ITM5000 Quiz #1 MIS for the Information Age 9th edition

Management information systems (MIS)
Helping people perform all tasks related to information processing and management through planning and development
3 key resources of Management information systems (MIS)
Information
People
Technology
How people can use information technology tools to:
Achieve a competitive advantage
Do things cheaper and faster
Increase revenue
Innovate new processes
Data >Process Transformation>Information
Data >Process Transformation>Information
Information
data that has specific meaning within a specific context
Information Technology
any computer-based tool that people use to work information and support the information and information-processing needs of an organization
Information Quality
Timeliness
Location
Form
Validity
Form
audio, text, video, animation, graphical or other
Validity
Credibility of the information
Information Quality
pertinent, relevant, and useful
Internal Information
specific operational aspects of an organization; more detailed-level
External Information
environment surrounding the organization
Objective Information
describes something that is KNOWN
Subjective Information
describes something that is UNKNOWN
Business intelligence
Collective information / reports that supports important, strategic decision making
InformationData
Aggregated data that has meaning
Knowledge
Data
Raw facts
The most important resource in any organization
People
Technology literate knowledge worker
Knowing how/when to apply technology
Information literate knowledge worker
Knowing how to use information
Knowledge
facts, information, and skills acquired by a person through experience or education; the theoretical or practical understanding of a subject
Ethical responsibilities
Legal vs. Illegal
Ethics
trait associated with people
Information Technology
Hardware and Software
Hardware
physical device that makes up a computer

Input Device (mouse, bar code scanner)
Output Device (monitor, printer)
Storage Device (storage device, flash memory)
CPU and RAM (the “brains” of the computer)
Telecommunication Device (modem, satellite)
Connecting Device (port, cord)

Software
set of instructions that your hardware executes to carry out a specific task for you.

Application Software (Microsoft Word, inventory, payroll)
System Software (network operating systems software , drivers for your printer and scanner, technology management, coordination)
Operating System Software (Windows, MAC OS, Linux)
Utility Software (Anti-virus software, disk optimization software)

Input Device
a tool that is used to enter information and commands. Input devices include such tools as keyboard, mouse, touch screen, game controller, and bar code reader
Output Device
a tool that is used to see, hear or otherwise recognize the results of information-processing requests. Output devices include such tools as printer, monitor, and speakers
Storage Device
a tool that is used to store information for use at a later time. Storage devices include such tools as thumb drive, flash memory card, and DVD
CPU
is the hardware that interprets the operation of all the hardware.
RAM
random access memory; temporary holding area for the information you’re working with as well as the system and application software instructions that the CPU currently needs.
Telecommunication Device
a tool that is used to send information to and receive it from another person or computer in a network.
ex: a modem used to connect to the Internet
Connecting Device
include such things as a USB port into which you connect a printer, connector cables to connect your printer to the USB port, and intern connecting devices on the motherboard.
2 Types of Softwar
Application Software and System Software
Application Software
software that enables you to solve specific problems and perform specific tasks
System Software
handles tasks specific to technology management and coordinates the interaction of all technology devices
2 Types of Costs
Fixed Cost and Variable Cost
Fixed costs
costs you incur even if you don’t sell anything
Variable costs
costs you incur when you sell something (COGS)
Revenue
how much you sell one unit for
Break-even point
point at which an organization has covered its fixed costs and begins to make a profit
FINANCIAL IMPACT OF INFORMATION TECHNOLOGY
Technology can reduce Fixed Costs
Technology can reduce Variable Costs
Technology helps increase revenue
Reduces the total cost of ownership
Fixed costs, variable costs, revenue
Virtual goods
do not exist in the physical world; no associated variable cost because it purely digital
ex. Farmville
Crowdsourcing
creates value for free; non-paid employees to do your work
ex. TripAdvisor, Ebay, YouTube
Increase Revenue
Impacts you break-even point
Technology increases revenue

ex. Recommendation Engines
Long-Tail Economics
Many others

Digital storefront
presence only in the virtual world
ex. Amazon and Ebay
Telecommuting
technology infrastructure that allows employees to work from home.
reduces expenses related to office space, utilities, insurance, parking, etc.
Recommendation Engines
engines that make recommendations to you based on likes, dislikes and past purchases
ex. Amazon (offers you additional books based on the book you are considering purchasing)
Long-Tail Economics
ability to make money from products that are less wanted by consumers
ex. iTunes, Amazon
Porter’s Five Forces Model
helps business people understand the relative attractiveness of an industry and the industry’s competitive pressures
Porter’s Five Forces Mode
Buyer power
Supplier power
Threat of substitute products and services
Threat of new entrants
Rivalry among existing competitors
Porter identified 3 generic business approaches or strategies for beating the competition
Overall cost leadership
Differentiation
Focus
Overall cost leadership
offering the same or better quality product or service at a price that is less than what any of the competition is able to do
ex. Walmart
Differentiation
offering a product or service that is perceived as being “unique” in the marketplace
Focus
focusing on offering products or services to a particular segment or buyer group, within a segment of a product line, to a specific geographic market, etc; oppposite of being all things to all people
Run-grow-transform (RGT) framework
the allocation in terms of percentages of IT dollars among Running the organization, Growing the organization, Transforming the organization
Run (Overall cost leadership)
Optimize the execution of activities and processes already in place. Seek organizational growth through offering products and services faster and cheaper than the competition.
Grow (Focus and Differentiation)
Increase market reach, product and service offerings, expand market share. Seek organizational growth by taking market share from the competition
ex. get a bigger piece of the pie
Transform (new) (differentiation)
innovate business processes and / or products and services in a completely new way, move into seemingly different markets, and so on. Seek organizational growth through new and different means.
Relationship between management information systems and information technology
Ethics differ from Law
Ethics and law differ in that ethics are social guidelines based on moral principles and values while laws are rules and regulations that have specific penalties if not followed
Helicopter Parent
is a parent who pays extremely close attention to a child’s or children’s experiences and problems, particularly at educational institutions