Download Ch18

Chapter 18
Information Technology and Control
Pamela S. Lewis
Stephen H. Goodman
Patricia M. Fandt
Slides Prepared by
Bruce R. Barringer
University of Central Florida
©2001 South-Western College Publishing
Learning Objectives
Slide 1 of 3
1.Explain the differences between data and
information.
2.Describe how cost-benefit analysis can be
applied to the process of collecting and
manipulating data.
3.Discuss the characteristics of useful
information.
4.Describe the various components in an
information system.
© 2001 South-Western Publishing
Transparency 18-2
Learning Objectives
Slide 2 of 3
5.Illustrate the steps in the development of an
information system.
6.Explain the various roles of information
technology in organizations.
7.Describe a variety of types of technology
that are changing the way we work.
© 2001 South-Western Publishing
Transparency 18-3
Learning Objectives
Slide 3 of 3
8.Discuss the impact of information
technology on the organization.
9.Explain the limitations of information
technology.
© 2001 South-Western Publishing
Transparency 18-4
Purpose of Information Technology
To monitor, process, and disseminate
information to assist in managing, decision
making, and controlling the organization.
© 2001 South-Western Publishing
Transparency 18-5
Information Versus Data
Data
Raw facts or details
that represent some
type of transaction or
activity within an
organization.
© 2001 South-Western Publishing
Information
The result of the
process of
transforming data into
meaningful facts useful
for a specific purpose.
Transparency 18-6
Evaluating Information
Slide 1 of 3
• Cost-Benefit Analysis
– The process of examining both the costs and the
potential benefits of some endeavor to
determine whether it will pay off.
– The opportunity presented by the collection,
analysis, and use of data within an organization
has both a positive side (benefits) and a
negative side (costs).
© 2001 South-Western Publishing
Transparency 18-7
Evaluating Information
Slide 2 of 3
• Cost-Benefit Analysis (cont.)
– Tangible costs
• Costs that can be accurately predicted and quantified, due
to the relative certainty associated with their occurrence.
• Example: costs of hardware and software associated with
data collection.
– Intangible costs
• Costs that are difficult to quantify, either because of the
difficulty in precisely anticipating outcomes or the
impossibility of predicting ultimate consequences.
• Example: Work disruption due to changes in procedures.
© 2001 South-Western Publishing
Transparency 18-8
Evaluating Information
Slide 3 of 3
• Cost-Benefit Analysis (cont.)
– Tangible benefits
• Include increases in sales, reduction in inventory
costs, and identifiable improvements in worker
productivity.
– Intangible benefits
• Include improvements in information availability,
better employee morale, and improved customer
service.
© 2001 South-Western Publishing
Transparency 18-9
Characteristics of Useful Information
Slide 1 of 3
• Quality
– High-quality information is accurate, clear,
orderly, and available in a form that assists the
decision maker.
• Timeliness
– Timely information has several ingredients:
time sensitivity, currency, and frequency.
© 2001 South-Western Publishing
Transparency 18-10
Characteristics of Useful Information
Slide 2 of 3
• Completeness
– Information is complete when it is sufficient to
allow the decision maker to make an accurate
assessment of the situation and to arrive at a
suitable decision.
– Conciseness and detail are two additional
aspects of completeness.
© 2001 South-Western Publishing
Transparency 18-11
Characteristics of Useful Information
Slide 3 of 3
Data
Data
processing
transformation
© 2001 South-Western Publishing
Information
- Quality
- Timeliness
- Completeness
Transparency 18-12
Information Systems for
Management
• Information systems provide managers a
systematic approach to collecting,
manipulating, maintaining, and distributing
information throughout an organization.
• Information systems have a long history.
Early Teletype Machine
© 2001 South-Western Publishing
Transparency 18-13
Information System Components
Computer-based information system
Components of
general information
system
Additional
components
Inputs
Processing
Outputs
Feedback
Control
Hardware
© 2001 South-Western Publishing
Software
Database
Transparency 18-14
Steps in the Development of HighQuality MIS
Slide 1 of 3
• Investigation
– Organization determines whether a problem or
opportunity exists that can be addressed by an
information system.
• Systems Analysis
– Develop the functional requirements for the
information system.
© 2001 South-Western Publishing
Transparency 18-15
Steps in the Development of HighQuality MIS
Slide 2 of 3
• Systems Design
– System's technological capabilities are
addressed.
• Systems Implementation
– The hardware and software are developed or
acquired, and the new information system is put
together.
© 2001 South-Western Publishing
Transparency 18-16
Steps in the Development of HighQuality MIS
Slide 3 of 3
• Systems Maintenance
– Like any piece of equipment, an information
system will need to be maintained to remain
effective.
– Systems development life cycle (SDLC)
• Recognition that investigating, analyzing,
designing, implementing, and maintaining an
information system is an ongoing process.
