chapter 1 the importance of mis

Dr. Chen, Management Information Systems

Why MIS?

Part 1


“But Today, They’re Not Enough.”

Jennifer lacks skills Falcon Security needs:1. Abstract reasoning skills.2. Systems thinking skills.3. Collaboration skills.4. Experimentation skills.


What Do Employers Want?

• Self starter, don’t wait to be told what to do.

• Team worker • Develops ideas with others.• Ask questions.• Pulls more than their own weight.


Chapter 1The Importance of MIS

Jason C. H. Chen, Ph.D.Professor of MIS

School of Business AdministrationGonzaga UniversitySpokane, WA [email protected]


Study Questions

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

Q2: How will MIS Affect Me?Q3: What is MIS?Q4: How can you use the five-component model? Q5: What is information?Q6: What are necessary data characteristics?Q7: 2026?


Top-Ten Innovation Mistakes a Company Can Make During a Turbulent Economy

• Fire talent.• _______________________ • Reduce risk.• Stop product development.• Allow boards to replace growth-oriented CEOs with cost-

cutting CEOs.• Retreat from globalization.• Allow CEOs to replace innovation as key strategy.• Change performance metrics.• Reinforce hierarchy over collaboration.• Retreat into walled castle.

Cut back on technology

by Philip Kolter and John Caslione (AMACOM 2009)


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

• Technology fundamentally changing business (change the way we are doing the business and many others)

• Information Age• Production, distribution, control of information

primary economic drivers.• Digital Revolution

• From mechanical/analog devices to digital devices.


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

• Technology fundamentally changing business (change the way we are doing the business, entertaining, communicating and shopping etc.)

• Information Age Production, distribution, control of information

primary economic drivers.• Digital Revolution

From mechanical/analog devices to digital devices.


Understanding the Forces Pushing the Evolution of New Digital Devices

• Bell’s Law New class of computers establishes a new

industry each decade.– New platforms, programming environments,

industries, networks, and information systems.• Understand how next digital evolution will

affect businesses.• Given: What an industry does and how does

it will change._________ is a given factor.Change


• Ultimate reason: Moore’s Law• Moore’s Law (1965)

“The number of transistors per square inch on an integrated chip doubles every 18 months.”

Statement commonly misunderstood to be:

Introduction to MIS the Most Important Class in the Business School?

“The speed of a computer doubles every 18 months,” which is incorrect, but captures the sense of principle.


Evolving Capabilities: Computer Price/Performance Ratio Historical Trend

Figure 1-1: Computer Price/Performance Ratio Decreases


Metcalfe’s Law

• Network value equal to square of number of users connected to it. (V=U2)• Google, Amazon, eBay

exist due to large numbers of Internet users.

Will these be the biggest companies in 2026? Or will new ones emerge?

Figure 1-2: Increasing Value of Networks_________ EffectsNetwork


Fundamental Forces Changing Technology

Figure 1-3: Fundamental Forces Changing Technology


This Is the Most Important Class in the School of Business Because You Will Learn:

• How technology fundamentally changes businesses.

• Why executives try to find ways to use new technology to create a sustainable competitive advantage.

• Assess, evaluate, apply emerging information technology to business.

• Help you attain knowledge needed by future business professionals.


Q2: How Will MIS Affect Me?

• Technological change is accelerating.• Bell’s Law

Today’s highly successful business could be bankrupt quickly because technology changed and it didn’t.

Ex: Blockbuster


How Can I Attain Job Security?

• Moore’s Law, Metcalfe’s Law, and Kryder’s Law Driving data processing, storage,

communications costs to essentially _____.• Any routine skill can, and will, be outsourced

to lowest bidder.

zero


__________ ADVANTAGE• Company perspective

– Company provides products/service free

• User/customer’s perspective– Users/customers use products/service

free

FREE


What Is a Marketable Skill?

Figure 1-4: Examples of Critical Skills for Nonroutine Cognition

Learn five components of an IS.


SYSTEM

_______ _________________

FEEDBACK

A system is a group of components that interact to achieve some purpose.

INPUT PROCESS OUTPUT


How Can Intro to MIS Help You Learn Non-Routine Skills?

• Abstract ReasoningAbility to make and

manipulate models.Learn to use and

construct abstract models.– Ch. 1: Five components of

an IS model.– Ch. 5: How to create

data models.– Ch. 10: How to make

process models.


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

• Systems Thinking Ability to model system components, connect

inputs and outputs among components to reflect structure and dynamics.

