Management Information Systems Lecture Notes PDF

1. What is an information system? How does it work? 2. What are its management, organization, and technology components and why are complementary assets essential for ensuring that information systems provide genuine value for organizations? 3. How are information systems transforming busi...

1. What is an information system? How does it work? 2. What are its management, organization, and technology components and why are complementary assets essential for ensuring that information systems provide genuine value for organizations? 3. How are information systems transforming business, and why are they so essential for running and managing a business today? 4. What academic disciplines are used to study information systems and how does each contribute to an understanding of information systems?  Figure 1.5 shows that between 1999 and 2017, private business investment in information technology consisting of hardware, software, and communications equipment grew from 21 to 33 percent of all invested capital.  You can see the results of this large-scale spending around you every day by observing how people conduct business.  Changes in technology and new innovative business models have transformed social life and business practices. (How?)  More than 269 million Americans have mobile phones (81% of the population), 230 million of these people access the Internet using smartphones and tablets.  55% of the entire population now uses tablet computers, whose sales have increased dramatically.  200 million Americans use online social networks; 175 million use Facebook, while 54 million use Twitter.  Smartphones, social networking, texting, e-mailing, and webinars have all become essential tools of business because that’s where your customers, suppliers, and colleagues can be found.  By June 2017, more than 140 million businesses worldwide had dot- com Internet sites registered.  Today, 220 million Americans shop online, and 190 million will purchase online.  In 2017, FedEx moved about 16 million packages daily in 220 countries and territories around the world, and the United Parcel Service (UPS) moved more than 28 million packages daily.  Businesses are using information technology to sense and respond to rapidly changing customer demand, reduce inventories to the lowest possible levels, and achieve higher levels of operational efficiency.  As newspaper print readership continues to decline, online digital newspaper readership is growing at 10 percent annually.  Businesses are using social networking tools to connect their employees, customers, and managers worldwide.  Facebook attracted 214 million monthly visitors in 2018 in the United States and more than 2 billion worldwide.  Most Fortune 500 companies now have Facebook &Twitter pages.  Internet advertising continues to grow at more than 20 percent a year in the United States, reaching more than $107 billion in revenues in 2018.  What makes the MIS field the most exciting area of study in schools of business is the continuous change in technology, management, and business processes.  Four changes are of remarkable importance: 1. IT Innovations: - A continuing stream of information technology innovations is transforming the traditional business world. Examples include: - The emergence of cloud computing, - the growth of a mobile digital business platform based on smartphones and tablet computers, - and the use of social networks by managers to achieve business objectives. - These innovations are enabling traditional firms to: - create new products and services, - develop new business models, and - transform the day- to-day conduct of business. 2. New Business Models: - For instance, the emergence of online video services for streaming or downloading, such as Netflix and Apple iTunes, has forever changed how premium video is distributed and even created. - Netflix in 2018 attracted more than 125 million subscribers worldwide to what it calls the “Internet TV revolution.” 3. E-commerce Expansion : - E-commerce is changing how firms design, produce, and deliver their products and services. - Facebook and other social networking sites such as YouTube, and Twitter, exemplify the new face of e-commerce in the twenty-first century. - They sell services not just physical products. - Information systems and technologies are the foundation of this new service-based e-commerce. - Mobile e-commerce hit $229 billion in 2017 and is growing at 30 percent a year. 4. Management Changes : - The management of business firms has changed: With new mobile smartphones, high-speed wireless Wi-Fi networks, and tablets, remote salespeople on the road are only seconds away from their managers’ questions and oversight. - Management is going mobile. - Managers on the move are in direct, continuous contact with their employees. - With the extraordinary rich data, managers have online, nearly instant access to the really important information they need for accurate and timely decisions. End of Lecture_3