But today, theyre n o t e n o u g h . D o y o u f i n d .docx

"But today, they're n o t e n o u g h . "
D o y o u f i n d that statement sobering? A n d If timely, h a r d
w o r k isn't enough, w h a t is?
W e ' l l b e g i n t h i s b o o k b y discussing the key skills t h
a t Jennifer (and you) n e e d a n d
e x p l a i n w h y t h i s course is t h e single best course i n a l
l o f the business s c h o o l f o r
teaching y o u those key skills.
You m a y find that last statement s u r p r i s i n g . I f y o u are
like most students, y o u have
n o clear idea o f w h a t y o u r M I S class w i l l be about. I f
someone were to ask y o u , " W h a t
do y o u study i n t h a t class?" y o u m i g h t respond that the
class has s o m e t h i n g to do w i t h
c o m p u t e r s a n d m a y b e c o m p u t e r p r o g r a m m i
n g . B e y o n d t h a t , y o u m i g h t b e
h a r d - p r e s s e d t o say m o r e . You m i g h t a d d , " W e
l l , i t has s o m e t h i n g to d o w i t h
c o m p u t e r s i n business," or maybe, "We are g o i n g to
learn to solve business p r o b l e m s
w i t h c o m p u t e r s u s i n g spreadsheets and other p r o g r
a m s . " So, h o w c o u l d this course be
the m o s t i m p o r t a n t one i n the business school?
We b e g i n w i t h t h a t q u e s t i o n . A f t e r y o u u n d e r
s t a n d h o w i m p o r t a n t this class w i l l
be t o y o u r career, we vwll discuss f u n d a m e n t a l
concepts. W e ' l l w r a p u p w i t h some
practice o n one of the key skills y o u need to learn.

Why Is Introduction to MIS the Most
Important Class in the Business School?
I n t r o d u c t i o n t o M I S is the m o s t i m p o r t a n t class
i n t h e b usi n ess s c h o o l . T h a t
statement was n o t t r u e i n 2005, and i t m a y n o t be t r u e
i n 2020. But i t is t r u e i n 2012.
Why?
The u l t i m a t e reason hes i n a p r i n c i p l e k n o w n as
Moore's L a w . I n 1965, G o r d o n
M o o r e , c o f o u n d e r o f I n t e l C o r p o r a t i o n ,
stated t h a t because o f t e c h n o l o g y i m p r o v e -
m e n t s i n electronic c h i p design a n d m a n u f a c t u r i n
g , "The n u m b e r o f transistors per
square i n c h o n an integrated c h i p doubles every 18 m o n t
h s . " His statement has b e e n
c o m m o n l y m i s u n d e r s t o o d t o be, "The speed of a c
o m p u t e r doubles every 18 m o n t h s , "
w h i c h is incorrect, b u t captures the sense of his p r i n c i p
l e .
Because of Moore's Law, the ratio of price to p e r f o r m a n c
e of c o m p u t e r s has fal l en
f r o m s o m e t h i n g like $4,000 for a standard c o m p u t i n
g device to s o m e t h i n g a r o u n d a
p e n n y for that same c o m p u t i n g device.^ See Figure 1-1.
As a f u t u r e business professional, however, you needn't care
how fast a computer
y o u r c o m p a n y can b u y f o r $100. That's n o t the p o i n
t . Here's the p o i n t :
B e c a u s e of Moore's L a w , the c o s t of d a t a c o m m u n
i c a t i o n s a n d data s t o r a g e i s
e s s e n t i a l l y z e r o .

T h i n k a b o u t t h a t s t a t e m e n t before y o u h u r r y t o
the next p a r a g r a p h . W h a t h a p p e n s
w h e n those costs are essentially zero? Here are some
consequences:
YouTube iPad
Facebook W o o t
Pandora • T w i t t e r
L i n k e d i n Foursquare
N o n e of these was p r o m i n e n t i n 2005, and, i n fact,
most d i d n ' t exist i n 2005.
'• These figures represent the cost of 100,000 transistors, which
can roughly be translated into a unit of
a computing device. For our purposes, the details don't matter.
If you doubt any of this, just look at
your $199 iPhone and realize that you pay $40 a month to use
it.
Q1 Why Is Introduction to MIS the Most Important C l a s s In
the Business School? 5
$4,000.00
_ $3,500.00 -
to
m
•§ $3,000.00
r $2,500.00 -

I
I $2,000.00 -
i $1,500.00 -
S. $1,000.00
u
$500,00
$0.00
1980
Price/Performance Ratio of Intel Processors
• $3,923.00 Cost perl 00,000
Transistors
Year (2010 dollars)
1983 $3,923.00
1985 $902.95
1988 $314.50
1997 $17.45
2002 $0.97
2005 $0.05
2012 $0.01
• $902.95
^-,^^^$314^
I I
$17.45
1985 1990 1995
Year

2000
$0.97 $0.05
2005
$0.01
Computer Price/Performance
Ratio Decreases
2012
Are There Cost-Effective Business Applications
of Faceboolc and Twitter?
Of c o u r s e . G e a r U p is p r o f i t a b l y u s i n g t h e m t
o d a y . E v e n t m o d e r a t o r s p o s t
a n n o u n c e m e n t s v i a T w i t t e r . G e a r U p c o l l e c
t s t h o s e t w e e t s a n d posts t h e m o n its
Facebook page. T o t a l cost t o GearUp? Zero.
B u t ask a n o t h e r q u e s t i o n : Are t h e r e w a s t e f u l ,
h a r m f u l , useless business
applications o f Facebook a n d Twitter? Of course. Do I care to
f o l l o w the tweets of the
mechanic w h o changes the o i l i n m y car? I don't t h i n k so.
But there's the p o i n t . Maybe I ' m n o t b e i n g creative e n
o u g h . Maybe there are great
reasons for the mechanic to tweet customers and I ' m j u s t n o
t able to t h i n k of t h e m .
Also, Facebook a n d Twitter are o l d news now. What's n e w o
n the h o r i z o n t h a t GearUp
a n d t h e m e c h a n i c s h o u l d be t h i n k i n g about? A l
l of t h i s leads us to t h e f i r s t reason
I n t r o d u c t i o n to M I S is the m o s t i m p o r t a n t

