1. McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, All Rights Reserved Chapter 1 The Information Age in Which You Live

2. 1-2 STUDENT LEARNING OUTCOMES 1.Define MIS and IT and describe their relationship. 2.Validate information as a key resource and describe both personal and organizational dimensions of information. 3.Explain why people are the most important organizational resource, define their information and technology literacy challenges, and discuss their ethical responsibilities.

3. 1-3 STUDENT LEARNING OUTCOMES 4.Describe the important characteristics of IT as a key organizational resource. 5.Define competitive advantage and illustrate the role of IT in supporting competitive advantages and business vision. 6.Discuss the impacts IT can and will have on your life.

4. 1-4 Disruptive Technologies Disrupt Blockbuster Late Fees Disruptive technologies – video-on-demand, video rental kiosks, etcDisruptive technologies – video-on-demand, video rental kiosks, etc Netflix – rent from the Web and keep as long as you wantNetflix – rent from the Web and keep as long as you want

5. 1-5 Disruptive Technologies Disrupt Blockbuster Late Fees Blockbuster solution…Blockbuster solution… –No more late fees (will forgo $300 million annually because of this) –Keep for a week –After a week, either buy movie or pay $1.25 restocking fee

6. 1-6 Disruptive Technologies Disrupt Blockbuster Late Fees Class poll…Class poll… 1.Favorite method of renting videos? 2.Average length (in days) you keep a movie? 3.Watch the movie the day you get it?

7. 1-7 Disruptive Technologies Disrupt Blockbuster Late Fees Have you moved away from Blockbuster? To what?Have you moved away from Blockbuster? To what? Will Blockbuster’s no-late fee model help? Why or why not?Will Blockbuster’s no-late fee model help? Why or why not? Will real video-on-demand through cable/satellite end “renting” movies?Will real video-on-demand through cable/satellite end “renting” movies?

8. 1-8 INTRODUCTION Information age – a time when knowledge is powerInformation age – a time when knowledge is power Knowledge worker – you; works with and produces information as a productKnowledge worker – you; works with and produces information as a product Outnumber all others by at least 4-to-1 marginOutnumber all others by at least 4-to-1 margin

9. 1-9 INTRODUCTION MIS – planning for, developing, managing, and using IT tools to help people perform their workMIS – planning for, developing, managing, and using IT tools to help people perform their work IT – computer-based tools that people use to work with informationIT – computer-based tools that people use to work with information –Traditional computer (notebook, PC, etc) –Bar code scanner –Biometric fingerprint reader

10. 1-10 INTRODUCTION Online booking revenues are on the rise while non-online booking revenues remain flat

11. 1-11 INTRODUCTION There is also a dark side to technologyThere is also a dark side to technology

12. 1-12 INTRODUCTION Three key resources in MISThree key resources in MIS 1.Information 2.People 3.Technology This text is about MIS and information, people, and technology working together to create a competitive advantageThis text is about MIS and information, people, and technology working together to create a competitive advantage

13. 1-13 INFORMATION AS A KEY RESOURCE Data – raw factsData – raw facts Information – data that has meaningInformation – data that has meaning –Weather – when deciding what to wear

14. 1-14 INFORMATION AS A KEY RESOURCE Business intelligence – knowledge about competitors, suppliers, your own internal operations, etcBusiness intelligence – knowledge about competitors, suppliers, your own internal operations, etc –Combined forms of information to create real knowledge –Encompasses everything that affects your business –Helps you make strategic business decisions

15. 1-15 INFORMATION AS A KEY RESOURCE PerspectivesPerspectives 1.Personal dimensions of information 2.Organizational dimensions of information

16. 1-16 Personal Dimensions of Information

17. 1-17 Personal Dimensions of Information TimeTime –When you need information –Describing the right time period Location – no matter where you areLocation – no matter where you are –Intranet – internal organizational intranet FormForm –Usable, understandable, accurate

18. 1-18 Organizational Dimensions of Information

19. 1-19 Organizational Dimensions of Information Information flowsInformation flows Information granularityInformation granularity What information describesWhat information describes

20. 1-20 Information Flows within an Organization Upward – current state of organization based on transactionsUpward – current state of organization based on transactions Downward – Strategies, goals, directivesDownward – Strategies, goals, directives Horizontal – between functional units, work teamsHorizontal – between functional units, work teams Outward/inward – to/from suppliers, customers, distributors, etcOutward/inward – to/from suppliers, customers, distributors, etc

21. 1-21 Information Granularity Information granularity – extent of detail within informationInformation granularity – extent of detail within information Lower org levels – tremendous detail (fine)Lower org levels – tremendous detail (fine) Upper org levels – summarized information (coarse)Upper org levels – summarized information (coarse)

