Chap1 - Fundamental of MIS

8/8/2019 Chap1 - Fundamental of MIS

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ManagementManagement

Information Systems:Information Systems:

Classic Models andClassic Models andNew ApproachesNew Approaches

By:By:

Mohd Hakim Bin Hj. Abdul HamidMohd Hakim Bin Hj. Abdul Hamid



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ObjectivesObjectives

List and describe the classic functions of List and describe the classic functions of

managers: planning, organizing, staffing,managers: planning, organizing, staffing,

directing, and controllingdirecting, and controlling

Describe the purpose and components of Describe the purpose and components of

a management information system (MIS)a management information system (MIS)

Explain how computer networking andExplain how computer networking andrelated software have flattened therelated software have flattened the

classic management pyramidclassic management pyramid



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ObjectivesObjectives

Describe how companies use employeesDescribe how companies use employees

in taskin task--oriented teamsoriented teams

Describe the purpose and function of Describe the purpose and function of

sophisticated software for top managerssophisticated software for top managers

Explain the problems and solutionsExplain the problems and solutions

related to managing personal computersrelated to managing personal computers

Explain the concept of total cost of Explain the concept of total cost of

personal computer ownershippersonal computer ownership



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Classic ManagementClassic Management

FunctionsFunctions PlanningPlanning ± ± devising plans for the organizationdevising plans for the organization

and setting goals to achieve the planand setting goals to achieve the plan

OrganizingOrganizing ± ± deciding how to use thedeciding how to use theorganization¶s resourcesorganization¶s resources

StaffingStaffing ± ± hiring and training workershiring and training workers

DirectingDirecting ± ± guiding employees to perform their guiding employees to perform their

work in a way that supports the organization¶swork in a way that supports the organization¶sgoalsgoals

ControllingControlling ± ± monitoring the organization¶smonitoring the organization¶sprogress toward reaching its goalsprogress toward reaching its goals



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Levels of ManagementLevels of Management

Strategic levelStrategic level

Tactical levelTactical level

Operational levelOperational level



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Strategic LevelStrategic Level

Managers at this level are often calledManagers at this level are often called

executivesexecutives

FocusFocus ± ± longlong--range view of the firmrange view of the firm

Primary functionPrimary function ± ± planningplanning

Return



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Tactical LevelTactical Level


middle managersmiddle managers

FocusFocus ± ± carrying out the visions of topcarrying out the visions of top--

level managerslevel managers

Primary functionsPrimary functions ± ± organizing andorganizing and

staffingstaffing

Return



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Operational LevelOperational Level


supervisorssupervisors

FocusFocus ± ± meeting that day¶s objectivesmeeting that day¶s objectives

Primary functionsPrimary functions ± ± directing anddirecting and

controllingcontrolling

Return



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Management InformationManagement Information

SystemSystem A set of formal business systems A set of formal business systems

designed to provide information for andesigned to provide information for an

organizationorganization Integrates the five management functionsIntegrates the five management functions

MIS manager runs the MIS departmentMIS manager runs the MIS department

Also called Chief Information Officer Also called Chief Information Officer Must be comfortable with computer Must be comfortable with computer

technology and the organization¶s businesstechnology and the organization¶s business



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The New ManagementThe New Management

ModelModel The traditional model has changed over The traditional model has changed over

the yearsthe years

Largely due to advances in technologyLargely due to advances in technology Also due to changes in the global business Also due to changes in the global business

environmentenvironment

Features of the new modelFeatures of the new model

A flattened pyramid A flattened pyramid

The impact of groupwareThe impact of groupware

TeamworkTeamwork



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A Flattened PyramidA Flattened Pyramid

Networks connect people toNetworks connect people to

data and other peopledata and other people

Make information more readilyMake information more readilyavailableavailable

Allow managers to supervise Allow managers to supervise

more peoplemore people

Allow decision Allow decision--makingmakingauthority to be spreadauthority to be spread

throughout the organizationthroughout the organization

Return



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The Impact of GroupwareThe Impact of Groupware

Groupware permits information to beGroupware permits information to be

assembled in central databasesassembled in central databases

Employees in different departments or Employees in different departments or different offices can share informationdifferent offices can share information

directlydirectly

Impacts managersImpacts managers in different waysin different ways

Return



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Impact on ManagersImpact on Managers

