CHAPTER ONE

INTRODUCTION TO MIS

1.1 DEFINITION AND IMPORTANCE OF MIS

Since it emerged as a field of study in 1970s, MIS has been defined by different
authors in different ways. Some of the most popular definitions are given here below:
1. 'A computer system or related group of systems which collects and presents
management information to a business in order to facilitate its control.' (CIMA:
Computing Terminology)
2. 'A system to convert data from internal and external sources into information and to
communicate that information, in an appropriate form, to managers at all levels in all
functions to enable them to make timely and effective decisions for planning,
directing and controlling the activities for which they are responsible (Lucey:
Management Information systems).
3. Management information systems (MIS) is an integrated, user-machine system
for providing information to support operations, management, and decision-
making functions in an organization. The system utilizes computer hardware
and software; manual procedures; models for analysis, planning, control and
decision-making; and a database (Davis and Olson:1985). The fact that it is an
integrated system does not mean that is a single, monolithic structure; rather, it means
that the fact parts fit into an overall design. The elements of the definition are
highlighted below

Management information system is

 An integrated user-machine system (Some can be performed using machine, other
without machines).
 For providing information;
 To support the operations, management, analysis, and decision-making functions of
an organization.

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 In an organization (an organization is a stable, formal social structure that takes
resources from the environment and processes them to produce outputs).

The system utilizes

 Computer hardware and software,
 Manual procedures,
 Models for analysis, planning, control, and decision making and,
 A database.

Importance of MIS in Business: Overall cost of information systems is growing

overtime and should be spent wisely. Well managed IS can bring about
- Improves process;
- Improves products and services;
- Improves quality;
- Cuts costs;
- Improves management, problem solving and decision making.
At strategic level, MIS can support organization in supporting their strategic goals such
as cost leadership, product differentiation, market niche, etc.,

Scope of MIS: What is common to these definitions is that information is presented to

management. However, this is not the only function of an organization's information
systems. A number of tasks might be performed simultaneously:
(a) initiating transactions (e.g. automatically making a purchase order if stock levels are
below a specified amount);
(b) recording transactions as they occur (e.g., a sale is input to the sales ledger system);
(c) processing data (as described in earlier chapters);
(d) producing reports (e.g., summaries);
(e) Responding to enquiries.

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Objectives of MIS: The objective of an MIS is to provide information for decision
making on planning, initiating, organizing, and controlling the operations of the
subsystems of the firm and to provide a synergistic organization in the process.

1.2 SUBSYSTEMS OF AN MIS

MIS has been introduced as a broad concept referring to a federation of subsystems. Two
approaches to defining the subsystems of an MIS are according to the organizational
functions which they support and according to managerial activities for which they are
used.

1.2.1 ORGANIZATIONAL FUNCTION SUBSYSTEMS

Because organizational functions are somewhat separable in terms of activities and are
defined managerially as separate responsibilities, MIS may be viewed as a federation of
information system-- one for each major organizational function such as production,
marketing, finance, etc.. There may be common support systems used by more than one
subsystem, but each functional system is unique in its procedures, programs, models, etc.
Typical subsystems for a business organization engaged in manufacturing are marketing,
manufacturing, logistics and personnel:

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Table 1.1 Functional subsystems
Major functional subsystem Some typical uses
Marketing Sales forecasting, sales planning, customer and
sales analysis
Manufacturing Production planning and scheduling, cost control
analysis
Logistics Planning and control of purchasing, inventories,
distribution
Personnel Planning personnel requirements, analyzing
performance, salary administration
Finance and accounting Financial analysis, cost analysis, capital
requirements planning, income measurement
Information processing Information system planning, cost-effectiveness
analysis
Top management (my opinion Strategic planning, resource allocation
this refers to the
administrative wing in one’s
company )

The database is the primary means of integration of the various subsystems. A data
item that is stored or updated by one subsystem is then available to the other
subsystems. For instance, the sales and inventory information used by the marketing
subsystem is supplied through the logistical subsystem; the same data is used by the
manufacturing subsystem for production planning and scheduling.

