THE INFORMATION AGE IN WHICH YOU LIVE

1
CHAPTER 1

• THE INFORMATION AGE IN WHICH YOU LIVE
• Changing the Face of Business

2
Case Study

• Would You Paint Your House with Yogurt?
• Stonyfield Farms
• Gary Hirshberg CEO losses of new
  product idea
• Christine Ahearn consumer-relation
  coordinator note
• Cocci Computer Inc. system
• today all customers information is kept
  in a database
• retrieve information in any orderby
  flavor,by type,by region, even by stores
• Information is a driving force defining the
  success of creating products and services that
  people want.

3
We Are in the Information Age.A Time When...
Introduction
1-2

• Knowledge is power
• using information to gain a competitive
  advantage two attitudes..
• what you dont know dont hurt you
• consider your major
• Knowledge workers outnumber all other workers by
  a 4 to 1 margin

A KNOWLEDGE WORKER works with and produces
information as a product. As a knowledge worker,
how do you work with and produce information?
4
YOUR FOCUS IN THIS CHAPTER
Introduction
1-3

• Management Information Systems The MIS
  Challenge
• Factors Shaping Business Today
• The Role of IT in the Information Age
• Information as a New Business Resource
• Your Role as a Knowledge Worker

5
MANAGEMENT INFORMATION SYSTEMS (MIS)...
Introduction
1-4

• deals with the planning for, development,
  management, and use of information technology
  tools to help people perform all tasks related to
  information processing and management(work with
  information)

6
MIS Deals with Three Important Organizational
Resources
Introduction
1-5

• 1. Information
• 2. Information technology
• 3. People
• which is the most important component?
• As a knowledge worker ,your responsibility?

Can you find those 3 resources for the
organizations in Photo Essay 1-1 on pages 6-7?
7
THE MANAGEMENT INFORMATION SYSTEMS CHALLENGE
The MIS Challenge
1-6

• What businesses do
• Customer moment of value
• The role of information technology

All businesses must strive to meet The MIS
Challenge. The complete MIS Challenge
see Figure1.1
8
WHAT DO BUSINESSES DO?
The MIS Challenge
1-7

• They service their customers.
• (the goal of business)
• Never forget the customer is number one.
• Case Corp. Manufacturer of farm equipment
• 1991--1992 operation losses --900million why?
  CEO
• Backhoe new model test longtime customer
  Larry
• a year later surprised
  customer-oriented
• result net income 165 million 1994
• conclusion servicing customers is the primary
  mission, and the only way to do is to listen to
  what the customers have to say.

CO out of business in business
9
CUSTOMER MOMENT OF VALUE is providing service...
The MIS Challenge
1-8

• 1.When the customer wants it (time)
• 2.Where the customer wants it (location)
• 3.How the customer wants it (form), and
• 4.Guaranteed to the customer (perfect delivery)
• the guarantee of perfect delivery comes in many
  forms
• (location/time/form perfect delivery)

CO (Perfect service)
10

• Cases
• Continental airline ---Just get them there on
  time
• 1995 hope to turn a profit
• 1994 ranked dead last in on-time performance
• in March and April 1995 ranked No1---gtwant to
  attract business flyers who pay premium ticket
  price to fly somewhere for important business
  meeting
• Ford--- Location,Location,Location
• At the end of 1995 Ford 1 /40 cars in Asia
  Toyota 1/4
• the best way to sell them in Asia is to make
  them there
• 1994/1995 large investment in plants
• Car dealer---Terrific bargains come in different
  form price for automobile up 18 of 1990
• the solution is to provide two incentives
• cash-back rebates
• lease option 32

Getting the right airline information when you
want it Antoine Ioffa
Team work p8
11
THE ROLE OF INFORMATION TECHNOLOGY
The MIS Challenge
1-9

• Perfect service at ..depend on three things
• Information--gtknowledge
• Information technology (IT) is a set of tools
  that can help provide the right people with the
  right information at the right time.
• IT is not enough
• the way that they do business is important
• use IT system to support

Using IT to share 100 million pages of
information
12

• Therefore
• the challenge facing any business/MIS
• is------
• to plan for ,develop,manage,and use
  of its three most important resources to provide
  perfect service at the customers moment of
  value.
• Comprise the intellectual and structural
  framework for our text.

