This document discusses how managers can use information technology to increase performance. It defines key terms like data, information, and different types of information systems. Transaction processing systems handle routine transactions while operations information systems summarize comprehensive data for non-routine decisions. Enterprise resource planning systems help functions improve and integrate. E-commerce systems allow business-to-business and business-to-customer trade over the internet. Information technology creates flatter organizations with more horizontal information flows.

1. I V Y V I D A L L O N
P R E S E N T E R
Using Advanced Information
Technology to Increase Performance

2. Information and the Manager’s Job
 Data
 Raw, unsummarized, and
unanalyzed facts.
 Information
 Data that are organized in
a meaningful fashion

3. Attributes of Useful Information
Attributes
Quality The accuracy and reliability of available
information affects the quality of decisions
that managers make using the information.
Timeliness The availability of real-time information
that reflects current conditions
Completeness Complete information allows managers to
exercise control, achieve coordination, or
make an effective decision
Relevance Having information that suits a manager’s
particular needs and circumstances
assists managers in making better
decisions.

4. Factors Affecting the Usefulness of Information
Figure 18.1

5. What is Information Technology?
 Information Technology
 set of methods or techniques for acquiring,
organizing, storing,
manipulating, and
transmitting
information
 Management Information System
 specific form of IT that managers utilize to generate the
specific, detailed information they need to perform their roles
effectively

6. What is Information Technology?
Managers need information for three reasons:
1. To make effective decisions
2. To control the activities of the organization
3. To coordinate the activities of the organization

7. 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 corrective action

8. 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

9. 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).

10. Types of Management Information Systems
 Operating system
software
software that tells
computer
hardware how to
run
 Applications software
software designed
for a specific task
or use

11. 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.

12. Types of Information Systems
 Operations Information Systems
A management information system that
gathers, organizes, and summarizes
comprehensive data in a form that managers
can use in their nonroutine coordinating,
controlling, and decision-making tasks.
Can help managers with non-routine
decisions such as customer service and
productivity.

13. Types of Information Systems
 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.

14. Expert Systems and
Artificial Intelligence
 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

15. 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 final customer stage.

16. 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

17. Types of Information Systems
 E-Commerce Systems
Trade that takes place between companies,
and between companies and individual
customers, using IT and
the Internet

18. Types of E-Commerce
Figure 18.5

19. E-Commerce Systems
 Business-to-business (B2B)
trade that takes place between companies
using IT and the Internet to link and
coordinate the value chains of different
companies
 B2B marketplace
Internet-based trading platform set up to
connect buyers and sellers in an industry

20. E-Commerce Systems
 Business-to-
customer (B2C)
trade that takes
place between a
company and
individual
customers using IT
and the Internet

21. 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
and market a product.

22. 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
who rarely, if ever, see one another face-to-
face.