1.2.2 ACTIVITIES SUBSYSTEMS

Another approach to understanding the structure of an information system is in

terms of the subsystems which perform various activities. Some of the activities
subsystems will be useful for more than one organizational function subsystem; others
will be useful for only one function.

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 Table 1.2: Organizational activities
Activity subsystem Some typical uses
Transaction processing Processing of orders, shipments, and receipts.
Operational control Scheduling of activities and performance reports.
Management control Formulation of budgets and resource allocation.
Strategic planning Formulation of objectives and strategic plans.

Note that these activities subsystems correspond to the levels of the pyramid structure
that defines MIS (some at strategic, others at tactical and still others in the operational
levels.

Another way of considering MIS in an organization is in terms of inputs, processes and

outputs as shown in the following table.

Table 1.3: Inputs, processes and output of MIS at all levels of management
INPUTS PROCESS OUTPUTS
Strategic Plans, competitor Summarize, Key ratios, ad hoc
information, Investigate, market analysis,
overall market Compare, strategic plans
information Forecast

Management Historical, and Compare, Variance analysis

/Tactical budget data Classify, Exception report
Summarize.
Operational Customer orders, Update files, Updated files
programmed Output reports. listings, invoices
stock control
levels, cash
receipts/payments

1.3 CONTEMPORARY APPROACHES TO MIS

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Multiple perspectives on management information systems show that the study of MIS is
a multidisciplinary field. No singe theory or perspective dominates.

Computer Science

Operations
Psychology
Research

MIS

Management
Sociology
Science

Economics

Figure 1.1 Contemporary approaches to MIS

Figure 1.1 illustrates the major disciplines that contribute problems, issues, and solutions
to the study of management information systems. In general, the field can be divided into
technical and behavioral approaches. Information systems are socio-technical systems.

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Though they comprise machines, devices and “hard” physical technology, they still
require substantial social, organizational, and intellectual investments to make them work
properly.

Technical Approach. The technical approach to MIS emphasizes mathematically based

models to study information systems as well as the physical technology and formal
capabilities of these systems. The disciplines that contribute to the technical approach are
computer science, management science, and operations research. Computer science is
concerned with establishing theories of computability, and methods of efficient data
storage and access. Management science emphasizes the development of models for
decision making and management practice. Operations research focuses on mathematical
techniques for optimizing selected parameters of organization, inventory control and
transaction costs.

Behavioral Approach. An important part of the information systems field is concerned

with behavioral issues that arise in the development and long-term maintenance of
information systems. Issues such as strategic business integration, design,
implementation, utilization, and management cannot be explored usefully with the
models used in the technical approach. Other behavioral disciplines contribute important
concepts and methods. For instance, sociologists study information systems with an eye
toward how groups and organizations shape the development of systems and also how
systems affect individuals, groups, and organizations. Psychologists study information
systems with an interest in how human decision makers perceive and use formal
information; they also study how people deal with the changes brought about by new
technology. Economists study information systems with an interest in the impact systems
have on control and cost structures within the firm and within the markets.

The behavioral approach does not ignore technology. Indeed, information systems
technology is often stimulated for a behavioral problem or issue. But, the focus of this
approach is generally not on technical solutions. Instead, it concentrates on changes in
attitudes, management and organizational policy and behaviors.

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Sociotechnical Systems. Adopting a sociotechnical systems perspective helps to avoid a
purely technological approach to information systems. For instance, the fact that
information technology is rapidly declining in cost and growing in power does not
necessarily or easily translate into productivity enhancement or bottom-line profits.

In this approach, there is the need to optimize systems performance as a whole. Both
technical and behavioral components need attention. This means that technology must be
changed and designed in such a way as to fit organizational and individual needs. At
times, the technology may have to be “de-optimized” to accomplish fit. Organizations
and individuals must also be changed through training, learning, and planned
organizational change to allow the technology to operate and prosper. People and
organizations change to take advantage of new information technology change.

