IT ESSAY
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Chapter
Business Information Systems in Your Career
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STUDENT LEARNING OBJECTIVES
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
Why are information systems so essential for running and managing a business today?
What exactly is an information system? How does it work? What are its people, organization, and technology components?
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How will a four-step method for business problem solving help you solve information system-related problems?
How will information systems affect business careers, and what information systems skills and knowledge are essential?
STUDENT LEARNING OBJECTIVES
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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VIDEO CASES AND LEARNING TRACKS
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
Learning Tracks
How Much Does IT Matter?
The Changing Business Environment for Information Technology
The Business Information Value Chain
The Mobile Digital Platform
Occupational and Career Outlook for Information Systems Majors 2012-2020
Video Cases
Case 1: UPS Global Operations with the DIAD
Case 2: Google Data Center Efficiency Best Practices
Instructional Video 2: Tour IBM's Raleigh Data Center
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Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
THE SF GIANTS KEEP WINNING WITH INFORMATION TECHNOLOGY
Problem: Improving fan attendance and minimizing lost revenue when season ticket-holders don't attend.
Solutions: Enhance customer satisfaction by offering Wi-Fi access and game-related information services; provide marketplace for ticketholders to resell tickets; enable dynamic pricing to sell more tickets
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Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
THE SF GIANTS KEEP WINNING WITH INFORMATION TECHNOLOGY
San Francisco Giants/AT&T Stadium uses Fieldf/x to improve team decision-making, Qcue to provide dynamic ticket pricing, and wireless technology to provide services for fans.
Demonstrates IT's role in increasing value and revenue in any business.
Illustrates the potential for technology to improve customer experience.
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Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
THE SF GIANTS KEEP WINNING WITH INFORMATION TECHNOLOGY
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In 2015, more than 118 million businesses had dot-com addresses registered.
150 million people read news online; 180 million use a social networking site.
Internet advertising continues to grow at around 15 percent per year.
New laws require businesses to store more data for longer periods.
Changes in business result in changes in jobs and careers.
How Information Systems Are Transforming Business
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
Why are information systems so essential for running and managing a business today?
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Why are information systems so essential for running and managing a business today?
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
What's New in MIS?
New technologies
Cloud computing /
software as a service (SaaS)
Big Data
Mobile digital platform
Management
Managers use social networks, collaboration.
Business intelligence applications accelerate
Virtual meetings proliferate.
Organizations
Social business
Telework gains momentum
Co-creation of value, collaboration across firms
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Globalization Challenges and Opportunities:
A Flattened World
Internet and global communications have greatly reduced economic and cultural advantages of developed countries.
Drastic reduction of costs of operating and transacting on global scale
Competition for jobs, markets, resources, ideas
Dependence on imports and exports
Requires new understandings of skills, markets, opportunities
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
Why are information systems so essential for running and managing a business today?
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Businesses invest in IT to achieve six important business objectives.
Operational excellence
New products, services, and business models
Customer and supplier intimacy
Improved decision making
Competitive advantage
Survival
Business Drivers of Information Systems
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
Why are information systems so essential for running and managing a business today?
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Operational Excellence:
Improved efficiency results in higher profits.
Information systems and technologies help improve efficiency and productivity.
Example: Walmart
Power of combining information systems and best business practices to achieve operational efficiency—and over $473 billion in sales in 2014
Most efficient retail store in world as result of digital links between suppliers and stores
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
Why are information systems so essential for running and managing a business today?
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Information systems and technologies enable firms to create new products, services, and business models.
Business model: how a company produces, delivers, and sells its products and services
Example: Apple
Transformed old model of music distribution with iTunes
Constant innovations—iPod, iPhone, iPad, etc.
New Products, Services, and Business Models:
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
Why are information systems so essential for running and managing a business today?
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Customers who are served well become repeat customers who purchase more.
Mandarin Oriental hotel
Uses IT to foster an intimate relationship with its customers, keeping track of preferences, and so on
Close relationships with suppliers result in lower costs.
JCPenney
IT to enhance relationship with supplier in Hong Kong
Customer and Supplier Intimacy:
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
Why are information systems so essential for running and managing a business today?
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If managers rely on inaccurate forecasts,
best guesses, and luck,
they will misallocate employees,
services, and inventory.
Real-time data
improves ability of managers to make decisions.
Verizon: Web-based digital dashboard to update managers with real-time data on customer complaints, network performance, and line outages
Improved Decision Making:
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
Why are information systems so essential for running and managing a business today?
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Often results from achieving previous business objectives
Advantages over competitors:
Charging less for superior products, better performance, and better response to suppliers and customers
Examples: Apple, Walmart, UPS are industry leaders because they know how to use information systems for this purpose
Competitive Advantage:
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
Why are information systems so essential for running and managing a business today?
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Businesses may need to invest in information systems out of necessity; simply the cost of doing business.
