Page 37 - Information Management 3rd Edition

Chapter 2 – Information systems
also be expanded to link computers of businesses in different localities and even in different cities all over the world. Information can be moved very quickly from one locality to another.
Extranets are computer networks that make use of the Internet to communicate with the external environment. Information is transferred between two or more businesses by using inter-business/organisational information systems. This also forms the basis for electronic commerce and e-business. They are also major components in the computer-based linkages between a business’s suppliers and/ or customers.
2.10 The integration of systems and the flow of information
Pre-pub
As it has been explained, each function in the business can be seen as a system on its own. Althoucgh each fuonction is mapnaged indiyvidually, they are still part of the business and must function interdependently as an integrated system. Each functional manager must produce certain outputs in order for the business as a whole to be profitable.
The question is:
function of top management, but each functional manager is also responsible. Each functional manager, for example, cannot do planning in isolation. There is no use in expanding one of the functions without informing the human resources function. Who will recruit and employ the additional employees? Therefore, the matter will be better facilitated if a team approach is followed in the management process.
To ensure successful integration and coordination in the business, the following requirements must be satisfied:
• There must be cooperation between individuals and the different functions.
• Each function and its subdivisions must be aware of its share in the goal of the business (the output they need to provide that becomes the input of the
other functions).
• Each function must be flexible and able to adapt to changing circumstances.
The functions can be described as a number of mutually dependent subsystems, parts or procedures and methods that work together towards a common goal. Within each function work needs to get done in a coordinated way and according to
The systems in most businesses are specialised to serve each of the functional
areas, such as sales and marketing, manufacturing and production, and human
resources. A system is not necessarily used only by one section or one management
level. For example, it is possible for a middle manager to get information from a
TPS. Systems are often developed as stand-alone systems and are not linked to
other systems in the business. System integration looks at a business as well as the
needs of the business. System analysts then look at the possibility of integrating
the different systems within the business so that information can flow between them and making this information available to all users by means of any of these systems.
“Who mu
st take care
of this inte
gration?” Generally, it is the
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