1. Chapter13Chapter13 PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2004. All rights reserved. Communication and Information Technology Management

2. © Copyright 2004 McGraw-Hill. All rights reserved.13–2 Learning Objectives After studying the chapter, you should be able to:After studying the chapter, you should be able to:  Differentiate between data and information, and list the attributes of useful information, and describe three reasons why managers must have access to information to perform their tasks and roles effectively.  Explain why effective communication helps an organization gain a competitive advantage.  Define information richness, and describe the information richness of communication media available to managers.

3. © Copyright 2004 McGraw-Hill. All rights reserved.13–3 Learning Objectives (cont’d)  Describe the computer hardware and software innovations that have created the information technology revolution.  Differentiate among four kinds of management information systems.

4. © Copyright 2004 McGraw-Hill. All rights reserved.13–4 Information and the Manager’s Job DataData  Raw, unsummarized, and unanalyzed facts. InformationInformation  Data that is organized in a meaningful fashion. Why Managers Need Information:Why Managers Need Information:  To make effective decisions.  To control activities of the organization.  To coordinate the activities of the organization.

5. © Copyright 2004 McGraw-Hill. All rights reserved.13–5 Factors Affecting the Usefulness of Information Figure 13.1

6. © Copyright 2004 McGraw-Hill. All rights reserved.13–6 Attributes of Useful Information

7. © Copyright 2004 McGraw-Hill. All rights reserved.13–7 Information Systems and Technology

8. © Copyright 2004 McGraw-Hill. All rights reserved.13–8 Communication, Information, and Management CommunicationCommunication  The sharing of information between two or more individuals or groups to reach a common understanding. Importance of Good CommunicationImportance of Good Communication  Increased efficiency in new technologies and skills.  Improved quality of products and services.  Increased responsiveness to customers.  More innovation through communication.

9. © Copyright 2004 McGraw-Hill. All rights reserved.13–9 The Communication Process Phases of the Communication Process:Phases of the Communication Process:  Transmission phase: information is shared by two or more people.  Feedback phase: a common understanding is assured. The process starts with a sender (an individual or group) who wants to share information and puts the message into symbols or language (encoding).The process starts with a sender (an individual or group) who wants to share information and puts the message into symbols or language (encoding).  Noise: anything harming the communication process.

10. © Copyright 2004 McGraw-Hill. All rights reserved.13–10 The Communication Process Figure 13.2

11. © Copyright 2004 McGraw-Hill. All rights reserved.13–11 The Communication Process (cont’d) Messages are transmitted over a medium to a receiver.Messages are transmitted over a medium to a receiver.  Medium: the pathway over which the message is transmitted (e.g., telephone, written note, email).  Receiver: the person getting the message. The receiver decodes (interprets) the message, allowing the receiver to understand the message.The receiver decodes (interprets) the message, allowing the receiver to understand the message. This is a critical point: failure to properly decode the message can lead to a misunderstanding.This is a critical point: failure to properly decode the message can lead to a misunderstanding.  Feedback by receiver informs the sender that the message is understood or that it must be re-sent.

12. © Copyright 2004 McGraw-Hill. All rights reserved.13–12 Forms of Communication Verbal CommunicationVerbal Communication  The encoding of messages into words, either written or spoken. Nonverbal CommunicationNonverbal Communication  The encoding of messages by means of facial expressions, body language, and styles of dress.  Supports or undercuts the spoken message.

13. © Copyright 2004 McGraw-Hill. All rights reserved.13–13 Dangers of Ineffective Communication Managers and their subordinates can become effective communicators by:Managers and their subordinates can become effective communicators by:  Selecting an appropriate medium for each message—there is no one “best” medium.  Considering information richness (the amount of information a medium can carry). A medium with high richness can carry much more information to aid understanding.A medium with high richness can carry much more information to aid understanding.  Asking if there is a need for a paper path or electronic trail to provide documentation of the communication.

14. © Copyright 2004 McGraw-Hill. All rights reserved.13–14 Information Richness of Communication Media Figure 13.3

15. © Copyright 2004 McGraw-Hill. All rights reserved.13–15 Communication Media Face-to-FaceFace-to-Face  Has highest information richness.  Can take advantage of verbal and nonverbal signals.  Provides for instant feedback. Management by wandering around takes advantage of this with informal talks to workers.Management by wandering around takes advantage of this with informal talks to workers. Video conferences provide much of this richness and reduce travel costs and meeting times.Video conferences provide much of this richness and reduce travel costs and meeting times.

16. © Copyright 2004 McGraw-Hill. All rights reserved.13–16 Communication Media (cont’d) Spoken Communication Electronically TransmittedSpoken Communication Electronically Transmitted  Has the second highest information richness. Telephone conversations are information rich with tone of voice, sender’s emphasis, and quick feedback, but provide no visual nonverbal cues.Telephone conversations are information rich with tone of voice, sender’s emphasis, and quick feedback, but provide no visual nonverbal cues.

