dr. chen, management information systems chapter 1 the importance of mis jason c. h. chen, ph.d....

Dr. Chen, Management Information Systems

Chapter 1The Importance of MIS

Jason C. H. Chen, Ph.D.Professor of MIS

School of Business AdministrationGonzaga UniversitySpokane, WA 99258

[email protected]


• Jennifer gets fired from FlexTime after four months on job.

• Her job was to find ways to increase revenues.• She only followed orders, did not show self

initiative.• Did not become a team member.• Did not collaborate with others.• Did not understand business process concepts.• Being reliable, hard working, honest, and having

integrity is important, but today they’re not enough.

Opening Scenario: Fired? Why?

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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: 2022?


Why Information Systems?

“Chaotics” Globalization and __________ are the two main forces

that helped to create a new level of interlocking fragility in the world economy. While global interdependence works in everyone’s favor in good times, it rapidly spreads much pain and damage in bad times.

by Philip Kolter and John Caslione (AMACOM 2009)

N

technology

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Top-Ten Innovation Mistakes a Company Can Make During a Turbulent Economy

• Fire talent.• __________________• Reduce risk.• Stop product development.• Allow boards to replace growth-oriented CEOs with cost-

cutting CEOs.• Retreat from globalization.• Allow CEOs to replace innovation as key strategy.• Change performance metrics.• Reinforce hierarchy over collaboration.• Retreat into walled castle.

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Cut back on technology.


Q1: Why Is Introduction to MIS the Most Important Class in the Business

School?

• 1. Learn to assess, evaluate, and apply emerging information technology to business

• 2. Gain marketable skills and perspectives

• 3. Moore’s Law creates infinite opportunities for innovation


1. Future business professionals need to be able to assess, evaluate, and apply emerging information technology to business.

• You need the knowledge of this course (BMIS235) to attain that skill.

First Reason Introduction MIS Most Important

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2. The only job security that exists is “a marketable skill and the courage to use it.”

• Because cost of data storage and data communications is essentially zero, any routine skill can and will be outsourced to the lowest bidder.

Second Reason Introduction MIS Most Important

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- Learning

- Learning to Learn and- Learning to Change

What is the only entity that remained unchanged in the “Business”?


“Rapid technological change and increased international competition place the spotlight on the skills and preparation of the workforce, particularly the ability to adapt to changing technology and shifting demand. Shifts in the nature of organizations…favor strong nonroutine cognitive skills.”(Lynn A Kaoly and Constantijn W.A. Panis, The 21st Century at Work.

RAND Corporation, 2004, p. xiv) •What are your marketable skills?

How Can I Attain Job Security?

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“Capacity to Learn”

• Develop non-routine cognitive skills and ability

• Knowledge and skills are your job security

• Ability to cope with rapid technological change


How Can Intro to MIS Help You Learn Nonroutine Skills?

Figure 1-2: Examples of Critical Skills for Nonroutine Cognition

Abstraction: Concealing irrelevant details from the user.

Abstraction is the process of temporarily ignoring underlying details so we can focus on the big picture of the large problem at hand

Dr. Chen, Management Information Systems 11

Routine Skills and Moore’s Law

• Because cost of data storage and data communications is essentially zero, any routine skill can and will be outsourced to the lowest bidder.

• We will study Moore’s Law with its relation to ZERO advantage in the next slides.


• Ultimate reason: Moore’s Law• Moore’s Law (1965)

“The number of transistors per square inch on an integrated chip doubles every 18 months.”

Statement commonly misunderstood to be:

Third Reason Introduction to MIS the Most Important Class in the Business School?

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“The speed of a computer doubles every 18 months,” which is incorrect, but captures the sense of principle.


Ratio of Price to Performance of Computers

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Consequences Moore’s Law

• YouTube

• iPad

• Facebook

• Woot.com

• Pandora

• Twitter

• LinkedIn

• Foursquare

What happens when data storage and communications costs are essentially zero?

Are There Cost-Effective Business Applications of Facebook and Twitter? (see next slide)


• Fitness instructors post announcements via Twitter that participants follow.

• FlexTime studio collects those tweets and posts them on its Facebook page.

• Total cost to FlexTime studio? Zero.

• How do you compute the benefit-cost ratio when the cost is zero?

Are There Cost Effective Business Applications of Facebook and Twitter?

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________ADVANTAGE – related to Moore’s Law? FREE


• Q/A: “Everyone has a Facebook presence, therefore, I should also develop my own one” .

• YES/NO• What questions should be asked (clarified) before

making the decision?– “What is the purpose of our Facebook page?” – “What is it going to do for us?” – “Is Facebook the best choice?”– “Should we be using Microsoft Vine, instead?” – “Are the costs of maintaining the page sufficiently offset by

the benefits?”

