WELCOME TO

Summer
SEMESTER 2021-22
Mehzab H. Nahid
Assistant Professor, Dept of MIS, FBA
Communication and Counseling

01777787316
Email: [email protected]
Office Location : Annex 4, Level 2
INFORMATION SYSTEMS IN
BUSINESS TODAY
Chapter 1-Part 1
Prepared by: Mehzab Nahid, Assistant Professor, Dept of MIS
Chapter Objective

• How are information systems transforming business – relationship to globalization.

• Why are information systems so essential for running and managing a business

• What exactly is an Information System? How does it work?

• Complementary assets for information systems

• Identify the major management challenges to building and using information systems.
•Textbook: Management Information
Systems: Managing the Digital Firm,
Global Edition, 17ed, Kenneth Laudon,
Jane Laudon. Year: 2021, Publisher:
Pearson

•Download the Book from here:

https://aiubedu60714-my.sharepoint.com
/:b:/g/personal/mehzab_nahid_aiub_edu/
EQUQAq8ZOcdKmWMlkCcwO2IBfhseCxSr
_3CQ-KeCRTwwgA?e=ciTIPO
Mid Term Assessments [40%]

Item Marks Date

1 Quiz [5 case studies] 10 Week 4
Group Presentation on 3 Case studies [Best 1 will 20 Week 3, 5
be counted]
Exam [20 MCQ], 3 Essay Type Question 50 Week 6

3 Case studies (3 x 5) 15 Week 1,2,3

Class Performance 5 Week 2

Final Term Assessments [60%]
Item Marks Date

1 Quiz, [5 case studies] 10 Week 8

Group Presentation on 1 Case studies (ERP) 20 Week 11

Exam [20 MCQ], 3 Essay Type Question 50 Week 14

Assignment (Essay)/Poster Contest 15 Week 10

Class Performance/Debate (outsource vs in- 5 Week 9

house/Customized vs CMS)
Why Problem-solving and decision-making
Skills matters ?
• To Solve a problem,
• You need to identify the right problem (You have 2 Options)
• Through analysis
• Assumptions and Gut feelings.
• Then you need Develop a Strategy/plan (Perfect vs real) and execute it.

• “If I only had an hour to chop down a tree, I would spend the first 45
minutes sharpening my axe.” – Abraham Lincoln.
• How you identify problem and solve that depends on Who
you are ?
• Your value, beliefs, Goals, Philosophies.
 Businessmen are Engineers always
goal oriented. focus on Problems.

As a Result, Business students must learn how to use technology to

improve businesses and CSE students need to know how to
Improve/develop technologies.
MIS helps
to set
What is
MIS ?
MIS is the study of 
PEOPL
E

ORGANIZATIONS TECHNOLOGY

AND THE RELATIONSHIPS AMONG THEM.

 Cup
(Hardware)

HOT Water
(Software)

Milk, Sugar, Tea

Leaf, lemon
(Data->
information)

Analogy of Information Systems

What Is an Information System?
An information system can be defined technically as a set of
interrelated components that collect (or retrieve), process, store,
and distribute information to support decision making and
control in an organization.

In addition to supporting decision making, coordination, and

control, information systems may also help managers and
workers analyze problems, visualize complex subjects, and create
new products.
Page 16
 What Is an Information System?
• Information systems contain information about
significant people, places, and things within the
organization or in the environment surrounding it.
• By information we mean data that have been
shaped into a form that is meaningful and useful to
human beings. Data, in contrast, are streams of raw
facts representing events occurring in organizations or
the physical environment before they have been
organized and arranged into a form that people can
understand and use.
Page 62
Book link: https://aiubedu60714-my.sharepoint.com/:b:/g/personal/mehzab_nahid_aiub_edu/EQUQAq8ZOcdKmWMlkCcwO2IB4uPm5OUMdbrVSF7TUeQqog?e=eQ3bkK
Perspectives on Information Systems
Information vs Data
 Information Systems

Information System:
Set of interrelated components – collect (or retrieve), process, store & distribute information to support
decision making and control in an organization.

• Input
• Processing
• Output
• Storage
• Feedback
 What is IoT? Information Security
Office of Budget and Finance
Education – Partnership –
Solutions

The Internet of Things (IoT) is the network of physical

objects—devices, vehicles, buildings and other items

Embedded with
electronics, software, sensors, and network connectivity
—that enables these objects

to collect and exchange data.

 Information Security
Office of Budget and Finance
Education – Partnership –
Solutions

Where is IoT?

