McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved 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: 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 ¾ McGraw-Hill How the firm’s information systems and information technology are part of management How management information systems are used by managers © 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 zManagement information systems provide access to important information used in many other chapters: ¾Planning process (chapter 5) ¾Decision making (chapter 6) ¾Human resource management (chapter 10) ¾Communication (chapter 15) ắControl (chapter 16) ắOperations management (chapter 17) McGraw-Hill â 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 ắ Relevant ắ Comprehensive McGraw-Hill â 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 McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved 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 ... other chapters: ¾Planning process (chapter 5) ¾Decision making (chapter 6) ¾Human resource management (chapter 10) ¾Communication (chapter 15) ắControl (chapter 16) ắOperations management (chapter. . .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... 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