1. 1-1 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Chapter 1 THE INFORMATION AGE IN WHICH YOU LIVE Changing the Face of Business

2. 1-2 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Presentation Overview Today’s Economic Environment Today’s Economic Environment Information as a Key Resource Information as a Key Resource People as a Key Resource People as a Key Resource Information Technology as a Key Resource Information Technology as a Key Resource Roles and Goals of Information Technology Roles and Goals of Information Technology

3. 1-3 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Opening Case Study Can Technology Catch You Having An Affair? Technology is pervasive, and often invasive. Technology is pervasive, and often invasive. How can technology be inadvertently used for “good” and “bad” purposes? How can technology be inadvertently used for “good” and “bad” purposes?

4. 1-4 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Information age – a time when knowledge is power. Information age – a time when knowledge is power. Knowledge worker – works with and produces information as a product. Knowledge worker – works with and produces information as a product.  Outnumber all other types of workers by a 4-to-1 margin. Introduction

5. 1-5 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Management information systems (MIS) – deals with the planning for, development, management, and use of information technology tools to help people perform all tasks related to information processing and management. Management information systems (MIS) – deals with the planning for, development, management, and use of information technology tools to help people perform all tasks related to information processing and management. Introduction

6. 1-6 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Today’s Economic Environment To be successful in today’s economic environment, you must: To be successful in today’s economic environment, you must:  Know your competition.  Know your customers.  Work closely with your business partners.  Know your organization inside and out.

7. 1-7 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Today’s Economic Environment The E.conomy Electronic commerce – is commerce, but it is commerce accelerated and enhanced by information technology. Electronic commerce – is commerce, but it is commerce accelerated and enhanced by information technology. Telecommuting – the use of communications technologies to work in a place other than a central location. Telecommuting – the use of communications technologies to work in a place other than a central location. Virtual Workplace – a technology-enabled workplace. No boundaries. Virtual Workplace – a technology-enabled workplace. No boundaries.

8. 1-8 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Today’s Economic Environment The E.conomy Percentage of Sites that Plan to Add Telecommuting

9. 1-9 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Today’s Economic Environment The “Now” Economy Characterized by the immediate access customers have to the ordering of products and services. Characterized by the immediate access customers have to the ordering of products and services. An ATM is an example of a product in the “now” economy. An ATM is an example of a product in the “now” economy.

10. 1-10 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Today’s Economic Environment The “Now” Economy M-commerce – electronic commerce conducted over a wireless device such as a cell phone or personal digital assistant. M-commerce – electronic commerce conducted over a wireless device such as a cell phone or personal digital assistant. Team Work I Want It! (p. 7)

11. 1-11 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Today’s Economic Environment The Global Economy Global economy – one in which customers, businesses, suppliers, distributors, and manufacturers all operate without regard to physical and geographical boundaries. Global economy – one in which customers, businesses, suppliers, distributors, and manufacturers all operate without regard to physical and geographical boundaries. Transnational firms – produce and sell products and services in countries all over the world. Transnational firms – produce and sell products and services in countries all over the world.

12. 1-12 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Today’s Economic Environment The Global Economy

13. 1-13 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Today’s Economic Environment The Arriving Digital Economy Digital economy – marked by the electronic movement of all types of information including physiological information such as: Digital economy – marked by the electronic movement of all types of information including physiological information such as:  Voice recognition  Speech synthesization  Biometrics  Holograms

14. 1-14 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Information as a Key Resource Information is one of the key components of management information systems. Information is one of the key components of management information systems. We are in the “information” age, a time when knowledge is power. We are in the “information” age, a time when knowledge is power.  Knowledge comes from information.

15. 1-15 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Information as a Key Resource Data Versus Information Data – raw facts that describe a particular phenomenon. Data – raw facts that describe a particular phenomenon. Information – data that have a particular meaning within a specific context. Information – data that have a particular meaning within a specific context.

16. 1-16 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Information as a Key Resource Personal Dimensions of Information The three personal dimensions of information include: The three personal dimensions of information include:  Time  Location  Form

17. 1-17 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Information as a Key Resource Personal Dimensions of Information Time dimension Time dimension  When you need it.  Specific time period. Location dimension Location dimension  No matter where you are. Form dimension Form dimension  Useable and understandable.  Free of errors.

18. 1-18 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Information as a Key Resource Organizational Dimensions of Information

19. 1-19 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Information as a Key Resource Organizational Dimensions of Information Strategic management – provides overall direction and guidance. Strategic management – provides overall direction and guidance. Tactical management – develops the goals and strategies. Tactical management – develops the goals and strategies. Operational management – manages and directs the day-to-day operations. Operational management – manages and directs the day-to-day operations. Nonmanagement employees – perform daily activities. Nonmanagement employees – perform daily activities.

