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Management Information Systems, 13TH ED.
MANAGING THE DIGITAL FIRM
Kenneth C. Laudon ● Jane P. Laudon
continued
Learning Track 2: Information Systems and Your Career
Looking out to 2020, the U.S. economy will create 25 million new jobs, and 28.5 million existing
jobs will open up as their occupants retire. More than 95 percent of the new jobs will be created
in the service sector. Many of these new jobs and replacement jobs will require a college degree to
perform (Statistical Abstract, 2013; U.S. Bureau of Labor Statistics, 2013).
How Information Systems Will Affect Business Careers
In the following sections, we describe how specific occupations will be aected by information
systems and what skills you should be building in order to function eectively in this new, emerg-
ing labor market. Let’s look at the career opportunities for business school majors.
ACCOUNTING
ere are about 1.1 million accountants in the U.S. labor force today, and the field is expected to
expand by 16 percent by the year 2020, adding 190,000 new jobs, and a similar number of jobs to
replace retirees. is above-average growth in accounting is in part driven by new accounting laws
for public companies, greater scrutiny of public and private firms by government tax auditors, and
a growing demand for management and operational advice. After the financial meltdown of 2007–
Chapter 1: Information Systems in Global Business Today
Chapter 1 Learning Track 2 2
continued
Accountants increasingly rely on information systems to summarize transactions, create financial
records, organize data, and perform financial analysis. In fact, there is no way that firms today can
perform even basic accounting functions without extensive investment in systems. As a result of
new public laws, accountants are beginning to perform more technical duties, such as implement-
ing, controlling, and auditing systems and networks, and developing technology plans and budgets.
What kinds of information system skills are really important for accounting majors given these
changes in the accounting profession? Here is a short list:
◆ Knowledge of current and likely future changes in information technology, including hardware,
software, and telecommunications, which will be used by public and private firms, govern-
ment agencies, and financial advisors as they perform auditing and accounting functions. Also
FINANCE
Finance majors perform a wide variety of jobs in the U.S. economy. Financial managers develop
financial reports, direct investment activities, and implement cash management strategies. e
financial manager occupation includes many sub-titles such as financial analysts, financial examin-
ers, budget analysts, and appraisers, ere are about 400,000 financial managers in the U.S. labor
force with several dierent occupational titles such as financial analyst, examiners, budget analysts,
personal financial managers, stock brokers, investment bankers, and appraisers. e number of
Chapter 1 Learning Track 2 3
continued
service firms. is includes an understanding of financial applications and design factors to
ensure firms are able to manage their investments, cash, and risks; new kinds of mobile and
wireless applications to manage financial reporting; and development of online systems for
financial transactions. As new trading systems emerge, financial service firms and manag-
ers will need to understand how these systems work and how they will change their firm’s
business.
MARKETING
No field has undergone more technology-driven change in the past five years than marketing and
advertising. e explosion in e-commerce activity described earlier in this chapter means that
eyeballs are moving rapidly to the Internet. As a result, Internet advertising is the fastest-growing
form of advertising, expanding at more than 30 percent annually and reaching $37 billion in 2013.
Here are some of the general information systems skills on which marketing majors should focus:
◆ An ability to understand Internet and marketing database systems, and how they impact tradi-
tional marketing activities, such as brand development, production promotion, and sales. is
would include an understanding of design factors to ensure firms are able to market their prod-
OPERATIONS MANAGEMENT SERVICES AND MANUFACTURING
e growing size and complexity of modern industrial production and the emergence of huge
global service companies have created a growing demand for employees who can coordinate and
optimize the resources required to produce goods and services. Operations management as a
Chapter 1 Learning Track 2 4
continued
discipline is directly relevant to three occupational categories: industrial production managers,
administrative service managers, and operations analysts.
Production managers, administrative service managers and operations analysts will be employ-
ing information systems and technologies every day to accomplish their jobs, with extensive use of
database and analytical software. Here are the general information systems skills on which opera-
tions management majors should focus:
MANAGEMENT
Management is the largest single group in the U.S. business labor force with more than 51 million
members, not including an additional 547,000 management consultants. Overall, the management
corps in the United States is expected to expand faster than other occupational groups, adding
about 3.8 million new jobs by 2020, growing at around 15% for the forecast period. is is slower
than average for all occupations. ere are more than 20 dierent types of managers tracked by
the Bureau of Labor Statistics, all the way from chief executive ocer, to human resource manag-
ers, production managers, project managers, lodging managers, medical managers, and community
service managers.
Chapter 1 Learning Track 2 5
continued
INFORMATION SYSTEMS
e information systems field is arguably one of the most fast changing and dynamic of all the
business professions because information technologies are among the most important tools for
achieving business firms’ key objectives. e explosive growth of business information systems
has generated a growing demand for information systems employees and managers who work with
other business professionals to design and develop new hardware and software systems to serve
the needs of business. Of the top 20 fastest-growing occupations through 2012, five are informa-
tion systems occupations.
ere are about 308,000 information system managers in the United States, with an estimated
growth rate of 18 percent through 2020, expanding the number of new jobs by more than 55,000
new positions, with an additional 50,000 new hires required for replacements. As businesses and
government agencies increasingly rely on the Internet for communication and computing resourc-
es, system and network security management positions are growing very rapidly.
e impact of domestic outsourcing on the overall demand for information technology employ-
ment through 2020 is most likely quite small. Service provider firms, such as Hewlett-Packard and
Accenture, add domestic IT employees as they expand their domestic IT services, while domestic
information systems departments lose some employees or donot hire new employees.
Chapter 1 Learning Track 2 6
Ination in Indian wages for technology work, coupled with the additional management costs
incurred in outsourcing projects, is leading to a counter movement of jobs back to the United
States. Moreover, while technical IS jobs can be outsourced easily, all those management and orga-
nizational tasks required in systems development—including business process design, customer
interface, and supply chain management—often remain in the United States. e net result is that
oshore outsourcing will increase demand in the United States for managerial IS positions, while
negatively impacting lower-level technical jobs.
Given all these factors in the IT labor market, on what kinds of skills should information
system majors focus? Following is a list of general skills we believe will optimize employment
opportunities:
◆ An in-depth knowledge of how new and emerging hardware and software can be used by busi-
