Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc. CHAPTER 13 Managing Information Systems and Communication

Business Fifth Canadian edition, Griffin, Ebert & Starke

© 2005 Pearson Education Canada Inc.

CHAPTER 13

Managing InformationSystems and

Communication Technology

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Learning ObjectivesExplain why businesses must manage information and show how computer systems and communication technologies have revolutionized information managementIdentify and briefly describe three elements of data communication networks – the Internet, the World Wide Web, and intranetsDescribe five new options for organizational design that have emerged from the rapid growth of information technologiesDiscuss different information-systems applications that are available for users at various organizational levelsIdentify and briefly describe the main elements of an information system

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Information Management

Information managers are responsible for:generating informationanalyzing informationdissemination of information to facilitate the decision-making process

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Data vs. Information

Data raw facts and figuresdata are processed to become information

• raw data about clients’ purchases, account balances

Information a meaningful and useful interpretation of the data

• a printout showing whose accounts are up-to-date and whose are overdue

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Converting Data to Information

Input Input DataData

Output Output (Information)(Information)Process

Text, Text, formatformat

commandscommandsText, Text,

images,images,line workline work

Accounting Accounting datadata

Sales, cost Sales, cost of sales of sales

datadata

Word Word processorprocessor

Page layout/Page layout/publishingpublishingGeneral General ledgerledger

programprogramBreak-evenBreak-even

softwaresoftware

Finished Finished documentdocument

FinancialFinancialstatementsstatements

Page proofs Page proofs forfor

productionproduction

Break-evenBreak-evenanalysisanalysis

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Information Systems (IS)

An organized method of transforming data into information

necessary to determine what information is needed and how it will be producedmust ensure that access is available but restricted to individuals who need itused to facilitate decision making

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Management Information Needs

Daily Supervisory ReportsDaily Supervisory Reports

Monthly Department SummariesMonthly Department Summaries

Market ResearchMarket ResearchSales SummariesSales Summaries

Legal IssuesLegal Issues

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Information Technology

Company Revenues (Billions)1 CGI Group Inc. 2.12 ATI Technologies Inc. 1.63 EDS Canada Inc. 1.24 Microsoft Canada Inc. 1.15 Cognos Inc. 0.86 Geac Computer Corp. Ltd. 0.77 Nexinnovations Inc. 0.78 Softchoice Corp. 0.69 McDonald, Dettwiler and Associates

Ltd.0.5

10 BCE Emergis Inc. 0.5

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The Evolution of IS

Isolated Technical Problems

Low-Level Management Problems

High-Level Management Problems

Organization-Wide Planning and Implementation

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Aligning Strategy with IS

Organizational System

• Business strategy

• Operating rules

• Business processes

Software

People

Control

Telecommunications

Database

Hardware

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Electronic Information Technologies (EIT)

IS applications based on telecommunications technologiesUses networks of devices to communicate information electronically

Fax machineVoice mailE-mailElectronic conferencingGroupwareDigital information services

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Data Communication Networks

Global networks that permit users to send electronic messages quickly and economically

The InternetThe World Wide WebInternet Service ProviderWeb ServersBrowserDirectories

• Search Engines

• Intranets

• Extranets

• Firewalls

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New Options for Organizational Design: The Networked Enterprise

The structure of business organizations is changing due to information technologies

Leaner organizations

More flexible operations

Increased collaboration (internal & external)

Improved management processes

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Networking for Mass Customization

Mass customization Producing large volumes of products or services with a choice of features and options

Integrated networks are required to coordinate account information and to store information about preferences, etc.

