Chapter 1 The Importance of MIS

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: 2023? Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Q1: Why Is Introduction to MIS the Most Important Class in the Business School? Learn to assess, evaluate, and apply emerging information technology to business Gain marketable skills and perspectives Moore’s Law creates infinite opportunities for innovation MIS course provides background you need to assess, evaluate, and apply emerging information technology to business. Developing your marketable skills will help attain job security. Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Moore’s Law Moore's Law states: “Number of transistors per square inch on an integrated chip doubles every 18 months.” Result: Speed of computer chips increases in proportion to density of transistors, and Price/performance ratio of computers doubles every 18 months Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Consequences Moore’s Law What happens when data storage and communications costs are essentially zero? YouTube, iPad, Facebook, Woot.com, Pandora, Twitter, LinkedIn, Foursquare Cost-effective business applications of Facebook and Twitter Companies using technology and techniques in ways never been seen before Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

What Other Cost Effective Business Applications of Facebook, Twitter, or Whatever Will Soon Appear? Are Facebook’s “Like” and Twitter’s “Follow” applications cost-effective? Do they generate revenue worth and expense of running them? What about cloud apps? Someone in marketing, not in a technical field, must answer those questions Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

How Can I Attain Job Security? "The only job security that exists is a marketable skill and the courage to use it.” Any routine skill can and will be outsourced to lowest bidder Message: Develop strong nonroutine cognitive skills Because of Moore’s Law. Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

What Is a Marketable Skill? Rapid technological change and increased international competition place spotlight on skills and preparation of the workforce, particularly ability to adapt to changing technology and shifting demand. Shifts in nature of organizations favor people with strong nonroutine cognitive skills. Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Job Growth over the Past Twenty Years One in two recent college graduates either unemployed or underemployed, but, not in all job categories. If you have a degree in creative writing or European history, jobs may be hard to find. Situation is dramatically different for computer related information systems jobs. Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Bottom Line of MIS Course Ethics Guides in every chapter help students to think about ethical dilemmas and clarify their values so they will be ready to respond authentically to future ethical challenges. Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Q2: What Is MIS? MIS is about management, use and alignment of IS to achieve business strategies. An information system is a group of five components that interact to produce information. As you think about any information system, learn to look for these five components. Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Development and Use of Information Systems Business professionals need to: Take active role in IS to ensure systems meet their needs Understand how information systems are constructed Consider users’ needs during development Learn how to use information systems Take into account ancillary IS functions (security, backups) Business professionals must ask relevant questions, such as: “What is the purpose?” “What does it do for us?” “Is it the best choice?” “Are the costs offset by the benefits?” Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Achieving Strategies MIS empowers users to achieve business objectives Information systems exist to assist business people Information systems exist to help achieve business goals and objectives • “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?” Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Q3: How Can You Use the Five-Component Model? Note the symmetry of the model components. Hardware and people are “actors” that perform actions. Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Purpose of the Five-Component Model Understanding scope of new information systems Components ordered by difficulty to change and amount of disruption Order of components relates to relative ease to change and amount of organizational disruption involved in changing each component. Automation involves moving work from human side to computer side. Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

