Transcript Ch 13 - Info Systems and Communication

CHAPTER 13
Managing Information
Systems and
Communication Technology
Business, Sixth Canadian Edition, Griffin, Ebert, and Starke
Copyright © 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 Starke
Copyright © 2008 Pearson Education Canada
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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 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
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Converting Data to Information
Input
(Data)
Output
(Information)
Process
Text, format
commands
Word
processor
Finished
document
Text, images,
line work
Page layout/
publishing
Page proofs for
production
Accounting
data
General ledger
program
Financial
statements
Sales, cost of
sales data
Break-even
software
Break-even
analysis
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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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Copyright © 2008 Pearson Education Canada
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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
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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Aligning Strategy with IS
Organizational System
Information System
Software
Hardware
People
Database
Control
• Business strategy
• Operating rules
• Business processes
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Telecommunications
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Electronic Information
Technologies (EIT)
IS applications based on telecommunications
technologies
Uses networks of devices to communicate
information electronically
 Fax machine
 Voice mail
 E-mail
 Electronic conferencing
 Groupware
 Digital information services
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Copyright © 2008 Pearson Education Canada
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Data Communication Networks
Global networks
that permit users to send electronic messages
quickly and economically
The Internet
Internet Service
Provider
Browser
Directories
Search Engines
The World Wide Web
Intranets
Web Servers
Extranets
Firewalls
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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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
Networks allow greater product variety and faster cycles
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
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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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
Matching Users to Systems
Top Level: Strategic IS
Mid-Level: Management IS
Knowledge Workers: Knowledge IS
First-Level: Operational IS
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Matching User Levels with
Functional Areas and Business Processes
Organization
Function
Marketing Finance
Business Process
Production
Top-Level
Manager
Mid-Level
Manager
Knowledge
Workers
Strategic Planning
Product Development
Order Fulfillment
Supply Chain
Management
First-Level
Managers
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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
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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 productivity
word 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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Copyright © 2008 Pearson Education Canada
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Elements of the Information System
Database
Control
Hardware
People
Software
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 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++
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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 firewalls
 encryption
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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
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)
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Copyright © 2008 Pearson Education Canada
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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)
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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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 area
 rely on hard wiring (cable) or
 wireless technology (airborne electronic signals)
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Copyright © 2008 Pearson Education Canada
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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
 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
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada