IVY VIDALLON PRESENTER Using Advanced Information Technology to Increase Performance
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I V Y V I D A L L O N
P R E S E N T E R
Using Advanced InformationTechnology to Increase Performance
Information and the Manager’s Job
Data
Raw, unsummarized, and unanalyzed facts.
Information
Data that are organized in a meaningful fashion
Attributes of Useful Information
Attributes
Quality The accuracy and reliability of available information affects the quality of decisions that managers make using the information.
Timeliness The availability of real-time information that reflects current conditions
Completeness Complete information allows managers to exercise control, achieve coordination, or make an effective decision
Relevance Having information that suits a manager’s particular needs and circumstances assists managers in making better decisions.
Factors Affecting the Usefulness of Information
Figure 18.1
What is Information Technology?
Information Technology
set of methods or techniques for acquiring, organizing, storing, manipulating, and transmitting information
Management Information System
specific form of IT that managers utilize to generate the specific, detailed information they need to perform their roles effectively
What is Information Technology?
Managers need information for three reasons:
1. To make effective decisions
2. To control the activities of the organization
3. To coordinate the activities of the organization
Information and Control
Managers achieve control by:
1. Establishing measurable goals
2. Measuring actual performance
3. Comparing actual performance with goals
4. Evaluating results and taking any corrective action
The Effects of Advancing IT
IT helps create new product opportunities that managers and their organizations can take advantage of
IT creates new and improved products that reduce or destroy demand for older, established products
Computer Networks
Network
Interlinked computers that exchange information.
Servers are powerful computers that relay information to client computers connected on a Local Area Network (LAN).
Types of Management Information Systems
Operating system software
software that tells computer hardware how to run
Applications software
software designed for a specific task or use
Types of Information Systems
Transaction Processing Systems
A management information system designed to handle large volumes of routine, recurring transactions.
Were the first computer-based information systems handling billing, payroll, and supplier payments.
Types of Information Systems
Operations Information Systems
A management information system that gathers, organizes, and summarizes comprehensive data in a form that managers can use in their nonroutine coordinating, controlling, and decision-making tasks.
Can help managers with non-routine decisions such as customer service and productivity.
Types of Information Systems
Executive Support System
A sophisticated version of a decision support system that is designed to meet the needs of top managers.
Group Decision Support System
An executive support system that links top managers so that they can function as a team.
Expert Systems and Artificial Intelligence
Artificial Intelligence
Behavior by a machine that, if performed by a human being, would be called “intelligent”
Already possible to write programs that can solve problems and perform simple tasks
Enterprise Resource Planning Systems
Enterprise Resource Planning Systems
Multi-module application software packages that coordinate the functional activities necessary to move products from the design stage to the final customer stage.
Enterprise Resource Planning Systems
1. Help each individual function improve its functional-level skills
2. Improve integration among all functions so that they work together to build a competitive advantage for the company
Types of Information Systems
E-Commerce Systems
Trade that takes place between companies, and between companies and individual customers, using IT and the Internet
Types of E-Commerce
Figure 18.5
E-Commerce Systems
Business-to-business (B2B)
trade that takes place between companies using IT and the Internet to link and coordinate the value chains of different companies
B2B marketplace
Internet-based trading platform set up to connect buyers and sellers in an industry
E-Commerce Systems
Business-to-customer (B2C)
trade that takes place between a company and individual customers using IT and the Internet
Strategic Alliances, B2B Network Structures, and IT
B2B network structure
A series of global strategic alliances that an organization creates with suppliers, manufacturers, and distributors to produce and market a product.
Flatter Structures and HorizontalInformation Flows
Boundaryless Organization
An organization whose members are linked by computers, faxes, computer-aided design systems, and video teleconferencing and who rarely, if ever, see one another face-to-face.
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