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