Management Chapter 1 Homework Internal Within The Organization External

Chapter 01 – The Information Age in Which You Live: Changing the Face of Business

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CHAPTER 1

THE INFORMATION AGE IN WHICH YOU LIVE:

CHANGING THE FACE OF BUSINESS

JUMP TO THE SUPPORT YOU WANT

STUDENT LEARNING OUTCOMES

2. Describe how to use break-even analysis to assess the financial impact of information

technology.

4. Compare and contrast Porter’s three generic strategies and the run-grow-transform

CHAPTER SUMMARY

This chapter serves two primary purposes. First the chapter introduces your students to the

broad notion of management information systems within an organization and the three key

resources on which MIS focuses – people, information, and information technology.

Second, the chapter jumps right into the process of appropriately selecting which technologies

to use based on the industry in which your organization operates, the identified business

strategies for competing in that industry, and how to assess the impact of technology.

The primary sections of this chapter include:

1. MIS Resource #1: Information

3. MIS Resource #3: Information Technology

5. Industry Impact of IT: Porter’s Five Forces Model

Chapter 01 – The Information Age in Which You Live: Changing the Face of Business

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LECTURE OUTLINE

INTRODUCTION (p. 4)

MIS RESOURCE #1: INFORMATION (p. 5)

1. Defining Information Quality

MIS RESOURCE #2: PEOPLE (p. 10)

1. Technology Literacy

3. Your Ethical Responsibilities

MIS RESOURCE #3: INFORMATION TECHNOLOGY (p. 13)

FINANCIAL IMPACT OF IT: BREAK-EVEN ANALYSIS (p. 15)

1. Reducing Fixed Costs

3. Increasing Revenue

INDUSTRY IMPACT OF IT: PORTER’S FIVE FORCES MODEL (p. 19)

2. Supplier Power

4. Threat of New Entrants

STRATEGY IMPACT OF IT: PORTER (AGAIN) AND RGT (p. 23)

1. Overall Cost Leadership

3. Focus

END OF CHAPTER (p. 26)

1. Summary: Student Learning Outcomes Revisited

3. Closing Case Study Two

5. Short-Answer Questions

7. Discussion Questions

Back to Jump List

Chapter 01 – The Information Age in Which You Live: Changing the Face of Business

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MODULES, PROJECTS, AND DATA FILES

Supporting Modules

XLM/A Computer Hardware and Software – comprehensive tour of technology terminology

focusing on personal technologies including application software, system software, input

devices, output devices, storage devices, CPU and RAM, and connecting devices such as cables

and ports.

XLM/K Careers in Business – Extended Learning Module K provides an overview of jobs titles

and descriptions in the fields of accounting, finance, hospitality and tourism management,

information technology, management, marketing, productions and operations management,

and real estate and construction management including what IT skills you should acquire to be

successful in each field.

Group Projects

• Assessing the Value of Customer Relationship Management: Trevor Toy Auto Mechanics

Electronic Commerce Projects

• Searching job databases

Data Files

There are no data files associated with this chapter. There may be data files for the Group

Projects you choose.

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Chapter 01 – The Information Age in Which You Live: Changing the Face of Business

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• These are the Student Learning Outcomes for the chapter.

• Use them as a road map to inform your students of what you will be

covering.

• With this edition, we’ve changed the focus of the opening case

studies.

• This slide provides the narrative for the previous slide.

• Hotels are also suffering from less in-room pay-per-view movie

• These are great questions for starting class.

• Some of your students may have never used a pay phone.

• This slide reinforces the fact that we live and work in a digital world,

where technology and information are important, pervasive, and

often invasive.

Chapter 01 – The Information Age in Which You Live: Changing the Face of Business

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• This slide starts the section on management information systems

(Student Learning Outcome #1).

• It defines MIS.

• This slide lists the 3 important organizational resources within MIS.

• Obviously, people are the most important resource.

• This slide presents Figure 1.1 on page 5.

• It illustrates the synergistic effect MIS can have if people, technology,

and information are coordinated and managed together.

• This slide provides an overview of the chapter, including the major

sections and which addresses each learning outcome.

• This slide begins the discussion of information as a key resource.

• It defines data and information.

• Later, we morph information into business intelligence.

Chapter 01 – The Information Age in Which You Live: Changing the Face of Business

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• This slide presents Figure 1.2 on page 6.

