MANAGEMENT INFORMATION SYSTEMS

(6TH Edition)
A Book Review by Jimmy D. Bucar
PhD-HRM Student
pms.jimmy@gmail.com

This article is a descriptive review of the content of the textbook entitled "Management
Information Systems" Sixth Edition by Effy Oz. It is a comprehensive source of information for Ph.D.
students who look for scholarly information on how to effectively manage an organization with the
aid of Information Systems (ISs). Enriched with real-life stories and comprehensive discussions, this
book truly captured my heart and opened my eyes to the paramount importance of Information
Technology in both Educational and Human Resources Management. Reading the pages of this
book, made me realized the wisdom and depth of understanding of the author. It is truly
commendable for someone yearning for a thorough knowledge of the MIS course.

This book is a product of Effy Oz experience and expertise. Effy Oz is a former professor
of Pennsylvania State University teaching Management Science and Information Systems. Oz is a
book publisher and research presenter on various forums. He wrote the best-selling textbooks
covering topics in Management Information Systems, IT ethics, and many others. At one point in
his life, he served as a member of the editorial boards of Encyclopedia of Information Systems (EIS)
and other scholarly journals. He obtained his Masters degree in Business Administration from
Hebrew University and Doctor of Business Administration from Boston University.

MIS textbook is composed of five parts covering the following topics: (1) the Information
Age, (2) Information Technology, (3) Web-Enabled Commerce, (4) Decision Support and Business
Intelligence, and (5) Planning, Acquisition, and Controls. Each of these parts contains topics which
were discussed comprehensively in this textbook. Part one (The Information Age) covers the
overview of business information systems, strategic uses of information systems and business
functions and supply chains. Part two (Information Technology) includes topics such as business
hardware, business software, business networks and telecommunications, and databases and data
warehouses. Part three (Web-Enabled Enterprise) tackles about the web-enabled enterprise and
challenges of global information systems. Part four (Decision Support and Business Intelligence)
provides topics on decision support and expert systems and business intelligence and knowledge
management. Lastly, part five which tackles about planning, acquisition, and controls covers the

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following topics: systems planning and development, choices in systems acquisition and risks,
security and disaster recovery.

The first chapter of the book tackles on Business Information Systems discussing the
importance of IT in the field of business and management and also in ones career. It also addresses
ethical and societal concerns on the acquisition, storage, and report of confidential details. Evidently,
IT pervades in almost every aspect of human life. In fact, nowadays people carry their phones most
of the time, do their tasks through computers and use electronic gadgets for entertainment. These
are all products of digital technology which uses binary digits such as zero and one which leads to
quick and accurate storing, processing, and communicating information of any type. This trend is
totally different from the culture several years ago. In todays digital age, there is already a necessity
that every professional regardless of field of expertise and interest needs to develop and use IT
meaningfully to their advantage.

The prevalence of computer-based information systems in all transactions leads to the

necessity of using IT strategically in almost every aspect of business and organizational management,
for example in problem-solving and decision-making. Computer-based information systems follow
the Input-Process-Output Design wherein it starts with the acceptance of the data or raw material
(i.e. input), processes it, and ultimately come up with a product or output. The data are processed or
manipulated using quantitative or quantitative analysis with the help of software such as Microsoft
Excel and turned it into meaningful information that can be used in making reports and
forecasting. As defined in the book, a system is a set of parts that work as one to attain a goal. IS
comprises hardware, software, data, people, and procedures. All of these components are geared
towards producing valuable information from the gathered data.

Undoubtedly, information systems are indispensable in many business transactions such as

accounting, finance marketing, and human resources. ISs enable businesses to function at its
optimum level. For example, for Human Resource Managers, IS helps them keep a clean, secure,
accurate and updated information about their employees which can aid them in their performance
evaluation. The importance of IS in every company gives a brighter future for IT professionals who
wish to work in this field. Besides the fact that IT has many positive contributions to the business
industry, it also created various societal concerns that need to be addressed properly. Some of these
are privacy issues, phishing and identity theft, spam and many others that already affected millions
because, in spite of the advancement in technology, there is no strict regulation in the cyberspace.