course i n t h e business school today:
F u t u r e b u s i n e s s p r o f e s s i o n a l s n e e d to be a b l
e to a s s e s s , e v a l u a t e , a n d a p p l y
e m e r g i n g information t e c h n o l o g y to b u s i n e s s .
You need the knowledge of this course to a t t a i n t h a t s k i l
l .
How Can I Attain Job Security?
M a n y years ago I h a d a vnse a n d experienced m e n t o r .
One day I asked h i m a b o u t j o b
security, a n d he t o l d me t h a t the o n l y j o b security t h a
t exists is "a marketable s k i l l a n d
the courage to use i t . " He c o n t i n u e d , "There is n o
security i n o u r company, there is n o
security i n any g o v e r n m e n t p r o g r a m , there is n o
security i n y o u r i n v e s t m e n t s , a n d
there is n o security i n Social Security." Alas, h o w r i g h t he
t u r n e d o u t to be.
So w h a t is a marketable skill? I t used to be t h a t one c o u l
d name p a r t i c u l a r skills,
such as c o m p u t e r p r o g r a m m i n g , tax a c c o u n t i n
g , or m a r k e t i n g . But today, because of
Moore's Law, because the cost of data storage and data c o m m
u n i c a t i o n s is essentially
zero, any r o u t i n e s k i l l can a n d w i l l be outsourced to
the lowest b i d d e r A n d i f y o u live
i n the U n i t e d States, Canada, Australia, Europe, or o t h e r
advanced economy, t h a t is
u n l i k e l y to be y o u .
N u m e r o u s organizations a n d experts have s t u d i e d the
q u e s t i o n o f w h a t skills w i l l
be marketable d u r i n g y o u r career. Consider t w o o f t h e

m . First, the RAND C o r p o r a t i o n ,
6 C H A P T E R 1 The Importance of MIS
Figure 1=2
Examples of Critical Skills for
Monroutine Cognition
Skill Example Jennifer's Problem at GearUp
Abstraction Constructs model or
representation.
Inability to model the event
life cycle.
Systems
thinking
Model system components and
show how components' inputs and
outputs relate to one another.
Confusion about how vendors
provide collateral material for
events.
Collaboration Develop ideas and plans with
others. Provide and receive critical
feedback.
Unwilling to work with others on
work-in-progress.

Experimentation Create and test promising new
alternatives, consistent with
available resources.
Fear of failure prohibited
discussion of new ideas.
a t h i n k t a n k l o c a t e d i n Santa M o n i c a , C a l i f o r
n i a , has p u b h s h e d i n n o v a t i v e a n d
g r o u n d b r e a k i n g ideas f o r m o r e t h a n 60 years, i n
c l u d i n g t h e i n i t i a l d e s i g n f o r t h e
I n t e r n e t . I n 2004, R A N D p u b l i s h e d a d e s c r i p t
i o n o f the skills t h a t w o r k e r s i n the
t w e n t y - f i r s t c e n t u r y w i l l need:
Rapid technological change and increased international
competition place the spotlight on
the skills and preparation of the workforce, particularly the
ability to adapt to changing
technology and shifting demand. Shifts i n d:ie nature of
organizations . . . favor strong
nomoutine cognitive skills.^
W h e t h e r y o u ' r e m a j o r i n g i n a c c o u n t i n g or m
a r k e t i n g or f i n a n c e or i n f o r m a t i o n
systems, y o u need to develop s t r o n g n o n r o u t i n e
cognitive skills.
W h a t are such skills? Robert Reich, f o r m e r Secretary of
Labor, enumerates f o u r
components:^
• Abstract reasoning
• Systems t h i n k i n g
C o l l a b o r a t i o n

A b i l i t y to e x p e r i m e n t
Figure 1-2 shows a n example of each. Reread the GearUp case t
h a t started t h i s
chapter, a n d y o u ' l l see t h a t Jennifer lost her j o b because
o f her i n a b i l i t y to practice
these key skills.
Kcsw C&m lic&ffo to MXB Heip'ifoy L e a r n f t o ^ i r o y t i
i n ! ® S k i l l © ?
I n t r o d u c t i o n t o M I S is t h e best course i n t h e b u s i
n e s s s c h o o l f o r l e a r n i n g these
f o u r key s k i l l s because e v e r y t o p i c w i l l r e q u i r e
y o u t o a p p l y a n d p r a c t i c e t h e m .
Here's h o w .
Abstract Reasorssng
Abstract reasoning is the a b i l i t y to make a n d m a n i p u l
a t e m o d e l s . You w i l l w o r k with
o n e or m o r e m o d e l s i n every course t o p i c a n d b o o
k chapter. For example, later i n
t h i s chapter y o u v d l l l e a r n a b o u t a model of the five
c o m p o n e n t s of an i n f o r m a t i o n
^ Lynn A. Kaoly and Constantijn W. A. Panis, The 21st Century
at Work (Santa Monica, CA: RAND
Corporation, 2004), p. xiv.
3 Robert B. Reich, The Work of Nations (New York Alfred A.
Knopf, 1991), p. 229.
Q1 Why Is Introduction to MIS the Most Important C l a s s in
the Business School?
system. This chapter w i l l describe h o w to use t h i s m o d e

l t o assess the scope of any
n e w i n f o r m a t i o n system project; o t h e r chapters w i l l
b u i l d u p o n this m o d e l .
I n this course, y o u w i l l n o t just m a n i p u l a t e models
that y o u r i n s t r u c t o r or I have
developed, y o u vwll also be asked to c o n s t r u c t models of
y o u r o v m . I n Chapter 5, for
example, y o u ' l l l e a r n h o w to create data m o d e l s , a n
d i n C h a p t e r 10 y o u ' l l l e a r n t o
make process models.
Systems Thinking
Can y o u go d o v m to a groceiy store, l o o k at a can of green
beans, a n d connect that can
to U.S. i m m i g r a t i o n policy? Can y o u w a t c h tractors d
i g u p a forest of p u l p w o o d trees
and connect that w o o d y trash to Moore's Law? Do y o u k n o
w w h y Cisco Systems is one
of the m a j o r beneficiaries of YouTube?
Answers to a l l of these questions require systems t h i n k i n g
. Systems thinking is
the a b i l i t y to m o d e l the c o m p o n e n t s of the system,
t o connect t h e i n p u t s a n d o u t p u t s
a m o n g those c o m p o n e n t s i n t o a sensible w h o l e t h
a t reflects t h e s t r u c t u r e a n d
dynamics of the p h e n o m e n o n observed.
As y o u are a b o u t to l e a r n , t h i s class is a b o u t i n f o
r m a t i o n systems. We w i l l
discuss a n d i l l u s t r a t e systems; y o u w i l l be asked t o c
r i t i q u e systems; y o u w i l l be
asked t o c o m p a r e a l t e r n a t i v e systems; y o u w i l l
be asked to a p p l y d i f f e r e n t systems
to d i f f e r e n t s i t u a t i o n s . A l l o f those tasks w i l l

