McGraw-Hill/Irwin

2005 The McGraw-Hill Companies, All rights reserved

CHAPTER 1

THE INFORMATION AGE IN WHICH YOU LIVE

Changing the Face of Business
McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, All rights reserved

OPENING CASE STUDY

Pay-Per-Tune Generation and Disruptive Technologies Rock the Record Industry Since 1999, revenues in the recording industry have been on the decline Napster and other illegal uses of technologies are partially to blame But the technology isnt bad The way people use it can be
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OPENING CASE STUDY

Disruptive technologies (MP3 players and the like in this case) can dramatically change the landscape of business Your organization must constantly transform itself to compete and survive

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STUDENT LEARNING OUTCOMES

1. Define MIS and IT and describe their relationship 2. Validate information personally and organizationally as a key resource 3. Explain why people are the most important organizational resource

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STUDENT LEARNING OUTCOMES

4. Describe IT as a key organizational resource 5. Define competitive advantage and the role of IT to achieve a competitive advantage 6. Discuss how IT can and will impact your life

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INTRODUCTION

Information age a time when knowledge is power Knowledge worker works with and produces information as a product Outnumber all other types of workers at least four-to-one

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INTRODUCTION

MIS planning for, developing, managing, and using IT tools to help people perform all tasks related to information processing and management IT any computer-based tool that people use to work with information and support the information and information processing needs of an organization Use of technology is exploding
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INTRODUCTION

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INTRODUCTION
Telecommuting the use of technologies to work in a place other than a central location

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INFORMATION AS A KEY RESOURCE

Data raw facts Information data that have a particular meaning within a specific context

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INFORMATION AS A KEY RESOURCE

Business intelligence knowledge about your customers, competitors, business partners, competitive environment, and own international operations that gives you the ability to make effective, important, and often strategic business decisions. Business intelligence is a combination of many different types of information
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Personal Dimensions of Information

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Personal Dimensions of Information

Time When you need information Describing the right time period Location no matter where you are Intranet internal organizational Internet Form Usable, understandable, accurate
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Organizational Dimensions of Information

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Organizational Dimensions of Information

Information flows
Upward current state of the organization based on its transactions Downward strategies, goals, directives Horizontal between functional units and work teams Outward/Inward to/from customers, suppliers, distributors, and other partners
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Organizational Dimensions of Information

Information granularity extent of detail within the information
Lower organizational levels tremendous detail (fine) Higher organizational levels summarized information (coarse)

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Organizational Dimensions of Information

Internal specific operational aspects of an organization External environment surrounding the organization Objective something that is known Subjective something that is unknown

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PEOPLE AS A KEY RESOURCE

You And technology Technology-literate knowledge worker a person who knows how and when to apply technology
The chapters help you determine when to apply technology The modules help you in applying technology
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PEOPLE AS A KEY RESOURCE

Information-literate knowledge workers

Can define what information they need Know how and where to obtain information Understand the information Can act appropriately

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Your Ethical Responsibilities

Ethics and laws are different Laws require or prohibit action on your part Ethics are more of a matter of personal interpretation Ethics the principles and standards that guide our behavior toward other people Sometimes ethics and laws collide
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Your Ethical Responsibilities

Try to always be here

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IT AS A KEY RESOURCE
Information technology (IT) any computer-based tool that people use to work with information and support the information and information-processing needs of an organization Two categories of technology
Hardware Software
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Key Technology Categories

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Key Technology Categories

Hardware the physical devices that make up a computer Software the set of instructions that your hardware executes to carry out a specific task for you Module A covers technology categories in detail
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Technology Hardware

Input device enter information and commands Output device receive the results Storage device stores information CPU hardware that interprets and executes the software RAM temporary holding area for information and software
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Technology Hardware (contd)

Telecommunications device sends information to and receives it from another person or computer in a network Connecting hardware hardware that connects other hardware (e.g., ports, cables, etc.)

