1. MANAGEMENT INFORMATION SYSTEMS
Unit 1
Introduction to the Computer-Based
Information System
&
Using Information Technology for Competitive Advantage
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2. 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
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3. Information Management
The most valuable resource
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4. } Five Main Resources Personnel Material Machines Money
(including facilities and energy)
Money
Information (and data)
Physical }
Conceptual
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5. How Resources are Managed
Acquire
Assemble, or prepare
Maximize use
Replace
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6. 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
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7. Who are the Users? Managers Nonmanagers
Persons & organizations in the firm’s environment
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8. The Influence of Management Level on Information Source
Environmental
Strategic planning level
Management control level
Operational control level
Internal
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9. The Influence of Management Level on Information Form
Summary
Strategic planning level
Management control level
Operational control level
Detail
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10. 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
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11. What Managers do -- Fayol’s Functions
Strategic
Planning Level
Management
Control Level
Operational
Control Level
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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
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13. Management Skills Communications Problem solving
How can an information specialist help?
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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
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15. Management Knowledge Computer literacy Information literacy
What’s the difference?
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16. System Components Component parts of a system that can control its own operations
Objectives
Control mechanism
Input
Transformation
Output
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17. Open-Loop System
Input
Transformation
Output
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18. Open versus Closed Systems
Open system
Connected to its environment by means of resource flows
Closed system
Not connected to its environment
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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
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20. Physical and Conceptual Systems
Physical system
The business firm
Composed of physical resources
Conceptual system
Represents a physical system
Uses conceptual resources
Information
Data
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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
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22. Data and Information Information processor
Key element in the conceptual system
Computer
Noncomputer
Combination
Data is the raw material transformed into information
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23. 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) s
Heavy investment by businesses
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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
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25. Information Services Information specialists have
full-time responsibility for
developing and maintaining
computer-based systems
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26. Traditional Communication Chain
Database
Administrator
Systems
Analyst
User
Operator
Programmer
Computer
Network
Specialist
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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)
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28. IS and EUC The End-User Computing Communication Chain
Information
Specialists
Support
User
Communication
Computer
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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
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30. Achieving the CBIS
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31. Reengineering the CBIS
Business Process Reengineering (BPR)
Reworking systems
Good system features retained
Becoming development methodology of choice
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32. 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
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33. 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
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34. Summary [cont.] CBIS composed of various components
AIS
MIS
DSS
Virtual office
Knowledge-based systems
End-user computing trends
CBIS development
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35. Chapter 2 Using Information Technology for Competitive Advantage
MANAGEMENT INFORMATION SYSTEMS 8/E
Raymond McLeod, Jr. and George Schell
Chapter 2
Using Information Technology for Competitive Advantage
2-35
Copyright 2001, Prentice-Hall, Inc.

36. What is a Firm? Physical System
Closed-loop
Controlled by management
Uses feedback to ensure objectives met
Open because of environmental interaction
Managed through use of a conceptual system
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37. Importance of Environment
Very reason for a firm’s existence
Firm takes resources from environment, transforms them, and returns goods and services to environment
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38. The Firm’s Environment
Society
Government
Global
Community
Financial
Community
The
Firm
Customers
Suppliers
Labor
unions
Competitors
Stockholders
or owners
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39. The Firm Is Connected to Its Environment by Resource Flows
Physical and conceptual
Some flows are major
Some should not occur at all
All resources that enter the firm from the environment eventually return to the environment
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40. Competitive Advantage
Computer field perspective
Use of information to gain leverage in marketplace
Relies on more than physical resources
Addressed with strategic objectives
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41. A Value Chain Firm Infrastructure Margin Human resource management
Support
Activities
Margin
Technology development
Procurement
Marketing
and
sales
Inbound
logistics
Operations
Outbound
logistics
Service
Margin
Primary Activities
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Source : Michael E. Porter

42. Source : Michael E. Porter
A Value System
Supplier
value
chains
Firm
value
chain
Channel
value
chains
Buyer
value
chains
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Source : Michael E. Porter

