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Management Management Information Systems, Information Systems,

10/e10/eRaymond McLeod and George Raymond McLeod and George

Schell Schell

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Chapter 1Chapter 1Introduction to Information Introduction to Information

Systems Systems

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Learning ObjectivesLearning Objectives

► Understand how computer hardware has Understand how computer hardware has evolved to its present level of sophisticationevolved to its present level of sophistication

► Know the basics of computer and Know the basics of computer and communications architectures.communications architectures.

► Understand the distinction between physical Understand the distinction between physical and virtual systems.and virtual systems.

►Describe how business applications have Describe how business applications have evolved from an initial emphasis on evolved from an initial emphasis on accounting data to the current emphasis on accounting data to the current emphasis on information for problem solving.information for problem solving.

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Learning Objectives (Cont’d)Learning Objectives (Cont’d)

► Understand what enterprise resource Understand what enterprise resource planning systems are and the reasons for planning systems are and the reasons for their popularity.their popularity.

► Know how to tailor information systems to Know how to tailor information systems to managers based on where they are located in managers based on where they are located in the organizational structure and what they do.the organizational structure and what they do.

► Understand the relationship between problem Understand the relationship between problem solving and decision making and know the solving and decision making and know the basic problem-solving steps.basic problem-solving steps.

► Know what innovations to expect in Know what innovations to expect in information technology.information technology.

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History of Information History of Information SystemsSystems

►Evolution in computer hardwareEvolution in computer hardware MainframeMainframe MultitaskingMultitasking

►Smaller computersSmaller computers MinicomputersMinicomputers MicrocomputersMicrocomputers Personal computers (PC)Personal computers (PC)

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Intro to Computer Intro to Computer ArchitectureArchitecture

►Moore’s LawMoore’s Law – computer power – computer power doubles every year for a given cost.doubles every year for a given cost.

►HardwareHardware – processor, keyboard, – processor, keyboard, monitor, mouse, printer, etc.monitor, mouse, printer, etc.

►SoftwareSoftware – application, operating, – application, operating, etc. etc.

►Used to support managerial decision Used to support managerial decision making.making.

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Computer Architecture Computer Architecture (Cont’d)(Cont’d)

►ModemModem – hardware device that – hardware device that modulates the digital signals from a modulates the digital signals from a computer into analog signals computer into analog signals (telephone system), and vice versa.(telephone system), and vice versa.

►Direct communication standardsDirect communication standards Between computers is much faster.Between computers is much faster.

►Wireless networksWireless networks

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Figure 1.5 Communications Figure 1.5 Communications ArchitectureArchitecture

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Evolution in Computer Evolution in Computer ApplicationsApplications

► Information systemsInformation systems are are virtual systemsvirtual systems that enable management to control the that enable management to control the operations of the operations of the physical systemphysical system of the of the firm.firm.

► Physical systemPhysical system – tangible resources such – tangible resources such as materials, personnel, machines, and as materials, personnel, machines, and money.money.

►Virtual systemVirtual system – information resources – information resources that are used to represent the physical that are used to represent the physical system.system.

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Figure 1.6 The Physical System Figure 1.6 The Physical System of the Firmof the Firm

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Computer Applications Computer Applications (Cont’d)(Cont’d)

►Open systemOpen system is a firm’s physical is a firm’s physical system that interacts with its system that interacts with its environment by means of physical environment by means of physical resource flows.resource flows.

►Closed systemClosed system is one that does not is one that does not communicate with its environment.communicate with its environment.

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Transaction Processing Transaction Processing SystemsSystems

►DataData – facts and figures that are – facts and figures that are generally unusable due to their large generally unusable due to their large volume and unrefined nature.volume and unrefined nature.

►InformationInformation – processed data that is – processed data that is meaningful; tells users something.meaningful; tells users something.

►Transaction Processing System Transaction Processing System (TPS)(TPS) processes data that reflects the processes data that reflects the activities of the firm.activities of the firm.

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Figure 1.7 A Model of a Figure 1.7 A Model of a Transaction Processing SystemTransaction Processing System

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Management Information Management Information SystemsSystems

►Management Information System Management Information System (MIS)(MIS) is a computer-based system is a computer-based system that makes information available to that makes information available to users with similar needs.users with similar needs.

