Marketing Manager Course - Chapter 18
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Chapter
18
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:
Understand the difference between data and information,
and how firms use each to achieve organizational goals.
Integrate the components of a firm’s information
technology.
Compare different types of networks, including local area
networks, intranets, extranets, and the Internet.
Understand the role of software and how it changes business
operations.
Discuss the ethical issues involved with the use of computer
technology.
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
This chapter looks at information from
two perspectives:
How the firm’s information systems and information
technology are part of management.
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
Analytical Skills—Managers need to be able to
gather, synthesize, and compare data about their firms
and about the options available to them.
Organizational Skills—Managers need to be able to
make sense of information by organizing data to
facilitate analysis and comparison.
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
Management information systems provide
access to important information used in
many other chapters:
Planning process (chapter 5)
Decision making (chapter 6)
Human resource management (chapter 10)
Communication (chapter 15)
Control (chapter 16)
Operations management (chapter 17)
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Data and Information
Data—raw facts, such as the number of items sold
or the number of hours worked in a department.
Information—data that have been gathered and
converted into a meaningful context.
Useful information is:
High quality
Timely
Relevant
Comprehensive
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Data and Information (continued)
Databases—computer programs that assign
multiple characteristics to data and allow users to
sort the data by characteristic.
Data warehouses—massive databases that contain
almost all of the information about a firm’s
operations.
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
Technology is the means of transforming inputs
into products.
Technology has improved operations management,
including productivity, efficiency, and customer
responsiveness.
A firm’s information technology may incorporate
its operations technology.
Six Functions of Information Technology:
Captures data, Transmits data, Stores information, Retrieves
information, Manipulates information, Displays information
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Equipment
Local area networks (LAN) link computers in a
firm so users can share information
Servers store information for users linked to them
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
LAN
The Internet is a network of networks. It provides:
E-mail
Telnet connections with computers
File transfer protocols (FTP) to move files
World Wide Web provides access to protocols for text, documents,
and images
Extranets (wide area networks) link a company's employees,
suppliers, customers, and other key business partners
Intranets are internal networks that are private or
semiprivate, access is limited to a firm's employees or
certain employees
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Types of Software
Operating system software tells the computer
hardware how to run
Applications software is developed for a specific
task
Artificial intelligence performs tasks as such as
searching through data and e-mail
Speech recognition software allows customers to
speak numbers when placing orders over the phone
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Enterprise Resource
Planning (ERP) Software
Combines all of a firm’s computerized
functions into a single, integrated software
program that runs off a single database.
This allows various departments to easily
share information and communicate with
each other.
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
ERP Implementation 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
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Computer Systems and
Management Issues
Computer Ethics—The analysis of the nature and
social impact of computer technology and the
development of policies for its appropriate use.
Security—Controlling access to and transmission of
data and information contained in the firm’s
network.
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Reasons for
Computer Ethics
Computer-generated errors are unlike human error.
Computers are able to communicated over the great
distances at low cost.
Computers can store, copy, erase, retrieve, transmit,
and manipulate huge amounts of information quickly
and cheaply.
Computers can depersonalize originators, users, and
subjects of programs and data.
Computers can use data created for one purpose for
another purpose for long periods of time.
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Ten Commandments
for Computer Ethics
Thou shalt not use a computer to harm other
people.
Thou shalt not interfere with other people’s
computer work.
Thou shalt not snoop around in other people’s
files.
Thou shalt not use a computer to steal.
Thou shalt not use a computer to bear false
witness.
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Ten Commandments
for Computer Ethics (continued)
Thou shalt not use or copy software for which
you have not paid.
Thou shalt not use other people’s computer
resources without authorization.
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.
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Ways to Implement Security
User names and passwords
Encryption – use of software that scrambles data
Firewalls – a combination of hardware and
software that controls access to and transmission of
data and information contained in a network
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Information Systems
Information systems combine computers, other
hardware, software, and human resources to
manipulate data into useable information.
Operations information systems:
Process control systems
Office automation systems
Transaction-processing systems
Expert systems
Neural network systems
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.