Management

Information Systems,
10/e
Raymond McLeod Jr. and George P. Schell

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Raymond McLeod and George Schell
 Part I: Essential Concepts
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
►It is able to do Multitasking
► Smaller Computers
 Minicomputers
 Microcomputers
►Personal computers (PC)

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Raymond McLeod and George Schell
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Raymond McLeod and George Schell
 MINICOMPUTERS

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 MICROCOMPUTERS

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Raymond McLeod and George Schell
 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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Raymond McLeod and George Schell
 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 networks

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Raymond McLeod and George Schell
 Figure 1.5 Communications
Architecture

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Raymond McLeod and George Schell
 The 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, manpower, 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
 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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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
 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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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
intelligence.
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Raymond McLeod and George Schell
 Figure 1.9 A DSS Model

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Raymond McLeod and George Schell
 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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Raymond McLeod and George Schell
 Figure 1.10 Management Levels
Can Influence Both the Source and Presentation
Form of Information

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 Figure 1.11 Managers
Can Be Found on All Business Areas of the Firm

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 Figure 1.12 Management Level May
Influence the Relative Emphasis on the
Management Function

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 Table 1.2 Mintzberg’s Managerial
Roles

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 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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Raymond McLeod and George Schell
 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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Raymond McLeod and George Schell
 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 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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Raymond McLeod and George Schell