INFORMATION SYSTEM

 An Integration of Different Units/components across the Organization that

functions/operates together which exchange/transfer accurate, timely and

complete Data & Reports in Precise Manner to Management for Operations,

Planning, Execution and Decision Making etc…….. To achieve the over-all

organizational goals and objectives.

INFORMATION SYSTEM ROLE IN
BUSINESSES/ORGANIZATIONS
 Companies becoming digitalized
 M.I.S helps to reduce inventories to the lowest possible levels
 Achievements for high level of operational efficiency
 Un-interrupted supply chain with fast pace and track
 Introduction of J.I.T concept (Just in Time) Inventory which helps to
reduced the overhead costs
 Businesses using social networking tools to connect their employees,
customers and managers
 E-commerce & Internet Advertising
INFORMATION SYSTEM ROLE IN
BUSINESSES/ORGANIZATIONS
 Digital growth in Pakistan is going through
a rapid evolution. IT Sector is one of the
fastest growing sectors of Pakistan
contributing about 1% of GDP of Pakistan
at about 3.5 billion USD. It doubled in
the past four years and experts expect it
to grow a further 100% in the next two to
four years to $7 billion.
INFO: SYS: ACTIVITIES/PROCESS:
THREE MAIN ACTIVITIES/PROCESSES:

1. IN-PUTS

2. PROCESSING

3. OUT-PUT
CASE STUDY#01
You have been hired as a “Consultant” by “Institute of Management
Studies”, Head of the Department assigned you a task to prepare a
“Comprehensive Report/Proposal” to provide a solution for “Real
Time
Information” required for “Submission of an Annual Budget
Estimates”, “Procurement Plan”, “Recruitment/HR Plan” and “Assets
Valuation/Management”
 WHY TO STUDY AN M.I.S
(The Strategic Objectives)
 To Study The Processes and Information Flow
Across The Board.
Identification of Data Generation from Relevant Department/Section within
Organization.

 Adaptation of Technologies in Businesses

Business success depends upon information pertained to financial,
organizational/HR, statistical, marketing, sales, un-interrupted supply chain etc,
All these information needs to be integrated through latest technologies where
timely and accurate reports can be generated for real time decision making.
 Cont’s
 Speed-Up/Improved Decision Making:

 Faster Response to Customers:

 Retained Customers:

 Operational Excellence:

 Information Access to Stake Holders:

 Online Business
Cont’s
 Customers and Suppliers Intimacy

 Competitive Advantage

 Survival
Cont’s
 The firms that are intended for large investment in implementation of

an M.I.S, as a manager it’ll be your responsibility to take a wise

decision in terms of investing financial, human and capital resources.

BUSINESSES NEED I.T
 TO ESTABLISH FASTER COMMUNICATION:
(INSIDE & OUT SIDE ORGANIZATION)

 TO MAINTAINED ELECTRIC STORAGE

 PROTECTION TO RECORD
Discussion:
 Informationsystems are too important to
be left to computer specialists. Do you
agree? Why or why not?
 Do you predict that video and web
conferencing will make business travel
extinct. Do you agree? Why or why not?
M.I.S Fundamentals/Dimensions

 Organization

 Hard Wares

 Soft Wares

 Processes
Organization
 Senior Management: Makes long-range strategic
decisions about products and services
 Middle Management: Carries out the programs and
plans of sr. management
 Knowledge Workers: Design products, services and
create new knowledge for the firm
 Operational Management: Monitoring the day to
day activities of business
 Data Workers: Assist the paper work at all levels of
the firm
 Production/Service Workers: Produce the
product or delivering services
Hardwares
 Computer Hardwares are the physical devices used for input,

processing and output activities in an information system.

 Examples are: computers of various shapes and sizes, bar code

readers, Data Base Servers and telecommunication devices that link

together the computers etc etc

Software
Software is a set of instructions, data or programs used to operate

computers and execute specific tasks.

Windows

M.S Office

Quick Book

Enterprise Resource Planning (ERP)

 Processes
 A set of related tasks the businesses organized and coordinated to produce

specific goods or services

 Examples are: Developing a new products, Generating and fulfilling an order,

creating a marketing plan, hiring an employee for the organization

Solving Business Problems Through
Management Information System
 Define a Problem

 Gather Data to Describe the Problem

 Identify Alternate Solution

 Evaluate each alternate solution (In case more than one solution exists)

 Select the Best Solution

 Implement the Selected Solution

 Evaluate the Success of Implemented Solution

Developing Information System Solution
 When the systems approach is applied to the
development of information systems solutions to
business/ organization problems, it is called “Information
Systems Development or Application Development”.
 Cont’s
 Four Major Steps Involved in System Development Life Cycle (SDLC):

1. Feasibility of the System:

a. Organizational Feasibility: How well the proposed system supports the objectives of
organization existing and strategic plans.

b. Economic Feasibility: Either the system is cost savings, increase revenue, increased profit
and other benefits exceeding the cost of developing and operating a proposed system.

c. Technical Feasibility: Whether the required hard wares and soft wares can be acquired
for the proposed system.

d. Operational Feasibility: The willingness and ability of management, employees,

customers and suppliers to operate, use and support a proposed system.
2. System Analysis
 It is the in depth study of end user information needs.