1.4 THE EVOLUTION AND CHARACTERISTICS OF THE

INFORMATION AGE

1.4.1 THE EVOLUTION OF THE INFORMATION AGE

Before 1800s, long before the day of the Lexus, people lived in partnership with the land.
In most parts of the world, the majority of people were farmers whose lives revolved
around agriculture. During the Agriculture Age, entire families worked hand to provide
enough food for themselves (table 1.1). This is still the case in many of the world’s
developing countries.
Gradually, new tools and techniques improved and extended the land that farmers
could use for growing crops or grazing their lands. With these new technologies, more
food could be produced; for the first time, more food was produced than was needed to
feed the family. People began to have surplus food; for the first time, more food was

Table 1.4 The Evolution of the Information Age

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 Agriculture Age Industrial Age Information Age
Time period Pre-1800s 1800s to 1957 1957 to present
Majority of workers Farmers Factory workers Knowledge workers
Partnership People and land People and machines People and people
Principal tool Hand tools Machines Information Technology

produced than was needed to feed the family. These surpluses led to the barter and sale of
food in return for other goods, food, and services.
With the coming of the Industrial Age, first to England in the 1800s (and strictly
later to other countries), machines began assisting people with their work. These
machines extended workers’ capabilities, and the partnership became one between people
and machines. As the 1800s progressed, machines became the primary tools for the
majority of the workers. More and more processes were simplified through
mechanization and automation, and the number of people working in manufacturing and
industry increased.
Of course, both agriculture and manufacturing are still important today, in the
Information Age. But the majority of today’s workers are involved in the creation,
distribution, and application of information. These knowledge workers now outnumber
those employed in agriculture or manufacturing in the developed world. ( In the United
States, white-collar workers outnumbered blue-collar workers for the first time in 1957;
the date often used to mark the beginning of the Information Age.) In the Information
Age, the partnership is one of people with other people, and the principal tool is
information technology.
Some knowledge workers are very visible, because they use concrete information
daily. Stockbrokers, bankers, accountants, financial planners, and risk managers come to
mind immediately. Other types of knowledge workers include telephone communication
specialists, physicians, attorneys, systems analysts, computer programmers, journalists,
and medical researchers.
Knowledge workers often depend on front-line workers for important data. The
counter attendants at Hotels are not knowledge workers, but they do capture data when
entering details of your order into a cash register-like computer terminal. Those data are
in turn used by a knowledge worker to manage inventory, other supplies, and schedule

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workers. Knowledge workers use information generation throughout the organization: on
the front line, in back office, and in the executive suite.

1.4.2 THE CHARACTERISTICS OF THE INFORMATION AGE

The information age is distinguished from previous ages on the basis of five
characteristics.
 The Information Age came about with the rise of an information based society.
 Businesses in the Information Age depend on information technology to get their
work done.
 In the Information Age, work processes are transformed to increase productivity.
 Success in the Information Age is largely determined by the effectiveness with
which information technology is used.
 In the Information Age, information technology is embedded in many products
and services.

Underlying all of these characteristics is the central importance of data and information
processing in the day-to-day activities of most people in the industrialized world.

An Information Society. The Information Age came about with the rise of an
information society. In an information society, more people work at handling
information than at agriculture and manufacturing combined. This is true in most
advanced western countries.
The Information Age is all about working with information technology and
allowing people easy access to IT. Person-to-person communications and the links
between individuals and businesses are important features of the information age.

Dependence on Information Technology. In the information age, businesses depend on

information technology. Furthermore, an information society depends on much more than

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computers alone. Knowing when to use computers is as important as knowing how to use
them. Equally important are the abilities to communicate information using computers
and to interconnect people through information technology.

Transformation of Work: In addition to providing new tools, the Information Age

transforms earlier tools and work processes by increasing their productivity and
effectiveness. Work processes are the activities that workers perform, the way they
perform these activities, and the tools they use. Productivity is a measure of the amount
of work that can be accomplished with a given level of effort. Effectiveness is the extent
to which desirable results are achieved.

