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CHAPTER 1

CHAPTER 1. THE INFORMATION AGE IN WHICH YOU LIVE Changing the Face of Business. OPENING CASE STUDY. Pay-Per-Tune Generation and Disruptive Technologies Rock the Record Industry Since 1999, revenues in the recording industry have been on the decline

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CHAPTER 1

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

  2. OPENING CASE STUDY • Pay-Per-Tune Generation and Disruptive Technologies Rock the Record Industry • Since 1999, revenues in the recording industry have been on the decline • Napster and other illegal uses of technologies are partially to blame • But the technology isn’t bad • The way people use it can be

  3. OPENING CASE STUDY • Disruptive technologies (MP3 players and the like in this case) can dramatically change the landscape of business • Your organization must constantly transform itself to compete and survive

  4. STUDENT LEARNING OUTCOMES • Define MIS and IT and describe their relationship • Validate information personally and organizationally as a key resource • Explain why people are the most important organizational resource

  5. STUDENT LEARNING OUTCOMES • Describe IT as a key organizational resource • Define competitive advantage and the role of IT to achieve a competitive advantage • Discuss how IT can and will impact your life

  6. 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 at least four-to-one

  7. INTRODUCTION • MIS – planning for, developing, managing, and using IT tools to help people perform all tasks related to information processing and management • IT – any computer-based tool that people use to work with information and support the information and information processing needs of an organization • Use of technology is exploding

  8. INTRODUCTION

  9. INTRODUCTION • Telecommuting – the use of technologies to work in a place other than a central location

  10. INFORMATION AS A KEY RESOURCE • Data – raw facts • Information – data that have a particular meaning within a specific context

  11. INFORMATION AS A KEY RESOURCE • Business intelligence – knowledge about your customers, competitors, business partners, competitive environment, and own international operations that gives you the ability to make effective, important, and often strategic business decisions. • Business intelligence is a combination of many different types of information

  12. Personal Dimensions of Information

  13. Personal Dimensions of Information • Time • When you need information • Describing the right time period • Location – no matter where you are • Intranet – internal organizational Internet • Form • Usable, understandable, accurate

  14. Organizational Dimensions of Information

  15. Organizational Dimensions of Information • Information flows • Upward – current state of the organization based on its transactions • Downward – strategies, goals, directives • Horizontal – between functional units and work teams • Outward/Inward – to/from customers, suppliers, distributors, and other partners

  16. Organizational Dimensions of Information • Information granularity – extent of detail within the information • Lower organizational levels – tremendous detail (fine) • Higher organizational levels – summarized information (coarse)

  17. Organizational Dimensions of Information • Internal – specific operational aspects of an organization • External – environment surrounding the organization • Objective – something that is known • Subjective – something that is unknown

  18. PEOPLE AS A KEY RESOURCE • You • And technology • Technology-literate knowledge worker – a person who knows how and when to apply technology • The chapters help you determine when to apply technology • The modules help you in applying technology

  19. PEOPLE AS A KEY RESOURCE • Information-literate knowledge workers… • Can define what information they need • Know how and where to obtain information • Understand the information • Can act appropriately

  20. Your Ethical Responsibilities • Ethics and laws are different • Laws require or prohibit action on your part • Ethics are more of a matter of personal interpretation • Ethics – the principles and standards that guide our behavior toward other people • Sometimes ethics and laws collide

  21. Your Ethical Responsibilities Try to always be here

  22. IT AS A KEY RESOURCE • Information technology (IT) – any computer-based tool that people use to work with information and support the information and information-processing needs of an organization • Two categories of technology • Hardware • Software

  23. Key Technology Categories

  24. Key Technology Categories • Hardware – the physical devices that make up a computer • Software – the set of instructions that your hardware executes to carry out a specific task for you • Module A covers technology categories in detail

  25. Technology Hardware • Input device – enter information and commands • Output device – receive the results • Storage device – stores information • CPU – hardware that interprets and executes the software • RAM – temporary holding area for information and software

  26. Technology Hardware (cont’d) • Telecommunications device – sends information to and receives it from another person or computer in a network • Connecting hardware – hardware that connects other hardware (e.g., ports, cables, etc.)