Ability to discuss, illustrate, critique systems; compare alternative systems; apply different systems to different situations.

Name an example (model)?

I-P-O Model



• Collaboration• People working together to achieve a common

goal, result, or work product. • Ch. 2 discusses collaboration skills and

illustrates several collaboration information systems.

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



• Ability to Experiment• Make reasoned analysis of an opportunity;

developing and evaluating 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".

Use IS/IT to improve efficiency, effectiveness, innovation, and, ultimately organizational ______________.productivity.


Jobs• 69% of college graduates need additional

training or education. • 46% working in jobs not requiring their

degree, underemployed.• Better success for students with courses

related to information systems.• Tradable job

• Job not dependent on particular location, can be offshore outsourced.


What Skills Will Be Marketable During Your Career?

• Only job security is a marketable skill and courage to use it.

• Any routine skill can and will be outsourced to lowest bidder.

• Message: Develop strong non-routine cognitive skills.

“Rapid technological change and increased international competition place the spotlight on the skills and preparation of the workforce, particularly the skills and ability to adapt to changing technology and shifting demand. Shifts in the nature of organizations… favor people with strong nonroutine cognitive skills.”(Lynn A Kaoly and Constantijn W.A. Panis, The 21st Century at Work. RAND Corporation, 2004, p. xiv) “Capacity to Learn”

Message: Develop strong non-routine cognitive skills.


Job Growth By Sector Over the Past Twenty Years

Figure 1-5: Growth of Jobs by Sector from 1989 to 2009


BLS Job Projections

Figure 1-6: Bureau of Labor Statistics Occupational Outlook 2012-2022


Bottom Line of MIS Course

Most important course in business school because:1. Gives background needed to assess, evaluate,

and apply emerging information systems technology to business.

2. Gives marketable skills by helping you learn abstraction, systems thinking, collaboration, and experimentation.

3. Makes you aware of well-paying, high demand MIS-related jobs.

You need the knowledge of this course (BMIS235) to attain that skill.


Q3: What Is MIS?

• Key elements1. Management and use (and align)2. Information systems3. ____________

•Goal of MIS• Managing IS to achieve business strategies• Managing/using IS to create/improve

competitive advantage.

• Management• Information• Systems

Strategies


• Information systems components:

Hardware—desktops, laptops, PDAs Software—operating systems, application programs Data—facts and figures entered into computers Procedures—how the other four components are used People—users, technologists, IS support

What is MIS?

Figure 1-7: Five Components of an Information System

Components ________ to produce __________interact information


Difference Between IT and IS• Information technology (IT)

1. Products2. Methods3. Inventions4. Standards

IT drives development of new IS. IT components = Hardware + Software + Data IS = IT + Procedures + People IS = Hardware + Software + Data + Procedures + People

IT

Procedures

People

IS

IS = IT + ____________ + ___________Management Organization

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


INFORMATION SYSTEMS (MIS/IS)

ORGANIZATIONS TECHNOLOGY

MANAGEMENT

INFORMATION SYSTEMS

TM -32

Which component is mostly important?

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

procedures.• People execute procedures to employ new IT.• Use of a new system requires training, overcoming employees’ resistance,

and managing employees as they use new system.

buy


Development and Use of Information Systems

Management and use to:– Develop, maintain, adapt by:

• Creating an information system that meets your needs, take an active role in system’s development. Why?

• Business professionals using cognitive skills to understand business needs and requirements.– Understand how IT systems are constructed– Consider users’ needs during development (users’

involvement)– Learn how to use information systems– Take into account ancillary IT functions (Security,

Backups, etc.)


Achieving Strategies• Information systems exist to help people

achieve business strategies.• “What is the purpose of our Facebook page?” (not

because every has a Facebook presence!)• “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 offset by the benefits?”– cost/benefit analysis


UYK#1-2 (p.31)

• GROUP DISCUSSION


Next Class – to be• 1. Complete reading the rest of chapter.• 2. Read chapter Case Study 1: zulily (p.33-35)

– Prepare answers for five questions (1-9, 11, 12, 13, 14) listed in the syllabus and turn in a hardcopy using MS/Word next class.

– We will also conduct case discussion.• 3. If you are asked to present your answer for case

study questions but you do not prepare for them, there will be “10” points off every time from your final course grade.


PART II

DATA vs. INFORMATION


Characteristics of the Five Components

Figure 1-7 Characteristics of the Five Components

The Most Important Component – _________• Quality of your thinking• Change the way your brain works• Know how to use information systems• All IS components must work together.

