1. Management Information Systems, 10/e
Raymond McLeod Jr. and George P. Schell
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Management Information Systems, 10/e Raymond McLeod and George Schell

2. Part I: Essential Concepts Chapter 1
Introduction to Information Systems
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Management Information Systems, 10/e Raymond McLeod and George Schell

3. 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.
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Management Information Systems, 10/e Raymond McLeod and George Schell

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.
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Management Information Systems, 10/e Raymond McLeod and George Schell

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

6. 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
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Management Information Systems, 10/e Raymond McLeod and George Schell

7. 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
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Management Information Systems, 10/e Raymond McLeod and George Schell

8. Management Information Systems, 10/e Raymond McLeod and George Schell
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Management Information Systems, 10/e Raymond McLeod and George Schell

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

10. Management Information Systems, 10/e Raymond McLeod and George Schell
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Management Information Systems, 10/e Raymond McLeod and George Schell

11. 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
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Management Information Systems, 10/e Raymond McLeod and George Schell

12. Management Information Systems, 10/e Raymond McLeod and George Schell
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Management Information Systems, 10/e Raymond McLeod and George Schell

13. 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
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Management Information Systems, 10/e Raymond McLeod and George Schell

14. Figure 1.5 Communications Architecture
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Management Information Systems, 10/e Raymond McLeod and George Schell

15. 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.
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Management Information Systems, 10/e Raymond McLeod and George Schell

16. Figure 1.6 The Physical System of the Firm
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Management Information Systems, 10/e Raymond McLeod and George Schell

17. 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.
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Management Information Systems, 10/e Raymond McLeod and George Schell

18. 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.
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Management Information Systems, 10/e Raymond McLeod and George Schell

19. Figure 1.7 A Model of a Transaction Processing System
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Management Information Systems, 10/e Raymond McLeod and George Schell

20. 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.
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Management Information Systems, 10/e Raymond McLeod and George Schell

21. Management Information Systems, 10/e Raymond McLeod and George Schell
Figure 1.8 A MIS Model
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Management Information Systems, 10/e Raymond McLeod and George Schell

22. 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.
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Management Information Systems, 10/e Raymond McLeod and George Schell

23. 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.
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Management Information Systems, 10/e Raymond McLeod and George Schell

24. 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.
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Management Information Systems, 10/e Raymond McLeod and George Schell

25. Management Information Systems, 10/e Raymond McLeod and George Schell
Figure 1.9 A DSS Model
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Management Information Systems, 10/e Raymond McLeod and George Schell

26. 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
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Management Information Systems, 10/e Raymond McLeod and George Schell

27. 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
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Management Information Systems, 10/e Raymond McLeod and George Schell

28. Management Information Systems, 10/e Raymond McLeod and George Schell
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Management Information Systems, 10/e Raymond McLeod and George Schell

29. Management Information Systems, 10/e Raymond McLeod and George Schell
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Management Information Systems, 10/e Raymond McLeod and George Schell

30. 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
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Management Information Systems, 10/e Raymond McLeod and George Schell

31. 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)
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Management Information Systems, 10/e Raymond McLeod and George Schell

32. Management Information Systems, 10/e Raymond McLeod and George Schell
Figure 1.12 Management Level May Influence the Relative Emphasis on the Management Function
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Management Information Systems, 10/e Raymond McLeod and George Schell

33. Management Information Systems, 10/e Raymond McLeod and George Schell
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Management Information Systems, 10/e Raymond McLeod and George Schell

34. THE ROLE OF INFORMATION IN MANAGEMENT PROBLEM SOLVING
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Management Information Systems, 10/e Raymond McLeod and George Schell

35. 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.
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Management Information Systems, 10/e Raymond McLeod and George Schell

36. 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.
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Management Information Systems, 10/e Raymond McLeod and George Schell

37. Figure 1.13 Information Supports Each Problem-Solving Phase
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Management Information Systems, 10/e Raymond McLeod and George Schell

38. Management Information Systems, 10/e Raymond McLeod and George Schell
Management Skills
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Management Information Systems, 10/e Raymond McLeod and George Schell

39. Problem Solving Information Comes in Many Forms
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Management Information Systems, 10/e Raymond McLeod and George Schell

40. Management Information Systems, 10/e Raymond McLeod and George Schell
Management Knowledge
Computer literacy
Information literacy
What’s the difference?
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Management Information Systems, 10/e Raymond McLeod and George Schell

41. Management Information Systems, 10/e Raymond McLeod and George Schell
The CBIS Model
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Management Information Systems, 10/e Raymond McLeod and George Schell

42. 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
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Management Information Systems, 10/e Raymond McLeod and George Schell

43. Traditional Communication Chain
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Management Information Systems, 10/e Raymond McLeod and George Schell

44. 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
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Management Information Systems, 10/e Raymond McLeod and George Schell

45. Management Information Systems, 10/e Raymond McLeod and George Schell
Achieving the CBIS
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Management Information Systems, 10/e Raymond McLeod and George Schell

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

47. Roles Played by the Manager and by the Information Specialist
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Management Information Systems, 10/e Raymond McLeod and George Schell

48. 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