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Chapter 3

Chapter 3- Managing Information Systems and Communication Technology

Management (MGT)
Course Code
Bill Mc Conkey

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Chapter 3- Managing Information Systems and Communication Technology
1- Explain why businesses must manage information and show how computer
systems and communication technologies have revolutionized information
Management of information systems is a core business activity that can no
longer be given to technical personnel
Information manager- responsible for activities needed to generate, analyze, and
publicize 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
To find the info they need to make critical decisions, managers often sift through
a virtual avalanche of reports, memos, magazines, and phone calls
Data versus Information
Data- raw facts and figures (Ex: 5 million tubes of toothpaste were sold last year)
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
1. Determine what info is needed
2. Must gather the data and apply the technology to convert data into info
3. Control the flow of info so that it goes only to those people who need it
Supplied info varies according to such factors as the functional areas in which
people work and their management levels
Employees at every level in the organization uses IS to improve performance
(Ex: scheduling, evaluating, and formulating)
Widening role of IS results from rapid developments in electronic technologies
that allow faster and broader flows of info and communications
The Expanding Scope of Information Systems
Managers began using IS systems to solve technical problems and to analyze
management problems, especially for control purposes
IS are crucial in planning (Ex: forecasting)
Increased in interdependence between a company’s business strategy and its IS

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Electronic Business and Communications Technologies
New electronic information technologies and more advanced data
communication networks are meeting the needs of such companies
Electronic Information Technologies
Electronic information technologies (EIT) IS applications based on
telecommunications technologies (Ex: cellphones and computers)
EITs enhance the performance and productivity of general business activities by
performing 2 functions:
1.Providing coordinates and communication with the firm
2.Speeding up transactions with other firms
6 of the most widely used innovations in todays digital business systems:
oFax machine- a machine that can quickly transmit a copy of documents or
graphics over telephone lines
Low in cost and very quick
oVoice mail- a computer-based system for receiving and delivering
incoming telephone calls
oElectronic mail (email) system- electronic transmission of letters,
reports, and other information between computers
Substitutes for the flood of paper and telephone calls
oElectronic conferencing- allows people to communicate at once
from different locations via telephone, video, or email group software
Eliminates travel and saves money
Accessible and speeds up information flow
Data conferencing- allows people in remote locations to work
at once on the same document
Videoconferencing- allows participants to see one another
on a video screen while the teleconference is in progress
oGroupware- a system that allows two or more individuals to
communicate electronically between desktop PCs
oDigital information services- information from outside a company
can be linked to its electronic network, and the information can be made
available at every workstation
2- Identify and briefly describe three elements of data communication network-the
internet, the World Wide Web, and intranets
Data Communication Networks
Data communication networks- global networks that permit users to send electronic
messages quickly and economically

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Internet- a huge network that serves millions of computers offers information
communication flows around the world
A world-wide network of computers, linked together so that they can communicate
with any other computer
Can transmit info quickly and at low cost
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 generally accepted standards for storing, retrieving,
formatting, and displaying information on the internet
“Internetand “Webare NOT synonymous. The Web is part of the internet
Uniform Resource Locator (URL) points to the resources unique address on the
Home Page- a screen display that welcomes the visitor with a greeting that may
include graphics, sound, and visual enhancements introducing the user to the site
Additional pages- provide details on the sponsor’s products and explain how to
contact help in using the site
Webmaster- the person responsible for maintaining an organizations website
Web servers- dedicated workstations (large computers) that are customized for
managing, maintaining, and supporting websites
Browser- software that enables a user to access information on the web (Ex: Netscape,
Mozilla Firefox, and Microsoft Internet Explorer)
Directories- features that help people find the content they want on the web
Type in key words and the directory retrieves a list of websites with titles
containing those words
Search engine- software for searching webpages that does not pre-classify them into a
Intranets- a companys private network that is available only to employees via entry
through electronic firewalls
Firewall- hardware and software security systems that ensure that internal computer
systems are not available to outsiders
Extranets- a network that allows outsiders limited access to a firm’s internal IS
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