Chapter 1: The Importance of MIS - Textbook Sample

Here is the transcription of the provided text into a structured markdown format: # Chapter 1 The Importance of MIS ## 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-...

Here is the transcription of the provided text into a structured markdown format: # Chapter 1 The Importance of MIS ## 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 System? - Q1-6 What Is the Shape of Things to Come? - Q1-7 What Is This Course About? **KE** Chapter 1 optional knowledge extension is Knowledge Extension 1: Collaboration Information Systems for Decision Making, Problem Solving, and Project Management available in the MyLab MIS. ## MIS in Action *“Fired? You're firing me?"* *“Well, fired is a harsh word, but...well, Falcon Security has no further need for your services.”* *“But, Joni, I don't get it. I really don't. I worked hard, and I did everything you told me to do."* *“Jennifer, that's just it. You did everything I told you to do.”* *“I put in so many hours. How could you fire me?”* *“Your job was to find ways to reduce our fleet costs using 3D printing."* *“Right! And I did that.”* *“No, you didn't. You followed up on ideas that I gave you. But we don't need someone who can follow up on my plans. We need someone who can figure out what we need to do, create her own plans, and bring them back to me.... and others."* *"How could you expect me to do that? I've only been here six months!"* *“It's called initiative and teamwork. Sure, you're just learning our business, but I made sure all of our senior staff would be available to you..."* *"I didn't want to bother them."* *“Well, you succeeded. I asked Cam what she thought of the plans you're working on. 'Who's Jennifer?' she asked."* *“But doesn't she work down at the hangar?”* *"Right. She's the operations manager... and it would probably be worthwhile talking to her."* *"I'll go do that!"* *"Jennifer, do you see what just happened? I gave you an idea and you said you'd do it. That's not what I need. I need you to find solutions on your own."* Image is a drawn illustration of two businesswomen sitting at a desk in a modern office setting. One woman is blonde and wearing a green button-down shirt while talking, the second women has brown hair and is in an armchair. Both women are attentive during the conversation in progress. *"I worked really hard. I put in a lot of hours. I've got all these reports written."* *"Has anyone seen them?"* *"I talked to you about some of them. But I was waiting until I was satisfied with them."* *"Right. That's not how we do things here. We develop ideas and then kick them around with each other. Nobody has all the smarts. Our plans get better when we comment and rework them... I think I told you that."* *"Maybe you did. But I'm just not comfortable with that."* *"Well, it's a key skill here."* *"I know I can do this job."* *"Jennifer, you've been here almost six months; you have a degree in business. Several weeks ago, I asked you for your first idea for a process that would identify potential drones, or drone parts, that could be 3D- printed. Do you remember what you said?"* *"Yes, I wasn't sure how to proceed. I didn't want to just throw something out that might not work."* *"But how would you find out if it would work?"* *"I don't want to waste money..."* *"No, you don't. So, when you didn't get very far with that task, I backed up and asked you to send me a list of parts that could be printed based on our existing drones, a list of replacement repair parts we buy on a regular basis, the specifications for future drones that we might buy, and a description of how existing 3D-printed drones are made. Not details, just an overview."* *"Yes, I sent you those part lists and specifications.”* *"Jennifer, they made no sense. Your lists included parts that can't be 3D-printed, and your list of potential future drones included models that can't even carry cameras."* *"I know which parts can be printed, I just wasn't sure which ones to include. But I'll try again!"* *"Well, I appreciate that attitude, but we're a small company, really still a startup in many ways. Everyone needs to pull more than their own weight here. Maybe if we were a bigger company, I'd be able to find a spot for you, see if we could bring you along. But we can't afford to do that now.”* *"What about my references?"* *“I'll be happy to tell anyone that you're reliable, that you work 40 to 45 hours a week, and that you're honest and have integrity.”* *"Those are important!"* *“Yes, they are. But today, they're not enough.”* For many, the concept of an information system can be difficult to define and understand. Despite the fact that information systems underlie some of the most popular services available (such as Facebook, Amazon, Netflix, and Google (four companies often referred to as the “Fang economy") or Twitter, Uber, Instagram, and Snapchat), for most people the overwhelming majority of our interactions with such systems involve only the "front end" or "user interface" with little thought to what is actually occurring on the "back end" or behind the scenes. In much the same way that it is possible to cook with a microwave oven while knowing only how to set the power level and time controls rather than understanding how a magnetron functions or the physics of microwaves, information systems often operate like an invisible but powerful magic box. The effect of information systems however has been far from invisible. In fact the effects of information systems have been so large and so widespread that it is difficult to imagine an industry