Keeping up with competitors
Citibank's introduction of ATMs
Federal and state regulations and reporting requirements
Toxic Substances Control Act and the Sarbanes-Oxley Act
Survival:
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
Why are information systems so essential for running and managing a business today?
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Information technology: the hardware and software a business uses to achieve objectives.
Information system: interrelated components that manage information to:
Support decision making and control.
Help with analysis, visualization, and product creation.
Data: streams of raw facts.
Information: data shaped into meaningful, useful form.
What Is an Information System?
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
What Exactly Is An Information System?
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What Exactly Is An Information System?
Data and Information
Figure 1.1
Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory.
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
Data and Information
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What Exactly Is An Information System?
Activities in an information system that produce information:
Input
Processing
Output
Feedback
Sharp distinction between computer or computer program versus information system
What Is an Information System?
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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What Exactly Is An Information System?
Functions of an Information System
Figure 1.2
An information system contains information about an organization and its surrounding environment. Three basic activities—input, processing, and output—produce the information organizations need. Feedback is output returned to appropriate people or activities in the organization to evaluate and refine the input. Environmental actors, such as customers, suppliers, competitors, stockholders, and regulatory agencies, interact with the organization and its information systems.
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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What Exactly Is An Information System?
Information systems literacy
Includes behavioral and technical approach
Computer literacy
Focuses mostly on knowledge of IT
Management information systems (MIS)
Focuses on broader information systems literacy
Issues surrounding development, use, impact of information systems used by managers and employees
The Role of People and Organizations
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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What Exactly Is An Information System?
Information Systems Are More than Computers
Figure 1.3
Using information systems effectively requires an understanding of the organization, people, and information technology shaping the systems. An information system provides a solution to important business problems or challenges facing the firm.
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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What Exactly Is An Information System?
Organizations
Coordinate work through structured hierarchy and business processes.
Business processes: related tasks and behaviors for accomplishing work
Examples: fulfilling an order, hiring an employee
May be informal or include formal rules
Culture embedded in information systems
Example: UPS's concern with placing service to customer first
Dimensions of Information Systems
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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What Exactly Is An Information System?
People
Information systems require skilled people to build, maintain, and use them.
Employee attitudes affect ability to use systems productively.
Role of managers
Perceive business challenges.
Set organizational strategy.
Allocate human and financial resources.
Creative work: new products, services.
Dimensions of Information Systems
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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What Exactly Is An Information System?
Technology
IT Infrastructure: Foundation or platform that information systems built on
Computer hardware
Computer software
Data management technology
Networking and telecommunications technology
Internet and Web, extranets, intranets
Voice, video communications
Dimensions of Information Systems
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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ASSIGNMENT COMING UP
The next slide has a discussion board assignment.
You have been assigned to a group discussion board.
You will want to participate there with your discussion by answering the case questions.
Review the following videos prior to answering the case questions
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ASSIGNMENT VIDEOS
https://www.youtube.com/watch?v=sK195ohi_fU
https://www.youtube.com/watch?v=xXuuEkP-sAE
https://www.youtube.com/watch?v=voOK-1DLr00
https://www.youtube.com/watch?v=UeDGB2iEJc8
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DISCUSSION ASSIGNMENT- Interactive session: People
The Mobile Pocket Office
Read the Interactive Session and then discuss the following questions on Canvas in your assigned discussion group:
What kinds of applications are described here? What business functions do they support? How do they improve operational efficiency and decision making?
Identify the problems that businesses in this case study solved by using mobile digital devices.
What kinds of businesses are most likely to benefit from equipping their employees with mobile digital devices such as iPhones and iPads?
One company deploying iPhones has said, “The iPhone is not a game changer, it's an industry changer. It changes the way that you can interact with your customers” and “with your suppliers.” Discuss the implications of this statement.
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
Why are information systems so essential for running and managing a business today?
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Solving Information System-Related Problems
Few business problems are simple or straightforward.
Most business problems involve a number of major factors that can fall into three main categories:
Organization
Technology
People
The Problem-Solving Approach
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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Solving Information System-Related Problems
Problem solving: four-step process
Problem identification
Solution design
Choice
Implementation
A Model of the Problem-Solving Process
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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Solving Information System-Related Problems
Problem identification includes:
Agreement that problem exists
Definition of problem
Causes of problem
What can be done given resources of firm
A Model of the Problem-Solving Process
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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Solving Information System-Related Problems
Typical organizational problems
Outdated business processes
Unsupportive culture and attitudes
Political in-fighting
Turbulent business environment, change
Complexity of task
Inadequate resources
A Model of the Problem-Solving Process
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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Solving Information System-Related Problems
Typical technology problems
Insufficient or aging hardware
Outdated software
Inadequate database capacity
Insufficient telecommunications capacity
Incompatibility of old systems with new technology
Rapid technological change
A Model of the Problem-Solving Process
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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Solving Information System-Related Problems
Typical people problems
Lack of employee training
Difficulties of evaluating performance
Legal and regulatory compliance
Work environment, ergonomics
Poor or indecisive management
Lack of employee support and participation
A Model of the Problem-Solving Process
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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Solving Information System-Related Problems
Solution design
Often many possible solutions
Consider as many as possible to understand range of solutions
Solution Evaluation and Choice: Factors include
Cost
Feasibility given resources and skills
Length of time needed to implement solution
A Model of the Problem-Solving Process
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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Solving Information System-Related Problems
Implementation
Building or purchasing solution
Testing solution, employee training
Change management
Measurement of outcomes
Feedback, evaluation of solution
Problem solving is a continuous process, not a single event
Sometimes chosen solution doesn't work or needs adjustment
A Model of the Problem-Solving Process
Essentials of Management Information Systems
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Problem Solving Is a Continuous Four-Step Process
Figure 1.4
During implementation and thereafter, the outcome must be continually measured and the information about how well the solution is working is fed back to the problem solvers. In this way, the identification of the problem can change over time, solutions can be changed, and new choices made, all based on experience.