prepare y o u f o r systems t h i n k i n g as a
p r o f e s s i o n a l .
Collaboration
C o l l a b o r a t i o n is t h e a c t i v i t y o f t w o or m o r e p
e o p l e w o r k i n g t o g e t h e r t o achieve a
c o m m o n goal, result, or w o r k p r o d u c t . Chapter 2 vwll
teach y o u c o l l a b o r a t i o n skills
a n d i l l u s t r a t e several s a m p l e c o l l a b o r a t i o n i
n f o r m a t i o n systems. Every c h a p t e r o f
t h i s b o o k i n c l u d e s c o l l a b o r a t i o n exercises t h a
t y o u m a y be assigned i n class or as
h o m e w o r k .
Here's a f a c t t h a t surprises m a n y s t u d e n t s : Effective
c o l l a b o r a t i o n isn't a b o u t
b e i n g n i c e . I n fact, surveys i n d i c a t e the single m o s t
i m p o r t a n t s k i l l f o r effective
c o l l a b o r a t i o n is to give a n d receive c r i t i c a l
feedback. Advance a p r o p o s a l i n business
t h a t challenges the c h e r i s h e d p r o g r a m of t h e VP of
m a r k e t i n g , a n d y o u ' l l q u i c k l y
l e a r n t h a t effective c o l l a b o r a t i o n skills d i f f e r f r
o m p a r t y m a n n e r s at the n e i g h b o r -
h o o d barbeque. So, h o w d o y o u advance y o u r idea i n
the face of the VP's resistance?
A n d w i t h o u t l o s i n g y o u r job? I n t h i s course, y o u
can l e a r n b o t h skills a n d i n f o r m a t i o n
systems f o r s u c h c o l l a b o r a t i o n . Even better, y o u w
i l l have m a n y o p p o r t u n i t i e s t o
practice t h e m .
Ability to Experiment
"I've never done t h i s before."
" I don't k n o w h o w to do i t . "
"But w i l l i t w o r k ? "

"Is i t too w e i r d for the market?"
Fear of f a i l u r e : the fear t h a t paralyzes so m a n y g o o d
p e o p l e a n d so m a n y g o o d
ideas. I n the days w h e n business was stable, w h e n n e w
ideas were just different verses
o f the same song, professionals c o u l d allow themselves t o
be l i m i t e d by fear of failure.
B u t t h i n k a g a i n a b o u t t h e a p p h c a t i o n o f s o c i
a l n e t w o r k i n g to t h e o i l change
business. Is t h e r e a l e g i t i m a t e a p p l i c a t i o n of
social n e t w o r k i n g there? I f so, has
anyone ever done it? Is there anyone i n the w o r l d w h o can t
e l l y o u w h a t to do? H o w to
proceed? No. As Reich says, professionals i n the t w e n t y - f
i r s t c e n t u r y need to be able
to e x p e r i m e n t .
Successfid e x p e r i m e n t a t i o n is n o t t h r o w i n g
buckets o f m o n e y at every crazy idea
that enters your head. Instead, experimentation is m a k i n g a
reasoned analysis of an
o p p o r t u n i t y , e n v i s i o n i n g p o t e n t i a l s o l u t i
o n s , e v a l u a t i n g those p o s s i b i l i t i e s , a n d
developing the most p r o m i s i n g ones, consistent v«th the
resources y o u have.
• C H A P T E R 1 The Importance of MIS
I n t h i s course, y o u w i l l be asked t o use p r o d u c t s w i
t h w h i c h y o u have n o
f a m i l i a r i t y . Those p r o d u c t s m i g h t be M i c r o s o
f t Excel or Access, o r t h e y m i g h t be

features a n d f u n c t i o n s o f B l a c k b o a r d t h a t you've
n o t used. Or, y o u m a y be asked to
c o l l a b o r a t e u s i n g O f f i c e 365 or SharePoint or
Google D o c s . W i l l y o u r i n s t r u c t o r
e x p l a i n a n d s h o w every feature of those p r o d u c t s t h
a t y o u ' l l need? You s h o u l d h o p e
n o t . You s h o u l d h o p e y o u r i n s t r u c t o r w i l l
leave i t u p t o y o u t o e x p e r i m e n t , t o
e n v i s i o n n e w p o s s i b i l i t i e s o n y o u r o w n , a n d
e x p e r i m e n t w i t h t h o s e p o s s i b i l i t i e s ,
consistent w i t h the t i m e y o u have available.
The b o t t o m line? This course is the most i m p o r t a n t
course i n the business school
because
1. It will g i v e y o u the b a c k g r o u n d y o u n e e d to a s s
e s s , e v a l u a t e , a n d apply
e m e r g i n g information s y s t e m s t e c h n o l o g y to b u
s i n e s s .
2. It c a n give y o u the ultimate in j o b s e c u r i t y — m a r
k e t a b l e s k i l l s — b y h e l p i n g
y o u learn a b s t r a c t i o n , s y s t e m s t h i n k i n g , c o l
l a b o r a t i o n , a n d e x p e r i m e n t a t i o n .
W i t h t h a t i n t r o d u c t i o n , let's get started! Welcome
aboard.
. What Is MIS?
We've used the t e r m MIS several times, a n d y o u m a y be w
o n d e r i n g exactly w h a t i t is.
M I S stands f o r m a n a g e m e n t i n f o r m a t i o n
systems, w h i c h w e d e f i n e as the
management and use of information systems that help
businesses achieve their

strategies. This d e f i n i t i o n has three key elements:
management and use, information
systems, and strategies. Let's consider each, s t a r t i n g first w
i t h i n f o r m a t i o n systems and
t h e i r c o m p o n e n t s .
f ~ ~ ' 'i'mn System
A system is a g r o u p o f c o m p o n e n t s t h a t i n t e r a c t
t o achieve some p u r p o s e . As y o u
m i g h t guess, an information system (IS) is a g r o u p o f c o
m p o n e n t s t h a t i n t e r a c t t o
p r o d u c e i n f o r m a t i o n . T h a t sentence, a l t h o u g h
true, raises another q u e s t i o n : W h a t are
these c o m p o n e n t s t h a t interact t o p r o d u c e i n f o r
m a t i o n ?
Figure 1-3 shows the five-component framework—a m o d e l of
the c o m p o n e n t s of
a n i n f o r m a t i o n system: computer h a r d w a r e ,
software, data, procedures, a n d
people. These five c o m p o n e n t s are p r e s e n t i n every i
n f o r m a t i o n system, f r o m the
simplest t o the most complex. For example, w h e n y o u use a
c o m p u t e r to w r i t e a class
report, y o u are using hardware (the computer, storage disk,
keyboard, a n d m o n i t o r ) ,
s o f t w a r e ( W o r d , WordPerfect, or some o t h e r w o r d -
p r o c e s s i n g p r o g r a m ) , d a t a (the
w o r d s , sentences, and paragraphs i n y o u r r e p o r t ) ,
procedures (the m e t h o d s y o u use t o
start t h e p r o g r a m , enter y o u r r e p o r t , p r i n t i t , a n
d save a n d back u p y o u r f i l e ) , a n d
people (you).
Consider a m o r e c o m p l e x example, say a n a i r l i n e r e
s e r v a t i o n system. I t , too,

