CHAPTER 1 INTRODUCTION TO INFORMATION SYSTEMS

Management Information Systems, 10th edition, By Raymond McLeod, Jr. and George P. Schell 2007, Prentice Hall, Inc. Presented by Prof. Dr. Deden Mulyana, SE., M.Si.

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Introduction
The first computers were as large as a room and used light -bulb -sized vacuum tubes for much of their circuitry Vacuum tubes were later replaced with transistors and chips made using silicon wafer technology This change resulted in a dramatic and longterm lowering of costs of manufacturing leading to the high growth in the demand for computers
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HISTORY OF INFORMATION SYSTEMS

The earliest mainframe computers could only process a single task by a single user
1946: ENIAC (Electronic Numerical Integrator and Calculator) was developed 1951: first computer installed by the U.S. Census Bureau 1954: first computer used by G.E.

Over the last half century, hardware has seen manyfold increases in speed and capacity and dramatic size reductions Applications have also evolved from relatively simple accounting programs to systems designed to solve a wide variety of problems 3
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[Insert Figure 1.1 here]

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Multitasking
IBM revolutionized the computer industry in the mid-1960s by introducing the IBM System/360 line of computers These computers were the first to perform multiple processing tasks concurrently

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Smaller Computers
The first small-scale systems, called minicomputers, were smaller and less powerful but could handle processing for small organizations more cheaply Even smaller microcomputers designed for individual use were later developed, first by Apple and Tandy Corp. In 1982, IBM introduced the first personal computer, or PC, in 1982, which has since become the standard for individual computing http://www.deden08m.wordpress.com 6

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INTRODUCTION TO COMPUTER ARCHITECTURE

Most computers have similar architectures that combine software and hardware Software includes the operating system which controls the computer hardware and application software, such as word processing, spreadsheets, etc. Hardware includes, processors, memory and peripheral devices
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Computer Hardware
The processor manages the input and output devices, data storage devices, and operations on the data The central processing unit (CPU) controls all the other components Two types of memory are:
Random access memory (RAM) acts as the temporary workspace for the CPU Permanent data storage devices such as CDROM, floppy and hard disk drives
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INTRODUCTION TO COMMUNICATIONS ARCHITECTURE

Modem: a hardware device that sends the computers digital signals by modulating an analog carrier wave Data rates for various communications systems:
Telephone lines: 56 kbps Cable modem: up to 2 Mbps WiFi: 11 Mbps Local Area Networks: 10 to 100 Mbps

Wireless has recently taken off because its cheap and easy to install
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THE EVOLUTION IN COMPUTER APPLICATIONS

An information system is a conceptual system that enables managers to control and monitor a firms physical systems used to transform input resources into output resources

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Transaction Processing Systems

A transaction processing systems is shown in Figure 1.8 It gathers data from the firms physical system and environment and enters it into its database The software also transforms the data into information for the firms managers and other individuals in the firms environment
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Management Information Systems

Management information systems (MIS) transform the data in frontline systems, such as transaction processing systems into information useful to managers Typical MIS modules are report-writing software, and models that can simulate firm operations Information from the MIS is then used by organizational problem solvers as an aid in decisionmaking, as illustrated in Figure 1.9 Firms can also interact with suppliers or others to form inter organizational information systems (IOS), in which the MIS supplies information to the other members of the IOS as well as the firm's users
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Virtual Office Systems

Office automation - the use of electronics to facilitate communication, began with word processing Subsequent applications include electronic mail, voice mail, electronic calendaring, and audio and video conferencing These personal productivity systems now account for a large portion of a firm's use of the computer as a communications vehicle With improvements in networking, the concept of a virtual office has developed, in which office activities can be performed without the need for an employee to be in a specific location
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Decision Support Systems (DSS)

A DSS is a system used to assist managers in making decisions to help solve a specific problem Figure 1.10 shows the 3 sources for the information to be delivered to users: a relational database, a knowledge base, and a multidimensional database Two additional types of DSS-related software are:
group decision support systems: used in aiding a group of managers work out decisions, and artificial intelligence: in which a program is created for a computer to logically analyze a problem on its own
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Enterprise Resource Planning Systems (ERP)

Over time, firms began to use many different kinds of information systems throughout the firm During the 1990s firms began to see the value in integrating all of these systems so that they could function as a coordinated unit ERP systems are computer-based systems aimed at meeting this need that enable the management of all of a firms resources on an organizationwide basis
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MANAGERS AS INFORMATION SYSTEM USERS

Managers exist at various managerial levels and within various business areas of the firm What level an IS is developed for influences how it operates (see Figure 1.11) The 3 primary management levels are (see Figure 1.12): 1. Strategic planning level 2. Management control level 3. Operational control level
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What Managers Do
Managerial Functions (Managers do the following):
Plan what they are to do Organize to meet the plan Staff their organization with resources Direct them to execute the plan Control the resources, keeping them on course (see Figure 1.13)

Managerial Roles:
Mintzbergs framework is made of 10 roles that managers play, grouped into interpersonal, informational, and decisional activities (see Table 1.1)
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THE ROLE OF INFORMATION IN MANAGEMENT PROBLEM SOLVING

While a problem can be harmful or potentially harmful to a firm in a negative way, it can also be beneficial or potentially beneficial in a positive way The outcome of the problem-solving activity is a solution A decision is a particular selected course of action Simon described problem-solving as being made up of four phases:
Intelligence activity Design activity Choice activity Review activity
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Management Skills
Communications Problem solving

How can an information specialist help?

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Problem Solving Information Comes in Many Forms

Internal Sources External Sources Written Media
Scheduled Meetings
Noncomputer reports

Oral Media
Unscheduled Meetings

Letters & Memos

Computer Reports

Problem Solving
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Business Meals

Electronic mail

Periodicals

Telephone

Voice Mail

Tours

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Management Knowledge
Computer literacy Information literacy Whats the difference?

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The CBIS Model

Computer-based Information System

(CBIS) Problem Information

Accounting Information System Management Information System Decision Support Systems

Decisions

Problem Solution

The Virtual Office Knowledge-based Systems

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Information Services
Information specialists have
full-time responsibility for developing and maintaining computer-based systems

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Traditional Communication Chain

Database Administrator

User

Systems Analyst

Programmer

Operator

Computer

Network Specialist

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Justifying the CBIS

Justify in the same manner as any other large investment Economic
Cost reduction Reduced inventory investment Increased productivity (CAD/CAM)

Noneconomic
Perceived value
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Achieving the CBIS

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Reengineering the CBIS

Business Process Reengineering (BPR)
Reworking systems Good system features retained Becoming development methodology of choice

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Roles Played by the Manager and by the Information Specialist

Phase Manager Information Specialist

Planning Analysis Design Implementation Use

Define problem Control Control Control Control

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Support System Study Design system Implement system Make available

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THE FUTURE OF INFORMATION TECHNOLOGY

The future of information technology will be driven by the following two trends:
Ongoing cost reductions and increased power of information technologies Convergence between computers and communications

To take advantage of these new possibilities, managers must learn to incorporate information systems into decision making
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END OF CHAPTER 1

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