Chapter 1
THE INFORMATION AGE IN
WHICH YOU LIVE
Changing the Face of
Business
1-1
Chapter 1 Overview





1-2
Today’s Economic Environment
Information as a Key Resource
People as a Key Resource
Information Technology as a Key
Resource
Roles and Goals of Information
Technology
Opening Case Study
Can Technology Catch You Having An Affair?

Technology is pervasive, and often
invasive.

How can technology be inadvertently used
for “good” and “bad” purposes?
1-3
Introduction



1-4
Information age – a time when
knowledge and information are pervasive.
Knowledge worker – works with and
produces information as a product.
Management information systems (MIS)
– deal with the planning for, development,
management, and use of information
technology tools to help people perform
information processing and management
tasks.
Today’s Economic
Environment The E.conomy

Electronic
commerce

Telecommuting

Virtual workplace
1-5
% of Sites that Plan to Add Telecommuting
Today’s Economic Environment
The “Now” Economy

Requires immediate
access.
Team Work

M-commerce –
conducting ecommerce with a
wireless device.
I Want It!
(p. 7)
1-6
Today’s Economic
Environment The Global Economy


1-7
Global economy
Transnational firms
Today’s Economic Environment
The Arriving Digital Economy

Digital economy – marked by the
electronic movement of all types of
information including physiological
information such as:




1-8
Voice recognition
Synthesization
Biometrics
Holograms
Information as a Key Resource
Data Versus Information

Data – raw facts that describe a particular
phenomenon.

Information – data that have a particular
meaning within a specific context.
1-9
Information as a Key
Resource
Personal Dimensions of Information

The three personal
dimensions of
information include:



1-10
Time
Location
Form
Information as a Key Resource
Organizational Dimensions of Information

Strategic management

Tactical management

Operational
management

Nonmanagement
employees
1-11
Information as a Key Resource
Organizational Dimensions of Information

Information flows




Upward
Downward
Horizontal
Outward

Information granularity

Information describes: internal, external,
objective, and subjective.
1-12
People as a Key Resource
Information and Technology Literacy

Technology-literate knowledge worker
– a person who knows how and when to
apply technology.

Information-literate knowledge workers:




1-13
Define what information they need.
Know how and where to obtain information.
Understand the information.
Act appropriately based on the information.
People as a Key Resource
Your Ethical Responsibilities

Ethics – principals and
standards.

Ethics are different from
laws.

Ethics have a right and
wrong outcome according to
different people.
1-14
On Your Own
E-Mail: Electronic Mail
or Expensive Mail?
(p. 16)
Information Technology as a
Key Resource

Information technology – any computerbased tool.

Hardware (physical devices)


Includes input devices, output devices, storage devices,
CPU, RAM, telecommunications devices, and connecting
devices.
Software (instructions)

1-15
Includes application, operating system, and utilities.
IT as a Key Resource
Decentralized Computing and Shared
Information


Decentralized computing
Shared information
On Your Own
Identifying
Hardware
And Software
(p. 19)
1-16
Roles and Goals of
Information Technology
1.
2.
3.
4.
Increase employee productivity
Enhance decision making
Improve team collaboration
Create business partnerships and
alliances
5. Enable global reach
6. Facilitate organizational transformation
1-17
Roles and Goals of IT

1 - Increase Employee Productivity
Online transaction processing (OLTP) –
Gathers, processes, and updates
information.

Transaction processing system (TPS) –
processes transactions.

Customer-integrated system (CIS) –
Places technology in the customer’s hands.
1-18
Roles and Goals of IT
2 - Enhance Decision Making

Online analytical processing (OLAP) – the
manipulation of information for decision
making.

Artificial intelligence – making machines
imitate human thinking and behavior.

Neural network – capable of finding and
differentiating patterns.
1-19
Roles and Goals of IT
2 - Enhance Decision Making

Executive information system (EIS) –views
highly summarized information and detailed
information.
1-20
Roles and Goals of IT
3 - Improve Team Collaboration

Collaboration system – supports the
sharing and flow of information.

Groupware – supports the collaborative
efforts of a team. Groupware contains
support for:


Team dynamics
Document management
•

1-21
Group document database
Applications development
Roles and Goals of IT


4 - Create Business Partnerships and
Alliances
Team Work
Interorganizational system
(IOS) – automates the flow of
information between
organizations.
Electronic data interchange
(EDI) – the direct computer-tocomputer transfer of information.
1-22
Finding Business
Partners and
Alliances on
The Web
(p. 26)
Roles and Goals of IT
5 - Enable Global Reach

Business today is global business.

Culture – the collective personality of a
nation or society, encompassing language,
traditions, currency, religion, history,
music, and acceptable behavior, among
other things.
1-23
Roles and Goals of IT
6 - Facilitate Organizational Transformation

Organizational transformation is necessary
to respond to the ever-changing needs
(and wants) of today’s marketplace.

Blockbuster now provides movies on a
pay-per-view rental basis through cable.
1-24
Closing Case Studies

You and Your Information



Trust and accuracy of information is important.
Do you trust organizations with your information?
How much of Your Personal Information
Do You Want Businesses to Know?


1-25
Businesses need information to provide quality.
How much of your information should businesses
know?
RealHot E-Commerce Topics at
www.mhhe.com/haag







Job databases
Electronic resumes
Searching newspapers for job ads
Locating internships
Interviewing and negotiating tips
Organization sites and job postings
Employment opportunities with the
government
1-26