13
HOW THIS BOOK ADDRESSES MIS THE MIS CHALLENGE
The MIS Challenge
1-10

• The Information Resource
• Chapters 1 - 3
• The Information Technology Resource
• Chapters 4 - 7
• The People Resource
• Chapters 8 - 10

see Figure1.2
14
FACTORS SHAPING BUSINESS TODAY
Factors Shaping Business
1-11

• Globalization
• Competition
• Information as a Key Resource
• The Virtual Workplace and Telecommuting
• Electronic Commerce
• Knowledge Worker Computing
• external forces and internal results
• is it important for you to understand these
  factors?

Figure 1.3
15
GLOBALIZATION
Factors Shaping Business
1-12

• Few businesses today are wholly domestic.
• Business today is a global business
• There are 260 million consumers in the U.S.
• There are 5 billion consumers world-wide.

See Figure 1.4
A result of many factorsprivatization,deregulatio
n,transportation and telecommunication, the
emergence of transnational firms and trade
blocs A TRANSNATIONAL FIRM is a firm that
produces and sells products and services in
countries all over the world.
CO
16
COMPETITION
Factors Shaping Business
1-13

• Its everywhere. Why?
• Globalization has increased competition. The big
  3---261995 1,2,6
• IT(Equalizer) helps small firms compete against
  larger ones. SizeltCreativity innovation
• Intercontinental Florist Inc. William
  Marquez bought 1993
• 144,000---gt11million1995 fax with
  automated dialing and callback reach 25,000
  detailed log
• Competition is good for consumers.

17
INFORMATION AS A KEY RESOURCE
Factors Shaping Business
1-14

• We are in the information age.
• Knowledge is power.
• You must know your competition.
• You must know your customers.
• We operate in a wants-driven economy. So, you
  have to know what people want.
• Tennis shoes with rear lights ,dog
  bakeriesdramatic shift in thinking , marketing,
  research and development for business----gtcapture
  and record info what people wants.

Industry perspective p14
18
THE VIRTUAL WORKPLACE AND TELECOMMUTING
Factors Shaping Business
1-15
Restructuring . Many ways... Rethink the way it
does business and how it performs processes Among
the various ways to restructure, many
organizations are choosing to create a virtual
workplace and/or have their employees
telecommute. Both of these concepts are very
similar.
19
Factors Shaping Business
1-16

• VIRTUAL WORKPLACE - a technology-enabled
  workplace. No walls or boundaries. Work
  anytime, anyplace, linked to other people and
  information.
• TELECOMMUTING - the use of communications
  technology to work in a place other than a
  central location. A person who works via
  telecommuting is called a TELECOMMUTER.
• Identical ---communication technology

CO
20
SOME TELECOMMUTING STATISTICS
Factors Shaping Business
1-17

• Over 15million people in the U.S. telecommute.
• That number is expected to grow by 20 for next
  several years.
• many industry is planning to increase their use
  of telecommuting .

See Figure 1.5 page 15
Would you rather telecommute or drive through
traffic everyday to work?
21
ELECTRONIC COMMERCE
Factors Shaping Business
1-18
A modern methodology that addresses the use of
information technology as an essential enabler of
business.
EXTERNAL ELECTRONIC COMMERCE - the use of IT to
support how a business interacts with the
marketplace. INTERNAL ELECTRONIC COMMERCE - the
use of IT to support internal processes,
functions, and operations.
22
Electronic Commerce Includes
Factors Shaping Business
1-19

• Transactions with customer over the Internet.
• Transactions with other organizations through
  EDI.
• Gathering customer and competitor information
  (competitive scanning).
• Distributing information electronically.
• New business horizon
• not only a business issue the future success
  depend on.. Outsourcing alliances

CO
23
KNOWLEDGE WORKER COMPUTING
Factors Shaping Business
1-20
Places technology, technology power, software,
information, and technology knowledge in the
hands of those who need it - knowledge
workers.---- Note requires you to take an active
role in developing systems k w computing
involves
Technology knowledge is most important. To
participate in knowledge worker computing, you
must learn how to use technology. Your success
depend on your ability to use k w computing
concepts
24
INFORMATION TECHNOLOGY AND ITS ROLE IN THE
INFORMATION AGE
Information Technology
1-21
INFORMATION TECHNOLOGY is any computer-based tool
that people use to work with information and
support the information and information-processing
needs of an organization. Involves
screen,printer. Widespread use for accounting
transaction
25
Businesses Use Information Technology in 3 Ways
Information Technology
1-22

• 1. To support information-processing tasks.
• First and foremost Computing,printing
  payroll,creating presentation,web site..
• 2. As an enabler of innovation.
• 3. As a collapser of time and space.