Information Technology Influences Successes. In the Information Age, the most

successful are those who know how to make the most of information technology. Using
information technology means much more than just knowing how to key data into a
computer or how to print reports. It also means knowing what IT can do to improve your
personal performance and how it can exchange a business’s products and services in a
way that increases their value to the firm’s customers.

Embedded Information Technology. In the Information Age, information technology is

embedded in many products and services. Keep in mind, however, that knowledge-based
products are desirable only if the knowledge adds extra value to the product. Value may
be convenience, quality, reliability, or novelty--- any characteristic the consumer feels is
useful. Currently, many products are affected by the information technology such as
travel, automobile, television, aircraft, etc.,

1.4 WHAT IS INFORMATION TECHNOLOGY?

The term Information technology refers to whole variety of items and abilities used in
the creation, storage, and dispersal of information. It is important to distinguish between
data, information, and knowledge (these concepts will be discussed in detail in chapter
two). Data are simply raw facts, figures, and details. Information is an organized,

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meaningful, and useful interpretation of data. Knowledge is an awareness and
understanding of a set of information and how that information can be put to the best use.
Simple examples will clarity these differences. At a retail store, a specific
customer’s order contains raw data identifying the customer, the item(s) and quantity
purchased, and the price. At the end of the business period, the details of all orders are
assembled, summarized, and compared with expectations. The resulting information tells
the store’s managers that performance is better or worse than expected. This information
may be combined with another set of information to create the knowledge that some
customers are going elsewhere because of a competitor’s new low price program. This
knowledge may cause the store’s managers to the role of good information in improving
performance.
Information technology is divided into three primary components: computers,
communications networks and know-how (the issue of information technology will be
treated in detain in chapter three). The ways in which these elements are combined create
opportunities for people and organizations to be productive, effective, and generally
successful.

Computers: In simplest terms, a computer is any electronic system that can be instructed
to accept, process, store and present data and information. The computer includes
hardware, software and information. The computer has become a part of the day-to-day
existence of people around the globe. It is difficult to think of any field that does not
involve or is not affected by computers. Computers come in four different sizes:
microcomputers, midrange/minicomputers, mainframes, and supercomputers.

Communication Networks: The invention of the telephone by Alexander Graham Bell

in 1876 did a great deal to foster communication between people. Today, you can call
someone virtually anywhere in the world. As you speak into the telephone, your voice
reaches its destination in less than one second. When the person on the other end of the
line talks, you also hear his or her words in a fraction of a second, whether the voice is

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coming from Britain, USA, Russia, Japan, etc., virtually any of the 200 countries in the
world.
The reason we purchase telephones, and telephone services, is to communicate. A
telephone not connected to the public telephone network is not useful at all. (And,
increasingly, a computer not connected to a communications network or to other
computers will also have limited usefulness.) An integral part of information technology
is the ability to communicate: to send and receive data and information over a
communications network.
A communication network is the interconnection of stations at different
locations through a medium that enables people to send and receive data and information.
Telephone wires and cables are common communications media. Data communication
is the transmission of data and information over a communication medium.
Communications networks are revolutionizing both personal life and products and
services of business. For instance, airlines use communications network to connect with
each other, sharing information on passenger reservations, meal requirements, and
baggage handling.

Know How: Although computers and the data communications are very important parts
of information technology, an equally critical par of IT is the ability to draw on the power
of IT to solve problems and to take advantage of the opportunities it creates. Information
technology, therefore, implies a need for know-how, know how to do something well.
Know how includes:
 Familiarity with the tools of IT;
 The skills needed to use these tools;
 Understanding when to use IT to solve a problem or capitalize on an opportunity.

