KK-MIS-Chapter000000000000000000001.pptx

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1. In the Name of Allah, The Most Beneficent, The Most Merciful

2. Welcome to Lecture 01 & 02 on By: Khurram Khan Chapter 01 (Management Information Systems-BM) Timings: 8:30 am to 9:50 am

3. Course Text Book

4. What’s the Difference ? Data: R aw facts or Unlink things. i.e. Symbols, Letters, Numbers, Drawings Information: Data that can be processed to be useful Answers “Who", “What", “Where", and “When“ Knowledge: Application of data and information Provides basis of what you can, will,  would, should, or might do with information . Wisdom: Choices to take Decisions on the bases of knowledge. Reference: http://www.systems-thinking.org/dikw/dikw.htm

5. Data vs Information Data Information Knowledge Wisdom Meaning Data is raw, unorganized facts that need to be processed. Data can be something simple and seemingly random and useless until it is organized. When data is processed, organized, structured or presented in a given context so as to make it useful, it is called information. Knowledge is information of which someone is aware. Knowledge is also used to mean the confident understanding of a subject, potentially with the ability to use it for a specific purpose. Wisdom is the ability to make correct judgments and decisions. It is an intangible  quality  gained through our experiences in life. Example/ Time Each student's test score is one piece of data. The average score of a class or of the entire school is information that can be derived from the given data. Allows for change in response to new  information  or analyses. Seeks to always improve. Timeless. Wisdom is "Who we are" vs. "What we do" Wisdom governs choice, pursuit of knowledge, communication and relationships. Etymology/ Source "Data" comes from a singular Latin word, datum, which originally meant "something given." Its early usage dates back to the 1600s. Over time "data" has become the plural of datum. "Information" is an older word that dates back to the 1300s and has Old French and Middle English origins. It has always referred to "the act of informing, " usually in regard to education, instruction, or other knowledge communication Learning, education,  science , reflection, reasoned and logical thought. Self. Intuition. Our personal experience. Wisdom defines and refines our character. "Character is simply who we are and is the persona and identity of everything we do."

6. Relationship between Information Knowledge Apple (Information) Calories- value (Knowledge)

7. Data, Information, Knowledge, Wisdom (DIKW Hierarchy)

8. MANAGEMENT INFORMATION SYSTEMS Chapter 1

9. Traffic System (Organized, Not Organized)

10. Systems in Our Daily Lives Process/Work System Name If Not work (Losses) If worked (Benefits) Sr. No. 1 Transport Traffic System Accidents, Time Loss, Pollution, Frustration Safety, Timely Arrivals, No Pollution, Joy Ride 2 Managing Law & Order Police System Loss of Life, Money, Peace & Respect. Economic Destruction Safety, Security & Peace, Social Political Economic Prosperity 3 Literacy Uplifting Education System Social, Economic Degradation, Cause of Destruction, & Frustration Intellectual Individuals and prosperous Society

11. Information System It is a system, that manages and maintains the flow of information in the Organization. Information System

12. Information System in Business Info. System is now part of our daily business activities as Accounting , Finance , Operations , Marketing , Human Resource , or any other major business function.

13. Importance of IS Info. Systems are vital components of successful businesses and organizations (It helps to Survive and Prosper business) helps in launching new Products and Services helps improve the efficiency and effectiveness of business processes , managerial decision making , and workgroup collaborations .

14. Importance of IS It helps strengthens companies competitive positions in rapidly changing marketplaces. helps to adapt to global changing trends Future will be based on Knowledge economy and Knowledge based societies.

15. What is Information Technology? Any form of technology used by people to handle “information” is called IT.

16. Levels of Business Automation 1. Documentation Levels (Data Collection and Recording Levels) 2. Computerization Levels (e-Documentation Levels) 3. Automation Levels (Software Database Levels) 4. Integration Levels (Data Sharing Levels) 5. Intelligence Levels (Analysis & Decision Making Levels)

17. Levels of Business Automation Full Documentation (All activities of business are documented on papers, e.g. Small Bakery, recording Inventory, Production, Sales & Purchase records) Partial Documentation (Some activities are documented on papers e.g. Small Kiriana shop) No Documentation (Activities done without documentation & Hap Hazard way e.g. Pan shop) 1. Documentation Levels (Data Collection and Recording Levels)

18. Levels of Business Automation Full Computerization (All data is in Soft form, i.e. xls, doc, pdf etc., No Software or Database present e.g. Small Tuition Center) Partial Computerization (Some data is in Soft form – e.g. Cash Register at Garment Shop) 2. Computerization Levels (e-Documentation Levels)

19. Levels of Business Automation Full Automation (Software Systems, Collects, Stores, Process data and Generates Reports, [Departments maybe working in Silos]) Partial Automation (Some Database for Batch processing (Payroll, Production)+ xls, docs, pdf) 3. Automation Levels (Software Database Levels)

