Management Information Systems, 10/e Raymond McLeod Jr. and George P. Schell © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Part I: Essential Concepts Chapter 1 Introduction to Information Systems © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Management Information Systems, 10/e Raymond McLeod and George Schell Learning Objectives Understand how computer hardware has evolved to its present level of sophistication. Know the basics of computer and communications architectures. Understand the distinction between physical and virtual systems. Describe how business applications have evolved from an initial emphasis on accounting data to the current emphasis on information for problem solving. © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Learning Objectives (Cont’d) Understand what enterprise resource planning systems are and the reasons for their popularity. Know how to tailor information systems to managers based on where they are located in the organizational structure and what they do. Understand the relationship between problem solving and decision making and know the basic problem-solving steps. Know what innovations to expect in information technology. © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

History of Information Systems Evolution in Computer Hardware Mainframe Multitasking Smaller Computers Minicomputers Microcomputers Personal computers (PC) © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Management Information Systems, 10/e Raymond McLeod and George Schell Multitasking • IBM revolutionized the computer industry in the mid-1960s by introducing the IBM System/360 line of computers • These computers were the first to perform multiple processing tasks concurrently © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Management Information Systems, 10/e Raymond McLeod and George Schell Smaller Computers The first small-scale systems, called minicomputers, were smaller and less powerful but could handle processing for small organizations more cheaply Even smaller microcomputers designed for individual use were later developed, first by Apple and Tandy Corp. In 1982, IBM introduced the first personal computer, or PC, in 1982, which has since become the standard for individual computing © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Management Information Systems, 10/e Raymond McLeod and George Schell © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Introduction to Computer Architecture Hardware-processor, keyboard, monitor, mouse, printer, etc. Software-application, operating, etc. Used to support managerial decision making. © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Management Information Systems, 10/e Raymond McLeod and George Schell © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Management Information Systems, 10/e Raymond McLeod and George Schell Computer Hardware The processor manages the input and output devices, data storage devices, and operations on the data The central processing unit (CPU) controls all the other components Two types of memory are: Random access memory (RAM) acts as the temporary workspace for the CPU Permanent data storage devices such as CDROM, floppy and hard disk drives © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Management Information Systems, 10/e Raymond McLeod and George Schell © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Introduction to Communication Architecture (Cont’d) Modem-hardware device that modulates the digital signals from a computer into analog signals (telephone system), and vice versa. Direct communication standards Between computers is much faster. Wireless networks © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Figure 1.5 Communications Architecture © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

The Evolution in Computer Applications Information systems are virtual systems that enable management to control the operations of the physical system of the firm. Physical system-tangible resources such as materials, personnel, machines, and money. Virtual system-information resources that are used to represent the physical system. © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Figure 1.6 The Physical System of the Firm © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

The Evolution of Computer Applications (Cont’d) Open system is a firm’s physical system that interacts with its environment by means of physical resource flows. Closed system is one that does not communicate with its environment. © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Transaction Processing Systems Data-facts and figures that are generally unusable due to their large volume and unrefined nature. Information-processed data that is meaningful; tells users something. Transaction Processing System (TPS) processes data that reflects the activities of the firm. © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Figure 1.7 A Model of a Transaction Processing System © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Management Information Systems Management Information System (MIS) is a computer-based system that makes information available to users with similar needs. Report-writing software produces both periodic and special reports. Mathematical models produces information as a simulation of the firm’s operations. © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Management Information Systems, 10/e Raymond McLeod and George Schell Figure 1.8 A MIS Model © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Management Information Systems (Cont’d) Information provided by MIS describes the firm or one of its major systems. What has happened in the past. What is happening now. What is likely to happen in the future. Interorganizational information system (IOS)–is formed when a firm interacts with others, such as suppliers. © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Virtual Office Systems Office automation-use of electronics to facilitate communication. Personal productivity systems-use technology to self-manage clerical tasks such as calendars, address books, etc. Virtual office-performing office activities independent of a particular physical location. © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Decision Support Systems Decision Support System (DSS)–assists management in solving a problem. Groupware–group-oriented software. Group decision support system (GDSS) combines groupware and the DSS. Artificial intelligence (AI)–the science of providing computers with human intelligence. © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Management Information Systems, 10/e Raymond McLeod and George Schell Figure 1.9 A DSS Model © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Enterprise Resource Planning Systems Enterprise Resource Planning System (ERP) is a computer-based system that enables the management of all of the firm’s resources on an organization-wide basis. Y2K complaint SAP–ERP Provider © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

MANAGERS AS INFORMATION SYSTEM USERS Managers exist at various managerial levels and within various business areas of the firm What level an IS is developed for influences how it operates (see Figure 1.11) The 3 primary management levels are (see Figure 1.12): 1. Strategic planning level 2. Management control level 3. Operational control level © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Management Information Systems, 10/e Raymond McLeod and George Schell © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Management Information Systems, 10/e Raymond McLeod and George Schell © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Information System Users First users were clerical users on TPSs. MISs added problem-solvers as users. Managerial Levels Strategic planning level Management control level Operational control level © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Management Information Systems, 10/e Raymond McLeod and George Schell Managerial Functions (Managers do the following): Plan what they are to do Organize to meet the plan Staff their organization with resources Direct them to execute the plan Control the resources, keeping them on course (see Figure 1.13) Managerial Roles: Mintzberg’s framework is made of 10 roles that managers play, grouped into interpersonal, informational, and decisional activities (see Table 1.1) © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Management Information Systems, 10/e Raymond McLeod and George Schell Figure 1.12 Management Level May Influence the Relative Emphasis on the Management Function © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Management Information Systems, 10/e Raymond McLeod and George Schell © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

THE ROLE OF INFORMATION IN MANAGEMENT PROBLEM SOLVING © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Problem Solving and Decision Making Problem– condition or event that is harmful or potentially harmful to a firm or that is beneficial or potentially beneficial. Solution–outcome of the problem-solving activity. Decision–a particular selected course of action. © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Problem-Solving Phases The four phases are: Intelligence activity. Search the environment for conditions calling for a solution. Design activity. Invent, develop, and analyze possible courses of action. Choice activity. Select a particular course of action from those available. Review activity. Assess past choices. © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Figure 1.13 Information Supports Each Problem-Solving Phase © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Management Information Systems, 10/e Raymond McLeod and George Schell Management Skills © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Problem Solving Information Comes in Many Forms © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Management Information Systems, 10/e Raymond McLeod and George Schell Management Knowledge Computer literacy Information literacy What’s the difference? © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Management Information Systems, 10/e Raymond McLeod and George Schell The CBIS Model © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Management Information Systems, 10/e Raymond McLeod and George Schell Information Services Information specialists have full-time responsibility for developing and maintaining computer-based systems © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Traditional Communication Chain © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Management Information Systems, 10/e Raymond McLeod and George Schell Justifying the CBIS Justify in the same manner as any other large investment • Economic Cost reduction Reduced inventory investment Increased productivity (CAD/CAM) Noneconomic Perceived value © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Management Information Systems, 10/e Raymond McLeod and George Schell Achieving the CBIS © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Reengineering the CBIS Business Process Reengineering (BPR) Reworking systems Good system features retained Becoming development methodology of choice © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

Roles Played by the Manager and by the Information Specialist © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell

The Future of Information Technology Reduced cost and increased power of both computers and communications. Computers and communications are converging, i.e., cell phones with browsers. Future computing will be low cost, small in size, mobile, and connected. © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell