Information Technology - technology applied to
processing, storing, and transmitting information in
electronic form.
 computers
 communications equipment and networks,
 laptops
 smartphones
 tablets
Information systems
 execute organized procedures that process
and/or communicate information.
 processes this data in some way and presents
the results to users
information - a tangible or intangible entity that serves
to reduce uncertainty about some state or event.
Data Sources
 internal operations
 external entities
Human interpretation - of information is extremely
important in understanding how an organization reacts
to the output of a system. Different results may mean
different things to two managers.
Networks
 computers are connected together using
various kinds of communications lines to form
 individuals and organizations are linked
together.
computation – The first era of computing
communications - The second era of computing
The computer has been called "the machine that
changed the world.
Managers at all levels and in all functional areas of the
firm are involved with IT.  How People Interpret Information
Managers are involved in a wide range of
decisions about technology, decisions that are vital to
the success of the organization.
A major feature of Information Technology is the
changes that IT brings.
when the Internet became available for profit-making
activities around 1992,
The study of IT is the study of change
Information Technology has demonstrated an ability to
change or create the following:
 Within Organization
 Organization Structures
 Interorganizational relationship
 Economy
 Education
 National Development
T-Form or Technology-Form organization,
an organization that uses IT to become highly efficient
and effective.
Six Major Trends and Implications for Management
 The use of technology to transform the
Organization
 Technology as pervasive part of work
environment
 The use of Information Processing Technology
as part of Corporate Strategy
 The use of technology to support knowledge
workers
 Evolution of computers from computation to a
medium of communication
 The growth of internet and world wide web
Information
- tangible or intangible entity that reduces
uncertainty about some state or event.
- processed data meaningful to recipient
nature of the problem influences the way we interpret
information. important decision may require more care
in analyzing data. The organization itself affects the
interpretation of information. The attitudes of a new
employee will differ substantially from those of the
chairman of the board.  Influenced by their attitudes
and by the environment. New employees begin to
change their attitudes. Use the same information
probably interpret the same information differently.
Analytic v Heuristic Decision Makers Types of Decisions
 The analytic decision maker looks at strategic planning - the decision maker develops
quantitative information. objectives and allocates resources to obtain them.
 The heuristic decision maker, on the other Decisions in this category are characterized by long time
hand, is interested in broader concepts and is periods and usually involve a substantial investment
more intuitive. and effort.
Information
Characteristics of Information managerial control - concern the use of resources in
 Structure the organization and often include personnel or
 Summarize financial problems.
 Source
 Historical operational control - decision covers the day-to-day
 Surprise problems that affect the operation of the firm.

different types of decisions require different kinds of

information  Once the decision maker has made a choice, it is
necessary to implement it\
Operational control decisions are characterized by
historical information Implementation is often difficult for managers

information often must correspond closely to real time Making a decision can be a complex undertaking

From Information to Knowledge

There are a number of ways to classify organizations,
Information alone is not enough to produce knowledge
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The charismatic organization is dominated by a strong
Knowledge
leader. This individual sets the goals of the firm and
 a strategic resource for many organizations.
tends to make all decisions.
 information plus know-how
The Bureaucracies are characterized by a large number
Explicit and Tacit knowledge of management layers. There are many rules and
 Explicit knowledge is represented by facts.  procedures to protect individuals
 Tacit knowledge is something we understand
but have difficulty explaining. (riding bicycle) The adaptive organization tries to respond quickly to its
environment.
How do companies acquire knowledge? The most
obvious way is through experience
FRAMEWORK OF INFORMATION TECHNOLOGY
Knowledge often comes from beginning to understand
cause and effect relationships

One important job for a manager is to foster the

development of organizational knowledge and to
create an organization that learns as it operates.

The Decision-Making Process

Problem solving and Decision Making