1. Chapter 18 ©2001 South-Western College Publishing Pamela S. Lewis Stephen H. Goodman Patricia M. Fandt Slides Prepared by Bruce R. Barringer University of Central Florida Pamela S. Lewis Stephen H. Goodman Patricia M. Fandt Slides Prepared by Bruce R. Barringer University of Central Florida Information Technology and Control

2. Transparency 18-2 © 2001 South-Western Publishing Learning Objectives Slide 1 of 3 1.Explain the differences between data and information. 2.Describe how cost-benefit analysis can be applied to the process of collecting and manipulating data. 3.Discuss the characteristics of useful information. 4.Describe the various components in an information system.

3. Transparency 18-3 © 2001 South-Western Publishing Learning Objectives Slide 2 of 3 5.Illustrate the steps in the development of an information system. 6.Explain the various roles of information technology in organizations. 7.Describe a variety of types of technology that are changing the way we work.

4. Transparency 18-4 © 2001 South-Western Publishing Learning Objectives Slide 3 of 3 8.Discuss the impact of information technology on the organization. 9.Explain the limitations of information technology.

5. Transparency 18-5 © 2001 South-Western Publishing Purpose of Information Technology To monitor, process, and disseminate information to assist in managing, decision making, and controlling the organization.

6. Transparency 18-6 © 2001 South-Western Publishing Information Versus Data DataInformation The result of the process of transforming data into meaningful facts useful for a specific purpose. Raw facts or details that represent some type of transaction or activity within an organization.

7. Transparency 18-7 © 2001 South-Western Publishing Evaluating Information Slide 1 of 3 Cost-Benefit Analysis –The process of examining both the costs and the potential benefits of some endeavor to determine whether it will pay off. –The opportunity presented by the collection, analysis, and use of data within an organization has both a positive side (benefits) and a negative side (costs).

8. Transparency 18-8 © 2001 South-Western Publishing Evaluating Information Slide 2 of 3 Cost-Benefit Analysis (cont.) –Tangible costs Costs that can be accurately predicted and quantified, due to the relative certainty associated with their occurrence. Example: costs of hardware and software associated with data collection. –Intangible costs Costs that are difficult to quantify, either because of the difficulty in precisely anticipating outcomes or the impossibility of predicting ultimate consequences. Example: Work disruption due to changes in procedures.

9. Transparency 18-9 © 2001 South-Western Publishing Evaluating Information Slide 3 of 3 Cost-Benefit Analysis (cont.) –Tangible benefits Include increases in sales, reduction in inventory costs, and identifiable improvements in worker productivity. –Intangible benefits Include improvements in information availability, better employee morale, and improved customer service.

10. Transparency 18-10 © 2001 South-Western Publishing Characteristics of Useful Information Slide 1 of 3 Quality –High-quality information is accurate, clear, orderly, and available in a form that assists the decision maker. Timeliness –Timely information has several ingredients: time sensitivity, currency, and frequency.

11. Transparency 18-11 © 2001 South-Western Publishing Characteristics of Useful Information Slide 2 of 3 Completeness –Information is complete when it is sufficient to allow the decision maker to make an accurate assessment of the situation and to arrive at a suitable decision. –Conciseness and detail are two additional aspects of completeness.

12. Transparency 18-12 © 2001 South-Western Publishing Characteristics of Useful Information Slide 3 of 3 Data processing transformation Data processing transformation Information - Quality - Timeliness - Completeness

13. Transparency 18-13 © 2001 South-Western Publishing Information Systems for Management Information systems provide managers a systematic approach to collecting, manipulating, maintaining, and distributing information throughout an organization. Information systems have a long history. Early Teletype Machine

14. Transparency 18-14 © 2001 South-Western Publishing Information System Components Computer-based information system Components of general information system Inputs Processing Outputs Feedback Control Additional components Hardware Software Database

15. Transparency 18-15 © 2001 South-Western Publishing Steps in the Development of High- Quality MIS Slide 1 of 3 Investigation –Organization determines whether a problem or opportunity exists that can be addressed by an information system. Systems Analysis –Develop the functional requirements for the information system.

16. Transparency 18-16 © 2001 South-Western Publishing Steps in the Development of High- Quality MIS Slide 2 of 3 Systems Design –System's technological capabilities are addressed. Systems Implementation –The hardware and software are developed or acquired, and the new information system is put together.

17. Transparency 18-17 © 2001 South-Western Publishing Steps in the Development of High- Quality MIS Slide 3 of 3 Systems Maintenance –Like any piece of equipment, an information system will need to be maintained to remain effective. –Systems development life cycle (SDLC) Recognition that investigating, analyzing, designing, implementing, and maintaining an information system is an ongoing process.