43. The Information Resources
Two views of information management
1. Manage data by implementing computer-based database management systems (DBMS)
2. Manage resources that produce the information
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44. The Information Resources
Hardware
Software
Database
Information
Specialists
Information
Users
Facilities
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45. The Information Resource Manager -- the CIO
Chief Information Officer (CIO) is not simply a title, but role
Manager of information services
Contributes managerial skills
Solves information resources problems
Solves problems in other areas of firm’s operations
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46. The CIO Attitude The business is what counts
Build partnerships/ties with the rest of the firm
Improve basic business processes
Communicate in business terms, not IS jargon
Provide reliable IS services
Be positive, not defensive
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47. Strategic Planning Long-range planning
Intends to give firm most favorable position in its environment
Specifies strategies for achieving objectives
Need for each business area to create its own strategic plan
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48. information resources planning for marketing
The Functional Areas Should Cooperate
in Developing Their Strategic Plans
Strategic
planning for
information resources
Strategic
planning for marketing
resources
Strategic
planning for
financial resources
Strategic
planning for
manufacturing
resources
Strategic
planning for
human
resources
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49. Strategy Set Transformation
Organizational
strategy set
MIS
strategy set
Mission
Objectives
Strategy
Other
strategic
organizational
attributes
System
objectives
constraints
System design strategies
MIS
strategic
planning
process
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50. Strategy Set Transformation: Basic Flaw
Business areas do not always have the resources to ensure accomplishment of strategic objectives
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51. SPIR Strategy set transformation; support the firm’s objectives
Strategic planning for information resources (SPIR) develops firm and IS strategic plans concurrently
SPIR content
1. What is to be achieved
2. What will be required
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52. Strategic Planning for Information Resources
Influence on
Information
Resources
Information
resources
and IS
strategy
Business
strategy
Influence on
Business
Strategy
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53. Strategic Plan Framework for Information Resources
Virtual Office
Objectives
Knowledge-based systems
Objectives
AIS
Objectives
MIS
Objectives
DSS
Objectives
Required Information Resources
Required Information Resources
Required Information Resources
Required Information Resources
Required Information Resources
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54. The Strategic Implications of End-User Computing (EUC)
Levels of end users in terms of capabilities
menu-level end users
command-level end users
end-user programmers
functional support personnel
EUC application considerations
shifts workload so that end-users and information specialists’ talents are better used
reduces communications gap
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55. EUC Risks Poorly aimed systems Poorly designed/ documented systems
Inefficient use of information resources
Loss of data integrity
Loss of security
Loss of control
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56. Information Resources Management (IRM) Concept
Realization that firm’s information resources go far beyond the information itself
Activity pursued by managers at all levels
Identifying, acquiring, and managing information resources needed to satisfy information needs
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57. IRM - Required Elements
A recognition that competitive advantage can be achieved by means of superior information resources
A recognition that information services is a major functional area
A recognition that the CIO is a top-level executive
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58. IRM-Required Ingredients (cont.)
A consideration of the firm’s information resources when engaging in strategic planning
A formal strategic plan for information resources
A strategy for stimulating and managing end-user computing
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59. The IRM Model The environment of the firm The firm’s executives
ENVIRONMENTAL INFLUENCES
The firm’s executives
CIO
Other executives
Internal influences
Firm’s strategic plan
FUNCTIONAL AREAS
Information
services
Finance
Human
resources
Manufacturing
Marketing
INFORMATION RESOURCES
Central computing
resources
Disbursed computing
resources
DATA AND INFORMATION
Users engaged in
end-user computing
Other users
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60. IRM Model: Firm Environment
Provides setting for achieving competitive advantage
Executives are aware of need to manage resource flows to meet needs of environmental elements
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61. IRM Model: Firm’s Executives
Includes CIO
Guides firm toward objectives
Key activity is strategic planning
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62. IRM Model: Business Areas
Information services is a major business area
Each area develops own strategic plans
One business area strategic plan is for information resources
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63. IRM Model: Information Resources
Strategic plan for information resources details acquisition and management
Information resources
Centralized
Dispersed throughout firm
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64. IRM Model: Users
Details data and information flows between resources and users
Some users engage in end-user computing
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65. Summary Environment of a firm consists of eight elements
Firms attempt to achieve competitive advantage
Margin - value of products and services over cost
Value chain
Information resources
Hardware, software, facilities, database, information specialists, information, and users
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66. Summary [cont.] Executives perform strategic planning
SPIR
All firm’s managers need to engage in IRM
Recent revelation
Integrating concept
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