Chapter

Twenty Two
Managing Information
and Information
Technology
Slide content created by Charlie Cook, The University of West Alabama
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 Learning Objectives
After studying this chapter, you should be able to:
1. Describe the role and importance of information in the
manager’s job and identify the basic building blocks of
information technology.
2. Discuss the basic factors that determine an
organization’s information technology needs and
describe the basic types of information systems used
by organizations.
3. Discuss how information systems can be managed.
4. Describe how information systems affect organizations.

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 Figure 22.1: Managers as
Information Processors

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 Information and the Manager
• Characteristics of Useful Information
– Accurate
• A valid and reliable reflection of reality.
– Timely
• Information delivered in time for managerial action.
– Complete
• Information that tells a complete story, rather than being
incomplete or distorted.
– Relevant
• Meets the needs and circumstances of the individual
manager.

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 Figure 22.2: Information
Management as Control

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 Figure 22.3: Building Blocks
of a Computer-based
Information System

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 Figure 22.4: Determinants of an
Organization’s Information-
Processing Needs

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 Types of Information Systems
(cont’d)
• Major Systems by Level
– Transaction-processing systems
– Systems for Knowledge Workers and Office
Applications
– Systems for Operations and Data Workers
– Knowledge-Level and Office Systems
– Management Information System (MIS)
– Decision Support System (DSS)
– Executive Support Systems (ESS)
– Artificial Intelligence (AI) and Expert Systems

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 Figure 22.5: A Basic Management
Information System

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 Types of Information Systems
(cont’d)
• The Internet (“Net”)
– A network of networks serving millions of computers
and offering information on business, science, and
government and providing communication flows among
more than 170,000 separate networks worldwide.
• Internet service provider (ISP)
• World Wide Web (WWW)
• Servers and browsers
• Dictionaries and search engines
• Intranets
• Extranets

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 Figure 22.6: Establishing an
Information System

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Managing Information Systems
• Issues in Managing in Information Systems
(IS)
– Integrating information systems
• Developing all at once
• Adopting a standard system
– Using information systems
• Ideal system—simple and nontechnical
– Managing information security
• Firewalls
• Security
• Encryption

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 Table 22.1: Limitations of
Information Systems

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 The Impact of Information
Systems on Organizations
• Leaner Organizations
– Direct communication links broaden the
span of management, foster simpler
organizational structures, and increase
productivity.
• More Flexible Operations
– IS can be used to offer greater variety,
faster delivery cycles, and the mass-
customization of products.

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 The Impact of Information
Systems on Organizations (cont’d)
• Increased Collaboration
– Internally, network systems help in keep
everyone in the organization informed.
– Externally, network systems help build
business-to-business relationships.
• More Flexible Work Sites
– Networks allow workers to be located in
places other that the traditional office and
still participate in the firm’s operations.

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 The Impact of Information
Systems on Organizations (cont’d)
• Improved Management Processes
– Improved information systems now can quickly
furnish information in a convenient, usable format
to any member of the organization.
• Changed Employee Behaviors
– Positive effects
• Improves individual efficiency through the use of a new
technology and the work associated with it.
– Negative effects
• Can lead to isolation of people and is a less personal
form of communication.

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 Key Terms
• data • management information
• information systems (MIS)
• information technology (IT) • decision support systems
(DSS)
• accurate information
• executive support system
• complete information (ESS)
• timely information • artificial intelligence (AI)
• relevant information • Internet
• information management • Internet service provider
• knowledge workers (ISP)
• transaction processing • World Wide Web (WWW)
systems • web browser

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 Key Terms (cont’d)
• intranet
• extranet
• firewall

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