1.5 THE PRINCIPLES OF INFORMATION TECHNOLOGY

A principle is a fundamental rule, guideline, or motivating idea that, when applied,

produces a desirable result rather than focusing on a particular situation or set of facts,

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principles prepare you to deal with the wide variety of situations (problems and
opportunities) that you will encounter everyday. The most important principle of
information technology describes the purpose of IT: The purpose of information
technology is to solve problems, to unlock creativity and to make people more
effective than they would be if they did not involve IT in their activities.
An equally important principle of information technology, the more important it is
to consider the “high –touch. It says: the more you rely on advanced technology, like
information technology, the more important it is to consider the “high-touch”
aspects of the matter --- that is, “the people side.” A related principle stresses that: we
should always fit information technology to people, rather than ask people to adjust
to information technology.
These principles suggest that the more we rely on IT, whether in personal
activities or in business, the more important it is to be sure that the personal element is
not forgotten.

1.5.1 THE FUNCTIONS OF INFORMATION TECHNOLOGY

What exactly can IT do? IT performs six information handling functions: capture,
processing, generation, storage, and retrieval, and transmission. The way a person or
organization applies these functions determines the impact and results of using IT.
1. Capture. It is often useful to compile detailed records of activities. This process,
data capture, is performed when IT users expect the data to be useful later.
2. Processing. The activity most often associated with computers, processing, is usually
the reason that people and organizations purchase computers. The processing function
entails converting, analyzing, computing, and synthesizing all forms of data or
information. One of the first business applications of computers, data processing,
focuses on handling data (raw numbers, symbols, and letters) and transforming them
into information.
 Information Processing is a general term for the computer activity that entails
processing any type of information and transforming it into a different type of
information. Text (reports, correspondence), sound (voice, music, tones) and images

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 (visual information such as charts, graphs, drawings, and animated drawings) can all
be processed.
3. Advances in computer technology have led today to a growing interest in multimedia
systems. These systems process multiple types of information simultaneously – for
example, an animated presentation displayed on a computer screen using information
retrieved from within the computer, perhaps accompanied by music, voice, or other
types of sound. Other types of processing may have encountered include the
followings:
 Word processing --- The creation of text-based documents, including reports,
newsletters, and correspondence. Word processing systems assist people in entering
data, text, and images and presenting them in an attractive format.
 Image Processing – Converting visual information (graphics, photos, and so forth)
into a format that can be managed within a computer system or transmitted between
people and locations. A process called scanning converts a print or film image into a
form that a computer can use.
 Voice processing --- The processing of spoken information. Currently, voice
information is most frequently entered through telephone. Other systems that enable
people to “speak” information directly into a computer system are also emerging.
4. Generation. Information technology is frequently used to generate information
through processing. Generating information means organizing data and information
into a useful form, whether as numbers, text, sound, or visual image. Sometimes the
information is generated in its original form. Other times, a new form may be
generated, as when recorded musical notes are “played” as sound with rhythm and
pauses --- that is, as music.
5. Storage and Retrieval. Through information storage, computers keep data and
information for later use. Stored data and information are placed on a storage medium
(for example, a magnetic disk, or CD-ROM optical disk) that the computer can read.
The computer converts the data or information into a form that takes less space than
the original source. For example, voice information is not stored as a voice we know,
but rather as specialty coded form that the computers can manage.

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 Retrieval entails locating and copying stored data or information for further
processing or for transmission to another user. The person using the computer must
keep track of the medium on which he or she has stored that data or information and
make it available to the computer for processing.
6. Transmission. The sending of data and information from one location to another is
called transmission. As noted earlier, telephone systems transmit our conversations
from a point of origin to a destination. Computer systems do precisely the same thing,
often using telephone lines. Computer networks can also send data and information
through other media, including satellites and light beams transmitted along plastic or
glass optical fibers. People can send data and information to and from one another,
using the networks to overcome distance barriers.
Two of the most common forms of information transmission are:
 Electronic mail (e-mail) --- The acceptance, storage and transmission of text and
image messages between users of a computer system. Messages can be sent between
individuals or broadcast to a large number of people simultaneously. Typically, these
messages are entered through a computer keyboard and are viewed on the receiving
parties’ computer monitor (thus eliminating the need for sending paper messages).
 Voice messaging (voice mail) – A form of voice processing in which callers leave
spoken messages entered through their telephone receiver. The voice information is
transmitted, stored, and retrieved(“played”) by the recipients.

