Chapter 1COMPETING IN THE INFORMATION AGE

LEARNING OUTCOMES

1. Describe the information age and the differences between data, information, business intelligence, and knowledge

2. Identify the different departments in a company and why they must work together to achieve success

3. Explain systems thinking and how management information systems enable business communications

Information Technology’s Impact on Business

ITBIMISOperationsFlat world

Systems ThinkingData – Information - Knowledge

THE SOLUTION: MANAGEMENT INFORMATION SYSTEMS

• Systems thinking – A way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback

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COMPETING IN THE INFORMATION AGE

• Examples of the power of business and technology

– Amazon – Not a technology company; primary business focus is selling books

– Netflix – Not a technology company; primary business focus is renting videos

– Zappos – Not a technology company; primary business focus is selling shoes

Information Technology’s Impact on Business

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Information Technology’s Impact on Business

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Data, Information, BI

• Data - raw facts that describe the characteristic of an event

• Information - data converted into a meaningful and useful context

• Business Intelligence – applications and technologies that are used to gather, provide access to, and analyze data and information to support decision-making efforts

Data, Information, BI

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Data, Information, BI

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Data, Information, BI

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INFORMATION TECHNOLOGY BASICS

• When beginning to learn about information technology it is important to understand the following:– Data, information, and business intelligence– IT resources– The challenge: departmental companies– The solution: management information system

THE CHALLENGE: DEPARTMENTAL COMPANIES

Common Departments Working Independently

Common Departments Working Interdependently

THE SOLUTION: MANAGEMENT INFORMATION SYSTEMS

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Forces that Flattened the World