The Information Age In Which You Live

Chapter 1
THE INFORMATION AGE IN
WHICH YOU LIVE
Changing the Face of
Business
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Management Information Systems
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Overview
Chapter 1
Today’s Economic Environment
Information
MIS
People
Roles and Goals of IT
Information Technology
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Management Information Systems
for the Information Age
Second Canadian Edition
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Introduction
Today we live in an Information age
Where knowledge is power.
Businesses are using information to gain
and sustain a competitive advantage.
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Management Information Systems
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Introduction Continued
 Once
you finish you program, you will enter
the marketplace as a knowledge worker.
 Knowledge worker works with and produces
information as a product.
 A knowledge worker outnumbers all other types
of workers by a 4-to-1 margin.
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Management Information Systems
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Introduction Continued
 Where
does MIS fit in today's’ information age
and why is it so important?
 Because it deals with the coordination and
use of 3 important organizational resources:



Information
Information Technology and
People
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Management Information Systems
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Second Canadian Edition
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Introduction Continued
As a Formal Definition:
Management information systems (MIS)
deals with the planning for, development,
management, and use of information
technology tools to help people perform all
tasks related to information processing and
management.
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Management Information Systems
for the Information Age
Second Canadian Edition
Copyright 2004
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All rights reserved
Chapter 1
Today’s Economic Environment
Information
MIS
People
Roles and Goals of IT
Information Technology
For a business to be successful today, it has to
understand and operate in dynamic, fast-paced
and changing economic environment.
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Management Information Systems
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Today’s Economic Environment
To be a successful business in today’s economic
environment, you must:




Know your competition  Competitive Intelligence.
Know your customers using tools such as Customer
Relationship Management, CRM.
Work closely with your business partners through
Supply Chain Management, SCM.
Know your organization inside and out.
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Management Information Systems
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Today’s Economic Environment
What does today’s economic environment entail?




The E.Conomy
The “Now” Economy
The Global Economy
The Arriving Digital Economy
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Management Information Systems
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Today’s Economic Environment
The E.conomy
eCommerce
Telecommuting
•
•
Distance Learning
Telephone service
representative working
from home
Virtual Workplace
Work anytime anyplace.
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Management Information Systems
for the Information Age
Second Canadian Edition
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Today’s Economic Environment
The E.conomy

Electronic commerce – is commerce, but it is
commerce accelerated and enhanced by information
technology.

Telecommuting – the use of communications
technologies to work in a place other than a central
location.

Virtual Workplace – a technology-enabled workplace.
No boundaries.
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Management Information Systems
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Second Canadian Edition
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Today’s Economic Environment
The E.conomy
Figure 1.1
Telecommuting –
Canadian
Statistics
page 6
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Management Information Systems
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Today’s Economic Environment
The “Now” Economy

Characterized by the immediate access
customers have to the ordering of
products and services.

An ATM is an example of a product in the
“now” economy.
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Management Information Systems
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Today’s Economic Environment
The “Now” Economy

M-commerce – electronic
commerce conducted over
a wireless device such as
a cell phone or personal
digital assistant.
Team Work
I Want It!
(p.8)
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Management Information Systems
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Today’s Economic Environment
The “Now” Economy
M-commerce gives you the
ability to:



Team Work
Buy and sell stocks
Bid on auctions
Obtain up-to-the-minute
weather forecasts.
I Want It!
(p.8)
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Management Information Systems
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Today’s Economic Environment
The Global Economy

Global economy – one in which customers,
businesses, suppliers, distributors, and
manufacturers all operate without regard to
physical and geographical boundaries.

Transnational firms – produce and sell
products and services in countries all over the
world.
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Management Information Systems
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Today’s Economic Environment
The Global Economy
Figure 1.2
Total Import and Export Figures, 1998 to 2000
(millions of Canadian dollars) page 9
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Management Information Systems
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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:




Voice recognition
Speech synthesization
Biometrics
Holograms
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Management Information Systems
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Information as a Key Resource
Chapter 1
Today’s Economic Environment
Information
MIS
People
Roles and Goals of IT
Information Technology
1. Information is one of the three components of MIS.
2. Information leads to knowledge and knowledge is power.
3. Knowledge comes from having timely access to information and
knowing what to do with it.
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Management Information Systems
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Second Canadian Edition
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MIS
Information
People
Information Technology
There are three aspects to information:
1.
2.
3.
In order to work with information, you need to
understand it, and to do so you need to understand
data. Data V.S. Information.
As a knowledge worker you work with and produce
information hence you should consider the personal
dimensions of information.
As an organization (yours or someone else's’) you also
need to consider the organization’s dimensions of
information.
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Management Information Systems
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MIS
Information
People
Information Technology
Data Versus Information



