The Importance Of Management Information System PDF

Cavite State University CARMONA CAMPUS The Importance of Management Information System Prepared: Jhumel C. Ignas, MIT  The Digital Revolution Cavite StateFOR BEST University You...

Cavite State University CARMONA CAMPUS The Importance of Management Information System Prepared: Jhumel C. Ignas, MIT  The Digital Revolution Cavite StateFOR BEST University You CARMONA CAMPUS 2 O R G A N I C S C O M P A N Y You’ve probably heard that we live in the Information Age Cavite StateFOR BEST University You CARMONA CAMPUS 3 O R G A N I C S C O M P A N Y  This period is history where the production, distribution, and control of information is the primary driver of the economy Cavite StateFOR BEST University You CARMONA CAMPUS 4 O R G A N I C S C O M P A N Y  The Information Age started in the 1970s with the Digital Revolution, or the conversion from mechanical and analog devices to digital devices. This shift to digital devices meant monumental changes for companies, individuals, and our society as a whole. Cavite StateFOR BEST University You CARMONA CAMPUS 5 O R G A N I C S C O M P A N Y  The Digital Revolution didn’t just mean that new “digital” equipment was replacing old mechanical, or analog, equipment. These new digital devices could now be connected to other digital devices and share data among themselves. Cavite StateFOR BEST University You CARMONA CAMPUS 6 O R G A N I C S C O M P A N Y  They could also work faster as processor speed increased. In 1972, computer scientist Gordon Bell recognized that these digital devices would change the world as they evolved and became widely used. Cavite StateFOR BEST University You CARMONA CAMPUS 7 O R G A N I C S C O M P A N Y He formulated Bell’s Law, which states that “a new computer class forms roughly each decade establishing a new industry.” Cavite StateFOR BEST University You CARMONA CAMPUS 8 O R G A N I C S C O M P A N Y In other words, digital devices will evolve so quickly that they will enable new platforms, programming environments, industries, networks, and information systems every 10 years. Cavite StateFOR BEST University You CARMONA CAMPUS 9 O R G A N I C S C O M P A N Y  And it has happened just as Bell predicted. About every 10 years since 1970, entirely new classes of digital devices have emerged. They have created entirely new industries, companies, and platforms. Cavite StateFOR BEST University You CARMONA CAMPUS 10 O R G A N I C S C O M P A N Y In the 1980s, we saw the rise of the personal computer (PC) and small local networks. In the 1990s, we saw the rise of the Internet and widespread adoption of cellular phones. In the 2000s, we saw a push toward making all “things” network-enabled. Cavite StateFOR BEST University You CARMONA CAMPUS 11 O R G A N I C S C O M P A N Y The evolution of digital technology has fundamentally altered businesses and become a primary driver of corporate profitability. And it will probably continue to do so for at least the next few decades. The key to understanding how businesses will be affected by this digital evolution is understanding the forces pushing the evolution of these new digital devices. Cavite StateFOR BEST University You CARMONA CAMPUS 12 O R G A N I C S C O M P A N Y Evolving Capabilities Cavite StateFOR BEST University You CARMONA CAMPUS 13 O R G A N I C S C O M P A N Y  Let’s imagine your body is evolving at the same rate as digital devices. Suppose you can run 8 miles per hour today. That’s about average. Now suppose, hypothetically, that your body is changing so quickly that you can run twice as fast every 18 months. In 18 months, you’d be able to run 16 mph. Cavite StateFOR BEST University You CARMONA CAMPUS 14 O R G A N I C S C O M P A N Y  In another 18 months, you’d be at 32 mph. Then 64, 128, 256, and 512. Then, after 10 1/2 years of growth, you’d be running 1,024 mph—on foot! How would this change your life? Cavite StateFOR BEST University You CARMONA CAMPUS 15 O R G A N I C S C O M P A N Y Well, you’d certainly give up your car. It would be much too slow. Air travel would also probably be a thing of the past. You could start a very profitable package delivery business and quickly corner the market. You could live outside of the city because your commute would be shorter. Cavite StateFOR BEST University You CARMONA CAMPUS 16 O R G A N I C S C O M P A N Y  And this is the key point—not only would you change, but what you do and how you do it would also change. This is Bell’s Law. Cavite StateFOR BEST University You CARMONA CAMPUS 17 O R G A N I C S C O M P A N Y Moore’s Law Cavite StateFOR BEST University You CARMONA CAMPUS 18 O R G A N I C S C O M P A N Y  In 1965, Gordon Moore, cofounder of Intel Corporation, stated that because of