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© 2007 by Prentice Hall © 2007 by Prentice Hall Management Information Systems, Management Information Systems, 10/e Raymond McLeod and George 10/e Raymond McLeod and George Schell Schell 1 Management Management Information Information Systems, 10/e Systems, 10/e Raymond McLeod Jr. and George P. Raymond McLeod Jr. and George P. Schell Schell

Transcript of McLeod_CH01

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© 2007 by Prentice Hall© 2007 by Prentice Hall Management Information Systems, 10/e Management Information Systems, 10/e Raymond McLeod and George Schell Raymond McLeod and George Schell

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Management Management Information Systems, Information Systems,

10/e10/eRaymond McLeod Jr. and George P. Raymond McLeod Jr. and George P.

Schell Schell

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Part I: Essential Part I: Essential Concepts Chapter 1Concepts Chapter 1

Introduction to Information Introduction to Information Systems Systems

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Learning ObjectivesLearning Objectives► Understand how computer hardware has Understand how computer hardware has

evolved to its present level of sophistication.evolved to its present level of sophistication.► Know the basics of computer and Know the basics of computer and

communications architectures.communications architectures.► Understand the distinction between physical Understand the distinction between physical

and virtual systems.and virtual systems.► Describe how business applications have Describe how business applications have

evolved from an initial emphasis on evolved from an initial emphasis on accounting data to the current emphasis on accounting data to the current emphasis on information for problem solving.information for problem solving.

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Learning Objectives (Cont’d)Learning Objectives (Cont’d)► Understand what enterprise resource planning Understand what enterprise resource planning

systems are and the reasons for their systems are and the reasons for their popularity.popularity.

► Know how to tailor information systems to Know how to tailor information systems to managers based on where they are located in managers based on where they are located in the organizational structure and what they do.the organizational structure and what they do.

► Understand the relationship between problem Understand the relationship between problem solving and decision making and know the solving and decision making and know the basic problem-solving steps.basic problem-solving steps.

► Know what innovations to expect in Know what innovations to expect in information technology.information technology.

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History of Information History of Information SystemsSystems

►Evolution in Computer HardwareEvolution in Computer Hardware MainframeMainframe MultitaskingMultitasking

►Smaller ComputersSmaller Computers MinicomputersMinicomputers MicrocomputersMicrocomputers Personal computers (PC)Personal computers (PC)

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Introduction to Computer Introduction to Computer ArchitectureArchitecture

►Hardware-Hardware-processor, keyboard, processor, keyboard, monitor, mouse, printer, etc.monitor, mouse, printer, etc.

►Software-Software-application, operating, etc. application, operating, etc. ►Used to support managerial decision Used to support managerial decision

making.making.

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Introduction to Computer Introduction to Computer Architecture (Cont’d)Architecture (Cont’d)

►Modem-Modem-hardware device that hardware device that modulates the digital signals from a modulates the digital signals from a computer into analog signals computer into analog signals (telephone system), and vice versa.(telephone system), and vice versa.

►Direct communication standardsDirect communication standards Between computers is much faster.Between computers is much faster.

►Wireless networksWireless networks

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Figure 1.5 Communications Figure 1.5 Communications ArchitectureArchitecture

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The Evolution in Computer The Evolution in Computer ApplicationsApplications

►Information systemsInformation systems are are virtual virtual systemssystems that enable management to that enable management to control the operations of the control the operations of the physical physical systemsystem of the firm. of the firm.

►Physical system-Physical system-tangible resources tangible resources such as materials, personnel, machines, such as materials, personnel, machines, and money.and money.

►Virtual system-Virtual system-information resources information resources that are used to represent the physical that are used to represent the physical system.system.

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Figure 1.6 The Physical System Figure 1.6 The Physical System of the Firmof the Firm

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The Evolution of Computer The Evolution of Computer Applications (Cont’d)Applications (Cont’d)

►Open systemOpen system is a firm’s physical is a firm’s physical system that interacts with its system that interacts with its environment by means of physical environment by means of physical resource flows.resource flows.

►Closed systemClosed system is one that does not is one that does not communicate with its environment.communicate with its environment.

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Transaction Processing Transaction Processing SystemsSystems

►Data-Data-facts and figures that are facts and figures that are generally unusable due to their large generally unusable due to their large volume and unrefined nature.volume and unrefined nature.

►Information-Information-processed data that is processed data that is meaningful; tells users something.meaningful; tells users something.

►Transaction Processing System Transaction Processing System (TPS)(TPS) processes data that reflects the processes data that reflects the activities of the firm.activities of the firm.

