Because learning changes everything. ® CHAPTER ONE Business Driven Technology Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. CHAPTER ONE: OVERVIEW Competing in the Information Age. The Challenge of Departmental Companies. Systems Thinking. © McGraw Hill 2 LEARNING OUTCOMES 1. Describe the information age and the differences between data, information, business intelligence, and knowledge. 2. Explain systems thinking and how management information systems enable business communications. © McGraw Hill 3 COMPETING IN THE INFORMATION AGE 1 Did you know . . . • Avatar, the movie, took over 4 yrs to make and cost $450 million. • Lady Gaga’s real name is Joanne Angelina Germanotta. • It costs millions for a 30second advertising time slot during the Super Bowl. © McGraw Hill 4 COMPETING IN THE INFORMATION AGE 2 • Fact - The confirmation or validation of an event or object. • Information age - The present time, during which infinite quantities of facts are widely available to anyone who can use a computer. © McGraw Hill 5 COMPETING IN THE INFORMATION AGE 3 Examples of the power of business and technology: • Amazon – Not a technology company; primary business focus was selling books. • Netflix – Not a technology company; primary business focus is streaming content. • Zappos – Not a technology company; primary business focus is selling shoes. © McGraw Hill 6 COMPETING IN THE INFORMATION AGE 4 • Internet of Things (IoT) - A world where interconnected Internet-enabled devices or “things” have the ability to collect and share data without human intervention. • Machine-to-Machine (M2M) - Refers to devices that connect directly to other devices. © McGraw Hill 7 COMPETING IN THE INFORMATION AGE 5 The core drivers of the information age: • Data. • Information. • Business intelligence. • Knowledge. © McGraw Hill 8 DATA 1 Data - Raw facts that describe the characteristics of an event or object. Structured data – Stored in a traditional system such as a relational database or spreadsheet. Unstructured data – Not defined and does not follow a specified format. • Machine-generated data – Created by a machine without human intervention. • Human-generated data – Data that humans, in interaction with computers, generate. © McGraw Hill 9 DATA 2 • A fundamental role of all business managers is to be able to take the data and analyze it to find information to make great business decisions. © McGraw Hill 10 DATA 3 Big data – A collection of large, complex data sets, including structured and unstructured data, which cannot be analyzed using traditional database methods and tools. • Snapshot – A view of data at a particular point in time. © McGraw Hill 11 THE POWER OF BIG DATA ANALYTICS 1 Four Characteristics of Big Data: • Variety - Different forms of structured and unstructured data. • Veracity - The uncertainty of data, including biases, noise, and abnormalities. • Volume - The scale of data. • Velocity - The analysis of streaming data as it travels around the Internet. © McGraw Hill 12 THE POWER OF BIG DATA ANALYTICS 2 • Big data will create 4.4 million global MIS jobs. Access the text alternative for slide images. © McGraw Hill 13 THE POWER OF BIG DATA ANALYTICS 3 STRUCTURED DATA UNSTRUCTURED DATA Sensor data Satellite images Weblog data Photographic data Financial data Video data Click-stream data Social media data Point of sale data Text message Accounting data Voice mail data © McGraw Hill 14 INFORMATION 1 • Information - Data converted into a meaningful and useful context. Tony’s Business Information Name Who is Tony’s best customer by total sales? Walmart Who is Tony’s least-valuable customer by total sales? Walgreens Who is Tony’s best customer by profit? 7-Eleven Who is Tony’s least-valuable customer by profit? King Soopers What is Tony’s best-selling product by total sales? Ruffles Total Profit $560,789 $45,673 $324,550 $23,908 $232,500 What is Tony’s weakest-selling product by total sales? Pringles $54,890 What is Tony’s best-selling product by profit? Tostitos $13,050 What is Tony’s weakest-selling product by profit? Pringles $23,000 Who is Tony’s best sales representative by profit? R. Cross $1,230,980 © McGraw Hill 15 INFORMATION 2 Report - A document containing data organized in a table, matrix, or graphical format allowing users to easily comprehend and understand information. • Static report - Created once based on data that does not change. • Dynamic report - Changes automatically during creation. © McGraw Hill 16 BUSINESS INTELLIGENCE 1 • Business intelligence - Information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyzes patterns, trends, and relationships for strategic decision making. © McGraw Hill 17 BUSINESS INTELLIGENCE 2 • Analytics – The science of fact-based decision making. • Business Analytics – The scientific process of transforming data into insight for making better decisions. © McGraw Hill 18 BUSINESS INTELLIGENCE 3 • Descriptive analytics – Techniques that describes part performance and history. • Predictive analytics – Techniques that extract information from data and uses it to predict future trends and identify behavioral patterns. • Prescriptive analytics – Techniques that create models including the best decision to make or course of action to take. © McGraw Hill 19 BUSINESS INTELLIGENCE 4 • Behavioral analysis. • Correlation analysis. • Exploratory data analysis. • Pattern recognition analysis. • Social media analysis. • Speech analysis. • Text analysis. • Web analysis. © McGraw Hill 20 KNOWLEDGE • Knowledge - Skills, experience, and expertise coupled with information and intelligence that creates a person’s intellectual resources. • Knowledge worker – Individual valued for their ability to interpret and analyze information. © McGraw Hill 21 THE CHALLENGE: DEPARTMENTAL COMPANIES • Common departments working independently. Access the text alternative for slide images. © McGraw Hill 22 THE MIS SOLUTION 1 • Common departments working interdependently. Access the text alternative for slide images. © McGraw Hill 23 THE MIS SOLUTION 2 Goods - Material items or products that customers will buy to satisfy a want or need. Clothing, groceries, cell phones, and cars are all examples of goods that people buy to fulfill their needs. • Cars. • Groceries. • Clothing. © McGraw Hill 24 THE MIS SOLUTION 3 Services - Tasks performed by people that customers will buy to satisfy a want or need. • Teaching. • Waiting Tables. • Cutting Hair. © McGraw Hill 25 SYSTEMS THINKING 1 • Production - The process where a business takes raw materials and processes them or converts them into a finished product for its goods or services. Access the text alternative for slide images. © McGraw Hill 26 SYSTEMS THINKING 2 • Systems thinking – A way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback on each part. Access the text alternative for slide images. © McGraw Hill 27 SYSTEMS THINKING 3 • Management Information Systems (MIS) – A business function, like accounting and human resources, which moves information about people, products, and processes across the company to facilitate decision-making and problem-solving. © McGraw Hill 28 LEARNING OUTCOME REVIEW • Now that you have finished the chapter please review the learning outcomes in your text. © McGraw Hill 29 Because learning changes everything. ® www.mheducation.com Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
