Full Textbook Summary CAD 2 ED. Management Information Systems CAD 2 Ed. I have made these notes from reading the textbook, and used the same notes to study for midterm #1, #2, and final.
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Chapter 1 - Summary 5/4/2011 11:07:00 AM
Management Information Systems
Deal with the planning for—and the development, management,
and use of—information technology tools to help people perform all
of the tasks related to information processing and management.
Relates to any computer-base tool that people use to work with
information and to support the information and information-
processing needs of an organization.
Using technology to organize information
Without understanding properly you will not be able to be
successful without implementation of the technology to do regular
Both terms are used interchangeably throughout an organization.
The Importance of Planning for IT
o A prioritized list of existing and potential IT systems,
organized by application.
o Applications that have to be added, or modified if they
The IT Architecture outlines the way an organization’s information
resources should be used to accomplish its mission.
o Encompasses both the technical and managerial aspects of
Technical: Hardware and operating systems,
networking, data management systems, and
Managerial: Specify how managing the IT department is
accomplished, how the functional area managers will be
involved, and how IT decisions will be made.
IT Strategic Plan
A set of long-range goals that describe the IT infrastructure and
identify the major IT initiatives needed to achieve the organization’s
Must meet 3 objectives:
o Must be aligned with the organization’s strategic plan
o Must provide for an IT architecture that enables users,
applications and databases to be seamlessly networked and
o Must efficiently allocate IS development resources among
competing projects so the projects can be completed on time
and within budget and have the required functionality.
IT Steering Committee
A committee, composed of a group of managers and staff
representing various organizational units, set up to establish IT
priorities and to ensure that the management information systems
function is meeting the needs of the enterprise.
Major task is to link corporate and IT strategy together, to approve
allocation of resources for MIS function and establish performance
measures for the MIS function and ensure they are met.
IT Operational Plan
Such plan consists of a clear set of projects that the IS department
and the functional area managers will execute in support of the IT
o Mission – The mission of the IS function (derived from the IT
o IS environment – A summary of the information needs of the
functional areas and of the organization as a whole.
o Objectives of the IS function – The best current estimate of
the goals of the IS function.
o Constraints on the IS function – Technological, financial,
personnel, and other resource limitations on the IS function.
o The application portfolio – A prioritized inventory of present
applications and a detailed plan of projects to be developed or
continued during the current year.
o Resource allocation and project management: A listing of who
is going to do what, how, and when.
IT planning is crucial when developing a new product or service, such as the
A collection of related activities that produce a product or a service
of value to the organization, its business partners, and/or its
A process has inputs and outputs and activities may be measured.
Processes may have as low 1 or several functional areas.
Example: Accounting Business Process Accounts Payable,
Accounts Receivable, Cash Receipts, Invoice Billing, Etc.
May lead to competitive advantage if they innovate and become
more efficient than competitors.
May lead to liabilities if they become inefficient.
Example: Purchase tickets online, the firm must have up to date
prices, if not firm will hurt.
The following are significant measures of competitive performance
in the organization:
o Customer satisfaction, cost reduction, cycle and fulfillment
time, quality, product differentiation, productivity.
IT is the key enabler of achieving business process excellence.
o Business Process Reengineering is an approach that improves
the efficiency and effectiveness of an organizations business
o Starts off by viewing the process from a ―clean sheet‖
perspective and than reconstructing them to improve
A less radical, less disruptive and more incremental approach was
developed to replace the BPR was called BPM (Business Process
Business Process Management
A management technique that includes methods and tools to
support the design, analysis, implementation, management, and
optimization of business processes.
Initially BPM helps companies improve profitability by decreasing
costs and increasing revenues. Overtime, created a competitive
advantage by improving organizational flexibility.
Information Systems: Concepts and Definitions