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Information systems(informationsystems)
An information system is comprised of all the components that collect, manipulate, and disseminate data or information. Itusually includes hardware , software ,people, communications systems, and the data itself. The activities involved include inputing data, processing of data intoinformation, storage of data and information, and the production of outputs such as management reports. The area of study should not be confused with Computer Science which is more theoretical and mathematical in nature or with Computer Engineering which is more engineering . The study of Information Systems is usually a commerce and business administration discipline, and frequently involves software development , but also distinguishes itself byconcentrating on the integration of computer systems with the aims of the organization. In business, information systems support business processes and operations, support decision making, and support competitivestrategies. The functional support roleThe business processes and operations support function is the most basic. It involves collecting, recording, storing, andbasic processing of data. Information systems support business processes and operations by:
The decision support roleThe business decision making support function goes one step further. It is an integral part of making decisions. It allowsusers to ask “What if . . . ?” questions : What if we increase the price by 5%? ; What if we increaseprice by 10%? ; What if we decrease price by 5%? ; What if we increase price by 10% now, then decrease it by 5% inthree months? It also allows users to deal with contingencies : If Inflation increases by 5% (instead of 2% as we areassuming), then what do we do? What do we do if we are faced with a strike or a new competitive threat? The most basic and most versatile business decision making tool is the spreadsheet , but spreadsheets are not user friendly. More sophisticated programs often seamlessly incorporatestatistical decision making tools like sensitivityanalysis , Monte Carlo analysis , risk analysis , break even analysis and Bayesiananalysis . If, for example, you are using the information system to decide about a new product introduction, the programshould incorporate tools like logitanalysis , B.C.G. Analysis , conjoint analysis , contribution margin analysis , multi dimensionalscaling , G.E. Multi Factoral analysis , factor analysis , cluster analysis , discriminant analysis , Quality Function Deployment , preference regressions , and preference-rank translations . The strategic support roleInformation systems can support a company’s competitive positioning. One distinguishes here four levels of analysis.
The performance monitoring roleMIS are not just statistics and data analysis. They have to be used as a MBO / Management by objectives tool. They help:
MIS as a barrier to entryAn important strategic advantage is "barriers to entry". There are numerous ways that a company, that has invested ininformation technology, can lever this investment to create, grow, or maintain barriers to entry.
Historical developmentThe role of business information systems has changed and expanded over the last four decades. In the incipient decade (1950s and '60s), “electronic data processing systems” could be affordedby only the largest organizations. They were used to record and store bookkeeping data such as journal entries, specializedjournals, and ledger accounts. This was strictly an operations support role. By the 1960s “management information systems” were used to generate a limited range of predefinedreports, including income statements (they were called P & L’s back then), balance sheets and sales reports. They weretrying to perform a decision making support role, but they were not up to the task. By the 1970s “decision support systems” were introduced. They were interactive in the sense thatthey allowed the user to choose between numerous options and configurations. Not only was the user allowed to customize outputs,they also could configure the programs to their specific needs. There was a cost though. As part of your mainframe leasingagreement, you typically had to pay to have an IBM system developer permanently on site. The main development in the 1980s was the introduction of decentralized computing. Instead of having onelarge mainframe computer for the entire enterprise, numerous PC’s were spread around the organization. This meant thatinstead of submitting a job to the computer department for batchprocessing and waiting for the experts to perform the procedure, each user had their own computer that they could customizefor their own purposes. Many poor souls fought with the vagaries of DOS protocols, BIOS functions, and DOS batch programming. As people became comfortable with their new skills, they discovered all the things their system was capable of. Computers,instead of creating a paperless society, as was expected, produced mountains of paper, most of it valueless. Mounds of reportswere generated just because it was possible to do so. This information overload was mitigated somewhat in the 1980s with theintroduction of “executive information systems”. They streamlined the process, giving the executiveexactly what they wanted, and only what they wanted. The 1980s also saw the first commercial application of artificial intelligence techniques in the form of “expertsystems”. These programs could give advice within a very limited subject area. The promise of decision makingsupport, first attempted in management information systems back in the 1960s, had step-by-step, come to fruition. The 1990s saw the introduction of “strategic information systems”. This was largely because ofdevelopments in the subject of strategic management by scholars like M. Porter, T Peters, J. Reise, C. Markides, and J. Barney inthe 1980s. Competitive advantage became a hot management topic and software developers were happy to provide the tools. The role of business information systems had now expanded to include strategic support. The latest step was thecommercialization of the internet, and the growth of intranets and extranets at the turn of the century. Future developmentsIn the next decade, it is likely that M. Hammer's reengineering principles will be incorporated further into business information systems. Hammer said that rather than organizing a firm intofunctional specialties (like production, accounting, marketing, etc.) and looking at the tasks that each function performs, weshould be looking at complete processes from materials acquisition, to production, to marketing and distribution. The firm shouldbe re-engineered into a series of processes. More and more software will utilize this approach. Ultimately there will be a fullyintegrated business information system in which all types of business information is seamlessly moved throughout the firm. In his book Agenda, he expanded the idea to include suppliers and distributors. The whole supply chain , from raw materials to final customer, should be seen as a single process. This is not unlike M.Porters theory of a “ value chain ” two decades earlier. Thedifference is that Hammer provides implementation procedures and these can be better translated into software algorithms thatwill drive extranets. More and more, business information systems will take on the roll of value chain support, rather thancompany support. The model of software tool representing this new tendency is the platform of suites " Business managementsystems p2p " also called " business workflow management " or still " Oberon BWA ". In the future, a time could come when these systems are moved from extranets to the internet. Customers will become a fullyintegrated participant in the value chain and will have the same information system access as manufacturers, suppliers,distributors, or facilitators. Some prestigious programs in Information systems:
Associations and GroupsSee Also:
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