Transaction processing systems (tps) in Management information systems (MIS)
Introduction to Management Information Systems (MIS)
description
Transcript of Introduction to Management Information Systems (MIS)
Introduction to Management Information Systems
(MIS)
Minder Chen, Ph.D.
Professor of Management Information SystemsMartin V. Smith School of Business and Economics
CSU Channel IslandsEmail: [email protected]
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What is MIS? • M: Management
– Business Functions/Processes, Organizations, and Human Behaviors
• I: Information– Contents: Data, Information, Knowledge– Processes: Create, Gather/capture/elicit, Store, Organize,
Consolidate & Condense, Filter, Deliver, and Share • S: System (Information Systems/Information Technology)
– Input-Process-Output and Storage – General Systems Theory (GST)
• http://en.wikipedia.org/wiki/Management_information_system• http://en.wikipedia.org/wiki/Systems_thinking• http://en.wikipedia.org/wiki/Systems_theory
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A System View of an Information System
Input Process Output
Data storage
Procedure
Control
Environments
Data Sources/Businessevents
InformationDestinations
Information System Boundary
What are the hardware options or Inputs, Outputs, Processing, and Storages?
Data Providers
•Consumers•Users •organization units
Information System (Producer)
Secondary storage(database)
Main memory
Data Visualization
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Characteristics of Good Information• Accurate• Timely• Relevant (provide context) to decisions • Just sufficient• Worth its cost (to justify its benefits)
• Deliver just enough accurate, relevant, and timely information to the right persons to make better decisions.
• How much energy does a Google search consume? 0.0003 kWh of energy per search; a Google search uses just
about the same amount of energy that your body burns in ten seconds.
Information overloading
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Information Quality (IA) and Categories
Source: http://sloanreview.mit.edu/files/2008/12/3947-ex3-lo7.pnghttp://sloanreview.mit.edu/article/manage-your-information-as-a-product/
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Presentation of Information
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Another Version
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A Picture Is Worth a Thousand Words• 24 June – 14 December 1812
https://en.wikipedia.org/wiki/File:Napoleons_retreat_from_moscow.jpg
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Managing Information as a Resource• The resources of the industrial age were
tangible things (e.g., raw materials and human resources) and easily understood.
• In the emerging post-industrial society, there is little understanding of the characteristics of information – the basic yet abstract/intangible resource.
• Both physical resources and information could be mined, processed, bought, sold, and managed.Harland Cleveland, "Information as Resource," The Futurist, December 1982, 34-39.
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Information Life CycleD
ecision
Action
Dat
aInformation
• Intelligence• Design • Choice
http://faculty.csuci.edu/minder.chen/MIS310/Reading/20000905cleveland.pdf
Information is processed data that is organized, meaningful, and useful.
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Characteristic of Information• Expandable: Information explosion* Reduce information
overload to reduce uncertainty in decision making.• Compressible: Sorting, categorizing, filtering,
aggregating, summarizing**, and consolidating. • Substitutable: Substitute with other resources via
productivity improvement.• Transportable: Data communications and networking.• Diffusive: Spreading (sharing) and leaking (Security &
privacy)• Sharable: Sharing information is a shared transaction
instead of an exchange transaction. Digital Universe: The world’s information is doubling every two years. In 2011
the world will create a staggering 1.8 zettabytes. ** Summly, a news-summarizing app acquired by Yahoo for $30 millions.
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Even the Caveman Needs Knowledge to Survive
The information-knowledge-wisdom hierarchy. The caveman has lots of information; he selects and organizes useful information into knowledge, but he does not achieve wisdom until he has integrated his knowledge into a whole that is more than useful than the sum of its parts. Source: Harlan Cleveland, "Information as a Resource," The Futurist, December 1982, 34-39.
