The Importance of MIS

Chapter 1

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“But Today, They’re Not Enough.”

Jennifer lacks skills AllRoad Parts needs

1. Abstract reasoning skills.

2. Systems thinking skills.

3. Collaboration skills.

4. Experimentation skills.

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Study Questions

Q1: Why is Introduction to MIS the most important class in the business school?

Q2: What is MIS?

Q3: How can you use the five-component model?

Q4: Why is the difference between information technology and information systems important?

Q5: What is information?

Q6: What are necessary data characteristics?

Q7: 2025?

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Q1: Why Is Introduction to MIS the Most Important Class in the Business School?

Moore’s Law• “The number of transistors per square inch on an integrated

chip doubles every 18 months.”

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Computer Price/Performance Ratio Historical Trend

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Some Consequences

• Google+ • Pintrest

• Vine • Zulily

• Pandora • Twitter

• LinkedIn • Tableau

None prominent in 2010, most didn’t exist in 2010

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What Are the Cost Effective Business Applications of Facebook, Twitter, or Whatever Will Soon Appear?

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• Are Facebook’s “Like” and Twitter’s “Follow” applications cost-effective? Do they generate revenue worth and expense of running them? What about cloud apps?

• Marketing people, not in a technical specialist, must answer those questions.

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How Can I Attain Job Security?

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• Only job security is a marketable skill and courage to use it.

• Any routine skill can and will be outsourced to lowest bidder.

• Message: Develop strong non-routine cognitive skills.

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What Is a Marketable Skill?

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How Can Intro to MIS Help You Learn Non-Routine Skills?

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• Abstract Reason– Ability to make and manipulate models.– Learn five components of an information system model.– Chapter 5: How to create data models.– Chapter 10: How to make process models.

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How Can Intro to MIS Help You Learn Non-Routine Skills? (cont’d)

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• Systems Thinking– Ability to model system components, connect inputs and

outputs among components to reflect structure and dynamics of system observed.

– Ability to discuss, illustrate, critique systems; compare alternative systems; apply different systems to different situations.

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How Can Intro to MIS Help You Learn Non-Routine Skills? (cont’d)

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• Collaboration– Two or more people working together to achieve a common

goal, result, or work product. – Chapter 2 discusses collaboration skills and illustrates

several sample collaboration information systems.

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How Can Intro to MIS Help You Learn Non-Routine Skills? (cont’d)

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• Ability to Experiment– Make reasoned analysis of an opportunity; developing and

evaluating possible solutions. “I’ve never done this before.” “I don’t know how to do it.” “But will it work?” “Is it too weird for the market?”

• Avoid "Fear of failure paralyzes".

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Job Growth over the Past Twenty Years

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Bottom Line of MIS Course

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Q2: What Is MIS?

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• Key elements

1. Management and use

2. Information systems

3. Strategies

•Goal of MIS– Managing IS to achieve business strategies

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What Is MIS (cont’d)

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Management• Develop, maintain, adapt by:

– Creating an information system that meets your needs, take an active role in system’s development. Why?

• Business professionals use cognitive skills to understand business needs and requirements.

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Components of an Information System?

Components interact to produce information

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Development and Use of Information Systems

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• Business professionals need to:– Take active role to ensure systems meet their needs.– Understand how IS is constructed.– Consider users’ needs during development.– Learn how to use the IS ancillary (security, backups).

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Achieving Strategies

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• Information systems exist to help people achieve business strategies.– “What is the purpose of our Facebook page?”– “What is it going to do for us?”– “What is our policy for employees’ contributions?”– “What should we do about critical customer reviews?”–“Are the costs of maintaining the page sufficiently offset by

the benefits?”

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Q3: How Can You Use the Five-Component Model?

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Characteristics of the Five Components

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• Most Important Component YOU!

– Your cognitive skills determine quality of your thinking, ability to conceive information from data.

– Information is value you add to information systems. All IS components must work together.

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Characteristics of the Five Components (cont'd)

• High-tech versus low-tech information systems.

• Understanding scope of new information systems.

• Components ordered by difficulty and disruption.

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Why Is the Difference Between Information Technology and Information Systems Important to You?

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• Avoid a common mistake: Cannot buy an IS.– Can buy, rent, lease hardware, software, and databases,

and predesigned procedures.

• People execute procedures to employ new IT.

• Use of a new system requires training, overcoming employees’ resistance, and managing employees as they use new system.

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So What? What’s Your Number?

• Sum Costs :– Tuition and textbooks – Housing cost (dorm or rent)– Food and entertainment – Transportation and other fees– Computing equipment, supplies, etc.

