1. www.drmonchai.com Computers: Tools for an Information Age Chapter 16 Management Information Systems: Classic Models and New Approaches

2. 2 Objectives List and describe the classic functions of managers: planning, organizing, staffing, directing, and controlling Describe the purpose and components of a management information system (MIS) Explain how computer networking and related software have flattened the classic management pyramid

3. 3 Objectives Describe how companies use employees in task-oriented teams Describe the purpose and function of sophisticated software for top managers Explain the problems and solutions related to managing personal computers Explain the concept of total cost of personal computer ownership

4. 4 Classic Management Functions Planning – devising plans for the organization and setting goals to achieve the plan Organizing – deciding how to use the organization’s resources Staffing – hiring and training workers Directing – guiding employees to perform their work in a way that supports the organization’s goals Controlling – monitoring the organization’s progress toward reaching its goals

5. 5 Levels of Management Strategic level Strategic level Tactical level Tactical level Operational level Operational level

6. 6 Strategic Level Managers at this level are often called executives Focus – long-range view of the firm Primary function – planning Return

7. 7 Tactical Level Managers at this level are often called middle managers Focus – carrying out the visions of top- level managers Primary functions – organizing and staffing Return

8. 8 Operational Level Managers at this level are often called supervisors Focus – meeting that day’s objectives Primary functions – directing and controlling Return

9. 9 Management Information System A set of formal business systems designed to provide information for an organization Integrates the five management functions Integrates the five management functions MIS manager runs the MIS department Also called Chief Information Officer Also called Chief Information Officer Must be comfortable with computer technology and the organization’s business Must be comfortable with computer technology and the organization’s business

10. 10 The New Management Model The traditional model has changed over the years Largely due to advances in technology Largely due to advances in technology Also due to changes in the global business environment Also due to changes in the global business environment Features of the new model A flattened pyramid A flattened pyramid A flattened pyramid A flattened pyramid The impact of groupware The impact of groupware The impact of groupware The impact of groupware Teamwork Teamwork Teamwork

11. 11 A Flattened Pyramid Networks connect people to data and other people Make information more readily available Make information more readily available Allow managers to supervise more people Allow managers to supervise more people Allow decision-making authority to be spread throughout the organization Allow decision-making authority to be spread throughout the organization Return

12. 12 The Impact of Groupware Groupware permits information to be assembled in central databases Employees in different departments or different offices can share information directly Employees in different departments or different offices can share information directly Impacts managers Impacts managers in different ways Impacts managers Return

13. 13 Impact on Managers The way information is shared People acquire power in an organization by knowing things others do not People acquire power in an organization by knowing things others do not Groupware reduces this imbalance Groupware reduces this imbalance Changes in managerial authority With information more readily available, decisions are more prone to being second- guessed With information more readily available, decisions are more prone to being second- guessed Return

14. 14 Teamwork Divide workers into task- focused teams Teams contain workers from throughout the organization Teams contain workers from throughout the organization When the task is completed, the team is disbanded When the task is completed, the team is disbanded Groupware and networks make working in teams much easier Return

15. 15 Top Managers and Computers In the past, managers received printed reports Today, most managers have personal computers on their desks Today, most managers have personal computers on their desks Systems designed for top managers Decision support systems Decision support systems Decision support systems Decision support systems Executive information systems Executive information systems Executive information systems Executive information systems

16. 16 Decision Support Systems Support executives in nonroutine decision- making tasks Executives deal with a constantly changing environment Executives deal with a constantly changing environment Decisions need to be made that have no precedents Decisions need to be made that have no precedents Key components Key components Return

17. 17 Key Components of a DSS A modeling process Model – a mathematical representation of a real-life system Model – a mathematical representation of a real-life system Uses variables to produce output variables Simulation – using a computer model to reach a decision about a real-life situation Return

18. 18 Variables Independent variables – inputs to the system Can be changed to test different scenarios Can be changed to test different scenarios Dependent variables – outputs of the system Called dependent because their values depend on the values of the independent variables Called dependent because their values depend on the values of the independent variables Return

19. 19 Executive Information Systems Concerned with how decisions affect an entire organization Use information from an organization’s systems Use information from an organization’s systems Also use information from outside the organization Also use information from outside the organization For example, competitors, government agencies, and the financial community For example, competitors, government agencies, and the financial community Return

20. 20 Differences Between DSS and MIS MIS emphasizes planned reports on a variety of subjects DSS focuses on decision making DSS focuses on decision making MIS reports are standard, structured, scheduled, and routine DSS is unstructured and available on request DSS is unstructured and available on request MIS is constrained by the organizational system DSS is immediate and friendly DSS is immediate and friendly

