Chapter 1
Introduction to the Computer-Based
Introduction to the Computer-Based
Information System
Information System
MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell
Information Management
Information Management
Information:
The most valuable resource
Five Main Resources
Five Main Resources
PersonnelPersonnel MaterialMaterial MachinesMachines
– (including facilities and energy)(including facilities and energy)
MoneyMoney
Information (and data)Information (and data)
Physical
Physical
Conceptual Conceptual
}
How Resources are
How Resources are
Managed
Managed
AcquireAcquire
Assemble, or prepareAssemble, or prepare
Maximize useMaximize use
Factors Stimulating
Factors Stimulating
Interest in Information
Interest in Information
Management
Management
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
Who are the Users?
Who are the Users?
ManagersManagers
NonmanagersNonmanagers
Persons & organizations in the firm’s Persons & organizations in the firm’s environment
The Influence of
The Influence of
Management Level on
Management Level on
Information Source
Information Source
Strategic planning level
Strategic planning level
Management control level
Management control level
Operational control level
Operational control level InternalInternal Environmental
The Influence of
The Influence of
Management Level on
Management Level on
Information Form
Information Form
Strategic planning level
Strategic planning level
Management control level
Management control level
Operational control level
Operational control level DetailDetail Summary
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
Finance
Function ResourcesHuman Function
Strategic planning level
Strategic planning level
Management Control Level
Management Control Level
Operational Control
Operational Control
Level
What Managers do
What Managers do
--Fayol’s Functions
Fayol’s Functions
Strategic Planning Level
Management Control Level
Operational Control Level
What Managers do --
What Managers do --
Mintzberg’s Roles
Mintzberg’s Roles
Interpersonal rolesInterpersonal roles – FigureheadFigurehead
– LeaderLeader – LiaisonLiaison
Informational rolesInformational roles – MonitorMonitor
– DisseminatorDisseminator – SpokespersonSpokesperson
Decisional rolesDecisional roles
– EntrepreneurEntrepreneur – Disturbance Disturbance
handler handler
Management Skills
Management Skills
CommunicationsCommunications
Problem solvingProblem solving
How can an
How can an
information
information
specialist help?
specialist help?
Problem Solving
Problem Solving
Information Comes in
Information Comes in
Many Forms
Many Forms
C
Problem Solving
Problem Solving
Written Media
Written Media Oral MediaOral Media Internal Sources
Internal Sources External SourcesExternal Sources
Management Knowledge
Management Knowledge
Computer literacyComputer literacy
Information literacyInformation literacy
System Components
System Components
Component parts of a system that
Component parts of a system that
can control its own operations
can control its own operations
Objectives
Control
Control
mechanism
mechanism
Transformation
Transformation
Input
Open-Loop System
Open-Loop System
Transformation
Transformation
Input
Open versus Closed
Open versus Closed
Systems
Systems
Open system Open system
– Connected to its environment by means of Connected to its environment by means of resource flows
resource flows
Closed systemClosed system
Systems Systems
Can Be Composed of Subsystems or Elemental Parts
Can Be Composed of Subsystems or Elemental Parts
Subsystem A-2 Subsystem B-2 Subsystem B-1 System
Subsystem A Subsystem B Elemental Part C
Physical and Conceptual
Physical and Conceptual
Systems
Systems
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
A Systems View
A 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
Data and Information
Data 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
Evolution of the CBIS
Evolution 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
The CBIS Model
The CBIS Model
Information
Information
Computer-based Information System
(CBIS)
Accounting Information System
Management Information System
Decision Support Systems
The Virtual Office
Knowledge-based Systems
Information Services
Information Services
Information specialists
Information specialists have have full-time responsibility for
full-time responsibility for
developing and maintaining
developing and maintaining
computer-based systems
Traditional Communication
Traditional Communication
Chain
Chain
Database Administrator
User
User SystemsAnalyst Programmer Operator ComputerComputer
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
IS and EUC
IS and EUC
The End-User Computing
The End-User Computing
Communication Chain
Communication Chain
User Computer
Information Specialists
Support
Support
Communication
Justifying the CBIS
Justifying the CBIS
Justify in the same manner as any other Justify in the same manner as any other large investment
large investment
EconomicEconomic
– Cost reductionCost reduction
– Reduced inventory investmentReduced inventory investment
– Increased productivity (CAD/CAM)Increased productivity (CAD/CAM)
Achieving the CBIS
Reengineering the CBIS
Reengineering 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
Roles Played by the
Roles Played by the
Manager
Manager
and by the Information
and by the Information
Specialist
Specialist
Implementation
Phase Manager Information Specialist
Control
Define problem Support System Study
Design system Implement system
Summary
Summary
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
nonmanagers
nonmanagers
A system is an integration of elements working A system is an integration of elements working
toward an objective
toward an objective
Summary [cont.]
Summary [cont.]
CBIS composed of various componentsCBIS composed of various components
– AISAIS – MISMIS – DSSDSS
– Virtual officeVirtual office
– Knowledge-based systemsKnowledge-based systems
