Capron 8 Ppt 16

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Capron 8 Ppt 16

  1. 1. Computers: Tools for an Information Age Chapter 16 Management Information Systems: Classic Models and New Approaches
  2. 2. Objectives <ul><li>List and describe the classic functions of managers: planning, organizing, staffing, directing, and controlling </li></ul><ul><li>Describe the purpose and components of a management information system (MIS) </li></ul><ul><li>Explain how computer networking and related software have flattened the classic management pyramid </li></ul>
  3. 3. Objectives <ul><li>Describe how companies use employees in task-oriented teams </li></ul><ul><li>Describe the purpose and function of sophisticated software for top managers </li></ul><ul><li>Explain the problems and solutions related to managing personal computers </li></ul><ul><li>Explain the concept of total cost of personal computer ownership </li></ul>
  4. 4. Classic Management Functions <ul><li>Planning – devising plans for the organization and setting goals to achieve the plan </li></ul><ul><li>Organizing – deciding how to use the organization’s resources </li></ul><ul><li>Staffing – hiring and training workers </li></ul><ul><li>Directing – guiding employees to perform their work in a way that supports the organization’s goals </li></ul><ul><li>Controlling – monitoring the organization’s progress toward reaching its goals </li></ul>
  5. 5. Levels of Management <ul><li>Strategic level </li></ul><ul><li>Tactical level </li></ul><ul><li>Operational level </li></ul>
  6. 6. Strategic Level <ul><li>Managers at this level are often called executives </li></ul><ul><li>Focus – long-range view of the firm </li></ul><ul><li>Primary function – planning </li></ul>Return
  7. 7. Tactical Level <ul><li>Managers at this level are often called middle managers </li></ul><ul><li>Focus – carrying out the visions of top-level managers </li></ul><ul><li>Primary functions – organizing and staffing </li></ul>Return
  8. 8. Operational Level <ul><li>Managers at this level are often called supervisors </li></ul><ul><li>Focus – meeting that day’s objectives </li></ul><ul><li>Primary functions – directing and controlling </li></ul>Return
  9. 9. Management Information System <ul><li>A set of formal business systems designed to provide information for an organization </li></ul><ul><ul><li>Integrates the five management functions </li></ul></ul><ul><li>MIS manager runs the MIS department </li></ul><ul><ul><li>Also called Chief Information Officer </li></ul></ul><ul><ul><li>Must be comfortable with computer technology and the organization’s business </li></ul></ul>
  10. 10. The New Management Model <ul><li>The traditional model has changed over the years </li></ul><ul><ul><li>Largely due to advances in technology </li></ul></ul><ul><ul><li>Also due to changes in the global business environment </li></ul></ul><ul><li>Features of the new model </li></ul><ul><ul><li>A flattened pyramid </li></ul></ul><ul><ul><li>The impact of groupware </li></ul></ul><ul><ul><li>Teamwork </li></ul></ul>
  11. 11. A Flattened Pyramid <ul><li>Networks connect people to data and other people </li></ul><ul><ul><li>Make information more readily available </li></ul></ul><ul><ul><li>Allow managers to supervise more people </li></ul></ul><ul><ul><li>Allow decision-making authority to be spread throughout the organization </li></ul></ul>Return
  12. 12. The Impact of Groupware <ul><li>Groupware permits information to be assembled in central databases </li></ul><ul><ul><li>Employees in different departments or different offices can share information directly </li></ul></ul><ul><li>Impacts managers in different ways </li></ul>Return
  13. 13. Impact on Managers <ul><li>The way information is shared </li></ul><ul><ul><li>People acquire power in an organization by knowing things others do not </li></ul></ul><ul><ul><li>Groupware reduces this imbalance </li></ul></ul><ul><li>Changes in managerial authority </li></ul><ul><ul><li>With information more readily available, decisions are more prone to being second-guessed </li></ul></ul>Return
