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

Objectives :Objectives :Know the main types of resources that are available to a firm.Appreciate that information must be managed just as any otherresource.Have an introductory understanding of systems concepts.Know the difference between data and information. Know theelements of the computer-based information system (CBIS) andhow they evolved.Be familiar with the types of information specialists who can assistthe user in developing information systems.Understand that users are doing more and more of theirapplication development, as well as understand how this trendaffects information specialists.Understand how a computer system evolves through a life cycle andrecognize the roles played by the manager and informationspecialists.Understand that information systems belong to their users, not tothe information specialists.

1-2

Information ManagementInformation Management

Information:The most valuable resourceThe most valuable resource

1-3

Five Main ResourcesFive Main Resources

PersonnelPersonnelMaterialMaterialMachinesMachines–– (including facilities and energy)(including facilities and energy)

MoneyMoneyInformation (and data)Information (and data)

PhysicalPhysical

ConceptualConceptual}

}1-4

How Resources are ManagedHow Resources are Managed

AcquireAcquireAssemble, or prepareAssemble, or prepareMaximize useMaximize useReplaceReplace

1-5

Factors Stimulating Interest inFactors Stimulating Interest inInformation ManagementInformation 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–– SizeSize–– SpeedSpeed 1-6

Who are the Who are the Users ?Users ?

ManagersManagersNonmanagersNonmanagersPersons & organizations in the firm’sPersons & organizations in the firm’senvironmentenvironment

1-7

The Influence of ManagementThe Influence of ManagementLevel on Information SourceLevel on Information Source

Strategic planning levelStrategic planning level

Management control levelManagement control level

Operational control levelOperational control level InternalInternal

EnvironmentalEnvironmental

1-8

The Influence of ManagementThe Influence of ManagementLevel on Information FormLevel on Information Form

Strategic planning levelStrategic planning level

Management control levelManagement control level

Operational control levelOperational control level DetailDetail

SummarySummary

1-9

Managers Can Be Found on AllManagers Can Be Found on AllLevels and in All FunctionalLevels and in All Functional

Areas of the FirmAreas of the Firm

FinanceFunction

HumanResourcesFunction

InformationServicesFunction

ManufacturingFunction

MarketingFunction

Strategic planning levelStrategic planning level

Management Control LevelManagement Control Level

Operational Control Operational Control LevelLevel

1-10

What Managers do --What Managers do --Fayol’s FunctionsFayol’s Functions

StrategicPlanning Level

Management Control Level

Operational Control Level

Plan

Control

Organize

Direct

Staff

Organize

Staff

Direct

Plan

Control

Direct

Staff

Plan

Control

Organize

1-11

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–– DisturbanceDisturbance

handlerhandler–– Resource allocatorResource allocator–– NegotiatorNegotiator

1-12

Management SkillsManagement Skills

CommunicationsCommunications

Problem solvingProblem solving

How can anHow can aninformationinformationspecialist help?specialist help?}

1-13

Problem Solving InformationProblem Solving InformationComes in Many FormsComes in Many Forms

Co

mp

ute

r R

epo

rts

Co

mp

ute

r R

epo

rts

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

1-14

Management KnowledgeManagement Knowledge

Computer literacyComputer literacy

Information literacyInformation literacy

What’s the difference?What’s the difference?

1-15

System ComponentsSystem ComponentsComponent parts of a system thatComponent parts of a system that

can control its own operationscan control its own operations

Objectives

ControlControlmechanismmechanism

TransformationTransformationInputInput OutputOutput

1-16

Open-Loop SystemOpen-Loop System

TransformationTransformationInputInput OutputOutput

1-17

Open versus Closed SystemsOpen versus Closed Systems

Open systemOpen system–– Connected to its environment by means ofConnected to its environment by means of

resource flowsresource flows

Closed systemClosed system–– Not connected to its environmentNot connected to its environment

