Nicholas Djunaedi Putra Notes MIS

Management Information Systems: Managing the Digital Firm - Chapter 1 Summary

1. Information Systems in Business Today

- Transformation of Business: Information systems are essential for modern business operations,
helping to improve processes, customer engagement, and overall management.

- What is an Information System?: Comprises interrelated components that collect, process, and
distribute information. It involves management, organization, and technology dimensions, along with
complementary assets, to derive value.

- Academic Disciplines: Various fields, including computer science, management science, and
behavioral sciences, contribute to understanding information systems.

2. Video Cases

- Case Examples:

- Facebook and eBay's cloud data management.

- UPS's operations enhanced through digital devices.

- Rugby Football Union utilizing Big Data for fan engagement and tactical insights.

3. Impact of Information Systems

- Technological Trends: Adoption of cloud computing, Big Data, IoT, and mobile platforms.

- Management Strategies: Incorporation of online collaboration tools and business intelligence.

- Globalization: Information systems have decentralized operational costs and enhanced global trade
possibilities. 4. The Digital Firm

- Characteristics: Digital firms streamline core processes and relationships through digital networks,
allowing for improved flexibility and responsiveness.

- Strategic Objectives: Organizations leverage information systems for operational excellence, new o
erings, improved decision-making, and competitive advantage.

5. Information System Components

- Definition: An information system consists of data input, processing, output, and feedback loops.

- Dimensions: Information systems integrate organizational structures, management practices, and

technological infrastructure.
6. Organizational Impact

- Hierarchy: Information systems affect various levels of management and operational roles.

- Innovation: They enable new products and services, enhancing customer intimacy and fostering supplier
relationships.

7. Assets and Value Creation

- Complementary Assets: Successful implementation requires investments in management and

organizational capabilities alongside technology.

- Returns on Investment: Varies based on adopting suitable business models and complementary assets.

8. Integrative Approaches

- Sociotechnical Systems: An efective information system balances social and technical elements,
focusing on optimization for performance across organizations.

Overall, the chapter emphasizes the critical role of information systems in transforming modern
businesses, enhancing operational efficiency, and enabling strategic decision-making to thrive in a digital
economy.

Chapter 2: Global E-business and Collaboration Key

Concepts:

• Business Processes: These are flows of material, information, and knowledge composed of
activities and can be functional or cross-functional. They can be assets or liabilities for
businesses.

• Information Technology's Impact: IT improves business processes by increasing eficiency,

automating manual steps, enabling new processes, and enhancing decisionmaking speed.

Systems Serving Different Management Groups:

• Transaction Processing Systems (TPS): Serve operational managers with routine transaction
recording.

• Management Information Systems (MIS): Aim at middle management with reports on

performance based on TPS data.

• Decision Support Systems (DSS): Assist middle management in nonroutine decisionmaking with
both internal and external data.

• Executive Support Systems (ESS): Support senior management in non-routine, high-level

decisions.

Enterprise Applications:
 • Systems that link various functions within an enterprise, which include:

o Enterprise Systems: Centralize data across functions. o Supply Chain Management

(SCM) Systems: Manage relationships with suppliers.

o Customer Relationship Management (CRM) Systems: Handle all customerrelated

processes.

o Knowledge Management Systems (KMS): Capture and apply organizational knowledge.

Collaboration and Social Business:

• Collaboration is increasingly essential for productivity and innovation. It can be formal or

informal and leverages technology to enhance teamwork.

• Social Business: Uses social networking to enhance interactions among employees, customers,
and suppliers.

Tools and Technologies for Collaboration:

• Various tools like email, wikis, virtual worlds, and collaboration platforms facilitate teamwork.

• Checklist for Managers: A guide for evaluating collaboration and social software tools.

Information Systems Department:

• Typically led by a Chief Information O icer (CIO) with various other roles to manage security,
knowledge, privacy, and data.

Chapter 3: Managing the Digital Firm

Key Concepts
Features of Organizations
• Organizations have a hierarchical structure, accountability, and a focus on e iciency.
• They engage in routines and business processes, influenced by their culture, politics, and
environment.
Routines and Business Processes
• Defined as standard operating procedures and collections of these routines that formulate
business operations.

