MANAGEMENT INFORMATION SYSTEM

Chapter 1Introduction to Information Systems

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OVERVIEW

History of Information Systems (IS)Evolution in Computer HardwareIntroduction to Computer ArchitectureIntroduction to Communication ArchitectureComputer Applications, MISDecision Support SystemProblem Solving and Decision MakingProblem Solving PhasesThe future of Information Technology

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HISTORY OF INFORMATION SYSTEMS

Evolution in Computer HardwareMainframeMultitasking

Smaller ComputersMinicomputersMicrocomputersPersonal computers (PC)

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INTRODUCTION TO COMPUTER ARCHITECTURE

Hardwareprocessor, keyboard, monitor, mouse, printer,

etc. Software

application, operating, etc. Used to support managerial decision making.

Modemhardware device that modulates the digital

signals from a computer into analog signals (telephone system), and vice versa.

Direct communication standards Wireless networks

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COMMUNICATIONS ARCHITECTURE

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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 systemtangible resources such as materials,

personnel, machines, and money. Virtual system

information resources that are used to represent the physical system.

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THE PHYSICAL SYSTEM OF THE FIRM

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THE EVOLUTION OF COMPUTER APPLICATIONS (CONT’D)

Open systemis a firm’s physical system that

interacts with its environment by means of physical resource flows.

Closed system one that does not communicate

with its environment.

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TRANSACTION PROCESSING SYSTEMS

Datafacts and figures that are generally unusable

due to their large volume and unrefined nature.

Informationprocessed data that is meaningful; tells users

something. Transaction Processing System (TPS)

processes data that reflects the activities of the firm.

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A MODEL OF TPS

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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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MIS MODEL

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MANAGEMENT INFORMATION SYSTEMS

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.13

VIRTUAL OFFICE SYSTEMS

Office automationuse of electronics to facilitate communication.

Personal productivity systemsuse 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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DECISION SUPPORT SYSTEMS

Decision Support System (DSS)assists management in solving a problem.

Groupwaregroup-oriented software.

Group decision support system (GDSS)combines groupware and the DSS.

Artificial intelligence (AI)the science of providing computers with human

intelligence. 15

DSS MODEL

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INFORMATION SYSTEM USERS

First users were clerical users on TPSs. MISs added problem-solvers as users. Managerial Levels

Strategic planning levelManagement control levelOperational control level

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MANAGEMENT LEVELS CAN INFLUENCE BOTH THE SOURCE AND PRESENTATION FORM OF INFORMATION

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MANAGERSCAN BE FOUND ON ALL BUSINESS AREAS OF THE FIRM

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MANAGEMENT LEVEL MAY INFLUENCE THE RELATIVE EMPHASIS ON THE MANAGEMENT FUNCTION

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MINTZBERG’S MANAGERIAL ROLES

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PROBLEM SOLVING AND DECISION MAKING

Problemcondition or event that is harmful or

potentially harmful to a firm or that is beneficial or potentially beneficial.

Solutionoutcome of the problem-solving activity.

Decisiona particular selected course of action.

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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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INFORMATION SUPPORTS EACH PROBLEM-SOLVING PHASE

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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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EXTRA: MOORE’S LAW

Coined in 1960s Originally stated that the storage density

of integrated circuits on a silicon chip doubled about every year

By the 1970s, the rate doubling had increased to 18 months, a pace that continues today

What this means to users is that power of a computer doubles about every 18 months for a given cost 26

EXTRA: MOORE’S LAW

E.g. Salary comparison

YEARYEAR FRIENDFRIEND YOUYOU11 $40,000$40,000 $5,000$5,00033 $57,600$57,600 $20,000$20,00066 $99,533$99,533 $80,000$80,00099 $171,993$171,993 $320,000$320,0001212 $297,203$297,203 $1,280,000$1,280,0001515 $513,567$513,567 $5,120,000$5,120,000

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