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Chapter 1Introduction to the Computer-BasedIntroduction to the Computer-Based
Information SystemInformation System
MANAGEMENT INFORMATION SYSTEMS 8/ERaymond McLeod, Jr. and George Schell
Copyright 2001 Prentice-Hall, Inc.
1-1
Information ManagementInformation Management
Information: The most valuable resource The most valuable resource
1-2
Five Main ResourcesFive Main Resources
PersonnelPersonnel MaterialMaterial MachinesMachines
– (including facilities and energy)(including facilities and energy)
MoneyMoney Information (and data)Information (and data)
PhysicalPhysical
ConceptualConceptual}
}1-3
How Resources are How Resources are ManagedManaged
AcquireAcquire Assemble, or prepareAssemble, or prepare Maximize useMaximize use ReplaceReplace
1-4
Factors Stimulating Factors Stimulating Interest in Information Interest in Information
ManagementManagement Increasing complexity of business activityIncreasing complexity of business activity
– International economyInternational economy
– Worldwide competitionWorldwide competition
– Increasing complexity of technologyIncreasing complexity of technology
– Shrinking time framesShrinking time frames
– Social constraintsSocial constraints Improved computer capabilitiesImproved computer capabilities
– SizeSize
– SpeedSpeed
1-5
Who are the Users?Who are the Users?
ManagersManagers NonmanagersNonmanagers Persons & organizations in the firm’s Persons & organizations in the firm’s
environmentenvironment
1-6
The Influence of The Influence of Management Level on Management Level on
Information SourceInformation Source
Strategic planning levelStrategic planning level
Management control levelManagement control level
Operational control levelOperational control level InternalInternal
EnvironmentalEnvironmental
1-7
The Influence of The Influence of Management Level on Management Level on
Information FormInformation Form
Strategic planning levelStrategic planning level
Management control levelManagement control level
Operational control levelOperational control level DetailDetail
SummarySummary
1-8
Managers Can Be Found Managers Can Be Found on All Levels and in All on All Levels and in All
Functional Functional Areas of the Firm Areas of the Firm
FinanceFunction
Human ResourcesFunction
InformationServicesFunction
ManufacturingFunction
MarketingFunction
Strategic planning levelStrategic planning level
Management Control LevelManagement Control Level
Operational Control Operational Control LevelLevel
1-9
What Managers do --What Managers do --Fayol’s FunctionsFayol’s Functions
Strategic Planning Level
Management Control Level
Operational Control Level
Plan
Control
Organize
Direct
Staff
Organize
Staff
Direct
Plan
Control
Direct
Staff
Plan
Control
Organize
1-10
What Managers do -- What Managers do -- Mintzberg’s RolesMintzberg’s Roles
Interpersonal rolesInterpersonal roles– FigureheadFigurehead– LeaderLeader– LiaisonLiaison
Informational rolesInformational roles– MonitorMonitor– DisseminatorDisseminator– SpokespersonSpokesperson
Decisional rolesDecisional roles– EntrepreneurEntrepreneur– Disturbance Disturbance
handlerhandler– Resource allocatorResource allocator– NegotiatorNegotiator
1-11
Management SkillsManagement Skills
CommunicationsCommunications
Problem solvingProblem solving
How can an How can an information information specialist help?specialist help?}
1-12
Problem Solving Problem Solving Information Comes in Information Comes in
Many FormsMany FormsC
om
pu
ter
Rep
ort
sC
om
pu
ter
Rep
ort
s
No
nco
mp
ute
r re
po
rts
No
nco
mp
ute
r re
po
rts
Ele
ctro
nic
mai
lE
lect
ron
ic m
ail
Per
iod
ical
sP
erio
dic
als
Tel
eph
on
eT
elep
ho
ne
Problem SolvingProblem Solving
Written MediaWritten Media Oral MediaOral Media
Internal SourcesInternal Sources External SourcesExternal Sources
Sch
edu
led
Mee
tin
gs
Sch
edu
led
Mee
tin
gs
Un
sch
edu
led
Mee
tin
gs
Un
sch
edu
led
Mee
tin
gs
Vo
ice
Mai
lV
oic
e M
ail
To
urs
To
urs
Bu
sin
ess
Mea
lsB
usi
nes
s M
eals
Let
ters
& M
emo
sL
ette
rs &
Mem
os
1-13
Management KnowledgeManagement Knowledge
Computer literacyComputer literacy
Information literacyInformation literacy
What’s the difference?What’s the difference?
