MANAGEMENT INFORMATION SYSTEMS 8/E

Raymond McLeod, Jr. and George Schell

Chapter 1
Introduction to the Computer-Based
Information System

1-1
Copyright 2001 Prentice-Hall, Inc.
Objectives :
Q Know the main types of resources that are available to a firm.
Q Appreciate that information must be managed just as any other
resource.
Q Have an introductory understanding of systems concepts.
Q Know the difference between data and information. Know the
elements of the computer-based information system (CBIS) and
how they evolved.
Q Be familiar with the types of information specialists who can assist
the user in developing information systems.
Q Understand that users are doing more and more of their
application development, as well as understand how this trend
affects information specialists.
Q Understand how a computer system evolves through a life cycle and
recognize the roles played by the manager and information
specialists.
Q Understand that information systems belong to their users, not to
the information specialists.
1-2
 Information Management

Information:
The most valuable resource

1-3
 Five Main Resources

}
Q Personnel
Q Material
Q Machines Physical
– (including facilities and energy)

Q Money
Q Information (and data) } Conceptual

1-4
 How Resources are Managed

Q Acquire
Q Assemble, or prepare
Q Maximize use
Q Replace

1-5
 Factors Stimulating Interest in
Information Management
Q Increasing complexity of business activity
– International economy
– Worldwide competition
– Increasing complexity of technology
– Shrinking time frames
– Social constraints
Q Improved computer capabilities
– Size
– Speed 1-6
 Who are the Users ?

Q Managers
Q Nonmanagers
Q Persons & organizations in the firm’s
environment

1-7
 The Influence of Management
Level on Information Source

Strategic planning level Environmental

Management control level

Operational control level Internal

1-8
 The Influence of Management
Level on Information Form

Strategic planning level Summary

Management control level

Operational control level Detail

1-9
 Managers Can Be Found on All
Levels and in All Functional
Areas of the Firm
Strategic planning level

Management Control Level

Operational Control
Level

Finance Human Information Manufacturing Marketing

Function Resources Services Function Function
Function Function
1-10
 What Managers do --
Fayol’s Functions
Strategic Management Operational
Planning Level Control Level Control Level

Plan Organize Direct

Direct Plan Control
Control
Staff Staff Staff
Control Organize
Organize Direct Plan

1-11
 What Managers do --
Mintzberg’s Roles
Q Interpersonal roles Q Decisional roles
– Figurehead – Entrepreneur
– Leader – Disturbance
– Liaison handler
Q Informational roles – Resource allocator
– Monitor – Negotiator
– Disseminator
– Spokesperson
1-12
 Management Skills

Q
Communications

Problem solving } How can an

information
specialist help?

1-13
 Computer Reports

Noncomputer reports
Letters & Memos

Electronic mail
Periodicals Written Media
Internal Sources

Scheduled Meetings

Problem Solving
Unscheduled Meetings

Telephone

Voice Mail
Comes in Many Forms

Oral Media

Tours
External Sources

Business Meals
Problem Solving Information

1-14
 Management Knowledge

Q Computer literacy

Q Information literacy

Q What’s the difference?

1-15
 System Components
Component parts of a system that
can control its own operations

Objectives

Control
mechanism

Input Transformation Output

1-16
 Open-Loop System

Input Transformation Output

1-17
 Open versus Closed Systems

Q Open system
– Connected to its environment by means of
resource flows
Q Closed system
– Not connected to its environment

1-18
 Systems
Can Be Composed of Subsystems or Elemental Parts
System

Subsystem A Subsystem B Elemental

Part C

Subsystem A-1 Subsystem B-1

Subsystem A-2 Subsystem B-2

Elemental
Subsystem A-3
part B1 1-19
Physical and Conceptual Systems

Q Physical system
– The business firm
– Composed of physical resources
Q Conceptual system
– Represents a physical system
– Uses conceptual resources
» Information
» Data

1-20
 A Systems View

Q Business operations are embedded within

a larger environmental setting
– Reduces complexity
– Requires good objectives
– Emphasizes working together
– Acknowledges interconnections
– Values feedback

1-21
 Data and Information

Q Information processor
– Key element in the conceptual system
– Computer
– Noncomputer
– Combination
Q Data is the raw material transformed into
information

1-22
 Evolution of the CBIS
Q Data Processing (DP)
Q Management Information Systems (MIS) 1964
– IBM promoted the concept as a means of selling
disk files and terminals
Q Decision Support Systems (DSS) 1971
– Text book’s distinction:
» MIS: Organizational/group - general
» DSS: Individual - specific
Q Office Automation (OA) 1964
Q Artificial Intelligence (AI)/ Expert Systems
(ES) - 1990s
– Heavy investment by businesses 1-23
 The CBIS Model
Computer-based
Information System
(CBIS)

Problem Accounting
Information System

Information Management
Decisions Information System

Decision Support
Systems

Problem
The Virtual
Solution Office

Knowledge-based
Systems 1-24
 Information Services

Information specialists have

full-time responsibility for
developing and maintaining
computer-based systems

1-25
 Traditional Communication Chain
Database
Administrator

Systems Operator
User Analyst
Programmer Computer

Network
Specialist

1-26
 End-User Computing (EUC)

Q End-user computing
– Development of all or part of applications
– Information specialists act as consultants
Q Stimulants to EUC
– Increased computer literacy
– IS backlog
– Low-cost hardware (the PC)
– Prewritten software (electronic
spreadsheets) 1-27
 IS and EUC
The End-User Computing
Communication Chain

Information
Specialists

Support

Communication
User Computer
1-28
 Justifying the CBIS

Q Justify in the same manner as any other

large investment
Q Economic
– Cost reduction
– Reduced inventory investment
– Increased productivity (CAD/CAM)
Q Noneconomic
– Perceived value
1-29
Achieving the CBIS

1-30
 Reengineering the CBIS

Q Business Process Reengineering (BPR)

– Reworking systems
– Good system features retained
– Becoming development methodology of
choice

1-31
 Roles Played by the Manager
and by the Information Specialist
Phase Manager Information Specialist

Planning Define problem Support

Analysis Control System Study

Design Control Design system

Implementation Control Implement system

Use Control Make available

1-32
 Summary

Q Information is one of five main resources

Q Computer output used by managers and
nonmanagers
Q A system is an integration of elements
working toward an objective
– Physical
– Conceptual
Q Data vs. Information
1-33
 Summary [cont.]

Q CBIS composed of various components

– AIS
– MIS
– DSS
– Virtual office
– Knowledge-based systems
Q End-user computing trends
Q CBIS development
1-34
Kategori Sistem Berdasarkan pada Tom Pike,
Information Renaissance (Coral Springs, FL :
Shoerwood Publishing, 1993). ©

Tinggi
Gambaran Membuat
Situasi Keputusan
Volume
Transaksi
Pengendalian Komunikasi

Rendah
Sedikit Banyak
Mendukung Keputusan
Penambahan dari Sistem Pengganda Nilai
Berdasarkan Tom Pike, Information Renaissance
(Coral Springs, FL : Shoerwood Publishing,
1993). ©
Tinggi Gambaran Situasi Membuat Keputusan

Volume
Transaksi

Pengendalian Komunikasi
Rendah
Sedikit Banyak
Mendukung Keputusan