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Chapter 1 The Importance of MIS
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“But Today, They’re Not Enough.”
Jennifer lacks skills AllRoad Parts needs Abstract reasoning skills. Systems thinking skills. Collaboration skills. Experimentation skills. What's not good enough? What should Jennifer have done differently? To what extent are the four skills required in your education so far. How do you feel about working with ambiguity? Copyright © 2016 Pearson Education, Inc.
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Copyright © 2016 Pearson Education, Inc.
Study Questions Q1: Why is Introduction to MIS the most important class in the business school? Q2: What is MIS? Q3: How can you use the five-component model? Q4: Why is the difference between information technology and information systems important? Q5: What is information? Q6: What are necessary data characteristics? Q7: 2025? Copyright © 2016 Pearson Education, Inc.
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Copyright © 2016 Pearson Education, Inc.
Q1: Why Is Introduction to MIS the Most Important Class in the Business School? Moore’s Law “The number of transistors per square inch on an integrated chip doubles every 18 months.” Discuss what happens when those costs are essentially zero. Copyright © 2016 Pearson Education, Inc.
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Computer Price/Performance Ratio Historical Trend
You needn’t care how fast of a computer your company can buy for $100. Copyright © 2016 Pearson Education, Inc.
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Some Consequences • Google+ • Pintrest • Vine • Zulily • Pandora • Twitter • LinkedIn • Tableau None prominent in 2010, most didn’t exist in 2010 Will these be big in 2015? Or will be new ones? Copyright © 2016 Pearson Education, Inc.
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What Are the Cost Effective Business Applications of Facebook, Twitter, or Whatever Will Soon Appear? Are Facebook’s “Like” and Twitter’s “Follow” applications cost- effective? Do they generate revenue worth and expense of running them? What about cloud apps? Marketing people, not in a technical specialist, must answer those questions. Copyright © 2016 Pearson Education, Inc.
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How Can I Attain Job Security?
Only job security is a marketable skill and courage to use it. Any routine skill can and will be outsourced to lowest bidder. Message: Develop strong non-routine cognitive skills. Can today's non-routine skills become routine in a few years. Identify some non-routine job skills. Copyright © 2016 Pearson Education, Inc.
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What Is a Marketable Skill?
Rapid technological change and increased international competition place spotlight on workforce skills and preparation, particularly ability to adapt to changing technology and shifting demand. How are abstract thinking and system thinking related? Copyright © 2016 Pearson Education, Inc.
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How Can Intro to MIS Help You Learn Non-Routine Skills?
Abstract Reason Ability to make and manipulate models. Learn five components of an information system model. Chapter 5: How to create data models. Chapter 10: How to make process models. Abstract thinking involves using models. One or more models in every course topic and book chapter. Copyright © 2016 Pearson Education, Inc.
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How Can Intro to MIS Help You Learn Non-Routine Skills? (cont’d)
Systems Thinking Ability to model system components, connect inputs and outputs among components to reflect structure and dynamics of system observed. Ability to discuss, illustrate, critique systems; compare alternative systems; apply different systems to different situations. These skills are essential for business professionals. Copyright © 2016 Pearson Education, Inc.
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How Can Intro to MIS Help You Learn Non-Routine Skills? (cont’d)
Collaboration Two or more people working together to achieve a common goal, result, or work product. Chapter 2 discusses collaboration skills and illustrates several sample collaboration information systems. Every chapter of this book includes collaboration exercises that you may be assigned in class or as homework. Copyright © 2016 Pearson Education, Inc.
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How Can Intro to MIS Help You Learn Non-Routine Skills? (cont’d)
Ability to Experiment Make reasoned analysis of an opportunity; developing and evaluating possible solutions. “I’ve never done this before.” “I don’t know how to do it.” “But will it work?” “Is it too weird for the market?” Avoid "Fear of failure paralyzes". Use features and functions of Microsoft Excel, Access not used before. Collaborate using Microsoft SharePoint, Google Docs and Spreadsheets, or other collaboration tools. Think about Allroad's 3D printing problem. What are risks? Should they proceed? Copyright © 2016 Pearson Education, Inc.
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Job Growth over the Past Twenty Years
One in two recent college graduates either unemployed or underemployed, but, not in all job categories. Will these trends change over the next 20 years? Copyright © 2016 Pearson Education, Inc.
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Bottom Line of MIS Course
Ethics Guides help students to think about ethical dilemmas and clarify their values so they can respond appropriately to ethical challenges. Copyright © 2016 Pearson Education, Inc.
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Q2: What Is MIS? Key elements Management and use Information systems Strategies Goal of MIS Managing IS to achieve business strategies Copyright © 2016 Pearson Education, Inc.