20. 1-20 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Information as a Key Resource Organizational Dimensions of Information The four flows of information include: The four flows of information include:  Upward – describes the current state of the organization based on its daily transactions.  Downward – consists of the strategies, goals, and directives that originate at one level and are passed to lower levels.

21. 1-21 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Information as a Key Resource Organizational Dimensions of Information Information flows continued Information flows continued  Horizontal – between functional business units and work teams.  Outward – information that is communicated to customers, suppliers, distributors, and other partners for the purpose of doing business.

22. 1-22 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Information as a Key Resource Organizational Dimensions of Information Information granularity – refers to the extent of detail within the information. Information granularity – refers to the extent of detail within the information.

23. 1-23 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Information as a Key Resource Organizational Dimensions of Information What the information describes can include: What the information describes can include:  Internal information – specific operational aspects of the organization.  External information – the environment surrounding the organization.  Objective information – something that is known.  Subjective information – something that is unknown.

24. 1-24 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved People as a Key Resource Information and Technology Literacy The single most important resource in any organization is its people. The single most important resource in any organization is its people. Technology-literate knowledge worker – a person who knows how and when to apply technology. Technology-literate knowledge worker – a person who knows how and when to apply technology.

25. 1-25 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved People as a Key Resource Information and Technology Literacy Information-literate knowledge workers: Information-literate knowledge workers:  Define what information they need.  Know how and where to obtain information.  Understand the information.  Act appropriately based on the information to help the organization achieve the greatest advantage.

26. 1-26 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved People as a Key Resource Your Ethical Responsibilities Ethics – the principals and standards that guide our behavior toward other people. Ethics – the principals and standards that guide our behavior toward other people. Ethics are different from laws as they are a matter of personal interpretation. Ethics are different from laws as they are a matter of personal interpretation. Ethics have a right and wrong outcome according to different people. Ethics have a right and wrong outcome according to different people.

27. 1-27 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved People as a Key Resource Your Ethical Responsibilities Hacker – very knowledgeable computer user who uses his or her knowledge to invade other people’s computers. Hacker – very knowledgeable computer user who uses his or her knowledge to invade other people’s computers.

28. 1-28 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved People as a Key Resource Your Ethical Responsibilities On Your OwnE-Mail: Electronic Mail or Expensive Mail? (p. 16)

29. 1-29 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Information Technology as a Key Resource Information technology – any computer-based tool that people use to work with information and support the information and information- processing needs of an organization. Made up of: Information technology – any computer-based tool that people use to work with information and support the information and information- processing needs of an organization. Made up of:  Hardware – physical devices that make up a computer.  Software – set of instructions that the hardware executes to carry out a specific task.

30. 1-30 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved IT as a Key Resource Key Technology Categories Hardware categories Hardware categories  Input devices  Output devices  Storage devices  Central processing unit  Random access memory  Telecommunications devices  Connecting devices On Your Own Identifying Hardware And Software (p. 19)

31. 1-31 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved IT as a Key Resource Key Technology Categories Software categories Software categories  Application software  Operating system software  Utility software ( (See Figure 1.6 on page 18 for a complete overview of software categories.)

32. 1-32 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved IT as a Key Resource Decentralized Computing and Shared Information

33. 1-33 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved IT as a Key Resource Decentralized Computing and Shared Information Decentralized computing – environment in which an organization splits computing power and locates it in functional business areas and on knowledge workers’ desktops. Decentralized computing – environment in which an organization splits computing power and locates it in functional business areas and on knowledge workers’ desktops. Shared information – environment in which an organization’s information is organized in one central location. Shared information – environment in which an organization’s information is organized in one central location.

34. 1-34 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Roles and Goals of Information Technology 1. Increase employee productivity 2. Enhance decision making 3. Improve team collaboration 4. Create business partnerships and alliances 5. Enable global reach 6. Facilitate organizational transformation

35. 1-35 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Roles and Goals of IT 1 - Increase Employee Productivity Online transaction processing (OLTP) – the gathering of input information, processing that information, and updating existing information to reflect the gathered and processed information. Online transaction processing (OLTP) – the gathering of input information, processing that information, and updating existing information to reflect the gathered and processed information.

36. 1-36 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Roles and Goals of IT 1 - Increase Employee Productivity Transaction processing system (TPS) – processes transactions that occur within an organization. Transaction processing system (TPS) – processes transactions that occur within an organization. Customer-integrated system (CIS) – An extension of a TPS that places technology in the hands of an organization’s customers and allows them to process their own transactions. Customer-integrated system (CIS) – An extension of a TPS that places technology in the hands of an organization’s customers and allows them to process their own transactions.

