Chapter 1

IS in the Life of Business Professionals

Chapter 1

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

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• 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

Part 1-3

Marketing Director’s Dilemma

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• 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

Part 1-4

Blogs or Weblog

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Study Questions

Q1: What is an information system?Q2: What is MIS?Q3: How does IS differ from IT?Q4: How do successful business professionals use IS?Q5: What new opportunities for IS are developing today?Q6: What is your role in IS security?Q7: What is this class about?

How could the knowledge in this chapter help Dee and you?

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Q1: 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

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1-7

Information Value Chain(Gartner Group)

Data

Information

Knowledge

Age Address

X lives in Z

Customers buy A when buying B

Decision

Promote Product A with Product B

Q1: What Is an Information System? (cont’d)

Five fundamental components of computer-based information systems:

1. Computer hardware

2. Software

3. Data

4. Procedures

5. People

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Five-Component Framework of an Information System

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• 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

Q2: What is MIS?

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• 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

Development and Use of Information Systems

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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

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Q3: How Does IT Differ from IS?

Information technology includes:1. Hardware2. Software3. Data components

Information technology refers to:1. Methods2. Inventions3. Standards4. Products

IT could be thought of as “Information Tools.”

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Information Systems

=

Information Technology

plus

People and Procedures

Q3: How Does IT Differ from IS? (cont’d)

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• Does IT create a competitive advantage?

• Innovative applications of emerging technologies create competitive advantage - Information Systems

Q4: How Do Successful Business Professionals Use IS?

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Q5: 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

– YouTube• 20 months, nothing but an idea into $1.65 billion.

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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

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Moore’s Law (cont’d)

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Q6: 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

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Creating a Strong Password

Rules for strong password:1.Use seven or more characters2.Do not use your real name or company name3.Do not use complete dictionary word 4.Use a different password from previous passwords used5.Use upper- and lowercase letters, numbers and special symbols

• Example: i2LuvMIS(:>)

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Q7: 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

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• 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

How Does The Knowledge in This Chapter Help Dee and You?

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• 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.

Guide: Duller Than Dirt

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Active Review

Q1: What is an information system?Q2: What is MIS?Q3: How does IS differ from IT?Q4: How do successful business professionals

use IS?Q5: What new opportunities for IS are developing today?Q6: What is your role in IS security?Q7: What is this class about?

1-24Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 1

IS in the Life of Business Professionals

Chapter 1