or organization that has not been affected. Whether we consider the largest for-profit corporations, the smallest sole proprietorship business, any level of government, or nonprofit agencies, the accelerating rate of technology adoption has enabled changes that are difficult to believe. Entire industries, such as publishing and distribution, photography, music, and news, have either fallen or been radically restructured, and newer organizations, such as Google, Airbnb, Uber, Pinterest, and Facebook, have displaced giants in relatively short time periods. With this in mind, we can say with some certainty that having a foundational understanding of management information systems (MIS) and the key concepts of information technology is essential not only for a career in business but also to be an informed and knowledgeable member of society. Regardless of whether you plan to be involved in accounting, finance, marketing, human resources, or international business, and irrespective of whether your personal goal is to create significant wealth or make a positive impact on society (or perhaps both), the purpose of Part 1 of this textbook is to demonstrate why a basic understanding of MIS and technology are important to every professional today. ## Q1-1. What is an Information System? A system is a group of components that interact to achieve some purpose. As you might guess, an information system (IS) is a group of components that interact to produce information. However, while true, this definition raises two questions: Do all information systems involve technology, and what are the interacting components? As it turns out, these seemingly simple questions remain uncomplicated if we only have common or conversational definitions for information and technology. For now, if we consider that most people think of technology as involving computers (at least when thinking about information systems and information technology) and consider information as something that reduces uncertainty, then we can confidently say that not all information systems require computerization. For example, a public library organized with the Dewey Decimal System or a calendar posted outside a conference room that is used to organize bookings can both be considered information systems, even though they may not be computerized. Later we will provide much clearer definitions for information and a structure in which to discuss technology. But for now, if we accept the common definitions, we can then describe a computerized information system (which we will now simply call an Information System, since that is the focus of this course) as illustrated in Figure 1-1. In this figure, we show that all information systems, from the simple (someone using a smartphone to find out when the next bus arrives) through to the most complicated (a high-technology Customer Relationship Management (CRM) system that uses algorithms and databases to predict customer behaviours), comprise a five-component framework of computer hardware, software, data, procedures, and people. **Figure 1-1 Five Components of an Information System** | Hardware | Software | Data | Procedures | People | | ------ | ------ | ------ | ------ | ------ | These five components are often linked through networks that leverage the power of connectivity to tie software, hardware, and data together to make information more accessible and powerful. Social networks, such as Facebook and LinkedIn, and systems, such as Alibaba and Uber, use the Internet to eliminate the effects of distance and to allow people to remain connected and interact in new ways. You may already be familiar with the term hardware. Hardware has sometimes been used erroneously to refer to all the tangible or physical aspects of a computer system. More correctly, hardware refers to the electronic components and associated gadgetry that constitute a computer system. CDs, for example, do not technically qualify as hardware. Software, which has occasionally been used to refer to all the intangible or non-hardware components of a system, is nowadays more correctly used to refer only to programs (or applications) that run, or operate, on computer systems. The correct use of these terms is maintained throughout this book. Data are the basic building blocks of information, such as facts and observations. Procedures are the instructions or processes that you follow to achieve your desired objective; these can be formal and documented policies that are extensive and written down or less detailed, informal instructions. People are the actors who want to achieve a particular outcome by interacting with the system. Let us look at what is hopefully a familiar example—the support system that your university or college uses to provide active learning (perhaps even in this course), such as Moodle, Canvas, or Desire2Learn. Like all systems, it has all five components illustrated in Figure 1-1, and, like many, it makes extensive use of networking technology. The hardware of the system includes the electronic devices used to access the system, such as tablets, computers, or smartphones. It is important to note that although most modern computer systems are designed to be used by multiple types of devices, there are still cases where specific types of hardware are required. The software of the system includes the stored set of instructions that run on your device, as well as the specific program that your university or college has licensed to provide the service. Data for the system may be stored on specialized computers called servers, which, through the power of networking, can