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study guide

Management (MGT)
Course Code
Chris Bovaird

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Chapter 3: Managing Information Systems and Communication Technology
-every major firms business activities are linked to information systems
-the management of information system is a core business activity
-information managers: 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 firms information resources
to support business performance and outcomes
-managers must often sift through a bunch of reports, memos, etc
Data Versus Information
-data: raw facts and figures
-information: a meaningful, useful interpretation of data
-the challenge for business is to turn a flood of data into information and to manage that
information to their best advantage
Information Systems
-information system (IS): an organized method of transforming data into information that can
be used for decision making
-IS managers determine which information is needed, must gather the data, and apply the
technology to convert data into information
-IS managers must control the flow of information so that it goes only to those who need it
-at all levels, informational quality depends on an organizations technological resources and on
the people who manage them
-employees from all levels use information systems to improve performance
-IS assists in scheduling day-to-day vehicle trips, evaluating prospective employees, and
formulating the firms business strategy
-technology has inspired new organizational designs, innovative relationships with other
organizations, and new management process for improved competitiveness
The Expanding Scope of Information Systems
-the relationship between information systems and organizations is among the fastest-changing
aspects of business today

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-IS systems are used to solve technical problems, but also to analyze management problems
especially for control purposes—applying quality-control standards to production, comparing
costs against budgeted amounts, keeping records on employee absences and turnover
-are also crucial in planning
-IS systems are used to decide on a firms products and markets for the next 5 to 10 years
-another basic change in organizations is an increased interdependence between a company’s
business strategy and its IS
-to support a strategy, the systems software, hardware, and other components must be integrated
Electronic Business and Communications Technologies
-the pressure to maintain better communications and IS systems are increasing as competition
intensifies and as organizations expand into global and ebusiness operations
-new electronic IT and more advanced data communication networks are meeting the needs of
such companies
Electronic Information Technologies
-electronic information technologies (EIT): are IS applications based on telecommunications
-use networks of appliances or devices (cellular phones, computers) to communicate information
by electronic means
-enhance the performance and productivity of general business activities by performing two
1) providing coordination and communication within the firm
2) speeding up transactions with other firms
-there are six most widely used innovations in todays digital business system, which are:
-fax machine: a machine that can quickly transmit a copy of documents or graphics over
telephone lines
-popular due to speed and low cost
-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 from of electronic conferencing is data conferencing, which allows people in remote
locations to work simultaneously on the same document

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-another form of electronic conferencing is videoconferencing, which allows participants to see
one another on a video screen while the teleconference is in progress
-groupware: a system that allows two or more individuals to communicate electronically
between desktop PCs
-software that connects members of the group for email distribution, message storing,
appointments, etc
-information from outside a company can be linked to its electronic network, and the information
can be made available at every workstation
-commercial digital information services provide online information for both special-purpose
and general topics
Data Communication Networks
-data communication networks: global networks that permit users to send electronic messages
quickly and economically
-carry streams of digital data back and forth
-the most prominent network is the internet and the World Wide Web
The Internet
-internet: a gigantic network of networks that serves millions of computers, offers information
on business, science, and government, and provides communication flows among more than
170,000 networks around the world
-efficient tool for information retrieval that makes available an immense wealth of academic,
technical, and business information
-transmits information quickly and at a low cost, therefore the internet has become the most
important email system
-internet service provider (ISP): a commercial firm that maintains a permanent connection to
the internet and sells temporary connections to subscribers
The World Wide Web
-World Wide Web: a system with universally accepted standards for storing, retrieving,
formatting, and display information on the internet
-enables us to surf the net
-because of the WWW, the internet is easy to use and allows users around the world to
communicate electronically with little effort
-the webmaster is responsible for maintaining an organizations website
-web servers: dedicated workstations—large computers—that are customized for managing,
maintaining, and supporting websites
-large websites use webs servers
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