  14. 14. Teamwork <ul><li>Divide workers into task-focused teams </li></ul><ul><ul><li>Teams contain workers from throughout the organization </li></ul></ul><ul><ul><li>When the task is completed, the team is disbanded </li></ul></ul><ul><li>Groupware and networks make working in teams much easier </li></ul>Return
  15. 15. Top Managers and Computers <ul><li>In the past, managers received printed reports </li></ul><ul><ul><li>Today, most managers have personal computers on their desks </li></ul></ul><ul><li>Systems designed for top managers </li></ul><ul><ul><li>Decision support systems </li></ul></ul><ul><ul><li>Executive information systems </li></ul></ul>
  16. 16. Decision Support Systems <ul><li>Support executives in nonroutine decision-making tasks </li></ul><ul><ul><li>Executives deal with a constantly changing environment </li></ul></ul><ul><ul><li>Decisions need to be made that have no precedents </li></ul></ul><ul><li>Key components </li></ul>Return
  17. 17. Key Components of a DSS <ul><li>A modeling process </li></ul><ul><ul><li>Model – a mathematical representation of a real-life system </li></ul></ul><ul><li>Uses variables to produce output </li></ul><ul><li>Simulation – using a computer model to reach a decision about a real-life situation </li></ul>Return
  18. 18. Variables <ul><li>Independent variables – inputs to the system </li></ul><ul><ul><li>Can be changed to test different scenarios </li></ul></ul><ul><li>Dependent variables – outputs of the system </li></ul><ul><ul><li>Called dependent because their values depend on the values of the independent variables </li></ul></ul>Return
  19. 19. Executive Information Systems <ul><li>Concerned with how decisions affect an entire organization </li></ul><ul><ul><li>Use information from an organization’s systems </li></ul></ul><ul><ul><li>Also use information from outside the organization </li></ul></ul><ul><ul><ul><li>For example, competitors, government agencies, and the financial community </li></ul></ul></ul>Return
  20. 20. Differences Between DSS and MIS <ul><li>MIS emphasizes planned reports on a variety of subjects </li></ul><ul><ul><li>DSS focuses on decision making </li></ul></ul><ul><li>MIS reports are standard, structured, scheduled, and routine </li></ul><ul><ul><li>DSS is unstructured and available on request </li></ul></ul><ul><li>MIS is constrained by the organizational system </li></ul><ul><ul><li>DSS is immediate and friendly </li></ul></ul>
  21. 21. Managing Personal Computers <ul><li>Several problems emerged as personal computer usage exploded </li></ul><ul><ul><li>No one person managed the process of moving from mainframe computers to PCs </li></ul></ul><ul><ul><li>Computers and software were not necessarily compatible </li></ul></ul><ul><ul><li>Users still needed the MIS department </li></ul></ul><ul><ul><ul><li>Needed help with hardware and software </li></ul></ul></ul><ul><ul><ul><li>MIS department still had the data </li></ul></ul></ul><ul><ul><li>Workers needed training </li></ul></ul>
  22. 22. Solutions to These Problems <ul><li>Create personal computer manager </li></ul><ul><li>Create acquisition policies </li></ul><ul><li>Create information centers </li></ul><ul><li>Locate, count, and inventory personal computers </li></ul><ul><li>Consider the total cost of ownership of personal computers </li></ul>
  23. 23. Personal Computer Manager <ul><li>Takes control of personal computers for the company </li></ul><ul><ul><li>Sometimes called a network manager </li></ul></ul><ul><li>Potential problem areas </li></ul><ul><ul><li>Technology overload </li></ul></ul><ul><ul><li>Data security and integrity </li></ul></ul><ul><ul><li>Computer junkies </li></ul></ul>Return
  24. 24. Technology Overload <ul><li>Users can become overwhelmed with the new hardware and software tools on the market </li></ul><ul><ul><li>PC manager can provide guidance </li></ul></ul><ul><li>Technology purchases must contribute to overall company goals </li></ul><ul><ul><li>PC manager can help ensure technology is used to support goals </li></ul></ul>Return
