Book Title
Business Driven Information Systems 5th Edition

978-0073402987 Chapter 1 Section 1.1 Business Driven Mis

April 4, 2019
This guide provides a number of classroom activities, videos, and debates to
accompany Business Driven Information Systems Fourth Edition. A few
course suggestions:
Create one or two test questions based on the classroom activity to help
reward students who attend lectures.
Many professors have found that assigning an activity and then lecturing
on the material helps students gain a deeper understanding of the core
MIS concepts as they have already struggled with applying the material to
a real-world situation.
Asking a small group of students to explain their answer to the activity to
the entire class after completion ensures students come to class
prepared. I select a different group each activity to explain their answer
and they do not want to look unprepared in front of their fellow
classmates. It is a powerful motivator to get my students reading prior to
class. After the activity and student’s presentations then I lecture – keeps
my students engaged and helps to achieve a higher level of learning
outcomes as they are constantly tasked with applying the concepts during
Create an Ask the Professor Discussion board that runs the entire course
where students can ask course and content related questions. I typically
promise to respond within 24 hours and I always encourage my students
to check the discussion board before sending an email. Many times if one
student a questions so do other students.
**Three Before Me Rule! This is something I have found that saves a
great deal of time answering email. I state the Three Before Me rule in
my syllabus. Before a student comes to me with a question they must
provide three sources they used to answer the question themselves. This
signiticantly cuts down on emails as many times students can 1nd the
answer to their questions but it seems easier just to email the professor.
Sources can include the syllabus, the Ask The Professor Q&A Discussion
Board, classmates, the textbook, etc. If I ask the student for the three
sources and they do not have them I dock participation points. Works
great on signiticantly cutting down my emails and helps to prepare my
students for the real world!
The core chapter material is covered in detail in the PowerPoint slides.
Each slide contains detailed teaching notes including exercises, class
activities, questions, and examples. Please review the PowerPoint slides
for detailed notes on how to teach and enhance the core chapter material.
Enjoy your course and best of luck!
Paige Baltzan
Information is everywhere. Information is a strategic asset. Without
information, an organization simply could not operate. This chapter
introduces students to several core business strategies that focus on using
information to gain a competitive advantage, including:
The core drivers of the information age
Data, information, business intelligence, knowledge
Systems thinking
Competitive advantages
Porter’s Five Forces model
Porter’s three generic strategies
Value chain analysis
Many of these concepts and strategies will be new to your students. Be sure
to explain to your students that this chapter offer an introduction to these
concepts and they will gain a solid understanding of the details of these
concepts as they continue reading the text.
Competing in the Information Age
The Challenge of Department Companies and the MIS Solution
Identifying Competitive Advantages
The Five Forces Model – Evaluating Industry Attractiveness
The Three Generic Strategies – Choosing a Business Focus
Value Chain Analysis – Executing Business Strategies
This chapter provides an overview of Business Driven Information Systems
(BDIS) along with anticipated learning objectives for students. Explain to your
students that the goal of this chapter is to get them excited about BDIS and
all the different business and technology concepts they are going to learn.
Let your students know that they are going to be introduced to many new
concepts that they might be unfamiliar with; however; these concepts are
discussed in detail throughout the text.
Learning Outcome 1.1: Describe the information age and the
difference between data, information, business intelligence, and
We live in the information age, when in1nite quantities of facts are widely
available to anyone who can use a computer. The core drivers of the
information age include data, information, business intelligence, and
knowledge. Data are raw facts that describe the characteristics of an event
or object. Information is data converted into a meaningful and useful context.
Business intelligence (BI) is information collected from multiple sources such
as suppliers, customers, competitors, partners, and industries that analyzes
patterns, trends, and relationships for strategic decision making. Knowledge
includes the skills, experience, and expertise, coupled with information and
intelligence that creates a person’s intellectual resources. As you move from
data to knowledge you include more and more variables for analysis
resulting in better, more precise support for decision making and problem
Learning Outcome 1.2: Explain systems thinking and how
management information systems enable business communications.
A system is a collection of parts that link to achieve a common purpose.
Systems thinking is a way of monitoring the entire system by viewing
multiple inputs being processed or transformed to produce outputs while
continuously gathering feedback on each part. Feedback is information that
returns to its original transmitter (input, transform, or output) and modi1es
the transmitter’s actions. Feedback helps the system maintain stability.
Management information systems (MIS) is a business function, like
accounting and human resources, which moves information about people,
products, and processes across the company to facilitate decision making
and problem solving. MIS incorporates systems thinking to help companies
operate cross-functionally. For example, to fulfill product orders, an MIS for
sales moves a single customer order across all functional areas including
sales, order fulfillment, shipping, billing, and 1nally customer service.
Although different functional areas handle di(erent parts of the sale, thanks
to MIS, to the customer the sale is one continuous process.
