Chapter 1 Introduction to the Computer-Based Information System MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Chapter 1 Introduction to the Computer-Based Information System 1-1 Copyright 2001 Prentice-Hall, Inc. 1

Information Management The most valuable resource 1-2 2

} Five Main Resources Personnel Material Machines Money (including facilities and energy) Money Information (and data) Physical } Conceptual 1-3 3

How Resources are Managed Acquire Assemble, or prepare Maximize use Replace 1-4 4

Factors Stimulating Interest in Information Management Increasing complexity of business activity International economy Worldwide competition Increasing complexity of technology Shrinking time frames Social constraints Improved computer capabilities Size Speed 1-5 4

Who are the Users? Managers Nonmanagers Persons & organizations in the firm’s environment 1-6 6

The Influence of Management Level on Information Source Environmental Strategic planning level Management control level Operational control level Internal 1-7 9

The Influence of Management Level on Information Form Summary Strategic planning level Management control level Operational control level Detail 1-8 9

Managers Can Be Found on All Levels and in All Functional Areas of the Firm Strategic planning level Management Control Level Operational Control Level Finance Function Human Resources Function Information Services Function Manufacturing Function Marketing Function 1-9 11

What Managers do -- Fayol’s Functions Strategic Planning Level Management Control Level Operational Control Level 1-10 12

What Managers do -- Mintzberg’s Roles Interpersonal roles Figurehead Leader Liaison Informational roles Monitor Disseminator Spokesperson Decisional roles Entrepreneur Disturbance handler Resource allocator Negotiator 1-11 13

Management Skills Communications Problem solving How can an information specialist help? 1-12 14

Problem Solving Information Comes in Many Forms Internal Sources External Sources Written Media Oral Media Tours Voice Mail Periodicals Business Meals Scheduled Meetings Telephone Computer Reports Noncomputer reports Letters & Memos Electronic mail Unscheduled Meetings Problem Solving 1-13

Management Knowledge Computer literacy Information literacy What’s the difference? 1-14 16

System Components Component parts of a system that can control its own operations Objectives Control mechanism Input Transformation Output 1-15 17

Open-Loop System Input Transformation Output 1-16 18

Open versus Closed Systems Open system Connected to its environment by means of resource flows Closed system Not connected to its environment 1-17 19

Systems Can Be Composed of Subsystems or Elemental Parts Part C Subsystem A Subsystem B Subsystem B-1 Subsystem A-1 Subsystem A-2 Subsystem B-2 Subsystem A-3 Elemental part B1 1-18

Physical and Conceptual Systems Physical system The business firm Composed of physical resources Conceptual system Represents a physical system Uses conceptual resources Information Data 1-19 21

A Systems View Business operations are embedded within a larger environmental setting Reduces complexity Requires good objectives Emphasizes working together Acknowledges interconnections Values feedback 1-20 22

Data and Information Information processor Key element in the conceptual system Computer Noncomputer Combination Data is the raw material transformed into information 1-21

Evolution of the CBIS Data Processing (DP) Management Information Systems (MIS) 1964 IBM promoted the concept as a means of selling disk files and terminals Decision Support Systems (DSS) 1971 Text book’s distinction: MIS: Organizational/group - general DSS: Individual - specific Office Automation (OA) 1964 Artificial Intelligence (AI)/ Expert Systems (ES) - 1990s Heavy investment by businesses 1-22 24

The CBIS Model Decisions (CBIS) Problem Information Problem Solution Computer-based Information System (CBIS) Accounting Information System Problem Information Management Information System Decisions Decision Support Systems Problem Solution The Virtual Office Knowledge-based Systems 1-23 25

Information Services Information specialists have full-time responsibility for developing and maintaining computer-based systems 1-24 26

Traditional Communication Chain Database Administrator Systems Analyst User Operator Programmer Computer Network Specialist 1-25 27

End-User Computing (EUC) Development of all or part of applications Information specialists act as consultants Stimulants to EUC Increased computer literacy IS backlog Low-cost hardware (the PC) Prewritten software (electronic spreadsheets) 1-26 28

IS and EUC The End-User Computing Communication Chain Information Specialists Support User Communication Computer 1-27 29

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 1-28 30

Achieving the CBIS 1-29 31

Reengineering the CBIS Business Process Reengineering (BPR) Reworking systems Good system features retained Becoming development methodology of choice 1-30

Roles Played by the Manager and by the Information Specialist Phase Manager Information Specialist Planning Define problem Support Analysis Control System Study Design Control Design system Implementation Control Implement system Use Control Make available 1-31

Summary Information is one of five main resources Computer output used by managers and nonmanagers A system is an integration of elements working toward an objective Physical Conceptual Data vs. Information 1-32

Summary [cont.] CBIS composed of various components AIS MIS DSS Virtual office Knowledge-based systems End-user computing trends CBIS development 1-33