►Report-writing softwareReport-writing software – produces – produces both periodic and special reports.both periodic and special reports.

►Mathematical modelsMathematical models – produces – produces information as a simulation of the information as a simulation of the firm’s operations.firm’s operations.

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Figure 1.8 A MIS ModelFigure 1.8 A MIS Model

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MIS (Cont’d)MIS (Cont’d)

► Information provided by MIS describes Information provided by MIS describes the firm or one of its major systems.the firm or one of its major systems. What has happened in the past.What has happened in the past. What is happening now.What is happening now. What is likely to happen in the future.What is likely to happen in the future.

►Interorganizational information Interorganizational information systemsystem ( (IOSIOS) – is formed when a firm ) – is formed when a firm interacts with others, such as suppliers.interacts with others, such as suppliers.

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Virtual Office SystemsVirtual Office Systems

►Office automationOffice automation – use of electronics – use of electronics to facilitate communication.to facilitate communication.

►Personal productivity systemsPersonal productivity systems – use – use technology to self-manage clerical technology to self-manage clerical tasks such as calendars, address books, tasks such as calendars, address books, etc.etc.

►Virtual officeVirtual office – performing office – performing office activities independent of a particular activities independent of a particular physical location.physical location.

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Decision Support SystemsDecision Support Systems

►Decision Support System (DSS)Decision Support System (DSS) – – assists management in solving a problem.assists management in solving a problem.

►GroupwareGroupware – group-oriented software. – group-oriented software.►Group decision support systemGroup decision support system

((GDSSGDSS) combines groupware and the DSS.) combines groupware and the DSS.►Artificial intelligenceArtificial intelligence ( (AIAI) – the science ) – the science

of providing computers with human of providing computers with human intellegence. intellegence.

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Figure 1.9 A DSS ModelFigure 1.9 A DSS Model

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Enterprise Resource Planning Enterprise Resource Planning SystemsSystems

►Enterprise Resource Planning Enterprise Resource Planning System (ERP)System (ERP) is a computer-based is a computer-based system that enables the management system that enables the management of all of the firm’s resources on an of all of the firm’s resources on an organization-wide basis.organization-wide basis. Y2K complaintY2K complaint SAP – ERP ProviderSAP – ERP Provider

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Information System UsersInformation System Users

►First users were clerical users on TPSs.First users were clerical users on TPSs.►MISs added problem-solvers as users.MISs added problem-solvers as users.►Managerial LevelsManagerial Levels

Strategic planning levelStrategic planning level Management control levelManagement control level Operational control levelOperational control level

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Figure 1.10 Management Figure 1.10 Management LevelsLevels

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Figure 1.11 Managers in Figure 1.11 Managers in Business AreasBusiness Areas

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Figure 1.12 Management Figure 1.12 Management FunctionsFunctions

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Table 1.2 Mintzberg’s Table 1.2 Mintzberg’s Managerial RolesManagerial Roles

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Problem Solving & Decision Problem Solving & Decision MakingMaking

►Problem – a condition or event that is Problem – a condition or event that is harmful or potentially harmful to a firm harmful or potentially harmful to a firm or that is beneficial or potentially or that is beneficial or potentially beneficial.beneficial.

►Solution – outcome of the problem-Solution – outcome of the problem-solving activity.solving activity.

►Decision – a particular selected course Decision – a particular selected course of action.of action.

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Four Problem-Solving PhasesFour Problem-Solving Phases

►Intelligence activityIntelligence activity. Search the . Search the environment for conditions calling for environment for conditions calling for a solution.a solution.

►Design activityDesign activity. Invent, develop, and . Invent, develop, and analyze possible courses of action.analyze possible courses of action.

►Choice activityChoice activity. Select a particular . Select a particular course of action from those available.course of action from those available.

►Review activityReview activity. Assess past choices.. Assess past choices.

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Figure 1.13 Information Figure 1.13 Information Supports Each Problem-solving Supports Each Problem-solving

PhasePhase

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The Future of Information The Future of Information TechnologyTechnology

►Reduced cost & increased power of Reduced cost & increased power of both computers and communications.both computers and communications.

►Computers & communications are Computers & communications are converging, i.e. cell phones with converging, i.e. cell phones with browsers.browsers.

►Future computing will be low cost, Future computing will be low cost, small in size, mobile, and connected.small in size, mobile, and connected.