The way information is sharedThe way information is shared

People acquire power in an organization byPeople acquire power in an organization by

knowing things others do notknowing things others do not

Groupware reduces this imbalanceGroupware reduces this imbalance

Changes in managerial authorityChanges in managerial authority

With information more readily available,With information more readily available,decisions are more prone to being seconddecisions are more prone to being second--

guessedguessedReturn



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TeamworkTeamwork

Divide workers intoDivide workers intotasktask--focused teamsfocused teams Teams contain workersTeams contain workers

from throughout thefrom throughout theorganizationorganization

When the task isWhen the task iscompleted, the team iscompleted, the team is

disbandeddisbanded Groupware andGroupware and

networks make workingnetworks make workingin teams much easier in teams much easier Return



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Top Managers andTop Managers and

ComputersComputers In the past, managersIn the past, managers

received printed reportsreceived printed reports

Today, most managers haveToday, most managers havepersonal computers on their personal computers on their

desksdesks

Systems designed for topSystems designed for top

managersmanagers Decision support systemsDecision support systems

Executive information systemsExecutive information systems



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Decision Support SystemsDecision Support Systems

Support executives inSupport executives in

nonroutine decisionnonroutine decision--

making tasksmaking tasks Executives deal with aExecutives deal with a

constantly changingconstantly changing

environmentenvironment

Decisions need to beDecisions need to bemade that have nomade that have no

precedentsprecedents

Key componentsKey components Return



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Key Components of a DSSKey Components of a DSS

A modeling process A modeling process

ModelModel ± ± a mathematical representation of aa mathematical representation of a

realreal--life systemlife system

UsesUses variablesvariables to produce outputto produce output

SimulationSimulation ± ± using a computer model tousing a computer model to

reach a decision about a realreach a decision about a real--lifelifesituationsituation

Return



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VariablesVariables

Independent variablesIndependent variables ± ± inputs to theinputs to the

systemsystem

Can be changed to test different scenariosCan be changed to test different scenarios

Dependent variablesDependent variables ± ± outputs of theoutputs of the

systemsystem

Called dependent because their valuesCalled dependent because their valuesdepend on the values of the independentdepend on the values of the independent

variablesvariablesReturn



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Executive InformationExecutive Information

SystemsSystems Concerned with how decisions affect anConcerned with how decisions affect an

entire organizationentire organization

Use information from an organization¶sUse information from an organization¶ssystemssystems

Also use information from outside the Also use information from outside the

organizationorganization

For example, competitors, governmentFor example, competitors, government

agencies, and the financial communityagencies, and the financial community

Return



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Differences Between DSSDifferences Between DSS

and MISand MIS MIS emphasizes planned reports on a varietyMIS emphasizes planned reports on a variety

of subjectsof subjects

DSS focuses on decision makingDSS focuses on decision making

MIS reports are standard, structured,MIS reports are standard, structured,

scheduled, and routinescheduled, and routine

DSS is unstructured and available on requestDSS is unstructured and available on request

MIS is constrained by the organizationalMIS is constrained by the organizationalsystemsystem

DSS is immediate and friendlyDSS is immediate and friendly



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Managing PersonalManaging Personal

ComputersComputers Several problems emerged asSeveral problems emerged as

personal computer usagepersonal computer usageexplodedexploded

No one person managed theNo one person managed theprocess of moving fromprocess of moving frommainframe computers to PCsmainframe computers to PCs

Computers and software wereComputers and software werenot necessarily compatiblenot necessarily compatible

Users still needed the MISUsers still needed the MISdepartmentdepartment Needed help with hardware andNeeded help with hardware and

softwaresoftware

MIS department still had theMIS department still had thedatadata

Workers needed trainingWorkers needed training



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Solutions to TheseSolutions to These

ProblemsProblems CreateCreate personal computer manager personal computer manager

CreateCreate acquisition policiesacquisition policies

CreateCreate information centersinformation centers

Locate, count, andLocate, count, and inventory personalinventory personal

computerscomputers

Consider theConsider the total cost of ownershiptotal cost of ownership of of

personal computerspersonal computers



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Personal Computer Personal Computer

Manager Manager Takes control of personalTakes control of personal

computers for thecomputers for the

companycompany Sometimes called a networkSometimes called a network

manager manager

Potential problem areasPotential problem areas

Technology overloadTechnology overload Data security and integrityData security and integrity

