Introduction to Information Systems

Source: Management Information Systems, 10th editionRaymond McLeod, Jr & George P. Schell

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.

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.

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 FunctionsBy Henri Fayol, 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.

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.