Introduction to Information Systems Source: Management Information Systems, 10th edition Raymond McLeod, Jr & George P. 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.

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.

History of Information Systems Evolution in computer hardware Mainframe Multitasking Smaller computers Minicomputers Microcomputers Personal computers (PC)

Intro to Computer Architecture Moore’s Law Named after Gordon Moore, one of the founders of Intel, 1960 Originally stated that the storage density of integrated circuit on silicon chip doubled every year. Computer power doubles every 18 months for a given cost. If you purchased computer 15 yrs from today, it would be 1024 times as powerful, yet cost the same today’s model

Computer Architecture (Cont’d) Hardware – processor, keyboard, monitor, mouse, printer, etc. Software – application, operating, etc. Used to support managerial decision making. 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

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.

The Physical System of the Firm

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.

A Model of a Transaction Processing System

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.

A MIS Model

MIS (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.

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.

Decision Support Systems Decision Support System (DSS) – assists management in solving a problem. DSS has more rifle approach to problem solving whereas MIS has more information provider to solve problem

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

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

Management Levels

Managers in Business Areas

Management Functions By Henri Fayol, French 1914 By Hendri Fayol – Management Theorist, French 1914

Problem Solving & Decision Making Problem – a 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.

Four Problem-Solving Phases 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.

Information Supports Each Problem-solving Phase

The Future of Information Technology Reduced cost & increased power of both computers and communications. Computers & communications are converging, i.e. cell phones with browsers. Future computing will be low cost, small in size, mobile, and connected.