1-1 management information systems for the information age chapter 1 the information age in which...

1-1-11 Management Information Systems Management Information Systems

for the Information Agefor the Information Age

Chapter 1Chapter 1

THE INFORMATION AGE IN THE INFORMATION AGE IN WHICH YOU LIVEWHICH YOU LIVE

Changing the Face of BusinessChanging the Face of Business



Presentation OverviewPresentation Overview

Today’s Economic EnvironmentToday’s Economic Environment Information as a Key ResourceInformation as a Key Resource People as a Key ResourcePeople as a Key Resource Information Technology as a Key Information Technology as a Key

ResourceResource Roles and Goals of Information Roles and Goals of Information

TechnologyTechnology



Opening Case StudyOpening Case StudyCan Technology Catch You Having An Affair?Can Technology Catch You Having An Affair?

Technology is pervasive, and often Technology is pervasive, and often invasive.invasive.

How can technology be inadvertently used How can technology be inadvertently used for “good” and “bad” purposes?for “good” and “bad” purposes?



Information ageInformation age – a time when – a time when knowledge is power.knowledge is power.

Knowledge workerKnowledge worker – works with and – works with and produces information as a product.produces information as a product. Outnumber all other types of workers by a Outnumber all other types of workers by a

4-to-1 margin.4-to-1 margin.

IntroductionIntroduction



Management information systemsManagement information systems (MIS)(MIS) – deals with the planning for, – deals with the planning for, development, management, and use development, management, and use of information technology tools to help of information technology tools to help people perform all tasks related to people perform all tasks related to information processing and information processing and management.management.

IntroductionIntroduction



Today’s Economic EnvironmentToday’s Economic Environment

To be successful in today’s economic To be successful in today’s economic environment, you must:environment, you must: Know your competition.Know your competition. Know your customers.Know your customers. Work closely with your business partners.Work closely with your business partners. Know your organization inside and out.Know your organization inside and out.



Today’s Economic Environment Today’s Economic Environment The E.conomyThe E.conomy

Electronic commerceElectronic commerce – is commerce, but it is – is commerce, but it is commerce accelerated and enhanced by commerce accelerated and enhanced by information technology.information technology.

TelecommutingTelecommuting – the use of communications – the use of communications technologies to work in a place other than a technologies to work in a place other than a central location.central location.

Virtual WorkplaceVirtual Workplace – a technology-enabled – a technology-enabled workplace. No boundaries. workplace. No boundaries.



Today’s Economic Today’s Economic Environment Environment The E.conomyThe E.conomy

Percentage of Sites that Plan to Add Telecommuting



Today’s Economic Environment Today’s Economic Environment The “Now” EconomyThe “Now” Economy

Characterized by the immediate access Characterized by the immediate access customers have to the ordering of customers have to the ordering of products and services.products and services.

An ATM is an example of a product in the An ATM is an example of a product in the “now” economy.“now” economy.



Today’s Economic Environment Today’s Economic Environment The “Now” EconomyThe “Now” Economy

M-commerceM-commerce – electronic – electronic commerce conducted over commerce conducted over a wireless device such as a wireless device such as a cell phone or personal a cell phone or personal digital assistant.digital assistant.

Team Work

I Want It! (p. 7)



Today’s Economic Environment Today’s Economic Environment The Global EconomyThe Global Economy

Global economyGlobal economy – one in which customers, – one in which customers, businesses, suppliers, distributors, and businesses, suppliers, distributors, and manufacturers all operate without regard to manufacturers all operate without regard to physical and geographical boundaries.physical and geographical boundaries.

Transnational firmsTransnational firms – produce and sell – produce and sell products and services in countries all over the products and services in countries all over the world.world.



Today’s Economic Today’s Economic Environment Environment The Global EconomyThe Global Economy



Today’s Economic Environment Today’s Economic Environment The Arriving Digital EconomyThe Arriving Digital Economy

Digital economyDigital economy – marked by the – marked by the electronic movement of all types of electronic movement of all types of information including physiological information including physiological information such as:information such as: Voice recognitionVoice recognition Speech synthesizationSpeech synthesization BiometricsBiometrics HologramsHolograms



Information as a Key ResourceInformation as a Key Resource

Information is one of the key components Information is one of the key components of management information systems.of management information systems.

We are in the “information” age, a time We are in the “information” age, a time when knowledge is power.when knowledge is power. Knowledge comes from information.Knowledge comes from information.



Information as a Key Resource Information as a Key Resource

Data Versus InformationData Versus Information Data Data – raw facts that describe a particular – raw facts that describe a particular

phenomenon.phenomenon.