20. Levels of Business Automation Fully Integrated Systems (Centralized data, accessed and share by every business unit, Data warehouse, Paperless Environment. [ERP System] ) Partial Integrated Systems (Systems Share some data with other departments, HR<-> Finance  Payroll, Car Loan Installment ) 4. Integration Levels (Data Sharing Levels) HR Dept. Fin. Dept. Some Info. Sharing

21. Levels of Business Automation Self-Sustaining Business (Automated Decision Making, Growth and Auto Expansion) Business Intelligence (Creating Operational Efficiency through Problem Identification, Drill down for problem, Trouble-shooting, Semi Automated Decisions through Graphs, Charts in Dashboards) [Video: Automated Hotel in China] Business Analytics (Establish Best Practices through Analytical Cubes, Data Mining to reveals Hidden Patterns through reports) 5. Intelligence Levels (Analysis & Decision Making Levels)

22. Why Automate Business Processes? For Sustaining Business To create Value for Customers To Create Competitive Advantages For Reducing operational cost For Efficient Managing of Resources For Expanding Business Becoming an Enterprise Business

23. “System” (set of interconnected , interrelated & interdependent components forming an integrated whole ) If things are unpredictably changing, then it is not a system.

24. “ System” interconnected , interrelated & interdependent components forming an integrated whole

25. “ System” a Pocket Watch interconnected , interrelated & interdependent components forming an integrated whole

26. “ System”

27. “ Systems”

28. System (in Business Terms) It is defined as a set of interrelated components , with a clearly defined boundary , working together to achieve a common set of objectives by accepting inputs and producing outputs in an organized transformation process . Everything you can think of, is a system One system can be made up of other systems (sub-systems) or be part of a bigger system.

29. Components of a System Three Components of a System Input : involves capturing and assembling elements that enter the system to be processed (Data input through various devices) Process: involves manipulation of data that convert input(data) into output (useful info.) . (may involves mathematical calculations or filtering, sorting adding, editing or deleting data). Output : involves transferring elements that have been produced by a transformation process to their ultimate destination . (Useful info to help achieving goals).

30. Additional Components of a System Feedback : is data about the performance of a system (data about sales performance are feedback to a sales manager) Control: involves monitoring and evaluating feedback to determine whether a system is moving toward the achievement of its goal. Example: a sales manager exercises control when reassigning salespersons to new sales territories after evaluating feedback about their sales performance

31. Manufacturing Process Input of Raw Materials Output of Finished Products Environment Other Systems Control by Management Control Signals Control Signals Feedback Signals Feedback Signals System Boundary

32. Example Examples: A manufacturing system accepts raw materials as input and produces finished goods as output. An information system is a system that accepts resources (data) as input and processes them into products (information) as output. A business organization is a system in which human and economic resources are transformed by various business processes into goods and services.

33. Characteristics of a Useful Data Readable & Understandable ( Making sense out of it) Relevant ( Related to problem , Goals) Complete( No missing data ) Accurate ( correct & exact ) Current ( Latest, up to date ) Economical ( Low Cost ) Actionable ( easy to take action on )

34. Attributes of Information Quality

35. Types of Systems Open system: is a system that interacts with other systems in its environment. the system exchanges inputs into outputs with its environment. Example: Organizations are examples of open systems because they interface and interact with other systems in their environment. (Figure 1.18)

36. Types of Systems Close system: is a system that does not interact with other systems in its environment. the system does not exchanges inputs and outputs with its environment. e.g. a clock

37. Page No. 30

38. Types of Systems Stable/Static: System that has gone very little changes over time. Output of system depends only on current Inputs of system. Output does not change if Input is constant. Dynamic : System that has gone various changes over time. Output depends upon current and previous inputs. Output changes with time even if Input remains constant.

39. Types of Systems Adaptive System: a system that has the ability to change itself or its environment to survive. Non-Adaptive: a system that doesn't have the ability to change itself or its environment to survive. Permanent: System that exist for a very long time . e.g. ERPs, CRM Temporary: System that exist for a only a short period of time. Project Systems, Audit Support Systems

40. Types of Systems Cybernetic System: (Adding Feedback & Control to input, process, output ) It becomes: self-monitoring and self-regulating (controlling). e.g. Home Cooling System

41. Home Cooling System

42. What is Information Systems? Information System (IS): can be defined as any organized combination of - people, - hardware, - software, - communications networks, - data resources, and - policies and procedures that - stores, - retrieves, - transforms, and - disseminates (distributes) information in an organization. Components of Information Systems

43. Input of Data Resources Processing Data Output of Information Products Control of System Performance Storage of Data Resources