1.5.2 THE BENEFITS OF INFORMATION TECHNOLOGY

Information technology is used because of the benefits it provides to the people who use
it in their personal and business activities. Computers and communication systems
collectively offer four benefits to users: speed, consistency, precision, and reliability.

Speed. Unlike people, computers do everything in fraction of seconds. They are very
fast--- much faster than people could ever be. They can perform complex calculations,
recall stored information, transmit information from one location to another, and move
objects around a computer screen in a matter of seconds.

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Consistency. People often have difficulty repeating their actions exactly. Indeed, doing
something once is not nearly as difficult as doing it the same way, and with the same
result, repeatedly.
Computers excel at repeating actions consistently whether running a spell-checker
built into a word processor or playing multimedia animation for training purposes, a
computer will carry out the activity the same way every time.

Precision. In addition to being fast and accurate, computers are extremely precise. They
can detect small, even minute, differences the people may not be able to see. In
manufacturing an automobile, for example, the precise placement of a part into position
may take the difference between long use and early wear. Computers excel in managing
the smaller differences --- in being precise.

Reliability. With speed, consistency and precision comes reliability. When you know
that the same procedure will be followed consistently, you can expect reliability of
results. In other words, you can expect the same result to be achieved again and again.
Another kind of reliability, reliability of use, means that you can count on computers and
communications networks to be available and properly functioning when you need them.
Computers in general are very reliable. Many people have personal computers
that have never needed a service call. Communications networks are also very reliable,
and are generally available for use whenever needed.

1.5.3 THE OPPORTUNITIES FOR INFORMATION TECHNOLOGY

IT provides many opportunities to benefit people in general. These opportunities fall into
two general categories: opportunities to help people and opportunities to solve problems.

Helping People. Can I be better than I am now? Can I be more effective, more
productive, more creative? These questions you should ask yourself regularly, for they
challenge you to perform at your best and to reach your potential.

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 Another question focuses your attention outward. How I can help other people?
How can I work towards providing affordable health care to all, and jobs to those who
want them? How can I help to safeguard the environment, protecting the air, water, and
land from pollution and saving endangered species from extinction? How can my
business improve the society in which I live? IT can play significant role in improving
society. It also describes many opportunities for IT to assist people in their personal lives
and in their career.

Solving Problems. A problem is the perceived difference between a particular condition

and a desired condition --- for example, the study time you need to prepare for an exam
and the time you actually have. Problems occur every day. Some are dramatic as
accidents that cause serious harm. Others cause more hassles than they do harm, but all
problems can be challenging.
Problem solving is the process of recognizing a problem, identifying alternatives
for solving the problems, and successfully implementing a solution. Information
technology presents many opportunities for helping people to identify and solve
problems. Using a word processing program to prepare term papers and a spreadsheet
program to analyze financial cases may help you solve a study time problem, because
these programs can enable you to accomplish more in a given amount of time.

1.5.4 ROLE OF INFORMATION TECHNOLOGY IN OUR LIVES

Information technology is everywhere. Most people are aware of the many uses of
computers where they work, study, and play. But, the ways that IT touches on and
improves our lives every day go well beyond what we see on a day-to-day basis. Here are
a few of the diverse uses of information technology in different industries.

Television. The television networks of the world, including the BBC in England, TF in
France, ABC, CBS, and NBC in the United States; and CNN around the World, rely
heavily on graphics and animation to illustrate weather patterns, present sports results,
and (of course) reports of News. Virtually all of these graphics are produced on powerful

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microcomputers. Whether they are showing the movement of storm clouds across a
region or the results of a public opinion poll, the graphics grab our attention in a way the
words might not.

Shipping. Couriers and package carriers around the world rely on information
technology. DHL, Federal Express, and United Parcel Service (USA), and EMS
(Ethiopia) use computer systems to keep track of every package they pick up and deliver.
Their worldwide communications networks make it possible to determine instantly the
origin, location, and destination of the package.

