Management
Information Systems,
10/e
Raymond McLeod Jr. and George P. Schell
© 2007 by Prentice Hall
Management Information Systems, 10/e
Raymond McLeod and George Schell
1
Part I: Essential Concepts
Chapter 1
Introduction to Information Systems
© 2007 by Prentice Hall
Management Information Systems, 10/e
Raymond McLeod and George Schell
2
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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Management Information Systems, 10/e
Raymond McLeod and George Schell
3
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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Management Information Systems, 10/e
Raymond McLeod and George Schell
4
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
long- term lowering of costs of
manufacturing leading to the high growth in
the demand for computers
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Half the Size But Twice the
Speed
► Miniaturization
has been a key factor in
lowering costs and increasing computer
performance
► Redesigning a circuit is to be half the
scale of a previous one and also double
its speed
► Thus, continually shrinking the
computer chip size has been important
in increasing computer processor
speeds
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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
many-fold 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
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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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Management Information Systems, 10/e
Raymond McLeod and George Schell
8
Introduction to Computer
Architecture
► Hardware-processor,
keyboard, monitor,
mouse, printer, etc.
► Software-application, operating, etc.
► Used to support managerial decision
making.
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Management Information Systems, 10/e
Raymond McLeod and George Schell
9
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
CD-ROM, floppy and hard disk drives
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12
INTRODUCTION TO
COMMUNICATIONS ARCHITECTURE
► Modem:
a hardware device that sends the
computer’s 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 it’s
cheap and easy to install
13
Introduction to 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
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Management Information Systems, 10/e
Raymond McLeod and George Schell
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Figure 1.5 Communications
Architecture
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Management Information Systems, 10/e
Raymond McLeod and George Schell
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Moore's Law
► Coined
in the 1960s by Gordon Moore,
one of the founders of Intel
► States that the storage density (and
therefore the processing power) of
integrated circuits is doubling about
every year
► By the 1970s the doubling rate had
slowed to 18 months, a pace that has
continued up to the present
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The Evolution in Computer
Applications
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.
► Information
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Management Information Systems, 10/e
Raymond McLeod and George Schell
18
Figure 1.6 The Physical System of
the Firm
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Management Information Systems, 10/e
Raymond McLeod and George Schell
19
The Evolution of 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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Management Information Systems, 10/e
Raymond McLeod and George Schell
20
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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Management Information Systems, 10/e
Raymond McLeod and George Schell
21
Figure 1.7 A Model of a Transaction
Processing System
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Management Information Systems, 10/e
Raymond McLeod and George Schell
22
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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Management Information Systems, 10/e
Raymond McLeod and George Schell
23
Figure 1.8 A MIS Model
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Management Information Systems, 10/e
Raymond McLeod and George Schell
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Management Information Systems
(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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Management Information Systems, 10/e
Raymond McLeod and George Schell
25
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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Management Information Systems, 10/e
Raymond McLeod and George Schell
26
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
intelligence.
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Management Information Systems, 10/e
Raymond McLeod and George Schell
27
Figure 1.9 A DSS Model
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Management Information Systems, 10/e
Raymond McLeod and George Schell
28
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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Management Information Systems, 10/e
Raymond McLeod and George Schell
29
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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Management Information Systems, 10/e
Raymond McLeod and George Schell
30
Figure 1.10 Management Levels
Can Influence Both the Source and Presentation
Form of Information
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Management Information Systems, 10/e
Raymond McLeod and George Schell
31
Figure 1.11 Managers
Can Be Found on All Business Areas of the Firm
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Management Information Systems, 10/e
Raymond McLeod and George Schell
32
Figure 1.12
Management Level May
Influence the Relative Emphasis on the
Management Function
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Management Information Systems, 10/e
Raymond McLeod and George Schell
33
Table 1.2 Mintzberg’s Managerial
Roles
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Management Information Systems, 10/e
Raymond McLeod and George Schell
34
Problem Solving and Decision
Making
► Problem–
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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Management Information Systems, 10/e
Raymond McLeod and George Schell
35
Problem-Solving Phases
► The
four phases are:
► 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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Management Information Systems, 10/e
Raymond McLeod and George Schell
36
Figure 1.13 Information Supports
Each Problem-Solving Phase
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Management Information Systems, 10/e
Raymond McLeod and George Schell
37
The Future of Information
Technology
► Reduced
cost and increased power of both
computers and communications.
► Computers and 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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Management Information Systems, 10/e
Raymond McLeod and George Schell
38