Organizational Behavior
 • Organizational politics can hinder change, while culture sets goals and product
definitions.
• The environment influences organizations reciprocally, and information systems act as
tools for scanning these environments. Disruptive Technologies
• Introduce significant change to industries, with examples like personal computers and the
Internet.
• Companies can be first movers or fast followers in utilizing these technologies.
Competitive Strategies (Porter's Model)
• Identifies five forces that shape competitive dynamics: traditional competitors, new
entrants, substitutes, customers, and suppliers.
• Suggests four generic strategies enabled by information technology: low-cost leadership,
product differentiation, niche focus, and strengthening customer/supplier intimacy.
Value Chain and Value Web
• The value chain represents activities adding value to products/services.
• The value web is an interconnected collection of value chains, emphasizing customer-
driven approaches. Network Economics
• Emphasizes low marginal costs for adding participants, highlighting the increasing value
of communities and platforms.
Challenges with Strategic Information Systems
• Maintaining competitive advantage in the face of replicable systems.
• Aligning IT with business objectives and managing transitions toward strategic systems.

Chapter 5: IT Infrastructure and Emerging Technologies

1. IT Infrastructure Definition:
o Comprises physical devices and software necessary for enterprise operations,
including computing platforms, physical facilities, and IT management services.
2. Evolution of IT Infrastructure:
o Stages are categorized as:
 Mainframe and minicomputer era (1959-present)
 Personal computer era (1981-present)
 Client/server era (1983-present)
 Enterprise computing era (1992-present)  Cloud and mobile computing
(2000-present)
3. Components of IT Infrastructure:
o Includes:
 Computer hardware platforms (desktops, servers, mobile devices)
 Operating system platforms
 Enterprise software applications
 Data management and storage solutions 

Networking/telecommunications platforms
4. Current Trends in Computer Hardware:
o Emphasis on mobile digital platforms, quantum computing, virtualization, cloud
computing, and green IT practices aimed at reducing power consumption.
5. Current Trends in Software Platforms:
o Includes the rise of open-source software, web services, service oriented
architecture (SOA), and cloud services.

6. Challenges in Managing IT Infrastructure:

o Organizations face issues like under-investment or over-investment, scalability,
and the need for new policies. Decisions can be centralized or decentralized.
7. Investment Strategies:
 o Considerations for making wise infrastructure investments include the total cost
of ownership (TCO), market demand, and competitive pressure.
Chapter 6: Foundations of Business Intelligence: Databases and Information Management
Learning Objectives:
1. Managing Data Issues in Traditional File Environments:
o Problems include data redundancy, inconsistency, program-data dependence, poor
security, and limited data sharing.
2. Capabilities of Database Management Systems (DBMS):
o DBMS centralizes data, controls redundancy, and allows for efficient
management. o Relational DBMS uses tables to represent data, making it
powerful for organizing information.
3. Tools and Technologies for Data Access:
o Data warehouses, data marts, Hadoop, and analytic platforms assist in analyzing
data for business performance.
4. Importance of Information Policies:
o Establishes frameworks for data administration, governance, and quality
assurance essential for maintaining data integrity.

Key Topics:
• Traditional File Environment Problems:
o Separate file maintenance by departments leads to redundancy and inconsistency.
• Database Management Systems:
o DBMS serves multiple applications and separates the logical and physical views
of data.
• Relational DBMS:
o Organizes data in two-dimensional tables, supporting operations such as
SELECT, JOIN, and PROJECT to retrieve and manipulate data.
• Big Data Challenges:
 o Refers to vast amounts of unstructured/semi-structured data, requiring advanced
tools for management and analysis.
• Business Intelligence Infrastructure:
o Data warehouses and data marts serve as centralized repositories for analysis. o
Technologies like Hadoop provide capabilities for processing large data
sets.
Analytical Tools:
• OLAP (Online Analytical Processing):
o Supports multidimensional data analysis for quick query responses.
• Data Mining:
o Identifies patterns and relationships in data to predict future behaviors.
• Text and Web Mining:
o Extracts insights from unstructured data and analyzes web traffic for patterns.
Data Management Practices:
• Establishing an Information Policy:
o Rules for managing, sharing, and standardizing data within an organization.
• Ensuring Data Quality:
o Critical to maintain accurate data, with methods for identifying and correcting
faulty data.
Case Studies:
• BAE Systems:
o Implemented integrated software for effective data management.
• Societe Generale:
o Developed an intelligent transaction processing system to streamline operations.