21. 21 Managing Personal Computers Several problems emerged as personal computer usage exploded No one person managed the process of moving from mainframe computers to PCs No one person managed the process of moving from mainframe computers to PCs Computers and software were not necessarily compatible Computers and software were not necessarily compatible Users still needed the MIS department Users still needed the MIS department Needed help with hardware and software MIS department still had the data Workers needed training Workers needed training

22. 22 Solutions to These Problems Create personal computer manager personal computer managerpersonal computer manager Create acquisition policies acquisition policiesacquisition policies Create information centers information centersinformation centers Locate, count, and inventory personal computers inventory personal computersinventory personal computers Consider the total cost of ownership of personal computers total cost of ownership total cost of ownership

23. 23 Personal Computer Manager Takes control of personal computers for the company Sometimes called a network manager Sometimes called a network manager Potential problem areas Technology overload Technology overload Technology overload Technology overload Data security and integrity Data security and integrity Data security and integrity Data security and integrity Computer junkies Computer junkies Computer junkies Computer junkies Return

24. 24 Technology Overload Users can become overwhelmed with the new hardware and software tools on the market PC manager can provide guidance PC manager can provide guidance Technology purchases must contribute to overall company goals PC manager can help ensure technology is used to support goals PC manager can help ensure technology is used to support goals Return

25. 25 Data Security and Integrity Access to corporate data is a touchy issue People are protective of “their” data People are protective of “their” data Users may want to download data from the mainframe and use it on their computers Are they entitled to the data? Are they entitled to the data? Will they manipulate it and distribute it? Will they manipulate it and distribute it? Will they manipulate it and upload it back to the mainframe? Will they manipulate it and upload it back to the mainframe? Return

26. 26 Computer Junkies People who are overly fascinated with computers May copy software illegally May copy software illegally May hack into company computers to which they do not have access May hack into company computers to which they do not have access May overuse the computer and neglect their other duties May overuse the computer and neglect their other duties Return

27. 27 Acquisition Policies Designed to ensure that all hardware and software are compatible Establish standards for hardware and software Establish standards for hardware and software Restrict the vendors used Restrict the vendors used Set standards for data communication Set standards for data communication Return

28. 28 Information Center A place where workers can get help with software problems Sometimes called a support center or help desk Sometimes called a support center or help desk Users can get immediate help, with little or no red tape Users can get immediate help, with little or no red tape Provides a variety of services variety of servicesvariety of services Return

29. 29 Information Center Services Software and hardware selection Data access Network access Training Technical assistance Return

30. 30 Training Users must receive training for new technology Spending money on technology without training the users is a recipe for disaster Spending money on technology without training the users is a recipe for disaster Should take several forms Initial training Initial training Typically hands-on, instructor-led training in a classroom Typically hands-on, instructor-led training in a classroom Follow-up support Follow-up support Develop home-grown experts (“gurus”) Develop home-grown experts (“gurus”) Workers can consult these gurus when they have a problem Workers can consult these gurus when they have a problem Training delivery methods Training delivery methods Return

31. 31 Delivery Methods Text-based – give the users a user guide, with some exercises Instructor-led – classroom- based, hands-on training Computer-based Web sites offer training on many packages Web sites offer training on many packages CD-ROMs offer multimedia, tutorials, frequently-asked questions, etc. CD-ROMs offer multimedia, tutorials, frequently-asked questions, etc. Return

32. 32 Inventory Personal Computers Many things need to be tracked How many computers the organization has How many computers the organization has How many printers there are How many printers there are What software is on each computer What software is on each computer Software must be properly licensed Software must be properly licensed Unauthorized software should not be on computers Unauthorized software should not be on computers How many remote users there are How many remote users there are Laptops are particularly vulnerable to theft Laptops are particularly vulnerable to theft There must be adequate security when accessing corporate data There must be adequate security when accessing corporate data Return

33. 33 Total Cost of Ownership (TCO) Determines the total cost of owning the computer over time The original hardware and software costs are a small portion of the cost of ownership The original hardware and software costs are a small portion of the cost of ownership The real costs are hard to determine real costs real costs Some experts estimate the annual cost of ownership is four times the original cost of the hardware Some experts estimate the annual cost of ownership is four times the original cost of the hardware Return

34. 34 TCO Components Many costs contribute to TCO Original hardware and software costs Original hardware and software costs Training costs Training costs Information center and other support costs Information center and other support costs Upgrades to hardware and software Upgrades to hardware and software Maintenance Maintenance Extra hardware and software beyond the standard configuration Extra hardware and software beyond the standard configuration The costs of communications networks The costs of communications networks Return

35. www.drmonchai.com Q and A Chapter 16 Management Information Systems: Classic Models and New Approaches