18. Transparency 18-18 © 2001 South-Western Publishing Systems Development Life Cycle Systems investigation Systems analysis Systems design Systems implementation Systems maintenance Information system life and evolution

19. Transparency 18-19 © 2001 South-Western Publishing Pitfalls in System Design Slide 1 of 3 Feasibility –Organizational feasibility Refers to how well the proposed system supports the strategic objectives of the organization. –Economic feasibility Focuses on whether the expected benefits of an information system will be able to cover the anticipated costs.

20. Transparency 18-20 © 2001 South-Western Publishing Pitfalls in System Design Slide 2 of 3 Feasibility –Technical feasibility Refers to the capability of the hardware and software of the proposed information system to provide the decision makers in the organization with the needed information. –Operational feasibility Refers to the willingness and ability of all concerned parties to operate and support the information system as it is proposed and implemented.

21. Transparency 18-21 © 2001 South-Western Publishing Pitfalls in System Design Slide 3 of 3 Ability to Meet Needs of Diverse Users –An additional concern in the system design process is whether the system will ultimately meet the users’ needs. User Expectations –Finally, in many instances the expectations of the users and the organization are too high.

22. Transparency 18-22 © 2001 South-Western Publishing Management Information Systems (MIS) –Focuses on the routine, structured, regular reporting and information requirements of the organization. Decision Support Systems (DSS) –Computer-based information system that uses imbedded analytical models to assist decision makers in analyzing and solving semistructured problems. Applications of Computer-Based Information Systems

23. Transparency 18-23 © 2001 South-Western Publishing Decision Support System (DSS) Interactive computer work station DSS - Models - Software - Database User Firm database

24. Transparency 18-24 © 2001 South-Western Publishing Telecommunications Slide 1 of 3 The transmission of information in any form from one location to another using electronic or optical means. –Wide-area network (WAN) Information system that extends over a broad geographic area, such as cities, regions, countries, or the world.

25. Transparency 18-25 © 2001 South-Western Publishing Telecommunications Slide 2 of 3 Transmission of information from one location to another (cont.) –Local-area network (LAN) Information system that connects users in a small area, such as a building, an office, or a manufacturing plant.

26. Transparency 18-26 © 2001 South-Western Publishing Telecommunications Slide 3 of 3 Electronic Data Interchange (EDI) –Electronic transmission of transaction data using telecommunications. Electronic Funds Transfer (EFT) –Electronic manipulation of financial transactions.

27. Transparency 18-27 © 2001 South-Western Publishing Telecommuting –The practice of working at a remote site by using a computer linked to a central office or other employment location.

28. Transparency 18-28 © 2001 South-Western Publishing Electronic Mail and Electronic Commerce (E-Commerce) E-mail –A computer-based system that allows individuals to exchange and store messages through computerized text-processing and communication networks. Electronic Commerce –The process of buying and selling goods and services electronically with computerized business transactions.

29. Transparency 18-29 © 2001 South-Western Publishing Artificial Intelligence Artificial Intelligence (AI) –Refers to the process of developing computers systems that can behave intelligently. Expert system - A computer-based system that contains and can use knowledge about a specific, relatively narrow, complex application. Robotics - Use of machines with humanlike characteristics, such as dexterity, movement, vision, and strength.

30. Transparency 18-30 © 2001 South-Western Publishing Office Automation Systems for office automation are typically computer-based information systems that assist the organization in the processing, storage, collection, and transmission of electronic documents and messages among individuals, work groups, and organizations.

31. Transparency 18-31 © 2001 South-Western Publishing Components of Office Automation Slide 1 of 3 Electronic Work and Training –Telecommuting –Multimedia Electronic Documents and Image Processing Systems –Word processing –Desktop publishing –Document management

32. Transparency 18-32 © 2001 South-Western Publishing Components of Office Automation Slide 2 of 3 Electronic Communications –E-mail –Voice mail –Fax Electronic Meeting Systems –Electronic meeting management systems –Collaborative work systems –Teleconferencing

33. Transparency 18-33 © 2001 South-Western Publishing Components of Office Automation Slide 3 of 3 Office Management Systems –Electronic office tools –Electronic calendar

34. Transparency 18-34 © 2001 South-Western Publishing Guidelines for Successful Managers of the Future Slide 1 of 2 Understand the importance of quality information that is obtained in a timely fashion. Employ information systems capable of providing quality information that is both timely and complete. Are able to use that information to their advantage in the organizational decision- making process.

35. Transparency 18-35 © 2001 South-Western Publishing Guidelines for Successful Managers of the Future Slide 2 of 2 Are well versed in the latest technological innovations for information gathering, processing, and disseminating. Are aware of the impact of information technology on management efficiency, organizational social relationships, and organizational structure. Are aware of the limitations of computer- based information systems.