MIS, book name : Valacich, Joe and Christoph Schneider. Information Systems Today: Managing in the Digital World, Seventh edition, Prentice Hall, 2015.
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MIS395Chapter1.pptxChapter 1
We start with the rise of the information age, how it builds on the prior ages, and current information age trends of significance.
Our learning objective for this section is for you to be able to describe, in your own words, the characteristics of the information age we live in.
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Information Systems Today
Learning Objective: Describe the characteristics of the digital world and the advent of the Information Age.
Evolution of Globalization
Define globalization, describe how it evolved over time, and describe the key drivers of globalization.
Information Systems Defined
Explain what an information system is, contrasting its data, technology, people, and organizational components.
IS Ethics
Describe how computer ethics impact the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property.
The Dual Nature of Information Systems
Describe the dual nature of information systems in the success and failure of modern organizations.
Introduction
In this chapter, we examine information systems, and the role of information systems as we moved into and progress through the digital age. Special attention is given to globalization and ethics.
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Table of Contents
Early Computer Information Technology
Introduction
The Three Waves of Change
Knowledge Worker and Knowledge Society
Early Computer Information Technology
Five IT Megatrends in the Information Age
Mobile Computing
Social Media
The Internet of Things (IoT)
Cloud Computing
Big Data
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Early Information Technology Introduction
The following slides provide a brief and selective overview of early computer information technology and how it was used. This can help one to learn about:
The rapidity at which technologies evolve or are replaced
The manner in which information technology has evolved
The manner in which companies have used computers
These three issues provide background and context for some of the issues in this class.
They also show that the transition between Toffler’s 2nd and 3rd waves took time, and occurred at different rates for differing groups.
We start with relevant definitions and then proceed to early computer information technology
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The Three Waves of Change
The Third Wave by Alvin Toffler describes three phases or “waves of changes”.
First wave
A civilization based on agriculture and handwork
Relatively primitive stage
Lasted thousands of years
Luddites opposed technology.
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Each age has enabled the age that followed.
The Agricultural age provided the time and resources necessary for people to stay in one location and invent machines.
The Three Waves of Change (cont’d)
Second wave
The Industrial Revolution
Began at the end of the 18th century and lasted about 150 years
Third wave
The Information Age
Information becomes the currency
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The printing press gave birth to the information age.
Since the late 1950s, most countries have been transitioning to into the third wave
The Industrial Revolution provided the tools, such as the printing press, necessary to replicate information and widely disseminate it in a low cost manner.
Information Systems Today
The Knowledge Worker
Term coined by Peter Drucker in 1959
An individual who is relatively well educated and who creates, modifies, and/or synthesizes knowledge as a fundamental part of a job
Knowledge Society
New Economy/Digital World
Digital Divide—those with access to information technology have great advantages over those without access.
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Five IT Megatrends in the Information Age
The current confluence of emerging technologies and social events has created five significant trends that business managers need to manage and understand if they don’t want to be left behind:
Mobile computing
Social media
The Internet of Things
Cloud computing
Big Data
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Mobile Computing
Many believe that we’re living in a post-PC era.
In the developing world mobile devices often leapfrog traditional PCs.
Implications:
Increased collaboration
The ability to manage business in real time
New ways to reach customers
Mobile Computing is becoming pervasive, and many people are constantly connected to the digital world.
In developing nations, there is often a jump directly to mobile technologies, which avoids the high-cost infrastructure of traditional land based phone systems.
This can lead to both opportunities and challenges both for managers and for marketers.
Employees can conduct business almost anytime, anywhere.
Customers have their phones with them 24/7, allowing them to be reached throughout the day, wherever they may be.
This trend facilitates the increasing “consumerization of IT.”
It also leads to security issues, as managers need to deal with employers’ preference of “bring your own device” (BYOD).
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Social Media
Over 1.28 billion (and growing) Facebook users share status updates or pictures with friends and family
Organizations use social media to encourage employee collaboration or to connect with their customers
Social media has emerged as a dominant force in online socialization.
Examples: Facebook for friends and families, Google+ for “social circles.”
Businesses can leverage social media to communicate with customers
Business intelligence can be conducted, mining social media sites for good and bad sentiment toward a business and the factors driving it.
Chapter 5 focuses on social media.
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The Internet of Things
Devices have embedded computers and sensors, enabling connectivity over the Internet
By 2008, more devices were connected to the Internet than people living on earth
The Internet of everything?
Lots of physical objects (such as computer, sensors, or motors) are interconnected and automatically share data over the Internet.