Data are raw facts that describe a particular
phenomenon.
Some data could be temperature, name, age, or
price of a movie rental.
If you are trying to decide what to wear, the price
of a movie rental would not help you in your
decision but the temperature will.
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Management Information Systems
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MIS
Information
People
Information Technology
Data Versus Information


Therefore Information are data that have a
particular meaning within a specific context.
Information could also be a group of data that
are related to each other such a name, age,
gender and address to give the student’s
personal information during registration.
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Management Information Systems
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Second Canadian Edition
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MIS
Information
People
Information Technology
Personal Dimensions of Information

The personal dimensions of information are
important since you are the knowledge worker
who works with and produces information. The
three personal dimensions of information
include:



Time
Location
Form
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Management Information Systems
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Second Canadian Edition
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MIS
Information
People
Information Technology
Personal Dimensions of Information
Figure 1.3
Personal
Dimensions of
Information
page 10
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Management Information Systems
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Second Canadian Edition
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MIS
Information
People
Information Technology
Personal Dimensions of Information

Time dimension


Having access to information when you
need it.
Having the correct information that
describes the specific time period of interest.
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Management Information Systems
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Second Canadian Edition
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MIS
Information
People
Information Technology
Personal Dimensions of Information
Location dimension


Having access to information no matter where you
are including:
•
•
•
•
•
Airplane
Hotel room
Home
Student center at university
At work
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Management Information Systems
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Second Canadian Edition
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MIS
Information
People
Information Technology
Personal Dimensions of Information

Form dimension


Having information in a form most useable
and understandable to you.
It is about accuracy. Having information that
is free of errors.
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Management Information Systems
for the Information Age
Second Canadian Edition
Copyright 2004
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All rights reserved
MIS
Information
People
Information Technology
Organizational Dimensions of Information
For your own business or while working
in a company, you need to consider the
various organizational dimensions of
information, including:



Information flows
Information granularity and
What information describes.
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Management Information Systems
for the Information Age
Second Canadian Edition
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MIS
Information
People
Information Technology
Organizational Dimensions of Information
Information Flows
Information in an organization flows in four
basic directions:
Up
Down
Horizontally
and
Outward
(See figure 1.4)
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Management Information Systems
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Second Canadian Edition
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MIS
Information
People
Information Technology
Organizational Dimensions of Information
Information Flows
In relation to the pyramid in figure 1.4
 TOP:



Strategic management
provides overall direction and guidance.
THE SECOND LEVEL:


Tactical management
develops the goals and strategies.
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Management Information Systems
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Second Canadian Edition
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MIS
Information
People
Information Technology
Organizational Dimensions of Information
Information Flows
In relation to the pyramid in figure 1.4

THE THIRD LEVEL:



Operational management
manages and directs the day-to-day operations.
FINAL LEVEL:


Non-management employees
perform daily activities.
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Management Information Systems
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MIS
Information
People
Information Technology
Organizational Dimensions of Information
Figure 1.4
An Organization,
Its Information
Flows, and
Information
Granularity
page 12
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Management Information Systems
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Second Canadian Edition
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MIS
Information
People
Information Technology
Organizational Dimensions of Information

The four flows of information include:


Upward – describes the current state of the
organization based on its daily transactions.
Downward – consists of the strategies, goals,
and directives that originate at one level and
are passed to lower levels.
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Management Information Systems
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Second Canadian Edition
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MIS
Information
People
Information Technology
Organizational Dimensions of Information

Information flows continued


Horizontal – between functional business
units and work teams.
Outward – information that is communicated
to customers, suppliers, distributors, and
other partners for the purpose of doing
business.
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Management Information Systems
for the Information Age
Second Canadian Edition
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MIS
Information
People
Information Technology
Organizational Dimensions of Information
Granularity

Information granularity – refers to the
extent of detail within the information.
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Management Information Systems
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Second Canadian Edition
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All rights reserved
MIS
Information
People
Information Technology
Organizational Dimensions of Information
Granularity


At the top of the pyramid information is highly
aggregated and summarized. The information is
coarse and granular.
At the bottom of the pyramid, the information is
‘raw’ and highly detailed. The information is of
fine granularity.
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Management Information Systems
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Second Canadian Edition
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All rights reserved
MIS
Information
People
Information Technology
Organizational Dimensions of Information
What information describes

