Using MIS 10th Edition Chapter The Importance of MIS Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-1 “But Today, They’re Not Enough.” • Jennifer Lacks Skills Falcon Security Needs: Abstract reasoning skills Systems Thinking Skills Collaboration Skills Experimentation Skills Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-2 What Do Employers Want? • Self starter, Don’t wait to be told what to • Team worker – Develops ideas with others – Asks questions – Pulls more than their own weight Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-3 Study Questions Q1-1 Why is Introduction to MIS the most important class in the business school? Q1-2 How will MIS affect me? Q1-3 What is MIS? Q1-4 How can you use the five-component model? Q1-5 What is information? Q1-6 What are necessary data characteristics? Q1-7 2027? Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-4 The Digital Revolution Q1-1 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 Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-5 Understanding the Forces Pushing the Evolution of New Digital Devices Q1-1 Why is Introduction to MIS the most important class in the business 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 it does it will change Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-6 Computer Price/Performance Ratio Historical Trend Q1-1 Why is Introduction to MIS the most important class in the business school? Figure 1-1 Computer Price / Performance Ratio Decreases Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-7 Metcalfe’s Law Q1-1 Why is Introduction to MIS the most important class in the business school? • Network value equal to square of number of users connected to it (V=U2) – Google, Amazon, eBay exist due to large numbers of Internet users Figure 1-2 Increasing Value of Networks Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-8 Fundamental Forces Changing Technology Q1-1 Why is Introduction to MIS the most important class in the business school? 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 being connected together The value of digital and social networks is increasing exponentially Nielsen’s Law Network connection speeds for high-end 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 Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-9 Price of Storage Capacity per GB Q1-1 Why is Introduction to MIS the most important class in the business school? Figure 1-4 Price of Storage Capacity per GB Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-10 Imperfect Duty of Business Professionals Ethics Guide: Ethics and Professional Responsibility • 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 Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-43 MIS in 2027 Q1-7 2027? • Most computers won’t look like computers • Smartphones – 1Gbps network connection, – Exabyte storage, – Teraflop+ processing power, – Connect to any electrical device, – Store/stream every song and movie ever made to any device, – Battery life over a month on a single charge Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-44 Technology in 2027 (cont’d) Q1-7 2027? • BYOD common • Comprehensive bio-monitoring devices at home, linked to health care systems • Widespread use of Google Glass or Microsoft’s HoloLens • More people work at home or wherever • Knowledge and use of business information systems will be more important, not less Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-45 Passwords and Password Etiquette Security Guide • 10+ characters • Does not contain your user name, real name, or company name • Does not contain a complete dictionary word in any language • Different from previous passwords used • Contains both upper- and lowercase letters, numbers, and special characters (such as ˜ ! @; # $ % ^; &; * ( ) _ +; – =; { } | [ ] \ : “ ; ’ ;? , /) Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-46 Passwords and Password Etiquette (cont’d) Security Guide • Never write down your password • Never ask someone for their password • Never give your password to someone • “do-si-do” move—move away so another person can enter password privately – Common professional practice Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-47 Five-Component Careers Career Guide   Hardware Software Vendors (IBM, Cisco, etc.) Vendors (Microsoft, Oracle, etc.) Vendors (Acxiom, Google, etc.) Vendors (SAP, Infor, Oracle) Recruiters (Robert Half, Lucas Group) Vendors Internal MIS Vendors Internal MIS Database administration Security Vendors and internal customer support Customer support Training Development Computer engineering Internal MIS Application programmer Quality test Engineer Data modeler Database design Business process management Process reengineering Training Internal MIS recruiting Management Internal MIS Internal MIS Data administration Project management Technical management Consulting Project management, development, pre- and postsale support Sales & Marketing Support Data Procedures Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved People 1-48 Active Review Q1-1 Why is Introduction to MIS the most important class in the business school? Q1-2 How will MIS affect me? Q1-3 What is MIS? Q1-4 How can you use the five-component model? Q1-5 What is information? Q1-6 What are necessary data characteristics? Q1-7 2027? Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-49 zulily Case Study • What is the business model? – Flash sales to mothers:  Children’s clothes, toys, women’s clothes, accessories, and décor items – IT provides entertaining shopping experience, name brand goods, unique and difficult-to-find off-brands, at substantial discounts – 45% of sales over mobile devices – Curated sales Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-50 zulily (cont’d) Case Study Figure 1-11 zulily Merchandise Variety Courtesy of zulily Inc Used by permission Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-51 zulily (cont’d) Case Study 2010 2011 2012 2013 2014 Number of active customers (thousands) 157 791 1580 3,200 4,900 Revenue (millions) $18 $143 $331 $696 $1,200 Sales per active customer $117 $180 $210 $218 $245 Figure 1-13 zulily Performance Courtesy of zulily Inc Used by permission Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-52 zulily (cont’d) Case Study • How did they it? – Buyers identify goods to be sold, negotiate with vendors – Photographs sample items in-house, write ad copy – Group items for 3-day sales events – After event closes, zulily orders items from vendor, receives, packages, and ships to customers (maintains no inventory) – Vulnerable to vendor’s errors and mistakes Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-53 zulily (cont’d) Case Study • Use of Technology at zulily – “Continual innovation through investment in technology is core to our business.” – Internet, mobile technology compatibility – Developed a proprietary technology platform to handle Enormous spikes in web processing demand – Extensive data collection and analytics capabilities Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-54 zulily (cont’d) Case Study • Growth-management problems – Must effectively integrate, develop and motivate a large number of new employees, while maintaining corporate culture Continue to make substantial investments to expand merchandising and technology personnel – Need to hire mid-level managers – Finding and retaining merchandising and technology personnel difficult Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-55 zulily (cont’d) Case Study • Lessons Learned – Technology zulily uses not ground breaking – Developed innovative application of information systems technology – Applied it to a business opportunity – Managerial skill to develop that idea Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-56 Copyright © 2018, 2017, 2016 Pearson Education, Inc All Rights Reserved 1-57 ... Copyright © 2018 , 2017 , 2016 Pearson Education, Inc All Rights Reserved 1-20 Job Growth By Sector Over the Past Twenty Years Q1-2 How will MIS affect me? Figure 1-6 Growth of Jobs by Sector from... Statistics Occupational Outlook 2014 –2024 Copyright © 2018 , 2017 , 2016 Pearson Education, Inc All Rights Reserved 1-22 Bottom Line of MIS Course Q1-2 How will MIS affect me? Most important course... 2018 , 2017 , 2016 Pearson Education, Inc All Rights Reserved 1-25 Components of an Information System? Q1-3 What is MIS? Figure 1-8 Five Components of an Information System Copyright © 2018 , 2017 ,