1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 17 8 Functions of an Effective IS 2 2 1. Assist organizations and their members in achieving their objectives 2. Facilitate information access 3. Facilitate information flow

9. 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

10. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 17 10 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

11. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 17 11 Evolution of the Computer 4 4 1960s: 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

12. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 17 12 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

13. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 17 13 Problems with End-User Computing 4 4 1. Control 2. Duplication of software and hardware 3. Orderly, authorized access to the organization’s:  systems  database

14. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 17 14 Computer Hardware 4 4. Input devices. Control unit. Central processing unit (CPU). Storage devices. Output devices. Software

15. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 17 15 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

16. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 17 16 Linking Computer Systems--Protocol 6 6 SMTP NNTP DNS FTP World Wide Web e-mail Usenet news groups server exchange file transfer HTML and HTTP

17. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 17 17 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

18. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 17 18 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

19. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 17 19 Group Decision Support System 7 7 Interact with group members Exchange information, data, ideas Brainstorming and problem solving Facilitate conferencing

20. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 17 20 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…

21. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 17 21 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…

22. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 17 22 Gartner Group TCO Lifecycle Model 8 8 TCO Management TCO Management TCO Analysis TCO Analysis TCO Improvement TCO Improvement