YOU [Video]

Q4: How Can You Use the Five-Component Model?

http://media.pearsoncmg.com/ph/bp/bp_akamai/kroenke/videos.php?title=Chapter%202-%20Most%20Important%20Component-%20YOU&clip=pandc/kroenke/Ch_02_1.flv


Five IS components evaluated based on order of ease of change and amount of organizational disruption.

1. Hardware is simple to order and install.2. Obtaining or developing new programs is more difficult. 3. Creating new databases or changing structure of existing

databases is more difficult. 4. Changing procedures, requiring people to work in new ways, is

even more difficult. 5. Changing personnel responsibilities and reporting relationships

and hiring and terminating employees are both very difficult and very disruptive.

Components Ordered by Difficulty and Disruption

- create competitive advantage as they are more difficult to be replicated/replaced.


Characteristics of the Five Components

• Most Important Component -- ______ !• Your cognitive skills determine quality of

your thinking, ability to conceive information from data.

• You add value to information and information systems.

• Only humans produce information.• All components must work together.

YOU


What is Information ?

DATA

Information is refined data.

INFORMATION

What is 80/20 rule?How to apply it to this scenario?

[INPUT] [PROCESS] [OUTPUT]


What is Information ?

DATA INFORMATION

80% of information/

valuable output

Trivial many (80%)? or

Vital few (20%)?

Other business example?


DATA, INFORMATION , AND KNOWLEDGE


The relationships between data, information, and knowledge.

Data

More human contribution

Greater value

Information

Data endowed with relevance and purpose

Requires unit of analysis

Needs consensus on meaning

Human mediation necessary

Often garbled in transmission

Knowledge

Valuable information from the human mind; includes

reflection, synthesis, context

Hard to transfer

Often tacit

Hard to capture electronically

Hard to structure

Highly personal to the source

Data Information Knowledge

Data

Simple observation of states of the world

Easily captured

Easily structured

Easily transferred

Compact, quantifiable


100 Years ago...

Today...

Industrial Revolution changed the World

• Information Revolution!


Industry Evolution

(mid 1770s)

Steam Engine Rail Road(1829,

change concept of distance)

Information Evolution

(late 1990s)

Computer

Impact on:Economy, Politics,

Social change

Internet(1990,

________ Distance)N

eliminate


Q5: What Is Information?

Definitions vary:1. Knowledge derived from data, where data

are recorded facts or figures.2. Data presented in a meaningful context.3. Processed data, or data processed by

summing, ordering, averaging, grouping, comparing, or other similar operations.

4. A difference that makes a difference.


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 determined by cognitive skills.

• People perceive different information from same data.• You add value by conceiving information from data.• Where is information?

It’s in Your Head• Users really want is

– ____________ Information


Amazon.com Stock Price and Net Income

Figure 1-9: Amazon.com Stock Price and Net Income


________Dimension

______

Dimension

_______

Dimension

Attributes of Information QualityTimelinessCurrencyFrequencyTime Period

ClarityDetailOrderPresentationMedia

AccuracyRelevanceCompletenessConcisenessScopeperformance

Therefore, the objective of MIS is to provide the right information to the right people at the

right time with a right form.

Time

ContentForm


Q6: What Are Necessary Data Characteristics?

• Accurate—correct and complete data, and processed correctly. Accuracy is crucial; managers must be able to rely on results of their information systems.

• Timely—produced in time for its intended use.

• Relevant—both to the context and to the subject.

• Just sufficient—for purpose for which it is generated. Avoid information overload.

• Worth its cost—appropriate relationship between cost of information and its value.

Figure 1-7 Data Characteristics Required for Good Information


Videos

• Information is power - Google Videos (2m 6s)• Information Age-The Future of Technology(6-07)

• Next Class• Create the first Web Page


Copyright © 2017 Pearson Education, Inc.

Q7: 2026?• BYOD common.• Computers-in-a-product• Comprehensive bio-monitoring devices at home,

linked to health care systems.• Widespread use of Google Glass or Microsoft’s

HoloLens.• More people work at home or wherever.• Cost differences between traditional courses and

“course in a box” increases.• Knowledge and use of business information

systems will be more important, not less.


Case Discussion/Presentation


• END of CHAPTER 1

chapter 1 the importance of mis

Documents

information systems

business school

collaboration skills

business force

business managers

experimentation skills

marketable skills

chaotics globalization