Chapter 1
Information
Management In A
Global Economy
What is Information?
Information is data that has been
organized and interpreted, and
possibly formatted, filtered,
analyzed, and summarized
Slide 2
Role of Information
In Organizations
 Information As a Resource
• Information is an input into the production
of goods and services.
 Information As an Asset
• The property of a person or an
organization that contributes to a
company's output
Slide 3
Role of Information
In Organizations
 Information As a Product
• Companies can also sell information, the
output of its production, as a product or
service or as an embedded component of
a product.
Slide 4
Role of Information Technology
 Role of Information Technology
• Information technology has allowed
individuals, groups, and organizations to
manage information effectively and
efficiently.
Slide 5
Role of Information Technology
 Information Technology (IT)
• Includes computer hardware, software,
database management systems, and data
communication systems
Slide 6
Managing Information and Information
Systems
 Information System
• Combines information technology with
data, procedures for processing data, and
people who collect and use the data
Slide 7
Managing Information and Information
Systems
Figure 1-3
Slide 8
Types of Information Systems
 Automation Systems
• Use information technology to perform
tasks or to make them easier or less labor
intensive
• Example
The electronic key systems used by Marriott
International
Slide 9
Types of Information Systems
 Transaction Processing Systems
• Process and record an organization's
transactions
• Example
A unit of business activity, such as purchasing
a product, making a banking deposit, or
reserving an airline seat
Slide 10
Types of Information Systems
 Management Support Systems
• Supply information that managers need to
make decisions and coordinate their
activities
• Example
A human resources manager might use a
management support system to evaluate the
performance of an employee before deciding
whether or not to give him a raise
Slide 11
Examples of Management Support
Systems
 Management Reporting Systems
• Provide information that low-level
managers need to make routine decisions
 Decision Support Systems
• Assist managers in making non-routine
decisions
Slide 12
Examples of Management Support
Systems
 Groupware
• Supports the group activities of managers
and other workers
 Executive Information Systems
• Provide the information that top executives
need to quickly identify problems, scan
data for trends, communicate with
employees, and set strategic objectives
Slide 13
The Scope of
Information Systems
 Individual Information Systems
• Target a single person in the organization
 Functional Information Systems
• Address the needs of a function or
department in an organization
Slide 14
The Scope of
Information Systems
 Enterprise Information Systems
• Fully integrate the functions of an
organization and provide a single,
comprehensive repository for its
information
Slide 15
The Scope of
Information Systems
 Inter-organizational Information
Systems
• Provide a common point of interaction and
common repository of information for a
company, its suppliers, distributors,
customers, and/or shippers.
Slide 16
Why Managers Today Need to Use and
Understand IT
 To succeed in a global environment
 To profit from the electronic
economy
 To focus on performance
 To support a mobile workforce
 To build individual capabilities and
productivity
Slide 17
The Manager’s Job
Figure 1-5
Slide 18
The Roles of the Manager
 Gathering information and
monitoring the environment
 Sharing information
 Leading, motivating, and coaching
employees
 Making decisions and plans
Slide 19
The Roles of the Manager
 Distributing and Negotiating about
resources
 Resolving problems and developing
strategic responses
 Providing control
Slide 20
The Challenges For Effective
Information Management
 Managers Need To:
• Collect, process, and disseminate
information quickly and accurately to help
their organizations compete effectively in
today’s global marketplace
Slide 21
The Challenges For Effective
Information Management
 Using technology appropriately to
meet information needs
 Dealing with too little, too much, or
conflicting information
 Responding in a timely fashion
 Ensuring cost effectiveness
 Ensuring security
Slide 22
Ethical Principles of Information
Management
 Ethics -- the study of how to apply
your moral standards to particular
situations
 Ethical principles
• Harm minimization
• Consistency
• Respect
Slide 23
The Four-Step
Management Approach
Figure 1-8
Slide 24
End of
Chapter 1
Information
Management In A
Global Economy