Module_1_with_narration_text - Module 1: MIS and you 1....

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Module 1: MIS and you 1. Introduction This lecture is an introduction to the field of management information systems. First, we discuss the reasons information technology (IT) plays a prominent role in transforming business. Then, we define information systems (IS) as a wider concept encompassing IT. Finally, we describe the main characteristics of information. 2. Information technology transforms business Information technology (IT) is any technology that helps people and organizations to process, record, transmit and make sense of information. Computers, mobile phones and mp3 players are all information technology tools. Business documents, financial numbers, images of products, or even recorded business conversations are all information i.e. data that has meaning. Information is pervasive in business. Therefore, information technology is highly relevant to and very useful in business. However, the interest in IT in business circles is high not just because IT is useful. In the current period in the history of human civilization, the capabilities of information technology are growing very fast. This is often expressed as the so- called “Moor’s law”, which, stated in non-technical terms, asserts that IT capabilities almost double every two years. This growth dynamic is literally “explosive” – in fact, in real explosions energy is released according to a similar law. The growth is so fast, that from the point of view of a business person in 1980, IT capabilities available in 1960 were so miniscule, that they almost did not exist, while IT capabilities available in the first decade of this millennium are so enormous, that they are beyond all “reasonable” predictions. Similarly, you may find out that IT capabilities in ten or twenty years from now are beyond what you reasonably expect at present. Because of the explosive growth of IT capabilities, information technology often becomes the so- called “disruptive technology” in business. New information technologies offer new ways of doing business thus disrupting the existing business models. Even if you are not interested in information technology and would rather stick to the old ways of doing business, you will not be able to ignore it for long. Your competitors will eventually take advantage of the new capabilities, and you will have to change to stay in business. A solid understanding of the business roles of IT is essential for your success. The growth of IT capabilities can be described in terms of the so-called price/performance ratio the ability of technology to deliver performance for its price. The table in the slide lists the price/performance ratio for
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Module 1: MIS and you 2 computer microprocessors between 1985 and 2005. The number of transistors in a microprocessor roughly describes the speed with which it processes data: what cost almost $4000 in 1983 cost less than five cents in 2005, and is even less now. 3. Record labels in crisis as CD sales
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This note was uploaded on 06/01/2010 for the course PN 115.107 taught by Professor Ivan during the Spring '10 term at Massey Palmerston North.

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Module_1_with_narration_text - Module 1: MIS and you 1....

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