Achieving Business Goals and Objectives

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Information systems exist to help people in business achieve the goals and objectives of that business


Study Questions


Q2: What is MIS?Q3: How can you use the five-component model?




Q7: 2022?


• Management, Use and Aligning Information Systems to Achieve Business Strategies (and consequently their goals and objectives).

• Computer-based information system

• (video)

• More to be explained in Part II.

What is MIS?

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http://media.pearsoncmg.com/ph/bp/bp_akamai/kroenke/videos.php?title=Chapter%201-%20What%20is%20MIS?&clip=pandc/kroenke/Ch_01_2.flv


Management• Information systems are built for business professionals (you)

to use.• You need to take an active role in specifying system

requirements and in managing development projects to ensure that the system meets your needs and the organization’s needs (user involvement).

Use• You need to learn how to use the system to achieve business

goals.• You are responsible for the system and data security.• You must ask the right questions

Management and Use of Information Systems

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• Information systems components (video link)

Hardware—desktops, laptops, PDAs Software—operating systems, application programs Data—facts and figures entered into computers Procedures—how the other four components are used People—users, technologists, IS support

What is MIS?

Figure 1-3 Five Components of an Information System

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what is the direction of degree of difficulty?

http://media.pearsoncmg.com/ph/bp/bp_akamai/kroenke/videos.php?title=Chapter%201-%20Components%20of%20an%20information%20system&clip=pandc/kroenke/Ch_01_1.flv


Business professionals need to:

Take an active role in IS to ensure that systems meet their needs

Understand how IT systems are constructed

Consider users’ needs during development

Learn how to use information systems

Take into account ancillary IT functions (Security, Backups, etc.)

Q2: What Is MIS? (Summary)


Study Questions


Q2: What is MIS?





Q7: 2022?


How Can You Use the Five-Component Framework?

Figure 1-4 Characteristics of the Five Components23

The Most Important Component –• Quality of your thinking• Change the way your brain works• Know how to use information systems

YOU [Video]

http://media.pearsoncmg.com/ph/bp/bp_akamai/kroenke/videos.php?title=Chapter%202-%20Most%20Important%20Component-%20YOU&clip=pandc/kroenke/Ch_02_1.flv


Five IS components evaluated based on order of ease of change and amount of organizational disruption.

1. Hardware is simple to order and install.2. Obtaining or developing new programs is more difficult. 3. Creating new databases or changing structure of existing

databases is more difficult. 4. Changing procedures, requiring people to work in new ways, is

even more difficult. 5. Changing personnel responsibilities and reporting relationships

and hiring and terminating employees are both very difficult and very disruptive.

Components Ordered by Difficulty and Disruption

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- create competitive advantage as they are more difficult to be replicated/replaced.


Q3: How Can You Use the Five-Component Model? (Summary)

• Consider high-tech vs. low-tech alternatives

• Understand scope of new systems

• Remember components ordered by difficulty and disruption


Next Class• 1. Complete reading the rest of chapter.• 2. Read chapter Case Study 1: The Amazon of

Innovation (1,2,3,5,6; p.27-29)– Prepare answers for all seven questions and turn in a

hardcopy using MS/Word next class.– We will also conduct case discussion.

• 3. Read Ethics Guide (Situations A,B,C Q:1&2; p.16-17) and prepare for class discussion

• 4. If you are asked to present your answer for case study (or “Guide”) questions but you do not prepare for them, there will be “10” points off every time from your final course grade.


Study Questions


Q2: What is MIS?





Q7: 2022?


IS vs. IT

IS = IT?

Why?

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Components of Information Systems (MIS/IS) – Managerial Perspective

ORGANIZATIONS TECHNOLOGY

MANAGEMENT

INFORMATION

SYSTEMS

Dr. Chen, The Challenge of the Information Systems Technology TM -2929


What is Information Systems?

• Information Systems (IS) are more than just computer hardware and software.

• It is not just developing business applications programs

• Information Systems include:– Information Technology– Management– Organization

• Ultimately, IS are used as strategic tool to improve/create an organization’s competitive advantage.

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• Information technology (IT) pertains to things you buy: Hardware; Software; Data components

• Things you can buy or lease: Products; Methods; Inventions Standards (obtain predesigned procedures)

• Information technology drives the development of new information systems.

• You can buy IT, but you cannot buy IS.

Difference Between Information Technology and Information Systems?

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- competitive advantage since they are difficult to be replaced/replicated.


How can you enjoy/apply MIS ...

• To _________the information content of the data,

• to _________the valuable information in a user-friendly, intuitive, and easy to understand way, and

• to ________ knowledge workers of today and tomorrow.