Chapter 7: Telecommunications, the Internet, and Wireless Technology:

Learning Objectives
1. Principal components of telecommunications: Understanding the major elements and key
networking technologies.
2. Types of networks: Familiarity with different network types and their characteristics.
 3. Internet technology: How the Internet works and its role in communication and e-
business.
4. Wireless technologies: Overview of prominent technologies and standards for wireless
networking. Key Topics Covered
• Video Cases: Real-world applications of collaboration and efficiency in business settings,
such as telepresence and virtual collaboration tools.
• Challenges in Mining Operations: Use of Wi-Fi and RFID technologies to improve e
iciency and resource management in difficult conditions. Networking Concepts
• Convergence of Networks: Merging of telephone and computer networks using Internet
standards.
• Broadband Access: High-speed Internet access prevalent among a large percentage of
users in the U.S.
Network Definitions and Components
• A computer network consists of multiple connected computers, including clients, servers,
interfaces, and operating systems.
• Different types of networks include: o Local Area Networks (LANs) o Wide
Area Networks (WANs) o Metropolitan Area Networks (MANs)
Key Technologies
• Client/Server Computing: A distributed computing model.
• Packet Switching: Efficient method for transmitting data by dividing messages into
packets.
• TCP/IP Protocol: Fundamental for Internet communication, with various layers governing
data transmission. Internet Overview
• Each internet-connected device has an IP address, and the Domain Name System (DNS)
converts these IP addresses into user-friendly domain names.
• Internet Service Providers (ISPs): Provide various connection types including DSL,
cable, and satellite. Internet Architecture
• Governed by standards established by bodies like ICANN and W3C, involving regional
providers and high-speed backbone networks. Emerging Issues
• Net Neutrality Debate: Discussion on the implications of tiered service models and the
importance of maintaining equal access for all users. Future Technologies
 • IPv6: New addressing scheme which will provide significantly more IP addresses.
• Internet2: A consortium testing advanced networking technologies.

Internet Services
• Various communication tools such as email, VoIP, and VPNs.
• Web Technologies: Including HTML, HTTP, and the evolution of the web from Web 2.0
to future concepts like Web 3.0.
Wireless Technologies
• Bluetooth: Short-range communication.
• Wi-Fi: Standards for wireless LAN and Internet connectivity.
• RFID: Use of tags for tracking items and automation.
• Wireless Sensor Networks: Used for monitoring and data collection in various
applications.

Chap 9
Key Concepts
Enterprise Systems
• ERP Systems: These are integrated suites of software designed to manage and streamline
all of a company's operations through a central database. They improve data sharing and
operational efficiency by providing real-time information across departments (e.g.,
finance, HR, production). Supply Chain Management
• Supply Chain: A network involved in production, distribution of materials, and products.
This involves upstream (suppliers), downstream (customers), and internal processes.
• Efficiency: Inefficiencies in the supply chain can lead to significant operational costs,
with strategies such as just-in-time inventory helping to address this by reducing excess
stock.
Demand-Driven Supply Chains
• Push vs. Pull Models: Traditional supply chains often operate on a push model where
inventory is produced based on forecasts. In contrast, a pull model responds directly to
customer demand, leading to more responsiveness and less waste.
Customer Relationship Management (CRM)
• CRM Definition: CRM systems gather and analyze customer interactions and data
throughout the customer lifecycle, aiming to improve relationships, customer retention,
and sales.
• Operational vs. Analytical CRM: Operational CRM focuses on customer engagement and
management (like sales and service), while analytical CRM analyzes customer data for
insights (like customer behavior and lifetime value).
Business Value
• Enterprise Systems: They increase operational efficiency, support decisionmaking, enable
rapid response to customer needs, and enhance overall performance evaluation.
• Supply Chain Management Value: Proper management can align supply with demand,
reduce inventory costs, speed up delivery, and ultimately increase sales.
Challenges of Enterprise Applications
• High Costs and Complexity: The implementation of ERP systems can be very costly and
complex, requiring time and resources to train staff and integrate the systems.
• Technology and Business Process Changes: Businesses often face challenges in adapting
to new technology and changing existing processes to fit new systems.
Next-Generation Enterprise Applications
• Flexibility and Integration: Modern enterprise applications are increasingly designed to
be flexible and integrate with existing systems, often leveraging cloud technology and
mobile platforms.
• Social CRM and Business Intelligence: Incorporating social media insights and advanced
analytics into CRM systems to enhance marketing strategies and customer engagement.