© 2001 South-Western Publishing
Transparency 18-17
Systems Development Life Cycle
Systems investigation
Systems analysis
Systems design
Information system
life and
evolution
Systems implementation
Systems maintenance
© 2001 South-Western Publishing
Transparency 18-18
Pitfalls in System Design
Slide 1 of 3
• Feasibility
– Organizational feasibility
• Refers to how well the proposed system supports the
strategic objectives of the organization.
– Economic feasibility
• Focuses on whether the expected benefits of an
information system will be able to cover the
anticipated costs.
© 2001 South-Western Publishing
Transparency 18-19
Pitfalls in System Design
Slide 2 of 3
• Feasibility
– Technical feasibility
• Refers to the capability of the hardware and
software of the proposed information system to
provide the decision makers in the organization with
the needed information.
– Operational feasibility
• Refers to the willingness and ability of all concerned
parties to operate and support the information
system as it is proposed and implemented.
© 2001 South-Western Publishing
Transparency 18-20
Pitfalls in System Design
Slide 3 of 3
• Ability to Meet Needs of Diverse Users
– An additional concern in the system design
process is whether the system will ultimately
meet the users’ needs.
• User Expectations
– Finally, in many instances the expectations of
the users and the organization are too high.
© 2001 South-Western Publishing
Transparency 18-21
Applications of Computer-Based
Information Systems
• Management Information Systems (MIS)
– Focuses on the routine, structured, regular
reporting and information requirements of the
organization.
• Decision Support Systems (DSS)
– Computer-based information system that uses
imbedded analytical models to assist decision
makers in analyzing and solving semistructured
problems.
© 2001 South-Western Publishing
Transparency 18-22
Decision Support System (DSS)
User
Interactive
computer work
station
© 2001 South-Western Publishing
DSS
- Models
- Software
- Database
Firm
database
Transparency 18-23
Telecommunications
Slide 1 of 3
• The transmission of information in any form
from one location to another using
electronic or optical means.
– Wide-area network (WAN)
• Information system that extends over a broad
geographic area, such as cities, regions,
countries, or the world.
© 2001 South-Western Publishing
Transparency 18-24
Telecommunications
Slide 2 of 3
• Transmission of information from one
location to another (cont.)
– Local-area network (LAN)
• Information system that connects users in a
small area, such as a building, an office, or a
manufacturing plant.
© 2001 South-Western Publishing
Transparency 18-25
Telecommunications
Slide 3 of 3
• Electronic Data Interchange (EDI)
– Electronic transmission of transaction data
using telecommunications.
• Electronic Funds Transfer (EFT)
– Electronic manipulation of financial
transactions.
© 2001 South-Western Publishing
Transparency 18-26
Telecommuting
• Telecommuting
– The practice of working at a remote site by
using a computer linked to a central office or
other employment location.
© 2001 South-Western Publishing
Transparency 18-27
Electronic Mail and Electronic
Commerce (E-Commerce)
• E-mail
– A computer-based system that allows
individuals to exchange and store messages
through computerized text-processing and
communication networks.
• Electronic Commerce
– The process of buying and selling goods and
services electronically with computerized
business transactions.
© 2001 South-Western Publishing
Transparency 18-28
Artificial Intelligence
• Artificial Intelligence (AI)
– Refers to the process of developing computers
systems that can behave intelligently.
• Expert system - A computer-based system that
contains and can use knowledge about a specific,
relatively narrow, complex application.
• Robotics - Use of machines with humanlike
characteristics, such as dexterity, movement, vision,
and strength.
© 2001 South-Western Publishing
Transparency 18-29
Office Automation
• Systems for office automation are typically
computer-based information systems that
assist the organization in the processing,
storage, collection, and transmission of
electronic documents and messages among
individuals, work groups, and organizations.
© 2001 South-Western Publishing
Transparency 18-30
Components of Office Automation
Slide 1 of 3
• Electronic Work and Training
– Telecommuting
– Multimedia
• Electronic Documents and Image Processing
Systems
– Word processing
– Desktop publishing
– Document management
© 2001 South-Western Publishing
Transparency 18-31
Components of Office Automation
Slide 2 of 3
• Electronic Communications
– E-mail
– Voice mail
– Fax
• Electronic Meeting Systems
– Electronic meeting management systems
– Collaborative work systems
– Teleconferencing
© 2001 South-Western Publishing
Transparency 18-32
Components of Office Automation
Slide 3 of 3
• Office Management Systems
– Electronic office tools
– Electronic calendar
© 2001 South-Western Publishing
Transparency 18-33
Guidelines for Successful Managers
of the Future
Slide 1 of 2
• Understand the importance of quality
information that is obtained in a timely
fashion.
• Employ information systems capable of
providing quality information that is both
timely and complete.
• Are able to use that information to their
advantage in the organizational decisionmaking process.
© 2001 South-Western Publishing
Transparency 18-34
Guidelines for Successful Managers
of the Future
Slide 2 of 2
• Are well versed in the latest technological
innovations for information gathering,
processing, and disseminating.
• Are aware of the impact of information
technology on management efficiency,
organizational social relationships, and
organizational structure.
• Are aware of the limitations of computerbased information systems.
© 2001 South-Western Publishing
Transparency 18-35