Kroenke Mis5e PPT ch01

Part 1
Why MIS?
Copyright © 2019 Pearson Canada Inc. 1-1

MIS IN ACTION
Falcon Security
• 5-yr old, privately owned company
• Aerial drone surveillance and inspection services
• Oil refineries, aerial land survey, videography
(commercials, real estate, etc.), agricultural monitoring
• CEO and cofounder - Mateo Thomas
– Saw how drones improve security with less time and
effort
• Joni Campbell - partner
• Camillia (Cam) Forset - aerial video photographer
MIS IN ACTION
Falcon Security Growth Issues

• Revenues $14 million a year, mostly from large
industrial clients
• Wants to expand to national market
• Joni worries Falcon not ready
– Training drone operators, drones break frequently,
short technical life
• Hugely expensive systems development project
– Automate collection, storage, analysis of drone data

MIS IN ACTION
Innovations
• Exploring 3D printing of drone parts
• Printed prototype of new passive recharging
platform
– Enables landing, charging, and take off without human
intervention
– Saved hours managing drones and increased effective
range

MIS IN ACTION
Is Manufacturing Drones the Right Move

for Falcon Security?
• Manufacture drones?
• How many new employees needed?
• Costs for additional equipment and information
systems to support manufacturing process?
• New drones compatible with existing data
collection and processing system?

Experiencing MIS
Fifth Canadian Edition
Chapter 1
The Importance of MIS

MIS IN ACTION
“But Today, They’re Not Enough.”

Jennifer lacks skills Falcon Security needs:
1. Abstract reasoning skills
2. Systems thinking skills
3. Collaboration skills
4. Experimentation skills

MIS IN ACTION
What Do Employers Want?

• Self starter, don’t wait to be told what to do
• Team worker
– Develop ideas and kick them around with others
– Ask questions
• Pull more than your own weight

Study Questions
Q1-1 What is an information system?
Q1-2 What is MIS?
Q1-3 How does an IS differ from IT?
Q1-4 How important are information systems to our
economy?
Q1-5 How do successful business professionals use
information systems?
Q1-6 What is the shape of things to come?
Q1-7 What is this course about?
Q1-1: What Is an Information System?
• A system is a group of components that interact to achieve
some purpose
• An information system (IS) is a group of components that
interact to produce information
• Five fundamental components of computer-based
information systems are:
1. Hardware
2. Software
3. Data
4. Procedures
5. People
Copyright © 2019 Pearson Canada Inc. 1 - 10
Figure 1-1
Five Components of an Information System

Q1-2: What Is MIS?
• Management Information Systems (MIS)
comprise the development and use of information
systems that help organizations achieve their
goals and objectives
• Key elements:
– Development and use
– Information systems
– Goals and objectives

Development and Use of Information
Systems
• You need to:
– Take an active role in order to ensure that system will
meet your needs
– Learn how to acquire information systems, by Asking
critical questions:
 “Where did the information come from?”
 “What new info or opportunities are enabled”
 “How was the system constructed”
 “What role did users play in development”
– Learn how to use information systems
 Security, backup, recovery

Achieving Business Goals and Objectives
• MIS aids businesses in achieving objectives
– Organizations themselves don’t do anything
– People within an organization or business who: sell,
buy, design, produce, finance, market, account, and
manage
• MIS empowers users to reach goals
– Exist to assist business people
– Need to be developed for right reason

Acquire Information Systems for a Reason
• What will a system do for you?
• What is the purpose?
• What will using it enable us to do?
• What goal can be accomplished through its use?
• Will it aid in reaching our objectives?

MIS IN USE
Social Media: Changing the Relationship

Between Customers and Business
• Social media connect people, and when people get
connected they talk, share, and let friends know what
they think about the world
• Social networking was often ignored by companies
at first – they do not make positive cash flows.
• Companies learned, however, that “bad press” (and
“good press” can now be shared to millions of people
within seconds.
• Now, organizations are creating strategies that
incorporate social networking tools.
MIS IN USE
Social Media Examples

• Molson in the Community provides space for staff to
share volunteer work they do on behalf of Molson
Canada, in blogs and vlogs.
• The Big Wild founded by Canadian parks and
Wilderness Society and Mountain Equipment Co-op,
provides space to share pictures and videos of wild
spaces, and connect with others doing same.
• Mabel’s Labels’ hosts a blog (Mabelhood), podcase on
parenting, Facebook fan page, Twitter account, a Flickr
photostream and a YouTube account – all give the
company an opportunity to connect with customers.
Q1-3: How Does an IS Differ from IT? (1 of 3)
• Information system (IS) is a system of hardware,
software, data, procedures, and people that
produces information
• Information technology (IT) represents raw
technology, components of IS
– Hardware
– Software
– Data components

• IT refers to:
– Methods
– Inventions
– Standards
– Products

• IT alone will not help an organization achieve
goals
• IT must be embedded into an IS to help
accomplish objectives
– Technology must be combined with people and
procedure components
– IS will make IT useful

