McLeod CH01

Management
Information Systems,
Raymond McLeod
Jr.
and
George
P.
10/e
Schell
2007 by Prentice Hall
Management Information Systems, 10/e R

aymond McLeod and George Schell
Part I: Essential
Concepts Chapter 1
Introduction to Information
Systems
2007 by Prentice Hall
Management Information Systems, 10/e R

aymond 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.
2007 by Prentice H
all
Management Information S
ystems, 10/e Raymond Mc
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.
2007 by Prentice H
all
History of Information
Systems
Evolution
in Computer Hardware
Mainframe
Multitasking
Smaller Computers
Minicomputers
Microcomputers
Personal computers (PC)
2007 by Prentice H
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Introduction to Computer
Architecture
Hardware-processor,
keyboard,
monitor, mouse, printer, etc.
Software-application, operating, etc.
Used to support managerial decision
making.
2007 by Prentice H
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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
2007 by Prentice H
all
networks
Figure 1.5 Communications

Architecture
2007 by Prentice H
all
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.
2007 by Prentice H
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Figure 1.6 The Physical System

of the Firm
2007 by Prentice H
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10
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.
2007 by Prentice H
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11
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.
2007 by Prentice H
all
12
Figure 1.7 A Model of a

Transaction Processing System
2007 by Prentice H
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13
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.
2007 by Prentice H
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14
Figure 1.8 A MIS Model
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15
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.
2007 by Prentice H
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16
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.
2007 by Prentice H
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17
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.
2007 by Prentice H
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18
Figure 1.9 A DSS Model
2007 by Prentice H
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19
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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20
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
2007 by Prentice H
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21
Figure 1.10 Management Levels

Can Influence Both the Source and
Presentation Form of Information
2007 by Prentice H
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Figure 1.11 Managers
Can Be Found on All Business Areas of the

Firm
2007 by Prentice H
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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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25
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 problemsolving 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.
2007 by Prentice H
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Figure 1.13 Information

Supports Each Problem-Solving
Phase
2007 by Prentice H
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28
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.
2007 by Prentice H
all
29

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McLeod CH01

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Management

2007 by Prentice Hall

Management Information Systems, 10/e R

2007 by Prentice Hall

Management Information Systems, 10/e R

how computer hardware has

Learning Objectives (Contd)

what enterprise resource planning

Figure 1.5 Communications

The Evolution in Computer

systems are virtual

Figure 1.6 The Physical System

The Evolution of Computer

system is a firms physical

and figures that are

Figure 1.7 A Model of a

Figure 1.8 A MIS Model

provided by MIS describes

Virtual Office Systems

Decision Support Systems

Support System (DSS)assists

Figure 1.9 A DSS Model

Enterprise Resource Planning

Information System Users

users were clerical users on TPSs.

Figure 1.10 Management Levels

Figure 1.11 Managers

Can Be Found on All Business Areas of the

Figure 1.12 Management Level May

Table 1.2 Mintzbergs

Problem Solving and Decision

condition or event that is

four phases are:

Figure 1.13 Information

The Future of Information

cost and increased power of

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