Chapter 3.docx

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2 Apr 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: 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
Electronic Information Technologies (EIT): IS applications based on telecommunications technologies
Two functions:
Providing coordination and communication within the firm
Speeding up transactions with other firms
6 most widely used innovation:
1. Fax machines: machines that can quickly transmit a copy of documents or graphics over
telephone lines
2. Voice Mail: a computer based system for receiving and delivering incoming telephone calls
3. Email System: electronic transmission of letters, reports, and other information between
4. Electronic conferencing: allows people to communicate simultaneously from different locations
via telephone, video, or email group software
5. Groupware: a system that allows two or more individuals to communicate electronically
between desktop PCs.
Data Communication Networks: global networks that permit users to send electronic network messages
quickly and economically
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 subscribers
World Wide Web: a system with universally accepted standards for strong, retrieving, formatting, and
displaying information on the internet
Web Servers: dedicated workstations large computers that are customized for managing,
maintaining and supporting websites
Browser: software that enables a user to access information the web
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Directions: features that help people find the content they want on the web. The user types in key
words on 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 directory
Intranet: a company’s private network that is accessible only to employees via entry through electronic
Firewall: hardware and software security system that ensure that internal computer system 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 Organization
Information networks are leading to leaner companies with fewer employees and simpler
organizational structure
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 in
organizational structure are possible because information networks now provide direct
communications between the top managers and workers at lower levels
Replacing the operating managers who formerly communicated companies policies,
procedures, or work instructions to lower-level employees
More Flexible Operations
Mass customization: producing large volumes of products or service, but giving customers the
choice of features and options they want
Allow business to offer customers greater variety and faster delivery cycles
Flexible production and fast delivery depend on an integrated network to coordinate all the
transactions, activities, and process flows necessary to make quick adjustments in the
production process
Increased Collaborations
Collaborations with outside firms is on the rise because networked systems make it cheaper and
easier to contact everyone, whether other employees or outside organizations
Help to solve complex problems
Share responsibility because so much information is accessible for evaluation from various
Networking and the Virtual Company
o a temporary team assembled by a single organization, but a virtual company can also be
creased by several allied firms
o networking lets collaboration exchange ideas, plan strategy, share customer information,
and otherwise coordinate efforts
Greater Independence of Company and Workplace
geographic separation of the workplace from company headquarters
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