Management Information Systems, 10/eRaymond McLeod and George Schell

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

Chapter 1Introduction to Information Systems

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

Learning ObjectivesUnderstand how computer hardware has evolved to its present level of sophisticationKnow 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.

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

Learning Objectives (Contd)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.

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

History of Information SystemsEvolution in computer hardware

MainframeMultitaskingSmaller computers

MinicomputersMicrocomputersPersonal computers (PC)

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

Intro to Computer ArchitectureMoores 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.

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

Computer Architecture (Contd)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

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

Figure 1.5 Communications Architecture

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

Evolution in Computer ApplicationsInformation 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.

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

Figure 1.6 The Physical System of the Firm

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

Computer Applications (Contd)Open system is a firms physical system that interacts with its environment by means of physical resource flows.Closed system is one that does not communicate with its environment.

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

Transaction Processing SystemsData 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.

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

Figure 1.7 A Model of a Transaction Processing System

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

Management Information SystemsManagement 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 firms operations.

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

Figure 1.8 A MIS Model

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

MIS (Contd)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.

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

Virtual Office SystemsOffice 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.

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

Decision Support SystemsDecision 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.

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

Figure 1.9 A DSS Model

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

Enterprise Resource Planning SystemsEnterprise Resource Planning System (ERP) is a computer-based system that enables the management of all of the firms resources on an organization-wide basis.

Y2K complaintSAP ERP Provider

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

Information System UsersFirst users were clerical users on TPSs.MISs added problem-solvers as users.Managerial Levels

Strategic planning levelManagement control levelOperational control level

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

Figure 1.10 Management Levels

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

Figure 1.11 Managers in Business Areas

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

Figure 1.12 Management Functions

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

Table 1.2 Mintzbergs Managerial Roles

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

Problem Solving & Decision MakingProblem 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.

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

Four Problem-Solving PhasesIntelligence 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.

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

Figure 1.13 Information Supports Each Problem-solving Phase

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

The Future of Information TechnologyReduced 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.

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