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 The second chapter tackles the Strategic Uses of Information Technology. It
comprehensively explained various approaches on how to use Information Systems for strategic and
competitive advantage. It also teaches about strategic thinking. An Information System (IS) that is
used to maximize company strengths (i.e. strategic advantage) is called as Strategic Information Systems
or SIS. It creates and seizes various opportunities for the whole company/organization. Some of
the identified strategies in establishing advantages are: cost reduction, raising barriers to competitors,
establishing high switching costs, new products, differentiating products, enhancing products,
alliances, and locking suppliers. Creating standards also establishes a strategic advantage in software
industry just like the case of Microsoft Company which was accused of unfair trade practices in
controlling the market by establishing standards. Another way to gain a strategic and competitive
advantage is through re-engineering which involves the adoption of new machinery and elimination
of management layers. It is a process of designing a business process from scratch to accommodate
new information systems. Since strategic advantages from ISs are good only for a short period due
to issues of imitation from competitors, finding new opportunities already becomes a lifetime
challenge. In this case, for an organization or company to maintain a strategic advantage, it must
continually develop new features to dominate the market. However, companies must also be
mindful of the bleeding edge the undesirable result of a failed innovation effort.

The third chapter entitled Business Functions and Supply Chains deals with business
services, supply chains, and the systems that support management of supply chains in various
industries. It tackles effective and efficient ways to use IT to help manage a business, whether there
is a need to order inventory and track sales, generate financial statements, or automate payroll
systems. This chapter includes discussion on how supply chain management systems serve the whole
enterprises. Information systems serve various purposes throughout an organization in the
functional business areas in-house services that support an organizations primary business. These areas
include, but are not limited to accounting, finance, marketing, and human resources. In the human resources
management, the use of Information Systems expedites staff selection and record-keeping. Today,
big companies especially contact centers like Convergys recruit potential employees through the
Web. Application is done through their career sites or by simply using job search engines (e.g.
jobstreet). In performance appraisal, some companies and private universities use evaluation software
to easily track the efficiency and productivity of their employees.

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 The next chapter tackles about Business Hardware. Major hardware components (i.e.
input/output devices, storage, internal memory, and central processing unit) of a computer system
and their functions are clearly detailed in this chapter including the classification of computers into
major categories (supercomputers, mainframe, midrange, and microcomputers) with their strengths
and weaknesses identified. It gives insights on the criteria in purchasing a computer or related
devices for company use. The common variables to consider prior purchasing are: the equipments
power, expansion slots, the number and type of external ports, the monitor type and resolution, ergonomics,
compatibility, hardware footprint, the reliability of the vendor, the warranty policy, and the support given after the
warranty expires, power consumption and noise, and cost). Lastly, this chapter tackles potential health hazards
in the use of computers. Some of these health risks to users are carpal tunnel syndrome and repetitive-stress
injuries caused by the repetitive use of the keyboard over long time periods. Today, manufacturers of computer
equipment pay more attention to health hazards and try to design devices ergonomically.

The fifth chapter of this book talks about Business Software. The software is a part of a
computer system that consists of data as computer instructions, in contrast to the physical hardware
from which the system is built. In simple terms, software refers to computer programs which are
classified as either system or application. System software (i.e. Operating Systems) manages
computer resources, such as CPU time and memory allocation, and carries out routine operations,
such as translation and data communication. On the other hand, Application software or End-user
programs is a computer program designed to perform a group of coordinated functions, tasks, or
activities for the benefit of the user such as database programs, word processors, web browsers and
Spreadsheets. Furthermore, this chapter discusses also Programming Languages such as VB.Net,
Java, Python, PHP, SQL, etc. Programming languages and software development tools develop
software. Due to the popularity of the internet, there is now an increasing amount of software linked
to the Internet. Today, there are plenty of open source software on the web that is already adopted
by a growing number of businesses and governments. Linux, a robust operating system, is a good
example of an operating system produced by this open source practice.