It’s everywhere!
 Education – Partnership –
Solutions

Wearable Tech Healthcare

Driverless car
Application programming interface (API)
• a set of functions and procedures allowing the creation of applications
that access the features or data of an operating system, application, or
other service
RFID

RFID is an acronym for “radio-

frequency identification” and
refers to a technology whereby
digital data encoded in RFID tags
or smart labels (defined below)
are captured by a reader via radio
waves. RFID is similar to barcoding
in that data from a tag or label are
captured by a device that stores
the data in a database.
RFID applications
RFID in healthcare
RFID vs Barcode
 Digital Firm
Being a digital firm doesn't mean that you just offer digital
goods and services.

A digital firm would have most of its relationships with

customers, suppliers, and employees be digitally enabled.

Ordering deliveries, assigning deliveries, managing

employees and assignments could certainly be digitally
enabled; using cell phones, information systems, and
handheld devices to connect customers, delivery
management, and bike messengers.
Reasons to Go for
paperless-Digital
  impact on the
PRODUCTIVITY,
PROFITABILITY AND
COMPETITIVENESS  

The actual cost of paper processes goes beyond the cost of paper, ink,
fax machines, and storage.

The costs of using paper in the office can run up to 31 times the cost of purchasing the
paper and also consumes 35-50% of time in searching documents which are lost in huge
files

Companies with paper based processes incur higher costs resulting in slower growth rate
due to longer turnaround time to customer requests.
 Why do
information
systems exist?

Ans: to help organizations achieve

their strategies
 Strategic Business Objectives of Information System

• In most US firms information systems are essential for conduction day-to-day business. These
are MUST for survival & prosper.

• E-Commerce firms such as Amazon, eBay, Google would not exist without systems/ internet.

• Business firms invest heavily in information systems to achieve six strategic business objectives:
1. Operational excellence
2. New products, services, and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Survival
 Improved decision making

• Without accurate information:

– Managers must use forecasts, best
guesses, luck Leads to:
• Overproduction, underproduction
of goods and services
• Misallocation of resources
• Poor response times
– Poor outcomes raise costs, lose
customers
 Operational Excellence
In most cases information systems can provide more productivity and
operational excellence.

Wal-Mart has achieved sales of more than $28 per square foot, when the
closest competitor has achieved $23/ sq. foot.
 New products, services, and business models

• Business model: describes how company produces, delivers, and sells product or service to create
wealth
• Truly new Business Models are invented which are internet based, such as Music Industry in USA.
 Customer and Supplier Intimacy

– Serving customers well leads to customers returning, which raises revenues and profits
• Example: High-end hotels that use computers to track customer preferences and use to
monitor and customize environment
Customer and Business Intimacy
Customer and
Supplier
Intimacy – Intimacy with suppliers allows
them to provide vital inputs,
which lowers costs
• Example: J.C.Penney’s
information system which
links sales records to
contract manufacturer
Competitive Advantage

– Delivering better performance

– Charging less for superior

products

– Responding to customers and

suppliers in real time
 Survival

• Information technologies as necessity of business

• Industry-level changes, e.g. Citibank’s introduction of ATMs
• Governmental regulations requiring record-keeping
 Organizational dimension of information systems
Hierarchy Of Authority Responsibility

Senior Make Long-range Strategic Decisions

Management About What Products And Services To
Produce

Middle Carry Out The Programs And Plans Of

Management Senior Management.

Operational Responsible For Monitoring The Firm’s

Management Daily Activities.
 Organizational dimension of information systems
Hierarchy Of Authority Responsibility

Knowledge Design Products Or Services And

Workers Create New Knowledge (Engineers
Architects Scientists SEO experts)

Data Workers Process The Organization’s Paperwork

(Secretaries Bookkeepers Clerks)

Production Or Actually Produce The Organization’s

Service Products Or Services.
Workers
WHAT ACADEMIC DISCIPLINES ARE USED TO
STUDY INFORMATION SYSTEMS AND

HOW DOES EACH CONTRIBUTE TO AN

UNDERSTANDING OF INFORMATION
SYSTEMS?
Technical
Approach vs
BEHAVIORAL
APPROACH
Technical Approach vs BEHAVIORAL APPROACH

Computer Science
• Methods of computation
• Methods of efficient data storage and access

Management Science
• development of models for
• decision-making
• management practices

Operational research
• Mathematical techniques for optimizing selected parameters of organizations such as
• transportation
• inventory control
• and transaction costs.
 BEHAVIORAL APPROACH

How groups and organizations shape the development of systems

How systems affect individuals groups and organizations

Sociology

How human decision makers

Psychology
perceive and use formal information

Understanding the production of digital goods the dynamics of

digital markets and how new information systems change the
control and cost structures within the firm.
Economics

The behavioural approach does not ignore technology

 Why every investment in IS does not work?

Investing in information technology does not

guarantee good returns

Considerable variation in the returns firms receive

from systems investments
 Complementary assets

• Complementary assets
– Assets required to derive value from a primary investment
– Firms supporting technology investments with investment in complementary
assets receive superior returns
– E.g.: invest in technology and the people to make it work properly
 Houses are built
with hammers
nails and wood
but these alone
do not make a
house.
Why is the building of a house an
appropriate analogy for the building
of an information system?
 Why is the building of a
house an appropriate
analogy for the building of an
information system?