What the information describes can include:




Internal information – specific operational aspects of
the organization.
External information – the environment surrounding
the organization.
Objective information – something that is known.
Subjective information – something that is
unknown.
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Management Information Systems
for the Information Age
Second Canadian Edition
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All rights reserved
People as a Key Resource
Chapter 1
Today’s Economic Environment
MIS
Information
People
1.
2.
3.
4.
5.
People
Set goals
Carry out tasks
Make decisions
Serve customer
Provide a stable and reliable
technology environment.
Roles and Goals of IT
Information Technology
When it comes to you (the people)
there are two important issues to be
aware of:
1. Information and technology
literacy.
2. You ethical responsibilities.
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Management Information Systems
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MIS
Information
People
Information Technology
Information and Technology Literacy

The single most important resource in any
organization is its people.

To be more precise, the most valuable
asset to the organization is your mind.
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Management Information Systems
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Second Canadian Edition
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MIS
Information
People
Information Technology
Information and Technology Literacy
A Technology-literate knowledge worker
is a person who knows how and when to
apply technology.


HOW is knowing what technology to buy and
how to exploit it benefits.
When is knowing the right time to apply
technology.
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Management Information Systems
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Second Canadian Edition
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MIS
Information
People
Information Technology
Information and Technology Literacy

Information-literate knowledge workers:




Define what information they need.
Know how and where to obtain information.
Understand the information.
Act appropriately based on the information to
help the organization achieve the greatest
advantage.
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Management Information Systems
for the Information Age
Second Canadian Edition
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All rights reserved
MIS
Information
People
Information Technology
Your Ethical Responsibilities

Ethics – the principals and standards that guide
our behavior toward other people.

Ethics are different from laws as they are a
matter of personal interpretation.

Ethics have a right and wrong outcome
according to different people.
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Management Information Systems
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MIS
Information
People
Information Technology
Your Ethical Responsibilities

Consider:



Copying software you purchased, making copies for
your friends and charging them for the copies.
Making extra backup copies.
Giving out the phone numbers of your friends and
relatives without their permission to a provider of
some sort.
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Management Information Systems
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Second Canadian Edition
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MIS
Information
People
Information Technology
Your Ethical Responsibilities
Which ones are ethical /
legal or not?
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Management Information Systems
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Second Canadian Edition
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MIS
Information
People
Information Technology
Your Ethical Responsibilities

Consider:



Copying software you purchased, making copies for
your friends and charging them for the copies. This is
not ethical nor legal.
Making extra backup copies. It is ethical but only legal
to make one backup copy.
Giving out the phone numbers of your friends and
relatives without their permission to a provider of
some sort. Not ethical.
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Management Information Systems
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Second Canadian Edition
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MIS
Information
People
Information Technology
Your Ethical Responsibilities

What about Hackers – very knowledgeable
computer user who uses his or her knowledge to
invade other people’s computers.
Figure 1.5
Acting Ethically
and Legally
page 16
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Management Information Systems
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MIS
Information
People
Information Technology
Your Ethical Responsibilities
On Your Own
E-Mail: Electronic Mail
or Expensive Mail?
(p. 17)
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Management Information Systems
for the Information Age
Second Canadian Edition
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IT as a Key Resource
Chapter 1
Today’s Economic Environment
Information
MIS
People
Roles and Goals of IT
Information Technology
Information Technology is any computer-based tool that people use to work with
information and support the information and information processing needs of an
organization.
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Management Information Systems
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Second Canadian Edition
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MIS
Information
People
Information Technology
Information technology
any computer-based tool that people use to
work with information and support the
information and information-processing
needs of an organization
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Management Information Systems
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Second Canadian Edition
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MIS
Information

People
Information Technology
There are two basic categories of
technology:


Hardware – physical devices that make up a
computer.
Software – set of instructions that the
hardware executes to carry out a specific
task.
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Management Information Systems
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MIS
Information
People
Information Technology
Key Technology Categories

On Your Own
Hardware categories







Input devices
Output devices
Storage devices
Central processing unit
Random access memory
Telecommunications devices
Connecting devices
Identifying
Hardware
And Software
(p. 21)
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Management Information Systems
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MIS
Information
People
Information Technology
Key Technology Categories

Input devices
•
•
•
•
•
•
Keyboard
Mouse
Touch screen
Game controller
Barcode reader
Scanner
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Management Information Systems
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MIS
Information
People
Information Technology
Key Technology Categories

