Chapter 1 THE INFORMATION AGE IN WHICH YOU LIVE Changing the Face of Business

1. Chapter 1THE INFORMATION AGE IN WHICH YOU LIVEChanging the Face of Business

2. ? What is a system?

3. Control of System Performance Input of Data Resources Processing Data Output of Information Products Storage of Data Resources 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.

4. Introduction Continued 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.

5. Introduction 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.

6. Introduction Continued • 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 importantorganizational resources: • Information • Information Technology and • People

7. 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. Today’s Economic Environment The E.conomy • Distance Learning • Telephone service representative working from home

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

10. Today’s Economic Environment 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 study Team Work I Want It!(p.8)

11. Today’s 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.

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

13. Today’s Economic Environment 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

14. Information as a Key Resource • Information is one of the three components of MIS. • Information leads to knowledge and knowledge is power. • Knowledge comes from having timely access to information and knowing what to do with it.

15. MIS Information People Information Technology There are three aspects to information: • Data V.S. Information. • Personal dimensions of information. • Organization’s dimensions of information.

16. Monthly Sales Report for West Region 1200 100 West Charles Mann 79154 TM Shoes Sales Rep: Charles Mann Emp No. 79154 ItemQty SoldPrice TM Shoes 1200 $100 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

17. MIS Information People Information Technology Personal Dimensions of Information Figure 1.3 Personal Dimensions of Information page 10

18. MIS Information People Information Technology 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.

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

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

21. MIS Information People Information Technology Organizational Dimensions of InformationWhat 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.

22. People as a Key Resource • People • Set goals • Carry out tasks • Make decisions • Serve customer • Provide a stable and reliable technology environment. • When it comes to you (the people) there are two important issues to be aware of: • Information and technology literacy. • You ethical responsibilities.

23. MIS Information People Information Technology 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.

24. MIS Information People Information Technology 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.

25. MIS Information People Information Technology 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.

26. MIS Information People Information Technology 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.

27. MIS Information People Information Technology 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.

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

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

30. IT as a Key Resource 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.

31. MIS Information People Information Technology • 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.

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

33. MIS Information People Information Technology 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.)

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

35. Roles and Goals of Information Technology Roles and Goals of IT relates to the reasons you wish to buy, create, implement, use, and integrate IT into your business strategy.

36. Roles and Goals of IT • Increase employee productivity • Enhance decision making • Improve team collaboration • Create business partnerships and alliances • Enable global reach • Facilitate organizational transformation

37. 1 - Increase Employee Productivity Roles and Goals of IT • Online transaction processing (OLTP) • Transaction processing system (TPS) • Customer-integrated system (CIS)

38. 1 - Increase Employee Productivity Roles and Goals of IT Figure 1.9 Transaction Processing and Customer-Integrated Systems page 24

39. 2 - Enhance Decision Making Roles and Goals of IT • Online analytical processing (OLAP) • Artificial intelligence • Neural network • Executive information system (EIS)

40. 2 - Enhance Decision Making Roles and Goals of IT Figure 1.10 Drilling Down with an Executive Information System page 25

41. 3 - Improve Team Collaboration Roles and Goals of IT • 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.

42. Team Work Finding Business Partners and Alliances on The Web(p. 27) 4 - Create Business Partnerships and Alliances Roles and Goals of IT • Interorganizational system (IOS) • Electronic data interchange (EDI)

43. 5 - Enable Global Reach Roles and Goals of IT

44. 6 - Facilitate Organizational Transformation Roles and Goals of IT • 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.

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?