3. System Design:
 It specifies how the system will accomplish the end user
information needs.
i. User Interface Design: Ease of use for end user.

ii. Data Design: Focuses on the data type to be associated with

different fields in development of an application.
4. Implementation and Maintenance

 Once system designed, it must be implemented, the

implementation involved Hardwares and softwares

acquisition, software development, testing and education

and training of end users and specialists who will operate

the new system.

 General System Model of the Firm
 Organization: A stable, formal social/legal structure that
takes resources from the environment and processes them to
produce outputs.

 Three Main Elements:

 i. Capital & Labor: Primary Production Factors

 ii. Production Function: Transformation of inputs into

products.

 iii. Out-Put to Environment:

Cont’s
 The Physical Resources Flow: The Physical Resources include:
 i. Personnel:

Personnel are hired, get to high level skills through training and experiences and
often left the organization.
 ii. Materials:

Raw material purchased from environment, processed them into finished goods and
then produced to environment as finished goods.
 iii. Machines:
Machines are purchases, used and then either to transformed into scrapped or
replaced with new machines.
 iv. Money/Financial Resources:
It enters in the form of sales receipts, share holders investments, loans and further
paid to vendors/suppliers, taxes to Government, payment of salaries and bonuses to
employees.
The Virtual Resource Flow
 The process of getting Data from External as well as internal business

environment, process them through application and generate reports which

helps the management in policy and decision making.

 The Control Mechanism: Implementation of

Organization Rules Regulation through

M.I.S/Software Application.
Features of Organization
 Routines and Business Processes: Development of S.o.Ps

 Organizational Politics: Organizational political resistance is

one of the great difficulties of bringing about organizational
change- especially the development of new information
system.

 Organizational Environment: Information System is key

instruments for environmental scanning, helping managers
identify external changes that might requires an
organizational response.
General System Model
How I.S Impact Businesses/Org
 Economic Impact:

 Flattens Organizations (Managerial

Impact):
Design & Understanding the I.S
 The Environment in which organization must function

 The structure of the organization: hierarchy, specialization, routines and

business processes.

 The organization’s culture and politics.

 The type of organization and its style of leadership.

 The principal interest groups affected by the system and the attitudes of
workers who will be using the system.

 The kinds of tasks, decisions and business processes that the information
system is designed to assist.
 I.T Infrastructure
(A Managerial Overview)

 I.T infrastructure consists of set of physical devices

and software applications that are required to
operate the entire enterprise.

 It must be budgeted by management in terms of

financial, human and technical capabilities.
Cont’s
 Computing Platforms: Used to provide computing
services about employees, customers and suppliers
etc etc.

 Tele-communication Services: Provides data, voice

and video connectivity.

 Data Management Services: Stores and Manage data

and provide capabilities for analyzing the data.
Cont’s
 Application Software: Provide an enterprise a wide
capabilities such ERP (Enterprise Resource Planning),
CRM (Customer Relationship Management), SCM (Supply
Chain Management) and knowledge management system
shared by all businesses units.

 Physical Facility: Develop and manage the physical

installations required for computing, telecommunication
and data management services.
Cont’s

 I.T Management Services: Plan and develop the

infrastructure, coordinate with business units for I.T
Services, manage accounting for I.T Expenditures
and provide project management services.

 I.T Education Services: System training to

employees and managers.
Cont’s
 I.T Research and Development: Provide the firm
with research on potential future I.T projects and
investments that could help the firm differentiate
itself in the marketplace.
 Evolution of I.T Infrastructure
 General-Purpose Mainframe and Minicomputer Era: (1959 to Present):

 The first commercial computer with a powerful Operating System that

provided, time sharing, multi-tasking and virtual memory.
 Personal Computer Era:
(1981 to Present)

 Operated through D.O.S (Disk Operating System)

 (systeminfo, exit etc)
 Microsoft Window Operating System

 Software Tools introduced mainly word processors,

spreadsheets, electronic presentation software and small
data management programs.
Client/Server Era (1983 to Present)

 Desktop/Laptop computers called “Clients” are networked

to powerful “Server” computers that provide the client
computers with a variety of services and capabilities.

 The client is the user point of entry whereas server

processes and stored shared data.

 The term “Server” refers to both “Software Application”

and “Physical Computer”.
Cont’s
Enterprise Computing Era:
(1992 to Present)

 Allowed different computer hardwares and networks into

an enterprise-wide network
Cloud Computing Era
(2000 to Present)

 The growing bandwidth power of the internet has pushed

the client/server model one step further towards what is
called the “Cloud Computing Model”.

 It allows the firms and individuals to obtain computing

power and software application over the internet rather
than purchasing your own hardware and software.
Cont’s
I.T Infrastructure Components
 We have Seven Major I.T Infrastructure Components:
1. Computer Hardware Platform
2. Operating System Platform
3. Enterprise Software Application
4. Data Management & Storage
5. Networking/Telecommunication Platform
6. Internet Platform
7. Consulting & System Integration Services