1 Chapter 1 THE INFORMATION AGE IN WHICH YOU LIVE Changing the Face of Business Chapter 1 Today’s Economic Environment MIS InformationPeople Information Technology Roles and Goals of IT

2 ? What is a system?

3 What is an Information System? A set of interrelated components that collect, manipulate, and disseminate data and information and provide a feedback mechanism to meet an objective. Input of Data Resources Input of Data Resources Processing Data Processing Data Output of Information Products Output of Information Products Control of System Performance Storage of Data Resources

4 As a Formal Definition: 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. Introduction Continued

5 Today we live in an Information age Where knowledge is power. Businesses are using information to gain and sustain a competitive advantage. Once you finish your program, you will enter the marketplace as a knowledge worker. Knowledge worker works with and produces information as a product. A knowledge worker outnumbers all other types of workers by a 4-to-1 margin. Introduction

6 Where does MIS fit in today's’ information age and why is it so important? Because it deals with the coordination and use of 3 important organizational resources: Information Information Technology and People Introduction Continued

7 Chapter 1 Today’s Economic Environment MIS InformationPeople Information Technology Roles and Goals of IT For a business to be successful today, it has to understand and operate in dynamic, fast-paced and changing economic environment. What does today’s economic environment entail? The E.Conomy The “Now” Economy The Global Economy The Arriving Digital Economy

8 Work anytime anyplace. The E.conomy Today’s Economic Environment Distance Learning Telephone service representative working from home

9 The E.conomy Figure 1.1 Telecommuting – Canadian Statistics page 6 Today’s Economic Environment

10 The “Now” Economy Characterized by the immediate access customers have to the ordering of products and services. M-commerce – electronic commerce conducted over a wireless device such as a cell phone or personal digital assistant. Case studyCase study Team Work I Want It! (p.8) Today’s Economic Environment

11 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. Today’s Economic Environment

12 The Global Economy Figure 1.2 Total Import and Export Figures, 1998 to 2000 (millions of Canadian dollars) page 9 Today’s Economic Environment

13 The Arriving Digital Economy Digital economy – marked by the electronic movement of all types of information including physiological information such as: Voice recognition Speech synthesization Biometrics Holograms Today’s Economic Environment

14 Chapter 1 Today’s Economic Environment MIS InformationPeople Information Technology Roles and Goals of IT 1.Information is one of the three components of MIS. 2.Information leads to knowledge and knowledge is power. 3.Knowledge comes from having timely access to information and knowing what to do with it. Information as a Key Resource

15 There are three aspects to information: 1. Data V.S. Information. 2. Personal dimensions of information. 3. Organization’s dimensions of information. MIS Information PeopleInformation Technology

16 Data versus Information Data: Raw facts, such as an employee’s name and number of hours worked in a week, inventory part numbers, or sales orders. Information: A collection of facts organized in such a way that they have additional value beyond the value of the facts themselves WestCharles Mann 79154TM Shoes Monthly Sales Report for West Region Sales Rep: Charles Mann Emp No Item Qty Sold Price TM Shoes 1200 $100

17 Personal Dimensions of Information Figure 1.3 Personal Dimensions of Information page 10 MIS Information PeopleInformation Technology

18 Organizational Dimensions of Information For your own business or while working in a company, you need to consider the various organizational dimensions of information, including: Information flows Information granularity and What information describes. MIS Information PeopleInformation Technology

19 Organizational Dimensions of Information Figure 1.4 An Organization, Its Information Flows, and Information Granularity page 12 MIS Information PeopleInformation Technology

20 Organizational Dimensions of Information Granularity Information granularity – refers to the extent of detail within the information. MIS Information PeopleInformation Technology

21 Organizational Dimensions of Information What information describes 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. MIS Information PeopleInformation Technology

22 Chapter 1 Today’s Economic Environment MIS InformationPeople Information Technology Roles and Goals of IT People 1.Set goals 2.Carry out tasks 3.Make decisions 4.Serve customer 5.Provide a stable and reliable technology environment. People as a Key Resource When it comes to you (the people) there are two important issues to be aware of: 1.Information and technology literacy. 2.You ethical responsibilities.

