Chapter 1
COMPETING IN THE INFORMATION AGE
LEARNING OUTCOMES
1.
Describe the information age and the
differences between data, information,
business intelligence, and knowledge
2.
Identify the different departments in a
company and why they must work
together to achieve success
3.
Explain systems thinking and how
management information systems enable
business communications
Information Technology’s Impact
on Business
IT
BI
MIS
Operations
Flat world
Systems Thinking
Data – Information Knowledge
THE SOLUTION: MANAGEMENT
INFORMATION SYSTEMS
• Systems thinking – A way of monitoring the entire
system by viewing multiple inputs being processed
or transformed to produce outputs while
continuously gathering feedback
1-3
COMPETING IN THE INFORMATION AGE
• Examples of the power of business
and technology
– Amazon – Not a technology company;
primary business focus is selling books
– Netflix – Not a technology company;
primary business focus is renting videos
– Zappos – Not a technology company;
primary business focus is selling shoes
Information Technology’s Impact on Business
1-5
Information Technology’s Impact on Business
1-6
Data, Information, BI
• Data - raw facts that describe the characteristic
of an event
• Information - data converted into a meaningful
and useful context
• Business Intelligence – applications and
technologies that are used to gather, provide
access to, and analyze data and information to
support decision-making efforts
Data, Information, BI
1-8
Data, Information, BI
1-9
Data, Information, BI
1-10
INFORMATION TECHNOLOGY BASICS
• When beginning to learn about information
technology it is important to understand the
following:
– Data, information, and business intelligence
– IT resources
– The challenge: departmental companies
– The solution: management information system
THE CHALLENGE:
DEPARTMENTAL COMPANIES
Common Departments Working Independently
THE SOLUTION: MANAGEMENT
INFORMATION SYSTEMS
Common Departments Working Interdependently
1-13
Forces that Flattened the World