Real Difference Between IS and IT
• IS includes people
• Including people in the system impacts how you
design and implement systems
• Successful business people take advantage of
crucial differences between IT and IS to improve
their systems

Q1-4: How Important Are Information
Systems to Our Economy?
• Industry Canada categorizes sectors and collects
data about them.
• Information and Communications Technology
(ICT) sector is the most closely related to use of
IS in Canada.
• sector provides products, services that other
industries rely on
• Includes companies involved in software,
computer services, cable, program distributors,
telecommunications, manufacturing, wholesaling
Figure 1-2
Canada’s ICT Sector, 2015
Source: Reproduced with the permission of the Minister of Industry, 2017. https://
www.ic.gc.ca/eic/site/ict-tic.nsf/eng/h_it07229.html

What Do the Numbers Mean?
• 32,000 ICT sector companies in Canada, 2015
– More than 90% had fewer than 100 employees!
– Only 115 had more than 500 employees.
• In 2015, the ICT sector added $71.3 billion to the
Canadian GDP
• This adds up to jobs
– 2015: 584,850 people employed in ICT sector
– Most growth in software and computer-services
– Manufacturing is relatively flat
– Service is expected to continue to grow
Figure 1-3
Average Annual Earnings by Major ICT
Industry, 2015
Source: Reproduced with the permission of the Minister of Industry, 2017 https
://www.ic.gc.ca/eic/site/ict-tic.nsf/vwapj/ICT_Sector_Profile_2015-EN.pdf/$file/ICT_Sector_Profile_2015-EN.pdf

Q1-5: How Do Successful Business
Professionals Use IS? (1 of 2)
• Consumers are accustomed to yearly advances in
– devices (smaller, more powerful)
– services (faster, more reliable)
– costs that are either lower or services greater for same
cost
Free, Perfect, and Now
Free or delivered at no Contain no errors or Delivered almost

cost (Twitter, Instagram, mistakes, competitive immediately, usable and
Facebook, Google) with alternatives available 24/7, no wait or
downtime

Q1-5: How Do Successful Business
Professionals Use IS? (2 of 2)
• Today, every business professional uses
numerous information systems
• Some of basic information systems are:
– Email
– Accessing webpages
– Using word processors and spreadsheets
– Creating presentations
– Instant messaging and location-based services on
smart phones

Beyond the Basics
• To be effective in today’s economy, you need
more than the basics
• Business professionals need to expand their
knowledge to include the following:
– Use of mobile devices and applications
– Use of project-management software – Microsoft
Project, OpenProject
– Business graphics – MS Visio, SmartDraw
– Collaborative systems such as Google Docs

Gaining a Competitive Advantage (1 of 2)
Five key transformative technologies will be in
demand:
• Virtual and augmented reality
• 5G mobile
• 3D printing
• Blockchain
• Artificial intelligence
Source: “The Next Talent Wave: Navigating the Digital Shift – Outlook
2021,” The Information and Communications Technology Council (ICTC)
of Canada 2017.

Gaining a Competitive Advantage (2 of 2)
• Communication and business skills are paramount
• For business majors, adding technical knowledge will
increase ability to work across spectrum of industries
• Five occupations predicted to have above-average
growth rates:
– Computer and information systems managers
– Computer engineers (except software engineers, designers)
– Database analysts, administrators
– Computer programmers and interactive media developers
– Graphic arts technicians

Q1-6: What Is the Shape of Things to
Come?
• Moore’s Law noted that the density of circuits on an
integrated chip was doubling approximately every two
years or so
• This prediction has been generally accurate for almost
five decades
• Moore’s Law is one of the few predictions in area of IT
that has really stood the test of time
• The cost of computers has declined over the past 50
years, the same amount of money can buy increased
computer capacity
Network Effects and Lock-In
• The value that is received from using certain
technologies increases significantly as the number
of users increases.
• The more, the merrier.
• Examples:
– Fax machines: couldn’t have sold just one
– Social networks: need others to join
• Once established, network effects can lock-in users
and make it harder for them to switch technologies
General Shrinking of Device Size
• Recall Moore’s Law
• Devices stay on us at all times
• Adoption of location-based technology

Business of IT and IS
• How will the changes in IT and IS affect the way we
live and work?
• Hal Varian, chief economist at Google, suggested
that:
– Business is changing because of advances in IS and IT
– Mobility devices will change what it means to go to work
– Work will come to you, wherever you are, and you will
deal with it at any time and in any place
– Ability to handle (find, process, understand,
communicate) data is going to be important skill for
decades to come
MIS IN USE
Google Knows Best (1 of 2)

• Millions of people worldwide daily log in to Gmail
• Supported entirely by advertising
• When email is sent or received, a fresh column of
ads appear on the right-hand side of the screen
• Ability to scan email, understand its content, and
provide contextual advertising distinguishes
Google from other email providers – only Google
tries to understand what you are writing (“content
extraction”)
MIS IN USE
Google Knows Best (2 of 2)

