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Information and the Manager’s Job
 Data

Raw, unsummarized, and unanalyzed facts.
 Information

Data that are organized in a meaningful
fashion
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Factors Affecting the Usefulness of
Information
Figure 18.1
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What is Information Technology?
Information Technology – set of
techniques for acquiring,
organizing, storing,
manipulating, and
transmitting
information
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What is Information Technology?
Management Information System –
specific form of IT that managers utilize
to generate the specific, detailed
information they need to perform their
roles effectively
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Information and Control
 Managers
achieve control by:
establishing measurable goals,
measuring actual performance,
compare actual performance with goals,
take any corrective action
 Managers must have information to
achieve control over any organizational
activity
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Information and Coordination
 Coordination
problems that managers
face in managing global supply chains
are increasing
 Managers have adopted sophisticated
IT that helps them coordinate the flow of
materials, semifinished goods, and
finished goods throughout the world
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The Information Technology
Revolution
The Tumbling Price of Information

The cost of computer hardware has
dropped dramatically while the power of
computers has risen sharply.
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The Information Technology
Revolution
Computer Networks

Networking




The exchange of information through a group or network
of interlinked computers
Servers are powerful computers that relay information to
client computers connected on a Local Area Network
(LAN).
Mainframes are large computers processing vast amounts
of information .
The Internet is a world wide network of computers.
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Software Developments
system software – software
that tells computer hardware how to run
 Applications software – software
designed for a specific task or use
 Artificial intelligence – behavior
performed by a machine that, if
performed by a human being, would be
called intelligent
 Operating
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Types of Information Systems
 Transaction

Systems designed to handle large volumes of
routine transactions.

Were the first computer-based information systems
handling billing, payroll, and supplier payments.
 Operations

Processing Systems (TPS)
Information Systems (OIS)
Systems that gather, organize, and summarize
comprehensive data in a form of value to
managers.

Can help managers with non-routine decisions such as
customer service and productivity.
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Types of Information Systems
Decision Support Systems (DSS)

Provide interactive models to help managers make
non-routine decisions.


Executive Support System (ESS)


Analyzes investment potential, new product pricing.
Sophisticated version of a DSS matched a top manager’s
needs.
Group Decision Support System

An executive support system that links top managers so
that they can function as a team.
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Types of Information Systems
Expert Systems and Artificial Intelligence

Employ human knowledge embedded in a
computer to solve problems usually
requiring human expertise.

Uses artificial Intelligence to recognize,
formulate, solve problems, and learn from
experience.
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Types of Information Systems
Enterprise Resource Planning Systems –
multi-module application software
packages that coordinate the functional
activities necessary to move products
from the product design stage to the
final customer stage
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Types of Information Systems
E-Commerce Systems – Trade that takes
place between companies, and
between companies and individual
customers, using IT and
the Internet
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Types of E-Commerce
(B2B) – trade that
takes place between companies using
IT and the Internet to link and
coordinate the value chains of different
companies
 B2B marketplace – Internet-based
trading platform set up to connect
buyers and sellers in an industry
 Business-to-business
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Types of E-Commerce
Business-to-customer
(B2C) – trade that
takes place
between a company
and individual
customers using IT
and the Internet
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How Computer-Based Information Systems
Affect the Organizational Hierarchy
Figure 18.5
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