Business, Sixth Canadian Edition, Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada CHAPTER 13 Managing Information Systems and Communication Technology

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 13-2 Learning Objectives Explain why businesses must manage information and show how computer systems and communication technologies have revolutionized information management Identify and briefly describe three elements of data communication networks – the Internet, the World Wide Web, and intranets Describe five new options for organizational design that have emerged from the rapid growth of information technologies Discuss different information-systems application programs that are available for users at various organizational levels Identify and briefly describe the main elements of an information system Briefly describe the content and role of a database and the purpose of database software for information systems

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 13-3 Information Management Information managers are responsible for:  generating information  analyzing information  dissemination of information to facilitate the decision-making process

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 13-4 Data vs. Information Data  raw facts and figures  data 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

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 13-5 Converting Data to Information Input (Data) Output(Information) Process Text, format commands Text, images, line work Accounting data Sales, cost of sales data Wordprocessor Page layout/ publishing General ledger program Break-evensoftware Finisheddocument Financialstatements Page proofs for production Break-evenanalysis

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 13-6 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

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 13-7 Information Technology CompanyRevenues (Billions) 1CGI Group Inc.3.6 2Microsoft Canada Inc.1.2 3Cognos Inc.1.0 4McDonald, Dettwiler and Associates Ltd.0.8 5Creo Inc.0.8 6Accenture Inc.0.6 7Geac Computer Corp. Ltd.0.5 8EDS Canada Inc.0.5 9Open Text Corp Oracle Corp. Canada Inc.0.3

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 13-8 The Evolution of IS Isolated Technical Problems Low-Level Management Problems High-Level Management Problems Organization-Wide Planning and Implementation

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 13-9 Aligning Strategy with IS Business strategy Operating rules Business processes Software People Control Telecommunications Database Hardware Organizational SystemInformation System

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada Electronic Information Technologies (EIT) IS applications based on telecommunications technologies Uses networks of devices to communicate information electronically  Fax machine  Voice mail   Electronic conferencing  Groupware  Digital information services

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

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 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)

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

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

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada Types of Information Systems Top Level: Strategic IS Mid-Level: Management IS Knowledge Workers: Knowledge IS First-Level: Operational IS Matching Users to Systems

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada Matching User Levels with Functional Areas and Business Processes Organization FunctionBusiness Process MarketingFinanceProduction Top-Level Manager Strategic Planning Product Development Order Fulfillment Supply Chain Management Mid-Level Manager Knowledge Workers First-Level Managers

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada Transaction Processing Systems (TPS) Applications of information processing for basic day-to-day business transactions  Payroll  Customer order-taking and processing  Customer billing  Status reports

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

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada Knowledge-Level and Office Systems Support systems increase productivity  word processing  desktop publishing  document imaging

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada Manufacturing Information Systems Reduce product design, production cycle, and delivery times  Computer-aided manufacturing (CAM)  Computer-integrated manufacturing (CIM)  Computer-aided design (CAD)

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

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

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada Elements of the Information System Hardware Software Control Database People Telecommunications

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada Hardware

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada Software Systems programs  tell the computer what resources to use and how to use them Application programs  process 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++

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 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 firewalls  encryption

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 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)

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada Applications Programs Graphics  convert numeric and character data into pictorial information, charts and graphs  Presentation graphics  assemble graphics and sound for visual displays, slides and video (PowerPoint, CorelDraw)  Desktop publishing  combines word processing and graphics to produce typeset-quality work (Publisher, PageMaker)

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 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)

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 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 area  rely on hard wiring (cable) or  wireless technology (airborne electronic signals)

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 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  Client  user, the point of entry into the network  laptops, computer workstation, desktops  Server  a computer that provides the services shared by network users  File servers, print servers, fax servers