Chapter 1 1 Chapter IS in the Life

Chapter 1 1 Chapter IS in the Life of Business Professionals

This Could Happen to You • Dee needs a Blog or an information system? – Lack of IS knowledge will hurt project progress – Uncertainty will cause project delays – Ignorance about technology leaves Dee at a disadvantage in dealing with IT staff – Never thought she would need to manage construction of an information system Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1 -2

Marketing Director’s Dilemma • Pharmaceutical industry is very competitive • Emerson Pharmaceuticals – 450 salespersons present drugs and information to doctors – Dozens of new drugs are introduced every year • Dee Clark is the Hospital Sales Marketing Director – Her job is to ensure that all reps have information to succeed • How can Dee distribute information quickly? – Facts about new drugs – Seminars – Presentations Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Part 1 -3

Blogs or Weblog • An online journal that publishes information over the Internet. • Information systems can be used to disseminate information quickly and easily to salespeople. • Types of information commonly shared: – Product news – Competitive threats and responses – Recent successes Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Part 1 -4

Study Questions Q 1: What is an information system? Q 2: What is MIS? Q 3: How does IS differ from IT? Q 4: How do successful business professionals use IS? Q 5: What new opportunities for IS are developing today? Q 6: What is your role in IS security? Q 7: What is this class about? How could the knowledge in this chapter help Dee and you? Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1 -5

Q 1: What Is an Information System (IS)? • IS: A group of components that interact to produce information • So, what is information? – Information is created when facts/data are put into meaningful and useful context Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1 -6

Information Value Chain (Gartner Group) Decision Knowledge Information Promote Product A with Product B Customers buy A when buying B X lives in Z Data Age Address 1 -7

Q 1: What Is an Information System? (cont’d) Five fundamental components of computer-based information systems: 1. 2. 3. 4. 5. Computer hardware Software Data Procedures People Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1 -8

Five-Component Framework of an Information System Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1 -9

Q 2: What is MIS? • MIS = Management Information Systems • MIS is the development and use of information systems that help businesses achieve goals and objectives • Key elements of MIS: – Development and use of Information systems – to support Business goals and objectives Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1 -10

Development and Use of Information Systems • Business professionals need to: 1. Take an active role in IS to ensure that systems meet their needs 2. Understand how IT systems are constructed 3. Consider users’ needs during development 4. Learn how to employ IT systems 5. Take into account ancillary IT functions • Security • Backup Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1 -11

Achieving Business Goals • MIS aids in achieving businesses’ objectives – Businesses don’t do anything – People Do! • Information systems exist to – assist business people – achieve business goals and objectives Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1 -12

Q 3: How Does IT Differ from IS? Information technology includes: 1. Hardware 2. Software 3. Data components Information technology refers to: 1. 2. 3. 4. Methods Inventions Standards Products IT could be thought of as “Information Tools. ” Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1 -13

Q 3: How Does IT Differ from IS? (cont’d) Information Systems = Information Technology plus People and Procedures Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1 -14

Q 4: How Do Successful Business Professionals Use IS? • Does IT create a competitive advantage? • Innovative applications of emerging technologies create competitive advantage - Information Systems Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1 -15

Q 5: What New Opportunities for IS Are Developing Today? • Data storage and transmission are virtually free, which provides abundant opportunities • Examples: – Getty Images sells electronic pictures over the Internet. • Variable cost of production is zero • Revenue goes straight to bottom line – Media Partners produces automated online training and testing systems. • Variable cost of producing program essentially zero • Entirely automated so all revenue goes straight to bottom line – You. Tube • 20 months, nothing but an idea into $1. 65 billion. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1 -16

Moore’s Law • “The number of transistors per square inch on an integrated chip doubles every 18 months. ” – The speed of a computer chip increases in proportion to the density of the transistors (i. e. , density doubles, speed doubles) – Price/performance ratio of computers has fallen dramatically Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1 -17

Moore’s Law (cont’d) Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1 -18

Q 6: What Is Your Role in IS Security? • Security is an information systems (HW – SW – Data – Procedures – PEOPLE) • Passwords are a necessary evil – Protect passwords from others (critical) – Practice proper etiquette • Never write down your password • Do not share it • Never ask others for their password Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1 -19

Creating a Strong Password Rules for strong password: 1. Use seven or more characters 2. Do not use your real name or company name 3. Do not use complete dictionary word 4. Use a different password from previous passwords used 5. Use upper- and lowercase letters, numbers and special symbols • Example: i 2 Luv. MIS(: >) Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1 -20

Q 7: What Is This Class About? • • Using IS for Competitive Strategy Looking for innovative applications of technology • Combining five IS components to support a business • Recognizing technology will continue to develop • Considering how technology can be used to accomplish goals Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1 -21

How Does The Knowledge in This Chapter Help Dee and You? • Dee and You – Work will be guided by five components of an information system – Someone else will set up and administer system’s blog – Need ongoing training – Need procedures for accessing and using systems – Need to look for technology for other applications – Need to use strong passwords Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1 -22

Guide: Duller Than Dirt • Why are you in this course? In college? • How can you make this class relevant to you? • Challenge yourself to find something that is important to you personally in every chapter. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1 -23

Active Review Q 1: Q 2: Q 3: Q 4: Q 5: Q 6: Q 7: What is an information system? What is MIS? How does IS differ from IT? How do successful business professionals use IS? What new opportunities for IS are developing today? What is your role in IS security? What is this class about? Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1 -24

Chapter 1 1 Chapter IS in the Life of Business Professionals