consists of these five c o m p o n e n t s , even t h o u g h each
one is far m o r e c o m p l i c a t e d . The
hardware consists of dozens or m o r e c o m p u t e r s l i n k e
d together b y data c o m m u n i c a -
t i o n s hardware. Further, h u n d r e d s of d i f f e r e n t
programs coordinate c o m m u n i c a t i o n s
a m o n g the c o m p u t e r s , a n d s t i l l other programs p e r
f o r m the reservations a n d related
services. A d d i t i o n a l l y , the system m u s t store m i l l i
o n s u p o n m i l l i o n s o f characters o f
data a b o u t f l i g h t s , c u s t o m e r s , reservations, a n d o
t h e r facts. H u n d r e d s o f d i f f e r e n t
procedures are f o l l o w e d b y a i r l i n e p e r s o n n e l ,
travel agents, a n d customers. Finally,
t h e i n f o r m a t i o n system i n c l u d e s people, n o t o n l
y the users of the system, b u t also
Figure 1 ' Five-Component Framework
Five Components rTI~I~~TTT~~~Tr~Tr~~~Tr~r" i o
of an Information System | Hardware | Software | Data |
Procedures | People
Q2 What Is MIS? 9
those w h o operate a n d service the computers, those w h o m a
i n t a i n the data, a n d those
w h o s u p p o r t th e networks of c o m p u t e r s .
The i m p o r t a n t p o i n t here is t h a t the five c o m p o n e
n t s i n Figure 1-3 are c o m m o n to
a l l i n f o r m a t i o n systems, f r o m the smallest to the
largest. As y o u t h i n k a b o u t any
i n f o r m a t i o n system, i n c l u d i n g a n e w one like

social n e t w o r k i n g by mechanics, l e a r n
to l o o k for these five c o m p o n e n t s . Reahze, too, t h a t
an i n f o r m a t i o n system is n o t j u s t a
c o m p u t e r a n d a p r o g r a m , b u t r a t h e r a n assembly
o f c o m p u t e r s , p r o g r a m s , data,
procedures, a n d people.
As w e w i l l discuss later i n t h i s chapter, these five c o m p
o n e n t s also m e a n t h a t
m a n y differen t skills are r e q u i r e d besides those of
hardware technicians or c o m p u t e r
p r o g r a m m e r s w h e n b u i l d i n g or u s i n g a n i n f o
r m a t i o n system. People are needed w h o
c a n d e s i g n th e databases t h a t h o l d the data a n d w h o
can d e v e l o p p r o c e d u r e s f o r
people to follow. Managers are needed to t r a i n and staff the
personnel f o r u s i n g a n d
o p e r a t i n g the system. We w i l l r e t u r n to this f i v e - c
o m p o n e n t f r a m e w o r k later i n this
chapter, as w e l l as m a n y other times t h r o u g h o u t this
book.
Before w e m o v e f o r w a r d , n o t e t h a t w e have d e f i n
e d an i n f o r m a t i o n system t o
i n c l u d e a c o m p u t e r . Some p e o p l e w o u l d say t h a
t s u c h a s y s t e m is a c o m p u t e r -
b a s e d i n f o r m a t i o n system. T h e y w o u l d n o t e t h
a t t h e r e are i n f o r m a t i o n systems
t h a t do n o t i n c l u d e c o m p u t e r s , such as a calendar
h a n g i n g o n the w a l l o u t s i d e o f a
con feren ce r o o m t h a t is used t o schedule t h e room's use.
Such systems have b e e n
u s e d b y businesses f o r c e n t u r i e s . A l t h o u g h t h i s
p o i n t is t r u e , i n t h i s b o o k w e
focus o n c o m p u t e r - b a s e d i n f o r m a t i o n systems.
To s i m p l i f y a n d s h o r t e n t h e b o o k ,

w e w i l l use t h e t e r m information system as a s y n o n y m
f o r computer-based
information system.
T h e next e l e m e n t i n o u r d e f i n i t i o n o f M I S is the
management and use o f i n f o r m a t i o n
systems. Here, w e d e f i n e m a n a g e m e n t t o m e a n d e
v e l o p , m a i n t a i n , a n d a d a p t .
I n f o r m a t i o n systems do n o t p o p u p like m u s h r o o
m s after a h a r d r a i n ; t h e y m u s t be
d e v e l o p e d . They m u s t also be m a i n t a i n e d a n d ,
because business is d y n a m i c , t h e y
m u s t be adapted t o n e w r e q u i r e m e n t s .
You m a y be saying, " W a i t a m i n u t e , I ' m a finance (or
a c c o u n t i n g or m a n a g e m e n t )
m a j o r , n o t a n i n f o r m a t i o n systems m a j o r , I d o n
' t n e e d to k n o w h o w to m a n a g e
i n f o r m a t i o n systems," I f y o u are saying that, y o u are
like a l a m b headed for fleecing.
T h r o u g h o u t y o u r career, i n w h a t e v e r f i e l d y o u
choose, i n f o r m a t i o n systems w i l l be
b u i l t f o r y o u r use, a n d s o m e t i m e s u n d e r y o u r d
i r e c t i o n . To create a n i n f o r m a t i o n
system t h a t meets y o u r needs, y o u need to take a n active
role i n t h a t system's develop-
m e n t . Even i f y o u are n o t a p r o g r a m m e r or a
database designer or some o t h e r IS
professional, y o u m u s t take a n active role i n specifying the
system's requirements a n d
i n m a n a g i n g the system's d e v e l o p m e n t project. W i t
h o u t active i n v o l v e m e n t o n y o u r
p a r t , i t will o n l y be g o o d l u c k t h a t causes the n e w
system to meet y o u r needs.
As a business professional, y o u are the person w h o