  27. Technology Software • Application software – enables you to solve specific problems or perform specific tasks • System software – handles tasks specific to technology management and coordinates the interaction of all technology devices

  28. Technology Software • Two types of system software • Operating system software – controls your application software and manages how your hardware devices work together • Utility software – provides additional functionality to your operating system software (e.g., anti-virus software)

  29. Decentralized Computing, Share Information, & Mobile Computing

  30. Decentralized Computing • Decentralized computing – an environment in which an organization distributes computing power and locates it in functional business areas as well as on the desktops of knowledge workers • Servers • Personal computers • PDAs • Tablet PCs

  31. Shared Information • Shared information – an environment in which an organization’s information is organized in one or more central locations, allowing anyone to access and use it as he or she needs to • Necessary because businesses are greatly internally integrated today

  32. Mobile Computing • Mobile computing – broad general term describing your ability to use technology to wirelessly connect to and use centrally located information and/or application software • M-commerce – electronic commerce conducted over a wireless device such as a cell phone, PDA, or notebook computer

  33. IT IN SUPPORT OF BUSINESS • Competitive advantage – providing a product or service in a way that customers value more than what the competition is able to do • Use technology for • Operational excellence • Major business initiatives • Decision making • Organizational transformation

  34. Operational Excellence • Being efficient in what you do • Transaction processing system (TPS) – processes transactions within an organization • Customer self-service system – extension of a TPS that places technology in the hands of an organization’s customers and allows them to process their own transactions

  35. Operational Excellence • TPSs and customer-self service systems require the use of databases and database management system (DBMS) software • Databases contain tremendous detail on every transaction • DBMS is the software bridge between a database and the actual software application

  36. Operational Excellence

  37. Major Business Initiatives • Customer relationship management (CRM) • Enterprise resource planning (ERP) • Sales force automation (SFA) • Supply chain management (SCM) • All are important major business initiatives • The entire focus of Chapter 2

  38. Major Business Initiatives • Supply chain management (SCM) – tracks inventory and information among business processes and across companies • Supply chain management (SCM) system – an IT system that supports supply chain management activities by automating the tracking of inventory and information among business processes and across companies

  39. Supply Chain Management

  40. Supply Chain Management • Uses EDI to facilitate the movement of information • 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

  41. Major Business Initiatives • Another focuses on managing knowledge • Knowledge management (KM) system – an IT system that supports the capturing, organization, and dissemination of knowledge (i.e., know-how) throughout an organization • Helps you avoid “reinventing the wheel”

  42. Decision Making • Online transaction processing (OLTP) – the gathering of input information, processing that information, and updating existing information to reflect the gathered and processed information • Other IT systems support OLAP • Online analytical processing (OLAP) – the manipulation of information to support decision making

  43. Decision Making • Two types of technology support • Support for analyzing a situation • Executive information system (EIS) – highly interactive IT system that allows you to first view highly summarized information and then choose how you would like to see greater detail

  44. Executive Information System (EIS)

  45. Decision Making • Collaboration systems help groups of people analyze a situation • Collaboration system – a system that is designed specifically to improve the performance of teams by supporting the sharing and flow of information

  46. Decision Making • Other technology systems can actually make a recommendation to you • Artificial intelligence – the science of making machines imitate human thinking and behavior • Neural network – type of AI that recognizes and differentiates patterns

  47. Organizational Transformation • Organizations must continually transform to… • Stay ahead of the competition • Offer a competitive advantage • Survive

  48. Organizational Transformation • Many organizations turn to ASPs to help with their transformational technologies • Application service provider (ASP) – supplies software applications (and often related services such as maintenance, technical support, and the like) over the Internet that would otherwise reside on its customers’ in-house computers

  49. IT IN YOUR LIFE • Your career • Learn IT tools no matter your career choice • Vertical market software – specific to a given industry • Horizontal market software – general to many industries (e.g., accounting and payroll) • You will have to manage technology

  50. Ethics, Security, & Privacy • Some software is “bad” • Spyware (sneakware, stealthware) – software that comes hidden in free downloadable software and tracks your online movements, mines the information stored on your computer, or uses your computer’s CPU and storage for tasks you know nothing about

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