Experiencing MIS 10th by m kronenke chapter 01

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Using MIS

10th Edition

Chapter 1 The Importance of MIS

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“But Today, They’re Not Enough.”

• Jennifer Lacks Skills Falcon Security Needs:

1 Abstract reasoning skills.

2 Systems Thinking Skills.

3 Collaboration Skills.

4 Experimentation Skills.

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What Do Employers Want?

• Self starter, Don’t wait to be told what to do.

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Study Questions

Q1-1 Why is Introduction to MIS the most important class in

the business school?

Q1-2 How will MIS affect me?

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The Digital Revolution

Q1-1 Why is Introduction to MIS the most important class in the business school?

• Technology fundamentally changing business.

• Information Age

– Production, distribution, control of information

primary economic drivers.

• Digital Revolution

– From mechanical/analog devices to digital devices.

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Understanding the Forces Pushing the

Evolution of New Digital Devices

• Bell’s Law

– New class of computers establishes a new industry

each decade.

 New platforms, programming environments,

industries, networks, and information systems.

• Understand how next digital evolution will affect

businesses.

• What an industry does and how it does it will

change.

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Computer Price/Performance Ratio

Historical Trend

Figure 1-1 Computer Price / Performance Ratio Decreases

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Metcalfe’s Law

Figure 1-2 Increasing Value of Networks

• Network value equal

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Fundamental Forces Changing Technology

Law Meaning Implications

Moore’s Law

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

Computers are getting exponentially faster

The cost of data processing is approaching zero.

Metcalfe’s Law

The value of a network is equal to the square of the number of users connected to it.

More digital devices are being connected together

The value of digital and social networks is increasing exponentially.

Nielsen’s Law

Network connection speeds for high-end users will increase by 50 percent per year.

Network speed is increasing Higher speeds enable new products, platforms, and companies.

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Price of Storage Capacity per GB

Figure 1-4 Price of Storage Capacity per GB

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This Is the Most Important Class in the

School of Business Because You Will Learn:

• How technology fundamentally changes

businesses.

• Why executives try to find ways to use new

technology to create a sustainable competitive

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Technological Change is Accelerating

• Bell’s Law

– Today’s highly successful business could be

bankrupt quickly because technology changed and

it didn’t.

• Example: Blockbuster

– In 2004 Blockbuster had $5.9B in revenues

– In 2010 Blockbuster filed for bankruptcy

– High-speed network connections and streaming

video changed the competitive landscape

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How Can I Attain Job Security?

• Moore’s Law, Metcalfe’s Law, and Kryder’s Law

– Driving data processing, storage, communications

costs to essentially zero.

• Any routine skill can, and will, be outsourced to

lowest bidder.

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What Skills Will Be Marketable During

Your Career?

• Rapid technological change and increased

international competition:

– Requires skills and ability to adapt

– Favors people with strong non-routine cognitive

skills.

– Message: Develop strong non-routine cognitive

skills.

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What Is a Marketable Skill?

Figure 1-5 Examples of Critical Skills for Nonroutine Cognition

Skill Example Jennifer's Problem at Falcon Security

Abstract Reasoning Construct a model or representation. Hesitancy and uncertainty when conceptualizing a method for

identifying 3D printable drone parts.

Systems Thinking

Model system components and show how components’ inputs and outputs relate to one another.

Inability to model Falcon Security’s operational needs.

Collaboration Develop ideas and plans with others Provide and receive critical

Fear of failure prohibited discussion of new ideas.

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How Can Intro to MIS Help You Learn

Non-Routine Skills?

• Abstract Reason

– Ability to make and manipulate models.

– Learn to use and construct abstract models.

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Non-Routine Skills? (cont’d)

• Systems Thinking

– Ability to model system components, connect inputs

and outputs among components to reflect structure and dynamics.

– Ability to discuss, illustrate, critique systems;

compare alternative systems; apply different

systems to different situations.

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• Collaboration

– People working together to achieve a common goal,

result, or work product

– Ch 2 discusses collaboration skills and illustrates

several collaboration information systems.

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• Ability to Experiment

– Make reasoned analysis of an opportunity; develop

and evaluate possible solutions.

 “I’ve never done this before.”

 “I don’t know how to do it.”

 “But will it work?”

 “Is it too weird for the market?”

• Fear of failure paralyzes many good people

and ideas

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Jobs

• 69% of college graduates need additional training

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Job Growth By Sector Over the Past Twenty Years

Figure 1-6 Growth of Jobs by Sector from 1989 to 2009

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BLS Occupational Outlook 2014-2024

Figure 1-7 Bureau of Labor Statistics Occupational Outlook 2014–2024

2012 Median Pay 2014 Median Pay Job Growth (%) 2014-24 Job Growth (N) 2014-24

Computer and Information Technology

Computer Network Architects $ 91,000 $ 98,430 9% 12,700

Computer Systems Analysts $ 79,680 $ 82,710 21% 118,600

Database Administrators $ 118,700 $ 80,280 11% 13,400

Information Security Analysts $ 87,170 $ 88,890 18% 14,800

Network and Systems Admin $ 72,560 $ 75,790 8% 30,200

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Bottom Line of MIS Course

Most important course in business school because:

1 Gives background needed to assess, evaluate,

and apply emerging information systems

technology to business.

2 Gives marketable skills by helping you learn

abstraction, systems thinking, collaboration, and experimentation.

3 Makes you aware of well-paying, high demand

MIS-related jobs.

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Management Information Systems

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Management Information Systems (cont’d)

Q1-3 What is MIS?

• Management and use to:

– Develop, maintain, adapt by:

 Creating an information system that meets your

needs, take an active role in system’s development Why?

 Business professionals using cognitive skills to

understand business needs and requirements.

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Components of an Information System?