understands business needs
a n d r e q u i r e m e n t s . I f y o u w a n t to a p p l y social n
e t w o r k i n g to y o u r p r o d u c t s , y o u are
the one w h o knows h o w best to o b t a i n customer
responses. The t e c h n i c a l people w h o
b u i l d n e t w o r k s , t h e database designers w h o create t h
e database, t h e I T p e o p l e
w h o c o n f i g u r e the c o m p u t e r s — n o n e o f these p e
o p l e k n o w w h a t is n e e d e d a n d
w h e t h e r th e system y o u have is s u f f i c i e n t or w h e t
h e r i t needs to be a d a p t e d to n e w
requirements. You do!
I n a d d i t i o n to m a n a g e m e n t tasks, y o u w i l l also
have i m p o r t a n t roles to play i n the
use of i n f o r m a t i o n systems. Of course, y o u w i l l need
to l e a r n h o w to e m p l o y the
system to a c c o m p l i s h y o u r goals. But y o u w i l l also
have i m p o r t a n t ancillary f u n c t i o n s
as w e l l . For example, w h e n u s i n g a n i n f o r m a t i o n
system, y o u w i l l have responsibilities
f o r p r o t e c t i n g t h e s e c u r i t y of the system a n d its d
a t a . You m a y also have tasks f o r
b a c k i n g u p data. W h e n the system fails (most do, at some
p o i n t ) , y o u w i l l have tasks
to p e r f o r m w h i l e the system is d o w n as w e l l as tasks
to a c c o m p l i s h to h e l p recover the
system correctly a n d quickly.
Security is critically
important when using
information systems re da-..
You'll learn much n:a ::l:z:a
it in Chapter 12.3: '; ::
need to knou ^ r : : - ~j>ig
passwords an J:; use now,

before you ^i' :mi chapter.
Read and'': the password
Guide OK-.:.-i<es 22-23.
10 C H A P T E R 1 The Importance of MIS
AGhievJng Strategies
The last p a r t of the d e f i n i t i o n of M I S is t h a t i n f o r
m a t i o n systems exist to h e l p b u s i -
nesses achieve t h e i r strategies. First, realize t h a t t h i s s t
a t e m e n t hides an i m p o r t a n t
fact: Businesses themselves do n o t "do" a n y t h i n g . A
business is n o t alive, a n d i t c a n n o t
act. It is the people w i t h i n a business w h o sell, buy, design,
p r o d u c e , finance, market,
a c c o u n t , a n d manage. So, i n f o r m a t i o n systems
exist to h e l p people w h o w o r k i n a
business t o achieve the strategies o f that business.
I n f o r m a t i o n systems are n o t created for t h e sheer j o y
of e x p l o r i n g technology.
They are n o t created so t h a t the c o m p a n y can be " m o d
e r n " or so t h a t the c o m p a n y
can s h o w i t has a social n e t w o r k i n g presence o n the
Web. T h e y are n o t created
because the i n f o r m a t i o n systems d e p a r t m e n t t h i n
k s i t needs to be created or because
the c o m p a n y is " f a l l i n g b e h i n d the technology
curve."
This p o i n t m a y seem so obvious t h a t y o u m i g h t w o n
d e r w h y we m e n t i o n i t . Every
day, however, some business somewhere is d e v e l o p i n g an
i n f o r m a t i o n system for the

w r o n g reasons. Right now, somewhere i n the w o r l d , a c o
m p a n y is d e c i d i n g to create a
Facebook presence for t h e sole reason t h a t "every o t h e r
business has one." T h i s
c o m p a n y is n o t asking questions such as:
" W h a t is the purpose of o u r Facebook page?"
" W h a t is i t going to do for us?"
" W h a t is o u r pohcy for employees' c o n t r i b u t i o n s ? "
" W h a t s h o u l d we do about c r i t i c a l customer
reviews?"
"Are the costs of m a i n t a i n i n g the page s u f f i c i e n t l
y offset b y the benefits?"
B u t t h a t c o m p a n y s h o u l d ask t h o s e q u e s t i o n s
! C h a p t e r 3 addresses t h e
r e l a t i o n s h i p b e t w e e n i n f o r m a t i o n systems a n
d strategy i n m o r e d e p t h . Chapter 8
addresses social m e d i a a n d strategy specifically.
Again, M I S is the development and use of i n f o r m a t i o n
systems that help businesses
achieve their strategies. Already y o u should be realizing t l i a
t there is m u c h more t o this
class t h a n b u y i n g a computer, w o r k i n g v r i t h a
spreadsheet, or creating a Web page.
i How Can Ybu Use the Five-Component
Model?
T h e f i v e - c o m p o n e n t m o d e l i n F i g u r e 1-3 c a n
h e l p g u i d e y o u r l e a r n i n g a n d
t h i n k i n g a b o u t IS, b o t h n o w a n d i n t h e f u t u r e .
To u n d e r s t a n d t h i s f r a m e w o r k
b e t t e r , f i r s t n o t e i n F i g u r e 1-4 t h a t these f i v e c
o m p o n e n t s are s y m m e t r i c . T h e
o u t e r m o s t c o m p o n e n t s , h a r d w a r e a n d p e o p l

e , are b o t h a c t o r s ; t h e y c a n t a k e
a c t i o n s . T h e s o f t w a r e a n d p r o c e d u r e c o m p o
n e n t s are b o t h sets o f i n s t r u c t i o n s :
Software is i n s t r u c t i o n s f o r h a r d w a r e , a n d p r o
c e d u r e s are i n s t r u c t i o n s for p e o p l e .
F i n a l l y , d a t a is t h e b r i d g e b e t w e e n t h e c o m p
u t e r side o n t h e l e f t a n d the h u m a n
side o n t h e r i g h t .
—Actors
Instructions 1
Bridge
Hardware I Software I Data I Procedures | People
Computer Side Human Side
Automation moves worl̂ from human side to computer side
Characteristics of the Five
Components
Increasing degree of difficulty of change
Q3 How C a n You Use the Five-Component IVlodel? 11
Now, w h e n we automate a business task, we take w o r k that
people are d o i n g by
f o l l o w i n g p r o c e d u r e s a n d move i t so t h a t c o m
p u t e r s w i l l do t h a t w o r k , f o l l o w i n g
i n s t r u c t i o n s i n software. Thus, the process of a u t o m a
t i o n is a process of m o v i n g w o r k

