Management Information Systems, 10/e

Raymond McLeod Jr. and George P. Schell

2007 by Prentice Hall

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

Part I: Essential Concepts Chapter 1

Introduction to Information Systems

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

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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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.
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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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Introduction to Computer Architecture

Hardware-processor,

mouse, printer, etc. Software-application, operating, etc. Used to support managerial decision making.

keyboard, monitor,

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Introduction to 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

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Figure 1.5 Communications Architecture

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The Evolution in Computer Applications

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.
Information
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Figure 1.6 The Physical System of the Firm

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The Evolution of 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.

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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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Figure 1.7 A Model of a Transaction Processing System

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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 firms operations.

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Figure 1.8 A MIS Model

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Management Information Systems (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.
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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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Decision Support Systems

Decision

Support System (DSS)assists management in solving a problem. Groupwaregroup-oriented software. Group decision support system (GDSS) combines groupware and the DSS. Artificial intelligence (AI)the science of providing computers with human intelligence.
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Figure 1.9 A DSS Model

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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 firms resources on an organization-wide basis.
Y2K complaint SAPERP Provider

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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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Can Influence Both the Source and Presentation Form of Information

Figure 1.10 Management Levels

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Can Be Found on All Business Areas of the Firm

Figure 1.11 Managers

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Figure 1.12

Management Level May Influence the Relative Emphasis on the Management Function

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Table 1.2 Mintzbergs Managerial Roles

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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. Solutionoutcome of the problem-solving activity. Decisiona particular selected course of action.

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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.
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Figure 1.13 Information Supports Each Problem-Solving Phase

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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.

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