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Chapter 1

Chapter 1 Text Book Notes - Management Information Systems

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Department
Administrative Studies
Course
ADMS 2511
Professor
Cristobal Sanchez- Rodriguez
Semester
Fall

Description
Management  Information  Systems   1   Chapter  1     Learning  Objective  1:  Link  effective  information  technology  planning  to  business  planning     • Management  Information  Systems  (MIS)  –  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   • Information  Technology  –  relates  to  any  computer-­‐based  tool  that  people  use  to  work  with   information  and  to  support  the  information  and  information-­‐processing  needs  of  an  organization   • Organizations  must  justify  mew  management  information  systems  in  terms  of  cost  and  benefits   o Wisdom  of  investing  in  a  specific  IT  system  vs.  spending  on  alternate  projects   • Application  Portfolio  –  a  prioritized  list  of  exciting  and  potential  IT  systems,  organized  by   application     IT  Planning:     • The  organizational  mission  and  business  assessment  define  the  organizational  strategic  plan   • The  organizational  strategic  plan  and  the  current  information  technology  architecture  define   the  IT  strategic  plan   • 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  goals   o Must  meet  3  objectives:   § It  must  be  aligned  with  the  organization’s  strategic  plan   § It  must  provide  for  an  IT  architecture  that  enables  users,  applications,  and   databases  to  be  seamlessly  networked  and  integrated   § It  must  effectively  allocate  IS  development  resources  among  competing  projects     so  the  projects  can  be  completed  on  time  and  within  budget  and  have  the   required  functionality   o A  critical  component  of  the  IT  strategic  plan:   § IT  Steering  Committee  –  a  committee,  composed  of  a  group  of  managers  and   staff  representing  various  organizational  units,  is  set  up  to  establish  priorities   and  to  ensure  that  the  MIS  function  is  meeting  the  enterprises  needs   • Major  tasks:  link  corporate  and  IT  strategy,  to  approve  the  allocation  of   resources  for  the  MIS  function,  and  to  establish  performance  measures   for  the  MIS  function  and  ensure  they  are  met   • The  IT  steering  committee’s  importance  is  that  it  ensures  that  the   information  systems  and  applications  are  acquired  so  that  the  employees   get  the  resources  that  they  need   • After  developing  the  IT  strategic  plan,  the  company  develops  the  IS  Operational  Plan   o IS  Operational  Plan  –  consists  of  a  clear  set  of  projects  that  the  IS  department  and  the   functional  area  managers  will  execute  in  support  of  the  IT  strategic  plan   § Main  elements:   • Mission   • IS  Environment  (Summary  of  all  informational  needs)   • Objectives  of  the  IS  Function  (Best  current  estimate  of  goals)   • Constraints  on  the  IS  Function  (Technological,  financial,  personnel,  and   other  resource  limitations  on  the  IS  Function)   • The  Approach  Portfolio   • Resource  Allocation  and  Project  Management    (Who,  what,  how,  when)   Management  Information  Systems   2   Chapter  1       Learning  Objective  2:  Describe  business  processes  and  explain  how  business  process  management  helps   to  improve  how  businesses  function     • Business  Process  –  a  collection  of  related  activities  that  produce  a  product  or  a  service  of  value  to   the  organization,  its  business  partners,  and/or  it’s  customers   o Has  inputs  and  outputs   o Activities  can  be  measured   o Can  cross  functional  areas  in  an  organization  (Ex.  Design  and  distribution)   o Can  lead  to  a  competitive  advantage   o Can  be  a  liability  if  they  impede  organizational  responsiveness  and  efficiency   o Business  process  measures  of  competitive  performance:   § Customer  satisfaction   § Cost  reduction   § Cycle  and  fulfillment  time  (manufacturing  and  project  management)   § Quality   § Product  differentiation   § Productivity   • Examples  of  finance  business  process  (pg.  8):     o Account  collection     o Bank  loan  applications   o Business  forecasts   o Customer  credit  approval  and  credit  terms   o Property  tax  assessments   o Stock  transactions   o Financial  cash  flow  reports   • Business  process  Management  (BPM)  –  a  management  technique  that  includes  methods  and   tools  to  support  the  design,  analysis,  implementation,  management,  and  optimization  of  business   processes   o Initially  BPM  helps  companies  improve  profitability  by  decreasing  costs  and  increasing   revenues   o Over  time,  BPM  can  create  a  competitive  advantage  by  improving  organizational  flexibility     Learning  Objective  3:  Explain  the  role  of  data,  information,  and  knowledge.  