CH1.pptx

Experiencing MIS
Tenth Edition
Chapter 1
The Importance of MIS
Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved

“But today, they’re not enough.”
• Amanda Lacks Skills eHermes Needs:
1. Abstract Reasoning Skills.
2. Systems Thinking Skills.
3. Collaboration Skills.
4. Experimentation Skills.

What Do Employers Want?
• Self starter, Don’t wait to be told what to do.
• Team worker
– Develops ideas with others.
– Ask questions.
– Pulls more than their own weight.

Study Questions
1-1 Why is Introduction to MIS the most important class in
the business school?
1-2 How will MIS affect me?
1-3 Why are MIS–related jobs in high demand?
1-4 What is MIS?
1-5 What is information?
1-6 What data characteristics are necessary for quality
information?

The Digital Revolution
1.1 Why is Introduction to MIS the most important class in the business
school?
• Technology fundamentally changing business.
• Information Age
– Production, distribution, control of information primary
economic drivers.
• Digital Revolution
– From mechanical/analog devices to digital devices.

Understanding the Forces Pushing
the Evolution of New Digital Devices
school?
• Bell’s Law
– New class of computers establishes a new industry
each decade.
▪ New platforms, programming environments,
industries, networks, and information systems.
• Understand how next digital evolution will affect
businesses.
• What an industry does and how does it will change.

Computer Price/Performance Ratio
Historical Trend
school?
Figure 1.1 Computer Price/Performance Ratio Decreases

Metcalfe’s Law
school?
• Network value equal to
square of number of
users connected to it.
2
(V =U )
– Google, Amazon,
eBay exist due to
large numbers of
Internet users.
Figure 1.2 Increasing Value of
Networks

Fundamental Forces Changing
Technology
school?
Figure 1.3 Fundamental Forces Changing Technology
Law Meaning Implications
Moore’s Law The number of transistors per square inch
on an integrated chip doubles every 18
months.
Computers are getting exponentially faster. The
cost of data processing is approaching zero.
Metcalfe’s Law The value of a network is equal to the
square of the number of users connected
to it.
More digital devices are connected together. The
value of digital and social networks is increasing
exponentially.
Nielsen’s Law Network connection speeds for highend
users will increase by 50 percent per year.
Network speed is increasing. Higher speeds
enable new products, platforms, and companies.
Kryder’s Law The storage density on magnetic disks is
increasing at an exponential rate.
Storage capacity is increasing exponentially. The
cost of storing data is approaching zero

Price of Storage Capacity per GB
school?
Figure 1.4 Price of Storage Capacity per GB

This is the Most Important Class in
the School of Business Because You
Will Learn
1.1 Why is Introduction to M I S the most important class in the business
school?
• How technology fundamentally changes businesses.
• Why executives try to find ways to use new technology to
create a sustainable competitive advantage.
• Assess, evaluate, apply emerging information technology
to business.
• Help you attain knowledge needed by future business
professionals.

Technological Change is Accelerating
1.2 How will MIS affect me?
• Bell’s Law
– Today’s highly successful business could be bankrupt
quickly because technology changed and it didn’t.
• Example: Blockbuster
– In 2004, Blockbuster had $5.9B in revenues
– In 2010, Blockbuster filed for bankruptcy
– High-speed network connections and streaming video
changed the competitive landscape

How Can I Attain Job Security?
• Moore’s Law, Metcalfe’s Law, and Kryder’s Law
– Driving data processing, storage, communications
costs to essentially zero.
• Any routine skill can, and will, be outsourced to lowest
bidder.

What Skills Will be Marketable during
Your Career?
• Rapid technological change and increased international
competition:
– Requires skills and ability to adapt.
– Favors people with strong non-routine cognitive skills.
– Message: Develop strong non-routine cognitive
skills.