be located almost anywhere in the world. Data for this system include such things as student identification numbers, enrollment dates, and answers to test questions. The system procedures are the steps that you follow to achieve your goal and include how you log on to, or access, the system and how you save or submit your work. You are one of the people in this system, but so are the IS professionals who built and maintain the site. Information systems are not just computers and data. An important point to learn in this course is that people are often the most critical part of an information system. Although we have not yet covered the communications aspects of modern information systems, in many cases, not only must systems be available to thousands, if not millions, of people at all hours of the day, but also they may use varying devices and be located in different places. Tying them all together is a network infrastructure. ## 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. The definition of MIS has three key elements: development and use, information systems, and goals and objectives. We have just discussed information systems. Now, let us consider development and use, followed by goals and objectives. ### Development and Use of Information Systems Information systems do not magically appear. Instead, they are designed and created by business analysts and systems designers at the request of senior managers or entrepreneurs in order to solve a particular problem or meet a perceived need. With this in mind, you might be thinking, "Wait a minute. I am a finance (or accounting, or marketing) major, not an information systems major. I do not need to know how to put together information systems" or (as we have been told by students in our classes), “I know what I want, I can get my staff to do it." This could be a sign that you are headed for trouble. Consider, for example, that you are driving to work and you hear a strange noise from your car or you remember that it is due for some maintenance work. Imagine how an unscrupulous or perhaps mistaken person could talk you into a major engine repair, even if all you needed was air in your tires or to replace an inexpensive part. Think about how knowing even just a little about the basic operation of the car would enable you to have a much more insightful discussion with your mechanic, get better performance, and avoid being overcharged. A lack of easily obtainable knowledge could be quite detrimental to your wallet. Throughout your career, in whatever field you choose, you will need new information systems. To have an information system that meets your requirements, you should take an active role in that system's development. Without active involvement on your part, only good luck can enable the new system to meet your needs. Throughout this book we will discuss your role in acquiring information systems (Chapter 10 is specifically focused on this important topic). As you read this book (perhaps electronically) and think about information systems, you will learn how to ask critical questions, such as "Where did that information come from?” “What new information or opportunities are enabled by technology?” “How was that system constructed?" and "What roles did the actual people who will use it play in its development?" Important consequences could depend on your answers so, if you start thinking about these questions now, you will be better prepared to address them later. In addition to helping choose and implement information systems, you will have important roles to play in the use of information systems. Of course, you will need to learn how to employ the system to accomplish your goals. But you will also have other important functions. For example, when using corporate information systems, you may be responsible for protecting the security of the system and its data. When managing your own computer and system usage, you may need to back up data to protect yourself from losing important information. If the system fails (and most do at some point), you may have tasks to perform while the system is down to help restore the system quickly and correctly. ### Achieving Business Goals and Objectives The last part of the definition of MIS is that information systems exist to help organizations achieve their goals and objectives. This statement has many important implications. First, because all businesses are organizations but not all organizations are businesses, information systems are found in almost every type of enterprise, social, and nonprofit organization, as well as all levels of government. Indeed, we believe it is easier to find an organization without a marketing system than to find one without an information system. (Consider, for example, the justice system. Although prisons do not generally run advertising campaigns, they still have computerized systems for keeping track of prisoners.) More importantly, you are probably aware that organizations at a conceptual level do not really do anything. Although corporations are legally considered to have many of the characteristics of humans, they are not truly living beings and, thus, need people to think and act on their behalf. It is the people within an organization or business who sell, buy, design, produce, finance, market, account, and manage. Information systems exist to help organizational actors achieve the goals and objectives of that organization. ## MIS in Use **Social Media: Changing the Relationship Between Customers and Business** Social media connect people, and when people connect, they talk, share, and let others