Ch1 Kroenke Umis8e Inppt01

8/18/2019 Ch1 Kroenke Umis8e Inppt01

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The Importance of MIS

Chapter 1


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“But Today, They’re Not Enough.”

C o p y r i g h t © 2 0 1 6 P e a r s o n E d u c a t i o n , I n c .

Jennifer lacks skills AllRoad Parts needs

1. Abstract reasoning skills.

2. Systems thinking skills.

3. Collaboration skills.

4. Experimentation skills.


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Study Questions


Q1: Why is Introduction to MIS the most important class in the bus

school?Q2: What is MIS?

Q3: How can you use the five-component model?

Q4: Why is the difference between information technology and infosystems important?

Q5: What is information?

Q6: What are necessary data characteristics?

Q7: 2025?


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Q1: Why Is Introduction to MIS the Most ImClass in the Business School?


Moore’s Law

• “The number of transistors per square inch on an inte

chip doubles every 18 months.”


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Computer Price/Performance Ratio HistoricaTrend



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Some Consequences


• Google+ • Pintrest

• Vine • Zulily

• Pandora • Twitter

• LinkedIn • Tableau

None prominent in 2010, most didn’t exist in


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What Are the Cost Effective Business ApplicationsFacebook, Twitter, or Whatever Will Soon Appear


• Are Facebook’s “Like” and Twitter’s “Follow” applications co

effective? Do they generate revenue worth and expense of them? What about cloud apps?

• Marketing people, not in a technical specialist, must answerquestions.


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How Can I Attain Job Security?


• Only job security is a marketable skill and courage to us

• Any routine skill can and will be outsourced to lowest b

• Message: Develop strong non-routine cognitive ski


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What Is a Marketable Skill?



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How Can Intro to MIS Help You Learn Non-RSkills?


• Abstract Reason

– Ability to make and manipulate models. – Learn five components of an information system mod

– Chapter 5: How to create data models.

– Chapter 10: How to make process models.


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How Can Intro to MIS Help You Learn Non-RSkills? (cont’d)


• Systems Thinking

– Ability to model system components, connect inputsoutputs among components to reflect structure anddynamics of system observed.

– Ability to discuss, illustrate, critique systems; compaalternative systems; apply different systems to differ

situations.

http://systems-thinking.org/stada/stada.htmhttp://systems-thinking.org/stada/stada.htmhttp://systems-thinking.org/stada/stada.htm


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• Collaboration

– Two or more people working together to achieve a goal, result, or work product.

– Chapter 2 discusses collaboration skills and illustraseveral sample collaboration information systems.

http://www.nsdc.org/standards/collaborationskills.cfmhttp://www.nsdc.org/standards/collaborationskills.cfm


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• Ability to Experiment

– Make reasoned analysis of an opportunity; developinevaluating possible solutions.

“I’ve never done this before.”

“I don’t know how to do it.”

“But will it work?”

“Is it too weird for the market?”

• Avoid "Fear of failure paralyzes".


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Job Growth over the Past Twenty Years



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Bottom Line of MIS Course



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Q2: What Is MIS?


• Key elements

1. Management and use

2. Information systems

3. Strategies

• Goal of MIS

– Managing IS to achieve business strategies


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What Is MIS (cont’d)


Management

• Develop, maintain, adapt by: – Creating an information system that meets your ne

take an active role in system’s development. Why?

• Business professionals use cognitive skills to undersbusiness needs and requirements.


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Components of an Information System?


Components interact to produce information


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Development and Use of Information System


• Business professionals need to: – Take active role to ensure systems meet their need

– Understand how IS is constructed.

– Consider users’ needs during development.

– Learn how to use the IS ancillary (security, backups


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Achieving Strategies


• Information systems exist to help people achieve

business strategies. – “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 offthe benefits?”


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Q3: How Can You Use the Five-ComponentModel?



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Characteristics of the Five Components


• Most Important Component

YOU! – Your cognitive skills determine quality of your thi

ability to conceive information from data.

– Information is value you add to information syste

All IS components must work together.


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Characteristics of the Five Components (con


• High-tech versus low-tech information systems.• Understanding scope of new information system

• Components ordered by difficulty and disruption


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Why Is the Difference Between Information Technand Information Systems Important to You?


• Avoid a common mistake: Cannot buy an IS. – Can buy, rent, lease hardware, software, and databa

and predesigned procedures.

• People execute procedures to employ new IT.

• Use of a new system requires training, overcoming emresistance, and managing employees as they use new


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So What? What’s Your Number?


• Sum Costs :

– Tuition and textbooks – Housing cost (dorm or rent)

– Food and entertainment

– Transportation and other fees

– Computing equipment, supplies, etc.

• Divide by total number of credit hours you're taking.• Multiply cost per hour by length of class (1 hr., 1.5 hrs., 3

= Cost per class meeting


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So What? What’s Your Number? (cont'd )


• Assume you learned:

– Need to assess, evaluate, and apply emerginginformation systems technology to business.

– Marketable skills: abstraction, systems thinkincollaboration, and experimentation.