22. 1-22 What Information Describes Internal – operational aspects of organizationInternal – operational aspects of organization External – environment surrounding organizationExternal – environment surrounding organization Objective – something that is knownObjective – something that is known Subjective – something that is unknownSubjective – something that is unknown

23. 1-23 PEOPLE AS A KEY RESOURCE YouYou Using technology to work with informationUsing technology to work with information Technology-literate knowledge workerTechnology-literate knowledge worker Information-literate knowledge workerInformation-literate knowledge worker Your ethical responsibilitiesYour ethical responsibilities

24. 1-24 Technology-Literate Knowledge Worker Technology-literate knowledge worker – knows how and when to apply technologyTechnology-literate knowledge worker – knows how and when to apply technology This bookThis book –Chapters help you with “when” –Appendix A – personal hardware and software technologies –Appendix B – basics of networks

25. 1-25 Information-Literate Knowledge Worker Information-literate knowledge worker…Information-literate knowledge worker… –Defines what information is needed –Knows how and where to obtain information –Understands information –Acts appropriately based on information

26. 1-26 Your Ethical Responsibilities Ethics – principles and standards that guide behavior toward other peopleEthics – principles and standards that guide behavior toward other people Ethics and laws are differentEthics and laws are different Laws – require/prohibit actionLaws – require/prohibit action Ethics – matter of personal interpretationEthics – matter of personal interpretation

27. 1-27 Your Ethical Responsibilities You always want to be here

28. 1-28 IT AS A KEY RESOURCE Information technology (IT) - computer-based tools that people use to work with informationInformation technology (IT) - computer-based tools that people use to work with information Two categories of technologyTwo categories of technology –Hardware –Software Ubiquitous computingUbiquitous computing

29. 1-29 Key Technology Categories

30. 1-30 Hardware Hardware – physical devices of a computerHardware – physical devices of a computer 1.Input devices 2.Output devices 3.Storage devices 4.CPU & RAM 5.Telecommunications devices 6.Connecting devices

31. 1-31 Hardware Input device – enter information and commandsInput device – enter information and commands Output device – receive the resultsOutput device – receive the results Storage device – stores informationStorage device – stores information CPU – interprets and executes software instructionsCPU – interprets and executes software instructions RAM – temporarily holds information and softwareRAM – temporarily holds information and software

32. 1-32 Hardware Telecommunications device – sends and receives information in a networkTelecommunications device – sends and receives information in a network Connecting device – connects pieces of hardware (e.g., cable, port)Connecting device – connects pieces of hardware (e.g., cable, port) Appendix A covers hardware in detailAppendix A covers hardware in detail

33. 1-33 Software Application software – solves specific problems, performs specific tasksApplication software – solves specific problems, performs specific tasks System software – handles technology management tasks and coordinates all hardwareSystem software – handles technology management tasks and coordinates all hardware

34. 1-34 Software Two types of system softwareTwo types of system software 1.Operating system software – controls application software, manages hardware devices 2.Utility software – additional functionality to your operating system (e.g., anti-virus software) Appendix A covers more on softwareAppendix A covers more on software

35. 1-35 Ubiquitous Computing Ubiquitous computing – concept; technology support anytime, anywhere, with access to any needed informationUbiquitous computing – concept; technology support anytime, anywhere, with access to any needed information 1.Decentralized computing 2.Shared information 3.Mobile computing

36. 1-36 Ubiquitous Computing

37. 1-37 Ubiquitous Computing Decentralized computing – Distributes computing power within the organization to knowledge workersDecentralized computing – Distributes computing power within the organization to knowledge workers Shared information – allows anyone access to needed informationShared information – allows anyone access to needed information

38. 1-38 Ubiquitous Computing Mobile computing – wireless technology to connect to needed resources and informationMobile computing – wireless technology to connect to needed resources and information M-commerce – electronic commerce conducted wirelesslyM-commerce – electronic commerce conducted wirelessly

39. 1-39 INFORMATION TECHNOLOGY BUSINESS VISION IT use must support business visionIT use must support business vision IT strategy must be integrated with business visionIT strategy must be integrated with business vision Competitive advantage – providing product/service that customers value more than the competitionCompetitive advantage – providing product/service that customers value more than the competition

40. 1-40 INFORMATION TECHNOLOGY BUSINESS VISION Top line versus bottom lineTop line versus bottom line Database supportDatabase support Decision-making supportDecision-making support Business initiative supportBusiness initiative support Run, grow, transformRun, grow, transform

41. 1-41 Top Line Versus Bottom Line

42. 1-42 Top Line Versus Bottom Line Top line – competitive advantage focus to increase revenueTop line – competitive advantage focus to increase revenue Bottom line – competitive advantage focus to decrease costsBottom line – competitive advantage focus to decrease costs IT can support both top-line and bottom-line initiativesIT can support both top-line and bottom-line initiatives