f r o m the r i g h t side of Figure 1-4 to the left.
i—YOU
You are p a r t o f every i n f o r m a t i o n system t h a t y o u
use. W h e n y o u consider the five
c o m p o n e n t s of an i n f o r m a t i o n system, the last c o
m p o n e n t , people, includes y o u . Your
m i n d a n d y o u r t h i n k i n g are n o t merely a c o m p o n
e n t of the i n f o r m a t i o n systems y o u
use, they are the most important component.
C o n s i d e r a n e x a m p l e . Suppose y o u have the p e r f e
c t i n f o r m a t i o n system, o n e
t h a t can p r e d i c t the f u t u r e . N o such i n f o r m a t i o
n system exists, b u t assume for t h i s
e x a m p l e t h a t i t does. N o w suppose t h a t o n D e c e m
b e r 14, 1966, y o u r p e r f e c t
i n f o r m a t i o n system tells y o u t h a t t h e next day, W a l
t D i s n e y w i l l die. Say y o u have
$50,000 to invest; y o u c a n either b u y D i s n e y stock or y
o u can s h o r t i t (an i n v e s t m e n t
t e c h n i q u e t h a t w i l l net y o u a p o s i t i v e r e t u r n i
f the stock value decreases). G i v e n y o u r
perfect i n f o r m a t i o n system, h o w do y o u invest?
Before y o u read o n , t h i n k a b o u t this q u e s t i o n . I f
Walt Disney is g o i n g to die the
next day, w i l l the stock go u p or down? M o s t students
assume t h a t the stock w i l l go
d o w n , so they s h o r t i t , o n the t h e o r y that the loss of
the f o u n d e r w i l l m e a n a d r a m a t i c
d r o p i n the share price.
I n fact, t h e n e x t day, the v a l u e of D i s n e y stock i n c r
e a s e d s u b s t a n t i a l l y . Why?
The m a r k e t v i e w e d W a l t D i s n e y as an artist; once

he d i e d , he w o u l d n o l o n g e r be
able to create m o r e art. T h u s , the value of the e x i s t i n g
art w o u l d increase because
o f scarcity, a n d t h e v a l u e o f t h e c o r p o r a t i o n t h a
t o w n e d t h a t a r t w o u l d increase
as w e l l .
Here's the p o i n t : Even i f y o u have the perfect i n f o r m a
t i o n system, i f y o u do n o t
k n o w w h a t to do w i t h the data that i t produces, y o u are
w a s t i n g y o u r t i m e and money.
The quality of your thinking is a large p a r t of the q u a l i t y
of the i n f o r m a t i o n system.
S u b s t a n t i a l c o g n i t i v e research has s h o w n t h a t a
l t h o u g h y o u c a n n o t increase y o u r
basic I Q , y o u c a n d r a m a t i c a l l y increase t h e q u a h
t y of y o u r t h i n k i n g . You c a n n o t
change the c o m p u t e r i n y o u r b r a i n , so to speak, b u t
y o u can change the w a y y o u have
p r o g r a m m e d your b r a i n to w o r k .
High-Tech Versus Low-Tech Information Systems
I n f o r m a t i o n systems differ i n the a m o u n t of w o r k
that is m o v e d f r o m the h u m a n side
(people and procedures) to the computer side (hardware and
programs). For example,
consider two different versions of a customer support i n f o r m
a t i o n system: A system that
consists only of a file of email addresses and an email program
is a very low-tech system.
Only a small a m o u n t of w o r k has been moved from the h u
m a n side to the computer side.
Considerable h u m a n w o r k is required to determine w h e n
to send w h i c h emails to w h i c h
customers.

I n contrast, a c u s t o m e r s u p p o r t system t h a t keeps
track of the e q u i p m e n t t h a t
c u s t o m e r s have a n d t h e m a i n t e n a n c e schedules
for t h a t e q u i p m e n t a n d t h e n
a u t o m a t i c a l l y generates e m a i l r e m i n d e r s to
customers is a h i g h e r - t e c h system. This
s i m p l y means t h a t m o r e w o r k has been m o v e d f r o
m the h u m a n side to the c o m p u t e r
side. The c o m p u t e r is p r o v i d i n g more services o n
behalf of the h u m a n s .
O f t e n , w h e n c o n s i d e r i n g d i f f e r e n t i n f o r m a
t i o n systems a l t e r n a t i v e s , i t w i l l be
h e l p f u l to consider the l o w - t e c h versus h i g h - t e c h
alternatives i n l i g h t of the a m o u n t of
w o r k that is b e i n g m o v e d f r o m people to computers.
We discuss thinking skills in
an MIS book, because
improving your thinking
improves the quality of every
information system that you
use. The Guide on pages
20-21 presents ideas from
cognitive science and applies
them to business situations.
' r, ' ' f New
The f i v e - c o m p o n e n t f r a m e w o r k can also be used
w h e n assessing the scope of n e w
systems. W h e n i n the f u t u r e some v e n d o r pitches the
need for a n e w t e c h n o l o g y to
y o u , use the five c o m p o n e n t s to assess h o w b i g of a n
i n v e s t m e n t that n e w technology

Q4 Why Is the Difference Between Information Technology and
Information Systems Important? 13
represents. W h a t n e w h a r d w a r e w i l l y o u need? W h
a t p r o g r a m s w i l l y o u need t o
license? W h a t databases a n d o t h e r data m u s t y o u
create? W h a t procedures w i l l need
t o be d e v e l o p e d for b o t h use a n d a d m i n i s t r a t i o
n o f t h e i n f o r m a t i o n system? A n d ,
f i n a l l y , w h a t w i l l be t h e i m p a c t o f the n e w t e c
h n o l o g y o n people? W h i c h j o b s w i l l
change? W h o w i l l need training? H o w vwU the n e w t e c
h n o l o g y affect morale? W i l l y o u
need to hire n e w people? W i l l y o u need to reorganize?
Components Ordered b y DsffscuSty and Disruption
Finally, as y o u consider the five c o m p o n e n t s keep i n m
i n d that Figure 1-4 shows t h e m
i n order of ease of change a n d the a m o u n t of
organizational d i s r u p t i o n . It is a s i m p l e
m a t t e r to order a d d i t i o n a l hardware. O b t a i n i n g or
d e v e l o p i n g n e w programs is m o r e
d i f f i c u l t . Creating n e w databases or c h a n g i n g the
structure of existing databases is s t i l l
m o r e d i f f i c u l t . C h a n g i n g procedures, r e q u i r i n
g people to w o r k i n n e w ways, is even
m o r e d i f f i c u l t . Finally, c h a n g i n g p e r s o n n e l r
e s p o n s i b i l i t i e s a n d r e p o r t i n g r e l a t i o n -
ships and h i r i n g a n d t e r m i n a t i n g employees are b o t
h very d i f f i c u l t a n d very d i s r u p t i v e
to the o r g a n i z a t i o n .
The Ethics Guide in each
chapter of this book considers
the ethics of information

