Page 626 - Introduction to Business

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

host computer and any two computers in the network can communicate with each
other. However, the communications channel forms a closed loop, and hence infor-
mation is passed from one computer to the next one in the ring in only one direc-
tion.
Telecommunications networks can be classified by their geographic coverage as
local area network (LAN) A network local area networks and wide area networks. Local area networks (LANs) provide
that provides connectivity within a connectivity within a limited physical area such as an office, a building, a manu-
limited physical area such as an office,
a building, or several buildings in close facturing plant, or several buildings in close proximity. An example of a LAN is pro-
proximity vided in Exhibit 17.2.

EXHIBIT 17.2 Network server—
Shared hard Shared
Example of a Local Area disk unit databases
Network and software
Source: James O’Brien, Introduction to packages
Information Systems: Essentials for the Workstation Workstation Workstation
Internetworked Enterprise, 9th edition
(New York: McGraw-Hill/Irwin) 2000,
p. 144.

Workstation Workstation Workstation
Shared
Internetwork printer
processor to
other networks

wide area network (WAN) A network Wide area networks (WANs) provide connectivity over large distances. The
that provides connectivity over large WAN of one of the major oil companies connects its offices in the United States,
distances, sometimes from one Canada, Europe, Africa, Asia, and Australia.
continent to another
reality When you use your credit card, what is the role that is played by com-
CH ECK puter hardware and software, databases, and telecommunications net-
works?

Classification of Information Systems

LEARNING OBJECTIVE 3
Classify information systems by the organizational level they support and by the business function
they serve.

Information systems can be classified by the organizational level they support and
by the business function they serve. Thus in the first classification, we would have
information systems for operational managers, middle managers, and senior man-
agers. And in the second classification we would have information systems for mar-
keting, production, accounting, finance, and human resources.

Information Systems for Operations Managers

Operations managers are concerned with short-range plans such as weekly pro-
duction schedules. They direct the use of resources and the performance of tasks

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