Important and need to know ISM 3003 Chapter 1 Business Driven Technology Section 1 1 Business Driven in MIS Competing in the Information Age We live in the information age when infinite quantities of facts are widely available to anyone who can use a computer A fact is the confirmation or validation of an event or object Examples Mark Zuckerberg started Facebook from his dorm Michael Dell creator of Dell computers Bill Gates creator of Microsoft Examples of the power of business and technology Many business leaders have created exceptional opportunities by coupling the power of the information age with traditional business methods Here are just a few examples Amazon is not a technology company its original business focus was to sell books and it now sells nearly everything Netflix is not a technology company its primary business focus is to rent videos Zappos is not a technology company its primary business focus is to sell shoes bags clothing and accessories Functional areas are anything but independent in a business Functional areas are interdependent see Figure 1 4 page 9 in textbook Sales must rely on information from operations to understand inventory place orders calculate transportation costs and gain insight into product availability based on production schedules Information technology IT is a field concerned with the use of technology in managing and processing information a Information technology is most useful when it leverages the talents of people Management information systems MIS is a general name for the business function and academic discipline covering the application of people technologies and procedures collectively called information systems to solve business problems Data information and business intelligence IT resources The challenge departmental companies The solution management information systems The Internet of Things IoT is a world where interconnected internet enabled devices can collect and share data without human intervention 1 Important and need to know The core drivers of the information age Information Data Business intelligence Knowledge L O 1 Data is raw facts that describe the characteristics of an event or object Information is data converted into a meaningful and useful context Business intelligence refers to applications and technologies that are used to gather provide access to and analyze data and information to support decision making efforts Textbook definition Business intelligence information collected from multiple sources such as suppliers customers competitors partners and industries that analyzes patterns trends and relationships for strategic decision making PowerPoint definition Business intelligence helps companies gain a more comprehensive knowledge of the factors affecting their business such as Metrics on sales Production Internal operations Knowledge skills experience and expertise coupled with information and intelligence that creates a person s intellectual resources Knowledge worker individual valued for their ability to interpret and analyze information The Challenge Departmental Companies Companies are typically organized by department or functional area such as Accounting Records measures and reports monetary transactions Finance Deals with strategic financial issues including money banking credit investments and assets Human resources Maintains policies plans and procedures for the effective management of employees Marketing Supports sales by planning pricing and promoting goods or services Operations management Manages the process of converting or transforming resources into goods or services Sales Performs the function of selling goods or services see Figure 1 9 page 12 2 Important and need to know 4 Marketing a Promotion data b Sales data c Advertising data 5 Operations Management a Manufacturing data b Distribution data c Production data a Potential customer data b Sales report data c Commission data d Customer support data 6 Sales Cars Groceries Clothing Teaching Waiting tables Cutting hair Example Question Assume you are in the business of producing and selling hamburgers If you could produce more hamburgers with the same input what would happen to your productivity and profits assuming the price of your hamburgers remains the same Increase in productivity increase in profits The MIS Solution Common Departments Working Interpedently 1 Accounting 2 Finance a Transactional data b Purchasing data c Payroll data d Tax data a Investment data b Monetary data c Reporting data 3 Human Resources a Employee data b Promotion data c Vacation data The MIS Solution continued Goods Material items or products that customers will buy to satisfy a want or need Services Tasks performed by people that customers will buy to satisfy a want or need Systems Thinking Feedback Input Process Output A system is a collection of parts that link to achieve a common purpose Systems thinking is a way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback on each part 3 Important and need to know Feedback is information that returns to its original transmitter input transform or output and modifies the transmitter s actions Management Information Systems MIS a business function like accounting and human resources which moves information about people products and processes across the company to facilitate decision making and problem solving L O 2 Explain how management information systems enable business communications Management Information Systems MIS enable business communications by moving information about people products and processes across the company to facility decision making and problem solving Incorporates systems thinking to help companies operate cross functionally MIS Department Roles and Responsibilities Chief information officer CIO Oversees all uses of IT and ensures the strategic alignment of IT with business goals and objectives Chief knowledge officer CKO Responsible for collecting maintaining and distributing the organization s knowledge Chief privacy officer CPO Responsible for ensuring the ethical and legal use of information Chief security officer CSO Responsible for ensuring the security of IT systems Chief technology officer CTO Responsible for ensuring the throughput speed accuracy availability and reliability of IT Section 1 2 Business Strategy Identifying Competitive Advantages A business strategy is a leadership plan