Two Perspectives e This chapter looks at information from two perspectives: > How the firm’s information systems and information technology are part of management... Information Relat
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© 2004 The McGraw-Hill Com
Trang 2Chapter
aging Information Sys
Trang 3leaming Objectives
Afterreading this chapter, you should be able to:
e Understand the difference between data and information,
and how firms use each to achieve organizational goals
e Integrate the components of a firm’s information
technology
e Compare different types of networks, including local area
networks, intranets, extranets, and the Internet
e Understand the role of software and how it changes business
operations
e Discuss the ethical issues involved with the use of computer
technology
e Understand how productivity, efficiency, and
responsiveness to customers can be improved with
information technology
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Trang 4Two Perspectives
e This chapter looks at information from
two perspectives:
> How the firm’s information systems and information
technology are part of management
Trang 5e Analytical Skills—Managers need to be able to
gather, synthesize, and compare data about their firms
and about the options available to them
e Organizational Skills—Managers need to be able to
make sense of information by organizing data to
facilitate analysis and comparison
e Flexibility and Innovation Skills—Managers must be
able to be flexible in adapting standard business
practices to new information technologies
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Trang 6Information Related to MIS
e Management information systems provide
access to important information used in
many other chapters:
> Planning process (chapter 5) \ 4
>Operations management (chapter 17)
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Data and Infomation
e Data—raw facts, such as the number of items sold
or the number of hours worked in a department
e Information—data that have been gathered and
converted into a meaningful context
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Da ta a nd Info ma tio KÌ (continued)
e Databases—computer programs that assign
multiple characteristics to data and allow users to
sort the data by characteristic
e Data warehouses—massive databases that contain
almost all of the information about a firm’s
operations
e Data mining—the process of determining the
relevant factors in the accumulated data to extract
the data that are important to the user
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Trang 9e Technology has improved operations management,
including productivity, efficiency, and customer
responsiveness
e A firm’s information technology may incorporate
its operations technology
e Six Functions of Information Technology:
> Captures data, Transmits data, Stores information, Retrieves
information, Manipulates information, Displays information
Trang 10e Local area networks (LAN) link computers in a
firm so users can share information
e Servers store information for users linked to them
e Wireless equipment—computers no longer require
a physical connection, instead satellites or central
locations create links
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Trang 11> File transfer protocols (FTP) to move files
> World Wide Web provides access to protocols for text, documents,
and images
e Extranets (wide area networks) link a company's employees,
suppliers, customers, and other Key business partners
e Intranets are internal networks that are private or
semiprivate, access Is limited to a firm's employees or
Trang 12Types of Software
e Operating system software tells the computer
hardware how to run
e Artificial intelligence performs tasks as such as
searching through data and e-mail
e Speech recognition software allows customers to
speak numbers when placing orders over the phone
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Enterpnse Resource
Planning (ERP) Software
e Combines all of a firm’s computerized
functions into a single, integrated software
program that runs off a single database
e This allows various departments to easily
share information and communicate with
each other
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ERP Im plementation Reasons
To integrate financial data by providing one set
of numbers for the company’s finance department, sales department, and individual business units
To standardize manufacturing processes, so that
a firm with multiple business units can save time, increase productivity, and reduce staff
To standardize human resources information
about employees and communicating
information about benefits and services
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Trang 15Computer Systems and
Management Issues
ee =
e Computer Ethics—The analysis of the nature and
social impact of computer technology and the
development of policies for its appropriate use
e Security—Controlling access to and transmission of
data and information contained tn the firm’s
network
Trang 16Reasons for
Fs
e Computer-generated errors are unlike human error
e Computers are able to communicated over the great
distances at low cost
e Computers can store, copy, erase, retrieve, transmit,
and manipulate huge amounts of information quickly
and cheaply
e Computers can depersonalize originators, users, and
subjects of programs and data
e Computers can use data created for one purpose for
another purpose for long periods of time
Trang 18Ten Commandments
—— `S⁄2 forComputer Ethic S (continued)
e Thou shalt not use or copy software for which
you have not paid
Thou shalt not use other people’s computer resources without authorization
e Thou shalt not appropriate other people’s
intellectual output
Thou shalt think about the social consequences
of the program you write
Thou shalt use a computer In ways that show consideration and respect
Trang 19e User names and passwords
e Encryption — use of software that scrambles data
e Firewalls — a combination of hardware and
software that controls access to and transmission of
data and information contained in a network
Trang 20Information Systems
e Information systems combine computers, other
hardware, software, and human resources to
manipulate data into useable information
e Operations information systems:
> Process control systems
> Office automation systems
> Transaction-processing systems
e Kxpert systems
e Neural network systems
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Trang 21Management Infomation Systems
e Management information system (MIS): an
information system that provides information to
managers to use in making decisions
e Types of MIS used by businesses:
> Information reporting systems
> Decision support systems
> Group decision support systems
> Executive information systems
> Human resource information systems
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MIS and Organizational Struc ture
e Flatter management hierarchies
e Horizontal information flows now viable
e Reduction In time to make management decisions
e Reduction in the number of employees needed to
perform many organizational activities
e Elimination of barriers between departments
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MIS and Competitive Advantage
e Improved decision making
e Increased organizational efficiency
e Greater responsiveness to customers:
> Personalized customer service
> Improved product support |
e Knhanced entry to new markets
e Greater ability to enter joint ventures,
partnerships, and strategic alliances
e The addition of e-commerce
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Trang 24Inplementng MIS
e Consider the organization’s principle goals and
information needs
e Evaluate current MIS for accuracy, reliability,
timeliness, and relevance of information
e Create employee support for the change by
showing how it will help employees
e Make the technology user-friendly
e Consider the human element
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Trang 25e Careful training and documentation
e System backup during the transition
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Trang 26Applhlcations: Managementis Everyone’s
Busme ss—for the Manager
e Beware of outsourcing IT - in many cases, it results
in dissatisfaction
e Managers should analyze very carefully the pros
and cons of outsourcing before agreeing to enter an
IT outsourcing relationship
e Be aware of trade-offs between owning the IT
function or giving up control of it to an outside
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Trang 27Applications: Managementis Everyone’s
Busme SS—forManaging Tams
e Groupware soitware supports collaborative efforts
among group members, such as scheduling
meetings, holding meetings, collaborating on
projects, and sharing documents
e With Groupware, teams can be more productive
with less downtime despite conflicting demands
placed on each team member’s work schedule to
work on other tasks
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Trang 28Applications: Managementis Everyone’s
Busine SS— for Indwiduals
e Individuals need constant updating of computer
skills to master upgraded versions of software and
to learn new software
e Cultivate a constructive relationship with the IT
person In your department
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