1. Introduction to Management Information Systems SESI 01 Dosen : Agus Prayitno

2. The System Concept System: A group of interrelated components or interacting elements forming a unified whole.  input  processing  output  feedback  control } - environment - other systems O’Brien p 21

3. © 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 3 Figure 1.6 The Physical System of the Firm

4. Data versus Information  Data  raw facts or observations  meaningless  time independent  machine efficient  general purpose  Information  informative value  time dependent  human efficient  specific  based on previous knowledge Different types of information can be derived from the same source of data. O’Brien 24

5. The importance of Information Systems  An information system is a set of people, procedures and resources that:  collect  transform  disseminates information in an organization.  Information is used for better management  Companies cannot operate any more without automated information systems O’Brien p 7-8

6. IS Resources and Products People Resources  Specialists: system analysts, programmers, operators  End users : anyone else using the system Hardware Resources  Machines: computers, video monitors, disks, printers, scanners  Media: floppies, tapes, disks, plastic cards, paper forms,... Software Resources system, application, procedures  Programs: OS, spreadsheet programs, payroll programs,....  Procedures: data entry, error correction, paycheck distribution,... Data Resources database, model base, knowledge base  Product descriptions, customer records, inventory databases,... Network resources  Communication media, network support,... O’Brien p 26-27

7. Communications media and network support Components of an Information System People Resources : End users and IS specialists Data Resources Data, Model, and Knowledge Bases Software Resources Programs and Procedures Machines and Media Hardware Resources Communications media and network support Network resources Control of System Performance Storage of Data resources Input of Data Resources Processing Data into Information Output of Information Products O’Brien 21 - 25 O’Brien p 25

8. © 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 8 Dimensions of Information  Relevancy – pertains to the problem at hand.  Accuracy – strive for 100%.  Timeliness – should be available for decision making before a crisis situations devlop or opportunities are lost.  Completeness – the correct amount of aggregation and supports all areas of the decision being made.  Information overload is having too much information.

9. Expanding Roles of Information Systems 1950s-1960s:Data Processing  electronic data processing systems transaction processing, record keeping, traditional accounting 1960s-1970s:Management reporting  Management Information Systems mgt. reports for pre-specified information to support decision making 1970s-1980s:Decision Support  Decision Support Systems Interactive ad hoc support of the managerial decision process O’Brien 28

10. Expanding Roles of Information Systems (cont)  1980s-1990s:Strategic and End User Support  End User Computing Systems: direct productivity support  Executive Information Systems:Critical Information  Expert Systems: Knowledge based expert advise for end users  Strategic Information Systems: for competitive advantage  1990s – 2000s : Global internetworking  Internetworked information systems  for end-user, enterprise, and inter-organizational computing, collaboration, including global operations and management on the internet and other interconnected enterprise and global networks. O’Brien p 31

11. Properties of Information Systems Enterprise Perspective  major functional area of business  important cost that poses a resource management problem  important factor for efficiency, productivity, customer service and satisfaction  source of management information and support  important ingredient in strategic advantage and competitive position  vital, dynamic, and challenging career opportunity O’Brien p 10

12. The Role of Information Systems Support of Strategic Advantage Support of Managerial Decision Making Support of Business Operations

13. The Internetwork- enterprises The Internet Intranets Extranets Client Enterprise Supplier Other Organizations Electronic Commerce

14. Information Systems Information Systems Knowledge needed by managerial end users Management of IS Resources and activities Development of IS Solutions to business problems Applications of IS To operations management and strategic advantage Technology of IS Hardware, software, Telecommunications, and Data Management Foundation concepts of IS Fundamental Behavioral and Technical Aspects

15. © 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 15 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.

16. © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell 16 History of Information Systems  Evolution in computer hardware  Mainframe  Multitasking  Smaller computers  Minicomputers  Microcomputers  Personal computers (PC)

17. © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell 17 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.

18. Types of Information Systems O’Brien 29 O’Brien p 32-33

19. © 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 19 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.

20. © 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 20 Figure 1.7 A Model of a Transaction Processing System

21. © 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 21 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.

22. © 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 22 Figure 1.8 A MIS Model

23. © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell 23 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.

24. © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell 24 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.

25. © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell 25 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 intellegence.

26. © 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 26 Figure 1.9 A DSS Model

27. © 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 27 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

28. © 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 28 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

29. © 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 29 Figure 1.10 Management Levels

30. © 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 30 Figure 1.11 Managers in Business Areas

31. © 2007 by Prentice Hall Management Information Systems, 10/e Raymond McLeod and George Schell 31 Figure 1.12 Management Functions

32. © 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 32 Table 1.2 Mintzberg’s Managerial Roles

33. © 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 33 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.

34. © 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 34 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.

35. © 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 35 Figure 1.13 Information Supports Each Problem-solving Phase

36. © 2007 by Prentice HallManagement Information Systems, 10/e Raymond McLeod and George Schell 36 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.

37. Stakeholders in the Business Environment The communityCompetitors Suppliers Government Agencies Customers Stockholders Financial InstitutionsLabor Unions Management Information Systems Economic Resources : People Money Material Land Facilities Energy Information Organizational Processes : Production Marketing Finance Personnel Other Processes Goods and Services: Products Services Payments Contributions Information Other Effects Control Feedback Input PROCESSING Output O’Brien p 24

38. Information systems in the Company

39. Decision Support  financial models  what-if analyze  goal seeking  risk analysis  statistical analysis  management models  graphical representations  personal databases

40. Hospital Information Systems  patient registration  laboratory management  radiology  medical files  pharmacy  stock management and purchasing  human resources and scheduling  billing and A/C receivable  book keeping  operation theater

41. Other Applications  Transport  just in time  routing  shipping  Insurance  Tourism  Department stores