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Chapter 1
Why Information Systems
Matter
Information Systems Today
Why IS Matters
Leonard Jessup
Joseph Valacich
Ticketmaster uses the following
to provide services to clients:
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A mix of online services, cutting-edge
technology, and traditional distribution
Handheld computer applications
“Citysearch” Web sites
Wireless technologies
All of the above
Ticketmaster uses the following
to provide services to clients:





A mix of online services, cutting-edge
technology, and traditional distribution
Handheld computer applications
“Citysearch” Web sites
Wireless technologies
All of the above
Ticketmaster uses all of these, and is constantly
Ticketmaster
uses all
these,toand
is constantly
on the
on the lookout
forofways
integrate
cuttinglookout
for technologies
ways to integrate
cutting-edge
edge
and
systems technologies
into its
and systems into its business.
business
The key elements of information
systems consist of all of the
following:
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Hardware, software, and telecommunications
networks
Hardware, software, telecommunications
networks, data, and people
Hardware and software
Hardware, software, and users
Users and data
The key elements of information
systems consist of all of the
following:



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Hardware, software, and telecommunications
networks
Hardware, software, telecommunications
networks, data, and people
Hardware and software
Hardware, software, and users
Users and data
Information
systems
have
five
key
elements:
hardware,
Information
systems
have
five
key
elements:
hardware,
software,
andpeople,
the telecommunications
networks that
software,
data,
and the telecommunications
networks
people
build
and
use
to to
collect,
create,
and
distribute
data.
that
people
build
and
use
collect,
create,
and
distribute
data
The core component of an
information system is the:



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Computer
E-mail system
Communications system
Computer chip
User
The core component of an
information system is the:





Computer
E-mail system
Communications system
Computer chip
User
The
Thecore
corecomponent
componentofofinformation
informationsystems
systemsisisthe
the
computer,
computer,which,
which,like
likeinformation
informationsystems
systemsthemselves,
themselves,
have
havechanged
changeddramatically
dramaticallyover
overthe
thepast
pastfew
fewyears.
years
Discuss with your neighbor how information systems are
used in your school
The early phase of the current
economic recovery was:

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hiring intensive.
a jobless recovery.
lacking global competitiveness.
a boom for technology stocks.
driven by the popular business press.
The early phase of the current
economic recovery was:
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
hiring intensive.
a jobless recovery.
lacking global competitiveness.
a boom for technology stocks.
driven by the popular business press.
While companies have begun to spend money on IS
projects, they are looking for a good return on investments.
As businesses increased their use of IS, they became more
productive with fewer employees
What will emerge as the number of
knowledge workers and their
importance increases?
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A new economy
More colleges and universities
A knowledge society
A wired economy
A digital economy
What will emerge as the number of
knowledge workers and their
importance increases?
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

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A new economy
More colleges and universities
A knowledge society
A wired economy
A digital economy
Peter Drucker predicted this rise in the importance of IT
and information, explaining that education would become a
cornerstone for the knowledge society
Other writers have offered names for
this knowledge society, including all of
the following except:
 Network society
 New economy
 Digital divide
 Network era
 Internet era
Other writers have offered names for
this knowledge society, including all of
the following except:

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Network society
New economy
Digital divide
Network era
Internet era
Drucker’s knowledge society has been termed many names
by different writers. Castell wrote about the network society,
Wired magazine called it the new economy, and others have
termed it the digital society, the network era, and the Internet
era
The difference between data
and information is:
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Data is raw material, while information is data stored on
computer systems.
Data has meaning, while information has none.
You format data, but information is not formatted.
You transform data into information.
Information is raw material, while data is stored on
computer systems.
The difference between data
and information is:
Data is raw material, while information is data stored on
computer systems.
 Data has meaning, while information has none.
 You format data, but information is not formatted.
 You transform data into information.
 Information is raw material, while data is stored on
computer systems.
Data is raw material that has no meaning unto itself. It is
transformed into information, often with the assistance of
information systems

Think of an example of the way we transform data into
information. Discuss with a classmate
Guidelines and rules are an
example of:

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
Information
Knowledge
Wisdom
Development
Study
Guidelines and rules are an
example of:

