jones global mgt ch18.ppt

8/10/2019 jones global mgt ch18.ppt

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Learning Objectives

1. Differentiate between data and information, and list the

attributes of useful information

2. Describe three reasons why managers must have access to

information to perform their tasks and roles effectively.

3. Describe the computer hardware and software innovations

that have created the IT revolution.

4. Differentiate among seven performance-enhancing kinds of

management information systems.

5. Explain how IT is helping managers build strategic alliances

and network structures to increase efficiency and

effectiveness.

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Information and the Managers Job

Data

Raw, unsummarized,

and unanalyzed facts.

Information

Data that are

organized in a

meaningful fashion

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Attributes of Useful Information

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Attributes

Quality The accuracy and reliability of availableinformation affects the quality of decisionsthat managers make using the information.

Timeliness The availability of real-time informationthat reflects current conditions

Completeness Complete information allows managers toexercise control, achieve coordination, or

make an effective decision

Relevance Having information that suits a managersparticular needs and circumstancesassists managers in making betterdecisions.


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Factors Affecting the Usefulness of

Information

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Figure 18.1


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What is Information Technology?

Information Technology

set of methods or techniques for acquiring,

organizing, storing,

manipulating, andtransmitting

information

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Management Information System

specific form of IT that managers utilize to

generate the specific, detailed information they

need to perform their roles effectively

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Managers need information for three reasons:

1. To make effective decisions

2. To control the activities of the organization3. To coordinate the activities of the

organization

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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 correctiveaction

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Information and Coordination

Coordination problems that managers face in

managing global supply chains are increasing

Managers have adopted sophisticated IT that

helps them coordinate the flow of materials,

semifinished goods, and finished goods

throughout the world

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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

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A Product Life Cycle

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Figure 18.2


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Embryonic stage

Product has yet to gain widespread acceptance

Customers are unsure what a product has to offer

Growth stage

Many consumers are buying the product for the

first time

Demand increases rapidly

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Mature stage

Market peaks because most customers have

already bought the product

Demand is typically replacement demand

Decline stage

Advancing IT leads to the development of a more

advanced product making the old one obsolete

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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).

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A Four-Tier Information System

with Cloud Computing

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Types of Management Information

Systems

Operating systemsoftware

software that tellscomputer hardwarehow to run

Applications software

software designed fora specific task or use

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The Organizational Hierarchy

Traditionally, managers have used the

organizational hierarchy as the main system

for gathering information necessary to make

decisions and coordinate and control activities

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The Organizational Hierarchy

Drawbacks

Can reduce timeliness of information

Reduces quality of information

Tall structure can make for an expensive

information system

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Six Computer-Based Management

Information Systems

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Figure 18.4


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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.

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Operations Information Systems

A management information system that gathers,

organizes, and summarizes comprehensive data in

a form that managers can use in their nonroutinecoordinating, controlling, and decision-making

tasks.

Can help managers with non-routine decisions

such as customer service and productivity.

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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.

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Artificial Intelligence and

Expert Systems

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

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Artificial Intelligence and

Expert Systems

Expert Systems

A management information system that employs

human knowledge, embedded in a computer, to

solve problems that ordinarily require humanexpertise.

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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 finalcustomer stage.

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E i R Pl i


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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

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E-Commerce Systems

Business-to-business (B2B)

trade that takes place between companies usingIT and the Internet to link and coordinate the

value chains of different companies

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E-Commerce Systems

B2B marketplace

Internet-based trading platform set up to connect

buyers and sellers in an industry

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E-Commerce Systems

Business-to-customer

(B2C)

trade that takes place

between a companyand individual

customers using IT and

the Internet

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ExampleAdorama.com

Adorama.comsells cameras and accessories

through their web site as well as a physical

store in New York City

They also provide online training in

photography, lighting and composition

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St t i Alli B2B N t k


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Strategic Alliances, B2B Network

Structures, and IT

Strategic Alliances

An agreement in which managers pool or share

their organizations resources and know-how with

a foreign company, and the two organizationsshare the rewards and risks of starting a new

venture.

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St t i Alli B2B N t k


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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 andmarket a product.

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Fl tt St t d H i t l


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Flatter Structures and Horizontal

Information Flows

Boundaryless Organization

An organization whose members are linked by

computers, faxes, computer-aided design

systems, and video teleconferencing and whorarely, if ever, see one another face-to-face.

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Flatter Str ct res and Hori ontal


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Flatter Structures and Horizontal

Information Flows

Knowledge management system

A company specific virtual information system

that systematizes the knowledge of its employees

and facilitates the sharing and integrating of theirexpertise.

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