1. © Prentice Hall, 2005 1 - 1

2. © Prentice Hall, 2005 1 - 2ObjectivesObjectives 1.An understanding of the relationship between data and information 2.Insights into the main factors that influence the value of information 3.Knowledge of some potential steps for evaluating information 4.An understanding of the importance of an information system (IS) to an organization 5.A feasible strategy for establishing an IS 6.Information about what a management decision support system is and how it operates 7.An appreciation for the role of networks like the Internet in handling information 8.Insights regarding how to manage an IS effectively

3. © Prentice Hall, 2005 1 - 3 Essentials of Information Factors Influencing the Value of Information Information Appropriateness 1. Operational control 2. Management control 3. Strategic planning Information Quality Information Timeliness Information Quantity Evaluating Information Identifying and Evaluating Data Evaluating the Cost of Data

4. © Prentice Hall, 2005 1 - 4 Essentials of Information

5. © Prentice Hall, 2005 1 - 5 Essentials of Information

6. © Prentice Hall, 2005 1 - 6 Information Technology (IT) Technology Consists of any type of equipment or process Use in the performance of their work Information technology (IT) Computers and telecommunication devices Use information in the performance of work

7. © Prentice Hall, 2005 1 - 7 The Information System (IS) Describing the IS Operating the IS To determine management information needs analyze: 1. Decision areas in which management makes decisions 2. Specific decisions within these decision areas 3. Alternatives that must be evaluated Different Managers Need Different Kinds of Information

8. © Prentice Hall, 2005 1 - 8 The Information System (IS)

9. © Prentice Hall, 2005 1 - 9 The Information System (IS)

10. © Prentice Hall, 2005 1 - 10 The Information System (IS) Establishing an IS Planning for the IS Designing the IS Analyzing Managers’ Decisions Designing an IS: 1. Defining various decisions 2. Determining the types of existing management policies 3. Pinpointing the types of data needed to make decisions 4. Establishing a mechanism for gathering and processing data Implementing the IS Enlisting Management Support

11. © Prentice Hall, 2005 1 - 11 The Information System (IS)

12. © Prentice Hall, 2005 1 - 12 The Information System (IS) Establishing an IS (continued) Improving the IS Symptoms of an Inadequate IS 1. Operational 2. Psychological 3. Report content Answering questions helps IS managers determine weaknesses: 1. Where and how do managers get information? 2. Can managers make better use of their contacts to get information? 3. In what areas is managers’ knowledge weakest, and how can managers be given information to minimize these weaknesses? 4. Do managers tend to act before receiving information? 5. Do managers wait so long for information that opportunities pass them by and the organization becomes bottlenecked?

13. © Prentice Hall, 2005 1 - 13 The Information System (IS)

14. © Prentice Hall, 2005 1 - 14 The Information System (IS) Establishing an IS (continued) Improving the IS (continued) Typical Improvements to an IS 1. Building cooperation among IS personnel and line managers 2. Constantly stressing that IS personnel should accomplish the IS purpose 3. Holding both line managers and IS personnel accountable for IS activities 4. Operating an IS in a “people-conscious” manner

15. © Prentice Hall, 2005 1 - 15 The Information System (IS) Managing Information Systems Managing User Satisfaction Determine degree of user satisfaction with the IS by: (1) the quality of the IS (2) information quality. Managing the IS Workforce Managing IS Security International Information Security Foundation Generally Accepted System Security Principles (GASSP)

16. © Prentice Hall, 2005 1 - 16 The Information System (IS)

17. © Prentice Hall, 2005 1 - 17 The Information System (IS)

18. © Prentice Hall, 2005 1 - 18 The Information System (IS)

19. © Prentice Hall, 2005 1 - 19 The Management Decision Support System (MDSS) MDSS is typically characterized by: 1. Corporate databases 2. A set of quantitative tools stored in a model base 3. A dialogue capability

20. © Prentice Hall, 2005 1 - 20 The Management Decision Support System (MDSS)

21. © Prentice Hall, 2005 1 - 21 Computer Networks The Local Area Network Local area network (LAN) The Internet The World Wide Web A properly designed and used Web site helps reach goals by: Marketing products more effectively Enhancing the quality of recruits to the organization Enhancing product quality Communicating globally Encouraging creativity in organization members E-Mail Intranets

22. © Prentice Hall, 2005 1 - 22 Computer Networks

23. © Prentice Hall, 2005 1 - 23 Computer Networks

24. © Prentice Hall, 2005 1 - 24 Computer Networks

25. © Prentice Hall, 2005 1 - 25 Computer Networks

26. © Prentice Hall, 2005 1 - 26 Computer Networks

27. © Prentice Hall, 2005 1 - 27 Questions