23 Information and Technology Literacy The single most important resource in any organization is its people. To be more precise, the most valuable asset to the organization is your mind. MIS Information People Information Technology

24 Information and Technology Literacy A Technology-literate knowledge worker is a person who knows how and when to apply technology. HOW is knowing what technology to buy and how to exploit it benefits. When is knowing the right time to apply technology. MIS Information People Information Technology

25 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. MIS Information People Information Technology

26 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. MIS Information People Information Technology

27 Which ones are ethical / legal or not? Consider: Copying software you purchased, making copies for your friends and charging them for the copies. This is not ethical nor legal. Making extra backup copies. It is ethical but only legal to make one backup copy. Giving out the phone numbers of your friends and relatives without their permission to a provider of some sort. Not ethical. MIS Information People Information Technology

28 Your Ethical Responsibilities Figure 1.5 Acting Ethically and Legally page 16 MIS Information People Information Technology

29 Your Ethical Responsibilities On Your Own Electronic Mail or Expensive Mail? (p. 17) MIS Information People Information Technology

30 Chapter 1 Today’s Economic Environment MIS InformationPeople Information Technology Roles and Goals of IT Information Technology is any computer-based tool that people use to work with information and support the information and information processing needs of an organization. IT as a Key Resource

31 There are two basic categories of technology: Hardware – physical devices that make up a computer. Software – set of instructions that the hardware executes to carry out a specific task. MIS InformationPeople Information Technology

32 Key Technology Categories Hardware categories Input devices Output devices Storage devices Central processing unit Random access memory Telecommunications devices Connecting devices On Your Own Identifying Hardware And Software (p. 21) MIS InformationPeople Information Technology

33 Key Technology Categories Software categories Application software Operating system software Utility software (See Figure 1.6 on page 19 for a complete overview of software categories.) MIS InformationPeople Information Technology

34 Decentralized Computing and Shared Information Figure 1.7 Decentralized Computing and Shared Information page 21 MIS InformationPeople Information Technology

35 Chapter 1 Today’s Economic Environment MIS InformationPeople Information Technology Roles and Goals of IT Roles and Goals of IT relates to the reasons you wish to buy, create, implement, use, and integrate IT into your business strategy. Roles and Goals of Information Technology

36 1. Increase employee productivity 2. Enhance decision making 3. Improve team collaboration 4. Create business partnerships and alliances 5. Enable global reach 6. Facilitate organizational transformation Roles and Goals of IT

Increase Employee Productivity Online transaction processing (OLTP) Transaction processing system (TPS)- pepsi case Transaction processing system (TPS) Customer-integrated system (CIS) Roles and Goals of IT

Increase Employee Productivity Figure 1.9 Transaction Processing and Customer-Integrated Systems page 24 Roles and Goals of IT

Enhance Decision Making Online analytical processing (OLAP) Artificial intelligence Neural network Executive information system (EIS) Roles and Goals of IT

Enhance Decision Making Figure 1.10 Drilling Down with an Executive Information System page 25 Roles and Goals of IT

Improve Team Collaboration Collaboration system – designed specifically to improve the performance of teams by supporting the sharing and flow of information. Leo burnett case Leo burnett case Groupware – software components that supports the collaborative efforts of a team. Roles and Goals of IT

Create Business Partnerships and Alliances Interorganizational system (IOS) Electronic data interchange (EDI) Team Work Finding Business Partners and Alliances on The Web (p. 27) Roles and Goals of IT

Enable Global Reach Roles and Goals of IT

Facilitate Organizational Transformation Organizational transformation is necessary to respond to the ever- changing needs (and wants) of today’s marketplace. Blockbuster now provides movies on a pay-per-view rental basis through cable. Roles and Goals of IT

45 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?