26
TO SUPPORT INFORMATION-PROCESSING TASKS
Information Technology
1-23

• 1. CAPTURINobG information - at its point of
  origin.
• 2. CONVEYING information - in its most useful
  form.
• 3. CREATING information - to obtain new
• information.
• 4. CRADLING information - for use at a later
  time.
• 5. COMMUNICATING information - to other people
• or another location.
• Create a system that handle all the tasks,
  for any business function involves the 5 tasks

See table 1.1
27
AS AN ENABLER OF INNOVATION
Information Technology
1-24

• IT is not innovation all by itself.
• IT, however, can enable innovation.
• FedEx used IT to build customer-oriented tracking
  software.
• The first Package freight company to offer
  package delivery software package pickup
• UPS ,RPS ---two choices similar software
  risk to lost

Ski Aspen p19
What other examples of IT innovation can you
think of?
Project on your own
28
AS A COLLAPSER OF TIME AND SPACE
Information Technology
1-25

• A typical CD-ROM can hold 650 million characters
  of information. That
• 325,000 pages of text(2000 character/page), or
• 650 (500-sheet) reams of paper.
• In early 1997, the typical home computer was
  capable of performing 130 million instructions
  per second. How fast are they today?
• Provide tremendous advantage for
  business---gtreengineer 3flow

MCI and its 1 Trillion Bytes
29
INFORMATION AS A NEW BUSINESS RESOURCE
Information
1-26
Information is a key resource in The MIS
Challenge. But what is information? DATA - are
any raw facts or observations that describe a
particular phenomenon. INFORMATION - is simply
data that has a particular meaning within a
specific context. Info. may be data that has been
processed in some ways or presented in a more
meaningful fashion.
30
DIMENSIONS OF INFORMATION - DEFINING VALUE
Information
1-27
No value Relativenot pertinent old or
outdatedincorrectly calculated You can determine
the value of information by evaluating its
dimensions.

• TIME DIMENSION - the when aspect of
  information.
• CONTENT DIMENSION - the what aspect of
  information.
• FORM DIMENSION - the how aspect of information.

31
DIMENSIONS OF INFORMATION
Information
1-28

• TIME - when
• Timeliness
• Currency

• FORM - how
• Detail
• Presentation

• CONTENT- what
• Accuracy
• Relevance
• Completeness
• ltmost criticalgt

Its crucial to have the right info(content) when
you want it(time) and how you want it(form)
32
TIME - when

• Timeliness information when you need it
• Currencyinformation that is up to date
• Charging your information
• Richard Fairbank issuing credit cards isnt
  banking,but an information business.----collectin
  g information on 150 million customers and
  decision.
• Signet Corp receivables from less than 1
  billion to 8.9billion.
• Balance 5000 13--17 annual rates
• (5.9 interest 20 initiation fee
• 6.9 interest no initiation fee
• transfer other credit balances)

33
CONTENT- what

• Accuracy information free of errors
• Relevance information useful to what you are
  trying to do
• Completeness information that completely details
  what you want to know

34
FORM - how

• Detail information detailed to appropriate level
• information granularitythe issue of detail
• Presentationinformation that is provided in the
  most appropriate form--narrative,graphics,color,pr
  int,video,sound and so on
• can make you win or loss business deals today
• millions of web sites--gthundreds of languages?
• How to do for language-specific
  countries?---gtHas not slowed down the growth of
  the internet---translation software

The Language of the internet
Team work
35
YOUR ROLE AS A KNOWLEDGE WORKER
Knowledge Workers
1-29
To be successful today as a knowledge worker, you
need to understand

• The true nature of information (its dimensions).
• How to be an information-literate knowledge
  worker.
• Your ethical responsibilities of working with
  information.