Figure 1-8 Five Components of an Information System

Q1-3 What is MIS?

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Difference Between IT and IS

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Development and Use of Information

Systems

Q1-3 What is MIS?

• Business professionals need to:

– Take active role to ensure systems meet their

needs.

– Understand how IS constructed.

– Consider users’ needs during development.

– Learn how to use IS.

– Remember ancillary requirements (security,

backups).

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Achieving Strategies

Q1-3 What is MIS?

• Information systems exist to help people achieve

business strategies.

– “What is the purpose of our Facebook page?”

– “What is it going to do for us?”

– “What is our policy for employees’ contributions?” – “What should we do about critical customer

reviews?”

– “Are the costs of maintaining the page sufficiently

offset by the benefits?”

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The Five-Component Model

Q1-4 How can you use the five-component model?

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Characteristics of the Five Components

• Most Important Component – YOU!

– Your cognitive skills determine quality of your

thinking, ability to conceive information from data.

– You add value to information and information

systems.

• Only humans produce information.

• All components must work together.

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Why Is the Difference Between IT and IS

Important to You?

• Avoid common mistake: Cannot buy an IS.

– Can buy, rent, lease hardware, software, and

databases, and predesigned procedures.

• People execute procedures to employ new IT.

• New systems require training, overcoming

employee resistance, and managing employees as they use new system.

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Why Is the Difference Between IT and IS

Important to You? (cont’d)

• High-tech vs low-tech information systems.

– Consider amount of work being moved from people

to computers.

• Understanding scope of new information systems.

– Assess how big an investment new technology

represents.

• Components ordered by difficulty and disruption.

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• Google is one of the largest publicly traded

companies in the world with a diverse portfolio of projects.

• As of August 10, 2015, it was a subsidiary of an

overarching company named Alphabet Inc.

• Page and Brin manage the overall strategy, but not

daily operations of each company.

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A is for Alphabet (cont’d)

So What?

• The company was restructured to:

– Retain top talent in a highly competitive industry.

– Decrease bureaucratic climate.

– Improve internal career trajectories of industry

superstars.

– Make individual companies more nimble, efficient,

and autonomous.

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3 Processed data, or data processed by

summing, ordering, averaging, grouping, comparing, or similar operations.

4 “A difference that makes a difference.”

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Amazon.com Stock Price and Net Income

Figure 1-9 Amazon.com Stock Price and Net Income

Q1-5 What is information?

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Where Is Information?

Q1-5 What is information?

• Graph is not information.

– It’s data people perceive and use to conceive

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Ethics and Professional Responsibility

Figure 1-3 Measuring growth of units sold using different axis values

Ethics Guide

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(cont’d)

Ethics Guide

Immanuel Kant

• Categorical imperative

– One should behave only in a way that one would

want the behavior to be a universal law.

 Are you willing to publish your behavior to the world?

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Imperfect Duty of Business Professionals

Ethics Guide: Ethics and Professional Responsibility

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– Teraflop+ processing power,

– Connect to any electrical device,

– Store/stream every song and movie ever made to

any device,

– Battery life over a month on a single charge.

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Technology in 2027 (cont’d)

Q1-7 2027?

• BYOD common.

• Comprehensive bio-monitoring devices at home,

linked to health care systems.

• Widespread use of Google Glass or Microsoft’s

HoloLens.

• More people work at home or wherever.

• Knowledge and use of business information

systems will be more important, not less.

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Passwords and Password Etiquette

• Different from previous passwords used.

• Contains both upper- and lowercase letters,

numbers, and special characters (such as ˜ ! @; #

$ % ^; &; * ( ) _ +; – =; { } | [ ] \ : “ ; ’ <; >;? , /)

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Passwords and Password Etiquette (cont’d)

Security Guide

• Never write down your password.

• Never ask someone for their password.

• Never give your password to someone.

• “do-si-do” move—move away so another person

can enter password privately.

– Common professional practice.

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Vendors (Microsoft, Oracle, etc.)

Vendors (Acxiom, Google, etc.)

Vendors (SAP, Infor, Oracle)

Recruiters (Robert Half, Lucas Group)

Support Vendors Internal MIS Vendors Internal MIS Database administration

Security

Vendors and internal customer support

Customer support Training

Development Computer engineering

Internal MIS

Application programmer Quality test Engineer

Data modeler Database design

Business process management Process reengineering

Training Internal MIS recruiting Management Internal MIS Internal MIS Data administration Project management Technical management Consulting Project management, development, pre- and postsale support

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Active Review

Q1-1 Why is Introduction to MIS the most important

class in the business school?

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zulily

Case Study 1

• What is the business model?

– Flash sales to mothers:

 Children’s clothes, toys, women’s clothes,

accessories, and décor items.

– IT provides entertaining shopping experience, name

brand goods, unique and difficult-to-find off-brands,

at substantial discounts.

– 45% of sales over mobile devices.

– Curated sales.

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zulily (cont’d)

Figure 1-11 zulily Merchandise Variety

Courtesy of zulily Inc Used by permission

Case Study 1

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Figure 1-13 zulily Performance

Courtesy of zulily Inc Used by permission

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Case Study 1

• How did they do it?

– Buyers identify goods to be sold, negotiate with

vendors

– Photographs sample items in-house, write ad copy – Group items for 3-day sales events.

– After event closes, zulily orders items from vendor,

receives, packages, and ships to customers

(maintains no inventory).

– Vulnerable to vendor’s errors and mistakes.

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Case Study 1

• Use of Technology at zulily

– “Continual innovation through investment in

technology is core to our business.”

– Internet, mobile technology compatibility.

– Developed a proprietary technology platform to

handle Enormous spikes in web processing

demand.

– Extensive data collection and analytics capabilities.

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