43. 1-43 Top Line Versus Bottom Line Customer self-service system – technology in hands of customers to enable them to process their own transactionsCustomer self-service system – technology in hands of customers to enable them to process their own transactions –ATMs – attract new customers with free use (top line) –ATMs – reduce costs of tellers (bottom line) Transaction processing system (TPS) – system that processes transactionsTransaction processing system (TPS) – system that processes transactions

44. 1-44 Database Support

45. 1-45 Database Support Database – stores tremendous detail on every transaction/eventDatabase – stores tremendous detail on every transaction/event DBMS – software bridge between information/software system and information/youDBMS – software bridge between information/software system and information/you

46. 1-46 Database Support You need knowledge of databases and DBMSs for careerYou need knowledge of databases and DBMSs for career Chapter 3 – database conceptsChapter 3 – database concepts

47. 1-47 Decision-Making Support Online transaction processing (OLTP) – gathering, processing, and updating information for a transactionOnline transaction processing (OLTP) – gathering, processing, and updating information for a transaction Online analytical processing (OLAP) – manipulating information to support decision making (focus of Chapters 3 & 4)Online analytical processing (OLAP) – manipulating information to support decision making (focus of Chapters 3 & 4) –Executive information system –Collaboration system –Artificial intelligence

48. 1-48 Decision-Making Support Executive information system (EIS) – supports “drilling down” in information to find problems/opportunitiesExecutive information system (EIS) – supports “drilling down” in information to find problems/opportunities

49. 1-49 Decision-Making Support Collaboration system – improves team performance by supporting sharing and flow of informationCollaboration system – improves team performance by supporting sharing and flow of information Artificial intelligence (AI) – science of imitating human thinking and behaviorArtificial intelligence (AI) – science of imitating human thinking and behavior –Genetic algorithm – See Industry Perspective on p. 33

50. 1-50 Business Initiative Support IT use in business is all about enabling initiativesIT use in business is all about enabling initiatives This is the focus of Chapter 2This is the focus of Chapter 2 Two examplesTwo examples 1.Supply chain management 2.Electronic data interchange

51. 1-51 Business Initiative Support Supply chain management (SCM) – tracks inventory and informationSupply chain management (SCM) – tracks inventory and information SCM system – IT that supports SCM business initiativeSCM system – IT that supports SCM business initiative

52. 1-52 Business Initiative Support SCM systems support EDISCM systems support EDI Electronic data interchange (EDI) – computer-to-computer transfer of information without human interventionElectronic data interchange (EDI) – computer-to-computer transfer of information without human intervention –Standard documents such as purchase orders –Bottom-line initiative to reduce costs of ordering, shipping, paying, etc

53. 1-53 Run, Grow, Transform Framework for percentage allocation of IT dollars toward…Framework for percentage allocation of IT dollars toward… –Run – optimizing activity execution (bottom line) –Grow – increasing market reach, product offerings, etc (top line) –Transform – innovating business processes Application of this framework in Chapter 2Application of this framework in Chapter 2

54. 1-54 IT IN YOUR LIFE IT is pervasiveIT is pervasive You need IT knowledge to succeed (your career)You need IT knowledge to succeed (your career) You need IT knowledge to protect yourself as well (ethics, security, & privacy)You need IT knowledge to protect yourself as well (ethics, security, & privacy)

55. 1-55 IT in Your Career Learn how to use IT to…Learn how to use IT to… –Share information –Work wirelessly –Support your decision-making efforts –Increase personal productivity

56. 1-56 Ethics, Security, & Privacy All very importantAll very important Security and privacy – protect yourself from…Security and privacy – protect yourself from… –Spyware –Identity theft –Focus of Chapter 8

57. 1-57 Ethics, Security, & Privacy Spyware – bad software that collects information about you and your computer and sends it to someone elseSpyware – bad software that collects information about you and your computer and sends it to someone else –11.5 million incidents in 2004 Identity theft – forging someone’s identity for purpose of fraudIdentity theft – forging someone’s identity for purpose of fraud –$100 billion lost in U.S in 2003

58. 1-58 Ethics, Security, & Privacy Keep anti-virus software up to dateKeep anti-virus software up to date Use only secure Web sites for financial transactionsUse only secure Web sites for financial transactions Never give out personal information on WebNever give out personal information on Web Change your password frequentlyChange your password frequently Never assume high ethical standards of other peopleNever assume high ethical standards of other people

59. 1-59 CAN YOU… 1.Define MIS and IT and describe their relationship. 2.Validate information as a key resource and describe both personal and organizational dimensions of information. 3.Explain why people are the most important organizational resource, define their information and technology literacy challenges, and discuss their ethical responsibilities.

60. 1-60 CAN YOU… 4.Describe the important characteristics of IT as a key organizational resource. 5.Define competitive advantage and illustrate the role of IT in supporting competitive advantages and business vision. 6.Discuss the impacts IT can and will have on your life.