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Chapter 18Chapter 18
©2001 South-Western College Publishing©2001 South-Western College Publishing©2001 South-Western College Publishing©2001 South-Western College Publishing
Pamela S. LewisPamela S. LewisStephen H. GoodmanStephen H. Goodman
Patricia M. FandtPatricia M. Fandt
Slides Prepared bySlides Prepared byBruce R. BarringerBruce R. Barringer
University of Central FloridaUniversity of Central Florida
Pamela S. LewisPamela S. LewisStephen H. GoodmanStephen H. Goodman
Patricia M. FandtPatricia M. Fandt
Slides Prepared bySlides Prepared byBruce R. BarringerBruce R. Barringer
University of Central FloridaUniversity of Central Florida
Information Technology and Control
Information Technology and Control
Transparency 18-2Transparency 18-2© 2001 South-Western Publishing© 2001 South-Western Publishing
Learning ObjectivesSlide 1 of 3
Learning ObjectivesSlide 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.
Transparency 18-3Transparency 18-3© 2001 South-Western Publishing© 2001 South-Western Publishing
Learning ObjectivesSlide 2 of 3
Learning ObjectivesSlide 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.
Transparency 18-4Transparency 18-4© 2001 South-Western Publishing© 2001 South-Western Publishing
Learning ObjectivesSlide 3 of 3
Learning ObjectivesSlide 3 of 3
8.Discuss the impact of information technology on the organization.
9.Explain the limitations of information technology.
Transparency 18-5Transparency 18-5© 2001 South-Western Publishing© 2001 South-Western Publishing
Purpose of Information Technology
Purpose of Information Technology
To monitor, process, and disseminate information to assist in managing, decision making, and controlling the organization.
Transparency 18-6Transparency 18-6© 2001 South-Western Publishing© 2001 South-Western Publishing
Information Versus DataInformation Versus Data
Data Information
The result of the process of
transforming data into meaningful facts
useful for a specific purpose.
Raw facts or details that represent some
type of transaction or activity within an
organization.
Transparency 18-7Transparency 18-7© 2001 South-Western Publishing© 2001 South-Western Publishing
Evaluating Information Slide 1 of 3
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).
Transparency 18-8Transparency 18-8© 2001 South-Western Publishing© 2001 South-Western Publishing
Evaluating Information Slide 2 of 3
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.
Transparency 18-9Transparency 18-9© 2001 South-Western Publishing© 2001 South-Western Publishing
Evaluating Information Slide 3 of 3
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.
Transparency 18-10Transparency 18-10© 2001 South-Western Publishing© 2001 South-Western Publishing
Characteristics of Useful Information
Slide 1 of 3
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.
Transparency 18-11Transparency 18-11© 2001 South-Western Publishing© 2001 South-Western Publishing
Characteristics of Useful Information
Slide 2 of 3
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.
Transparency 18-12Transparency 18-12© 2001 South-Western Publishing© 2001 South-Western Publishing
Characteristics of Useful Information
Slide 3 of 3
Characteristics of Useful Information
Slide 3 of 3
DataData
processingtransformation
Dataprocessing
transformationInformation
- Quality
- Timeliness
- Completeness
Transparency 18-13Transparency 18-13© 2001 South-Western Publishing© 2001 South-Western Publishing
Information Systems for Management
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
Transparency 18-14Transparency 18-14© 2001 South-Western Publishing© 2001 South-Western Publishing
Information System ComponentsInformation System Components
Computer-based information system
Components of general information
system
Inputs
Processing
Outputs
Feedback
Control
Additional components
Hardware
Software
Database
Transparency 18-15Transparency 18-15© 2001 South-Western Publishing© 2001 South-Western Publishing
Steps in the Development of High-Quality MIS
Slide 1 of 3
Steps in the Development of High-Quality 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.
Transparency 18-16Transparency 18-16© 2001 South-Western Publishing© 2001 South-Western Publishing
Steps in the Development of High-Quality MIS
Slide 2 of 3
Steps in the Development of High-Quality 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.
Transparency 18-17Transparency 18-17© 2001 South-Western Publishing© 2001 South-Western Publishing
Steps in the Development of High-Quality MIS
Slide 3 of 3
Steps in the Development of High-Quality 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.
Transparency 18-18Transparency 18-18© 2001 South-Western Publishing© 2001 South-Western Publishing
Systems Development Life CycleSystems Development Life Cycle
Systems investigation
Systems analysis
Systems design
Systems implementation
Systems maintenance
Information systemlife and
evolution
Transparency 18-19Transparency 18-19© 2001 South-Western Publishing© 2001 South-Western Publishing
Pitfalls in System Design Slide 1 of 3
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.
Transparency 18-20Transparency 18-20© 2001 South-Western Publishing© 2001 South-Western Publishing
Pitfalls in System Design Slide 2 of 3
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.
Transparency 18-21Transparency 18-21© 2001 South-Western Publishing© 2001 South-Western Publishing
Pitfalls in System Design Slide 3 of 3
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.
Transparency 18-22Transparency 18-22© 2001 South-Western Publishing© 2001 South-Western Publishing
• 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.
Applications of Computer-Based Information Systems
Applications of Computer-Based Information Systems
Transparency 18-23Transparency 18-23© 2001 South-Western Publishing© 2001 South-Western Publishing
Decision Support System (DSS)Decision Support System (DSS)
Interactive computer work
station
DSS- Models
- Software- Database
User
Firmdatabase
Transparency 18-24Transparency 18-24© 2001 South-Western Publishing© 2001 South-Western Publishing
Telecommunications Slide 1 of 3
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.
Transparency 18-25Transparency 18-25© 2001 South-Western Publishing© 2001 South-Western Publishing
Telecommunications Slide 2 of 3
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.
Transparency 18-26Transparency 18-26© 2001 South-Western Publishing© 2001 South-Western Publishing
Telecommunications Slide 3 of 3
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.
Transparency 18-27Transparency 18-27© 2001 South-Western Publishing© 2001 South-Western Publishing
TelecommutingTelecommuting
• Telecommuting– The practice of working at a remote site by
using a computer linked to a central office or other employment location.
Transparency 18-28Transparency 18-28© 2001 South-Western Publishing© 2001 South-Western Publishing
Electronic Mail and Electronic Commerce (E-Commerce)
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.
Transparency 18-29Transparency 18-29© 2001 South-Western Publishing© 2001 South-Western Publishing
Artificial IntelligenceArtificial 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.
Transparency 18-30Transparency 18-30© 2001 South-Western Publishing© 2001 South-Western Publishing
Office AutomationOffice 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.
Transparency 18-31Transparency 18-31© 2001 South-Western Publishing© 2001 South-Western Publishing
Components of Office Automation
Slide 1 of 3
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
Transparency 18-32Transparency 18-32© 2001 South-Western Publishing© 2001 South-Western Publishing
Components of Office Automation
Slide 2 of 3
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
Transparency 18-33Transparency 18-33© 2001 South-Western Publishing© 2001 South-Western Publishing
Components of Office Automation
Slide 3 of 3
Components of Office Automation
Slide 3 of 3
• Office Management Systems– Electronic office tools– Electronic calendar
Transparency 18-34Transparency 18-34© 2001 South-Western Publishing© 2001 South-Western Publishing
Guidelines for Successful Managers of the Future
Slide 1 of 2
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 decision-making process.
Transparency 18-35Transparency 18-35© 2001 South-Western Publishing© 2001 South-Western Publishing
Guidelines for Successful Managers of the Future
Slide 2 of 2
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 computer-based information systems.