Paperwork. Despite early predictions, we have not yet entered the age of paperless
office. Businesses still send, receive, and store large quantities of paper. However, some
companies are taking steps to lighten the paper load. For instance, in some companies
such as insurance, papers, policies, claims etc. can be scanned into the computer for
processing. This means quicker services for the customer and less paper for the company.

Money and Investments. Stock markets around the world are in transition. On some
trading floors, paper is disappearing. In fact, the trading floor itself is disappearing. The
London Stock Market launched a system known as “Big Bang” that makes it possible for
stockholders through a data communication network, brokers submit and receive bids
using their PCs and computer workstations. Electronic trading is the wave of the future
for investment markets around the world.

Agriculture. Several chemical and fertilizer companies now offer a planning service that
combines their expertise in agriculture with effective use of information technology.
Working with company advisors and sophisticated computer programs, farmers can
analyze alternative uses for their land. These programs evaluate different planting and
fertilizing strategies while estimating crop sensitivity to rain and other environmental
conditions. Each strategy can be analyzed to determine the course of action that will
bring about the most desirable results in terms of productivity and profits.

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Taxation and Accounting. People don not like to pay taxes, and they do not like filling
out forms. In the United States, the Internal Revenue Services (IRS) has installed a
system that allows people to file their tax returns electronically using the PC in their
home or office. Use of the service has grown substantially every year since its inception
in 1989. However, the manual system of Ethiopian Inland Revenue for VAT reporting,
every company is expected to report every month or face a penalty of Birr10,000 per
month for delay of reporting.
Some pioneering public accounting firms have developed the capability to file
returns for their customers electronically.

Education: The ability to read and to do mathematics are prerequisites for success in the
modern world. IBM Corporation distributes multilingual computer packages for use in
the countries in which it does business. These packages, called “Write to Read” and
“Exploring Measurement, Time, and Money,” help young and old people to acquire these
basic skills. Microcomputers present information in a variety of forms tailored to the
user’s needs and keeps track of his or her progress. The plasma system in Ethiopian high
schools is also delivery of education using information technology.

Training. Some companies are using information technology in employee training

programs. For example, insurance adjusters in training at Sate Farm Insurance (USA) can
view damage scenes (from automobile accidents or natural disasters) on a computer
display screen. Photographs and images of the damage can be “turned” electronically so
that all views can be examined for damage and for information about the extent of the
repairs needed. Interacting with the computer, the trainees ask questions and retrieve
information about the damage. They receive answers only to the questions they ask. At
the end of the session, the trainee receives suggestions about other questions to raise and
the different views of the damage to check for amore complete analysts.
Airlines around the world, conduct pilot training in special flight simulations. The
computer controlled systems duplicate the interior of the cockpit and simulate conditions
identical to those that occur during real flights. They also allow pilots to practice

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corrective actions under simulated emergency conditions that they hope they will never
have to face in the air.

The Home. France Telecom, the French telephone Company, stopped giving its
customers telephone directories several years ago. Instead, it gave them computer
terminals connected to a communication network. Today Minitel, as the network service
is called, has become a major vehicle for obtaining a wide variety of goods and services:
airline reservations, theater tickets, and of course telephone numbers. Minitel is available
to every home in France and is included free with telephone installation. The service is so
successful that France Telecom now exports a version of Minitel to Europe and North
America and even in Ethiopia.

Health and Medicine. It will come as no surprise that hospitals and clinics use
computers to keep records and generate invoices. But, computers also play an important
role in medical diagnosis and treatment. For example, the CAT scanner is an imaging
device that enables physicians to look beneath the patient’s skin. As the scanner passes
over the patient, it displays an image of bone and tissue structures on a computer screen.
The CAT’s scanner has become invaluable in identifying cancer and other dangerous
conditions that require early treatment.

Manufacturing. Robots have moved from the real of science fiction to the
manufacturing floors of factories over the last few decades. Virtually all automobiles
manufactured around the world are touched by robots at some point in the manufacturing
process. Often they perform the monotonous jobs that people do not want to perform,
such as spraying paint or welding seams.

