chapter 18 ©2001 south-western college publishing pamela s. lewis stephen h. goodman patricia m....

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


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.




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.




8.Discuss the impact of information technology on the organization.

9.Explain the limitations of information technology.


Purpose of Information Technology

Purpose of Information Technology

To monitor, process, and disseminate information to assist in managing, decision making, and controlling the organization.


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.


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).




• 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.




• 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.


Characteristics of Useful Information

Slide 1 of 3


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.



Slide 2 of 3


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.



Slide 3 of 3


Slide 3 of 3

DataData

processingtransformation

Dataprocessing

transformationInformation

- Quality

- Timeliness

- Completeness


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


Information System ComponentsInformation System Components

Computer-based information system

Components of general information

system

Inputs

Processing

Outputs

Feedback

Control

Additional components

Hardware

Software

Database


Steps in the Development of High-Quality MIS

Slide 1 of 3


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.



Slide 2 of 3


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.



Slide 3 of 3


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.


Systems Development Life CycleSystems Development Life Cycle

Systems investigation

Systems analysis

Systems design

Systems implementation

Systems maintenance

Information systemlife and

evolution


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.




• 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.




• 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.


• 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


Decision Support System (DSS)Decision Support System (DSS)

Interactive computer work

station

DSS- Models

- Software- Database

User

Firmdatabase


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.




• 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.




• Electronic Data Interchange (EDI)– Electronic transmission of transaction data

using telecommunications.

• Electronic Funds Transfer (EFT)– Electronic manipulation of financial

transactions.


TelecommutingTelecommuting

• Telecommuting– The practice of working at a remote site by

using a computer linked to a central office or other employment location.


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.


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.


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.


Components of Office Automation

Slide 1 of 3


Slide 1 of 3

• Electronic Work and Training– Telecommuting– Multimedia

• Electronic Documents and Image Processing Systems– Word processing– Desktop publishing– Document management



Slide 2 of 3


Slide 2 of 3

• Electronic Communications– E-mail– Voice mail– Fax

• Electronic Meeting Systems– Electronic meeting management systems– Collaborative work systems– Teleconferencing



Slide 3 of 3


Slide 3 of 3

• Office Management Systems– Electronic office tools– Electronic calendar


Guidelines for Successful Managers of the Future

Slide 1 of 2


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.



Slide 2 of 2


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.