know what they think about the world. When instant messaging (IM), web logs (blogs), wikis, video logs, podcasts, and an additional assortment of social networking (SN) sites first became popular, many business organizations responded by simply ignoring them. From a pure financial perspective, many SN sites did not, and may never, make positive cash flows; as a result, it seemed that there were few good business reasons to consider using social media. Some organizations, therefore, allowed only limited access to IM and SN sites because they did not want their employees wasting time on these sites while at work. Some organizations even created policies that restrained employees from responding to blogs about the company. Companies rapidly learned that ignoring social media could be bad for business. For example, video recording of passenger David Dao being physically removed from an overbooked United Airlines flight was shared millions of times and resulted in a 4% drop (more than a billion dollars) in the United stock price. United Airlines, of course, is not alone (and this was not their first negative experience with social media). Governments, large organizations, and even individuals have had to learn to deal with the influence that connectedness can bring to bear on social issues (including the Arab Spring and HeforShe, movements that advocate for government change and to reduce gender inequality). ### Some Examples of Using Social Media As social media mature, organizations are formulating strategies that incorporate blogs, wikis, and SN sites into their business practices. For example, SCENE cards offered by Scotiabank and Cineplex have been used by Facebook (www.facebook.com/SCENE) to provide special offers and events that support the use of the cards. Another example is Deloitte Pixel (https://www2.deloitte.com/us /en/pages/operations/solutions/enterprise-crowdsourcing-solution- pixel.html), which provides a platform to organizations to crowdsource various aspects of idea generation, selection or execution using best practices rather than individually building their own mechanisms. Combining machine learning and adapted for multiple devices (including mobile) this website showcases various approaches and use cases. Similarly, the Big Wild (www.thebigwild.org) was founded by the Canadian Parks and Wilderness Society (CPAWS) and Mountain Equipment Co-op to allow people to share pictures and videos of wild spaces and to connect with others who are interested in preserving these areas. ### What About Small Business? The examples above are all large organizations, but perhaps the most exciting thing about social media has been its impact on small businesses. Mabel's Labels, a company based in Hamilton, Ontario, is a great example of how a small company can effectively use social media. Mabel's Labels has a blog called The Mabelhood (http://blog.mabelslabels.com/), a podcast series on parenting, a Facebook fan page, a Twitter account (twitter.com/mabelhood), a photostream on Flickr, and a YouTube account. All these social media channels help Mabel's Labels connect with customers and increase the size of the network familiar with their products. Social media are changing the way small businesses connect with their customers, and this is a message that entrepreneurs everywhere are listening to. ### Questions 1. Are the social media sites that Mabel's Labels uses information systems? 2. What are the benefits and costs of Mabel's Labels' participation in various social media sites? 3. Can larger companies do the same social media marketing and promotion that Mabel's Labels does? Do small businesses have an advantage in social media over larger organizations? Justify your answers. 4. What risks does Mabel's Labels face in its social networking strategy? That is, what are the downsides of using social media for small businesses? 5. Not all social media sites make money or make a direct and measurable financial contribution to organizations' bottom lines. Will this always be the case, and how will this fact affect management in planning social media initiatives? In most cases, information systems are not developed for the sheer joy of exploring technology. They are not created to make the company more modern or so the company can claim to be part of the “new-economy.” They are not created because the information systems department thinks they need to be created or because an executive thinks the company is "falling behind the technology curve." This may seem so obvious that you wonder why we mention it, but every day organizations acquire and develop information systems for the wrong reasons. Right now, somewhere in the world, a company is probably creating a website simply because they think “every other business has one" or "their competitor might put up a site," rather than asking important questions such as "What is the purpose of the website?” “What is it going to do for us?” or “Are the costs of the website sufficiently offset by the benefits?" Even more seriously, somewhere right now, a business manager has likely been convinced by a technology vendor's sales team or by an article in a business magazine that his or her company must upgrade to the latest, greatest high-tech gadget or application. In turn, this manager then attempts to convince his or her senior team member(s) that this expensive upgrade is a good idea. We hope that someone, somewhere, in the company (perhaps you) is asking questions, such as “What business goal or objective will be served by the investment in the gadget? Do we really need it, and does it add value for