22

Ready Notes

Managing
Information and
Information
Technology
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 Managers As Information Processors

Information data

Some The Manager

information •Some information stored for Some
put to possible use later. information
immediate •Some information combined discarded
use to form new information.

Some information passed

on to others

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 Data Versus Information

• Data:
– Raw figures and
facts reflecting a
single aspect of
reality.
• Information:
– Data presented in a
way or form that has
meaning.

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 Related Terms

• Information Technology:
– The resources used by an
organization to manage
information that it needs
to carry out its mission.
• Accurate Information:
– Provides a valid and
reliable reflection of
reality.

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 Characteristics of Useful Information

• Timely information:
– Available in time for appropriate
managerial action.
• Complete information:
– Provides managers with all the information
they need.
• Relevant information:
– Assures managers that the information is
useful to them in their particular
circumstances for their particular needs.

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 Information Management As Control

Information Organizational System: Information

entering the Information used in leaving the
organization the organization organization

Preliminary control Screening Control Postaction control

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 Building Blocks of a Computer-Based
Information System

Processor
Input Medium Output Medium
Central processing
Keyboard, scanner, Printer, video, display,
unit to organize,
other computer, other computer,
manipulate, sort, or
network network
calculate data

Storage
Disk or CD-Rom

Control System
Software or other form of operating system

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Who Represents the Special User Category?

• Knowledge workers:
– Specialists, usually
professionally trained and
certified (engineers,
scientists, information
technology specialists,
psychologists), who rely
on information technology
to design new products or
create new business
processes.

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 Figure 22.4: Determinants of an
Organization’s Information-Processing Needs

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 Major Systems by Level

• Transaction-Processing System:
– TPS, applications of information
processing for basic day-to-day business
transactions.
• Management Information System:
– MIS, supports an organization’s managers
by providing daily reports, schedules,
plans, and budgets.

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 Figure 22.5: A Basic Management
Information System

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 Systems by Level (cont’d):

• Decision Support System:

– DSS, an interactive system that locates
and presents information needed to
support the decision-making process.
• Executive Support System:
– ESS, a quick-reference, easy-access
application of information systems specially
designed for instant access by upper-level
managers.

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 Systems by Level (cont’d):

• Artificial Intelligence:
– AI, the construction of
computer systems, both
hardware and software,
to imitate human
behavior; in other words,
systems that perform
physical tasks, use
thought processes, and
learn.

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 The Internet

• What is the NET?

– A gigantic network of
networks serving
millions of computers
and offering
information on
business, science,
and government and
providing more than
170,000 separate
networks around the
world.

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 Internet Service Provider (ISP):

• A commercial firm that

maintains a permanent
connection to the Net and
sells temporary
connections to
subscribers.
• World Wide Web:
– WWW, a system with
universally accepted
standards for storing,
retrieving, formatting, and
displaying information.

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 Can You Define the Following?

• Web browser:
– The software that enables the user
to access information on the web.
• Intranet:
– A communication network similar to
the internet but operating within the
boundaries of a single organization.
• Extranet:
– Network that allows selected
outsiders limited access to an
organization’s information system.

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Brief View on Creating Information Systems:
Determine
needs

Determine hardware
Develop needs Determine software
database needs

Integrate databases,
hardware, and
systems

Develop documentation

Test system

Monitor system

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What Are Used to Protect Against Intrusion?

• FIREWALLS:
– Software and
hardware systems
that allow employees
access to both the
internet and the
company’s internal
computer network
while barring entry
by outsiders.

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 Limitations of Information Systems

Information systems are Information systems are Managers sometimes

expensive and difficult not suitable for all rely on information
to develop and tasks or problems. systems too much.
implement.

Information provided to managers may or not

be as accurate, timely, complete, or
relevant as it first appears.

Managers may have The information system

unrealistic expectations may be subject to sabotage
of what the information computer viruses or
system can do. downtime.

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 The Impact of Information Systems on
Organizations

• Leaner organizations:
– Leading to leaner companies with fewer
employees.
• More flexible operations:
– Can offer customers greater variety and
faster delivery cycles.
• Increased collaboration:
– Among internal unites and outside firms.

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 Impact of Information Systems (cont’d):

• More flexible work sites:

– Separation of the workplace from company
headquarters is more common.
• Improved management processes:
– Instantaneous information is accessible in
a convenient, useable format.
• Changed employee behavior:
– Information systems usually improve
employee efficiencies.

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