Differentiate  between   information  technology  architecture  and  information  technology  infrastructure.     • Goal  of  information  systems  is  to  process  data  into  information  and  knowledge   • Data  Items  –  an  elementary  description  of  things,  events,  activities,  and  transactions  that  are   recorded,  classified,  and  stored  but  are  not  organized  to  convey  any  specific  meaning   o Ex.  Student  grade  in  a  class;  number  of  hours  an  employee  worked  in  the  week;  the  price  of   a  ringtone   • Information  –  data  that  have  been  organized  so  that  they  have  meaning  and  value  to  the  recipient   o Ex.  Student’s  names  compiled  with  their  GPAs;  list  of  ringtones  stating  the  frequency  of   sales   • Knowledge  –  data  and/or  information  that  have  been  organized  and  processed  to  convey   understanding,  experience,  accumulated  learning,  and  expertise  as  they  apply  to  a  current   problem  or  activity   o Ex.  A  company  recruiting  at  your  school  have  found  over  time  that  students  with  grade   Management  Information  Systems   3   Chapter  1     point  averages  over  3.0  have  had  the  most  success  in  the  management  program.  Therefore   the  company  only  interviews  those  with  a  GPA  over  3.0   • Information  Technology  Architecture  –  a  high-­‐level  map  or  plan  of  the  information  assets  in  an   organization   o A  guide  for  current  operations,  and  a  blueprint  for  the  future   • Information  Technology  Infrastructure  –  the  physical  facilities,  IT  components,  IT  services,  and   IT  personnel  that  support  an  entire  organization   o IT  components  are  the  computer  hardware,  software,  and  communications  technologies   that  provide  the  foundation  for  all  of  an  organization’s  information  systems   o IT  personnel  use  the  IT  components  to  produce  IT  services   o IT  services  include  data  management,  system  development,  and  security  concenrs   § IT  infrastructure  should  not  be  confused  with  the  platform;  the  platform  is  only  the   IT  components     Learning  objective  4:  Describe  the  global  business  environment  and  how  globalization  has  affected   organizations.     • Globalization  –  the  integration  and  interdependence  of  economical,  social,  cultural,  and  ecological   facets  of  life,  enabled  by  rapid  advances  in  technology   o Three  stages  of  globalization:   § 1492-­‐1800  –  during  this  era,  the  force  behind  globalization  was  how  much  muscle,   horsepower,  or  steam  power  a  country  could  deploy   § 1800-­‐2000  –  during  this  era,  the  force  behind  globalization  was  multinational   companies  (companies  that  had  their  headquarters  in  one  country,  but  operated  in   several  others)   § 2000-­‐  now  –  globalization  is  driven  by  the  convergence  of  10  forces  that  Freidman   calls  “flatteners:”   • Fall  of  the  Berlin  Wall  (Nov.  9,  1989)  –  shifted  the  world  towards  free-­‐market   economies  and  away  from  centrally  planned  economies,  and  led  to  the  rise  of   the  European  Union   • Netscape  goes  public  (Aug.  9,  1995)  –  popularized  the  internet  and  the  WWW   • Development  of  workflow  software  –  enables  computer  applications  to  work   with  one  another  with  no  human  assistance,  and  enabled  faster  collaboration   and  coordination  among  employees   • Uploading  –  empowered  everyone  with  the  ability  of  putting  content  on  the   internet,  and  led  the  active  participation  and  collaboration  on  the  internet   • Outsourcing  –  Contracting  with  an  outside  company  to  perform  a  specific   function  that  your  company  was  doing  itself  and  then  integrating  their  work   back  into  your  operation   • Offshoring  –  relocation  an  entire  operation,  or  just  certain  tasks,  to  another   country   • Supply  chaining  –  technological  revolution  that  led  to  the  creation  of   networks  composed  of  companies,  their  suppliers,  and  their  customers,  all  of   whom  could  collaborate  and  share  information  for  increased  effici
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