Examples include:
Monitoring home temperatures while on vacation
Alerting drivers of parking spaces and traffic volumes
Cardiac monitors alerting physicians of potential health risks
Smart cities, smart homes, and e-health
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Cloud Computing
Web technologies enable using the Internet as the platform for applications and data
Many regard cloud computing as the beginning of the “fourth wave”
Applications that used to be installed on individual computers are increasingly kept in the cloud
e.g., Gmail, Google Docs, Google Calendar
Cloud computing is really about sharing technology resources and taking the pain out of using and sharing data and applications.
A major advantage is backup and reliability. If your computer breaks, you haven’t lost your data.
Also, you can access your files from any computer. For example, have you ever used Dropbox?
It requires connectivity to function, so the constant connectivity we see at work and play is a key enabler.
Mobile computing has further added to the value of the cloud metaphor.
It is discussed in greater depth in Chapter 3.
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Big Data
IDC estimated that in 2011, 1.8 zettabytes of data were generated and consumed
How much is 1.8 zettabytes? It is 1.8 trillion gigabytes, or the equivalent of 57 billion 32GB iPads (IDC, 2011)
This number is forecast to grow by 50 times by 2020
Companies in the Information Age economy are creating value not from people, but from data.
On an average day, people create 25 million trillion bytes of data
Businesses continue to gather ever larger quantities of data as they seek to have the proper data to manage their business effectively and efficiently.
This presents new opportunities if it can be properly analyzed and mined for information.
This data is often unstructured, such as natural language postings about a business.
The resources required to mine Big Data pose tremendous challenges for business.
Big Data is a key part of “business intelligence,” discussed in more detail in Chapter 6.
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Chapter 1
Globalization is next. We will look at the key factors enabling globalization and at outsourcing. Our learning objective for this section is for you to be able to describe globalization, key enablers, outsourcing, and information systems outsourcing.
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The Rise of the Information Age
Describe the characteristics of the digital world and the advent of the Information Age.
Evolution of Globalization
Learning Objective: Be able to define globalization, describe how it evolved over time, and describe key globalization drivers.
Information Systems Defined
Explain what an information system is, contrasting its data, technology, people, and organizational components.
IS Ethics
Describe how computer ethics impact the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property.
The Dual Nature of Information Systems
Describe the dual nature of information systems in the success and failure of modern organizations.
Table of Contents
Key Driving Impacts of Globalization
Outsourcing
Opportunities of Operating in the Digital World
Challenges of Operating in the Digital World
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Key Driving Impacts of Globalization
Economic change
International trade, global finance, labor outsourcing
Cultural change
Multiculturalism from media, international travel, ethnic foods
Technological change
Computing and communication platforms, global patent and copyright laws
The following slides focus upon the issues of:
Outsourcing
Globalization Opportunities
Globalization Challenges
With the opening up of China, markets have opened up for businesses.
Evolution of technology has had a tremendous impact on global opportunities.
The Internet and the invention of the Web browser created a new standard for sharing information over a network in a simple fashion everyday people could readily grasp.
Falling telecommunication costs have enabled new types of communication and collaboration at very low cost.
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Outsourcing
Outsourcing: moving of business processes or tasks to another company
Outsourcing is when you take business process currently being performed internally by your company and have another company do them instead.
Outsourcing is typically driven by cost reduction, and is undertaken when another company can perform a process at a lower cost than yours.
Outsourcing doesn’t automatically imply moving work overseas.
The decline in telecommunication costs has significantly reduced the expenses in moving processes to businesses that are overseas.
Overseas companies may enjoy multiple competitive advantages, including lower labor costs.
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Key Reasons for Outsourcing
To reduce or control costs
To free up internal resources
To gain access to world-class capabilities
To increase the revenue potential of the organization
To reduce time to market
To increase process efficiencies
To be able to focus on core activities
To source specific capabilities or skills
In addition to the help information systems give to outsourcing other business processes, information system processes are also subject to outsourcing.
Information systems outsourcing is done for the same reasons for as other business processes.
The prime driver for information systems outsourcing is also cost reduction, just like for other types of outsourcing.
Other drivers include outsourcing to more effective companies and allowing a business to focus on its core business activities.
Outsourcing will be explored in more detail in Chapter 9
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Opportunities of Operating in the Digital World
Falling Transportation Costs
Shipping a bottle of wine from Australia to Europe costs only a few cents
Falling Telecommunication Costs
These have helped create shared perspectives of behavior, desirable goods, and even forms of government
Reaching Global Markets
Accessing a Global Labor Pool
Highly skilled or low-cost labor pools exist in many countries that are now economically accessible
The emerging digital world creates many opportunities for companies to reduce costs through information-system-driven efficiencies and access to lower-cost labor. At the same time, companies can reach broader markets and sell products around the world, driven in part by falling transportation costs, which are also being driven down through information systems technology.
