BUS 237 - Ch 1-3 Study Notes - Summer 2013
Management Information System (MIS): comprises the development and use of information systems
that help organizations achieve their goals and objectives
- A system is a group of components that interact to achieve some purpose
- An Information System (IS) is a group of components that interact to produce information
- IS combines the people and procedures they use, to make technology work for business
IS vs IT?
IS: A system of hardware, software, data, procedures, and people that produces information
IT: The raw technology components of IS (Hardware, software, data components)
IT must be embedded into an IS to help accomplish objectives. In other words, technology must be
combined with people and procedure components
- Describes a set of activities that are necessary to complete a response to a stimulus applied to an
Example Stimulus: Customer request, supplier shipment, management directive
Example Response: Ship product, update inventory, create committee
- A series of tasks or steps designed to produce a product or service
- A system, and sometimes referred to as business systems
Eg. Inventory management processes, manufacturing processes, sales and support processes
A business process is a network of
These interact to achieve business function
Activities transform resources & information of one type into resources & information of another type.
- Follows rules and procedures
- Can be manual, automated, or combination
Resources are items of value.
- An organization uses resources to provide value for its customers & successful outcomes for the
Facilities are structures used within the business process
Information is knowledge derived from data.
- It is the central focus of information systems
- Business processes create, process, and store information
Data are recorded facts or figures that requires context to me meaningful. Good Information
- Just sufficient
- Worth its cost
IS Five Components
Hardware Software Data Procedures People
^Computer Side^ ^Human Side^
- The outermost components of information system, hardware and people, are both actors; they can
- The software and procedure components are both sets of instructions: Software is instructions for
hardware, and procedures are instructions for people.
- Data is the bridge between the computer side on the left and the human side on the right.
Automation of Process Activity
- Transfer work done by people to computers
- People follow procedures and Computers follow software instructions
- Moving from human side to computer side
- Computer side: Automated system
- Human side: Manual system
Business Process Design
Approaches to improving organizational performance. Each has its advantages and disadvantages.
1. Business Process Automation (BPA)
The least "intense" form of automation
- Involves automating some aspect of a business process through the application of IT
- Leaves the manual system essentially unchanged but makes processes more efficient by automating
- Focuses more on detailing the "as is" system
- BPA does not impact the way things are done, but rather how fast they are accomplished
2. Business Process Improvement (BPI)
A notch up on the analysis intensity level of automation
- BPI recommends that employees involved in the process should look for ways to incrementally
- This approach takes an evolutionary view of the system
- No radical changes but constant search for improvements
- Changes are made to the way things are done, not just the computer system, but the business process
3. Business Process Transformation (BPT)
High level of intensity of automation
- A radical and fundamental rethinking of the business processes currently used
- Looking for dramatic improvements
- High risks
- Increased time Decision Making
- Information is an important starting point
- IS support decision making the information
- Varied and complex
Levels of Decision Making
- Operational Decisions: Concerns day-to-day activities (Transaction Processing Systems [TPS])
- Managerial Decisions: Concerns allocation & utilization of resources (Management Info Systems [MIS])
- Strategic Decisions: Concerns broader scope, organization issues (Executive Information Systems [EIS])
A structured decision is one for which there is an understood & accepted method for making the
decision. (Eg. How much tax do I need to pay? or Weather forecasting)
An unstructured decision is one for which there is no agreed-on decision making method (Eg. Who
should I marry? or Weather itself)
Operational decisions tend to be structured while strategic decisions tend to be unstructured.
Managerial decisions lie somewhere in between.
Decision Making Steps
Intelligence gathering -> Alternatives formulation -> Choice -> Implementation -> Review
Labour Productivity: The ratio of the Canadian gross domestic product (GDP) over the total paid hours
worked by Canadians. Sometimes referred to as simply Productivity.
Productivity Paradox: The increase in investment in information technology combined with small
changes in worker productivity.
IT Creating Business Value
1. Productivity - IT allows a company to make:
- More output from the same inputs
- Better output
- The output faster than before the technology.
2. Structure of Competition - IT can alter the way corporations compete.
- In order to keep up with other corporations, the corporation may respond with:
- Purchasing the same, or better, software
- Acquiring other firms to get larger
- Lowering the price of tax return service
- Increase other services provided to client
3. Benefits to Customers - Consumers may see cheaper and better goods & services as a result of IT and
- Work is done more quickly