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The Knowledge Value Chain: Data
Source: IBM Academic Program course materials
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The Knowledge Value Chain: Information
Source: IBM Academic Program course materials
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The Knowledge Value Chain: Knowledge
Source: IBM Academic Program course materials
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Knowledge Is Not Enough
Source: IBM Academic Program course materials
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DIKW (Information) Hierarchy
Knowledge
Information
Event
Data
Learning: Derive rules/policies through experiences & patterns
Analyzing: To support decision making
Observing: Description of events
Wisdom Know why
Know how
Know what
Know nothing
Happening/Doing
Integrating: Connect the dots
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DIKW Hierarchy: version 2
• T: Tacit knowledge• E: Explicit knowledge
http://en.wikipedia.org/wiki/DIKW_Pyramidhttp://en.wikipedia.org/wiki/File:DIKW.png
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Moving Up the DIKW Hierarchy• Where is the Life we have lost in living?
• Where is the wisdom we have lost in knowledge?
• Where is the knowledge we have lost in information?
T.S. Eliot, Choruses from “The Rock”, 1934
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Information as Products/Services• CarFax: CARFAX - Vehicle History Reports and VIN number
check - http://www.carfax.com (1 CARFAX Report $39.99)
• Britannica*: http://www.britannica.com/ – Blown to Bits: How the New Economics of Information Transforms Strate
gy
– The printed version was blown away by three disruptive forces– A comeback act? (iPad app)– Why Britannica matter? No printed version, 2012.
• Information as services– Google: Searching for information (Google would provide “access
to the world's information in one click”)– Facebook: Social networking ("Facebook's mission is to give
people the power to share and make the world more open and connected." )*Source: Jorge Cauz, “Encyclopaedia Britannica's President on Killing Off a 244-Year-Old Product,” Harvard Business Review, Mar 01, 2013.
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CD-ROM based Encyclopedia• Encarta (1993), Grolier, and Compton, list for
$50 to $70; usually bundled with a new PC for free.
• Content quality and distribution channel• Cost:
– With a marginal manufacturing cost of $1.50 per copy, the CD-ROM as freebie makes good economic sense.
– The marginal cost of Britannica, in contrast, is about $250 for production plus about $500 to $600 for the salesperson’s commission.
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Britannica Sales
Source: http://hbr.org/2013/03/encyclopaedia-britannicas-president-on-killing-off-a-244-year-old-product/ar/1
Netscape 1995
Google IPO, 2004
Google Inc. incorporated,
1999
WWW invented
1990
Encarta discontinue
d 2008
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The Rise of Wikipedia
Disruptive fo
rce
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Britannica vs. Wikipedia
Characteristic Britannica WikipediaPrice
Content generation/EditorialUpdate frequency
Revenue stream
Quality of the content
Wiki is an open source content management system (CMS). Wikipedia uses wiki as a development tool.
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Information Systems Components
Source: adapted from Using MIS 3e
Manual Procedures and Business Process
Individuals, Groups, Departments, Enterprise-wide, Customers, Trading partners
Data, Information, Knowledge
System SW, Application SW
Computers•Server•PC•MobileNetworking
Information
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People
Processes Things
Man: Human Resource, EmployeesMarket: Customers
Machine: Property, Facility,
TechnologyMaterial:
Raw material, Product
Method: Technique, Process,
Project, Task
Money: Accounting, Finance, Investment
$$$ Message: Information
huMan, Market, Money, Method, Machine, Material, Message
Business environments • Market demands• Technology development• Social trends• Locations/Localization
How, When? What?
Who?
