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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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…

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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