MIS McLeod CH01

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

aymond McLeod and George Schell
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
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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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Intro to Computer
Architecture
Moores
Law computer power

doubles every year for a given cost.
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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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
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networks
Figure 1.5 Communications

Architecture
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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
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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.
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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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MIS (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.
Groupware group-oriented software.
Group decision support system (GDSS)
combines groupware and the DSS.
Artificial intelligence (AI) the science
of providing computers with human
intellegence.
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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
SAP ERP 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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Figure 1.10 Management

Levels
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Figure 1.11 Managers in

Business Areas
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Figure 1.12 Management

Functions
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Table 1.2 Mintzbergs

Managerial Roles
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Problem Solving & Decision

Making
Problem
a condition or event that is

harmful or potentially harmful to a firm
or that is beneficial or potentially
beneficial.
Solution outcome of the problemsolving activity.
Decision a particular selected course
of action.
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Four Problem-Solving Phases

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 & increased power of

both computers and communications.
Computers & 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
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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

Law computer power

hardware device that

Figure 1.5 Communications

systems are virtual systems

Figure 1.6 The Physical System

system is a firms physical

facts and figures that are

Figure 1.7 A Model of a

Figure 1.8 A MIS Model

provided by MIS describes

Virtual Office Systems

automation use of electronics

Decision Support Systems

Support System (DSS)

Figure 1.9 A DSS Model

Enterprise Resource Planning

Information System Users

users were clerical users on TPSs.

Figure 1.10 Management

Figure 1.11 Managers in

Figure 1.12 Management

Table 1.2 Mintzbergs

Problem Solving & Decision

a condition or event that is

Four Problem-Solving Phases

activity. Search the

Figure 1.13 Information

The Future of Information

cost & increased power of

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