technology improvements in electronic chip design and manufacturing, “The number of transistors per square inch on an integrated chip doubles every 18 months.” This became known as Moore’s Law. Cavite StateFOR BEST University You CARMONA CAMPUS 19 O R G A N I C S C O M P A N Y  Metcalfe’s Law Cavite StateFOR BEST University You CARMONA CAMPUS 20 O R G A N I C S C O M P A N Y Another fundamental force that is changing digital devices is Metcalfe’s Law, named after Robert Metcalfe the inventor of Ethernet. Cavite StateFOR BEST University You CARMONA CAMPUS 21 O R G A N I C S C O M P A N Y Metcalfe’s Law states that the value of a network is equal to the square of the number of users connected to it. In other words, as more digital devices are connected together, the value of that network will increase. Cavite StateFOR BEST University You CARMONA CAMPUS 22 O R G A N I C S C O M P A N Y Cavite StateFOR BEST University You CARMONA CAMPUS 23 O R G A N I C S C O M P A N Y  As more users gained access to the Internet, it became more valuable. The dot-com boom ushered in tech giants like Google, Amazon, and eBay. None of these companies would have existed without large numbers of users connected to the Internet. Cavite StateFOR BEST University You CARMONA CAMPUS 24 O R G A N I C S C O M P A N Y  The more people they can get in their network, the more their company will be worth. And look at the network effects of using products like Microsoft Word. Why do you pay for Microsoft Word when you could use a free word processor like LibreOffice Writer? Cavite StateFOR BEST University You CARMONA CAMPUS 25 O R G A N I C S C O M P A N Y You pay for Microsoft Word because everyone else uses it. Cavite StateFOR BEST University You CARMONA CAMPUS 26 O R G A N I C S C O M P A N Y  Other Forces Pushing Digital Change Cavite StateFOR BEST University You CARMONA CAMPUS 27 O R G A N I C S C O M P A N Y  And it’s not just the number of users on the network that’s changing the way we use digital devices—it’s the speed of the network. Cavite StateFOR BEST University You CARMONA CAMPUS 28 O R G A N I C S C O M P A N Y Nielsen’s Law, named after Jakob Nielsen, says that network connection speeds for high-end users will increase by 50 percent per year. As networks become faster, new companies, new products, and new platforms will emerge. Cavite StateFOR BEST University You CARMONA CAMPUS 29 O R G A N I C S C O M P A N Y  YouTube, for example, started in February 2005 when there wasn’t a lot of video shared over the Internet. But average Internet speeds were increasing to the point where a typical Internet connection could handle a stream of YouTube videos. Cavite StateFOR BEST University You CARMONA CAMPUS 30 O R G A N I C S C O M P A N Y By November 2006, the company was bought by Google for $1.65B. If you’re counting, that’s less than 2 years to create a billion-dollar company. Network speed matters. Cavite StateFOR BEST University You CARMONA CAMPUS 31 O R G A N I C S C O M P A N Y  The question is, why didn’t Google, Microsoft, IBM, or Apple think of video sharing before the YouTube founders? Cavite StateFOR BEST University You CARMONA CAMPUS 32 O R G A N I C S C O M P A N Y There are other forces changing digital devices beyond Nielsen’s Law, Metcalfe’s Law, and Moore’s Law Kryder’s Law Cavite StateFOR BEST University You CARMONA CAMPUS 33 O R G A N I C S C O M P A N Y  Kryder’s Law, named after Mark Kryder, the former chief technology officer of Seagate Corp., says that the storage density on magnetic disks is increasing at an exponential rate. Cavite StateFOR BEST University You CARMONA CAMPUS 34 O R G A N I C S C O M P A N Y Digital storage is so important that it’s typically the first question you ask when you buy a new computer, smartphone, or tablet. There’s also power consumption, image resolution, and interconnectivity between devices all of which are changing, too. And this isn’t a complete list. Cavite StateFOR BEST University You CARMONA CAMPUS 35 O R G A N I C S C O M P A N Y Cavite StateFOR BEST University You CARMONA CAMPUS 36 O R G A N I C S C O M P A N Y  MIS will show you how technology is fundamentally changing world. Cavite StateFOR BEST University You CARMONA CAMPUS 37 O R G A N I C S C O M P A N Y  You’ll learn why industries are constantly trying to find ways to use new technology to create a sustainable competitive advantage. Cavite StateFOR BEST University You CARMONA CAMPUS 38 O R G A N I C S C O M P A N Y Future business professionals need to be able to assess, evaluate, and apply emerging information technology to business. Cavite StateFOR BEST University You CARMONA CAMPUS 39 O R G A N I C S C O M P A N Y Cavite State University CARMONA CAMPUS Thank You Jhumel C. Ignas, MIT [email protected]