Management Information System

• Information systems are intensively used in business today and large investments are made in information technology.
• Wise investment in information technology can help a firm outperform competitors.
• Information systems are transforming business with the use of wireless cell phone accounts, smartphones, texting, e-mail, and online conferencing becoming essential tools of business.
• IT governance includes the strategy and policies for using information technology within an organization.
• IT governance specifies the decision rights and framework for accountability to ensure that the use of information technology supports the organization’s strategies and objectives.
• Collaboration and social technologies can be classified in terms of whether they support interactions at the same or different time or place, and whether these interactions are remote or collocated.
• One hundred twenty-two million people in the United States access the Internet using mobile devices in 2012, which is half of the total Internet user population.
• There are 242 million cell phone subscribers in the United States, and nearly 5 billion worldwide.
• The annual growth of digital information is estimated at 5 exabytes annually, equivalent to 37,000 new Libraries of Congress.
• Three interrelated changes in the technology area are the emerging mobile digital platform, the growing business use of "big data," and the growth in "cloud computing," where more and more business software runs over the Internet.
• Cloud computing is a flexible collection of computers on the Internet that begins to perform tasks traditionally performed on corporate computers.
• Major business applications are delivered online as an Internet service (Software as a Service, or SaaS) in cloud computing.
• Businesses must deal with many different pieces of information about suppliers, customers, employees, invoices, and payments, and of course their products and services.
• Businesses must organize work activities that use this information to operate efficiently and enhance the overall performance of the firm.
• Information systems make it possible for firms to manage all their information, make better decisions, and improve the execution of their business processes.
• Business processes refer to the way work is organized, coordinated, and focused to produce a valuable product or service.
• Business processes are the collection of activities required to produce a product or service.
• These activities are supported by flows of material, information, and knowledge among the participants in business processes.
• Business processes also refer to the unique ways in which organizations coordinate work, information, and knowledge, and the ways in which management chooses to coordinate work.
• Every business can be seen as a collection of business processes, some of which are part of larger encompassing processes.
• Examples of functional business processes include manufacturing and production, sales and marketing, finance and accounting, and human resources.
• Many business processes are tied to a specific functional area.
• Business processes that cross many different functional areas and require coordination across departments are often complex and require the close coordination of major functional groups in a firm.
• Information systems automate many steps in business processes that were formerly performed manually, such as checking a client’s credit, or generating an invoice and shipping order.
• New technology can actually change the flow of information, making it possible for many more people to access and share information, replacing sequential steps with tasks that can be performed simultaneously, and eliminating delays in decision making.
• A typical business organization has systems supporting processes for each of the major business functions — sales and marketing, manufacturing and production, finance and accounting, and human resources.
• A business firm has systems to support different groups or levels of management.
• Businesses look for insights from huge volumes of data from Web traffic, e-mail messages, social media content, and machines (sensors) that require new data management tools to capture, store, and analyze in the area of "big data."
• A mobile digital platform is emerging to compete with the PC as a business system, with the Apple iPhone and Android mobile devices able to download hundreds of thousands of applications to support collaboration, location-based services, and communication with colleagues.
• Co-creation of business value sources from products to solutions and experiences, and from internal sources to networks of suppliers and collaboration with customers.
• Supply chains and product development become more global and collaborative; customer interactions help firms define new products and services.
• Globalization presents both challenges and opportunities for business firms.
• A digital firm is one in which nearly all of the organization’s significant business relationships with customers, suppliers, and employees are digitally enabled and mediated.
• Core business processes are accomplished through digital networks spanning the entire organization or linking multiple organizations.
• Business processes refer to the set of logically related tasks and behaviors that organizations develop over time to produce specific business results and the unique manner in which these activities are organized and coordinated.
• Management Information System Strategic Business Objectives of Information Systems.
• More than 21 million managers and 15 4 million workers in the labor force rely on information systems to conduct business.
• Information systems are essential for conducting day-to-day business in the United States and most other advanced countries, as well as achieving strategic business objectives.
• Businesses continuously seek to improve the efficiency of their operations in order to achieve higher profitability.
• Information systems and technologies are some of the most important tools available to managers for achieving higher levels of efficiency and productivity in business operations, especially when coupled with changes in business practices and management behavior.