Transcript Document 7195415

Using Technology
to Manage Information
Chapter 17
Chapter 17 Learning Goals
1. How does information play a role in
decision making?
2. What are the components of a computer,
and how are computers categorized by
size?
3. How does software make a computer
useful?
4. Why are computer networks an important
part of today’s business information
systems?
Chapter 17 Learning Goals (cont’d.)
5. What is the structure of a typical
information system?
6. How can companies manage information
technology to their advantage?
7. What are the leading trends in
information technology?
Information Technology (IT):
The equipment & techniques
used to manage and process
information
Information System (IS):
The methods & equipment that
provide information about all
aspects of a firm’s operations
Chief Information Officer (CIO):
An executive with responsibility
for managing all information
resources in an organization
Learning Goal 1
• How does information play a role in
decision making?
– Managers compare information about the
company’s current status to its
• Goals
• Standards
– Information is partially provided by information
systems which:
• Collect data
• Process data
Useful Information is:
•
•
•
•
Relevant
Accurate
Complete
Timely
Learning Goal 2
• What are the components of a computer, and how
are computers categorized by size?
– Hardware components
• Central processing unit (CPU)
• Secondary storage system
• Input system and Output system
– Microcomputers: Small enough to fit on a desktop
– Minicomputers: Too large for a desktop but fit into a
normal office
– Mainframe computers: Size of a refrigerator; quickly
processes high volumes of data
– Supercomputers: Can perform complex computations
Computer Hardware
• Central processing unit (CPU)
• Random access memory (RAM)
– short-term storage
• Secondary storage
– long-term storage
Types of Computers
• Microcomputers
– personal computers (PCs), laptops
• Minicomputers
– ‘medium’ sized; too large for desk
• Mainframes
– large; high storage capacity
• Supercomputers
– most powerful; complex computations
Personal Computers
Personal Computer Ownership in Japan
Percent of Households
in Japan with PC s
30
25
20
15
10
5
1999
1997
1995
1993
1991
1989
1987
0
Source: Annual Report of Current Consumption Survey/Japan
Information Network, jin.jcic.or.jp
Types of Computers
• Apple’s G4 computer is a ‘supercomputer’
– it can process 1 billion operations per
second, making it a ‘gigaflop’ computer
(Source: Apple, www.apple.com)
• IBM is investing $100 million to develop a
new supercomputer
– it will process 1 quadrillion operations per
second, making it a ‘petaflop’ computer
– it will be 2 million times faster than the
personal computers of 1999 (Source: Newsweek,
Dec. 1999, p. 83)
Learning Goal 3
• How does software make a computer useful?
Applications Software
Systems Software
•
•
•
•
•
•
• Controls computer
• Provides program
routines that enable
applications programs
to run
• Operating system
Word processing
Spreadsheets
Graphics
Databases
Desktop publishing
Communications
Computer Software
• Systems software
• Applications software
– word processing
– spreadsheets
– database management
– graphics
– desktop publishing
– communications
– integrated software
Learning Goal 4
• Why are computer networks an important
part of today’s business information
systems?
– Networks are used to link computers to
• Share data
• Share expensive hardware
• Improve operating efficiency
– Types of networks
• Local area networks (LANs)
• Wide are networks (WANs)
Computer Networks
• Local area networks (LAN)
– connects computers at one site
– people can share hardware &
software
• Wide area networks (WAN)
– connects computers at different sites
by phone, satellite, or microwave
• Intranet
– internal corporate wide area network
Types of Business
Information Systems
• Transaction processing systems
– handle daily business operations
• Management support systems
(analytic systems)
– help managers forecast, analyze data
• Office automation systems
– communication between employees
Communication Between Employees
E-mail Guidelines:
– Be concise and to the point
– Don’t ‘flame’ people
• communicate negative comments constructively in
person
– Get permission before forwarding junk mail
– Nothing is private - realize your message may
be read by others
– Keep attachments to a minimum
– Don’t assume anything - your reader may not
know e-mail lingo and symbols
Source: The Toastmaster, Dec. 1999, pp. 20-21.
Learning Goal 5
• What is the structure of a typical information
system?
– Transaction processing system
• Collects and organizes operational data on firm’s activities
– Management support systems
• Help managers make better decisions
• Include
– Information reporting system
– Decision support systems
– Expert systems
– Office automation system
• Facilitate communication by using word processing, e-mail, fax
machines, and similar technologies
An Integrated Information System
Suggested
decisions
Internal
data
sources
Information
reporting
system
Transaction
processing
system
Internal
database
External
data
sources
Expert
systems
Decision
support
systems
External
database
Possible
solutions
Executive
information
systems
Learning Goal 6
• How can companies manage information
technology to their advantage?
– Technology planning involves
• Evaluating the company’s goals and objectives
• Using the right technology to reach them
– Companies need to protect equipment and
data
• Natural disasters
• Computer crime
• Must protect customers’ personal privacy rights
Managing Information Technology
• Technology planning
– coordination of executives, IT managers, &
area managers
• Protecting computers & information
– data security
– ‘Y2K’ millennium bug
• US government budgeted $7.5 billion to
address the Y2K computer bug (Source: BBC News,
news.bbc.co.uk)
– privacy of information
Learning Goal 7
• What are the leading trends in information
technology?
– Knowledge management
• Focuses on sharing an organization’s collective knowledge
• Improves productivity and fosters innovation
– Simple information appliances
• Make the PC a less important information tool
• Easy-to-use
– Shortage of qualified IT personnel
• Companies are finding it hard to stay current with latest
technology
Trends in Technology
 Knowledge Management
 Information appliances
 palmtops, web phones
 smarter household appliances include:
washers with dirt sensors
refrigerators with adaptable defrost
microwaves & refrigerators that ‘know’ what
is inside by scanning bar codes (Source:
Consumer Reports, Jan. 2000, p. 18)
 Shortage of IT personnel