our customers?" Throughout this book, we will consider many different information system types and underlying technologies. We will show the benefits of these systems and technologies, and we will illustrate successful implementations of each. The “MIS in Use" cases provided throughout the book discuss information systems in real-world organizations. As a future business professional and as a member of society, you need to learn to include your assessment of information systems and technologies through the lens of organizational need. Learn to ask, “All this technology may be great in and of itself, but what will it do for us? What will it do for our business and our particular goals? Is it worth the investment?" Again, MIS is the development and use of information systems that help organizations achieve their goals and objectives. Already you should be realizing that there is much more to this course than buying a tablet, writing a program, downloading an application for your smartphone, or working with a spreadsheet. ## Q1-3 How Does an IS Differ from IT? Information technology and information system are two closely related terms, and although they are often used interchangeably, they are different. Information technology (IT) refers to methods, inventions, standards, and products. As the term implies, IT refers to raw technology, and it concerns only the hardware, software, and data components of an information system and how they are networked together. In contrast, information system (IS) refers to a system of hardware, software, data, procedures, and people who produce information. IT, by itself, will not help an organization achieve its goals and objectives. It is only when IT is embedded into an IS—that is, only when the technology within the hardware, software, and data is combined with the people and procedure components-that IT becomes useful. Think about this from the standpoint of your college or university's IS. Do you care that the university network uses the latest, greatest technology to send messages or that the website uses the latest, fastest hardware to show you available classes? Perhaps somewhat. However, it is likely when you and others are trying to use the procedures to do something- to enroll in a class, for example—that IS becomes increasingly relevant. Consider Falcon Security and their overall objectives. Although IT is used extensively, it is not the primary interest. Instead the goal is to combine the hardware, software, data, and procedures with people to grow the business and maintain and expand profitability. The people who will use these resources—customers, employees, and suppliers—are the most important part of the system. So, the real difference between IT and IS is that IS includes people. It turns out that if you include people and the way they work in how you think about IS, it makes a big difference in how you design and implement systems. Successful business people understand this crucial difference between IT and IS, and they take advantage of it, as we show in this chapter. ## Q1-4 How Important Are Information Systems to Our Economy? Information systems are an increasingly important part of the Canadian economy. Industry Canada is the federal government agency responsible for categorizing sectors and collecting information about them. The sector most closely related to the use of information systems in Canada is the Information and Communications Technology (ICT) sector. This sector is special because it provides products and services that other industries, such as retail, manufacturing, insurance, and banking, rely on to get their work done. For many people, the ICT sector is a "hidden" industry. Would it surprise you to know that in 2016 the ICT sector accounted for 4.4 percent of national GDP and generated $181 billion in revenue? The ICT sector includes companies involved in software and computer services, cable and other program distributors, telecommunication services, ICT manufacturing, and ICT wholesaling. Figure 1-2 shows the companies by ICT subsector and employee size. **Figure 1-2 Canada's ICT Sector, 2016** The first pie chart displays, Companies by ICT Sub-sector, 2016. The pie chart is comprised of Software & Computer Services for 89.2%, followed by ICT Wholesaling comprising 5.0%. ICT Manufacturing is comprised of 2.5% while Communications Services is comprised of 3.3%. The companies by employee size for Total ICT Sector, 2016 is also represented by a pie chart. 1-9 Employees comprises 86.0% while 10-49 Employees is comprised of 10.8%. Next in the pie chart breakdown is 50-100 Employees for 1.7% and 100+ Employees is comprised of 1.5% among the pie chart. Source: Reproduced with the permission of the Minister of Industry, 2017 In 2016, the Canadian ICT sector included over 39 000 companies. Most of these companies-more than 98 percent—had fewer than 100 employees. In 2016, only 100 companies in the ICT sector had more than 500 employees. In 2016, the ICT sector added $73 billion to the Canadian GDP, up 2.3% from 2015 and growth has been almost double that of the rest of the Canadian economy (at 1.2 percent). ICT industries are also the largest performer of research and development (R&D) in Canada, accounting for 30.8 percent of all private R&D in 2016. So, what should all these numbers mean to you? In a word, jobs. The total number of workers in the ICT sector in 2016 was 594 871. So, where are the jobs? Most of the employment gains have occurred in the software and computer-services industries. These service industries include software publishers, business-communications