systems use. These guides
challenge you to think deeply
about ethical standards, and
they provide for some
interesting discussions with
classmates. The Ethics Guide
on pages 16-17 considers the
ethics of using data that is
not intended for you.
C : Why Is the Difference Between
Information Technology and Information
Systems Important?
I n f o r m a t i o n t e c h n o l o g y a n d i n f o r m a t i o n
systems are t w o closely related terms, b u t
t h e y are d i f f e r e n t . I n f o r m a t i o n technology (IT)
refers to t h e p r o d u c t s , m e t h o d s ,
i n v e n t i o n s , a n d standards t h a t are used for the
purpose of p r o d u c i n g i n f o r m a t i o n . I T
pertains t o the hardware, software, a n d data c o m p o n e n t s
. I n contrast, an information
system (IS) is a n assembly of hardware, software, data,
procedures, a n d people t h a t
produces i n f o r m a t i o n .
I n f o r m a t i o n t e c h n o l o g y drives t h e d e v e l o p m
e n t of n e w i n f o r m a t i o n systems.
Advances i n i n f o r m a t i o n t e c h n o l o g y have t a k e n
the o r g a n i z a t i o n s f r o m t h e days
of p u n c h e d cards to e-commerce a n d social m e d i a , a n
d such advances w i l l c o n t i n u e
to take the i n d u s t r y to the next stages and b e y o n d .
W h y does this difference m a t t e r to you? K n o w i n g the
difference b e t w e e n I T a n d IS
can help y o u avoid a c o m m o n mistake: You cannot b u y a

n IS.
You can b u y IT; y o u c a n b u y or lease h a r d w a r e , y o u
can license p r o g r a m s a n d
databases, a n d y o u can even o b t a i n predesigned
procedures. U l t i m a t e l y , however, i t is
y o u r people w h o execute those procedures to e m p l o y t h
a t n e w IT.
For any n e w system, y o u w i l l always have t r a i n i n g
tasks ( a n d costs), y o u v r i l l
always have t h e need t o o v e r c o m e employees' resistance t
o change, a n d y o u
w i l l always need t o m a n a g e the employees as t h e y u t i l
i z e t h e n e w s y s t e m . Hence,
y o u can b u y IT, b u t y o u cannot b u y IS.
C o n s i d e r a s i m p l e e x a m p l e . Suppose y o u r o r g a
n i z a t i o n decides t o d e v e l o p a
Facebook page. F a c e b o o k p r o v i d e s t h e h a r d w a r e
a n d p r o g r a m s , t h e database
s t r u c t u r e s , a n d s t a n d a r d p r o c e d u r e s . You, h
o w e v e r , p r o v i d e t h e d a t a t o fill y o u r
p o r t i o n o f t h e i r database, a n d y o u m u s t e x t e n d t
h e i r s t a n d a r d p r o c e d u r e s w i t h
y o u r o w n p r o c e d u r e s f o r k e e p i n g t h a t d a t a c
u r r e n t . T h o s e p r o c e d u r e s n e e d t o
p r o v i d e , f o r example, a means to review y o u r page's c o
n t e n t r e g u l a r l y a n d a m e a n s
t o r e m o v e c o n t e n t t h a t is j u d g e d i n a p p r o p r i
a t e . F u r t h e r m o r e , y o u n e e d t o t r a i n
e m p l o y e e s o n h o w t o f o l l o w t h o s e p r o c e d u r e
s a n d m a n a g e t h o s e e m p l o y e e s t o
ensure t h a t t h e y do.
M a n a g i n g y o u r o w n Facebook page is as s i m p l e a n

IS as exists. Larger, m o r e
c o m p r e h e n s i v e IS t h a t i n v o l v e many, even
dozens, of d e p a r t m e n t s a n d t h o u s a n d s
o f employees r e q u i r e considerable w o r k . A g a i n , y o u
can b u y IT, b u t y o u can never
b u y an IS!
Q5 What Is Information?
Based o n our earlier discussions, we can n o w define an i n f o
r m a t i o n system as an assembly
of hardware, software, data, procedures, and people that interact
to produce i n f o r m a t i o n .
The only t e r m left undefined i n that definition is information,
and we t u r n to i t next.
Definitions Vary
Information is one o f those f u n d a m e n t a l terms that we
use every day b u t t h a t t u r n s
o u t to be s u r p r i s i n g l y d i f f i c u l t to define. D e f i n
i n g i n f o r m a t i o n is like d e f i n i n g words
s u c h as alive a n d truth. We k n o w w h a t those w o r d s m
e a n , w e use t h e m w i t h each
other w i t h o u t c o n f u s i o n , b u t nonetheless, they are d
i f f i c u l t to define.
I n this text, we w i l l avoid the t e c h n i c a l issues of d e f i
n i n g i n f o r m a t i o n a n d w i l l use
c o m m o n , i n t u i t i v e d e f i n i t i o n s instead. Probably
the most c o m m o n d e f i n i t i o n is that
i n f o r m a t i o n is k n o w l e d g e d e r i v e d f r o m data,
whereas data is d e f i n e d as r e c o r d e d
facts or figures. Thus, the facts that employee James S m i t h
earns $17.50 per h o u r a n d
that M a r y Jones earns $25.00 per horn- are data. The

statement that the average h o u r l y
wage o f all the aerobics instructors is $22.37 per h o u r is
information. Average wage is
knowledge t h a t is d e r i v e d from the data of i n d i v i d u a
l wages.
A n o t h e r c o m m o n d e f i n i t i o n is that information is
data presented in a meaningful
context. The fact that Jeff Parks earns $10.00 per h o u r is
data.^ The statement that Jeff
Parks earns less t h a n h a l f t h e average h o u r l y wage o f t
h e aerobics i n s t r u c t o r s ,
however, is i n f o r m a t i o n . It is data presented i n a m e a
n i n g f u l context.
A n o t h e r d e f i n i t i o n of i n f o r m a t i o n t h a t y o u
w i l l hear is t h a t information is
processed data, or sometimes, information is data processed by
summing, ordering,
averaging, givuping, comparing, or other similar operations.
The f u n d a m e n t a l idea of
this d e f i n i t i o n is t h a t w e do s o m e t h i n g to data to
p r o d u c e i n f o r m a t i o n .
There is yet a f o u r t h d e f i n i t i o n of i n f o r m a t i o n ,
w h i c h is presented i n the Guide o n
page 20. There, i n f o r m a t i o n is d e f i n e d as a
difference that makes a difference.
For t h e p u r p o s e s of t h i s text, any o f these d e f i n i t i
o n s o f i n f o r m a t i o n w i l l do.
Choose the d e f i n i t i o n of i n f o r m a t i o n that makes
sense to y o u . The i m p o r t a n t p o i n t is
t h a t y o u d i s c r i m i n a t e between data and i n f o r m a t
i o n , You also m a y find t h a t d i f f e r e n t
d e f i n i t i o n s w o r k better i n different situations.

