Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 17 1 Information Management Systems MANAGEMENT Meeting and Exceeding Customer Expectations EIGHTH EDITION Prepared by Deborah Baker Texas Christian University

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 17 2 learning objectives 1. Describe the seven characteristics of useful information 2. Describe the three functions of an effective information system (IS) 3. Describe the five guidelines for establishing an information system (IS) 4. Describe the basic functions of a computerized information system (CIS) 5. Describe the two basic data processing modes

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 17 3 learning objectives (continued) 6. Discuss the various methods used for linking computer systems 7. Explain the purposes of decision support systems (DSSs) 8. Discuss the four challenges that must be met by managers of an information system

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 17 4 Information Management Systems 1 1 Information Technology Information Technology Manual and electronic means for creating and handling intellectual capital and facilitating organizational communication Information System Information System An organizational subsystem enabling an organization to share intellectual capital and create and maintain a working environment in which employees can exploit it

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 17 5 Characteristics of Useful Information 1 1 Understandable Relevant Concise Cost-effective Reliable Complete Timely

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 17 6 Information Management Systems. A subsystem within an organization’s IS designed to serve the specific information needs of all decision makers. A formal collection of processes that provides managers with the quality of information they need to make decisions, solve problems, implement change, and create effective and efficient working environments 2 2 Management Information System Management Information System

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 17 7 A Simplified MIS for an Oil Company 2 2

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 17 8 Functions of an Effective IS Assist organizations and their members in achieving their objectives 2. Facilitate information access 3. Facilitate information flow

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 17 9 Guidelines for Developing an IS 3 3. Involve users in the system design. Establish clear lines of authority and leadership for the IS personnel. Establish clear procedures for gathering, sorting, interpreting, displaying, storing, and distributing data and for interacting with the system. Ensure that technical specialists and the people they support understand the specialist’s function and roles. Build an IS and MIS staff of sufficient quantity and with skills needed to adequately provide services

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter Computerized Information Systems 4 4 Computerized Information System Computerized Information System An MIS built on computer hardware and software to collect and process data and store and disseminate the resulting information

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter Evolution of the Computer s: Used by banks to automate check processing 1960s: Used by banks to automate check processing 1970s/80s: Used to send and receive purchase orders, invoices, and shipping notifications 1980s:Enabled engineers to work on design specifications, drawings, etc. 1990s:Made electronic commerce affordable. Enabled company communication networks

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter The Basic Function of a CIS 4 4 Computer Operations System Programming Data Entry Application Program Development Application Program Maintenance Data Management Communications Management End-User Computing

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter Problems with End-User Computing Control 2. Duplication of software and hardware 3. Orderly, authorized access to the organization’s:  systems  database

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter Computer Hardware 4 4. Input devices. Control unit. Central processing unit (CPU). Storage devices. Output devices. Software

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter Data Processing Modes 5 5 Batch Processing Data are collected over time and entered into database according to prescribed policies and procedures Transactional Processing Data are received about a company’s ongoing operations and entered into data banks as each transaction occurs

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter Linking Computer Systems--Protocol 6 6 SMTP NNTP DNS FTP World Wide Web Usenet news groups server exchange file transfer HTML and HTTP

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter Decision Support System 7 7 Decision Support System Decision Support System A specialized variant of a CIS. Joins a manager’s experience, judgment, and intuition with the computer’s data access, display, and calculation processes. Allows managers to interact with linked programs and databases

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter Artificial Intelligence--AI 7 7 Artificial Intelligence Artificial Intelligence The capability of computers to learn, sense, and think for themselves. Voice-recognition systems. Speech synthesis programs. Computer vision. Neural networks

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter Group Decision Support System 7 7 Interact with group members Exchange information, data, ideas Brainstorming and problem solving Facilitate conferencing

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter Executive Information Systems 7 7. Forecasting. Strategic planning. Performing risk and cost–benefit analyses. Running business game simulations. Linear programming. Monitoring quality, productivity, ethics, and social responsibility efforts. Monitoring critical success factors and stakeholder expectations Executive uses include…

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter MIS Challenges 8 8. Overcoming resistance to the new and different. Enabling employees to use the system. Deciding what operations to keep and what to outsource. Evaluating the results of the system’s operations An organization must confront…

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter Gartner Group TCO Lifecycle Model 8 8 TCO Management TCO Management TCO Analysis TCO Analysis TCO Improvement TCO Improvement