• Divide by total number of credit hours you're taking.

• Multiply cost per hour by length of class (1 hr., 1.5 hrs., 3 hrs.)

= Cost per class meeting

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So What? What’s Your Number? (cont'd )

• Assume you learned:– Need to assess, evaluate, and apply emerging

information systems technology to business.– Marketable skills: abstraction, systems thinking,

collaboration, and experimentation.– Information systems five components: hardware,

software, data, procedures, people.

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Q4: Why Is the Difference Between IT and IS Important to You?

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• Information technology drives development of new information systems.

• Information technology (IT)1. Products2. Methods3. Inventions4. Standards

IT components = Hardware + Software + Data IS = IT + Procedures + People

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Q5: What Is Information?

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Definitions vary:

1. Knowledge derived from data, where data are recorded facts or figures.

2. Data presented in a meaningful context.

3. Processed data, or data processed by summing, ordering, averaging, grouping, comparing, or other similar operations.

4. A difference that makes a difference.

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Where Is Information?

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• Graph is not, itself, information.– Graph is data you and others perceive, use to

conceive information.

• Ability to conceive information from data determined by cognitive skills.

• People perceive different information from same data.

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Amazon.com Stock Price and Net Income

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Q6: What Are Necessary Data Characteristics?

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Ethics Guide: Ethics and Professional Responsibility

Which graph do you present?

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Immanuel Kant

• Categorical imperative – One should behave only in a way that one would

want the behavior to be a universal law. Are you willing to publish your behavior to the

world?

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Duty

• Necessity to act in accordance with categorical imperative.

• Perfect duty - behavior must always be met. (Not lying)

• Imperfect duty - a action praiseworthy, but not required. – Giving to charity; developing your business skills and

abilities.

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Imperfect Duty of Business Professionals

• Cultivating your talent is an imperfect duty—professional responsibility.

• Obtaining skills necessary to accomplish your job.

• Continuing to develop business skills and abilities throughout your careers.

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Q7: 2025?

• Huge networks of computers to process image data in real time. What does that mean for privacy? Where are business opportunities?

• Computers-in-a-product

• Will people still go to work?

• Will people be employees of organizations?

• Will classrooms be needed?

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Security Guide: Password Etiquette

• Never write down your password.

• Never ask someone for their password.

• Never give your password to someone.

• “do-si-do” move—moving away so another person can enter password privately—common professional practice.

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Strong Passwords

• 10+ characters.

• Does not contain your user name, real name, or company name.

• Does not contain a complete dictionary word in any language.

• Different from previous passwords used.

• Contains both upper- and lowercase letters, numbers, and special characters (such as ˜ ! @; #

• $ % ^; &; * ( ) _ +; – =; { } | [ ] \ : “ ; ’ <; >;? , . /)

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Guide: Five-Component Careers

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Active Review

Q1: Why is Introduction to MIS the most important class in the business school?

Q2: What is MIS?

Q3: How can you use the five-component model?

Q4: Why is the difference between information technology and information systems important?

Q5: What is information?

Q6: What are necessary data characteristics?

Q7: 2025?

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Case Study 1: zulily

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• What is their business model? – Sells to mothers: primarily children’s clothes and toys,

women’s clothes, accessories, and décor items.– Use information technology to provide entertaining

shopping experience to mothers, name brand goods, unique and difficult-to-find off-brands, at substantial discounts.

– 45% of sales occur over mobile devices.– Curated sales.

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Case Study 1: zulily (cont'd.)

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How They Do It

• Buyers identify goods to be sold, negotiate with vendors.

• Photographs sample items in-house, write ad copy.

• Group items for three-day sales events.

• After event closes, zulily orders items from vendor, receives, packages, and ships to customers. (maintains no inventory).

• Vulnerable to vendors errors and mistakes.

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Use of Technology

• Internet, mobile technology compatibility.

• Developed a proprietary technology platform to handle. enormous spikes in web processing demand.

• Extensive data collection and analytics capabilities.

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Growth-Management Problems

• “To support continued growth, we must effectively integrate, develop and motivate a large number of new employees, while maintaining our corporate culture. In particular, we intend to continue to make substantial investments to expand our merchandising and technology personnel.”

• http://www.sec.gov/Archives/edgar/data/1478484/000144530514000741/zu-12292013x10k.htm

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Learning from zulily

• Founders developed innovative application of information systems technology.

• Applied it to a business opportunity.

• Managerial skill to develop that idea.

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