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Technology Software

Application software enables you to solve specific problems or perform specific tasks System software handles tasks specific to technology management and coordinates the interaction of all technology devices

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Technology Software

Two types of system software

Operating system software controls your application software and manages how your hardware devices work together Utility software provides additional functionality to your operating system software (e.g., anti-virus software)

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Decentralized Computing, Share Information, & Mobile Computing

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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
Servers Personal computers PDAs Tablet PCs
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Shared Information

Shared information an environment in which an organizations 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
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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 M-commerce electronic commerce conducted over a wireless device such as a cell phone, PDA, or notebook computer
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IT IN SUPPORT OF BUSINESS
Competitive advantage providing a product or service in a way that customers value more than what the competition is able to do Use technology for
Operational excellence Major business initiatives Decision making Organizational transformation
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Operational Excellence

Being efficient in what you do Transaction processing system (TPS) processes transactions within an organization Customer self-service system extension of a TPS that places technology in the hands of an organizations customers and allows them to process their own transactions

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Operational Excellence

TPSs and customer-self service systems require the use of databases and database management system (DBMS) software Databases contain tremendous detail on every transaction DBMS is the software bridge between a database and the actual software application

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Operational Excellence

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Major Business Initiatives

Customer relationship management (CRM) Enterprise resource planning (ERP) Sales force automation (SFA) Supply chain management (SCM) All are important major business initiatives The entire focus of Chapter 2

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Major Business Initiatives

Supply chain management (SCM) tracks inventory and information among business processes and across companies Supply chain management (SCM) system an IT system that supports supply chain management activities by automating the tracking of inventory and information among business processes and across companies
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Supply Chain Management

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Supply Chain Management

Uses EDI to facilitate the movement of information 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

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Major Business Initiatives

Another focuses on managing knowledge Knowledge management (KM) system an IT system that supports the capturing, organization, and dissemination of knowledge (i.e., know-how) throughout an organization Helps you avoid reinventing the wheel

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Decision Making
Online transaction processing (OLTP) the gathering of input information, processing that information, and updating existing information to reflect the gathered and processed information Other IT systems support OLAP Online analytical processing (OLAP) the manipulation of information to support decision making
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Decision Making

Two types of technology support Support for analyzing a situation Executive information system (EIS) highly interactive IT system that allows you to first view highly summarized information and then choose how you would like to see greater detail
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Executive Information System (EIS)

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Decision Making

Collaboration systems help groups of people analyze a situation Collaboration system a system that is designed specifically to improve the performance of teams by supporting the sharing and flow of information

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Decision Making
Other technology systems can actually make a recommendation to you Artificial intelligence the science of making machines imitate human thinking and behavior Neural network type of AI that recognizes and differentiates patterns AI is a focus of Chapter 4
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Organizational Transformation

Organizations must continually transform to

Stay ahead of the competition Offer a competitive advantage Survive

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Organizational Transformation
Many organizations turn to ASPs to help with their transformational technologies Application service provider (ASP) supplies software applications (and often related services such as maintenance, technical support, and the like) over the Internet that would otherwise reside on its customers in-house computers
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IT IN YOUR LIFE
Your career Learn IT tools no matter your career choice Vertical market software specific to a given industry Horizontal market software general to many industries (e.g., accounting and payroll) You will have to manage technology

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Ethics, Security, & Privacy

Ethics must be a priority for you So must security and privacy

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Ethics, Security, & Privacy

Some software is bad Spyware (sneakware, stealthware) software that comes hidden in free downloadable software and tracks your online movements, mines the information stored on your computer, or uses your computers CPU and storage for tasks you know nothing about
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Ethics, Security, & Privacy

Some people use technology in a bad way Identity theft forging of someones identity for the purpose of fraud Identity theft may be as high as $5 trillion worldwide by 2005

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CAN YOU

1. Define MIS and IT and describe their relationship 2. Validate information personally and organizationally as a key resource 3. Explain why people are the most important organizational resource

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CAN YOU

4. Describe IT as a key organizational resource 5. Define competitive advantage and the role of IT to achieve a competitive advantage 6. Discuss how IT can and will impact your life

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CHAPTER 1

End of Chapter 1

McGraw-Hill/Irwin

2005 The McGraw-Hill Companies, All rights reserved