• It illustrates the difference between data and information.

• This slide continues the discussion of information by focusing on

business intelligence and its definition.

• This slide presents figure 1.3 on page 7.

• It illustrates business intelligence.

• BI is information on steroids.

• This slide focuses on the fact that information is valuable only if it

exhibits quality.

• Quality is often nebulous and difficult to define but we can describe it

• This slide presents Figure 1.4 on page 9.

• It provides a graphical illustration of the various organizational

Chapter 01 – The Information Age in Which You Live: Changing the Face of Business

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• This slide discusses the flow perspective of information.

• Within an organization information can flow up, down, horizontally,

and outward/inward.

• This slide discusses the perspective of information with respect to

what it describes.

• This slide begins the discussion of people as a key resource within MIS.

• People are the single most important resource in any organization.

• Today, people must focus on being:

o Technology literate

o Information literate

• This slide presents Figure 1.5 on page 13

• It illustrates the relationship between acting legally and ethically

• The goal, obviously, is to remain in Quadrant I with all your actions

Chapter 01 – The Information Age in Which You Live: Changing the Face of Business

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• This slide begins the discussion of information technology as a key

resource within MIS.

• It defines information technology and its two primary components –

hardware and software.

• This slide presents Figure 1.6 on page 14.

• It provides a graphical depiction of the categories of IT and, within IT,

• This slide (and the next) defines and describes the 6 major categories

of hardware.

• This slide (and the previous) defines and describes the 6 major

categories of hardware.

• This slide defines the two major types of software – application and

system.

• Again, work through XLM/A with your students for a thorough review

of software.

Chapter 01 – The Information Age in Which You Live: Changing the Face of Business

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• This slide begins the discussion of how to assess the financial impact

of IT (Student Learning Outcome #3).

• It does so using break-even analysis.

• This slide provides a description of the three financial aspects of

break-even analysis.

• They are:

• This slide sets up the break-even analysis example provided in the

book.

• You may want to consider creating a workbook to illustrate break-

even analysis.

• This provides Figure 1.7 on page 15.

reduce fixed costs.

• The more fixed costs are reduced, the closer the break-even point

• This slide lists just a few of the many ways in which IT can be used to

Chapter 01 – The Information Age in Which You Live: Changing the Face of Business

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• This slide presents Figure 1.8 on page 16.

• It illustrates the effect on break-even of lowering fixed costs.

SLIDE 33

• We cover in detail throughout the book many ways to use IT to reduce

• This slide lists just a few of the many ways in which IT can be used to

reduce variable costs.

SLIDE 34

• This slide presents Figure 1.9 on page 17.

• It illustrates the effect on break-even of lowering variable costs.

SLIDE 35

• This slide lists just a few of the many ways in which IT can be used to

increase revenue.

• This slide begins the section on Porter’s Five Forces Model (Student

Learning Outcome #3).

• It defines Porter’s Five Forces Model and identifies the five forces.

SLIDE 32

Chapter 01 – The Information Age in Which You Live: Changing the Face of Business

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• This slide presents Figure 1.10 on page 19.

• It graphically depicts the five forces model.

• This slide defines and describes buyer power as one of the five forces

within Porter’s Five Forces Model.

• This slide defines two very important concepts – competitive

advantage and first-mover advantage.

• The point here is that no competitive advantage is ever permanent.

• Organizations must constantly seek out new competitive advantages.

• This slide defines and describes supplier power as a force within

Porter’s Five Forces Model.

• It also includes Figure 1.11 on page 21 which illustrates how

organizations have to deal in opposite ways with both buyer and

supplier power.

• This slide defines and describes the threat of substitute products or

services as a force within Porter’s Five Forces Model.

• It also defines switching costs and provides examples of switching

costs that can reduce the threat of substitute products or services.

Chapter 01 – The Information Age in Which You Live: Changing the Face of Business

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• This slide defines and describes the threat of new entrants as a force

within Porter’s Five Forces Model.

• This slide defines and describes the rivalry among existing competitors

as a force within Porter’s Five Forces Model.

• This slide begins the discussion of Porter’s three generic strategies and

• This slide defines and describes overall cost leadership as one of

Porter’s three generic strategies.

• This slide defines and describes differentiation as one of Porter’s three

generic strategies.

• It also provides several examples.

Chapter 01 – The Information Age in Which You Live: Changing the Face of Business