The Most Important Component – YOU Quality of your thinking Change way your brain works Know how to use information systems Consider different low-tech versus high-tech alternatives Understand scope of new information systems You cannot increase your basic IQ, but you can improve the quality of your thinking. Even if you have a perfect information system, if you don’t know what to do with it, you’re wasting your time and money. Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Using MIS InClass 1: Information Systems & Online Dating Match by using a proprietary algorithm www.Chemistry.com (personality test) www.Eharmony.com (compatibility matching system) www.Perfectmatch.com (Test based on Duet) Particular groups or interests www.Conservativedates.com www.Liberalhearts.com www.Goodgenes.com Goal: Practice using five component framework and four nonroutine cognitive skills.   Hardware:  Servers that store Web pages, customer data, and run profile development and person matching applications Software: Web server and database server operating systems, database management system, HTML pages, and application software that does personality assessment and person matching Data: Facts about business events or activities Procedures: Ways clients interact with system, enter data, get results, decide to pursue certain matches, etc. People: Clients and those who developed and maintain the site and customer support personnel Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Q4: Why Is the Difference Between IT and IS Important? Information technology (IT) Products Methods Inventions Standards IT = hardware + software + data Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Q4: Why Is Difference Between IT and IS Important? (cont'd) You can buy IT, but can never buy an IS! People require training, overcoming employees’ resistance to change, managing employees using new system IS = IT + People + Procedures Knowing the difference can help avoid making a common business mistake—trying to buy an IS. Trying to buy an IS is impossible because of the human element of IS, which requires custom-tailored solutions. Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Why Is the Difference Between Information Technology and Information Systems Important to You? (cont’d) Avoid a common mistake: Cannot buy an IS Can buy, rent or lease hardware, software and databases, predesigned procedures People execute procedures to employ new IT Requires training, overcoming employees’ resistance, and managing employees who use system Assume your organization decides to develop a Facebook page. Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Q5: What Is Information? Knowledge derived from data, and data are recorded facts or figures Data presented in a meaningful context Data processed by summing, ordering, averaging, grouping, comparing, or other similar operations "A difference that makes a difference" Four definitions discussed in chapter. Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Does this graph contain information? Where Is Information? Does this graph contain information? Amazon’s stock price and net income over its history. This graph is data humans perceive and conceive as information. If it’s on paper or a digital screen, it’s data. If it’s in a human's mind, it’s information. Use this to explain why people are the most important part of an information system. Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Q6: What Are Necessary Data Characteristics? Data Characteristics of Good Information Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Ethics Guide: Ethics of Misdirected Information Use Overhear a conversation between a real estate agent and the couple competing with you to purchase a condo. Should you listen? Should you use the information you hear? Receive same information through an email accidentally sent to you. Should you read the email? Should you use the information to your advantage? Goals Teach students about the problem of unintentionally revealing sensitive data in public places. Explore ethical issues concerning the use of misdirected data. Differentiate between unethical and illegal. Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Ethics Guide: Ethics of Misdirected Information Use (cont’d) While selling computer software, a customer mistakenly sends you an internal email that contains maximum amount they can pay. Do you share the email with others? Do you notify the person who sent it? Do you use the information or recuse yourself from the deal? What’s the ethical thing to do? What’s the best long- term business thing to do? Explain. What should a moral business professional do? How can developing a reputation of high integrity and professional standards have long-term benefits? Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Ethics Guide: Ethics of Misdirected Information Use (cont’d) A friend inadvertently emails you personal medical data. You read the email and learn embarrassing information about the friend. Your friend asks if you read the email. What should you say? Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Ethics Guide: Ethics of Misdirected Information Use (cont’d) Suppose you are a network administrator with unrestricted access to mailing lists. You insert your email address into several lists and receive confidential information. One email shows that your best friend’s department is going to be eliminated. Do you warn him/her? Warning your friend would be very unethical and undoubtedly against company policy. It could get you fired. You probably should not have put yourself on the list to receive confidential information. Certainly, you should not tell anyone about the message. Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Ethics Guide: Ethics of Misdirected Information Use (Summary) How do you define “legal” and “ethical”? Can something be against corporate policy and still be legal? What is your personal policy about dealing with misdirected information? Did your thinking change as a result of this discussion? If so, how? These are questions to ask the class as a wrap up discussion. What system of moral principles governs conduct for business professionals? Get students to think about how developing a reputation of high integrity and professional standards can have long-term benefits. Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Q7: 2023 Most computers won’t look like a computer Computers-in-a-product 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” and get accredited degree? Everyday items now have embedded computers to collect data and interact over the Internet. Between now and 2023, you should look for opportunities to include networked computers into products you’re making, marketing, or selling. Who will be the big winners? Students. Publishers will sell innovative content over the Kindles-to-be that could eliminate used books. Students will pay $40 instead of $140 for a textbook, while book resellers will lose. If you can learn on your own, why go to a traditional campus or classroom when you could learn from an online class for $3,500 per year? Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Guide: Passwords and Password Etiquette Never write down or share your password Never ask anyone for their password Use “do-si-do” move Goals: Teach the students an easy way to create and remember strong passwords. Teach the students proper password etiquette. Emphasize the importance of passwords and password protection. Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Creating a Strong Password Rules for strong password: Use nine or more characters Do not use your name or company name Do not use complete dictionary word Use a different password from previous passwords Use both upper- and lower-case letters, numbers and special symbols One technique for creating memorable, strong passwords is to base them on first letter of words in a phrase. Phrase could be title of a song, first line of a poem, or some fact about your life using a phrase related to purpose or nature of the account. Examples: Work: “Back in the saddle at 8:00 AM.” Bitsa8:00AM eBay: “I want to sell more than 1,000 dollars of goods.” Iwts>1000dog Bank: “Is University Savings before 3rd Street?” IUS<3rdS? Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall

Five-Component Careers GOALS Motivate students for this course and in others by reminding them of the need to be preparing for jobs now. Employment will not necessarily be easy. Broaden students’ perspectives about MIS careers. Many exciting jobs other than programmer or hardware specialist exist. Make students aware of interesting jobs that require MIS skills are not necessarily computer jobs. Professional sales, for example. Re-enforce five component model and show students another way they can use it to guide their thinking. Copyright © 2014 Pearson Education, Inc. Publishing As Prentice Hall