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

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc 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 applications that are available for users at various organizational levels Identify and briefly describe the main elements of an information system

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Information Management Information managers are responsible for: generating information analyzing information dissemination of information to facilitate the decision-making process

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc 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 Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc 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 Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc 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 Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Management Information Needs Daily Supervisory Reports Monthly Department Summaries Market Research Sales Summaries Legal Issues

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Information Technology CompanyRevenues (Billions) 1CGI Group Inc.2.1 2ATI Technologies Inc.1.6 3EDS Canada Inc.1.2 4Microsoft Canada Inc.1.1 5Cognos Inc.0.8 6Geac Computer Corp. Ltd.0.7 7Nexinnovations Inc.0.7 8Softchoice Corp.0.6 9McDonald, Dettwiler and Associates Ltd BCE Emergis Inc.0.5

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc The Evolution of IS Isolated Technical Problems Low-Level Management Problems High-Level Management Problems Organization-Wide Planning and Implementation

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Aligning Strategy with IS Organizational System Business strategy Operating rules Business processes Software People Control Telecommunications Database Hardware

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc 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 Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Data Communication Networks Global networks that permit users to send electronic messages quickly and economically The Internet The World Wide Web Internet Service Provider Web Servers Browser Directories Search Engines Intranets Extranets Firewalls

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc 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

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc 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.

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Improved Management Processes Networked systems allow the quick access of great amounts of data that allow managers to make better, more informed decisions quickly Upper-level managers can have access to information that used to be restricted to middle and first-line managers This information makes the management process more efficient

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc 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 Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Major Systems by Level 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 Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Transaction Processing Systems (TPS) Applications of information processing for basic day-to- day business transactions Payroll Customer order-taking and processing Customer billing Management reports

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Systems for Knowledge Workers and Office Applications Systems Analysts work with users to learn their requirements design systems to suit their needs Programmers use various computer languages to write the software 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 Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Manufacturing Information Systems Computer-aided manufacturing (CAM) Computer-integrated manufacturing (CIM) Computer-aided design (CAD) Systems increase productivity and can improve a firm’s global competitiveness

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc 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 Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc 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 Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc The Elements of the Information System Hardware Software Control Database People Telecommunications

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc The Central Processing Unit (CPU) Main processing & storage unit of the computer system. Arithmetic Logic Unit (ALU) which performs logical and mathematical operations A control unit locates instructions stored within the CPU, transfers the data to the ALU for processing, and transmits the results to an output device Main memory (or Random Access Memory) is short-term memory that is only active while the computer is turned on Long term storage (hard disk or secondary storage media such as diskettes, CD-ROMs, magnetic tape)

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Software Graphic user interface (GUI) user-friendly computer displays with icons for point-and- click use Systems programs tell the computer what resources to use and how to use them Application programs process data to meet the needs of users Language programs allows users to write instructions for the computer (I.e.:FORTRAN)

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Control Ensuring that computers are operating within established parameters Virus harmful programs created and spread by vandals seeking to disrupt computer operations Piracy illegal copying of programs that are privately owned Security protection of programs or data from unauthorized users (hackers) with electronic firewalls

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Processing Methods Batch data combined into a group that is processed all at once, often after hours or overnight Online data are entered and immediately processed may be required for volatile data keeping track of credit card balances

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Computer Applications for Business Word processing sophisticated text editing and layout programs to store, edit, and type letters, numbers, reports (Word) Spreadsheet electronic spreadsheets allow manipulation of financial information (Excel) Database management maintains and monitors the data generated by a business (Access) Graphics high quality photographic layout, design and drawing software (CorelDraw)

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Databases David McKay 14 Willow Cres.,(000) Customer Record Customer Fields Susan Campbell Michael Powell Claire Matthews Customer File (Related Records)

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc 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 networks Multimedia technology Communications devices (cell phones, GPS) Communications channels (microwave transmission, wireless systems, satellite transmission) Smart software (smart modems, smart TV)

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc 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 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)

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Client-Server Systems Server a component that can be shared by LAN users File servers & print servers Client-server network composed of both clients (users) and servers that allow clients to access various services without costly and unnecessary duplication