Information Information – data that have a particular – data that have a particular meaning within a specific context.meaning within a specific context.



Information as a Key Information as a Key Resource Resource

Personal Dimensions of InformationPersonal Dimensions of Information The three personal The three personal

dimensions of dimensions of information include:information include: TimeTime LocationLocation FormForm



Information as a Key Resource Information as a Key Resource Personal Dimensions of InformationPersonal Dimensions of Information

Time dimensionTime dimension When you need it.When you need it. Specific time period.Specific time period.

Location dimensionLocation dimension No matter where you are.No matter where you are.

Form dimensionForm dimension Useable and understandable.Useable and understandable. Free of errors.Free of errors.




Organizational Dimensions of Organizational Dimensions of InformationInformation




Organizational Dimensions of InformationOrganizational Dimensions of Information Strategic managementStrategic management – provides overall direction and – provides overall direction and

guidance.guidance.

Tactical management Tactical management – develops the goals and – develops the goals and strategies. strategies.

Operational managementOperational management – manages and directs the – manages and directs the day-to-day operations. day-to-day operations.

Nonmanagement employees – perform daily activities.Nonmanagement employees – perform daily activities.



Information as a Key Resource Information as a Key Resource Organizational Dimensions of InformationOrganizational Dimensions of Information

The four flows of information include:The four flows of information include: Upward – describes the current state of the Upward – describes the current state of the

organization based on its daily transactions.organization based on its daily transactions. Downward – consists of the strategies, goals, Downward – consists of the strategies, goals,

and directives that originate at one level and and directives that originate at one level and are passed to lower levels.are passed to lower levels.




Organizational Dimensions of InformationOrganizational Dimensions of Information Information flows continuedInformation flows continued

Horizontal – between functional business Horizontal – between functional business units and work teams.units and work teams.

Outward – information that is communicated Outward – information that is communicated to customers, suppliers, distributors, and to customers, suppliers, distributors, and other partners for the purpose of doing other partners for the purpose of doing business.business.




Organizational Dimensions of Organizational Dimensions of InformationInformation

Information Information granularitygranularity – refers – refers to the extent of detail to the extent of detail within the information.within the information.



Information as a Key Resource Information as a Key Resource Organizational Dimensions of InformationOrganizational Dimensions of Information

What the information describes can include:What the information describes can include: Internal informationInternal information – specific operational aspects of – specific operational aspects of

the organization.the organization. External information External information – the environment surrounding – the environment surrounding

the organization.the organization. Objective information Objective information – something that is known.– something that is known. Subjective informationSubjective information – something that is – something that is

unknown.unknown.



People as a Key ResourcePeople as a Key ResourceInformation and Technology LiteracyInformation and Technology Literacy

The single most important resource in any The single most important resource in any organization is its people.organization is its people.

Technology-literate knowledge workerTechnology-literate knowledge worker – a person who knows how and when to – a person who knows how and when to apply technology.apply technology.



People as a Key ResourcePeople as a Key ResourceInformation and Technology LiteracyInformation and Technology Literacy

Information-literate knowledge workersInformation-literate knowledge workers:: Define what information they need.Define what information they need. Know how and where to obtain information.Know how and where to obtain information. Understand the information.Understand the information. Act appropriately based on the information to Act appropriately based on the information to

help the organization achieve the greatest help the organization achieve the greatest advantage.advantage.



People as a Key ResourcePeople as a Key ResourceYour Ethical ResponsibilitiesYour Ethical Responsibilities

EthicsEthics – the principals and standards that – the principals and standards that guide our behavior toward other people.guide our behavior toward other people.

Ethics are different from laws as they are a Ethics are different from laws as they are a matter of personal interpretation.matter of personal interpretation.

Ethics have a right and wrong outcome Ethics have a right and wrong outcome according to different people.according to different people.




Hacker Hacker – very – very knowledgeable knowledgeable computer user who computer user who uses his or her uses his or her knowledge to invade knowledge to invade other people’s other people’s computers.computers.




On Your Own

E-Mail: Electronic Mail or Expensive Mail?

(p. 16)



Information Technology as a Information Technology as a Key ResourceKey Resource

Information technologyInformation technology – any computer-based – any computer-based tool that people use to work with information and tool that people use to work with information and support the information and information-support the information and information-processing needs of an organization. Made up processing needs of an organization. Made up of:of: Hardware Hardware – physical devices that make up a – physical devices that make up a

computer.computer. SoftwareSoftware – set of instructions that the hardware – set of instructions that the hardware

executes to carry out a specific task.executes to carry out a specific task.



