MBUS 626 Introduction to Management Information Systems Jason Chen, Ph.D. Professor of MIS School of Business Gonzaga University Spokane, WA 99258 mbus626chen@gmail.com Dr. Chen, Management Information Systems Weekly Class Assignments • Readings and prepare for class discussion – – – – Chapter Harvard Business Cases Discussion Questions (DQ) - Blackboard CDQ (if assigned): end of chapter discussion question and Mini-case (individual and from end of chapter) if assigned – Online quizzes Dr. Chen, Management Information Systems Why Information Systems? (Why take IS?) • “IT is a business force now. It amounts to one-half of US firm annual capital expenditures and increasingly affects firm organize, do business, and compete. Business managers who choose not to reckon with it do so at their and their firm’s peril. by Pete G.W. Keen • “Chaotics” by Philip Kolter and John Caslione (AMACOM 2009) N Dr. Chen, Management Information Systems Why Information Systems? “Chaotics” Globalization and technology are the two main forces that helped to create a new level of interlocking fragility in the world economy. While global interdependence works in everyone’s favor in good times, it rapidly spreads much pain and damage in bad times. by Philip Kolter and John Caslione (AMACOM 2009) N Dr. Chen, Management Information Systems 4 Top-Ten Innovation Mistakes a Company Can Make During a Turbulent Economy • • • • • • • • • • Fire talent. Cut back on technology. Reduce risk. Stop product development. Allow boards to replace growth-oriented CEOs with costcutting CEOs. Retreat from globalization. Allow CEOs to replace innovation as key strategy. Change performance metrics. Reinforce hierarchy over collaboration. Retreat into walled castle. Dr. Chen, Management Information Systems 5 IS vs. IT IS ? = Why? Dr. Chen, Management Information Systems IT Is Computer Age Over ? Dr. Chen, Management Information Systems The Information Age vs. the Computer Age The Computer Age Time-sharing Computer 1960’s Interactive Computing Mini/Micro provide user with computer power (as of Mainframe) but with little cost End of the computer age Advances in telecommunications(link terminals/PC mainframe) Beginning of the information age Software advances in application packages (e.g. , DBMS, spreadsheet PC as DSS tool to access information stored in the center computer files to support management decisionmaking process. Dr. Chen, Management Information Systems Computer Age vs. Information Age • Computer age refers to the love affair with hardware (and its speed of processing data) • Information age refers to the trend toward treating information as a corporate resource that supplies executives with timely, accurate information for more effective decision making. Dr. Chen, Management Information Systems MIS M I S Which component is more important? Dr. Chen, Management Information Systems Computers Impact The good news: Computers allow us to work 100% faster. The bad news: They generate 300% more work. Dr. Chen, Management Information Systems What is Information ? DATA INFORMATION What is 80/20 rule? How to apply it to this scenario? Information is refined data. Dr. Chen, Management Information Systems What is Information ? DATA INFORMATION Trivial many (80%)? or Vital few (20%)? Other business example? Dr. Chen, Management Information Systems 80% of information/ valuable output Data vs. Information • Users really want is – Information What users can learn from the data how to satisfy their best customers how to allocate their resources most efficiently, how to minimize losses Dr. Chen, Management Information Systems Information and our Life • Information (and energy) are at the core of everything around us. • Our entire existence is a process of gathering, analyzing, understanding, and acting on the information. Dr. Chen, Management Information Systems 100 Years ago... Industrial Revolution changed the World Today... • Information Revolution! Dr. Chen, Management Information Systems 100 Years ago... Industrial Revolution changed the World Today... • Information Revolution! Dr. Chen, Management Information Systems Industry Evolution (mid 1770s) Steam Engine Rail Road (1829, change concept of distance) Impact on: Economy, Politics, Social change Information Evolution (late 1990s) Computer Internet (1990, ??? Distance) N Dr. Chen, Management Information Systems INFORMATION and PROCESS Information is frequently said to be the glue that holds an organization together. WHY? EXAMPLES N Dr. Chen, Management Information Systems Value Chain in Order Management An Existing Product Support Activities Administrative and Other Indirect Value Added Primary Activities