Management Information Systems, 10/e

1. Management Information Systems, 10/e Raymond McLeod Jr. and George P. Schell Management Information Systems, 10/e Raymond McLeod and George Schell

2. Part I: Essential Concepts Chapter 1 Introduction to Information Systems Management Information Systems, 10/e Raymond McLeod and George Schell

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

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

5. History of Information Systems • Evolution in Computer Hardware • Mainframe • Multitasking • Smaller Computers • Minicomputers • Microcomputers • Personal computers (PC) Management Information Systems, 10/e Raymond McLeod and George Schell

6. Introduction to Computer Architecture • 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

7. Introduction to 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 networks Management Information Systems, 10/e Raymond McLeod and George Schell

8. Figure 1.5 Communications Architecture Management Information Systems, 10/e Raymond McLeod and George Schell

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

10. Figure 1.6 The Physical System of the Firm Management Information Systems, 10/e Raymond McLeod and George Schell

11. The Evolution of 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. Management Information Systems, 10/e Raymond McLeod and George Schell

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

13. Figure 1.7 A Model of a Transaction Processing System Management Information Systems, 10/e Raymond McLeod and George Schell

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

15. Figure 1.8 A MIS Model Management Information Systems, 10/e Raymond McLeod and George Schell

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

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

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

19. Figure 1.9 A DSS Model Management Information Systems, 10/e Raymond McLeod and George Schell

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

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

22. Figure 1.10 Management Levels Can Influence Both the Source and Presentation Form of Information Management Information Systems, 10/e Raymond McLeod and George Schell

23. Figure 1.11 ManagersCan Be Found on All Business Areas of the Firm Management Information Systems, 10/e Raymond McLeod and George Schell

24. Figure 1.12 Management Level May Influence the Relative Emphasis on the Management Function Management Information Systems, 10/e Raymond McLeod and George Schell

25. Table 1.2 Mintzberg’s Managerial Roles Management Information Systems, 10/e Raymond McLeod and George Schell

26. Problem Solving and Decision Making • Problem– 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

27. Problem-Solving Phases • The four phases are: • 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. Management Information Systems, 10/e Raymond McLeod and George Schell

28. Figure 1.13 Information Supports Each Problem-Solving Phase Management Information Systems, 10/e Raymond McLeod and George Schell

29. The Future of Information Technology • Reduced cost and increased power of both computers and communications. • Computers and 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