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Chap01-Managing in the Information Age [Compatibility Mode]-IT Management

Chap01-Managing in the Information Age [Compatibility Mode]-IT Management

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Published by: Win on Jul 13, 2009
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Chapter 1
Managing in the Information Age
The information revolution has beenunderway for close to five decadesImportant information, broadlydisseminated, radicall alters the balance
of power among individuals, institutions,and governmentsTo succeed in this rapidly changingenvironment, managers must remainfluent in new practices and techniques
How Organizations Use Information
Organizational Resources
 –Money –Skilled Employees –Information –Physical Property –Time
The task of managers is to use these resourcesin an optimal way to fulfill an organization’smission, that is, resource management
Information and People
In the information-intensive environment,the creative combination of people andinformation can be a powerful force inSkilled people coupled with advancedinformation technology has revolutionizedcommerce and altered the concept ofmanagement
IT Impacts on Business
Advanced technology redistributesknowledge among all employees andundermines traditional authority that isbased on privileged access to informationRapid, constant, and deep access toinstitutional knowledge will radicallytransform organizations, collapsing levelsof management, and flatteningorganizational hierarchy
Information TechnologyOrganizations
On an organizational chart, IT is generallyclassed as a department like marketing ormanufacturing,within a business, supporting all otherunits in different ways
Functions and IT Support
Product DevelopmentManufacturingDistributionDesign AutomationMaterials LogisticsWarehouse AutomationOrder Entry, Sales Analysis
ServiceFinance and AccountingAdministrationParts LogisticsLedger, Planning, AP, AROffice Systems, PersonnelRecords
Management Tasks
Line Responsibilities –directly related toaccomplishing the responsibilities of theorganization-functions in accomplishing their primarymissionSenior IT managers have a hybrid role,blending both staff and line missions
Managing Information Technology
IT describes an organization’s computingand communications infrastructureIT management includes the tasks of, ,and operations; making technology-relatedinvestments; and recommendingappropriate corporate policy
Evolution of IT Management
1950s to 1960s –automation of routinebusiness data handling1970s –connection of terminals todata to creating knowledge (DecisionSupport Systems)
Evolution of IT Management
1980s –Widespread telecommunicationsand data networking moved computingfrom the mainframe to the desktop– applications extended the boundaries ofthe enterprise. New business models tookhold with e-business and ASPs
Types of Information Systems
Transaction Processing SystemsManagement Information SystemsDecision Support SystemsOffice Automation SystemsExpert Systems
Internet-Based Business Systems
Prior to 1990, IT systems focused onsupporting the value chains within anorganization,value chain management could extendoutside an organization becoming muchmore complex and responsive
Enterprise Resource Planning
With digital value chain data, organizations
 –Improve responsiveness to customer needs –Accomplish just-in-time inventory –Increase operational efficiency –Decrease internal costs –Increase service and product quality
IT Management Challenges
Organizations have high expectations forthe benefit they will derive from technologyand software purchasesthe organizationUnmanaged expectations and ongoingchange test the personnel managementskills of IT managersIT managers must be technologicalleaders and superb generalists
Controls and EnvironmentalFactors
Knowledge based organizations musthave rigorous control mechanisms in placeLoss of control in highly automatedpropagationIntra and extranets linking differentorganizations make effective control evenmore challenging
Competitive Considerations
Firms expect Information Technologymanagers to deliver the tools necessary tocapture and maintain competitiveIT organizations are directly on their firm’scritical path to successIneffective IT management can hinder theperformance of the entire organization
People and Organizations
Information Technology changesorganizationsThese changes are perceived by many as, ,IT managers must develop good peoplemanagement skills and be attuned tothese issues

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