Production Sales and Manufacturing Distribution/ Service Logistics DB/KB Dr. Chen, Management Information Systems Accounting N Value Chain in Order Management A New Product Support Activities Administrative and Other Indirect Value Added Primary Activities Production Sales Finance and Manufacturing DB/KB . Dr. Chen, Management Information Systems Distribution/ Marketing Logistics Service More Information ? • More information is not profitable unless ____ it is relevant information. • Executives will need ____ information in better the future if their companies are to be competitive. Dr. Chen, Management Information Systems Information … BAD information is WORSE than ... NO ________information. Dr. Chen, Management Information Systems Attributes of Information Quality We realize that a firm needs better information to survive and prosper. Therefore, high quality information products have to be provided to management. Dr. Chen, Management Information Systems Attributes of Information Quality Dr. Chen, Management Information Systems What is Information Systems? • Information Systems (IS) are more than just computer hardware and software. • It is not just developing business applications programs • Information Systems include: – Information Technology – Management – Organization • Ultimately, IS are used as strategic tool to improve an organization’s competitive advantage. Dr. Chen, Management Information Systems INFORMATION SYSTEMS (MIS/IS) ORGANIZATIONS TECHNOLOGY INFORMATION SYSTEMS MANAGEMENT Dr. Chen, Management Information Systems Systems Technology Dr. Chen, The Challenge of the Information TM -27 What is Technology? If it's green, it's biology, if it stinks, its chemistry, if it has numbers its math, if it doesn't work, it’s technology Dr. Chen, Management Information Systems How you can apply MIS ... • To improve the information content of the data, • to present the valuable information in a user-friendly, intuitive, and easy to understand way, and • to empower knowledge workers of today and tomorrow. Dr. Chen, Management Information Systems Objectives of the MIS information Deliver the right _______ people , to the right _______ time , at the right ______ form . with the right _____ Ultimately, MIS should improve the workers’ productivity __________. Dr. Chen, Management Information Systems who has what information about whom and when, where, and how will all be decided in the process of building an information system. 30 What is the class about ? Therefore, this class is about the need, the value, and the means of acquiring, creating, managing, using the _________ and ______ information in the information age. Dr. Chen, Management Information Systems The Twenty-first Century will ... • The twenty-first century will witness only two kinds of companies: – those that exploit Information Technology (IT) – those that are out of business Source: Quality Information and Knowledge, Huang et. al., Prentice Hall Dr. Chen, Management Information Systems 32 What is Web 2.0? • "Web 2.0" refers to the second generation of web development and web design. – It is characterized as facilitating communication, information sharing, interoperability, user-centered design and collaboration on the World Wide Web. It has led to the development and evolution of web-based communities, hosted services, and web applications. – Examples include social-networking sites, video-sharing sites, wikis, blogs, mashups and folksonomies. – Web 2.0 is the business revolution in the computer industry caused by the move to the Internet as a platform, and an attempt to understand the rules for success on that new platform. Source: http://en.wikipedia.org/wiki/Web_2.0 Dr. Chen, Management Information Systems Roles of Information Systems Automates Informates Dr. Chen, Management Information Systems Innovates/ Transforms Information Management vs. Knowledge Management • Information management can be described as “delivering the right information to the right people at the right time with the right form.” • Knowledge management can be illustrated as “getting the right people to have the right conversation at the right time.” N Dr. Chen, Management Information Systems CONCLUSION Information System (IS) should be an organizational and management solution, based on information technology (IT), to a challenge posed by the environment. Dr. Chen, Management Information Systems Information Systems BUSINESS CHALLENGE MANAGEMENT INFORMATION INFORMATION BUSINESS SYSTEMS SOLUTIONS TECHNOLOGY ORGANIZATION Dr. Chen, Management Information Systems Dr. Chen, Information Age TM -37 Dr. Chen, Management Information Systems Dr. Chen, Information Age TM -38