Solving Information System-Related Problems
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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Solving Information System-Related Problems
Without critical thinking, easy to jump to conclusions, misjudge a problem, and waste resources
Critical thinking:
Sustained suspension of judgment with an awareness of multiple perspectives and alternatives
The Role of Critical Thinking in Problem Solving
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Solving Information System-Related Problems
Four elements of critical thinking:
Maintaining doubt and suspending judgment
Being aware of different perspectives
Including technology, organization, and people perspectives
Testing alternatives and letting experience guide
Being aware of organizational and personal limitations
The Role of Critical Thinking in Problem Solving
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Solving Information System-Related Problems
When firms cannot achieve business objectives these objectives become challenges.
Information systems often present solutions, partially or fully, to these challenges.
The Connection Between Business Objectives, Problems, and Solutions
Essentials of Management Information Systems
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Success in today's job market requires a broad set of skills.
Job candidates must have problem-solving skills as well as technical skills so that they can complete specific tasks.
The service sector will account for 95 percent of the new jobs that are created or open up by 2022
How Will Information Systems Affect Business Careers?
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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Review the following descriptions for how information systems can be used in different career fields.
Prepare an answer on how information systems (IS) can be used in your career in the future
You will be able to provide this answer on the final exam.
How Will Information Systems Affect Business Careers?
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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Accounting:
Accountants increasingly rely on information systems to summarize transactions, create financial records, organize data, and perform financial analysis.
Skills:
Knowledge of databases and networks
Online financial transactions and reporting systems
How systems are used to achieve accounting functions
How Information Systems Will Affect Business Careers
How Will Information Systems Affect Business Careers?
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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Finance:
Relationship between information systems and financial management and services is so strong that many advise finance majors to co-major in information systems.
Skills:
Use systems for financial reporting, direct investment activities, implement cash management strategies
Plan, organize, implement information systems strategies for the firm
How Information Systems Will Affect Business Careers
How Will Information Systems Affect Business Careers?
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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Marketing:
No field has undergone more technology-driven change in the past five years than marketing and advertising.
Skills:
Work with databases for tracking and reporting on customer behavior, product performance, customer feedback, product development
Enterprise systems for product management, sales force management, customer relationship management
How Information Systems Will Affect Business Careers
How Will Information Systems Affect Business Careers?
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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Operations management in services and manufacturing:
Production managers, administrative service managers, and operations analysts
Skills:
Hardware and software platforms for operations management
Use database and analytical software for coordinating and optimizing resources required for producing goods and services
How Information Systems Will Affect Business Careers
How Will Information Systems Affect Business Careers?
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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Management:
The job of management has been transformed by information systems.
Impossible to manage business today without information systems.
Skills:
Use of information systems for each function of job, from desktop productivity tools to applications coordinating the entire enterprise
How Information Systems Will Affect Business Careers
How Will Information Systems Affect Business Careers?
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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Information systems:
Fast changing and dynamic profession because information technologies are among most important tools for achieving business firms' key objectives
Domestic and offshore outsourcing
Skills:
Uses of new and emerging hardware and software to achieve six business objectives
An ability to take a leadership role in the design and implementation of new information systems
How Information Systems Will Affect Business Careers
How Will Information Systems Affect Business Careers?
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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Outsourcing and offshoring:
Two types: outsourcing to domestic U.S. firms and outsourcing to low-wage countries such as India, China
Production programming, system maintenance, call centers
Benefits:
Lower cost of building and maintaining systems within U.S.
Increased need for managerial positions
How Information Systems Will Affect Business Careers
How Will Information Systems Affect Business Careers?
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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Common requirements for all majors
How IT helps achieve six business objectives
Central role of databases
Business analytics and intelligence systems
Working with specialists and systems designers
Ethical, social, legal environment and issues
Use of IT to meet legal requirements
How Information Systems Will Affect Business Careers
How Will Information Systems Affect Business Careers?
Essentials of Management Information Systems
Chapter 1 Business Information Systems in Your Career
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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
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