Chapter 1Introduction to the Computer-BasedIntroduction to the Computer-Based

Information SystemInformation System

1-1

Information ManagementInformation Management

Information: The most valuable resource The most valuable resource

1-2

Five Main ResourcesFive Main Resources

PersonnelPersonnel MaterialMaterial MachinesMachines

– (including facilities and energy)(including facilities and energy)

MoneyMoney Information (and data)Information (and data)

PhysicalPhysical

ConceptualConceptual}

}1-3

How Resources are How Resources are ManagedManaged

AcquireAcquire Assemble, or prepareAssemble, or prepare Maximize useMaximize use ReplaceReplace

1-4

Factors Stimulating Factors Stimulating Interest in Information Interest in Information

ManagementManagement Increasing complexity of business activityIncreasing complexity of business activity

– International economyInternational economy

– Worldwide competitionWorldwide competition

– Increasing complexity of technologyIncreasing complexity of technology

– Shrinking time framesShrinking time frames

– Social constraintsSocial constraints Improved computer capabilitiesImproved computer capabilities

– SizeSize

– SpeedSpeed

1-5

Who are the Users?Who are the Users?

ManagersManagers NonmanagersNonmanagers Persons & organizations in the firmPersons & organizations in the firm’’s s

environmentenvironment

1-6

The Influence of The Influence of Management Level on Management Level on

Information SourceInformation Source

Strategic planning levelStrategic planning level

Management control levelManagement control level

Operational control levelOperational control level InternalInternal

EnvironmentalEnvironmental

1-7

The Influence of The Influence of Management Level on Management Level on

Information FormInformation Form

Strategic planning levelStrategic planning level

Management control levelManagement control level

Operational control levelOperational control level DetailDetail

SummarySummary

1-8

Managers Can Be Found Managers Can Be Found on All Levels and in All on All Levels and in All

Functional Functional Areas of the Firm Areas of the Firm

FinanceFunction

Human ResourcesFunction

InformationServicesFunction

ManufacturingFunction

MarketingFunction

Strategic planning levelStrategic planning level

Management Control LevelManagement Control Level

Operational Control Operational Control LevelLevel

1-9

What Managers do --What Managers do --FayolFayol’’s Functionss 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 -- What Managers do -- MintzbergMintzberg’’s Roless Roles

Interpersonal rolesInterpersonal roles– FigureheadFigurehead– LeaderLeader– LiaisonLiaison

Informational rolesInformational roles– MonitorMonitor– DisseminatorDisseminator– SpokespersonSpokesperson

Decisional rolesDecisional roles– EntrepreneurEntrepreneur– Disturbance Disturbance

handlerhandler– Resource allocatorResource allocator– NegotiatorNegotiator

1-11

Management SkillsManagement Skills

CommunicationsCommunications

Problem solvingProblem solving

How can an How can an information information specialist help?specialist help?}

1-12

Problem Solving Problem Solving Information Comes in Information Comes in

Many FormsMany FormsC

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Rep

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Rep

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Problem SolvingProblem Solving

Written MediaWritten Media Oral MediaOral Media

Internal SourcesInternal Sources External SourcesExternal Sources

Sch

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Sch

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Un

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Bu

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1-13

Management KnowledgeManagement Knowledge

Computer literacyComputer literacy

Information literacyInformation literacy

WhatWhat’’s the difference?s the difference?

1-14

System ComponentsSystem ComponentsComponent parts of a system that Component parts of a system that

can control its own operationscan control its own operations

Objectives

Control Control mechanismmechanism

TransformationTransformationInputInput OutputOutput

1-15

Open-Loop SystemOpen-Loop System

TransformationTransformationInputInput OutputOutput

1-16

Open versus Closed Open versus Closed SystemsSystems

Open system Open system – Connected to its environment by means of Connected to its environment by means of

resource flowsresource flows Closed systemClosed system

– Not connected to its environmentNot connected to its environment

1-17

Systems Systems Can Be Composed of Subsystems or Elemental PartsCan 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 Physical and Conceptual SystemsSystems

Physical system Physical system – The business firm The business firm – Composed of physical resourcesComposed of physical resources

Conceptual systemConceptual system– Represents a physical systemRepresents a physical system– Uses conceptual resourcesUses conceptual resources

» InformationInformation

» Data Data

1-19

A Systems ViewA Systems View

Business operations are embedded within a larger environmental settingBusiness operations are embedded within a larger environmental setting– Reduces complexityReduces complexity– Requires good objectivesRequires good objectives– Emphasizes working together Emphasizes working together – Acknowledges interconnectionsAcknowledges interconnections– Values feedbackValues feedback

1-20

Data and InformationData and Information

Information processorInformation processor– Key element in the conceptual systemKey element in the conceptual system– ComputerComputer– NoncomputerNoncomputer– CombinationCombination

Data is the raw material transformed into Data is the raw material transformed into informationinformation

1-21

Evolution of the CBISEvolution 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 book’s 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 ModelThe CBIS ModelComputer-based

Information System

(CBIS)

Accounting Information System

ManagementInformation System

Decision SupportSystems

The VirtualOffice

Knowledge-based Systems

DecisionsDecisions

ProblemProblem

InformationInformation

ProblemProblemSolutionSolution

1-23

Information ServicesInformation Services

Information specialists Information specialists have have full-time responsibility for full-time responsibility for

developing and maintaining developing and maintaining computer-based systemscomputer-based systems

1-24

Traditional Communication Traditional Communication ChainChain

DatabaseAdministrator

UserUserSystemsAnalyst

Programmer Operator ComputerComputer

NetworkSpecialist

1-25

End-User Computing (EUC)

End-user computing End-user computing – Development of all or part of applicationsDevelopment of all or part of applications– Information specialists act as consultantsInformation specialists act as consultants

Stimulants to EUCStimulants to EUC– Increased computer literacyIncreased computer literacy– IS backlogIS backlog– Low-cost hardware (the PC)Low-cost hardware (the PC)– Prewritten software (electronic spreadsheets)Prewritten software (electronic spreadsheets)

1-26

IS and EUCIS and EUCThe End-User Computing The End-User Computing

Communication ChainCommunication Chain

User Computer

InformationSpecialists

SupportSupport

CommunicationCommunication

1-27

Justifying the CBISJustifying the CBIS

Justify in the same manner as any other Justify in the same manner as any other large investmentlarge investment

EconomicEconomic– Cost reductionCost reduction– Reduced inventory investmentReduced inventory investment– Increased productivity (CAD/CAM)Increased productivity (CAD/CAM)

NoneconomicNoneconomic– Perceived valuePerceived value

1-28

Achieving the CBISAchieving the CBIS

1-29

Reengineering the CBISReengineering the CBIS

Business Process Reengineering (BPR)Business Process Reengineering (BPR)– Reworking systemsReworking systems– Good system features retained Good system features retained – Becoming development methodology of Becoming development methodology of

choicechoice

1-30

Roles Played by the Roles Played by the ManagerManager

and by the Information and by the Information SpecialistSpecialist

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

SummarySummary

Information is one of five main resourcesInformation is one of five main resources Computer output used by managers and Computer output used by managers and

nonmanagersnonmanagers A system is an integration of elements A system is an integration of elements

working toward an objectiveworking toward an objective– Physical Physical – ConceptualConceptual

Data vs. InformationData vs. Information1-32

Summary [cont.]Summary [cont.]

CBIS composed of various componentsCBIS composed of various components– AISAIS– MISMIS– DSSDSS– Virtual officeVirtual office– Knowledge-based systemsKnowledge-based systems

End-user computing trendsEnd-user computing trends CBIS developmentCBIS development

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