Chapter 1 THE INFORMATION AGE IN WHICH YOU LIVE

Changing the Face of Business

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Management Information Systems for the Information Age

Presentation Overview

Todays Economic Environment Information as a Key Resource People as a Key Resource Information Technology as a Key Resource Roles and Goals of Information Technology
Management Information Systems for the Information Age

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Opening Case Study

Can Technology Catch You Having An Affair?

Technology is pervasive, and often invasive. How can technology be inadvertently used for good and bad purposes?

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Management Information Systems for the Information Age

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 by a 4-to-1 margin.

Management Information Systems for the Information Age

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Introduction

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.

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Management Information Systems for the Information Age

Todays Economic Environment

To be successful in todays economic environment, you must:

Know your competition. Know your customers. Work closely with your business partners. Know your organization inside and out.

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Management Information Systems for the Information Age

Todays Economic Environment

The E.conomy

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. Virtual Workplace a technology-enabled workplace. No boundaries.
Management Information Systems for the Information Age

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Todays Economic Environment The E.conomy

Percentage of Sites that Plan to Add Telecommuting

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Management Information Systems for the Information Age

Todays Economic Environment

The Now Economy

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. What else?

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Management Information Systems for the Information Age

Todays Economic Environment

The Now Economy

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)

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Management Information Systems for the Information Age

Todays 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.
Transnational firms produce and sell products and services in countries all over the world.
Management Information Systems for the Information Age

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Todays Economic Environment The Global Economy

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Management Information Systems for the Information Age

Todays Economic Environment

The Arriving Digital Economy

Digital economy marked by the electronic movement of all types of information including physiological information such as:

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Voice recognition Speech synthesization Biometrics Holograms

Management Information Systems for the Information Age

Information as a Key Resource

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

We are in the information age, a time when knowledge is power.

Knowledge comes from information.

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Management Information Systems for the Information Age

Information as a Key Resource

Data Versus Information

Data raw facts that describe a particular phenomenon.

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

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Management Information Systems for the Information Age

Information as a Key Resource

Personal Dimensions of Information

The three personal dimensions of information include:

Time Location Form

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Management Information Systems for the Information Age

Information as a Key Resource

Personal Dimensions of Information

Time dimension
When you need it. Specific time period.

Location dimension
No matter where you are.

Form dimension
Useable and understandable. Free of errors.
Management Information Systems for the Information Age

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Information as a Key Resource

Organizational Dimensions of Information

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Management Information Systems for the Information Age

Information as a Key Resource

Organizational Dimensions of Information

Strategic management provides overall direction and guidance.

Tactical management develops the goals and strategies. Operational management manages and directs the day-to-day operations. Nonmanagement employees perform daily activities.
Management Information Systems for the Information Age

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Information as a Key Resource

Organizational Dimensions of Information

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.

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Management Information Systems for the Information Age

Information as a Key Resource

Organizational Dimensions of Information

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.

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Management Information Systems for the Information Age

Information as a Key Resource

Information granularity refers to the extent of detail within the information.

Organizational Dimensions of Information

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Management Information Systems for the Information Age

Information as a Key Resource

Organizational Dimensions of Information

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 or is an opinion.

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Management Information Systems for the Information Age

People as a Key Resource

Information and Technology Literacy

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.

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Management Information Systems for the Information Age

People as a Key Resource

Information and Technology Literacy

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.

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Management Information Systems for the Information Age

People as a Key Resource

Your Ethical Responsibilities

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 have a right and wrong outcome according to different people.
Management Information Systems for the Information Age

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People as a Key Resource

Your Ethical Responsibilities

Hacker very knowledgeable computer user who uses his or her knowledge to invade other peoples computers.

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Management Information Systems for the Information Age

People as a Key Resource

Your Ethical Responsibilities
On Your Own

E-Mail: Electronic Mail or Expensive Mail? (p. 16)

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Management Information Systems for the Information Age

Information Technology as a Key Resource

Information technology any computer-based tool that people use to work with information and support the information and informationprocessing 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.
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IT as a Key Resource
Key Technology Categories

Hardware categories

Input devices Output devices Storage devices Central processing unit Random access memory Telecommunications devices Connecting devices
Management Information Systems for the Information Age

On Your Own

Identifying Hardware And Software (p. 19)

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IT as a Key Resource
Key Technology Categories

Software categories

Application software Operating system software Utility software

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

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Management Information Systems for the Information Age

IT as a Key Resource
Decentralized Computing and Shared Information

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Management Information Systems for the Information Age

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.
Shared information environment in which an organizations information is organized in one central location.
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Roles and Goals of Information Technology

1.
2. 3. 4.

5. 6.
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Increase employee productivity Enhance decision making Improve team collaboration Create business partnerships and alliances Enable global reach Facilitate organizational transformation
Management Information Systems for the Information Age

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.

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Management Information Systems for the Information Age

Roles and Goals of IT

1 - Increase Employee Productivity

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 organizations customers and allows them to process their own transactions.
Management Information Systems for the Information Age

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Roles and Goals of IT

1 - Increase Employee Productivity

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Management Information Systems for the Information Age

Roles and Goals of IT

2 - Enhance 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.

Neural network an artificial intelligence that is capable of finding and differentiating patterns.
Management Information Systems for the Information Age

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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.

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Management Information Systems for the Information Age

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.
Groupware software components that supports the collaborative efforts of a team.
Management Information Systems for the Information Age

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Roles and Goals of IT

3 - Improve Team Collaboration

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.

Applications development

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Management Information Systems for the Information Age

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.

Team Work

Finding Business Partners and Alliances on The Web (p. 26)

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Management Information Systems for the Information Age

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.

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Management Information Systems for the Information Age

Roles and Goals of IT

5 - Enable Global Reach

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.
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Roles and Goals of IT

6 - Facilitate Organizational Transformation

Organizational transformation is necessary to respond to the ever-changing needs (and wants) of todays marketplace.
Blockbuster now provides movies on a pay-per-view rental basis through cable.

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Management Information Systems for the Information Age

Closing Case Study One

You and Your Information

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

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Management Information Systems for the Information Age

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

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Management Information Systems for the Information Age

ELM A

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Management Information Systems for the Information Age

Summary
Student Learning Outcomes
1.

2.

3.

4.

Describe the information age and the role of knowledge workers within it. Define management information systems (MIS). Describe key factors shaping todays economic environment. Validate information as a key resource and describe both personal and organizational dimensions of information.
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Summary
Student Learning Outcomes
5.

6.

7.

Define how people are the most important organizational resource, their information and technology literacy challenges, and their ethical responsibilities. Describe the important characteristics of information technology (IT) as a key organizational resource. List and describe the six roles and goals of information technology in any organization.
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Summary
Assignments & Exercises
1.
2. 3.

4. 5.

6.

Surveying the global economy Finding trust in TRUSTe Reporting on Internet statistics by business sector Learning about an MIS major Reviewing the 100 best companies to work for Redefining business operations through IT innovation
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Visit the Web to Learn More www.mhhe.com/haag

Job databases Electronic resumes Searching newspapers for job ads Locating internships Interviewing and negotiating tips Organization sites and job postings Employment opportunities with the government
Management Information Systems for the Information Age

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