1. 1 Management Information Systems M Agung Ali Fikri, SE. MM.

2. 2 Chapter 1 Introduction to Information Systems

3. 3 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.

4. 4 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.

5. 5 History of Information Systems ► Evolution in computer hardware  Mainframe  Multitasking ► Smaller computers  Minicomputers  Microcomputers  Personal computers (PC)

6. 6 Intro to Computer Architecture ► Moore’s Law – computer power doubles every year for a given cost. ► Hardware – processor, keyboard, monitor, mouse, printer, etc. ► Software – application, operating, etc. ► Used to support managerial decision making.

7. 7 Computer 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

8. 8 Figure 1.5 Communications Architecture

9. 9 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.

10. 10 Figure 1.6 The Physical System of the Firm

11. 11 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.

12. 12 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.

13. 13 Figure 1.7 A Model of a Transaction Processing System

14. 14 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.

15. 15 Figure 1.8 A MIS Model

16. 16 MIS (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.

17. 17 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.

18. 18 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 intellegence.

19. 19 Figure 1.9 A DSS Model

20. 20 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

21. 21 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

22. 22 Figure 1.10 Management Levels

23. 23 Figure 1.11 Managers in Business Areas

24. 24 Figure 1.12 Management Functions

25. 25 Table 1.2 Mintzberg’s Managerial Roles

26. 26 Problem Solving & Decision Making ► Problem – a 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.

27. 27 Four Problem-Solving Phases ► 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.

28. 28 Figure 1.13 Information Supports Each Problem-solving Phase

29. 29 The Future of Information Technology ► Reduced cost & increased power of both computers and communications. ► Computers & communications are converging, i.e. cell phones with browsers. ► Future computing will be low cost, small in size, mobile, and connected.