business, sixth canadian edition, griffin, ebert, and starkecopyright © 2008 pearson education...

Business, Sixth Canadian Edition, Griffin, Ebert, and Starke Copyright © 2008 Pearson Education Canada

CHAPTER 13

Managing Information

Systems and

Communication Technology

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Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke Copyright © 2008 Pearson Education Canada

Learning Objectives

Explain 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 application programs that are available for users at various organizational levelsIdentify and briefly describe the main elements of an information systemBriefly describe the content and role of a database and the purpose of database software for information systems

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Information Management

Information managers are responsible for:generating information

analyzing information

dissemination 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

dataa printout showing whose accounts are up-to-date

and whose are overdue

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Converting Data to Information

Input Input (Data)(Data)

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/publishingpublishing

General 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 produced

must ensure that access is available but restricted to individuals who need it

used to facilitate decision making

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Information Technology

Company Revenues (Billions)

1 CGI Group Inc. 3.6

2 Microsoft Canada Inc. 1.2

3 Cognos Inc. 1.0

4 McDonald, Dettwiler and Associates Ltd. 0.8

5 Creo Inc. 0.8

6 Accenture Inc. 0.6

7 Geac Computer Corp. Ltd. 0.5

8 EDS Canada Inc. 0.5

9 Open Text Corp. 0.5

10 Oracle Corp. Canada Inc. 0.3

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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

• Business strategy

• Operating rules

• Business processes

Software

People

Control

Telecommunications

Database

Hardware

Organizational System Information System

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Electronic Information Technologies (EIT)

IS applications based on telecommunications technologiesUses networks of devices to communicate information electronically Fax machine Voice mail E-mail Electronic conferencing Groupware Digital information services

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Data Communication Networks

The Internet

Internet Service Provider

The World Wide Web

Web Servers

Browser

Directories

Search Engines

Intranets

Extranets

Firewalls

Global networks that permit users to send electronic messages

quickly and economically

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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)

Networking and the virtual company

Greater independence of company and workplace

Improved management processes

Enterprise resource planning (ERP)

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More Flexible Operations

Mass customization Producing large volumes of products or services with a

choice of features and options

Integrated networks coordinate transactions, activities, process flows to make quick adjustments in process

Must store massive volumes and information

Link customers, suppliers, producers, shippers

Networks allow greater product variety and faster cycles

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Improved Management Processes

Networked systems allow quick access to great amounts of data

better, more informed decisions quickly

better coordination company-wide

Enterprise Resource Planning (ERP) large IS for

integrating all the activities of a company’s business units

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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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Matching User Levels withFunctional Areas and Business Processes

Organization

Function Business ProcessMarketing Finance Production

Top-Level Manager Strategic Planning

Product Development

Order Fulfillment

Supply Chain Management

Mid-Level

Manager

Knowledge

Workers

First-Level

Managers

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Transaction Processing Systems (TPS)

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

Customer order-taking and processing

Customer billing

Status reports

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Systems for Knowledge Workers and Office Applications

Systems Analysts and Designers work with users to learn their requirements

design entire systems to suit their needs

Programmers use various computer languages to write the software

System Operations Personnel (Data Workers) run a company’s computer system

make sure the right programs are run and that the system is operating properly

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Knowledge-Level and Office Systems

Support systems increase productivityword processing

desktop publishing

document imaging

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Manufacturing Information Systems

Reduce product design, production cycle, and delivery times Computer-aided manufacturing (CAM)

Computer-integrated manufacturing (CIM)

Computer-aided design (CAD)

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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 intelligence

Artificial senses include vision, hearing, and feeling, and facial recognition

Ability to process natural languages and respond to human voice commands includes Robotics Expert systems

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Elements of the Information System

HardwareHardware

SoftwareSoftware

ControlDatabase

People

Telecommunications

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Hardware

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Software

Systems programs tell the computer what resources to use and how

to use them Application programsprocess data to meet the needs of users

Excel, Quicken, WordPerfect, etc.

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

Language programs allows users to write instructions for the computer

C++

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Control

Ensuring that computers are operating within established parameters

Privacy Invasion when hackers gain unauthorized access

Virus harmful programs created and spread by vandals

seeking to disrupt computer operations

Security protection of programs or data from unauthorized users

electronic firewallsencryption

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Applications Programs

Word processing sophisticated text editing and layout programs to store,

edit, and type letters, numbers, reports (Word, WordPerfect)

Electronic Spreadsheet user enters categories of data and formulas can see how making a change in one item affects another automatic recalculation (Excel, Lotus 1-2-3)

Database management monitors and manipulates the data generated by a

business (Access, InterBase)

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Applications Programs

Graphicsconvert numeric and character data into

pictorial information, charts and graphs

Presentation graphicsassemble graphics and sound for visual displays,

slides and video (PowerPoint, CorelDraw)

Desktop publishingcombines word processing and graphics to produce

typeset-quality work (Publisher, PageMaker)

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Telecommunications and Networks

Network is a means of organizing telecommunications components into an effective system

Multimedia Communication Systems are connected networks of communication appliances that may also be linked by satellite with other remote networks

faxes, televisions, sound equipment,cell phones, printers, and photocopiers

Communications devices cell phones, GPS, PDAs

Communications channels wireless systems, microwave systems, satellite transmission

Broadband channels (ADSL connections)

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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 area

may rely on telephone, microwave 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) or wireless technology (airborne electronic signals)

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Client-Server Systems

Client-server network composed of both clients (users) and servers that

allow clients to access various services without costly and unnecessary duplication

Clientuser, the point of entry into the network

laptops, computer workstation, desktops

Servera computer that provides the services shared by network

users File servers, print servers, fax servers

business, sixth canadian edition, griffin, ebert, and starkecopyright © 2008 pearson education...

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