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
Information Management – An internal operation that arranges the firm’s
information resources to support business performance outcomes.
Data – Raw facts and figures.
Information – A meaningful, useful interpretation of data.
Information System (IS) – An organized method of transforming data into
information that can be used for decision making.
– Solve technical problems, 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.
Electronic Business and Communications
Electronic Information Technology (EIT) – IS applications based on
– Fax 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 income
– 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.
– Groupware – A system that allows two or more individuals to communicate
electronically between desktop PCs.
Data Communication Networks
Data Communication Networks – Global networks that permit users to send
electronic messages quickly and economically.
– The 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 separate networks
around the world.
– Internet Service Provider (ISP) – A commercial firm that maintains a
permanent connection to the internet and sells temporary connections to
– The World Wide Web – A system with universally accepted standards for
storing, retrieving, formatting, and displaying information on the internet.
– Uniform Resource Locator (URL)
– Home Page – A screen display that welcome the visitor with a
greeting that may include graphics, sound, and visual
enhancements introducing the user to the site.
– Webmaster – The person responsible for maintaining an
– Web Servers – Dedicated work stations – large computers –
that are customize for managing, maintaining, and supporting
– Browser – Software that enables a user to access information
on the web.
– Directories – Features the 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 web pages that does
not pre-classify them into a directory.
– Intranet – 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
New Options for Organizational Design: The
– Fewer employers.
– Simpler organizational structures.
– Reductions in middle-management positions.
– Shrinkage of layers in organization structure
– Electronic information networks are replacing operating managers who
formerly communicated company policies, procedures, or work instructions to
More Flexible Operations – Offer customers greater variety and faster delivery cycles.
– Mass-Customization – Producing large volumes of products or services, but
giving customers the choice of features and options they want.
– Marketing, finance, production, engineering, and purchasing can share their
different stories of information and determine a best overall design.
– Networking and the Virtual Company – Lets collaborators exchange ideas,
plan strategy, share customer information, and otherwise coordinate efforts,
even if their respective facilities are far apart.
Greater Independence of Company and Workplace
– Geographic separation of the workplace.
– Company’s activities may be geographically scattered.
Improved Management Processes
– Instantaneous information is accessible in a convenient and usable format.
– Managers use it routinely for planning, creating, leading, directing, and
– Enterprise Resource Planning (ERP) – Large information systems for
integrating all the activities of a company’s business units.
Types of Information Systems
– A complex of several information systems that share information while
serving different levels of the organization, different departments, or different
User Groups of System Requirements
Knowledge Workers – Employees whose jobs involve the use of information and
knowledge as the raw materials.
System User/Level Kind of Information System
– Top-Level Managers Strategic Information System
– Mid-Level Managers Management Information System
– Knowledge Workers Knowledge Information System
– First-Level Managers Operational Information System
Major Systems by Level 1. Transaction Processing Systems (TPS) – Applications of information
processing for basic day-to-day business transactions.
2. System for Knowledge Workers and Office Applications