IT as a Key ResourceIT as a Key ResourceKey Technology CategoriesKey Technology Categories

Hardware categories Hardware categories Input devicesInput devices Output devicesOutput devices Storage devicesStorage devices Central processing unitCentral processing unit Random access memoryRandom access memory Telecommunications devicesTelecommunications devices Connecting devicesConnecting devices

On Your Own

Identifying Hardware

And Software(p. 19)



IT as a Key ResourceIT as a Key ResourceKey Technology CategoriesKey Technology Categories

Software categoriesSoftware categories Application softwareApplication software Operating system softwareOperating system software Utility softwareUtility software

((See Figure 1.6 on page 18 for a complete overview of software categories.)



IT as a Key ResourceIT as a Key ResourceDecentralized Computing and Shared Decentralized Computing and Shared

InformationInformation



IT as a Key ResourceIT as a Key ResourceDecentralized Computing and Shared Decentralized Computing and Shared

InformationInformation Decentralized computing Decentralized computing – environment in – environment in

which an organization splits computing power which an organization splits computing power and locates it in functional business areas and and locates it in functional business areas and on knowledge workers’ desktops.on knowledge workers’ desktops.

Shared informationShared information – environment in which an – environment in which an organization’s information is organized in one organization’s information is organized in one central location.central location.



Roles and Goals of Roles and Goals of Information TechnologyInformation Technology

1.1. Increase employee productivityIncrease employee productivity

2.2. Enhance decision makingEnhance decision making

3.3. Improve team collaborationImprove team collaboration

4.4. Create business partnerships and Create business partnerships and alliancesalliances

5.5. Enable global reachEnable global reach

6.6. Facilitate organizational transformationFacilitate organizational transformation



Roles and Goals of ITRoles and Goals of IT1 - Increase Employee Productivity1 - Increase Employee Productivity

Online transaction processing (OLTP)Online transaction processing (OLTP) – – the gathering of input information, the gathering of input information, processing that information, and updating processing that information, and updating existing information to reflect the gathered existing information to reflect the gathered and processed information.and processed information.



Roles and Goals of ITRoles and Goals of IT1 - Increase Employee Productivity1 - Increase Employee Productivity

Transaction processing system (TPS) Transaction processing system (TPS) – – processes transactions that occur within an processes transactions that occur within an organization.organization.

Customer-integrated system (CIS)Customer-integrated system (CIS) – An – An extension of a TPS that places technology in the extension of a TPS that places technology in the hands of an organization’s customers and allows hands of an organization’s customers and allows them to process their own transactions.them to process their own transactions.



Roles and Goals of ITRoles and Goals of IT 1 - Increase Employee Productivity1 - Increase Employee Productivity



Roles and Goals of ITRoles and Goals of IT2 - Enhance Decision Making2 - Enhance Decision Making

Online analytical processing (OLAP)Online analytical processing (OLAP) – the – the manipulation of information to support decision manipulation of information to support decision making.making.

Artificial intelligenceArtificial intelligence – the science of making – the science of making machines imitate human thinking and behavior.machines imitate human thinking and behavior.

Neural networkNeural network – an artificial intelligence that is – an artificial intelligence that is capable of finding and differentiating patterns.capable of finding and differentiating patterns.



Roles and Goals of ITRoles and Goals of IT 2 - Enhance Decision Making2 - Enhance Decision Making

Executive information system (EIS)Executive information system (EIS) – a highly – a highly interactive IT system that allows you to first view interactive IT system that allows you to first view highly summarized information and then choose how highly summarized information and then choose how you would like to see greater detail, which may alert you would like to see greater detail, which may alert you to potential problems or opportunities.you to potential problems or opportunities.



Roles and Goals of ITRoles and Goals of IT3 - Improve Team Collaboration3 - Improve Team Collaboration

Collaboration system Collaboration system – designed – designed specifically to improve the performance of specifically to improve the performance of teams by supporting the sharing and flow teams by supporting the sharing and flow of information.of information.

GroupwareGroupware – software components that – software components that supports the collaborative efforts of a supports the collaborative efforts of a team.team.



Roles and Goals of ITRoles and Goals of IT 3 - Improve Team Collaboration3 - Improve Team Collaboration

Groupware contains support for:Groupware contains support for: Team dynamicsTeam dynamics Document management Document management

• Group document databaseGroup document database – acts as a powerful – acts as a powerful storage facility for organizing and managing all storage facility for organizing and managing all documents related to specific teams.documents related to specific teams.