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Improved Management Processes

Networked systems allow the quick access of great amounts of data that allow managers to make better, more informed decisions quicklyUpper-level managers can have access to information that used to be restricted to middle and first-line managersThis information makes the management process more efficient

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Types of Information Systems

Top Level: Strategic IS

Mid-Level: Management IS

Knowledge Workers: Knowledge IS

First-Level: Operational IS

Matching Users to Systems

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Major Systems by Level

OrganizationFunction Business Process

Marketing Finance Production

Top-Level Manager Strategic Planning

Product DevelopmentOrder FulfillmentSupply Chain Management

Mid-LevelManagerKnowledgeWorkersFirst-LevelManagers

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Transaction Processing Systems (TPS)

Applications of information processing for basic day-to-day business transactions

PayrollCustomer order-taking and processingCustomer billingManagement reports

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Systems for Knowledge Workers and Office Applications

Systems Analystswork with users to learn their requirements design systems to suit their needs

Programmersuse various computer languages to write the software

Operations Personnel (Data Workers)run a company’s computer systemmake sure the right programs are run and that the system is operating properly

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Manufacturing Information Systems

Computer-aided manufacturing (CAM)Computer-integrated manufacturing (CIM)Computer-aided design (CAD)Systems increase productivity and can improve a firm’sglobal competitiveness

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Other Information Systems

Management Information Systems (MIS)Systems that support an organization’s managers by providing daily reports, schedules, plans, and budgets

Decision Support System (DSS)Systems that help managers consider alternatives when making decisions on complicated problems

Executive Support Systems (ESS)A quick-reference, easy-access application of IS specially designed for upper-level management

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Artificial Intelligence (AI)

The programming and development of computers to imitate human thought

learning, reasoning, and intelligenceArtificial senses include

vision, hearing, and feeling, and facial recognitionAbility to process natural languages and respond to human voice commands includes

RoboticsExpert systems

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The Elements of the Information System

HardwareHardware

SoftwareSoftware

ControlDatabase

PeoplePeopleTelecommunications

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The Central Processing Unit (CPU)

Main processing & storage unit of the computer system. Arithmetic Logic Unit (ALU) which performs logical and mathematical operationsA control unit locates instructions stored within the CPU, transfers the data to the ALU for processing, and transmits the results to an output deviceMain memory (or Random Access Memory) is short-term memory that is only active while the computer is turned onLong term storage (hard disk or secondary storage media such as diskettes , CD-ROMs, magnetic tape)

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Software

Graphic user interface (GUI)user-friendly computer displays with icons for point-and-click use

Systems programstell the computer what resources to use and how to use them

Application programsprocess data to meet the needs of users

Language programsallows users to write instructions for the computer (I.e.:FORTRAN)

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Control

Ensuring that computers are operating within established parametersVirus

harmful programs created and spread by vandals seeking to disrupt computer operations

Piracyillegal copying of programs that are privately owned

Security protection of programs or data from unauthorized users (hackers) with electronic firewalls

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Processing Methods

Batch data combined into a group that is processed all at once, often after hours or overnight

Onlinedata are entered and immediately processed may be required for volatile data

• keeping track of credit card balances

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Computer Applications for Business

Word processingsophisticated text editing and layout programs to store, edit, and type letters, numbers, reports (Word)

Spreadsheetelectronic spreadsheets allow manipulation of financial information (Excel)

Database managementmaintains and monitors the data generated by a business (Access)

Graphicshigh quality photographic layout, design and drawing software (CorelDraw)

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Databases

David McKay 14 Willow Cres., (000) 123-4567

Customer RecordCustomer RecordCustomer FieldsCustomer FieldsSusan Campbell

Michael PowellClaire Matthews

Customer FileCustomer File(Related Records)(Related Records)

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Multimedia Communication Systems

Connected networks of communication appliances such as faxes, televisions, sound equipment, cell phones, printers, and photocopiers that may also be linked by satellite with other remote networksMultimedia technology

Communications devices (cell phones, GPS)Communications channels (microwave transmission, wireless systems, satellite transmission)Smart software (smart modems, smart TV)

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System Architecture

Computers at different locations can function independently but are interconnected as well to allow for information exchange Wide area network (WAN)

networks that cover a vast geographic areamay rely on telephone or satellite transmission

Local area network (LAN)a network that links a single office environment,

a single building, or a small geographic arearely on hard wiring (cable)

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Client-Server Systems

Servera component that can be shared by LAN users

• File servers & print servers

Client-server networkcomposed of both clients (users) and servers that allow clients to access various services without costly and unnecessary duplication

Documents

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc. CHAPTER 13 Managing Information Systems and Communication