What is a Marketable Skill?
Figure 1.5 Examples of Critical Skills for Nonroutine
Cognition
Skill Example Amanda’s Problem at eHermes
Abstract Reasoning Construct a model or representation. Hesitancy and uncertainty when
conceptualizing a method for using
AI and machine learning.
Systems Thinking Model system components and show
how components’ inputs and outputs
relate to one another.
Inability to model eHermes
operational needs.
Collaboration Develop ideas and plans with others.
Provide and receive critical feedback.
Unwilling to work with others on
work-in-progress.
Ability to Experiment Create and test promising new
alternatives, consistent with available
resources.
Fear of failure prohibited discussion
of new ideas.

How Can Intro to MIS Help You Learn
Non-Routine Skills? (1 of 4)
• Abstract Reasoning
– Ability to make and manipulate models.
– Learn to use and construct abstract models.
▪ Ch. 1: Five components of an IS model.
▪ Ch. 5: How to create data models.
▪ Ch. 12 and Ch. Ext. 18: How to make process
models.

• Systems Thinking
– Ability to model system components, connect inputs
and outputs among components to reflect structure and
dynamics.
– Ability to discuss, illustrate, critique systems; compare
alternative systems; apply different systems to different
situations.

How Can Intro to M I S Help You
Learn Non-Routine Skills? (3 of 4)
• Collaboration
– People working together to achieve a common goal,
result, or work product.
– Chapter 7 and Chapter Extension10 discuss
collaboration skills and illustrate several collaboration
information systems.

• Ability to Experiment
– Make reasoned analysis of an opportunity; develop
and evaluate 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?”
• Fear of failure paralyzes many good people and ideas

Jobs
1.3 Why are MIS-related jobs in high demand?
• 74 percent of CEOs plan to use artificial intelligence (AI) to
automate tasks to a large or very large extent over the
next 3 years.
• Those same CEOs believe just 26 percent of their workers
are prepared to collaborate with their AI coworkers.
• Just 3 percent of CEOs plan to increase investments
toward training and reskilling employees to prepare them
for these new tech-centric jobs.
• Understanding technology and having a willingness to
learn new tech skills will be increasingly important for
future job security.

Median Wages and Job Growth by
Sector (1 of 2)
Figure 1.6 Median Wage and Percent Job Growth by Sector
Occupations 2019 Median Wage 2020 Median Wage 2019–29 Percent Job
Growth
Management $105,660 $109,760 4.7
Computer and mathematical $ 88,340 $ 91,350 12.1
Legal $ 81,820 $ 84,910 5.1
Architecture and engineering $ 81,440 $ 83,160 2.7
Business and financial operations $ 69,820 $ 72,250 5.3
Healthcare practitioners and technical $ 68,190 $ 69,870 9.1
Life, physical, and social science $ 68,160 $ 69,760 4.7
Arts, design, entertainment, sports, and media $ 51,150 $ 53,150 2.5
Education, training, and library $ 50,790 $ 52,380 4.5
Installation, maintenance, and repair $ 46,630 $ 48,750 2.8
Construction and extraction $ 47,430 $ 48,610 4.0
Community and social service $ 46,090 $ 47,520 12.5
Protective service $ 41,580 $ 43,710 2.6

Median Wages and Job Growth by
Sector (2 of 2)
Occupations 2019 Median
Wage
2020 Median
Wage
2019–29 Percent
Job Growth
All occupations $ 39,810 $ 41,950 3.7
Office and administrative support $ 37,580 $ 38,720 Minus 4.7
Production $ 36,000 $ 37,440 Minus 4.5
Transportation and material moving $ 32,440 $ 34,080 3.4
Sales and related $ 29,630 $ 31,500 Minus 2.0
Healthcare support $ 28,470 $ 29,960 22.6
Building and grounds cleaning and maintenance $ 28,330 $ 29,940 4.9
Farming, fishing, and forestry $ 27,180 $ 29,670 Minus 0.1
Personal care and service $ 26,220 $ 28,120 7.7
Food preparation and serving related $ 24,220 $ 25,500 7.3
4.7
4.5
2.0
0.1
SOURCE: Employment Projections program, U.S. Bureau of Labor Statistics