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


Information
Knowledge
Wisdom
Development
Study
Knowledge is needed to understand the relationship
between different pieces of information, while wisdom is
accumulated knowledge, allowing you to apply concepts
from one domain or experience to another
Information technologies combine
machine technologies with ________.
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manufacturing robots
information systems
computing and networking technologies
mechanical and electrical systems
basic technology
Information technologies combine
machine technologies with ________.
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manufacturing robots
information systems
computing and networking technologies
mechanical and electrical systems
basic technology
Machine technologies are used as building blocks and
combined with computing and networking technologies
Can you think of examples of these combined
technologies? Discuss them with your neighbor
The person in an organization responsible
for integrating technology and strategy is
the ________.
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CTO
CIO
CEO
systems analyst
Webmaster
The person in an organization responsible
for integrating technology and strategy is
the ________.
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CTO
CIO
CEO
systems analyst
Webmaster
Most large organizations have a CIO who participates in
strategic decision making when technology will play a
major role
The ____ guides the course for a
technology company’s technology
products.
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Chief Technical Officer
Chief Information Officer
Chief Executive Officer
Chief Products Officer
Chief Technology Officer
The ____ guides the course for a
technology company’s technology
products.
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Chief Technical Officer
Chief Information Officer
Chief Executive Officer
Chief Products Officer
Chief Technology Officer
The Chief Technology Officer helps to chart this course
What are some other careers in the information systems
field? What is involved with these positions? Discuss
these with your neighbor
Knowledge and skills in hardware,
software, networking, and security
are examples of ______.
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business skills
systems analysis
business competency
technical skills
organizational abilities
Knowledge and skills in hardware,
software, networking, and security
are examples of ______.
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business skills
systems analysis
business competency
technical skills
organizational abilities
These are all examples of technical knowledge and skills.
The technical area of competency is difficult to maintain
because technologies change so rapidly
Development methodologies, critical
thinking, and problem solving are
examples of _______.
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technical knowledge and skills
business knowledge and skills
IS managerial skills
systems knowledge and skills
None of the above.
Development methodologies, critical
thinking, and problem solving are
examples of _______.
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technical knowledge and skills
business knowledge and skills
IS managerial skills
systems knowledge and skills
None of the above.
Systems competency sets the IS professional apart from
those who possess only technical skills, allowing them to
manage complex systems projects and personnel
Discuss the importance of several IS core competencies to
the organization with your neighbor
Which systems are typically bought “offthe-shelf” and enable people to perform
their own work and work with others?
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Transaction processing systems
Office automation systems
Management information systems
Expert systems
Decision support systems
Which systems are typically bought
“off-the-shelf” and enable people to
perform their own work?
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Transaction processing systems
Office automation systems
Management information systems
Expert systems
Decision support systems
Office automation and collaboration systems provide word
processing, spreadsheet, and other productivity tools
What are these other systems used for? Discuss their
uses with your class
Organizations use technology
strategically to achieve:
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efficiency.
a return on investment.
a competitive advantage.
having the latest and greatest tools.
security.
Organizations use technology
strategically to achieve:

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


efficiency.
a return on investment.
a competitive advantage.
having the latest and greatest tools.
security.
Organizations’ technology use can be strategic and is a
powerful enabler in gaining and sustaining competitive
advantages
An example of the new IS
culture would be:
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huge project backlogs.
control of computing resources.
informing users what they can and cannot do.
service mentality.
cheap systems.
An example of the new IS
culture would be:





huge project backlogs.
control of computing resources.
informing users what they can and cannot do.
service mentality.
cheap systems.
The new IS culture follows the idea of great customer
service, with the IS staff improving their operations and
relationships with the rest of the organization. They have
taken on a more consulting relationship and are there now
to assist users in solving problems
Today, centralized IS planning,
management, and deployment helps
achieve:
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economies of scale in systems acquisition.
optimization of systems integration.
optimization of enterprise networking.
economies of scale in development.
All of the above.
Today, centralized IS planning,
management, and deployment helps
achieve:





economies of scale in systems acquisition.
optimization of systems integration.
optimization of enterprise networking.
economies of scale in development.
All of the above.
Even as information systems are used more broadly
throughout the organization, and organizations are
decentralizing technology and related decisions, there is a
need for centralized IS planning, management, and
deployment and coordination throughout the enterprise
Routine jobs and tasks that are being
conducted by people in other firms or
locations are considered ____________.
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downsized
rightsized
streamlined
outsourced
productive
Routine jobs and tasks that are being
conducted by people in other firms or
locations are considered ____________.

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downsized
rightsized
streamlined
outsourced
productive
Many routine jobs are outsourced to other companies
around the world in order for the organization to return its
emphasis to its core competencies or to reduce expenses
By 2008, global outsourcing of
information technology will:
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no longer be viable.
enable a $120 billion increase in the U.S. real
gross domestic product.
cost 100 million U.S. jobs.
shift from China to India.
be 50% of the total spending for software and
services by U.S. organizations.
By 2008, global outsourcing of
information technology will:





no longer be viable.
enable a $120 billion increase in the U.S. real
gross domestic product.
cost 100 million U.S. jobs.
Sshift from China to India.
be 50% of the total spending for software and
services by U.S. organizations.
The cost savings will from global outsourcing will enable a
huge increase in the GDP from companies spending about
$31 billion