Managing in a Digital World
MIS2101: Management Information Systems
Based on material from Information Systems Today: Managing in the Digital World, Leonard Jessup and Joseph Valacich, Pearson Prentice Hall, 2007 Also includes material by David Schuff, Paul Weinberg, and Cindy Joy Marselis.
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“You can’t just ask people what they want and then try to give it to them. By the time you get it built, they’ll want something else”
Steve Jobs, Apple Computer (on pleasing customers)
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Learning Objectives
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Learning Objectives
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Characteristics of the Digital World
The Knowledge WorkerTerm coined by Peter Drucker in 1959An individual who is relatively well
educated and who creates, modifies and/or synthesizes knowledge as a fundamental part of a job
Knowledge SocietyNew Economy/Digital World
• Digital Divide
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The Knowledge Society
Information is now as important as land, labor and capital.
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Globalization
Globalization manifests itself through changes in economy, cultures and technology.
• Globalization is the integration of economies throughout the world, enabled by technological progress.
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Information Systems: Definition
Combination of five six key elements: People Hardware Software Data Telecommunications
networks Processes
A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization.. . . Source: Laudon, K & Laudon, J, Managing Information Systems
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Six MIS Functions
Function Description Example
Capture Obtain representation of info in a form for transmission and storage
Keyboard, bar code scanner, document scanner, optical character recognition, sound recorder, video camera, voice recognition software
Transmit Move info from place to place
TV, satellite broadcasts, telephone networks, data networks, fiber optic cable, voice mail, internet
Store Move info to specific place for later retrieval
Paper, computer tape, floppy disk, hard disk, optical disk, CD-ROM, flash memory
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Six MIS Functions Function Description Example
Retrieve Find specific information needed
Paper, computer tape, floppy disk, hard disk, flash memory
Manipulate Create new info from existing info through summarizing, sorting, rearranging, reformatting, etc.
Computer and software
Display Show info Printer, computer screen
How have these functions changed in the past 10 years?
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Data: A key component of information systems
Distinction between:Data – raw, unformatted information
• E.g.: 5433333353Information – data that is transformed to
have a meaning• E.g.: (543) 333-3353
Knowledge – body of governing procedures used to organize or manipulate data
Wisdom – accumulated knowledge
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Data: A key component of information systems
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Learning Objectives
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Builders and Managers of IS
Career opportunities are strong and expected to growComputer/IT analyst and Computer &
IS Manager both in the top 10 best jobs for the next decade
• Median earnings for managers $102,360 (May 2005)
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Best Jobs for the Next Decade
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Careers and Salaries in the IS Field (National Average)
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Careers in IS: Evolution of the CIO
Chief Information Officer (CIO) – job title became popular in 1980s
Early 1990s – people joked that CIO stands for “Career Is Over”
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The CIO Today
Most large and midsize organizations have a CIO
Rob Carter of FedEx – CIO of the year (2006)
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What Makes IS Personnel Valuable?
Integrated knowledge and skills in three areas:Technical Competency - skills in hardware,
software, networking and securityBusiness Competency – understanding of the
nature of the business; this is key in addition to the technical competency
System Competency – understanding of how to build and integrate large scale systems
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The Context of IS
Many different types of systems are used in organizations E.g.: transaction processing systems, decision
support systems, intelligent systems, etc. These systems used to be cleanly categorized –
now the boundaries are fading due to integration.
But management requirements for each type of system are different.
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Changing Assumptions
Old: Long-range planning importantNew: Adaptability important
Old: Information systems record information about the workNew: Information systems do the work
Old: People have stable jobs and careersNew: Work environments and job duties change rapidly. Country boundaries don’t matter.
What does technology have to do with each of these?
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End User Development
The advent of the PC and early applications packages led to end-user development
This has created new opportunities but also management challenges.
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Other Issues and Opportunities Faced by the IS Function
The spread of technology in organizations Downsizing and Outsourcing Career prospects and opportunities
Need for people within organizations with analyst skills that also have technology skills
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Other Issues and Opportunities Faced by the IS Function
Greater Miniaturization, Speed, and Portability miniaturization integrated circuit Moore’s Law portability
Greater Connectivity and Continuing Convergence of Computing and Communications connectivity interoperabiliity open systems convergence of computing and communications
Greater Use of Digitized Information and Multimedia digitization multimedia
Better Software Techniques and Interfaces with People
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Miniaturization Moore’s Law
Chip capacities (storage and processing) have doubled every 18 months
Why? Because they are getting smaller. But there are problems, for example…
“Chip gates” are becoming too small to block electrons, which determine the 1s from the 0s
How to get around laws of quantum mechanics?Moore himself said we may hit the limit by 2017
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The Computer Revolution: Moore’s Law Drives Microchip Performance Up...
Source: Brynjolfsson, E. and S. Yang “Information Technology and Productivity:A Review of the Literature”, Advances in Computers, 1996.
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Pentium
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100
1,000
10,000
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1970 1975 1980 1985 1990 1995 2000 2005Year
Transistors/Die
Microprocessor DRAM
52%/year growth
42%/year growth
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Source: Brynjolfsson, E. and S. Yang “Information Technology and Productivity
A Review of the Literature”, Advances in Computers, 1996.
The Computer Revolution…and Computer Costs Down…
28Information Systems Today: Managing in the Digital World 1-28
Learning Objectives
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The Dual Nature of IS
IS can make you or break you U.S. Navy – The failure
$ 1 billion wasted on 4 different ERP applications
FedEx – The success$ 32 billion family of companies –
largest express transportation company“Information hub for business where
managing information is the business”
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Why Information Systems Matter
Nicholas Carr article – “IT Doesn’t Matter”
IT no longer a source of advantage on the firm level Companies should focus IT on cost reduction and
risk mitigation Many experts disagreed with his arguments
Abbie Lundberg – Interview with Carr Don Tapscott – “The Engine That Drives Success: The
Best Companies Have the Best Business Models Because They Have the Best IT Strategies”
• Many successful companies use IT to support a unique business strategy
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Major Ideas
Integration: There are no boundaries between Business process design and technology
design Major business functions
Location doesn’t matter IT does matter
IT is a major driver of business innovation The use of technology by itself doesn’t
guarantee success
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Some keys to success . . .
Avoid unrealistic expectations Understand the issues associated with building,
modifying, and integrating systems Be able to handle organizational inertia Consider what may happen to business and
technology during the lifespan of a system Be sure technology and business initiatives are
linked
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In this course . . .
You won’t be learning programming, algorithm design, or database structure
You will be learning critical thinking about technology’s role in overall business success How business and IT professionals communicate What roles IT plays in modern business firms How to get things done using IT How to get value from IT initiatives
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Cases
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ChoicePoint Inc.
Identity theft – the crime of the 21st century 8.9 million victims in the first 7 months of 2006
ChoicePoint maintains 19 billion pieces of information on virtually every adult in the US 2005 – identity thieves bought more than 100,000
records from ChoicePoint• 750 of these became victims of identity theft
In 2006 ChoicePoint was fined $10 million for the security breach
• $ 5 million was paid to consumers affected by this• Security audits implemented
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MTV Europe
The most international television network in the world
Now working to break into a new medium: mobile television screens MTV-Europe:
testing ground