Fundamentals of Management, 8th ed

TOUGH TIMES, TOUGH CHOICES (Continued)

executive support

system (ESS)

A quick-reference,

easy-access

application of

information systems

specially designed

for instant access by

upper-level

managers

artificial intelligence

(AI)

The construction of

computer systems,

both hardware and

software, to imitate

human behavior—

that is, to perform

physical tasks, use

thought processes,

and learn

Chapter 12: Communication in Organizations

3 7 3

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problems, such as the judgments a physician makes in diagnosing illnesses. In effect,

expert systems supply everyday users with “instant expertise.” A system called mainte-

nance operations center advisor (MOCA), by imitating the thought processes of a main-

tenance manager, schedules routine maintenance for American Airlines’s entire fleet.

Intranets

, or private Internet networks, are accessible only to employees via entry

through electronic firewalls. Firewalls are used to limit access to an intranet. Ford’s intra-

net connects over 100,000 workstations in Asia, Europe, and the United States to thou-

sands of Ford websites containing private information on Ford activities in production,

engineering, distribution, and marketing. Sharing such information has helped reduce

the lead time for getting models into production from 36 to 24 months. Ford’s latest

project in improving customer service through internal information sharing is called

manufacturing on demand. Now, for example, the Mustang that required 50 days’ deliv-

ery time in 1996 is available in fewer than 2 weeks. The savings to Ford, of course, will

be billions of dollars in inventory and fixed costs.

Extranets

allow outsiders limited access to a firm’s intranet. The most common appli-

cation allows buyers to enter the seller’s system to see which products are available for

sale and delivery, thus providing product availability information quickly to outside

buyers. Industrial suppliers, too, are often linked into their customers’ intranets so that

they can see planned production schedules and make supplies ready as needed for

customers’ upcoming operations.