Vision Why?Goals/Objectives/Performance measures
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Organizational Hierarchy and Information
Planning
Control
Operation
External
Internalso
urce
Aggregated
Detail
Leve
l of D
etai
l
OLAP
OLTP
Proc
essi
ng
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Information Systems Triangle Operational
DatabaseData WarehouseData Mart
EnterpriseWorkflow
OLTPOnline Transaction
Processing
BIDSSEIS
Data Information
Knowledge
Messaging Systems
Workflow, Collaboration, Groupware
BusinessProcessWorkflow
OLAPOnline Analytical Processing
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Classification of Information Systems• Transaction Processing System
– Online transaction processing system (OLTP)– Batch, Online, real-time
• Management support system – Decision support system (DSS), Executive information system
(EIS), and Digital Dashboard– Data warehouse, Business intelligence (BI), and Online Analytical
Processing (OLAP)• Units involved
– Individual, group, and departmental, enterprise-wide, inter-organizational, and social networking systems
• Strategic Information Systems• Based on IT Platforms
– Traditional desktop/client-server applications– Web-based applications (e.g., Electronic Commerce)– Mobile applications
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The Extended Enterprise
E-Business: Virtual and Dynamic Enterprise
SuppliersBackOffice
FrontOffice Customers
Buy Make/Add Value Sell
Supply Chain Back Office Integration Demand Chain
ManufacturingFinance/Accounting
EngineeringHR
MarketingSales
Support/Service
Supply Chain Management Customer Relationship Management Enterprise Resource Planning
WarehousingLogistic/Transportation
Order Fulfillment
B2B
E-C
omm
erce
B2C
or B2B
E-C
omm
erce
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MIS• Management BY Information Systems• Management OF Information Systems
Information
Other Resources: HR, Money,
Material, etc.
Manages
Resources
Information Systems
• Managing Information as a Resource (i.e., Inventory Info. System) • Selling Information as Products (i.e., CarFax)• Offering Information/IS as Services (i.e., Facebook, Google)
As Products or Services
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Summary• What information does one may need to obtain to
do his/her works?• What kinds of information systems/technologies
may be the best to manage such information?• Be sensitive to the information, IS, and IT.• Know how to apply conceptual frameworks
introduced this module in understanding information needs, but start with the analysis of decisions and/or business processes.
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IT, IS and IM
Source: Competing with Information: A Manager's Guide to Creating Business Value with Information Content
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Key Frameworks
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Information Systems Applications in a Firm
Customer Relationship Management (CRM)
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Information as: Product vs. By-Product
http://sloanreview.mit.edu/article/manage-your-information-as-a-product/http://sloanreview.mit.edu/files/2008/12/3947-ex1-lo7.png
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COBIT’s Information Criteria (I)• EffectivenessEffectiveness deals with information being
relevant and pertinent to the business process as well as being delivered in a timely, correct, consistent and usable manner.
• Efficiency Efficiency concerns the provision of information through the optimal (most productive and economical) use of resources.
• Confidentiality Confidentiality concerns the protection of sensitive information from unauthorized disclosure. (Sony PlayStation Network hacked)
• Integrity Integrity relates to the accuracy and completeness of information as well as to its validity in accordance with business values and expectations.
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COBIT’s Information Criteria (II)
• AvailabilityAvailability relates to information being available when required by the business process now and in the future. It also concerns the safeguarding of necessary resources and associated capabilities.
• Compliance Compliance deals with complying with the laws, regulations and contractual arrangements to which the business process is subject, i.e., externally imposed business criteria as well as internal policies. (Sarbanes–Oxley Act)
• ReliabilityReliability relates to the provision of appropriate information for management to operate the entity and exercise its fiduciary and governance responsibilities.
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Exercise – 20-minute break and 5-minute presentation
• Describe your background and experiences– Company name and the industry it belongs to – Position and general responsibility– Three major decisions
• Pick the most important decision involved in this position and find out the following:
– Characteristic of the decision: Operational vs. Strategic; Structured vs. Unstructured; Routine vs. Non-routine
– What information is current used to support the decision – What kind of source data should be collected to generate the
information needed– Under which task is this decision performed – What is the broader business process that this task belongs.
• What additional improvements can be made from the perspectives of information systems and decision making
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Information System Applications
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Extracting Extracting Value from Value from Information Information ChaosChaos(link)(link)