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Information and the Manager

© uata: raw facts such as the number of customers.
© Information: data arranged in a meaningful fashion.
Good information possesses these attributes:

 
  ! measures information accuracy
and reliability.
! information is needed when managerial
action is taken.
a Real Time Information: reflects the current condition.

 ! manager has the information to act.
x"! information matches the managers specific
needs at hand.
a Irrelevant information does not apply
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Information Attributes
Figure 17.2

$
 

x" %  


 


x "

 
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Information Systems & Technology

a Information SystemÀ acquires, organizes, stores,
manipulates and transmits information.
A  
 
  is the plan and
design of an Information System to provide managers
with information.
a an be paper or computer-based.

 
 

! is the means for acquiring,
organizing, storing, manipulating, and transmitting
information .
a Information technology power has increased rapidly.

 

! managing has to do with
making decisions.
a Good Information allows effective decision making.
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Ôsing Information
a Information and controlÀ

 allows managers to
regulate the efficiency and effectiveness of the
organization.
ºffective control requires good information.
a Information technology in the form of computers allows
managers quick access to information.

 


 
! managers must
coordinate departmental actions to achieve goals.
a Information Systems provide information on suppliers,
production schedules, and orders to allow coordination.
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Information Technology Revolution

a Information Technology began with early computers.
a omputers are called hardware and use digital 1¶s and
0¶s to represent data.
Modern computers use microprocessors such as the
Pentium to access information.
a omputer cost has dropped dramatically while the power
of computers has risen.
omputers cost less and do more than ever before.
onnecting one computer to another is also much easier
and cheaper.
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Price Performance Ratio of omputers

Figure 17.3

$400k

$300k
ost per MIP
$200k

$100k

$3k
1980 1984 1988 1994
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omputer ommunications
a -ireless communicationsÀ connects managers and
computers together without wires.
a ellular has grown rapidly to over 20 million users.
a Wireless modems connect one computer to another.
a [etworksÀ share information between computers.
"
 : powerful computer that relays
information to client computers.
a Servers and other computers are connected on a Local
Area Network or LAN
 ! large computers processing vast amounts
of information .
  ! a world wide network of computers.
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3 Tier Information System

Figure 17.4
"
"  
$*

+
,- "
 
,

 
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Software uevelopments
a D erating system softwareÀ tells the computer how to run
itself.
a ’ lications softwareÀ provide for functions such as
word processing, spreadsheets, and graphics.
The new software provides far better access to
information for managers.
a ’rtificial IntelligenceÀ behavior by a machine that can be
called intelligent.
omputers evaluate problems & act on simple tasks.
a S eech RecognitionÀ allow a computer to hear and act on
spoken commands.
Powerful programs are still being developed.
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Types of Information Systems

a Transaction Processing Systems (TPS): designed
to handle large volumes of routine transactions.
The first 
 
*
 
 .
a ·illing, payroll, supplier payments are examples.
a D erations Information Systems (DIS): gathers
comprehensive data, organizes it and summarizes it
in a form valuable to managers.
an help managers with non-routine decisions
such as customer service and productivity.
a Provides sales, inventory & performance oriented
data.
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Types of Information Systems

a uecision Su ort Systems (uSS): provides
interactive models to help managers make better
decisions.
ºxcellent for unusual, 


 decisions
a Analyzes investment potential, new product pricing.
a Often used by middle and upper managers.
a º ecutive Su ort System (ºSS): sophisticated
version of a uSS to match top manager¶s needs.
a ocus on user friendly features.
a º ert SystemsÀ employees human knowledge
captured in a computer to solve problems usually
requiring human insight.
Ôse ’    to recognize,
formulate, solve problems, and learn from
experience.
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Types of Information Systems

Figure 17.5

 
 / 
 
 01 

 
 
 
   
     


 2




 

- -
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Information Systems Impacts

a Information Systems have provided managers with better
information, enabling better decision making.
ºffective Information Systems can be a source of
competitive advantage.
a omputer-based information systems are associated with
decentralization of managerial decision making.
  /3 
! information systems
reduce the need for the hierarchy to control the firm.
Managers control and coordinate using the system, not
workers.
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Information Systems Impacts

a ½orizontal Information FlowsÀ Information networks

can bridge functional departments.
Allow information to flow horizontally between
departments.
an lead to much higher productivity, quality, and
innovation.
a üirtual roductsÀ firms can use their information system
to custom tailor goods and services to each customer.
Systems can allow this at no increase in cost.
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Information Systems Impact on
Figure 17.6
Organizational Hierarchy

·efore ’fter
      *

 



  

 
 
 

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·arriers to Information Systems

a Technological factorsÀ consistent standards for systems
do not exist.
Makers of hardware use different standards.
a Makes it hard to share information between systems.
a Resistance by IndividualsÀ many managers do not use
the system fully.
Some managers are afraid of technology or do not
understand it.
a Political ResistanceÀ the information system changes the
way information flows in the firm
Some managers feel threatened by it.
Managers may think they will be laid-off.
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Limitations to Information Systems

a ross of the human element: information systems cannot
present all kinds of information accurately.
-
 
4 which is rich in meaning and not
quantifiable, is best suited to human analysis.
a ºxample: employee evaluations need face-to-face
communication to convey all information.
a uifficult installationsÀ Information systems can be hard
to develop.
To avoid problems:
a list major organization goals.
a build support for the system with workers.
a create formal training programs.
a emphasize that face-to-face contact is important.