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What Is MIS (cont’d) Management Develop, maintain, adapt by: Creating an information system that meets your needs, take an active role in system’s development. Why? Business professionals use cognitive skills to understand business needs and requirements. Copyright © 2016 Pearson Education, Inc.
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Components of an Information System?
Components interact to produce information Identify IS components of your university's online registration system. This framework appears throughout the textbook. Copyright © 2016 Pearson Education, Inc.
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Development and Use of Information Systems
Business professionals need to: Take active role to ensure systems meet their needs. Understand how IS is constructed. Consider users’ needs during development. Learn how to use the IS ancillary (security, backups). Copyright © 2016 Pearson Education, Inc.
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Achieving Strategies Information systems exist to help people achieve business strategies. “What is the purpose of our Facebook page?” “What is it going to do for us?” “What is our policy for employees’ contributions?” “What should we do about critical customer reviews?” “Are the costs of maintaining the page sufficiently offset by the benefits?” Chapter 3 addresses the relationship between information systems and strategy in more depth. Chapter 8 addresses social media and strategy specifically. Copyright © 2016 Pearson Education, Inc.
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Q3: How Can You Use the Five-Component Model?
Automation moves routine jobs to the computer side. Copyright © 2016 Pearson Education, Inc.
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Characteristics of the Five Components
Most Important Component YOU! Your cognitive skills determine quality of your thinking, ability to conceive information from data. Information is value you add to information systems. All IS components must work together. Copyright © 2016 Pearson Education, Inc.
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Characteristics of the Five Components (cont'd)
High-tech versus low-tech information systems. Understanding scope of new information systems. Components ordered by difficulty and disruption. Move features of the IS component model. Copyright © 2016 Pearson Education, Inc.
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Why Is the Difference Between Information Technology and Information Systems Important to You? Avoid a common mistake: Cannot buy an IS. Can buy, rent, lease hardware, software, and databases, and predesigned procedures. People execute procedures to employ new IT. Use of a new system requires training, overcoming employees’ resistance, and managing employees as they use new system. Use example of an organization developing a Facebook page. Facebook provides hardware, software, database structures, and standard procedures. You provide content, custom procedures, training and managing your employees. Copyright © 2016 Pearson Education, Inc.
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So What? What’s Your Number?
Sum Costs : Tuition and textbooks Housing cost (dorm or rent) Food and entertainment Transportation and other fees Computing equipment, supplies, etc. Divide by total number of credit hours you're taking. Multiply cost per hour by length of class (1 hr., 1.5 hrs., 3 hrs.) = Cost per class meeting Use cost-benefit analysis. Copyright © 2016 Pearson Education, Inc.
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So What? What’s Your Number? (cont'd )
Assume you learned: Need to assess, evaluate, and apply emerging information systems technology to business. Marketable skills: abstraction, systems thinking, collaboration, and experimentation. Information systems five components: hardware, software, data, procedures, people. Might ask what potential benefits (e.g., graduating, getting a job, salary, career advancement, managing a business) they might get from learning these three things. Copyright © 2016 Pearson Education, Inc.
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Q4: Why Is the Difference Between IT and IS Important to You?
Information technology drives development of new information systems. Information technology (IT) Products Methods Inventions Standards IT components = Hardware + Software + Data IS = IT + Procedures + People Copyright © 2016 Pearson Education, Inc.
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Q5: What Is Information? Definitions vary: Knowledge derived from data, where data are recorded facts or figures. Data presented in a meaningful context. Processed data, or data processed by summing, ordering, averaging, grouping, comparing, or other similar operations. A difference that makes a difference. Think of examples of each definition. Copyright © 2016 Pearson Education, Inc.
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Where Is Information? Graph is not, itself, information. Graph is data you and others perceive, use to conceive information. Ability to conceive information from data determined by cognitive skills. People perceive different information from same data. Is information created in your mind? Copyright © 2016 Pearson Education, Inc.
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Amazon.com Stock Price and Net Income
Does that graph contain information? Copyright © 2016 Pearson Education, Inc.
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Q6: What Are Necessary Data Characteristics?
Give examples Copyright © 2016 Pearson Education, Inc.
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Ethics Guide: Ethics and Professional Responsibility
Use Kant’s categorical imperative, to explore ethical issues concerning data displays that deceive. Practice applying the difference between data and information. Which graph do you present? Copyright © 2016 Pearson Education, Inc.
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Immanuel Kant Categorical imperative One should behave only in a way that one would want the behavior to be a universal law. Are you willing to publish your behavior to the world? How do you want other people behave? Copyright © 2016 Pearson Education, Inc.
