Chapter Twelve Systems and Organizations in the Information Age.

Chapter TwelveChapter Twelve

Systems and Organizations in the Information Age

©1999 Addison Wesley Longman 12.2

Chapter Outline

• Into the Information Age

• Systems and Organizations

• Information Systems


Into the Information Age

• There have been three monumental changes in civilization. These paradigm shifts represent changes in thinking that resulted in a new way of seeing the world:– The Agricultural Economy– The Industrial Economy– The Information Economy.


The Agricultural Economy

• Gradually, hunter and gatherer societies learned to domesticate animals, grow their own grains, and use agricultural tools.

• This agricultural economy is characterized by people living and working on farms.


The Industrial Economy

• Slowly, technological advances in factories promised a higher standard of living.

• This industrial economy is characterized by families moving from farms into cities to work.


The Information Economy

• Advances in information technology have attracted people from factories.– Today, clerical workers outnumber

factory workers.

• Incomes in aninformationeconomy aredependent upon computers.


Information Workers

• Globally, the U.S. is at the forefront of the information economy.

• About 70% of American workers are information workers.

• Scientists, engineers, and others who create new information are knowledge workers.

• Data workers include sales persons and clerks who use and distribute information.


Non-Information Workers

• There are two main categories of non-information workers:– Service workers, such as writers and hairdressers– Goods workers, such as machinists

• Non-information workers may process information on their jobs, but information is not the main focus of their work.


Where Computers Work

• Entertainment

• Publishing

• Medicine

• Airlines

• Science


Computers in Entertainment

• Tools such as:– specialized word

processors– graphics

workstations– musical synthesizers

are used to produce commercials, TV shows and movies.


Computers in Publishing

• Reporters use the Internet to gather research.

• Many newspapers produce Web versions.

• This textbook was produced entirely on computer workstations.


Computers in Medicine

• Medical students and professionals use this virtual emergency room to simulate taking vital signs and other critical patient data.


Computers at the Airlines

• Today, designers use CAD for entire airplanes.

• Airplanes have computer-controlled navigation systems.

• Air traffic controllers use computers to maintain flight safety.


Computers in Science

• Scientists collect and analyze data collected by remote sensing.

• Notebook computers ease data collection in the field.

• Statistical analysis software helps scientists visualize results.


Social Responsibility

• Socially responsible computer use includes both ethical behavior and legal considerations.

• Responsible use applies both to individuals and to the company as a whole.


Social Responsibility

• Companies should have a computer ethics policy featuring:– Use of informed consent– Higher ethic concepts– Most restrictive action concepts– Universality rules– “Change in” limits.


Systems and Organizations

• A system is a group of interrelated or interacting elements working together towards a common goal.


Systems and Organizations

• Anatomy of a system

• Example of a system

• Robots as systems

• Business organizations as systems


Anatomy of a System

• Feedback is information about the system’s performance, input, processing and output.

• Control means input and processing are adjusted to achieve desired output, based on feedback.

• Boundaries are limits of the system.• Environment is anything outside the system boundaries.


Example of a System

• A ski resort can use a computer system to maintain an adequate snow level by monitoring weather data on the slopes.


Robots As Systems

• A robot is a computer-controlled machine designed to perform manual or mechanical tasks.


Robots As Systems

• Processors in robots are like those found in PCs.• Robots have different input and output peripherals

than desktop computers.• Robots may have video cameras for input and motors

for output, instead of keyboards and CRTs.


Business Organizations As Systems

• A business organization is a system using a variety of resources to produce products and services for customers.



• Managers perform the control function in business systems.

• Managers ensure that input, processing and output functions work properly.



• Business systems:– Are interrelated sets of subsystems– Accomplish specific business

processes– May produce, sell and

deliver a product to customers.


The Value Chain Model

• The value chain model shows the activities in an organization that make a product or service more valuable to customers.



• The value chain model contains five primary activities:– Inbound logistics– Operations– Outbound logistics– Marketing and

sales– Service.



• The value chain model contains four support activities:– Management and administration– Human resources– Research and technology development– Procurement.


Information Systems

• An information system uses people, hardware and data resources for input, processing, output, and storage.


Information Systems Functions

• Input

• Processing

• Storage

• Output

• Control


Purpose of Information Systems

• The purpose of information technology is to support people working to achieve the organization’s goals by providing access to information.


Information Systems in Context

• Information systems support people performing four types of tasks:– Communication

among employees– Organizational

operations– Decision making– Strategic

management.


Information Systems in Context

• Information systems:– Organize and represent meaningful facts and

statistics– Represent information in physical or digital form– Include e-mail messages and computer-generated

reports.

• An organization’s environment affects the type of information it needs.


Functions of Information Technology

• Acquisition

• Processing

• Storage and retrieval

• Presentation

• Transmission


Benefits of Information Systems

• Higher quality information• Improved access to information• Better utilization of information• Greater efficiency for task performance• Better communication and

decision making• Better products and

services


Transaction Processing

• Information systems for transaction processing are characterized by:– Large databases– High processing speeds– The need to capture data– Demands to retrieve information for

queries, groupware and Web pages.


Transaction Processing Cycle

• A transaction processing cycle consists of input, processing, storage and output.


Real-World Transaction Processing

• Early business applications primarily recorded transactions.

• Today, managers need cross-functional information systems.

• Cross-functional systems combine information from multiple transaction systems.


Enterprise Resource Planning

• ERP, a careful reengineering of business systems mirrored in information systems, can greatly increase productivity.


Enterprise Resource Planning

• ERP software is used in integrated operations management.

• Integrated software suites simplify data exchange.– A+ from IBM– Sap

• Data warehousing software consolidates corporate information, allowing all processes to share the same data.


Automated Design and Manufacturing

• Computer aided design (CAD) allows designers to build and test product prototypes as computer objects.


Automated Design and Manufacturing

• Computer aided manufacturing (CAM) makes a product to order and delivers quickly.

• Computer integrated manufacturing (CIM) embraces both CAD and CAM for simplicity and automation.


After reading this chapter, you should be able to:

• Discuss the roles of information workers and computers in the information economy

• Describe the social responsibilities of information workers and organizations

• Describe the components of a system• Describe the value chain model


After reading this chapter,you should be able to:

• Describe a business organization as a system using the value chain model

• Describe the components of an information system

• Explain how transaction processing systems are used to support business processes

• Discuss how computers are used to support automated manufacturing and design

Chapter Twelve Systems and Organizations in the Information Age.

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Transcript of Chapter Twelve Systems and Organizations in the Information Age.