• When you visit a google site, your IP address is
recorded and all your searches are tracked, and
can be done across its various products
• Creates complex profiles
• “Gmail has broken a fundamental trust” (Marc
Rotenberg, Electronic Privacy Information Centre)

ICTS Jobs 2.0 Report
• Within the next decade:
– Unlimited storage will be almost free
– Analytical software will reveal hidden information
– The real and virtual world will collide as wide-area
networks (WANs) become cheap, reliable, and widely
available
– These technology trends will enable deep, powerful,
performance-enhancing innovations that will be felt in
almost every industry
– Source: David Ticoll, “ICTS Jobs 2.0”, ICTC of Canada.

Talking About the Future of IT
• Canadian economy is undergoing fundamental
changes – past and future shifts
• The need to innovate and to adapt to the changing
world
• Example: The Running Room extends the
services provided by a traditional retail business
– Their website not only provides information more
efficiently to customers, but also provides services that
could not be found at the store

What Is This Course About? (1 of 4)
• Reasons why students say they do not need this
course:
“I already know how to use Excel and Word. I can
build a website with FrontPage. And when I need to
learn more, I can. So, let me out of this course!”
“Well, I’m sure there is some merit to this course, but

consider the opportunity cost. I really need to be
taking more microeconomics and international
business. The time I spend on this course could be
better spent on those subjects.”
• Reasons why students say they do not need this
course:
“I’m a people person, and I don’t do well with

engineering-like things. I’ve put this course off
until the last quarter of my final year. I hope it’s not
as bad as I fear; I just wish they didn’t make me
take it.”

• Much more than Excel, Access
• Focus on learning how to use tools to accomplish
organizational goals
• MIS = development and use of IS that help
organizations achieve goals and objectives
– To understand MIS, you need to understand business
and technology, and relate the two

• Chapters 2, 3: relationship of business processes
and information system
• Chapters 4-6: hardware, software, content,
databases, network and communications tech
• Chapters 7-9: how technology can be used to gain
competitive advantage
• Chapters 10-12: how IT departments work, IT
architecture, IS ethics, green IT, privacy, and
security
CASE STUDY
Running at the Speed of the Web: The

Running Room
• North America’s largest specialty retailer of
sporting goods, apparel, footwear for runners
• Website created in 2000
– Do you think it would be as successful as it is, without
a website? Is the website a critical component for
success, or just a nice extra?
– Could Running Room provide same customer
experience without the website?
– Does the website create a barrier to entry for its
potential competitors?

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Part 1

Copyright © 2019 Pearson Canada Inc. 1-1

Falcon Security Growth Issues

Copyright © 2019 Pearson Canada Inc. 1-3

Copyright © 2019 Pearson Canada Inc. 1-4

Is Manufacturing Drones the Right Move

Copyright © 2019 Pearson Canada Inc. 1-5

Copyright © 2019 Pearson Canada Inc. 1-6

“But Today, They’re Not Enough.”

Copyright © 2019 Pearson Canada Inc. 1-7

What Do Employers Want?

Copyright © 2019 Pearson Canada Inc. 1-8

Copyright © 2019 Pearson Canada Inc. 1 - 11

Copyright © 2019 Pearson Canada Inc. 1 - 12

Copyright © 2019 Pearson Canada Inc. 1 - 13

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Social Media: Changing the Relationship

Social Media Examples

Copyright © 2019 Pearson Canada Inc. 1 - 18

Copyright © 2019 Pearson Canada Inc. 1 - 19

Copyright © 2019 Pearson Canada Inc. 1 - 20

Copyright © 2019 Pearson Canada Inc. 1 - 21

Copyright © 2019 Pearson Canada Inc. 1 - 23

Copyright © 2019 Pearson Canada Inc. 1 - 25

Free or delivered at no Contain no errors or Delivered almost

Copyright © 2019 Pearson Canada Inc. 1 - 26

Copyright © 2019 Pearson Canada Inc. 1 - 27

Copyright © 2019 Pearson Canada Inc. 1 - 28

Copyright © 2019 Pearson Canada Inc. 1 - 29

Copyright © 2019 Pearson Canada Inc. 1 - 30

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Google Knows Best (1 of 2)

Google Knows Best (2 of 2)

Copyright © 2019 Pearson Canada Inc. 1 - 36

– Source: David Ticoll, “ICTS Jobs 2.0”, ICTC of Canada.

Copyright © 2019 Pearson Canada Inc. 1 - 38

“Well, I’m sure there is some merit to this course, but

“I’m a people person, and I don’t do well with

Copyright © 2019 Pearson Canada Inc. 1 - 40

Copyright © 2019 Pearson Canada Inc. 1 - 41

Running at the Speed of the Web: The

Copyright © 2019 Pearson Canada Inc. 1 - 43

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