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4 Apr 2011
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Chapter 3: Managing Information Systems and Communication Technology
INFORMATION MANAGEMENT
-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
NEW BUSINESS TECHNOLOGIES IN THE INFORMATION AGE
-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
technologies
-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
functions:
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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Document Summary

Chapter 3: managing information systems and communication technology. Every major firm"s 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 firm"s information resources to support business performance and outcomes. Managers must often sift through a bunch of reports, memos, etc. The challenge for business is to turn a flood of data into information and to manage that information to their best advantage. 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.

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