BLS Occupational Outlook 2019-2029
(1 of 2)
Figure 1.7 Bureau of Labor Statistics Occupational Outlook
2019–2029
Blank
2018
Median Pay
2019 Median
Pay
2020 Median
Pay
Job Growth
(%) 2019–29
Job Growth
(N) 2019–29
Business Managers
Blank Blank Blank Blank Blank
Marketing Managers $132,620 $135,900 $141,490 6% 18,800
Information Systems Managers $142,530 $146,360 $151,150 10% 48,100
Financial Managers $127,990 $129,890 $134,180 15% 108,100
Human Resources Managers $113,300 $116,720 $121,220 6% 10,400
Sales Managers $124,220 $126,640 $132,290 4% 15,400
Computer and Information
Technology
Computer Network Architects $109,020 $112,690 $116,780 5% 8,000
Computer Systems Analysts $ 88,740 $ 90,920 $ 93,730 7% 46,600
Database Administrators $ 90,070 $ 93,750 $ 98,860 10% 12,800
Information Security Analysts $ 98,350 $ 99,730 $103,590 31% 40,900

BLS Occupational Outlook 2019-2029
(2 of 2)
Blank
2018
Median Pay
2019 Median
Pay
2020 Median
Pay
Job Growth
(%) 2019–29
Job Growth
(N) 2019–29
Network and Systems Admin. $ 82,050 $ 83,510 $ 84,810 4% 16,000
Software Developers $105,590 $105,590 $110,140 22% 316,000
Web Developers $ 69,430 $ 73,760 $ 77,200 8% 14,000
Business Occupations
Accountants and Auditors $ 70,500 $ 71,550 $ 73,560 4% 61,700
Financial Analysts $ 85,660 $ 85,660 $ 83,660 5% 26,800
Management Analysts $ 83,610 $ 85,260 $ 87,660 11% 93,800
Market Research Analysts $ 63,120 $ 63,790 $ 65,810 18% 130,300
Logisticians $ 74,600 $ 74,750 $ 76,270 4% 8,200
Human Resources Specialists $ 60,880 $ 61,920 $ 63,490 7% 46,900
SOURCE: Bureau of Labor Statistics, “Computer Systems Analysts,” Occupational Outlook Handbook, accessed April 18,
2021, www.bls.gov/ooh.

Bottom Line of MIS Course
Most important course in business school because:
1. Gives background needed to assess, evaluate, and apply
emerging information systems technology to business.
2. Gives marketable skills by helping you learn abstraction,
systems thinking, collaboration, and experimentation.
3. Makes you aware of well-paying, high demand MIS-
related jobs.

Components of an Information
System?
1.4 What is MIS?
Figure 1.8 Five Components of an Information System
Information systems use these five components to produce
information

Difference between IT and IS
1.4 What is MIS?
• Information technology (IT)
1. Products
2. Methods
3. Inventions
4. Standards
– IT drives development of new IS.
– IT components = Hardware +
Software + Data
– IS = IT + Procedures + People

Management Information Systems (1 of 2)
1.4 What is MIS?
• Key elements
– Management and use
– Information systems
– Strategies
• Goal of MIS:
– Managing IS to achieve business strategies.

Management Information Systems (2 of 2)
1.4 What is MIS?
• Management and use to:
– Develop, maintain, adapt by:
▪ Creating an information system that meets your
needs, take an active role in system’s development.
Why?
▪ Business professionals using cognitive skills to
understand business needs and requirements.

Achieving Strategies
1.4 What is MIS?
• 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?”

Management and Use of Information
Systems
1.4 What is MIS?
• Business professionals need to:
– Take active role to ensure systems meet their needs.
– Understand how IS constructed.
– Consider users’ needs during development.
– Learn how to use IS.
– Remember ancillary requirements (security, backups).