Journalism. Reporters and journalists rely heavily on word processors to prepare news
articles and write their columns. Few writers use typewriters any more. The same goes
for the graphics people who design the illustrations (Illustration software is used by
artists or designers) that accompany the text.

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Energy. In many countries, a gas pump that accepts credit cards is the wave of the
present situation. Place your credit card in the reader and begin fueling your vehicle.
When you are through, the pump’s built-in computer notes the cost of the fuel pumped,
transmits the details of the transaction over communications lines to your bank or credit
card agency, and prints a receipt for you. You never have to go into the station, or move
away from your car, or wait for an attendant. Automated gas pumps do not reduce the
amount of fuel consumption, but they do reduce the time and energy you burn in fueling
up.
Large office buildings consume huge quantities of energy in both summer and
winter. Thanks to information technology, this energy usage is better managed than ever
before. Using a system of thermostats and sensors interconnected through a
communications network, a computer monitors temperatures around the clock,
controlling heating and cooling devices to maintain the right, prespecified comfort level.
At the end of the workday and on weekends, the system automatically adjusts the
temperature, thus conserving additional energy. Some systems can also determine
whether a room is occupied, shutting off lights when it is empty.

Sports. Auto racing draws enthusiasts around the world. In all the auto circuits, such as
Formula 1, computers are an integral part of race cars and a central element in racing
strategy. Today’s race cars are fitted with onboard computers and communications
capabilities. Data regarding fuel use, engine functions, braking patterns, and speed are
monitored, displayed in the driver cockpit, and transmitted from the race car to the pits.
These data provide information that can influence racing strategy and determine whether
a team wins or loses.

1.5.5 THE RESPONSIBILITIES IN PRACTICE

We use computers and networks almost every day without thinking about them. Those
who use information technology (in other words, all of us) have three fundamental
responsibilities:

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 To be informed: To know the capabilities and limitations of IT and how computers
and networks can be applied in different situations.
 To make proper use: To utilize the inherent capabilities of IT in a desirable and
ethical manner that helps people and does not infringe on their privacy, rights, or
well-being.
 To safeguard: To protect data and information against intentional or accidental
damage or loss, and to protect the failure of a process that relies on information
technology.
An important principle follows from these responsibilities: people who use information
technology have the obligation to consider both the benefits and drawbacks of any
use.

1.6 THE CAREER SIDE OF INFORMATION TECHNOLOGY

Some careers require detailed knowledge of the intricacies of computers and

communication systems. Most business careers, however, require only a good
understanding of what you can and should do with IT and what you cannot and should
not do with IT.

1.6.1 INFORMATION TECHNOLOGY AS A CAREER

Careers in the “technical “ side of information technology can emphasize many different
aspects of the field, from the writing of computer programs to the installation of hardware
to the determination of users’ needs. This will be examined in detail in chapter three. For
now, though, it is enough to be aware the substantial and growing demand for career
specialists in information technology throughout the world. In many areas, there is a
shortage of IT professionals. Businesses in some countries are concerned that a
continuing shortage of people with IT skills will force companies to relocate outside their
countries.
As in all other careers, good “people skills” and the ability to communicate ideas
effectively are critical ingredients for success in the field of information technology.

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1.6.2 INFORMATION TECHNOLOGY AS AN AID TO YOUR CAREER

Even if you do not plan a career in information technology, IT can help you in the career
you decide to pursue. Knowing how IT is used in organizations, acquiring demonstrable
skills in IT, and being able to list your IT accomplishments on your resume can give you
an advantage over those with whom you will be competing for a job. Especially
important are the abilities to use a PC., to do word processing, to perform problem
solving activities, and to communicate electronically. In business as well as in the arts,
the science, education, medicine, law, and government, information technology ----
computers, communication networks, and know how --- is an essential tool. Best of all,
you don’t have to wait until you start your career to begin using information technology.

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