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Duty Necessity to act in accordance with categorical imperative. Perfect duty - behavior must always be met. (Not lying) Imperfect duty - a action praiseworthy, but not required. Giving to charity; developing your business skills and abilities. Copyright © 2016 Pearson Education, Inc.
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Imperfect Duty of Business Professionals
Cultivating your talent is an imperfect duty—professional responsibility. Obtaining skills necessary to accomplish your job. Continuing to develop business skills and abilities throughout your careers. Copyright © 2016 Pearson Education, Inc.
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Q7: 2025? Huge networks of computers to process image data in real time. What does that mean for privacy? Where are business opportunities? Computers-in-a-product Will people still go to work? Will people be employees of organizations? Will classrooms be needed? Everyday items now have embedded computers to collect data and interact over the Internet. Look for opportunities to include networked computers into products you’re making, marketing, or selling. Who will be the big winners? Students. Publishers will sell innovative content over the Kindles-to-be that could eliminate used books. Students will pay $40 instead of $140 for a textbook, while book resellers will lose. If you can learn on your own, why go to a traditional campus or classroom when you could learn from an online class for $3,500 per year? Copyright © 2016 Pearson Education, Inc.
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Security Guide: Password Etiquette
Never write down your password. Never ask someone for their password. Never give your password to someone. “do-si-do” move—moving away so another person can enter password privately—common professional practice. You are a protector of your employer's information system, customer, supplier, and your personal data. Copyright © 2016 Pearson Education, Inc.
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Strong Passwords 10+ characters. Does not contain your user name, real name, or company name. Does not contain a complete dictionary word in any language. Different from previous passwords used. Contains both upper- and lowercase letters, numbers, and special characters (such as ˜ # $ % ^; &; * ( ) _ +; – =; { } | [ ] \ : “ ; ’ <; >;? , . /) One technique for creating memorable, strong passwords is to base them on the first letter of the words in a phrase. Copyright © 2016 Pearson Education, Inc.
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Guide: Five-Component Careers
GOALS Motivate students for study in this course and in others by reminding them of the need to prepare for jobs now. Employment will not necessarily be easy. Broaden students’ perspectives about MIS careers. Many exciting jobs other than programmer or hardware specialist exist. Make students aware that a lot of interesting jobs that require MIS skills are not necessarily “computer” jobs. Professional sales is one, for example. Reinforce the five-component model and show students another way they can use it to guide their thinking. Copyright © 2016 Pearson Education, Inc.
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Active Review Q1: Why is Introduction to MIS the most important class in the business school? Q2: What is MIS? Q3: How can you use the five-component model? Q4: Why is the difference between information technology and information systems important? Q5: What is information? Q6: What are necessary data characteristics? Q7: 2025? Copyright © 2016 Pearson Education, Inc.
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Copyright © 2016 Pearson Education, Inc.
Case Study 1: zulily What is their business model? Sells to mothers: primarily children’s clothes and toys, women’s clothes, accessories, and décor items. Use information technology to provide entertaining shopping experience to mothers, name brand goods, unique and difficult-to-find off-brands, at substantial discounts. 45% of sales occur over mobile devices. Curated sales. Point of case: You should learn to assess, evaluate, and apply emerging information technology to business. Copyright © 2016 Pearson Education, Inc.
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Case Study 1: zulily (cont'd.)
Effects of curated sales Copyright © 2016 Pearson Education, Inc.
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How They Do It Buyers identify goods to be sold, negotiate with vendors. Photographs sample items in-house, write ad copy. Group items for three-day sales events. After event closes, zulily orders items from vendor, receives, packages, and ships to customers. (maintains no inventory). Vulnerable to vendors errors and mistakes. Copyright © 2016 Pearson Education, Inc.
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Use of Technology Internet, mobile technology compatibility. Developed a proprietary technology platform to handle. enormous spikes in web processing demand. Extensive data collection and analytics capabilities. Copyright © 2016 Pearson Education, Inc.
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Growth-Management Problems
“To support continued growth, we must effectively integrate, develop and motivate a large number of new employees, while maintaining our corporate culture. In particular, we intend to continue to make substantial investments to expand our merchandising and technology personnel.” Copyright © 2016 Pearson Education, Inc.
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Copyright © 2016 Pearson Education, Inc.
Learning from zulily Founders developed innovative application of information systems technology. Applied it to a business opportunity. Managerial skill to develop that idea. Use questions at end of case Copyright © 2016 Pearson Education, Inc.
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Copyright © 2016 Pearson Education, Inc.
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