services, data processing, computer system design, and related services. While ICT manufacturing jobs, reflecting overall structural change, was flat at 6.0 percent in 2016, ICT sector employment as a whole grew at 1.7%, much faster than that of the overall economy which grew at 0.7%. What we learn from these employment numbers is that there will likely be more jobs in the future in what are termed “service” industries. These are industries that supply services that improve business processes, rather than those that mainly produce products. These service companies help other businesses more effectively use information systems across almost every industry in Canada. Even companies that make software are realizing that much of their revenue is based on services. In a recent study, Cushman (2008) noted that many large software development companies (such as Oracle and Seibel) derive more than half of their revenues from the services they provide and not from the software products they produce. These numbers indicate that understanding how to choose IT and implement it effectively is an increasingly important skill to have. You might be asking yourself, "Who are these people getting jobs in this industry, and what do they earn?" Employment in the ICT sector is usually characterized by a high level of education (typically post- secondary). In 2015, more than half of all ICT workers had a university degree; the Canadian workforce average is 28.8 percent. Figure 1-3 shows that employees in the ICT sector are relatively well paid. According to Industry Canada, workers in ICT industries earned, on average, $75 960 in 2016, 52.7 percent above the economy-wide average of $49 738. ICT wholesaling were the most highly paid at $80 860 followed by employees in the software and computer services industries with average earnings of $80 074. **Figure 1-3 Average Annual Earnings by Major ICT Industry, 2016** This horizontal bar chart contains the Average Annual Earnings by Major ICT Industry, 2016. The earnings for ICT Wholesaling rounds out to approximately $81,000 while Software & Computer Services earns around $80,000. The average earning is the Total ICT Sector is around $76,000 while Communications Services are around $69,000. Lastly, ICT Manufacturing earns around $62,000 while All Canadian Industries earnings are at nearly $50,000. Source: Reproduced with the permission of the Minister of Industry, 2017 So, what does all this mean to you? The information presented in this section should help you understand that information systems are an increasingly important part of our economy. In particular, the delivery of services (where people serve other businesses) is a growing area of employment. This employment can be financially rewarding, with higher-than-average salaries, but it is a very knowledge-intensive industry, where more than half of all workers possess a university degree. Students in the Canadian economy who are working toward becoming business professionals cannot ignore the importance of understanding and working with information systems. 1 www.ic.gc.ca 2 http://strategis.ic.gc.ca/epic/site/ict-tic.nsf/en/Home 3 The facts and graphs provided in this section come from the Canadian ICT Sector Profile, updated 2017.. 4 M. A. Cusumano, "The Changing Software Business: Moving from Products to Services," Computer 41, no. 1 (January 2008): 20-27. ## Q1-5 How Do Successful Business Professionals Use Information Systems? In a world where nearly everyone has a connected smartphone used to gather information during a meeting or to verify the status of a particular order, it can be easy to forget that Facebook was not started until 2004 and that the ten-year anniversary edition of the iPhone (the X) was only launched in November of 2017. However, in the years since customers have continued to be accustomed to yearly advances where devices are either smaller or more powerful (or both), services are faster and more reliable, and costs are either lower or services are greater for the same cost. In essence, capitalism, consumerism, and the global economy have resulted in a situation where organizations have to meet expectations of services and goods that are "free, perfect, and now”. “Free" in that they are either literally free or at least delivered at no visible cost to the consumer. For example, Twitter, Instagram, Facebook, and Google provide free access while typically earning their revenue in other ways such as advertising. If not free, then goods and services are usually supplied at a cost that is as low as it can be and price increases are minimized (inexpensive prices are often offset by high volume and low overhead (such as Netflix)). “Perfect” since they are expected not to contain any errors or mistakes and are competitive with or superior to alternatives. "Now" in that goods are delivered almost immediately and are usable and available 7 days a week 24 hours a day with zero wait or downtime. While much of the focus of this book (and perhaps your classes) will be on commerce and business, information systems underlie the structure of many more organizations than those charged with simply earning a profit (the excess of revenue over expenses). Indeed, information systems and the information that they create are so essential and embedded in the structure that they are frequently taken for granted and it is difficult to identify any organization that does not have some reliance on or an information system in its core and at the individual level it is hard to find anyone who does not use or interact with a variety of information systems every day. In