17. © Copyright 2004 McGraw-Hill. All rights reserved.13–17 Communication Media (cont’d) Personally Addressed Written CommunicationPersonally Addressed Written Communication  Has a lower richness than the verbal forms of communication, but still is directed at a given person. Personal addressing helps ensure receiver actually reads the message—personal letters and e-mail are common forms.Personal addressing helps ensure receiver actually reads the message—personal letters and e-mail are common forms. Does not provide instant feedback to the sender although sender may get feedback later.Does not provide instant feedback to the sender although sender may get feedback later. Excellent media for complex messages requesting follow-up actions by receiver.Excellent media for complex messages requesting follow-up actions by receiver.

18. © Copyright 2004 McGraw-Hill. All rights reserved.13–18 E-Mail Dos and Don’ts E-mail allows telecommuting employees to work from home and keep in contact.E-mail allows telecommuting employees to work from home and keep in contact. The use of e-mail is growing rapidly and e- mail etiquette is expected:The use of e-mail is growing rapidly and e- mail etiquette is expected:  Typing messages in all CAPITALS is seen as “screaming” at the receiver.  Punctuate your messages for easy reading and don’t ramble on.  Pay attention to spelling and treat the message with a much care as a written letter.

19. © Copyright 2004 McGraw-Hill. All rights reserved.13–19 Communication Media (cont’d) Impersonal Written CommunicationImpersonal Written Communication  Has the lowest information richness. Good for messages to many receivers where little or feedback is expected (e.g., newsletters, reports).Good for messages to many receivers where little or feedback is expected (e.g., newsletters, reports). May add to the receiver’s information overload: A superabundance of information that increases the likelihood that important information is ignored and tangential information receives attention.May add to the receiver’s information overload: A superabundance of information that increases the likelihood that important information is ignored and tangential information receives attention.

20. © Copyright 2004 McGraw-Hill. All rights reserved.13–20 The Information Technology Revolution Information Technology The Tumbling Price of Information Wireless Communications Computer Networks Software Development

21. © Copyright 2004 McGraw-Hill. All rights reserved.13–21 The Information Technology Revolution The Tumbling Price of InformationThe Tumbling Price of Information  The cost of computer hardware has dropped dramatically while the power of computers has risen sharply. Wireless communicationsWireless communications  Cellular service has grown rapidly to over 110 million users.  Wireless access now connects laptops to networks.

22. © Copyright 2004 McGraw-Hill. All rights reserved.13–22 The Information Technology Revolution Computer NetworksComputer Networks  Networking The exchange of information through a group or network of interlinked computers.The exchange of information through a group or network of interlinked computers. Servers are powerful computers that relay information to client computers connected on a Local Area Network (LAN).Servers are powerful computers that relay information to client computers connected on a Local Area Network (LAN). Mainframes are large computers processing vast amounts of information.Mainframes are large computers processing vast amounts of information. The Internet is a world wide network of computers.The Internet is a world wide network of computers.

23. © Copyright 2004 McGraw-Hill. All rights reserved.13–23 A Typical Three- Tier Information System Figure 13.4

24. © Copyright 2004 McGraw-Hill. All rights reserved.13–24 Software Developments

25. © Copyright 2004 McGraw-Hill. All rights reserved.13–25 Four Computer-Based Management Information Systems Figure 13.5

26. © Copyright 2004 McGraw-Hill. All rights reserved.13–26 Types of Information Systems Transaction Processing Systems (TPS)Transaction Processing Systems (TPS)  Systems designed to handle large volumes of routine transactions. Were the first computer-based information systems handling billing, payroll, and supplier payments.Were the first computer-based information systems handling billing, payroll, and supplier payments. Operations Information Systems (OIS)Operations Information Systems (OIS)  Systems that gather, organize, and summarize data in a form of value to managers. Can help managers with non-routine decisions such as customer service and productivity.Can help managers with non-routine decisions such as customer service and productivity.

27. © Copyright 2004 McGraw-Hill. All rights reserved.13–27 Types of Information Systems (cont’d) Decision Support Systems (DSS)Decision Support Systems (DSS)  Provide interactive models to help middle and upper managers make better decisions. Excellent for unusual, non-programmed decisions.Excellent for unusual, non-programmed decisions. Analyzes investment potential, new product pricing.Analyzes investment potential, new product pricing.  Executive Support System (ESS) Sophisticated version of a DSS matched a top manager’s needs.Sophisticated version of a DSS matched a top manager’s needs.

28. © Copyright 2004 McGraw-Hill. All rights reserved.13–28 Types of Information Systems (cont’d) Decision Support Systems (DSS) (cont’d)Decision Support Systems (DSS) (cont’d)  Group Decision Support System An executive support system that links top managers so that they can function as a team.An executive support system that links top managers so that they can function as a team. Expert Systems and Artificial IntelligenceExpert Systems and Artificial Intelligence  Employ human knowledge captured in a computer to solve problems usually requiring human insight. Uses artificial intelligence (AI) to recognize, formulate, solve problems, and learn from experience.Uses artificial intelligence (AI) to recognize, formulate, solve problems, and learn from experience.

29. © Copyright 2004 McGraw-Hill. All rights reserved.13–29 The Impact and Limitations of Information Systems Management Information SystemsManagement Information Systems  Have provided managers with better information, enabling better decision making. Effective information systems can be a source of competitive advantage.Effective information systems can be a source of competitive advantage.  Computerized communications can lack the vital elements of human communication that contribute to information richness.