Output devices
•
Printer



•
•
•
Dot matrix
Inkjet / Bubble jet
Laser jet
Monitor
Speakers
Video
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Management Information Systems
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Second Canadian Edition
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MIS
Information
People
Information Technology
Key Technology Categories

Storage devices
•
Primary storage


•
Random Access Memory
Read Only Memory
Secondary Storage





Hard Drive
DVD
Floppy Disk
Tape backup
Zip drive
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Management Information Systems
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MIS
Information
People
Information Technology
Key Technology Categories

Central processing unit
•
•
Pentium 4
AMD Athlon XP Thunderbird
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Management Information Systems
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MIS
Information
People
Information Technology
Key Technology Categories

Random access memory
•
•
SD RAM
DD RAM
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Management Information Systems
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MIS
Information
People
Information Technology
Key Technology Categories

Telecommunications devices
•
•
•
•
•
Telephone modem
DSL modem
Cable modem
Microwave
Satellite
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Management Information Systems
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MIS
Information
People
Information Technology
Key Technology Categories

Connecting devices
•
•
•
•
•
Printer cable
Parallel port
Serial port
USB port
Infrared
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Management Information Systems
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Second Canadian Edition
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MIS
Information
People
Information Technology
Key Technology Categories

Software categories



Application software
Operating system software
Utility software
(See Figure 1.6 on page 19 for a complete overview of
software categories.)
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Management Information Systems
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MIS
Information
People
Information Technology
Key Technology Categories

Software categories

Application software
•
•
•
•
•
•
Word processing
Payroll software
Spreadsheet software
Inventory management software
Graphics
Database management systems
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Management Information Systems
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MIS
Information
People
Information Technology
Key Technology Categories

Software categories

Operating system software
•
•
•
•
•
•
Windows XP
Windows 2000
Windows Me
Mac OS
Linux
Unix
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Management Information Systems
for the Information Age
Second Canadian Edition
Copyright 2004
The McGraw-Hill Companies, Inc.
All rights reserved
MIS
Information
People
Information Technology
Key Technology Categories

Software categories

Utility software
•
•
•
•
Antivirus
Screen saver
Disk optimization
Uninstaller
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Management Information Systems
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Second Canadian Edition
Copyright 2004
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All rights reserved
MIS
Information
People
Information Technology
Decentralized Computing and Shared Information
Figure 1.7
Decentralized
Computing and
Shared
Information
page 21
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Management Information Systems
for the Information Age
Second Canadian Edition
Copyright 2004
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All rights reserved
MIS
Information
People
Information Technology
Decentralized Computing and Shared Information

Decentralized computing – environment in
which an organization splits computing power
and locates it in functional business areas and
on knowledge workers’ desktops.

Shared information – environment in which an
organization’s information is organized in one
central location.
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Management Information Systems
for the Information Age
Second Canadian Edition
Copyright 2004
The McGraw-Hill Companies, Inc.
All rights reserved
Roles and Goals of
Information Technology
Chapter 1
Today’s Economic Environment
Information
Roles and Goals of IT
MIS
People
Information Technology
Roles and Goals of IT relates to the reasons you
with to buy, create, implement, use, and integrate
IT into your business strategy.
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Management Information Systems
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Second Canadian Edition
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All rights reserved
Roles and Goals of IT
1.
2.
3.
4.
5.
6.
Increase employee productivity
Enhance decision making
Improve team collaboration
Create business partnerships and
alliances
Enable global reach
Facilitate organizational transformation
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Management Information Systems
for the Information Age
Second Canadian Edition
Copyright 2004
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Roles and Goals of IT
1 - Increase Employee Productivity

Online transaction processing (OLTP) –
the gathering of input information,
processing that information, and updating
existing information to reflect the gathered
and processed information.
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Management Information Systems
for the Information Age
Second Canadian Edition
Copyright 2004
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All rights reserved
Roles and Goals of IT
1 - Increase Employee Productivity

Transaction processing system (TPS) –
processes transactions that occur within an
organization.

Customer-integrated system (CIS) – An
extension of a TPS that places technology in the
hands of an organization’s customers and allows
them to process their own transactions.
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Management Information Systems
for the Information Age
Second Canadian Edition
Copyright 2004
The McGraw-Hill Companies, Inc.
All rights reserved
Roles and Goals of IT
1 - Increase Employee Productivity
Figure 1.9
Transaction
Processing and
Customer-Integrated
Systems
page 24
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Management Information Systems
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Second Canadian Edition
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Roles and Goals of IT
2 - Enhance Decision Making

Online analytical processing (OLAP) – the
manipulation of information to support decision making.