here U a f o r m a t i G o "
Suppose y o u create a g r a p h o f A m a z o n . c o m ' s stock
p r i c e a n d n e t i n c o m e over its
history, like that s h o w n i n Figure 1-5. Does that graph c o n
t a i n i n f o r m a t i o n ? Well, i f i t
shows a d i f f e r e n c e t h a t makes a d i f f e r e n c e or i f i
t presents d a t a i n a m e a n i n g f u l
context, t h e n i t fits t w o of the d e f i n i t i o n s of i n f o r
m a t i o n , a n d it's t e m p t i n g to say t h a t
the g r a p h contains i n f o r m a t i o n .
Figure i - 5
Amazon.com Stock Price
and Net Income
Chang, .Eml«cfCtiort>
D t t t E v M
Actually the word data is plural; to be correct we should use the
singular form datum and say, "The
fact that Jeff Parks earns $10 per hour is a datum." The word
datum however, sounds pedantic and
fussy, and we will avoid it in this text.
Q6 What Are Necessary Data Characteristics? 15
However, show that graph to your family dog. Does your dog
find i n f o r m a t i o n i n that
graph? Well, n o t h i n g about Amazon.com, anyway. The dog
m i g h t learn w h a t y o u had for
l u n c h , b u t i t won't o b t a i n any i n f o r m a t i o n about
Amazon.com's stock price over t i m e .

Reflect o n t h i s e x p e r i m e n t a n d y o u w i l l realize t h
a t t h e g r a p h is n o t , itself,
i n f o r m a t i o n . The g r a p h is data t h a t y o u and o t h e
r h u m a n s perceive, and f r o m t h a t
p e r c e p t i o n y o u conceive i n f o r m a t i o n . I n short, i
f it's o n a piece of paper or o n a d i g i t a l
screen, it's data. I f it's i n the m i n d of a h u m a n , it's i n f o
r m a t i o n .
Why, you're asking yourself, do I care? Well, for one, i t f u r t
h e r explains w h y y o u , as
a h u m a n , are the most i m p o r t a n t p a r t of any i n f o r
m a t i o n system y o u use. The q u a l i t y
of your t h i n k i n g , of y o u r a b i l i t y to conceive i n f o r
m a t i o n f r o m data, is d e t e r m i n e d b y
y o u r cognitive skills. The data is the data, the i n f o r m a t i
o n y o u conceive f r o m i t is the
value that y o u add to the i n f o r m a t i o n system.
Furthermore, as the Guide o n page 20 explores, people have
different perceptions
and points of view. Not surprisingly, then, they w i l l conceive
different i n f o r m a t i o n f r o m
the same data. You cannot say to someone, "Look, it's right
there i n f r o n t of y o u , i n the
data," because it's n o t r i g h t there i n the data. Rather, it's i n
y o u r head, and your j o b is
to explain w h a t y o u have conceived so that others can
understand i t .
Finally, once y o u understand this, y o u ' l l understand that all
kinds of c o m m o n sen-
tences make no sense. " I sent y o u that i n f o r m a t i o n , "
cannot be true. " I sent y o u the data,
from w h i c h y o u conceived the i n f o r m a t i o n , " is the

most we can say D u r i n g your business
career, this observation w i l l save y o u i m t o l d frustration i
f y o u remember and apply i t .
What Are Necessary Data
Characteristics?
You have j u s t l e a r n e d t h a t h u m a n s conceive i n f o r
m a t i o n f r o m data. As stated, t h e
quaUty of the i n f o r m a t i o n that y o u can create depends, i
n part, o n your t h i n k i n g skills.
I t also, depends, however, o n the q u a l i t y o f t h e data that
y o u are g i v e n . Figure 1-6
summarizes c r i t i c a l data characteristics.
First, g o o d i n f o r m a t i o n is conceived f r o m accurate,
correct, a n d complete data, and i t
has been processed correctly as expected. Accuracy is crucial;
business professionals
m u s t be able to rely o n the results of t h e i r i n f o r m a t i
o n systems. The IS f u n c t i o n can
d e v e l o p a b a d r e p u t a t i o n i n the o r g a n i z a t i o n
i f a system is k n o w n to p r o d u c e
inaccurate data. I n such a case, the i n f o r m a t i o n system
becomes a waste of t i m e a n d
m o n e y as users develop w o r k - a r o u n d s to avoid the
inaccurate data.
A c o r o l l a r y to t h i s discussion is t h a t y o u , a f u t u r
e user o f i n f o r m a t i o n systems,
o u g h t n o t t o r e l y o n data j u s t because i t appears i n t
h e c o n t e x t o f a Web page,
a w e l l - f o r m a t t e d report, or a fancy query. It is
sometimes h a r d to be skeptical of data
delivered w i t h b e a u t i f u l , active graphics. Do n o t be m
i s l e d . W h e n y o u b e g i n t o use a
n e w i n f o r m a t i o n system, be skeptical. Cross-check the

data y o u are receiving. A f t e r
weeks or m o n t h s of using a system, y o u m a y relax. Begin,
however, w i t h skepticism.
Again, y o u c a n n o t conceive accurate i n f o r m a t i o n f r
o m inaccurate data.
Data Characteristics Required
for Good Information
• Accurate
• Timely
• Relevant
- T o context
- T o subject
• Just sufficient
• Worth its cost
HM 475 Hospitality Decision Analysis
Attn:
Directors of Sales, Baderman Island Resort
From:
Kelsey Visitor’s Bureau
NAME OF ORGANIZATION REQUESTING BID
Contact Name: Moray Enterprises
MEETING PROFILE
Attendance: 800
Peak Night Rooms: 3

Total Room Nights: 5
GUEST PROFILE
Primary Guest
Age: average age is 35
Gender: Male/Female
Race: Varies
Attendance:
Traveling Partners
Spouse: Majority will be traveiling with spouse
Children: Approximately 100 inviduals will be attending the
conference with their children—estimated that 150 children will
be attending
Other Important Information Notifications:
Some of the individuals attending the conference will be from
foreign countries
SLEEPING ROOM FORECAST
SUN
MON
TUE
WED
THURS
FRI
SAT
Total Rooms Requested:
700 700 700 700 700
Percent Peak Room Nights:
MEETING ROOM FORECAST
SUN

MON
TUE
WED
THURS
FRI
SAT
Total Meeting Rooms Requested:
28 28 28 28 28
SALES LEAD
Page 1hm475r3

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