The Chapter 6 of this book deals with Business Networks and Telecommunications.
It covers on networking technologies used in businesses, latest wireless technologies that enable
people to access the Web while away from the office or home, and detailed discussion of Radio
Frequency Identification (RFID) technologies. Telecommunication directly involves sharing
information over a distance, which has made globalization in business possible. It occurs when the

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exchange of information between communication participants includes the use of technology.
Telecommunications technology has changed the business environment. Businesspeople are
becoming more mobile due to the availability of cell sites in various places in the Philippines. In
every transaction, they use cell phones for both voice and data communication. Discussed also in
this chapter, are essential terms related to telecommunications that should also be learned by
professionals for them to participate in decision-making when selecting networking equipment and
services. Some of these concepts are bandwidth and media. A communications medium is the
physical means that transports the signal, such as a copper wire telephone line, a television cable, or
radio waves. The bandwidth of the medium is the speed at which data is communicated, which is
also called the transmission rate or simply the bit rate. It is measured in bits per second (bps).

Networks can be classified according to reach and complexity. These classifications are:
Local Area Network (LAN) found within an office or a campus, Metropolitan Area Network
(MAN) a connection of several LANs within a radius of 50 km, Wide Area Network (WAN) when
computers communicate over longer distances, and Personal Area Networks (PANs) which connect
individual devices at short range. Networks have protocols sets of rules to which all devices on a
network must adhere. For example, internet communication is governed by TCP/IP. Much like
hardware, telecommunications technologies are merging. The same device can use several different
networks simultaneously, such as cellular telephone networks, the internet, and television broadcasts.
At present, there is increasing numbers of employees telecommuting; they only work at home.
However, it does not serve basic human needs such as socializing during lunch break and the clear
separation between work and family obligations.

Chapter 7 deals with issues on Databases and Data Warehouses; this is the last chapter
of Part II which focuses on Information Technology. A database is a computer software application
that interacts with the user, other applications, and the database itself to capture and analyze data.
Data Warehouse, on the other hand, refers to a vast store of data accumulated from a wide range of
sources within a company and used to guide management decisions. This chapter answers the
question on why business professionals should know about Data Management with emphasis on
Traditional File Approach and Database Approach, Database Models (the Relation Model and
Object-Oriented Model), Relational Operations, Data Modeling, Databases on the Web, and Data
Warehousing. Moreover, it provides discussions on ethical and societal issues faced today such as
privacy invasion which poses a threat to everyone.

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 The next part of the book tackles about Web-Enabled Commerce divided into two topics:
The Web-Enabled Enterprise and Challenges of Global Information Systems. Chapter 8
gives a thorough discussion of relevant Web technologies for business operations. Chapter 9,
Challenges of Global Information Systems, highlights cultural and other challenges
organizations face in planning and using the Web and international information systems.

Part IV (Decision Support and Business Intelligence) covers Chapter 10 (Decision Support
and Expert Systems) and Chapter 11 (Business Intelligence and Knowledge Management). It
provides a view of state-of-the-art decision support and expert systems and business intelligence in
Business intelligence applications, such as data mining and online analytical processing, which are
essential tools in a growing number of businesses. Plenty of examples are provided to demonstrate
their power.

The last part deals with Planning, Acquisition, and Controls to ensure successful and
timely development and implementation, as well as their security. It covers topics on System
Planning and Development (Chapter 12), Choices in Systems in Systems Acquisition (Chapter 13),
Risks, Security, and Disaster Recovery (Chapter 14). Chapter 12 discusses how professionals plan
information systems putting emphasis on traditional and agile methods of software development.
Chapter 13 presents alternative acquisition methods to in-house development: outsourcing,
purchased applications, end-user systems development, and software as a service. Chapter 14
discusses the risks that information systems face and ways to minimize them, as well as approaches
to recovering from disasters.

Reading this book is truly invigorating. As I scan every chapter, I learned a lot of things
which cannot be absorbed when I am only listening to classroom reports. It is like Effy Oz was
doing a lecture in front of me. In general, it opens my mind on the applicability of Information
System in every company. Discussions on ethical issues are also very commendable. I truly
appreciate the content of this book.