Artificial intelligence – the science of making machines
imitate human thinking and behavior.

Neural network – an artificial intelligence that is capable
of finding and differentiating patterns.
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Management Information Systems
for the Information Age
Second Canadian Edition
Copyright 2004
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Roles and Goals of IT
2 - Enhance Decision Making

Executive information system (EIS) – a
highly interactive IT system that allows you
to first view highly summarized information
and then choose how you would like to
see greater detail, which may alert you to
potential problems or opportunities.
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Management Information Systems
for the Information Age
Second Canadian Edition
Copyright 2004
The McGraw-Hill Companies, Inc.
All rights reserved
Roles and Goals of IT
2 - Enhance Decision Making
Figure 1.10
Drilling Down with an Executive Information System
page 25
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Management Information Systems
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Second Canadian Edition
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Roles and Goals of IT
3 - Improve Team Collaboration

Collaboration system – designed specifically to
improve the performance of teams by supporting
the sharing and flow of information.

Groupware – software components that
supports the collaborative efforts of a team.
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Management Information Systems
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Second Canadian Edition
Copyright 2004
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All rights reserved
Roles and Goals of IT
3 - Improve Team Collaboration

Groupware contains support for:


Team dynamics
Document management
•

Group document database – acts as a powerful
storage facility for organizing and managing all
documents related to specific teams.
Applications development
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Management Information Systems
for the Information Age
Second Canadian Edition
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Roles and Goals of IT
4 - Create Business Partnerships and
Alliances
Team Work

Interorganizational
system (IOS) – automates
the flow of information
between organizations to
support the planning,
design, development,
production, and delivery of
products and services.
Finding Business
Partners and
Alliances on
The Web
(p. 27)
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Management Information Systems
for the Information Age
Second Canadian Edition
Copyright 2004
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All rights reserved
Roles and Goals of IT
4 - Create Business Partnerships and
Alliances

Electronic data interchange (EDI) – the
direct computer-to-computer transfer of
transaction information contained in
standard business documents, such as
invoices and purchase orders, in a
standard format.
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Management Information Systems
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Second Canadian Edition
Copyright 2004
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All rights reserved
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.
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Management Information Systems
for the Information Age
Second Canadian Edition
Copyright 2004
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All rights reserved
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.
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Management Information Systems
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Second Canadian Edition
Copyright 2004
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All rights reserved
Closing Case Study One
You and Your Information

Information travels with you and is captured and
stored by a number of organizations.

Trust and accuracy of information is important.

Do you trust organizations to maintain accurate
information about you?
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Management Information Systems
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Second Canadian Edition
Copyright 2004
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All rights reserved
Closing Case Study Two
How Much of Your Personal Information
Do You Want Businesses to Know?

Businesses need information about you to
provide the best possible products and
services.

How much of your information do you want
others to be able to access?
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Management Information Systems
for the Information Age
Second Canadian Edition
Copyright 2004
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All rights reserved
Summary
Student Learning Outcomes
1.
2.
3.
4.
Describe the information age and the role of
knowledge workers within it.
Define management information systems (MIS).
Describe key factors shaping today’s economic
environment.
Validate information as a key resource and describe
both personal and organizational dimensions of
information.
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Management Information Systems
for the Information Age
Second Canadian Edition
Copyright 2004
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All rights reserved
Summary
Student Learning Outcomes
5.
6.
7.
Define how people are the most important
organizational resource, their information and
technology literacy challenges, and their ethical
responsibilities.
Describe the important characteristics of information
technology (IT) as a key organizational resource.
List and describe the six roles and goals of information
technology in any organization.
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Management Information Systems
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Second Canadian Edition
Copyright 2004
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All rights reserved
Summary
Assignments & Exercises
1.
2.
3.
4.
5.
6.
Surveying the global economy
Finding trust in truste
Reporting on internet statistics by business
sector
Learning about an MIS major
Reviewing the 100 best companies to work for
Redefining business operations through it
innovation
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Management Information Systems
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Second Canadian Edition
Copyright 2004
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All rights reserved
Visit the Web to Learn More
www.mcgrawhill.ca/college/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
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Management Information Systems
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Second Canadian Edition
Copyright 2004
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All rights reserved