36
AN INFORMATION-LITERATE KNOWLEDGE WORKER
Knowledge Workers
1-30

• can define what information is needed,
• knows how and where to obtain information,
• understands the meaning of information,
• can act appropriately,based on information ,to
  help the organizations to achieve the greatest
  advantage.

In all instances, he or she always uses
information according to legal and ethical
constructs.
37
As a Knowledge Worker, You Have 5 Charges
Knowledge Workers
1-31

• 1.Define what information you need.
• 2.Know how and where to obtain information.
• 3.Understand the meaning of information.
• 4.Act appropriately based on information.
• 5.Use information adhering to both legal and
  ethical constructs.

38
Knowledge Workers
1-32

• Charges 1-4 relate to how you use information
  for the benefit of your organization.
• ANYLYSE Diaper sales
• Charge1-2 related to the task
• Charge3-4 but also to your ability(levels
  of information literacy)
• Charge 5 relates to using information in a
  socially responsible way. A athletic coach
• This relates to ETHICS - sets of principles or
  standards that help guide behavior, actions, and
  choices.

See figure 1.7
39
Knowledge Workers
1-33

• Ethics are often different from laws.
• Laws require or prohibit some action on your
  part.
• Ethics are more of a matter of personal
  interpretation.
• What may be ethical to one person is not
  necessarily to another.
• As an information-literate knowledge worker, your
  actions with respect to using information should
  always be both legal and ethical.

See firgure1.8
Project on your own
See firgure1.9
40
TO SUMMARIZE
1-34

• We are indeed in the information age.
• All businesses must coordinate their use of IT,
  information, and people (The MIS Challenge).
• The many forces shaping business today include
• Globalization
• Competition
• Information as a key resource
• The virtual workplace and telecommuting
• Electronic commerce
• Knowledge worker computing.

41
TO SUMMARIZE
1-35

• Businesses are using information technology (IT)
  in three ways
• to support information-processing tasks
• as an enabler of innovation
• as a collapser of time and space
• Information is also a key resource in business
  today. The value of information can be defined
  according to its dimensions
• Time (when)
• Content (what)
• Form (how)

42
TO SUMMARIZE
1-36
Finally, people are the most important resource
in any organization. As an information-literate
knowledge worker, you have 5 charges 1.Define
what information you need 2.Know how and where to
obtain information 3.Understand the meaning of
information 4.Act appropriately based on
information 5.Use information legally and
ethically
43
MCI and its 1 Trillion Bytes

• Phone bill
• telephone company perhaps are with the largest
  databases
• using IT to sift through over 1 trillion bytes of
  info to create customized calling plans offer
  each individual customer discount calling plan
  instead of for groups of people.

44
Ski Aspen

• Aspen Skiing Co. Using IT in innovative ways
• make certain you ski when you are in Colorado
• set up four multimedia touch-sensitive
  kiosks---views and weather report
• by web site check current ski conditions, area
  shopping, dining place,cultural festivities
  ,local bank, ATM, reserve a room

45
Pizza Hut,Kentucky Fried Chicken and Taco Bell in
one database

• Database
• PepsiCo a large database finance info.
  (fast-food chains) Planner access to info. On
  3000 stores in 29 countries.
• Evaluate ever-changing wants and purchases of
  consumer market
• open a new Taco Bell site how to do?
• Info. ---gtbetter decision ---gtprovide

46
Getting the right airline information when you
want it P9

• Connect to airline Web site , get the right
  info?
• Antoine Toffa web-based service ----gt No
  
• selling points to claim on-time status
  ----gtfalse flight info
• connect to FAA www.thetrip.com for
  correct info
• the internet is definitely have a
  impact on customers moment of value. Assurance
  the info is correct (perfect delivery)

47
Using IT to share 100 million pages of
information

• Sharing knowledge
• store information on paper, hard?
• Westinghouse Savannah River Co. Manufacturer of
  nuclear weapons components
• 12000 employees share 100million pages daily
• new 20 million pages annually ---gtdocument
  management software
• problems transition to new systems
  department info
• workflow and business process