Computer junkiesComputer junkiesReturn



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Technology OverloadTechnology Overload

Users can become overwhelmed with theUsers can become overwhelmed with the

new hardware and software tools on thenew hardware and software tools on the

marketmarket PC manager can provide guidancePC manager can provide guidance

Technology purchases must contribute toTechnology purchases must contribute to

overall company goalsoverall company goals PC manager can help ensure technology isPC manager can help ensure technology is

used to support goalsused to support goalsReturn



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Data Security andData Security and

IntegrityIntegrity Access to corporate data is a touchy Access to corporate data is a touchy

issueissue

People are protective of ³their´ dataPeople are protective of ³their´ data

Users may want to download data fromUsers may want to download data fromthe mainframe and use it on their the mainframe and use it on their computerscomputers

Are they entitled to the data? Are they entitled to the data?

Will they manipulate it and distribute it?Will they manipulate it and distribute it?

Will they manipulate it and upload it back toWill they manipulate it and upload it back tothe mainframe?the mainframe?

Return



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Computer JunkiesComputer Junkies

People who are overly fascinated withPeople who are overly fascinated with

computerscomputers

May copy software illegallyMay copy software illegally

May hack into company computers to whichMay hack into company computers to which

they do not have accessthey do not have access

May overuse the computer and neglect their May overuse the computer and neglect their other dutiesother duties

Return



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Acquisition PoliciesAcquisition Policies

Designed to ensure that all hardware andDesigned to ensure that all hardware and

software are compatiblesoftware are compatible

Establish standards for hardware andEstablish standards for hardware andsoftwaresoftware

Restrict the vendors usedRestrict the vendors used

Set standards for data communicationSet standards for data communication

Return



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Information Center Information Center

A place where workers can get help with A place where workers can get help with

software problemssoftware problems

Sometimes called a support center or helpSometimes called a support center or helpdeskdesk

Users can get immediate help, with little or Users can get immediate help, with little or

no red tapeno red tape

Provides aProvides a variety of servicesvariety of services

Return



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Information Center Information Center

ServicesServices Software and hardwareSoftware and hardware

selectionselection

Data accessData access Network accessNetwork access

TrainingTraining

Technical assistanceTechnical assistance

Return



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TrainingTraining

Users must receive training for new technologyUsers must receive training for new technology Spending money on technology without training theSpending money on technology without training the

users is a recipe for disaster users is a recipe for disaster

Should take several formsShould take several forms Initial trainingInitial training

Typically handsTypically hands--on, instructor on, instructor--led training in a classroomled training in a classroom

FollowFollow--up supportup support Develop homeDevelop home--grown experts (³gurus´)grown experts (³gurus´) Workers can consult these gurus when they have aWorkers can consult these gurus when they have a

problemproblem

Training delivery methodsTraining delivery methodsReturn





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Inventory PersonalInventory Personal

ComputersComputers Many things need to be trackedMany things need to be tracked

How many computers the organization hasHow many computers the organization has

How many printers there areHow many printers there are

What software is on each computer What software is on each computer

Software must be properly licensedSoftware must be properly licensed

Unauthorized software should not be on computersUnauthorized software should not be on computers

How many remote users there areHow many remote users there are Laptops are particularly vulnerable to theftLaptops are particularly vulnerable to theft

There must be adequate security when accessingThere must be adequate security when accessing

corporate datacorporate data

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Total Cost of OwnershipTotal Cost of Ownership

(TCO)(TCO) Determines the total cost of owning theDetermines the total cost of owning the

computer over timecomputer over time

The original hardware and software costsThe original hardware and software costsare a small portion of the cost of ownershipare a small portion of the cost of ownership

TheThe real costsreal costs are hard to determineare hard to determine

Some experts estimate the annual cost of Some experts estimate the annual cost of ownership is four times the original cost of ownership is four times the original cost of

the hardwarethe hardware

Return



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TCO ComponentsTCO Components

Many costs contribute to TCOMany costs contribute to TCO

Original hardware and software costsOriginal hardware and software costs

Training costsTraining costs Information center and other support costsInformation center and other support costs

Upgrades to hardware and softwareUpgrades to hardware and software

MaintenanceMaintenance

Extra hardware and software beyond theExtra hardware and software beyond thestandard configurationstandard configuration

The costs of communications networksThe costs of communications networksReturn

Chap1 - Fundamental of MIS

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