GREAT BUSINESS DECISIONS – Apple’s Decision to Develop
the First Saleable Personal Computer (PC)
Like all great computer companies, Apple began its life in a garage. In 1977,
Steve Jobs and Steve Wozniak built the Apple 1, regarded by many as the
first real personal computer. This founded the Apple Company and the
invention of the Apple 2 and the Apple Macintosh. Apple’s key goal was to
make computers accessible to ordinary people. Jobs and Wozniak captured
an opportunity and changed the world through a combination of good
fortune and technical and marketing brilliance.
Instead of writing commands in computer code, Apple owners invented a
mouse to click on easily recognizable icons – for example, a trash can and
1le folders. Other companies were quick to copy Apple’s competitive
advantage, including Microsoft.
The two founders eventually parted, with Wozniak leaving the company to
become a teacher and Jobs continuing with the launch of the Apple
Macintosh. Unfortunately, Macintosh captured only 20 percent of the desktop
market, while Microsoft captured 80 percent of the desktop market with its
MS-DOS operating system.
One newspaper described Jobs as a “corporate Huckleberry Finn” and said
his early business exploits had already made him part of American folk
history. John Sculley, former Pepsi chairman, removed Jobs from Apple in
1985. Sculley was removed from Apple in 1993. Eventually, after a 13-year
exile, Jobs returned to Apple in 1998. The man who founded the company
had come full circle and was now its only hope for survival.
Jobs’ return brought the creation of the iMac and Apple rediscovered its
inventive originality. The iMac sold 278,000 units in the first six weeks and
was described by Fortune as “one of the hottest computer launches ever.”
The iMac and Jobs’ return contributed to doubling Apple’s share prices in less
than a year.
GREAT BUSINESS DECISIONS – Sam Walton’s Discounting
of America
Wal-Mart is one of the largest corporations in the United States. Wal-Mart
does not produce a single item, the company uses strategic supply chain
management to disrupt the retail industry. Wal-Mart’s generic strategy of low
cost provider is paying-o( big time. Any organization wanting to compete in
the 21st century must study Wal-Mart and learn how to compete in new and
di(erent ways.
Samuel Moore Walton lived in the same neighborhood in Bentonville,
Arkansas, for forty years. Walton was the sort of man that would rather
borrow a newspaper than pay a quarter for a new one. He was also the sort
of man that would invite a struggling young family out to lunch with his
family every Sunday.
Sam Walton controlled over 20 percent of Wal-Mart’s stock, and Sam Walton
appeared on Forbes 400 with a net worth of $2.8 billion in 1985 (the holdings
are now worth $28 billion). Of all the inventions that helped Sam Walton
achieve success and billionaire status, his greatest invention as a CEO was
that he himself did not change. Sam managed his 40,000 employees as
equal associates, and it was said that only his family meant more to him than
his beloved associates. One manufacturer who worked for Sam for decades
stated “One of Sam’s greatest contributions to Wal-Mart was his attitude
toward experimentation. He constantly encouraged us to experiment on a
small basis and if the idea worked, roll it out. If it failed, try something else. It
was his attitude of keep trying, and don’t be afraid of failure that made us all
so successful.”
Sam Walton succumbed to cancer in 1992, and the news was sent via
satellite directly to the company’s 1,960 stores; when the announcement
played at some stores, clerks started crying. The New York Times obituary
estimated Sam’s fortune at the time of his death at $28 billion. However, this
fortune didn’t mean as much to Sam Walton as the news that one of his
beloved Wal-Mart associates, a cashier, had $262,000 in her retirement
account after working for Wal-Mart for twenty-four years.
Father Guido Sarducci’s Five Minute University
I love showing this video on the first day. I start o( the class by explaining
that we are going to cover hardware, software, telecommunications, and hit
the lab to do some actual networking. I then explain that this video show
how to take a hard drive apart and there will be a quick quiz after to see how
much everyone learned from the video. Then I play the video: gets a number
of laughs. http://www.youtube.com/watch?v=kO8x8eoU3L4v (If this link is
down please Google Gather Guido Sarducci’s Five Minute University)
Steve Job’s Commencement Speech at Stanford University
(Best 40 minutes you could spend in your class!!)
Best way to start o( your course! I simply love this speech and it helps to
set the tone of the course from one of the greatest innovators in history!
After watching the video ask the following questions:
What was the greatest point Steve Jobs made that you can use for your
What course/skill/class have you taken that will have the greatest impact
on your future (similar to Steve Jobs Calligraphy Course)?
How will learning about technology have a direct impact on your future
career in business?
http://www.youtube.com/watch?v=UF8uR6Z6KLc (If this link is down please
Google Steve Jobs Commencement Speech at Stanford)
Student Expectations and The MIS Challenge
Have each student list three things they know and three things they want to
know about the content in the course. You can collect this and use as a
baseline for teaching.