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Figure 1.7 A Model of a Figure 1.7 A Model of a Transaction Processing SystemTransaction Processing System

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Management Information Management Information SystemsSystems

►Management Information System Management Information System (MIS)(MIS) is a computer-based system is a computer-based system that makes information available to that makes information available to users with similar needs.users with similar needs. Report-writing softwareReport-writing software produces both produces both

periodic and special reports.periodic and special reports. Mathematical modelsMathematical models produces produces

information as a simulation of the firm’s information as a simulation of the firm’s operations.operations.

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Figure 1.8 A MIS ModelFigure 1.8 A MIS Model

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Management Information Management Information Systems (Cont’d)Systems (Cont’d)

► Information provided by MIS describes Information provided by MIS describes the firm or one of its major systems.the firm or one of its major systems. What has happened in the past.What has happened in the past. What is happening now.What is happening now. What is likely to happen in the future.What is likely to happen in the future.

►Interorganizational information Interorganizational information systemsystem ( (IOSIOS)–is formed when a firm )–is formed when a firm interacts with others, such as suppliers.interacts with others, such as suppliers.

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Virtual Office SystemsVirtual Office Systems►Office automation-Office automation-use of electronics use of electronics

to facilitate communication.to facilitate communication.►Personal productivity systems-Personal productivity systems-use use

technology to self-manage clerical technology to self-manage clerical tasks such as calendars, address tasks such as calendars, address books, etc.books, etc.

►Virtual office-Virtual office-performing office performing office activities independent of a particular activities independent of a particular physical location.physical location.

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Decision Support SystemsDecision Support Systems►Decision Support System (DSS)Decision Support System (DSS)––

assists management in solving a problem.assists management in solving a problem.►GroupwareGroupware–group-oriented software.–group-oriented software.►Group decision support systemGroup decision support system

((GDSSGDSS) combines groupware and the ) combines groupware and the DSS.DSS.

►Artificial intelligenceArtificial intelligence ( (AIAI)–the science of )–the science of providing computers with human providing computers with human intelligence. intelligence.

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Figure 1.9 A DSS ModelFigure 1.9 A DSS Model

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Enterprise Resource Planning Enterprise Resource Planning SystemsSystems

►Enterprise Resource Planning Enterprise Resource Planning System (ERP)System (ERP) is a computer-based is a computer-based system that enables the management system that enables the management of all of the firm’s resources on an of all of the firm’s resources on an organization-wide basis.organization-wide basis. Y2K complaintY2K complaint SAP–ERP ProviderSAP–ERP Provider

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Information System UsersInformation System Users►First users were clerical users on TPSs.First users were clerical users on TPSs.►MISs added problem-solvers as users.MISs added problem-solvers as users.►Managerial LevelsManagerial Levels

Strategic planning levelStrategic planning level Management control levelManagement control level Operational control levelOperational control level

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Figure 1.10 Management Levels Figure 1.10 Management Levels Can Influence Both the Source and Can Influence Both the Source and Presentation Form of InformationPresentation Form of Information

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Figure 1.11 ManagersFigure 1.11 ManagersCan Be Found on All Business Areas of the Can Be Found on All Business Areas of the

FirmFirm

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Figure 1.12 Figure 1.12 Management Level May Management Level May Influence the Relative Emphasis on the Influence the Relative Emphasis on the

Management FunctionManagement Function

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Table 1.2 Mintzberg’s Table 1.2 Mintzberg’s Managerial RolesManagerial Roles

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Problem Solving and Decision Problem Solving and Decision MakingMaking

►ProblemProblem– condition or event that is – condition or event that is harmful or potentially harmful to a firm harmful or potentially harmful to a firm or that is beneficial or potentially or that is beneficial or potentially beneficial.beneficial.

►SolutionSolution–outcome of the problem-–outcome of the problem-solving activity.solving activity.

►DecisionDecision–a particular selected course –a particular selected course of action.of action.

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Problem-Solving PhasesProblem-Solving Phases►The four phases are:The four phases are:►Intelligence activityIntelligence activity. Search the . Search the

environment for conditions calling for environment for conditions calling for a solution.a solution.

►Design activityDesign activity. Invent, develop, and . Invent, develop, and analyze possible courses of action.analyze possible courses of action.

►Choice activityChoice activity. Select a particular . Select a particular course of action from those available.course of action from those available.

►Review activityReview activity. Assess past choices.. Assess past choices.

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Figure 1.13 Information Figure 1.13 Information Supports Each Problem-Solving Supports Each Problem-Solving

PhasePhase

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The Future of Information The Future of Information TechnologyTechnology

►Reduced cost and increased power of Reduced cost and increased power of both computers and communications.both computers and communications.

►Computers and communications are Computers and communications are converging, i.e., cell phones with converging, i.e., cell phones with browsers.browsers.

►Future computing will be low cost, Future computing will be low cost, small in size, mobile, and connected.small in size, mobile, and connected.