37. 1-37 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Roles and Goals of IT 1 - Increase Employee Productivity

38. 1-38 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Roles and Goals of IT 2 - Enhance Decision Making Online analytical processing (OLAP) – the manipulation of information to support decision making. Online analytical processing (OLAP) – the manipulation of information to support decision making. Artificial intelligence – the science of making machines imitate human thinking and behavior. Artificial intelligence – the science of making machines imitate human thinking and behavior. Neural network – an artificial intelligence that is capable of finding and differentiating patterns. Neural network – an artificial intelligence that is capable of finding and differentiating patterns.

39. 1-39 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Roles and Goals of IT 2 - Enhance Decision Making Executive information system (EIS) – a highly interactive IT system that allows you to first view highly summarized information and then choose how you would like to see greater detail, which may alert you to potential problems or opportunities. Executive information system (EIS) – a highly interactive IT system that allows you to first view highly summarized information and then choose how you would like to see greater detail, which may alert you to potential problems or opportunities.

40. 1-40 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Roles and Goals of IT 3 - Improve Team Collaboration Collaboration system – designed specifically to improve the performance of teams by supporting the sharing and flow of information. Collaboration system – designed specifically to improve the performance of teams by supporting the sharing and flow of information. Groupware – software components that supports the collaborative efforts of a team. Groupware – software components that supports the collaborative efforts of a team.

41. 1-41 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Roles and Goals of IT 3 - Improve Team Collaboration Groupware contains support for: Groupware contains support for:  Team dynamics  Document management Group document database – acts as a powerful storage facility for organizing and managing all documents related to specific teams. Group document database – acts as a powerful storage facility for organizing and managing all documents related to specific teams.  Applications development

42. 1-42 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Roles and Goals of IT 4 - Create Business Partnerships and Alliances Interorganizational system (IOS) – automates the flow of information between organizations to support the planning, design, development, production, and delivery of products and services. Interorganizational system (IOS) – automates the flow of information between organizations to support the planning, design, development, production, and delivery of products and services. Team Work Finding Business Partners and Alliances on The Web (p. 26)

43. 1-43 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Roles and Goals of IT 4 - Create Business Partnerships and Alliances Electronic data interchange (EDI) – the direct computer-to-computer transfer of transaction information contained in standard business documents, such as invoices and purchase orders, in a standard format. Electronic data interchange (EDI) – the direct computer-to-computer transfer of transaction information contained in standard business documents, such as invoices and purchase orders, in a standard format.

44. 1-44 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Roles and Goals of IT 5 - Enable Global Reach Business today is global business. Business today is global business. Culture – the collective personality of a nation or society, encompassing language, traditions, currency, religion, history, music, and acceptable behavior, among other things. Culture – the collective personality of a nation or society, encompassing language, traditions, currency, religion, history, music, and acceptable behavior, among other things.

45. 1-45 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Roles and Goals of IT 6 - Facilitate Organizational Transformation Organizational transformation is necessary to respond to the ever-changing needs (and wants) of today’s marketplace. Organizational transformation is necessary to respond to the ever-changing needs (and wants) of today’s marketplace. Blockbuster now provides movies on a pay-per-view rental basis through cable. Blockbuster now provides movies on a pay-per-view rental basis through cable.

46. 1-46 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Closing Case Study One You and Your Information Information travels with you and is captured and stored by a number of organizations. Information travels with you and is captured and stored by a number of organizations. Trust and accuracy of information is important. Trust and accuracy of information is important. Do you trust organizations to maintain accurate information about you? Do you trust organizations to maintain accurate information about you?

47. 1-47 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Closing Case Study Two How Much of Your Personal Information Do You Want Businesses to Know? Businesses need information about you to provide the best possible products and services. Businesses need information about you to provide the best possible products and services. How much of your information do you want others to be able to access? How much of your information do you want others to be able to access?

48. 1-48 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Summary Student Learning Outcomes 1. Describe the information age and the role of knowledge workers within it. 2. Define management information systems (MIS). 3. Describe key factors shaping today’s economic environment. 4. Validate information as a key resource and describe both personal and organizational dimensions of information.

49. 1-49 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Summary Student Learning Outcomes 5. Define how people are the most important organizational resource, their information and technology literacy challenges, and their ethical responsibilities. 6. Describe the important characteristics of information technology (IT) as a key organizational resource. 7. List and describe the six roles and goals of information technology in any organization.

50. 1-50 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Summary Assignments & Exercises 1. Surveying the global economy 2. Finding trust in TRUSTe 3. Reporting on Internet statistics by business sector 4. Learning about an MIS major 5. Reviewing the 100 best companies to work for 6. Redefining business operations through IT innovation

51. 1-51 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Visit the Web to Learn More www.mhhe.com/haag Job databases Job databases Electronic resumes Electronic resumes Searching newspapers for job ads Searching newspapers for job ads Locating internships Locating internships Interviewing and negotiating tips Interviewing and negotiating tips Organization sites and job postings Organization sites and job postings Employment opportunities with the government Employment opportunities with the government