CHAPTER 1 and MODULE A The Information Age in Which You Live: Changing the Face of Business & Computer Hardware and Software

Why do we need to Study MIS?

INTRODUCTION Information age Information age Knowledge worker Knowledge worker Outnumber all other types of workers at least four-to-one Outnumber all other types of workers at least four-to-one

IS YOUR SOCIAL SECURITY NUMBER WORTH $98? Information technology has greatly accelerated both the “good” and the “bad” Information technology has greatly accelerated both the “good” and the “bad” IT can be used to increase profit, reduce costs, increase service quality, and benefit society IT can be used to increase profit, reduce costs, increase service quality, and benefit society IT can also be used to steal your personal information, commit fraudulent acts, etc IT can also be used to steal your personal information, commit fraudulent acts, etc Many sites on the Web are – right now – selling your personal information Many sites on the Web are – right now – selling your personal information

What Your Personal Information Is Worth? $490 – credit card number and PIN $490 – credit card number and PIN $147 – driver’s license number $147 – driver’s license number $147 – birth certificate $147 – birth certificate $6 – PayPal logon and password $6 – PayPal logon and password $78-$294 – billing data including account number, address, birth date, etc $78-$294 – billing data including account number, address, birth date, etc

Business Must Drive Technology

INTRODUCTION You live in a digital age You live in a digital age Average American relies on more than 250 computers per day Average American relies on more than 250 computers per day 45 of the 2008 Fortune 500 companies were IT companies 45 of the 2008 Fortune 500 companies were IT companies MIS – Management Information Systems MIS – Management Information Systems

INTRODUCTION Telecommuting

Telecommuting Advantages? Advantages? Disadvantages? Disadvantages? Who can telecommute? Who can telecommute? Who cannot telecommute? Who cannot telecommute?

Three Key Resources 1. Information 2. People 3. Information Technology

Information Resource Intellectual asset hierarchy – data, information, business intelligence, knowledge Intellectual asset hierarchy – data, information, business intelligence, knowledge Data Data Information Information Business Intelligence (BI) Business Intelligence (BI) Knowledge Knowledge

Information Resource Your age – a piece of data Information is often aggregated data that has meaning such as average age, youngest and oldest customer, and a histogram of customer ages

Information Resource Business intelligence (BI) – collective information about… Business intelligence (BI) – collective information about… Customers Customers Competitors Competitors Business partners Business partners Competitive environment Competitive environment BI can help you make important, strategic decisions BI can help you make important, strategic decisions

Information Resource BI often combines multiple sets of information – customers, salespeople, and purchases in this case.

Information Resource Knowledge – broad term that can describe many things… Knowledge – broad term that can describe many things… 1. Contextual explanation for business intelligence 2. Actions to take to affect business intelligence 3. Intellectual assets such as patents and trademarks 4. Organizational know-how for things such as best practices

Information Resource – Quality Attributes Timeliness Timeliness When you need it When you need it Describing the right time period Describing the right time period Location (no matter where you are) Location (no matter where you are) Form (audio, text, animation, etc) Form (audio, text, animation, etc) Validity (credibility) Validity (credibility)

Information Resource – Organizational Perspective

Organizational Dimensions of Information Information flows Information flows Upward Upward Downward Downward Horizontal Horizontal Outward/Inward Outward/Inward

Organizational Dimensions of Information Information granularity – extent of detail within the information Information granularity – extent of detail within the information Lower organizational levels? Lower organizational levels? Higher organizational levels? Higher organizational levels?

Organizational Dimensions of Information Internal Internal External External Objective Objective Subjective Subjective

People Resource People are the most important resource in any organization, with a focus on People are the most important resource in any organization, with a focus on Technology literacy Technology literacy Information literacy Information literacy Ethical responsibilities Ethical responsibilities

People Resource Technology-literate knowledge worker – knows how and when to apply technology Technology-literate knowledge worker – knows how and when to apply technology Information-literate knowledge worker Information-literate knowledge worker Can define information needs Can define information needs Knows how and where to obtain information Knows how and where to obtain information Understands information Understands information Acts appropriately based on information Acts appropriately based on information Ethics – principles and standards that guide our behavior toward other people Ethics – principles and standards that guide our behavior toward other people

People Resource - Ethics You always want your actions to fall in Quadrant I – both ethical and legal.

Information Technology Resource Information technology (IT) Information technology (IT) Two categories of technology Two categories of technology Hardware Hardware Software Software

Information Technology – Hardware and Software

Information Technology – Hardware 1. Input device 2. Output device 3. Storage device 4. CPU 5. Telecommunications device 6. Connecting devices

Six Categories of Hardware Keyboard (input) CDs (storage) Video card (connecting) CPU Cable modem (telecommunications) Monitor (output) APPA-27

Information Technology – Software Two types of software: 1. Application software 2. System software Operating system software Operating system software Utility software Utility software

Common Input Devices

Common Output Devices

Common Storage Devices Dinosaurs

Connectors and Ports

Decentralized Computing, Share Information, & Mobile Computing

Decentralized Computing Decentralized computing – an environment in which an organization distributes computing power and locates it in functional business areas as well as on the desktops of knowledge workers Decentralized computing – an environment in which an organization distributes computing power and locates it in functional business areas as well as on the desktops of knowledge workers

Shared Information Shared information – an environment in which an organization’s information is organized in one or more central locations, allowing anyone to access and use it as he or she needs to Shared information – an environment in which an organization’s information is organized in one or more central locations, allowing anyone to access and use it as he or she needs to Necessary because businesses are greatly internally integrated today Necessary because businesses are greatly internally integrated today

Mobile Computing Mobile computing – broad general term describing your ability to use technology to wirelessly connect to and use centrally located information and/or application software Mobile computing – broad general term describing your ability to use technology to wirelessly connect to and use centrally located information and/or application software

IT SYSTEMS IN SUPPORT OF BUSINESS Competitive advantage Competitive advantage Use technology for Use technology for Operational excellence Operational excellence Major business initiatives Major business initiatives Decision making Decision making Organizational transformation Organizational transformation

Systems Support Online transaction processing (OLTP) Online transaction processing (OLTP) Online analytical processing (OLAP) Online analytical processing (OLAP)

Systems Transaction processing system (TPS) Transaction processing system (TPS) Customer self-service system OR Customer Integrated System Customer self-service system OR Customer Integrated System

Systems Management Information System Management Information System Types of Reports Types of Reports Periodic Periodic Summarized Summarized Exception Exception Comparative Comparative Ad hoc Ad hoc

Systems Collaboration System OR Workgroup Support System Collaboration System OR Workgroup Support System Groupware Groupware Team dynamics Team dynamics Group scheduling software Group scheduling software Electronic meeting software Electronic meeting software Videoconferencing software Videoconferencing software Whiteboard software Whiteboard software Document management Document management Applications development Applications development

Systems Decision Support System Decision Support System Artificial Intelligence Artificial Intelligence Executive information system (EIS) Executive information system (EIS)

Executive Information System (EIS)

3-44 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved In Class Team Assignment Fresh out of college, our first job is working for the Alfredson’s grocery food store chain at their headquarters. As marketing analyst, we are asked to determine what is the best way to position the different cereal items on their shelves, so as to maximize revenue (to maximize revenue, we would like to sell expensive cereals more than cheap ones, and we would also like to increase the overall amount of cereal bought by the public). What items of information would we need to track, and for how long, to determine cereal positioning strategies?