Chapter 1

Introduction to the Computer-Based

Information System
MANAGEMENT INFORMATION SYSTEMS 8/E
Raymond McLeod, Jr. and George Schell
Copyright 2001 Prentice-Hall, Inc.
1-1
Information Management
Information:
The most valuable resource
1-2
Five Main Resources
Personnel
Material
Machines
(including facilities and energy)
Money
Information (and data)
Physical
Conceptual
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1-3
How Resources are Managed
Acquire
Assemble, or prepare
Maximize use
Replace
1-4
Factors Stimulating Interest in
Information Management
Increasing complexity of business activity
International economy
Worldwide competition
Increasing complexity of technology
Shrinking time frames
Social constraints
Improved computer capabilities
Size
Speed 1-5
Who are the Users?
Managers
Nonmanagers
Persons & organizations in the firms
environment
1-6
The Influence of Management
Level on Information Source
Strategic planning level
Management control level
Operational control level
Internal
Environmental
1-7
The Influence of Management
Level on Information Form
Strategic planning level
Management control level
Operational control level
Detail
Summary
1-8
Managers Can Be Found on All
Levels and in All Functional
Areas of the Firm
Finance
Function
Human
Resources
Function
Information
Services
Function
Manufacturing
Function
Marketing
Function
Strategic planning level
Management Control Level
Operational Control
Level
1-9
What Managers do --
Fayols Functions
Strategic
Planning Level
Management
Control Level
Operational
Control Level
Plan
Control
Organize
Direct
Staff
Organize
Staff
Direct
Plan
Control
Direct
Staff
Plan
Control
Organize
1-10
What Managers do --
Mintzbergs Roles
Interpersonal roles
Figurehead
Leader
Liaison
Informational roles
Monitor
Disseminator
Spokesperson
Decisional roles
Entrepreneur
Disturbance
handler
Resource allocator
Negotiator
1-11
Management Skills
Communications
Problem solving
How can an
information
specialist help?
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1-12
Problem Solving Information
Comes in Many Forms
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Problem Solving
Written Media Oral Media
Internal Sources External Sources
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1-13
Management Knowledge
Computer literacy

Information literacy

Whats the difference?
1-14
System Components
Component parts of a system that
can control its own operations
Objectives
Control
mechanism
Transformation
Input Output
1-15
Open-Loop System
Transformation
Input Output
1-16
Open versus Closed Systems
Open system
Connected to its environment by means of
resource flows
Closed system
Not connected to its environment
1-17
Systems
Can Be Composed of Subsystems or Elemental Parts
Subsystem A-2
Subsystem A-3
Subsystem B-2
Subsystem B-1
System
Subsystem A Subsystem B
Elemental
Part C
Subsystem A-1
Elemental
part B1
1-18
Physical and Conceptual Systems
Physical system
The business firm
Composed of physical resources
Conceptual system
Represents a physical system
Uses conceptual resources
Information
Data
1-19
A Systems View
Business operations are embedded within
a larger environmental setting
Reduces complexity
Requires good objectives
Emphasizes working together
Acknowledges interconnections
Values feedback
1-20
Data and Information
Information processor
Key element in the conceptual system
Computer
Noncomputer
Combination
Data is the raw material transformed into
information
1-21
Evolution of the CBIS
Data Processing (DP)
Management Information Systems (MIS) 1964
IBM promoted the concept as a means of selling
disk files and terminals
Decision Support Systems (DSS) 1971
Text books distinction:
MIS: Organizational/group - general
DSS: Individual - specific
Office Automation (OA) 1964
Artificial Intelligence (AI)/ Expert Systems
(ES) - 1990s
Heavy investment by businesses 1-22
The CBIS Model
Computer-based
Information System
(CBIS)
Accounting
Information System
Management
Information System
Decision Support
Systems
The Virtual
Office
Knowledge-based
Systems
Decisions
Problem
Information
Problem
Solution
1-23
Information Services
Information specialists have
full-time responsibility for
developing and maintaining
computer-based systems
1-24
Traditional Communication Chain
Database
Administrator
User
Systems
Analyst
Programmer
Operator
Computer
Network
Specialist
1-25
End-User Computing (EUC)
End-user computing
Development of all or part of applications
Information specialists act as consultants
Stimulants to EUC
Increased computer literacy
IS backlog
Low-cost hardware (the PC)
Prewritten software (electronic
spreadsheets)
1-26
IS and EUC
The End-User Computing
Communication Chain
User
Computer
Information
Specialists
Support
Communication
1-27
Justifying the CBIS
Justify in the same manner as any other
large investment
Economic
Cost reduction
Reduced inventory investment
Increased productivity (CAD/CAM)
Noneconomic
Perceived value
1-28
Achieving the CBIS
1-29
Reengineering the CBIS
Business Process Reengineering (BPR)
Reworking systems
Good system features retained
Becoming development methodology of
choice
1-30
Roles Played by the Manager
and by the Information Specialist
Implementation
Phase Manager Information Specialist
Control
Control
Control
Control
Planning
Analysis
Design
Use
Define problem
Support
System Study
Design system
Implement system
Make available
1-31
Summary
Information is one of five main resources
Computer output used by managers and
nonmanagers
A system is an integration of elements
working toward an objective
Physical
Conceptual
Data vs. Information
1-32
Summary [cont.]
CBIS composed of various components
AIS
MIS
DSS
Virtual office
Knowledge-based systems
End-user computing trends
CBIS development
1-33