MGTA04- Chapter 3 - Class 4.docx

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MGTA04 Class 4 February 2, 2012
CHAPTER 3: MANAGING INFORMATION SYSTEMS AND COMMUNICATION TECHNOLOGY
- Information Manager: the manager responsible for the activities needed to generate, analyze, and
disseminate information that a company needs to make good decisions
- Information Management: An internal operation that arranges the firm’s information resources to support
business performance and outcomes
DATA VS. INFORMATION
- Data: raw facts and figures
- Information: a meaningful, useful interpretation of data
INFORMATION SYSTEMS
- Information System (IS): an organized method of transforming data into information that can be used for
decision making
- IS managers determine what info is needed, then they gather the data and apply the technology to convert
data into information. They also need to control the flow of info so that it goes only to those people who
need it.
- Informational quality depends on an organization’s technological resources and on the people who
manage them
- The widening role of IS results from rapid developments in electronic technologies that allow faster and
broader flows of information and communications
THE EXPANDING SCOPE OF INFORMATION SYSTEMS
- Managers soon began using IS systems not merely to solve technical problems, but to analyze
management problems, especially for control purposesapplying quality-control standards to production,
comparing costs against budgeted amounts, keeping records on employee absences and turnover
- IS are also crucial in planning. Managers routinely use IS to decide on a firm’s products and markets for
the next 5-10 years
- Basic change in organizations: an increased interdependence between a company’s business strategy and
its IS.
ELECTRONIC INFORMATION TECHNOLOGIES
- IS applications based on telecommunications technologies
- Perform 2 functions:
1. Providing coordination and communication within a firm
2. Speeding up transactions with other firms
- Widely used innovations
- Fax Machine (facsimile machine)- a machine that can quickly transmit a copy of documents or graphics
over telephone lines
- Voice mail: a computer based system for receiving and delivering incoming telephone calls
- Electronic mail (email) system: electronic transmission of letters, reports, and other information between
computers
- Electronic Conferencing: allows people to communicate simultaneously from different locations via
telephone, video or email group software
- one form of electronic conferencing: data conferencingallows people in remote location to
work simultaneously on the same document
- Groupware: system that allows 2+ individuals to communicate electronically between desktop PCs
- Info from outside a company can be linked to its electronic network, and the info can be made available
at every workstation. Commercial digital information services provide online information for both
special-purpose and general topics
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MGTA04 Class 4 February 2, 2012
DATA COMMUNICATION NETWORKS
- Data communication networks: global networks that permit users to send electronic messages quickly and
economically
- Internet: A gigantic network of networks that serves millions of computers, offers information on
business, science, government, and provides communication flows among more than 170 000 separate
networks around the world
- Individuals can’t connect directly to the internet, so for small monthly usage fees, they can subscribe to
the internet via an internet service provider (ISP) [ex. Prodigy, America Online, Earthlink]
- World Wide Web: A system with universally accepted standards for storing, retrieving, formatting and
displaying information on the internet
- To access a website, the user must specify the URL (uniform resource locator)
- Webmaster: person responsible for maintaining an organization’s website
- Web Servers: dedicated workstationslarge computersthat are customized for managing, maintaining,
and supporting websites
- Browser: software that enables a user to access information on the web (Ex. Mozilla Firefox, Internet
Explorer)
- Directories: features that help people find the content they want on the web. The user types in key words
and the directory retrieves a list of websites with titles containing those words
- Search Engine: Software for searching webpages that doesn’t pre-classify them into a directory
- Intranets: a company’s private network that is accessible only to employees via entry through electronic
firewalls
- Firewall: hardware and software security systems that ensure that internal computer systems are not
accessible to outsiders
- Extranet: a network that allows outsiders limited access to a firm’s internal information system
NEW OPTIONS FOR ORGANIZATIONAL DESIGN: THE NETWORKED ENTERPRISE
- Leaner Organizations [Ppl work longer, demands of the job are greater]
- Information networks are leading to leaner companies with fewer employees and simpler organizational
structures. Because today’s networked firm can maintain information linkages among both employees and
customers, more work can be accomplished with fewer people
- widespread reductions in middle-management positions and the shrinkage of layers of organizational
structure are possible because information networks now provide direct communications between the top
managers and workers at lower levels
- More Flexible Operations [Everything is more complex]
- Electronic networks allow businesses to offer customers greater variety and faster delivery cycles.
- Mass Customization: producing large volumes of products and services, but giving customers the choice
of features and options they want
- Increased Collaboration [Systems are efficient, but not robust. Larger systems are tied together
problems spread more quickly
- Collaboration is on the rise because networked systems make it cheaper and easier to contact everyone,
whether other employees or outside organizations.
- Aided by intranets. Companies learned that complex problems can be solved better by means of
collaboration
- Networking and the Virtual Company [Networkingeverything is RIGHT NOW, w/ little time to think
or train people]
- Networked systems can also improve collaboration between organizations through the so-called virtual
companycan be a temporary team assembled by a single organization, can also be treated as an alliance
between several firms
- Greater Independence of Company and Workplace
- Geographic separation of the workplace from the company HQ is more common than ever because of
networked organizations
- Improved Management Processes
- Networked systems have changed the very nature of the management process.
- With networked systems, instantaneous information is accessible in a convenient and usable format
- Enterprise Resource Planning (EPR): large information systems for integrating all the activities of a
company’s business units
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