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Challenges of Operating in the Digital World
Government
Political instability
Regulatory: taxes/tariffs, import/export restrictions
Geo-economic
Time zones, infrastructure
Workforce: welfare, demographics, expertise
Cultural
Working with, providing services to
There are new challenges to operating in the digital world as well as new opportunities. In addition to the expected challenges of culture, varying worker demographics, and political instability, there are additional challenges as different countries pass varying information system regulatory controls affecting privacy, standards, information ownership, and information censorship.
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Chapter 1
As we discuss information systems its important to know what they are, and what they aren’t. The learning objective for this section is for you to be able to explain what an information system is, including the components. A key part of this is the element of data, and the difference between data, information, and knowledge.
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The Rise of the Information Age
Describe the characteristics of the digital world and the advent of the Information Age.
Evolution of Globalization
Define globalization, describe how it evolved over time, and describe the key drivers of globalization.
Information Systems Defined
Learning Objective: Explain what an information system is, contrasting its data, technology, people, and organizational components.
IS Ethics
Describe how computer ethics impact the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property.
The Dual Nature of Information Systems
Describe the dual nature of information systems in the success and failure of modern organizations.
Information Systems
Information systems use information technology to collect, create, and distribute useful data
Information technology:
Hardware, software, telecommunications
The terms information systems and information technology are often used interchangeably.
Information systems are used for many business purposes: sales, marketing, production, financial analysis, human resources, etc.
The term IS also refers to a career field that involves applying information technology to solving organizational problems.
Information technology is discussed in more detail in Chapter 3.
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Table of Contents
Important Definitions: IS and IT
Data
IS Professional Core Competencies
Organizations: The Context of Information Systems
Data is the focus of this section. Other topics are touched on lightly as some of them are covered more extensively later on.
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Data: The Root and Purpose of Information Systems
Alone, raw data are not very useful
When processed into information, data become useful
When information is understood and used for decisions, it becomes knowledge
Data are the raw feedstock of information systems. Data are the raw information that we capture every day.
Once data are processed and analyzed, the data become information. Even this isn’t enough to make decisions with.
To make decisions, we need to understand the context of the information and the environment in which we want to use it.
Knowledge is the ability to understand information, form opinions, and make decisions or predictions based on the information.
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IS Professional Core Competencies
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Technical competency
Hardware, software, networking
Business competency
Business integration, managing people and projects, social skills, verbal and written communication
Systems competency
Systems integration, development methodologies, critical thinking, problem solving
Technical competency involves an understanding of the “nuts and bolts.” IS professionals are not necessarily experts in the nuts and bolts, but know enough to be able to apply them to practical problem solving. Business competency is what separates IS professionals from mere techies. Although technical positions are often outsourced, it is much harder to outsource business savvy. Systems competency also separates good IS professionals from technicians, as it involves an understanding of how technology integrates with organizations, people, and society.
Organizations: The Context of Information Systems
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Organizations use information systems to:
be more productive and profitable
gain competitive advantage
reach more customers
improve service to their customers
Information systems don’t exist in a vacuum, they exist in the context of varying types of organizations. Information systems play multiple roles in organizations, ranging from automating business processes and driving down costs to reaching new customers and better servicing existing ones.
Types of Information Systems
Transaction processing system (TPS)
Management information system (MIS)
Decision support system (DSS)
Intelligent system
Business intelligence system
Office automation system
Collaboration system
Knowledge management system
Social software
Geographic information system (GIS)
Functional area information system
Customer relation management (CRM) system
Enterprise resource planning system (ERP)
Supply chain management system
Electronic commerce system
Table 1.7 gives a breakdown of these different categories of information systems.
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Chapter 1
Information systems hold great promise for organizations, but also pose significant risks. The learning objective for this section is for you to be able to describe the dual nature of information systems, how they may help and how they may harm.
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The Rise of the Information Age
Describe the characteristics of the digital world and the advent of the Information Age.
Evolution of Globalization
Define globalization, describe how it evolved over time, and describe the key drivers of globalization.
Information Systems Defined
Explain what an information system is, contrasting its data, technology, people, and organizational components.
IS Ethics
Describe how computer ethics impact the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property.
The Dual Nature of Information Systems
Learning Objective: by able to describe the dual nature of information systems in the success and failure of modern organizations.
Information Systems for Competitive Advantage –But with a Risk
IS gone awry–American Airlines computer glitch
Caused 700 delayed flights, 125K affected passengers, FAA flight halt, public apology from CEO
IS done right–FedEx tracking system
Continuous update and fine-tuning provides high-quality package tracking and enables FedEx to become a global leader in express transportation, handling 25% of all package deliveries
Firms of all types and sizes can use information systems to gain or sustain a competitive advantage over their rivals
Whether it is a small mom-and-pop boutique or a large government agency, every organization can find a way to use information technology to beat its rivals
Like FedEx, many organizations are leveraging information systems to do business more effectively and efficiently. This may simply improve the bottom line, or may give a significant business advantage to organizations and allow them to have an edge over their competitors. This type of leverage can be applied by organizations of all sizes and industries.