– Information systems five components: hardwasoftware, data, procedures, people.


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Q4: Why Is the Difference Between IT and IImportant to You?


• Information technology drives development of ne

information systems.• Information technology (IT)

1. Products2. Methods3. Inventions

4. Standards IT components = Hardware + Software + Data IS = IT + Procedu res + Peop le

http://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Information_technology


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Q5: What Is Information?


Definitions vary:

1. Knowledge derived from data, where data arerecorded facts or figures.

2. Data presented in a meaningful context.

3. Processed data, or data processed by summin

ordering, averaging, grouping, comparing, or osimilar operations.

4. A difference that makes a difference.


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Where Is Information?


• Graph is not, itself, information. – Graph is data you and others perceive, use to

conceive information.

• Ability to conceive information from data determinecognitive skills.

• People perceive different information from same d


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Amazon.com Stock Price and Net Income



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Q6: What Are Necessary Data Characterist


Ethics Guide: Ethics and Professional


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Ethics Guide: Ethics and ProfessionalResponsibility


Which graph do you present?


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Immanuel Kant


• Categorical imperative – One should behave only in a way that one wou

want the behavior to be a universal law.

Are you willing to publish your behavior to world?


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Duty


• Necessity to act in accordance with categoricalimperative.

• Perfect du ty - behavior must always be met. (Not

• Imperfect duty - a action praiseworthy, but not req

– Giving to charity; developing your business skillabilities.


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Imperfect Duty of Business Professionals


• Cultivating your talent is an imperfect duty—professioresponsibility.

• Obtaining skills necessary to accomplish your job.

• Continuing to develop business skills and abilities

throughout your careers.


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Q7: 2025?


• Huge networks of computers to process image data

time. What does that mean for privacy? Where arebusiness opportunities?

• Computers-in-a-product

• Will people still go to work?

• Will people be employees of organizations?• Will classrooms be needed?


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Security Guide: Password Etiquette


• Never write down your password.• Never ask someone for their password.

• Never give your password to someone.

• “do-si-do” move—moving away so another person c

enter password privately—common professional pra

http://www.thefreedictionary.com/do-si-dohttp://www.thefreedictionary.com/do-si-dohttp://www.thefreedictionary.com/do-si-dohttp://www.thefreedictionary.com/do-si-dohttp://www.thefreedictionary.com/do-si-dohttp://www.thefreedictionary.com/do-si-do


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Strong Passwords


• 10+ characters.

• Does not contain your user name, real name, or comname.

• Does not contain a complete dictionary word in any la

• Different from previous passwords used.

• Contains both upper- and lowercase letters, numbersspecial characters (such as ˜ ! @; #

• $ % ^; &; * ( ) _ +; – =; { } | [ ] \ : “ ; ’ ;? , . /)


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Guide: Five-Component Careers



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Active Review


Q1: Why is Introduction to MIS the most important class in the bschool?

Q2: What is MIS?

Q3: How can you use the five-component model?

Q4: Why is the difference between information technology andinformation systems important?

Q5: What is information?Q6: What are necessary data characteristics?

Q7: 2025?


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Case Study 1: zulily


• What is their business model?

– Sells to mothers: primarily children’s clothes and towomen’s clothes, accessories, and décor items.

– Use information technology to provide entertainingshopping experience to mothers, name brand goodunique and difficult-to-find off-brands, at substantia

discounts. – 45% of sales occur over mobile devices.

– Curated sales.


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Case Study 1: zulily (cont'd.)



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How They Do It


• Buyers identify goods to be sold, negotiate with vendor

• Photographs sample items in-house, write ad copy.

• Group items for three-day sales events.

• After event closes, zulily orders items from vendor, recepackages, and ships to customers. (maintains no inven

• Vulnerable to vendors errors and mistakes.


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Use of Technology


• Internet, mobile technology compatibility.

• Developed a proprietary technology platform to haenormous spikes in web processing demand.

• Extensive data collection and analytics capabilities


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Growth-Management Problems


• “To support continued growth, we must effectively integdevelop and motivate a large number of new employeemaintaining our corporate culture. In particular, we intencontinue to make substantial investments to expand oumerchandising and technology personnel.”

• http://www.sec.gov/Archives/edgar/data/1478484/000144530514000741/zu-12292013

L i f lil

http://www.sec.gov/Archives/edgar/data/1478484/000144530514000741/zu-12292013x10k.htmhttp://www.sec.gov/Archives/edgar/data/1478484/000144530514000741/zu-12292013x10k.htmhttp://www.sec.gov/Archives/edgar/data/1478484/000144530514000741/zu-12292013x10k.htmhttp://www.sec.gov/Archives/edgar/data/1478484/000144530514000741/zu-12292013x10k.htmhttp://www.sec.gov/Archives/edgar/data/1478484/000144530514000741/zu-12292013x10k.htm


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Learning from zulily


• Founders developed innovative application ofinformation systems technology.

• Applied it to a business opportunity.

• Managerial skill to develop that idea.


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Ch1 Kroenke Umis8e Inppt01