44. Examples of Information Systems IS Examples: - Card Catalogs in a Library - Book Bag, Day Planner, Note Books, Files and folders - Cash Register at Restaurants - Accounting Ledgers - eMail , Databases, SAP etc. (these IS records daily transactions )

45. Manufacturing and Production Engineering & Research Accounting, Finance, and Management Suppliers and Other Business Partners Procurement, Distribution, and Logistics Advertising Sales Customer Service Consumer and Business Customers Company Boundary Intranets The Internet Extranets Extranets

46. Enterprise Resource Planning (ERP) ERP

47. Framework of Major IS Areas Behavioral, Technical, Business and Managerial concepts, Basic Info Systems Major concepts, Development and Management Issues of IT-users, Hw / Sw , Data & Networks Using IT Apps as Competitive Advantage, Automate: Accounting, finance, operations management, marketing, human resource management To Plan, develop, and implement IS to meet business opportunities Challenges of effectively and ethically managing IT at the end-user, enterprise, and global levels Figure 1.2 Page No. 7

48. Framework of Major IS Areas Foundation Concepts: Behavioral, Technical, Business and Managerial concepts, Basic Info Systems (Business Applications) develop through general system theory/Strategy Concepts. Information Technologies: Major concepts, Development and Management Issues in IT Hw / Sw , Data , Networks etc. Provides Key (Tech) resources for business. Business Applications: Using IT for Business Processes and Becoming Competitive advantage. e.g. accounting, finance, operations management, marketing, human resource management etc.

49. Framework of Major IS Areas Development Processes: How business professionals and information specialists plan, develop, and implement IS to meet business opportunities. Includes systems development life cycle and prototyping approaches etc. Management Challenges: The challenges of effectively and ethically managing IT at the end-user, enterprise, and global levels of a business.

50. Major Roles of IS Record transactions, track inventory, payroll, buying raw martials, monitor Sales What to manufacture/ Discontinued, how` much money required, Provides Internal/ External Analysis Having Competitive Advantages, Implementing New Ideas for business Page No. 7

51. Fundamental Roles of IS Support of business processes and operations: record transactions, track inventory, payroll, buying raw martials, monitor Sales Support of decision making by employees and managers. What to manufacture/Discontinued, how` much money required, Provides Internal/External Analysis Support of strategies for competitive advantage. Having Competitive Advantages, Implementing New Ideas for business (e.g. installing touch screens for customers, going e-commerce, Offering Loyalty Cards)

52. History of Roles of IS Data Processing Management Reporting Decision Support Strategic & End User Electronic Commerce 1950-1960 1960-1970 1970-1980 1980-1990 1990-2000 Electronic Data Processing - TPS Management Information Systems Decision Support Systems - Ad hoc Reports End User Computing Exec Info Sys Expert Systems SIS Electronic Business & Commerce -Internetworked E-Business & Commerce

53. Page No. 10

54. Information System Model (Major components and activities of information systems) Data resources are transformed by information processing activities into a variety of information products for end users. Information processing consists of the system activities of input, processing, output, storage, and control. Customers, salespersons, engineers, clerks, accountants, managers & knowledge workers all physical devices and materials used in information processing. e.g. computers, video monitors, magnetic disk drives, printers, optical scanners Sys: operating system Apps: spreadsheet programs, word processing, payroll Procedures : operating instructions, Manuals (F1) Product descriptions, customer records, employee files, inventory databases Communications media, communications processors, network access, Internet, intranets e-commerce data entry e.g. Recording, editing calculating, comparing, sorting, summarizing reports & displays records on customers, employees, & products indicate proper entry, Beeps, Messages

55. Types of IS Figure 1.6 Page No. 13 provide expert advice for Operational chores like Equipment diagnostics or managerial decisions e.g. loan portfolio management Systems that supports creation, organize, and & dissemination business knowledge. Provide/apply info for Better products, Services & processes for gaining strategic advantage record and process the data resulting from business transactions Sharepoint , doc Mgt. petroleum refinery use elec. sensors what-if analysis Dashboards-KPIs Reports, emails Point of sales(POS) focus on operational and managerial applications in support of basic business functions Accounting, Finance, Marketing & Sales Systems

56. IS at Management Levels

57. IS Development Cycle Figure 1.13 Page No. 19 Business professional are responsible for proposing and developing new or improved uses of IT for company. All IS built followed a systematic development process . Design of IS is based on analysis of the business requirements of an organization. Investigating tells What is required and how economic or technically feasible it will be. Learning how to use any software is necessary to implement the new system, making improvements in IS is to maintain the business value of a system.

58. Challenges of IT Page No. 20 Professional are challenged by the ethical responsibilities generated by the use of IT. Improper & irresponsible uses of IT, can create harm to people or society . How to be a responsible end user of IT. How to protect ourselves from computer crime and other risks