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improve

present

empower


Roles of Information SystemsRoles of Information Systems

AutomatesAutomates

Innovates/TransformsInnovates/TransformsInformatesInformates

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Q4: Why Is Difference Between IT and IS Important? (Summary)

• Can buy or lease hardware, software licenses, databases and predesigned procedures

• People require training, overcoming employees’ resistance to change, managing employees using new system

IS = IT + Procedures + People (text)

Avoid common mistake: You cannot buy an IS

IS = IT + Management + Organization


SUMMARY

Information System (IS) should be an organizational and management solution, based on information

technology (IT), to a challenge posed by the environment.

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Study Questions


Q2: What is MIS?



Q5: What is information?Q6: What are necessary data characteristics?

Q7: 2022?


Q5: What Is Information?

• Information is knowledge derived from data

• Data in a meaningful context Data processed by summing, ordering,

averaging, grouping, comparing, etc.

• “A difference that makes a difference”

• Where is information? It’s in Your Head


What Is Information?

Does this graph contain information?


Figure (Extra)

Which is data? Information? Context Change Process

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Which is data? Information?

• A student’s name• A student’s transcript record• Unit price of iPod touch• Monthly sales amount of MP3 players• Fall enrollment of students• Fall enrollment of students from 2001 –

2009• Enrollment comparisons of students at GU

vs. other peer universities40

• Users really want is– Information


What is Information ?

DATA

Information is refined data.

INFORMATION

What is 80/20 rule?How to apply it to this scenario?


What is Information ?

DATA INFORMATION

80% of information/

valuable output

Trivial many (80%)? or

Vital few (20%)?

Other business example?


DATA, INFORMATION , AND KNOWLEDGE

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The relationships between data, information, and knowledge.

Data

More human contribution

Greater value

Information

Data endowed with relevance and purpose

Requires unit of analysis

Needs consensus on meaning

Human mediation necessary

Often garbled in transmission

Knowledge

Valuable information from the human mind; includes

reflection, synthesis, context

Hard to transfer

Often tacit

Hard to capture electronically

Hard to structure

Highly personal to the source

Data Information Knowledge

Data

Simple observation of states of the world

Easily captured

Easily structured

Easily transferred

Compact, quantifiable

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Value Chain Data of the Enterprise

Data

Wisdom refers to our effective use of intelligence (or knowledge), intelligence refers to our effective use of knowledge.

“Knowledge is information that changes something or somebody – either by becoming grounds for actions, or by making an individual (or an institution) capable of different or more effective action” - Pete Drucker.

An organization learns what it knows by cultivating its knowledge ecosystem in which information, insights, and inspirations cross-fertilize and feed one another, free from the constraints of geography and schedule.

Information Knowledge Intelligence Wisdom

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100 Years ago...

Today...

Industrial Revolution changed the World

• Information

Revolution!

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100 Years ago...

Today...

Industrial Revolution changed the World

• Information

Revolution!

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Industry Evolution

(mid 1770s)

Steam EngineRail Road

(1829,change concept

of distance)

Information Evolution

(late 1990s)

Computer

Impact on:Economy, Politics,

Social change

Internet(1990,

??? Distance)N

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More Information ?• More information is

not profitable unless it is relevant information.

• Executives will need

information in the future if their companies are to be competitive.

better

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Information …

BAD information is WORSE than ...

NO information.

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Study Questions


Q2: What is MIS?





Q7: 2022?


• Accurate—correct and complete data, and processed correctly. Accuracy is crucial; managers must be able to rely on results of their information systems.

• Timely—produced in time for its intended use.

• Relevant—both to the context and to the subject.

• Just sufficient—for purpose for which it is generated. Avoid information overload.

• Worth its cost—appropriate relationship between cost of information and its value.

What Makes Some Information Better than Other Information?

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Attributes of Information Quality

We realize that a firm needs better information to survive and prosper. Therefore, high quality information

products have to be provided to management.

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ContentDimension

Form

Dimension

Time

Dimensio

n

Attributes of Information Quality

TimelinessCurrencyFrequencyTime Period

ClarityDetailOrderPresentationMedia

AccuracyRelevanceCompletenessConcisenessScopeperformance

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Q7: 2022?

• Most computers won’t look like a computer• Kindle (now)• The Future of Computers• Everyday items will have computers in them

What will that mean to industry in general? Who will be the winners and losers?

• Why go to class if you have a classroom in a “box”? College textbooks? College classrooms and campuses?

Video: ROLLTOP-myRolltop New step in portable computers (1m48s)

http://www.amazon.com/dp/B00154JDAI

http://www.gadgetell.com/tech/comment/what-the-future-holds-pen-computers/

http://www.gadgetell.com/tech/comment/what-the-future-holds-pen-computers/


• END of CHAPTER 1

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dr. chen, management information systems chapter 1 the importance of mis jason c. h. chen, ph.d....

Documents

information systems

innovation slide

business school

reason introduction

important class

future business professionals

business process concepts

importance of mis jason