Page 618 - Introduction to Business

592 PART 6 Managing Business Operations, Management Information Systems, and the Digital Enterprise

applications enhanced the CATIA system in three major areas: data
management, user productivity, and visualization. Each of these major
enhancements was required to deal with the size and scale of productively
managing the millions of 777 airplane parts modeled on CATIA.
Once all of the computing applications were in place, Boeing engineers and
designers were able to use the three-dimensional digital software to see parts
as solid images and then simulate the assembly of those parts on the screen,
easily correcting misalignments and other fit or interference problems. In June
1995, the Boeing 777 Division was recognized for its innovative application of
computing technology to the 777 when it won the top spot in the
manufacturing category of the annual Computerworld Smithsonian Awards.
The awards honor the world’s most creative and innovative use of information
technology that benefits society. By earning top honors in the category, the
Boeing computing and design application earned a place in history in the
Smithsonian Institution’s permanent research collection. 1

Introduction

As illustrated in the vignette about Boeing, one of the key ingredients for business
success is information. In fact, it is well known that sometimes the differentiating
factor between organizations that lead and organizations that follow in an industry
is the way in which information is managed. This chapter deals with management
information systems, systems that use information technology to manage informa-
tion in a business organization. We first define management information systems
and describe in detail the resources used by this business function. We then pres-
ent a classification of information systems in business. Next, we take a detailed look
at the process of developing information systems, at the configuration strategies for
information systems that global companies are using, and at the controls needed to
assure the security and accuracy of information systems. The chapter closes with a
brief discussion of career paths in management information systems.

What Are Management Information Systems?

LEARNING OBJECTIVE 1
Explain what management information systems are.
data Facts about events or attributes of Data are collections of facts, events, or attributes of entities such as things, places,
things, places, or people or people. Examples of data are the ages of the citizens of a given country, the max-
imum daily temperatures of a city for the last ten years, and the amount spent by
information Data that have been each customer in a given year at a particular McDonald’s restaurant. Information
transformed to be meaningful and is data that have been transformed to be meaningful and valuable to specific users.
valuable to specific users
For example, the data on the ages of the citizens of a given country could be trans-
formed into the average age by gender, and hence become information for public
health officials. As a second example, the data on the maximum daily temperatures
of a city for the last ten years could be transformed into the average maximum daily
temperature for the last ten years, and thus become weather information. And as a
third example, the data on the amount spent by each customer in a given year at a
particular McDonald’s restaurant could be transformed into average daily or weekly
sales information.

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