructure challenge: how can organizations develop an information architecture and information technology infrastructure that can support their goals when business conditions and technologies so rapidly?

Contd..

4. The information systems investment challenge:(How can organizations determine the business

value of information systems?) 5. The responsibility and control challenge:(How

can organizations ensure that information systems are used in an ethically and socially responsible manner?)

Q. What are the positive impact of information systems?• Faster calculations and processing of paper work.• Quick information on purchase patterns and

preferences of customers.• Enhanced efficiency through services such as

automated teller machines, telephone systems, computer controlled airplanes and air terminals.

• New medical advances in surgery, radiology, and patient monitoring.

• Quick dissemination of information instantly to millions of people across the world.

Q. What are the negative impacts of information system?

• Elimination of jobs( unemployment),• Violating privacy through collecting personal

details.• Shut down businesses,• Repetitive injury ( techno-stress and other

health problems)• Distribution of illegal copies of software,

books, article, and other intellectual property.

Q. What is meant by digital market?

• A digital market refers to an information system that links together many buyers and sellers to exchange information, products, services, and payments. Buyers and sellers can complete purchase and sale transactions digitally, regardless of their option.

Emerging Digital Firm:Electronic Business

Factories: Electronic Commerce:• Just-in-time production Customers:• Continuous inventory replenishment- On-line marketing• Production planning - On-line Sales

- Built-to-order productsRemote Offices and work groups: - Customer service

- Communicate plans and policies - Sales force automation - Group Collaboration

- Electronic Communication Suppliers: - Scheduling - Procurement

Business partners: - Supply chain Mgt.- Joint design- Outsourcing

THANKTHANKSS