the industrialized world, almost everyone is able to use email, access webpages, use word processors and spreadsheets, create presentations, and use instant messaging and location-based services on their smartphones. Although the ability to use such basic information systems is essential, this level of knowledge and use does not give anyone a competitive advantage in the workplace. To be effective in today's economy, you have to know how to do more than the basics. Business professionals need to expand their knowledge of mobile devices and applications that include project management software (e.g., Microsoft Project, OpenProject), business graphics (e.g., MS Visio, SmartDraw), and collaborative systems, such as Google Docs (http:// docs.google.com). Knowing how to use mobile devices and applications is a necessary first step. However, one of the most important tasks is to understand the technologies and businesses well enough to identify opportunities for innovation through technology and assess the potential risks. It is useful to have a wide range of skills in any industry. Notwithstanding, the fast changing pace of the global technological environment makes diversity a necessity. Business majors with specializations in information systems, marketing, accounting, human resources, international business, and finance are developing core skills that will continue to be in high demand in Canada and internationally. However, more can be done to establish a competitive edge. This fact is demonstrated in reports produced by the Information and Communications Technology Council (ICTC) of Canada (www.ictc-ctic.ca). In its 2017 report “The Next Talent Wave: Navigating the Digital Shift - Outlook 2021,” the ICTC lays out the challenge ahead for Canadian employers in this high-tech sector. The report identifies five key transformative technologies, Virtual and Augmented reality, 5G Mobile, 3D Printing, Blockchain, and Artificial Intelligence that join social media, mobile computing, applications, analytics, and cloud technology as major shapers of things to come. According to the ICTC, there will be a rather dramatic need for individuals with a core set of skills, including the following: * Technical skills * Specific technology and industry experience * Satisfactory communication and other business skills While the list of skills does begin with technological ones, do not underestimate how important communication and business skills are. Even in a high-tech sector, such as ICT, business skills are at the core of establishing and maintaining a competitive advantage. The report also outlines the difference between ICT industries and ICT user industries. ICT user industries comprise companies, organizations, and public sector bodies that use ICT in their operations—in other words, all the industries other than those companies in the ICT sector. For business majors, this is an important fact to keep in mind because it means that adding just a little bit of technical knowledge to your skills portfolio will increase your ability to work across a wide spectrum of industries. You might ask, “What jobs will these skilled individuals do?" The report lists five occupations that the ICTC believes will have above-average growth rates: * Computer and information systems managers * Computer engineers (except software engineers and designers) * Database analysts and database administrators * Computer programmers and interactive media developers * Graphic arts technicians Many of these appear to be business jobs and they are. Successful business professionals recognize that they can gain a competitive advantage and widen their opportunities by adding some technical knowledge to their business skills. The line between business and technology is rapidly blurring. Business professionals need to consider IT and IS when they think about the problems and opportunities that confront a department or organization. To remain productive, organizations in the Canadian economy will have to innovate. Much of this innovation will be driven by IT. To take advantage of this trend and be a part of the changes that are coming, you do not have to be a software programmer, data administrator, or network guru. Rather, you need to develop your business skills and then learn to think creatively about the challenges and opportunities in your business and organization and how you can apply new technology and knowledge of information systems to address these business needs. ## 01-6 What Is the Shape of Things to Come? Predictions of any kind can be difficult because innovation and human ingenuity are rarely linear. The five key technologies identified by ICTC are expected to have a large, ongoing influence on IT. In addition, a few general underlying ideas seem to continue to affect IT. Having knowledge of these ideas is useful for understanding how we got where we are and where we may be headed. Some concepts are obvious. Technology keeps getting easier to use. Think of how intuitive tablets have become. Most smartphone systems now offer some form of artificial intelligence speech recognition, and Global Positioning System (GPS) receivers talk to us using text-to-speech technology while we are driving. Much of the rise in ICT can be explained by a relatively short (four-page) article that Gordon Moore, co-founder of Intel, published in a 1965 edition of the magazine Electronics: *The complexity for minimum component costs has increased at a rate of roughly a factor of two per year.... Certainly over the short term this rate can be expected to continue, if not to increase.... That means