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IS Ethics
IS Ethics are a critical part of managing information systems. The learning objective for this section is for you to be able to discuss the ethical concerns of information systems in general and particularly with respect to privacy and intellectual property.
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The Rise of the Information Age
Describe the characteristics of the digital world and the advent of the Information Age.
Evolution of Globalization
Define globalization, describe how it evolved over time, and describe the key drivers of globalization.
Information Systems Defined
Explain what an information system is, contrasting its data, technology, people, and organizational components.
IS Ethics
Learning Objective: Describe how computer ethics impact the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property.
The Dual Nature of Information Systems
Describe the dual nature of information systems in the success and failure of modern organizations.
Table of Contents
IS Ethics Introduction
Privacy
Accuracy
Property
Accessibility
The Digital Divide
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IS Ethics Introduction
Computer ethics describes the “moral issues and standards of conduct as they pertain to the use of information systems”
Collecting and analyzing user data may have negative impacts
Social decay
Increased consumerism
Loss of privacy
The definition of computer ethics is “moral issues and standards of conduct as they pertain to the use of information systems”.
There is a growing concern in society about computer ethics which is driven in part by growing concerns regarding individual privacy and how organizations will use the information they have lacking any code of conduct or effective regulation.
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Privacy, Accuracy, Property, and Accessibility Introduced
Privacy: What information should you have to reveal online or in the workplace?
Accuracy: Are the data regarding individuals accurate? Can individuals access their data and verify the accuracy thereof? What are the impacts of inaccuracies?
Property: Company owns the data/databases kept on individuals, and can sell the information as long as it doesn’t violate stated privacy policies when gathering the data
Accessibility: This circles back to the digital divide—who has access to information, and the skills to leverage it?
Richard Mason wrote a classic article in 1986 describing emerging concerns in four key areas, which goes by the acronym PAPA.
Privacy
Accuracy
Property
Accessibility
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Privacy
Privacy on the Web
Who owns the computerized information about people? Answer: the company that maintains the database of customers is free to sell it…within limits
E-mail Privacy
Legally, there is no right to e-mail privacy
Electronic Communications Privacy Act (ECPA), passed in 1986, protects phone conversations, but not e-mail
Protecting your privacy
U.S FTC Fair Information Practice Principles: notice/awareness, choice/consent, access/participation, integrity/security, enforcement/redress
Companies operating in the online world are not required by law to respect your privacy. In other words, a vendor can track what pages you look at, what products you examine in detail, which products you choose to buy, what method of payment you choose to use, and where you have the product delivered. After collecting all that information, unscrupulous vendors can sell it to others, resulting in more direct-mail advertising, electronic spam in your e-mail inbox, or calls from telemarketers.
Is this ethical? Do we have any real privacy rights?
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Information Privacy
What information should you have to reveal?
Information you might want to keep private:
Social security number
Medical history
Family history
Identity theft
Fastest growing “information” crime
Biometrics for better protection
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Information Accuracy
Ensuring of the authenticity and fidelity of information
High costs of incorrect information
Banks
Hospitals
Example: a software error in a radiation therapy device caused massive overexposure, causing multiple deaths and injuries
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Intellectual Property
Copying digital music is almost effortless
In many non-Western societies, using someone else’s work is considered praise for the creator
Using another’s work without purchase or attribution has significant legal and ethical ramifications
Intellectual Property is creating new ethical challenges as digital media can be copied endlessly with no loss of quality. However, many of the individuals who create intellectual property have a legal right to be the sole source for sales and are compensated for their creative work by receiving payment for each copy sold. This creates an ethical dilemma for individuals who own copies of the work and feel they should be able to use it as they see fit, including the duplication of it for a friend.
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Information Accessibility
Who has the right to monitor the information?
Electronic Communications Privacy Act (ECPA) offers far stronger support for voice mail than for e-mail communications.
The need for a code of ethical conduct
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The Digital Divide
Many people are being left behind in the information age
Strong linkage between computer literacy and a person’s ability to compete in the information age
People in rural communities, the elderly, people with disabilities, and minorities lag behind national averages for Internet access and computer literacy
The challenges in overcoming the digital divide are even greater in developing countries
As information technology becomes more pervasive, the fundamental skills necessary to access and use it are becoming essential to success in business. When some people are left behind, either by choice or through lack of opportunity, it makes it difficult for them to achieve economic success.
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