Management

Information Systems,
10/e
Raymond McLeod and George Schell

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Raymond McLeod and George Schell
 Chapter 1
Introduction to Information Systems

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Raymond 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.

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Raymond McLeod and George Schell
 Learning Objectives (Cont’d)
► 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.

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Raymond McLeod and George Schell
 History of Information Systems
► Evolution in computer hardware
 Mainframe
 Multitasking
► Smaller computers
 Minicomputers
 Microcomputers
 Personal computers (PC)

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Raymond McLeod and George Schell
 Intro to Computer Architecture
► Moore’s 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.

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Raymond McLeod and George Schell
 Computer Architecture (Cont’d)
► 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 networks

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Raymond McLeod and George Schell
 Figure 1.5 Communications
Architecture

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Raymond McLeod and George Schell
 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.

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Raymond McLeod and George Schell
 Figure 1.6 The Physical System of
the Firm

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Raymond McLeod and George Schell
 Computer Applications (Cont’d)
► Open system is a firm’s physical system
that interacts with its environment by
means of physical resource flows.
► Closed system is one that does not
communicate with its environment.

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Raymond McLeod and George Schell
 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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Raymond McLeod and George Schell
 Figure 1.7 A Model of a Transaction
Processing System

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Raymond McLeod and George Schell
 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 firm’s
operations.
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Raymond McLeod and George Schell
 Figure 1.8 A MIS Model

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Raymond McLeod and George Schell
 MIS (Cont’d)
► 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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Raymond McLeod and George Schell
 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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Raymond McLeod and George Schell
 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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Raymond McLeod and George Schell
 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 firm’s
resources on an organization-wide basis.
 Y2K complaint
 SAP – ERP Provider

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Raymond McLeod and George Schell
 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 Mintzberg’s 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 problem-solving
activity.
► Decision – a particular selected course of
action.

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Raymond McLeod and George Schell
 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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Raymond McLeod and George Schell
 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.

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Raymond McLeod and George Schell