Defining Information
1.5 What is information?
Definitions vary:
1. Knowledge derived from data.
2. Data presented in a meaningful context.
3. Processed data, or data processed by summing,
ordering, averaging, grouping, comparing, or similar
operations.
4. “A difference that makes a difference.”

Where is Information?
• Graph is not, itself, information
• Graph is data that you, and others, use to conceive
information
• Ability to conceive information from data determined by
cognitive skills
• People perceive different information from same data

Amazon.com stock price and net
income
Figure 1.9 Amazon Stock Price and Net Income
SOURCE: Based on data from www.nasdaq.com/symbol/amzn/historical

Data Characteristics Needed for
Quality Information
1.6 What data characteristics are necessary for quality information?
• Accurate
• Timely
• Relevant
– To context
– To subject
• Just barely sufficient
• Worth its cost

How Does the Knowledge in This
Chapter Help You?
• Realize future belongs to those who creatively envision
new applications of information systems and technology
• Learn Reich’s four key skills
• Learn IS components
• Understand every business professional needs to take an
active role in new information systems development
• Learn definitions of information
• Understand the data characteristics of quality information

IoTrends
So What?
• The Internet and the World Wide Web have enabled
innovation and changed our lives.
• Web 1.0 era (1990s and early 2000s) characterized by
simple websites and content consumption by users.
• Web 2.0 era (early 2000s through today) characterized by
widespread access, rich content, collaboration tools, and
ability of non-technical users to create content.
• The Internet of Things (IoT) has had and will have a huge
impact on many industries and our lives

Passwords and Password Etiquette (1 of 2)
Security Guide: Passwords and Password Etiquette
• Passwords play critical role in controlling access to
systems and data
• Creating a strong password is an essential security
measure
1. Have at least 12 characters; 14 is even better
2. Not contain your username, real name, or company
name
3. Not contain a complete dictionary word in any
language

Passwords and Password Etiquette (2 of 2)
Security Guide: Passwords and Password Etiquette
4. Be different from previous passwords you have used
5. Contain both upper- and lowercase letters, numbers,
and special characters (such as !@#$% ^& * ()_ {} |
 
[] : " ' ?,.?)

• Protect your password with proper behavior. Human
behavior is a weak link in system security

Five-Component Careers
Career Guide

Ethics and Professional Responsibility
(1 of 3)
Ethics Guide
Figures 1.3 Measuring Growth of Units Sold using Different
Axis Values

(2 of 3)
Ethics Guide: Ethics and Professional Responsibility
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?

(3 of 3)
• Necessity to act in accordance with categorical imperative.
– Perfect duty—behavior that must always be met.
– Imperfect duty—a praiseworthy action, but not
required.
▪ Giving to charity, developing your business skills and
abilities.

Imperfect Duty of Business
Professionals
• Imperfect duties
– Cultivating your talent is a professional responsibility.
– Obtaining skills necessary to accomplish your job.
– Continuing to develop business skills and abilities
throughout your career.

Active Review
1-1 Why is Introduction to MIS the most important class in
the business school?
1-2 How will MIS affect me?
1-3 Why are MIS-related jobs in high demand?
1-4 What is MIS?
1-5 What is information?
1-6 What data characteristics are necessary for quality
information?

Pluralsight
Case Study 1
• Who is Pluralsight and what do they do?
– Go online to pluralsight.com and search for a course
you might be interested in taking:
▪ What is attractive to you about online training?
– What advice would you give executives at Pluralsight if
they wanted to grow their business?
▪ How could they increase their revenues?
– Why would corporate clients be interested in online
technology training for their employees?

Pluralsight (con’t)
Case Study 1
• What is the technology skills gap and why does it exist?
– How might a traditional university benefit from a partnership with
Pluralsight?
– Why might some universities see such a partnership as a threat?
• Suppose you were considering buying stock in Pluralsight.
What types of threats might Pluralsight face in the future?

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