Ask your students to come up with a business that does not need technology
to compete. Whatever the business I can demonstrate how technology can
help them be more successful – for example a hot dog stand or a taxi cab.
By having a computer I can research what events are happening in the town
and ensure my stand or cab is exactly where the event is occurring for
optimum traRc. A lawn service company needs scheduling software to
schedule work and maintenance on equipment, a website for advertising and
connecting with customers, the Internet for weather forecasting so the
company can quickly reschedule due to thunderstorms, email marketing
campaigns, payroll processing, and of course Turbo Tax for small business.
To date, my students have not yet won the MIS challenge.
The World is Flat – Thomas Friedman
This is the greatest video and Thomas Friedman is engaging and relevant. I
show this video to every class I teach from freshman to the Executive MBA.
Friedman explains how technology has Sattened the global business
environment. The video is long and the first 10 minutes are a bit slow as he
discusses the Satteners, but once students understand the Satteners
Friedman discusses a number of global businesses including UPS, Southwest
Airlines, and many more companies. This is simply the best video to drive
home the importance of technology in business today.
Student questions:
Do you agree or disagree with Friedman’s assessment that the world is
Sat? Be sure to justify your answer.
What are the potential impacts of a Sat world for a student performing a
job search?
What can students do to prepare themselves for competing in a Sat
http://video.mit.edu/watch/the-world-is-Sat-30-9321/ (If this link is down
please Google Thomas Friedman The World is Flat Video)
Understanding the Relevance of Technology in Business
This is a great exercise to begin the course. It clearly demonstrates why
anyone involved in business must understand technology. It can be a real
revelation for students who do not see the need for taking an IT course. This
exercise is included brieSy in the first paragraph of the text. Having your
students perform this exercise on their own is so powerful that we
recommend completing it in addition to reading the section in the text.
Bring in several copies of BusinessWeek, Fortune, Fast Company, or any
popular business magazine. The magazines do not have to be current.
Provide a marking tool such as a small set of Post-It Notes. Ask for a few
volunteers and have the students review the magazine and stick a Post-It
Note on each technology-related article, advertisement, etc. When the
student has completed this task, the magazine will be covered in Post-it
Notes, clearly demonstrating that technology is everywhere in business,
even in the popular business magazines such as BusinessWeek.
Since this task can be time consuming, you can put in the Post-It Notes prior
to class and simply show your students the completed magazine. You can
have one student sit in the front of the class and begin the exercise, placing
Post-It Notes on a copy of BusinessWeek. After they have completed several
pages on their own, you can produce the same “completed” magazine with
all of the Post-It Notes. This saves classroom time and still reinforces the
point that technology is everywhere in business.
Be sure to reinforce that these are business magazines, not technology
magazines. Yet they are completely filled with technology – which is clearly
demonstrated by the Post-It Notes. How can any business student today
possibly argue that they do not need to know or understand technology
when faced with a magazine, such as BusinessWeek, that is 1lled with
technology? Read a few of the articles or advertisements. Ask how many of
your students are familiar with Siebel, Oracle, or PeopleSoft and can
articulate what they can do for a company?
The goal of this course is to help your students understand the business side
of technology. Being able to understand all of the technology articles in
BusinessWeek is one of the benefit your students will receive upon
completion of the course.
This is the best site for videos. TED stands for Technology, Entertainment,
Design. It started out (in 1984) as a conference bringing together people
from those three worlds. Since then its scope has become ever broader. The
annual conference now brings together the world's most fascinating thinkers
and doers, who are challenged to give the talk of their lives (in 18 minutes).
This site makes the best talks and performances from TED available to the
public, for free. More than 200 talks from our archive are now available, with
more added each week. These videos are released under a Creative
Commons license, so they can be freely shared and reposted.
I challenge my students to watch one TED video each week of the course and
to report on great videos to fellow students. I create a TED Wiki in
Blackboard and allow the students to share their 1ndings!
Reorganizing an Organization
The AAA Management Company specializes in the management of rental
properties and generates over $20 million in revenues each year and has
over 2,000 employees throughout the United States, Canada, and Mexico.
The company has just hired a new CEO, David Paul. David is planning to
reorganize the company so that it operates more eRciently and effectively.
Below is the new organizational structure that he plans to present to the
board of directors on Monday. Break your students into groups and ask them
to explain the advantages and disadvantages of such a reporting structure.
Ask them to reorganize the reporting structure in the way they feel will be
most beneficial to the operations of the company, being sure to give their
justification for the new structure. Student answers to this exercise will vary.
Vice Presidents
AAA Management’s New Organizaonal Structure
Part Two
Will your proposed structure work for a video distribution company or will
you need to revamp your structure?
The core chapter material is covered in detail in the PowerPoint slides. Each
slide contains detailed teaching notes including exercises, class activities,
questions, and examples. Please review the PowerPoint slides for detailed
notes on how to teach and enhance the core chapter material.