McLeod_CH01.ppt 617KB Mar 29 2010 04:55:24 AM

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

© 2007 by Prentice Hall

Management Information Systems, 10/e R
aymond McLeod and George Schell

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Chapter 1
Introduction to Information
Systems

© 2007 by Prentice Hall

Management Information Systems, 10/e R
aymond McLeod and George Schell

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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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all

Management Information S
ystems, 10/e Raymond Mc

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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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all

Management Information S
ystems, 10/e Raymond Mc

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History of Information
Systems
► Evolution

in computer hardware
 Mainframe
 Multitasking
► Smaller computers
 Minicomputers
 Microcomputers
 Personal computers (PC)
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ystems, 10/e Raymond Mc

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Intro to Computer
Architecture
► Moore’s

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.
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ystems, 10/e Raymond Mc

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Computer 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

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networks
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ystems, 10/e Raymond Mc

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Figure 1.5 Communications
Architecture

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ystems, 10/e Raymond Mc

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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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all

Management Information S
ystems, 10/e Raymond Mc

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Figure 1.6 The Physical System
of the Firm

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all

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ystems, 10/e Raymond Mc

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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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all

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ystems, 10/e Raymond Mc

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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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ystems, 10/e Raymond Mc

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Figure 1.7 A Model of a
Transaction Processing System

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all

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ystems, 10/e Raymond Mc

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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 S
ystems, 10/e Raymond Mc

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Figure 1.8 A MIS Model

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ystems, 10/e Raymond Mc

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MIS (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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ystems, 10/e Raymond Mc

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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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ystems, 10/e Raymond Mc

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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
intellegence.
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ystems, 10/e Raymond Mc

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Figure 1.9 A DSS Model

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all

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ystems, 10/e Raymond Mc

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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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ystems, 10/e Raymond Mc

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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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ystems, 10/e Raymond Mc

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Figure 1.10 Management
Levels

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ystems, 10/e Raymond Mc

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Figure 1.11 Managers in
Business Areas

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ystems, 10/e Raymond Mc

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Figure 1.12 Management
Functions

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ystems, 10/e Raymond Mc

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Table 1.2 Mintzberg’s
Managerial Roles

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ystems, 10/e Raymond Mc

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Problem Solving & Decision
Making
► Problem

– a condition or event that is
harmful or potentially harmful to a firm
or that is beneficial or potentially
beneficial.
► Solution – outcome of the problemsolving activity.
► Decision – a particular selected course
of action.
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ystems, 10/e Raymond Mc

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Four Problem-Solving Phases
► 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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ystems, 10/e Raymond Mc

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Figure 1.13 Information
Supports Each Problem-solving
Phase

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ystems, 10/e Raymond Mc

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The Future of Information
Technology
► Reduced

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.
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all

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ystems, 10/e Raymond Mc

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