1-18

Systems SystemsCan 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 1-19

Physical and Conceptual SystemsPhysical and Conceptual Systems

Physical systemPhysical system–– The business firmThe 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»» DataData

1-20

A Systems ViewA Systems View

Business operations are embedded withinBusiness operations are embedded withina larger environmental settinga larger environmental setting–– Reduces complexityReduces complexity–– Requires good objectivesRequires good objectives–– Emphasizes working togetherEmphasizes working together–– Acknowledges interconnectionsAcknowledges interconnections–– Values feedbackValues feedback

1-21

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 intoData is the raw material transformed intoinformationinformation

1-22

Evolution of the CBISEvolution of the CBISData 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) 1964Artificial Intelligence (AI)/ Expert Systems(ES) - 1990s– Heavy investment by businesses 1-23

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

1-24

Information ServicesInformation Services

Information specialists Information specialists havehavefull-time responsibility forfull-time responsibility for

developing and maintainingdeveloping and maintainingcomputer-based systemscomputer-based systems

1-25

Traditional Communication ChainTraditional Communication Chain

DatabaseAdministrator

UserUser SystemsAnalyst

Programmer Operator ComputerComputer

NetworkSpecialist

1-26

End-User Computing (EUC)

End-user computingEnd-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 (electronicPrewritten software (electronic

spreadsheets)spreadsheets) 1-27

IS and EUCIS and EUCThe End-User ComputingThe End-User Computing

Communication ChainCommunication Chain

User Computer

InformationSpecialists

SupportSupport

CommunicationCommunication

1-28

Justifying the CBISJustifying the CBIS

Justify in the same manner as any otherJustify in the same manner as any otherlarge investmentlarge investmentEconomicEconomic–– Cost reductionCost reduction–– Reduced inventory investmentReduced inventory investment–– Increased productivity (CAD/CAM)Increased productivity (CAD/CAM)

NoneconomicNoneconomic–– Perceived valuePerceived value

1-29

Achieving the CBISAchieving the CBIS

1-30

Reengineering the CBISReengineering the CBIS

Business Process Reengineering (BPR)Business Process Reengineering (BPR)–– Reworking systemsReworking systems–– Good system features retainedGood system features retained–– Becoming development methodology ofBecoming development methodology of

choicechoice

1-31

Roles Played by the ManagerRoles Played by the Managerand by the Information Specialistand by the Information Specialist

Implementation

Phase Manager Information Specialist

Control

Control

Control

Control

Planning

Analysis

Design

Use

Define problem Support

System Study

Design system

Implement system

Make available

1-32

SummarySummary

Information is one of five main resourcesInformation is one of five main resourcesComputer output used by managers andComputer output used by managers andnonmanagersnonmanagersA system is an integration of elementsA system is an integration of elementsworking toward an objectiveworking toward an objective–– PhysicalPhysical–– ConceptualConceptual

Data vs. InformationData vs. Information1-33

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 trendsCBIS developmentCBIS development

1-34

Kategori Sistem Berdasarkan pada Tom Pike,Kategori Sistem Berdasarkan pada Tom Pike,Information Renaissance (Coral Springs, FL :Information Renaissance (Coral Springs, FL :Shoerwood Publishing, 1993). ©Shoerwood Publishing, 1993). ©

GambaranSituasi

MembuatKeputusan

Pengendalian Komunikasi

Sedikit BanyakMendukung Keputusan

Tinggi

Rendah

VolumeTransaksi

Penambahan dari Sistem Pengganda NilaiPenambahan dari Sistem Pengganda NilaiBerdasarkan Tom Pike, Information RenaissanceBerdasarkan Tom Pike, Information Renaissance(Coral Springs, FL : Shoerwood Publishing,(Coral Springs, FL : Shoerwood Publishing,1993). ©1993). ©

Gambaran Situasi Membuat Keputusan

Pengendalian Komunikasi

Sedikit BanyakMendukung Keputusan

Tinggi

Rendah

VolumeTransaksi