Applications developmentApplications development



Roles and Goals of ITRoles and Goals of IT4 - Create Business Partnerships and 4 - Create Business Partnerships and

AlliancesAlliances Interorganizational Interorganizational

system (IOS) system (IOS) – automates – automates the flow of information the flow of information between organizations to between organizations to support the planning, support the planning, design, development, design, development, production, and delivery of production, and delivery of products and services.products and services.

Team Work

Finding Business Partners and Alliances on

The Web(p. 26)



Roles and Goals of ITRoles and Goals of IT 4 - Create Business Partnerships and 4 - Create Business Partnerships and

AlliancesAlliances Electronic data interchange (EDI) Electronic data interchange (EDI) – the – the

direct computer-to-computer transfer of direct computer-to-computer transfer of transaction information contained in transaction information contained in standard business documents, such as standard business documents, such as invoices and purchase orders, in a invoices and purchase orders, in a standard format.standard format.



Roles and Goals of ITRoles and Goals of IT5 - Enable Global Reach5 - Enable Global Reach

Business today is global business.Business today is global business.

CultureCulture – the collective personality of a – the collective personality of a nation or society, encompassing language, nation or society, encompassing language, traditions, currency, religion, history, traditions, currency, religion, history, music, and acceptable behavior, among music, and acceptable behavior, among other things.other things.



Roles and Goals of ITRoles and Goals of IT6 - Facilitate Organizational 6 - Facilitate Organizational

TransformationTransformation Organizational transformation is necessary Organizational transformation is necessary

to respond to the ever-changing needs to respond to the ever-changing needs (and wants) of today’s marketplace.(and wants) of today’s marketplace.

Blockbuster now provides movies on a Blockbuster now provides movies on a pay-per-view rental basis through cable.pay-per-view rental basis through cable.



Closing Case Study OneClosing Case Study One You and Your Information You and Your Information

Information travels with you and is captured and Information travels with you and is captured and stored by a number of organizations.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 Do you trust organizations to maintain accurate information about you?information about you?



Closing Case Study TwoClosing Case Study TwoHow Much of Your Personal Information How Much of Your Personal Information

Do You Want Businesses to Know?Do You Want Businesses to Know? Businesses need information about you to Businesses need information about you to

provide the best possible products and provide the best possible products and services.services.

How much of your information do you want How much of your information do you want others to be able to access?others to be able to access?



Summary Summary Student Learning Outcomes Student Learning Outcomes

1.1. Describe the information age and the role of Describe the information age and the role of knowledge workers within it.knowledge workers within it.

2.2. Define management information systems Define management information systems (MIS).(MIS).

3.3. Describe key factors shaping today’s economic Describe key factors shaping today’s economic environment.environment.

4.4. Validate information as a key resource and Validate information as a key resource and describe both personal and organizational describe both personal and organizational dimensions of information.dimensions of information.



Summary Summary Student Learning OutcomesStudent Learning Outcomes

5.5. Define how people are the most important Define how people are the most important organizational resource, their information and organizational resource, their information and technology literacy challenges, and their technology literacy challenges, and their ethical responsibilities.ethical responsibilities.

6.6. Describe the important characteristics of Describe the important characteristics of information technology (IT) as a key information technology (IT) as a key organizational resource.organizational resource.

7.7. List and describe the six roles and goals of List and describe the six roles and goals of information technology in any organization.information technology in any organization.



Summary Summary Assignments & ExercisesAssignments & Exercises

1.1. Surveying the global economySurveying the global economy

2.2. Finding trust in TRUSTeFinding trust in TRUSTe

3.3. Reporting on Internet statistics by business Reporting on Internet statistics by business sectorsector

4.4. Learning about an MIS majorLearning about an MIS major

5.5. Reviewing the 100 best companies to work forReviewing the 100 best companies to work for

6.6. Redefining business operations through IT Redefining business operations through IT innovationinnovation



Visit the Web to Learn MoreVisit the Web to Learn Morewww.mhhe.com/haagwww.mhhe.com/haag

Job databasesJob databases Electronic resumesElectronic resumes Searching newspapers for job adsSearching newspapers for job ads Locating internshipsLocating internships Interviewing and negotiating tipsInterviewing and negotiating tips Organization sites and job postingsOrganization sites and job postings Employment opportunities with the governmentEmployment opportunities with the government

1-1 management information systems for the information age chapter 1 the information age in which...

Documents