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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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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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Learning Objectives (Contd)
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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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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Introduction to Computer
Architecture (Contd)
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, 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
The Evolution of Computer
Applications (Contd)
Open system is a firms 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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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 firms operations.

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Figure 1.8 A MIS Model

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Management Information Systems
(Contd)
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.
Groupwaregroup-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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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 firms
resources on an organization-wide basis.
Y2K complaint
SAPERP Provider

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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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Raymond McLeod and George Schell
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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Raymond McLeod and George Schell
Table 1.2 Mintzbergs 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.
Solutionoutcome of the problem-solving
activity.
Decisiona 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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