The architecture design

setting landscaping and
all of the decisions that
lead to the creation of
these features are part
of the house and are
crucial for solving the
problem of putting a
roof over one’s head.
 Why is the building of a house an appropriate analogy
for the building of an information system?
• Computers and programs are the hammer nails and lumber of
computer-based information systems but alone they cannot
produce the information a particular organization needs.
• To understand information systems you must understand the
problems they are designed to solve their architectural and
design elements and the organizational processes that lead to
these solutions.

People Organization Technology

How can Information system
automate business processes
in different ways ?
 Industrial Evolution

4. Industrial revolution
Based on cyber-physical-
systems

3. Industrial revolution
Through the use of electronics
and IT further progression in
autonomous production

2. Industrial revolution
Introducing mass production

Level of complexity
lines powered by electric
energy

1. Industrial revolution
Introducing mechanical
production machines powered
by water and steam
Industry 1.0 Industry 2.0 Industry 3.0 Industry 4.0
End of the Beginning of the Beginning of the Today
18th century. 20th century 70th
Source: DFKI/Bauer IAO
Role of Info. Systems in Business

Many managers work in firms that are intensively using information

systems and making large investments for information systems.

IT knowledge for managers is required for better management of

resources / capital.

More cell phones, iPhones, email, phones with Android (samsung

galaxy), BlackBerry, online conferencing, etc.
WHY Study MIS?

Technology is redefining The major provides a

business and Companies now foundation for graduates to
have vast amounts of data, go either in a BUSINESS
which is propelling business DIRECTION OR A TECHNICAL
strategy into operational DIRECTION, OR SOMEWHERE
excellence. IN BETWEEN.
 • In simple words, if you are
people’s people and you
wanted to work towards the
betterment of your
company, MIS helps you do
that.
• MIS gives you tools and
technologies like flowcharts,
prototypes, DFD’s etc. in
order to take a planned
objective and create a model
for that.
• Once the model is created
What Does MIS that model is implemented
professionals do ? and compared with the
Planned One.
Man vs Robot in
Future
(Automation)
Working with or
Against
 Why MIS Career?
Management Information Systems (MIS) is designed to
prepare students for challenging careers in the
application of IT to solve various business problems.

MIS professionals are the “communication bridges”

between IT and the business community.

They analyze design implement and manage IT

applications and strategies to help solve business
problems. MIS students first learn business processes and
then analyze how to improve the processes using IT.
 Common Roles and Responsibilities of a
Business Executive with MIS abilities.

• Responsible to generate, maintain, consolidate and track various

reports.
• Candidate should be well versed in Ms Excel especially in Pivot
table, V - Look up, H- Look up, Concatenate, Index, PPT
• Responsible for preparing MIS reports.
• Well versed knowledge in Advanced MS Excel.
• Analyzing daily, weekly and monthly MIS reports for its accuracy.
 MIS Careers
Website/app
Database
Data Analysis Data analytics design and
expert
development

security risk internet

consulting audit control
assessment marketing

business CRM
eCommerce E-governance
analysis consulting

medical enterprise
supply chain
legal forensics records resource
automation.
automation planning
 Sample Q
• 1. Order data for T20 World cup Cricket tickets and bar code
data are the examples of ____. • 3. Engineers scientists architects business analysts who
• Raw Input design new products or services for a firm are known as
• Customer and Product data __________.
• Sales Information • Operation manager
• Knowledge workers
• 2. Which of the following roles in a firm will be least • Senior Executive
affected by using mobile device to access firm ? • Middle management
• Operation manager
• Production worker • 4. City bank introduced their ATM machine by
• Senior Executive implementing their MIS resources to achieve which
• Sales Executive business objective ?
• Survival
• Customer Supplier Intimacy
• Improved efficiency
 Sample Q
1. Example of a Raw data from a Fast food Chain Store would be _______________.

 6 piece boneless chicken sold at 12.45 PM on  An average of400 piece boneless chicken are sold
January 1 2015 in banani Dhaka daily in Banani

 10% sale dropped in boneless chicken sale in  None of the above

January in Banani shop.

2. Psychologists study Information system with an eye to understanding ____________________.

 How system effect individual and organization  How decision makers perceive and use formal
Information

 The production of digital goods  How new information system change the control
and cost structure within the firm.

3. An example of a business using information technology to create new products and service is _____.

 A 5 Star Hotel’s customer preference tracking  Wordpress’s digital dashboard

system

 Walmart’s Retail-Link system.  Apple’s Ipad 6

 Class Performance (5 Marks)
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