1. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 24 Information Systems

2. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives Describe the nature of information and information systems, including their effects on a manager’s job and the characteristics of effective information. Identify the basic components of information systems.

3. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives Discuss the types of information systems available. Discuss how to determine information system needs and how to match needs with systems. Describe the impact of information systems on organizations.

4. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Nature of Information Information – Data organized in a meaningful way. Data – Facts and figures—unorganized pieces of information. System – Interrelated set of elements that function as a whole.

5. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Nature of Information Information Needs of Managers – Manager’s job: functions, roles, skills. – Amount and variety of data coming to managers have grown tremendously. – Managers becoming information processors. Effective Information – To be effective, information must be accurate, timely, complete, relevant.

6. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Nature of Information The Information Age – Stage 1. Management enthusiastic about computers; uses them for accounting applications. – Stage 2. Management becomes aware of some limitations of computer; more cautious about extending applications. – Stage 3. Information systems become overloaded; management becomes cynical about ability of computers to solve all of its problems.

7. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Nature of Information The Information Age – Stage 4. Managers learn how to use computers and information systems to bring about needed changes in organization. – Stage 5. Management begins understanding and controlling information systems and computers; this is when information age comes about.

8. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Information and Information Systems Components of Information Systems – Input devices: way to get data into system. – Central processor: analyze or process data; hardware. – Store data and information.

9. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Components of Information Systems – Output devices: makes information available. – Control system involves computer software and human monitoring to ensure software and system function as planned. – Software: instructions (programs) enable hardware to function. Information and Information Systems

10. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Information and Information Systems

11. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Designing Information Systems – Knowing information system needs and kinds of systems that exist or may be developed in future. – Needs influenced by area and level of management involved. – Information requirements analysis. Information and Information Systems

12. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Information and Information Systems

13. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Information Systems Formal or informal. – See Table 24.1: Kinds of Information Systems. Transaction-Processing Systems (TPS) – Handles routine and recurring transactions within organization. Management Information Systems (MIS) – Gathers, organizes, summarizes, reports data.

14. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Information Systems Decision Support Systems (DSS) – Searches for, analyzes, summarizes, reports information needed for making particular decision. Other System Technologies – Customer relationship management (CRM) – Agricultural Research Service (ARS) – Economic Research Service (ERS) – National Agricultural Statistics Service (NASS)

15. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Information Systems Other System Technologies – Computer software: data stored and manipulated. – Telecommunications: teleconferencing, telecommuting, networking. – Artificial intelligence (AI): computers simulate human decision processes. – Expert systems: expertise of human in software. – Hypertext: allows user to move in any direction through information.

16. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Managing Information Systems Integrating Information Systems – Most organizations use more than one system. – Information systems must be integrated or linked so information can merge to form information that is more useful. Using Systems – User-friendly information systems.

17. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizations and Information Systems Effects of Information Systems – Performance – Organizational structure – Behavior See Table 24.2: Effects and Limitations of Information Systems.

18. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Limitations of Information Systems – Cost – Learning difficulties – Information may be overly valued – Cannot always handle all tasks or problems – Used improperly – Electrical power failures Organizations and Information Systems

19. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Implications of Information Systems – Advent of computer networks and electronic mail promises to enhance productivity. – Important for managers to remain abreast of breakthroughs and changes. – Every organization will have to contend with issues of control and coordination. Organizations and Information Systems

20. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Internet and Social Media Every organization should have a website. Social networking provides unique opportunities for organizations to stay informed, monitor environment, interact with stakeholders. One of the most important uses of social media is for marketing.

21. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Summary Information: data organized in meaningful way. Data: facts and figures—unorganized pieces of information. System: interrelated set of elements that function as a whole. Information must be accurate, timely, complete, relevant.

22. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Summary Five components of any information system: – Getting data into system – Analysis and processing – Storage – Making information available – Control system

23. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Summary Information systems: ensure proper information available when needed. Designing information systems: knowing one’s information system needs and kinds of systems developed. Information system needs determined by: kind of organization, its environment, its size.

24. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Summary Information systems formal or informal and classified as central or distributed. – Transaction-processing systems (TPS) – Management information system (MIS) – Decision support system (DSS) Integrating systems not easy, but must be done if information system to be effective.

25. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Summary Effectiveness increases when systems are user friendly; easier to learn and use. Information systems limitations: expensive and difficult to learn. Information derived may be overvalued, improperly used, not used at all, vulnerable to power outages.