1-14
System ComponentsSystem ComponentsComponent parts of a system that Component parts of a system that
can control its own operationscan control its own operations
Objectives
Control Control mechanismmechanism
TransformationTransformationInputInput OutputOutput
1-15
Open-Loop SystemOpen-Loop System
TransformationTransformationInputInput OutputOutput
1-16
Open versus Closed Open versus Closed SystemsSystems
Open system Open system – Connected to its environment by means of Connected to its environment by means of
resource flowsresource flows Closed systemClosed system
– Not connected to its environmentNot connected to its environment
1-17
Systems Systems Can Be Composed of Subsystems or Elemental PartsCan Be Composed of Subsystems or Elemental Parts
Subsystem A-2
Subsystem A-3
Subsystem B-2
Subsystem B-1
System
Subsystem A Subsystem B Elemental Part C
Subsystem A-1
Elemental part B1 1-18
Physical and Conceptual Physical and Conceptual SystemsSystems
Physical system Physical system – The business firm The business firm – Composed of physical resourcesComposed of physical resources
Conceptual systemConceptual system– Represents a physical systemRepresents a physical system– Uses conceptual resourcesUses conceptual resources
» InformationInformation
» Data Data
1-19
A Systems ViewA Systems View
Business operations are embedded within a larger environmental settingBusiness operations are embedded within a larger environmental setting– Reduces complexityReduces complexity– Requires good objectivesRequires good objectives– Emphasizes working together Emphasizes working together – Acknowledges interconnectionsAcknowledges interconnections– Values feedbackValues feedback
1-20
Data and InformationData and Information
Information processorInformation processor– Key element in the conceptual systemKey element in the conceptual system– ComputerComputer– NoncomputerNoncomputer– CombinationCombination
Data is the raw material transformed into Data is the raw material transformed into informationinformation
1-21
Evolution of the CBISEvolution of the CBIS Data Processing (DP) Management Information Systems (MIS) 1964
– IBM promoted the concept as a means of selling disk files and terminals
Decision Support Systems (DSS) 1971– Text book’s distinction:
» MIS: Organizational/group - general» DSS: Individual - specific
Office Automation (OA) 1964 Artificial Intelligence (AI)/ Expert Systems (ES) - 1990s
– Heavy investment by businesses
1-22
The CBIS ModelThe CBIS ModelComputer-based
Information System
(CBIS)
Accounting Information System
ManagementInformation System
Decision SupportSystems
The VirtualOffice
Knowledge-based Systems
DecisionsDecisions
ProblemProblem
InformationInformation
ProblemProblemSolutionSolution
1-23
Information ServicesInformation Services
Information specialists Information specialists have have full-time responsibility for full-time responsibility for
developing and maintaining developing and maintaining computer-based systemscomputer-based systems
1-24
Traditional Communication Traditional Communication ChainChain
DatabaseAdministrator
UserUserSystemsAnalyst
Programmer Operator ComputerComputer
NetworkSpecialist
1-25
End-User Computing (EUC)
End-user computing End-user computing – Development of all or part of applicationsDevelopment of all or part of applications– Information specialists act as consultantsInformation specialists act as consultants
Stimulants to EUCStimulants to EUC– Increased computer literacyIncreased computer literacy– IS backlogIS backlog– Low-cost hardware (the PC)Low-cost hardware (the PC)– Prewritten software (electronic spreadsheets)Prewritten software (electronic spreadsheets)
1-26
IS and EUCIS and EUCThe End-User Computing The End-User Computing
Communication ChainCommunication Chain
User Computer
InformationSpecialists
SupportSupport
CommunicationCommunication
1-27
Justifying the CBISJustifying the CBIS
Justify in the same manner as any other Justify in the same manner as any other large investmentlarge investment
EconomicEconomic– Cost reductionCost reduction– Reduced inventory investmentReduced inventory investment– Increased productivity (CAD/CAM)Increased productivity (CAD/CAM)
NoneconomicNoneconomic– Perceived valuePerceived value
1-28
Achieving the CBISAchieving the CBIS
1-29
Reengineering the CBISReengineering the CBIS
Business Process Reengineering (BPR)Business Process Reengineering (BPR)– Reworking systemsReworking systems– Good system features retained Good system features retained – Becoming development methodology of Becoming development methodology of
choicechoice
1-30
Roles Played by the Roles Played by the ManagerManager
and by the Information and by the Information SpecialistSpecialist
Implementation
Phase Manager Information Specialist
Control
Control
Control
Control
Planning
Analysis
Design
Use
Define problem Support
System Study
Design system
Implement system
Make available
1-31
SummarySummary
Information is one of five main resourcesInformation is one of five main resources Computer output used by managers and Computer output used by managers and
nonmanagersnonmanagers A system is an integration of elements A system is an integration of elements
working toward an objectiveworking toward an objective– Physical Physical – ConceptualConceptual
Data vs. InformationData vs. Information1-32
Summary [cont.]Summary [cont.]
CBIS composed of various componentsCBIS composed of various components– AISAIS– MISMIS– DSSDSS– Virtual officeVirtual office– Knowledge-based systemsKnowledge-based systems
End-user computing trendsEnd-user computing trends CBIS developmentCBIS development
1-33