Week 1: Managing in a Digital World MIS2101: Information Systems in Organizations Prof Sunil Wattal

Introductions –Name –Major / Minor –Recent Internships / Industry Experience –What brings you here? Read introductions aloud

Have you ever wondered ….. Can my job be outsourced? Google’s revenue model and competitive implications Facebook's valuation and privacy problems Time's Person of the Year 2006: You Why is WalMart so successful?

Have you ever wondered ….. What business problems can technology solve ( and what it cannot)? Why customer service reps keep me on hold for ever when I call? Who has access to my private information and what they can do with it? Why are some products out of stock ?

What is the course about? Explain the role of technology as a business enabler and a change agent Relate technology to other functional areas such as marketing, finance, accounting Creating competitive advantage using technology Understanding technology related trends in business

Who should take it? MIS Majors / Minors –Broad overview of topics in MIS –Pointer to future courses in the major Non MIS Majors –Critical to understand how technology changes business –‘Talk the Talk’ –Complete 2 more courses for a minor

Interdisciplinary Impact MIS and Marketing –Ecommerce, Internet Marketing, Customer Relationship Management MIS and Finance –Evaluating business value of new technologies, industry analysis MIS and Accounting –Accounting Information Systems, Accurate and Timely Monitoring MIS and Human Resources Management –Online Employee Ser vices, Outsourcing, Social Networks

Course Formalities Syllabus Office Hours Lecture Slides Evaluations Regrades Preparing for Class

Learning Objectives Key Terms & Definitions –Technology in Everyday World Careers in MIS Dual Nature of IS

Group Exercise –Share your experiences on how technology is changing business / society –How Information is Empowering Business Consumers –Define the following terms: Technology, Information Technology, Information Systems, Management Information Systems (MIS)

1-11 Information Systems: Definition Combination of five six key elements: –People –Hardware –Software –Data –Telecommunications networks –Processes A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization.... Source: Laudon, K & Laudon, J, Managing Information Systems

Drivers of Information Age Greater Miniaturization, Speed, and Portability –miniaturization –Moore’s Law Greater Connectivity and Continuing Convergence of Computing and Communications connectivity –interoperability –open systems –convergence of computing and communications Greater Use of Digitized Information and Multimedia –digitization –multimedia Better Software Techniques and Interfaces with People

1-13 Digital World The Knowledge Worker –Term coined by Peter Drucker in 1959 –An individual who is relatively well educated and who creates, modifies and/or synthesizes knowledge as a fundamental part of a job Knowledge Society –New Economy/Digital World Digital Divide

1-14 The Knowledge Society Information is now as important as land, labor and capital.

Learning Objectives Key Terms & Definitions Technology in Everyday World Careers in MIS Dual Nature of IS

1-16 Builders and Managers of IS Career opportunities are strong and expected to grow –Computer/IT analyst and Computer & IS Manager both in the top 10 best jobs for the next decade Median earnings for managers $102,360 (May 2005)

1-17 Best Jobs for the Next Decade

1-18 What Makes IS Personnel Valuable? Integrated knowledge and skills in three areas –Technical Competency - s kills in hardware, software, networking and security –Business Competency – understanding of the nature of the business; this is key in addition to the technical competency –System Competency – understanding of how to build and integrate large scale systems

Information Systems Today: Managing in the Digital World 1-19 Organizing the IS Function Early History: Poor Service and Worse Attitudes –Early systems were cumbersome to use, over budget and late The Modern Information Systems Organization –Attitudes changed and service mentality emerged –Spread of Technology in Organizations –Downsizing & Outsourcing

Information Systems Today: Managing in the Digital World 1-20 IS Personnel Changing trends –Higher prestige –More women PAST PRESENT

1-21 Careers in IS: Evolution of the CIO Chief Information Officer (CIO) – job title became popular in 1980s Early 1990s – people joked that CIO stands for “Career Is Over”

Learning Objectives Key Terms & Definitions Technology in Everyday World Careers in MIS Dual Nature of IS

1-23 The Dual Nature of IS IS can make you or break you U.S. Navy – The failure –$ 1 billion wasted on 4 different ERP applications FedEx – The success –$ 32 billion family of companies – largest express transportation company –“Information hub for business where managing information is the business”

Obstacles in Applying MIS Unrealistic expectations Difficulty in building and modifying systems –Y2K Difficulty integrating systems –ERP Organizational inertia

1-25 Why Information Systems Matter Nicholas Carr article – “IT Doesn’t Matter” –IT no longer a source of advantage on the firm level –Companies should focus IT on cost reduction and risk mitigation Many experts disagreed with his arguments –Many successful companies use IT to support a unique business strategy –Strategic Advantage due to IT can be fleeting –‘Red Queen’ Effect

In this course... You won’t be learning programming, algorithm design, or database structure You will be learning critical thinking about technology’s role in overall business success –How business and IT professionals communicate –What roles IT plays in modern business firms –How to get things done using IT –How to get value from IT initiatives

1-27 MTV Europe The most international television network in the world Now working to break into a new medium: mobile television screens –MTV-Europe: testing ground

1-28 ChoicePoint Inc. Identity theft – the crime of the 21 st century –8.9 million victims in the first 7 months of 2006 ChoicePoint maintains 19 billion pieces of information on virtually every adult in the US –2005 – identity thieves bought more than 100,000 records from ChoicePoint 750 of these became victims of identity theft –In 2006 ChoicePoint was fined $10 million for the security breach $ 5 million was paid to consumers affected by this Security audits implemented

Questions!!