  25. 25. Data Security and Integrity <ul><li>Access to corporate data is a touchy issue </li></ul><ul><ul><li>People are protective of “their” data </li></ul></ul><ul><li>Users may want to download data from the mainframe and use it on their computers </li></ul><ul><ul><li>Are they entitled to the data? </li></ul></ul><ul><ul><li>Will they manipulate it and distribute it? </li></ul></ul><ul><ul><li>Will they manipulate it and upload it back to the mainframe? </li></ul></ul>Return
  26. 26. Computer Junkies <ul><li>People who are overly fascinated with computers </li></ul><ul><ul><li>May copy software illegally </li></ul></ul><ul><ul><li>May hack into company computers to which they do not have access </li></ul></ul><ul><ul><li>May overuse the computer and neglect their other duties </li></ul></ul>Return
  27. 27. Acquisition Policies <ul><li>Designed to ensure that all hardware and software are compatible </li></ul><ul><ul><li>Establish standards for hardware and software </li></ul></ul><ul><ul><li>Restrict the vendors used </li></ul></ul><ul><ul><li>Set standards for data communication </li></ul></ul>Return
  28. 28. Information Center <ul><li>A place where workers can get help with software problems </li></ul><ul><ul><li>Sometimes called a support center or help desk </li></ul></ul><ul><ul><li>Users can get immediate help, with little or no red tape </li></ul></ul><ul><li>Provides a variety of services </li></ul>Return
  29. 29. Information Center Services <ul><li>Software and hardware selection </li></ul><ul><li>Data access </li></ul><ul><li>Network access </li></ul><ul><li>Training </li></ul><ul><li>Technical assistance </li></ul>Return
  30. 30. Training <ul><li>Users must receive training for new technology </li></ul><ul><ul><li>Spending money on technology without training the users is a recipe for disaster </li></ul></ul><ul><li>Should take several forms </li></ul><ul><ul><li>Initial training </li></ul></ul><ul><ul><ul><li>Typically hands-on, instructor-led training in a classroom </li></ul></ul></ul><ul><ul><li>Follow-up support </li></ul></ul><ul><ul><ul><li>Develop home-grown experts (“gurus”) </li></ul></ul></ul><ul><ul><ul><li>Workers can consult these gurus when they have a problem </li></ul></ul></ul><ul><li>Training delivery methods </li></ul>Return
  31. 31. Delivery Methods <ul><li>Text-based – give the users a user guide, with some exercises </li></ul><ul><li>Instructor-led – classroom-based, hands-on training </li></ul><ul><li>Computer-based </li></ul><ul><ul><li>Web sites offer training on many packages </li></ul></ul><ul><ul><li>CD-ROMs offer multimedia, tutorials, frequently-asked questions, etc. </li></ul></ul>Return
  32. 32. Inventory Personal Computers <ul><li>Many things need to be tracked </li></ul><ul><ul><li>How many computers the organization has </li></ul></ul><ul><ul><li>How many printers there are </li></ul></ul><ul><ul><li>What software is on each computer </li></ul></ul><ul><ul><ul><li>Software must be properly licensed </li></ul></ul></ul><ul><ul><ul><li>Unauthorized software should not be on computers </li></ul></ul></ul><ul><ul><li>How many remote users there are </li></ul></ul><ul><ul><ul><li>Laptops are particularly vulnerable to theft </li></ul></ul></ul><ul><ul><ul><li>There must be adequate security when accessing corporate data </li></ul></ul></ul>Return
  33. 33. Total Cost of Ownership (TCO) <ul><li>Determines the total cost of owning the computer over time </li></ul><ul><ul><li>The original hardware and software costs are a small portion of the cost of ownership </li></ul></ul><ul><li>The real costs are hard to determine </li></ul><ul><ul><li>Some experts estimate the annual cost of ownership is four times the original cost of the hardware </li></ul></ul>Return
  34. 34. TCO Components <ul><li>Many costs contribute to TCO </li></ul><ul><ul><li>Original hardware and software costs </li></ul></ul><ul><ul><li>Training costs </li></ul></ul><ul><ul><li>Information center and other support costs </li></ul></ul><ul><ul><li>Upgrades to hardware and software </li></ul></ul><ul><ul><li>Maintenance </li></ul></ul><ul><ul><li>Extra hardware and software beyond the standard configuration </li></ul></ul><ul><ul><li>The costs of communications networks </li></ul></ul>Return

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