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McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
18
Chapter
Managing Information Systems
Managing Information Systems
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
After reading this chapter, you should be able to:
z
Understand the difference between data and information,
and how firms use each to achieve organizational goals.
z
Integrate the components of a firm’s information
technology.
z
Compare different types of networks, including local area
networks, intranets, extranets, and the Internet.
z
Understand the role of software and how it changes business
operations.
z
Discuss the ethical issues involved with the use of computer
technology.
z
Understand how productivity, efficiency, and
responsiveness to customers can be improved with
information technology.
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Two Perspectives
z
This chapter looks at information from


two perspectives:
¾
How the firm’s information systems and information
technology are part of management.
¾
How management information systems are used by
managers.
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Management Skills for Information
Systems Management
z
Analytical Skills—Managers need to be able to
gather, synthesize, and compare data about their firms
and about the options available to them.
z
Organizational Skills—Managers need to be able to
make sense of information by organizing data to
facilitate analysis and comparison.
z
Flexibility and Innovation Skills—Managers must be
able to be flexible in adapting standard business
practices to new information technologies.
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Information Related to MIS
z
Management information systems provide
access to important information used in
many other chapters:
¾
Planning process (chapter 5)

¾
Decision making (chapter 6)
¾
Human resource management (chapter 10)
¾
Communication (chapter 15)
¾
Control (chapter 16)
¾
Operations management (chapter 17)
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Data and Information
z
Data—raw facts, such as the number of items sold
or the number of hours worked in a department.
z
Information—data that have been gathered and
converted into a meaningful context.
z
Useful information is:
¾
High quality
¾
Timely
¾
Relevant
¾
Comprehensive
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Data and Information

(continued)
z
Databases—computer programs that assign
multiple characteristics to data and allow users to
sort the data by characteristic.
z
Data warehouses—massive databases that contain
almost all of the information about a firm’s
operations.
z
Data mining—the process of determining the
relevant factors in the accumulated data to extract
the data that are important to the user.
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Information Technology
z
Technology is the means of transforming inputs
into products.
z
Technology has improved operations management,
including productivity, efficiency, and customer
responsiveness.
z
A firm’s information technology may incorporate
its operations technology.
z
Six Functions of Information Technology:
¾
Captures data, Transmits data, Stores information, Retrieves
information, Manipulates information, Displays information

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill
Equipment
z
Local area networks (LAN) link computers in a
firm so users can share information
z
Servers store information for users linked to them
z
Wireless equipment—computers no longer require
a physical connection, instead satellites or central
locations create links
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Computer Networks
z
LAN
z
The Internet is a network of networks. It provides:
¾
E-mail
¾
Telnet connections with computers
¾
File transfer protocols (FTP) to move files
¾
World Wide Web provides access to protocols for text, documents,
and images
z
Extranets (wide area networks) link a company's employees,
suppliers, customers, and other key business partners
z

Intranets are internal networks that are private or
semiprivate, access is limited to a firm's employees or
certain employees
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill

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