Managers use information systems to process large amounts of data and information to support decision making. An information system consists of inputs, like data entry; processors that organize and analyze the data; outputs such as reports; and storage like databases. There are different types of information systems tailored to various management levels from transaction processing to strategic decision support. While information systems provide benefits like increased efficiency and collaboration, they also have limitations such as high costs and potential for inaccurate information.

1. Slide content created by Joseph B. Mosca, Monmouth University.
Copyright © Houghton Mifflin Company. All rights reserved.
Managing
Information and
Information
Technology
Presented by:
DR RHEA LOWELLA S. FISER,RPsy, RPm, CSIOP
22

2. 22 - 2
Some
information
discarded
Managers As Information Processors
Information data
Some
information
put to
immediate
use
The Manager
•Some information stored for
possible use later.
•Some information combined
to form new information.
Some information passed
on to others

3. 22 - 3
Data Versus Information
• Data:
– Raw figures and
facts reflecting a
single aspect of
reality.
• Information:
– Data presented in a
way or form that has
meaning.

4. 22 - 4
Related Terms
• Information Technology:
– The resources used by an
organization to manage
information that it needs
to carry out its mission.
• Accurate Information:
– Provides a valid and
reliable reflection of
reality.

5. 22 - 5
Characteristics of Useful Information
• Timely information:
– Available in time for appropriate
managerial action.
• Complete information:
– Provides managers with all the information
they need.
• Relevant information:
– Assures managers that the information is
useful to them in their particular
circumstances for their particular needs.

6. 22 - 6
Information
leaving the
organization
Information Management As Control
Information
entering the
organization
Organizational System:
Information used in
the organization
Preliminary control Screening Control Postaction control

7. Copyright © Houghton Mifflin Company. All rights reserved. 22 - 7
Building Blocks of a Computer-Based
Information System
Input Medium
Keyboard, scanner,
other computer,
network
Processor
Central processing
unit to organize,
manipulate, sort, or
calculate data
Output Medium
Printer, video, display,
other computer,
network
Storage
Disk or CD-Rom
Control System
Software or other form of operating system

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Who Represents the Special User Category?
• Knowledge workers:
– Specialists, usually
professionally trained and
certified (engineers,
scientists, information
technology specialists,
psychologists), who rely
on information technology
to design new products or
create new business
processes.

9. 22 - 9
Figure 22.4: Determinants of an
Organization’s Information-Processing Needs

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Major Systems by Level
• Transaction-Processing System:
– TPS, applications of information
processing for basic day-to-day business
transactions.
• Management Information System:
– MIS, supports an organization’s managers
by providing daily reports, schedules,
plans, and budgets.

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Figure 22.5: A Basic Management
Information System

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Systems by Level (cont’d):
• Decision Support System:
– DSS, an interactive system that locates
and presents information needed to
support the decision-making process.
• Executive Support System:
– ESS, a quick-reference, easy-access
application of information systems specially
designed for instant access by upper-level
managers.

13. 22 - 13
Systems by Level (cont’d):
• Artificial Intelligence:
– AI, the construction of
computer systems, both
hardware and software,
to imitate human
behavior; in other words,
systems that perform
physical tasks, use
thought processes, and
learn.

14. 22 - 14
The Internet
• What is the NET?
– A gigantic network of
networks serving
millions of computers
and offering
information on
business, science,
and government and
providing more than
170,000 separate
networks around the
world.

15. 22 - 15
Internet Service Provider (ISP):
• A commercial firm that
maintains a permanent
connection to the Net and
sells temporary
connections to
subscribers.
• World Wide Web:
– WWW, a system with
universally accepted
standards for storing,
retrieving, formatting, and
displaying information.

16. 22 - 16
Can You Define the Following?
• Web browser:
– The software that enables the user
to access information on the web.
• Intranet:
– A communication network similar to
the internet but operating within the
boundaries of a single organization.
• Extranet:
– Network that allows selected
outsiders limited access to an
organization’s information system.

17. 22 - 17
Monitor system
Test system
Develop documentation
Integrate databases,
hardware, and
systems
Develop
database
Determine hardware
needs Determine software
needs
Brief View on Creating Information Systems:
Determine
needs

18. 22 - 18
What Are Used to Protect Against Intrusion?
• FIREWALLS:
– Software and
hardware systems
that allow employees
access to both the
internet and the
company’s internal
computer network
while barring entry
by outsiders.

19. 22 - 19
Limitations of Information Systems
Information systems are
expensive and difficult
to develop and
implement.
Information systems are
not suitable for all
tasks or problems.
Managers sometimes
rely on information
systems too much.
Information provided to managers may or not
be as accurate, timely, complete, or
relevant as it first appears.
Managers may have
unrealistic expectations
of what the information
system can do.
The information system
may be subject to sabotage
computer viruses or
downtime.

20. 22 - 20
The Impact of Information Systems on
Organizations
• Leaner organizations:
– Leading to leaner companies with fewer
employees.
• More flexible operations:
– Can offer customers greater variety and
faster delivery cycles.
• Increased collaboration:
– Among internal unites and outside firms.

21. 22 - 21
Impact of Information Systems (cont’d):
• More flexible work sites:
– Separation of the workplace from company
headquarters is more common.
• Improved management processes:
– Instantaneous information is accessible in
a convenient, useable format.
• Changed employee behavior:
– Information systems usually improve
employee efficiencies.

22. DR RHEA LOWELLA S. FISER, RPSY, RPm, CSIOP
09951100143
rheasantillan@live.com
Thank you