CHAPTER 1

THE INFORMATION AGE IN WHICH YOU LIVE

Changing the Face of Business
CONTACT INFORMATION: Stephen Haag is the primary author of this chapter. If you have any
questions or comments, please direct them to him at shaag@du.edu.

THE CHAPTER IN SHORT FORM

This chapter introduces your students to the use of information technology (IT) and management
information systems (MIS) within todays fast-paced, dynamic, and global business environment.
After a few definitions of such key terms as knowledge workers and MIS, the chapter then launches into a
discussion of todays economic environment, including such topics as:
The e.conomy (key terms - electronic commerce, telecommuting, and the virtual workplace)
The now economy (key term - m-commerce)
The global economy (key terms - global economy and transnational firm)
The arriving digital economy (key term digital economy)
The next three sections provide an introduction to the three most important resources within MIS including:
1. Information
2. People
3. Information technology
Those three sections include such key terms as ethics, hackers, decentralized computing, intranets,
shared information, and information granularity.
In the final section, we introduce your students to the 6 roles and goals of information technology. They
include:
1. Increase employee productivity
2. Enhance decision making
3. Improve team collaboration
4. Create business partnerships and alliances
5. Enable global reach
6. Facilitate organizational transformation

STUDENT LEARNING OUTCOMES

1.
2.
3.
4.

Describe the information age and the role of knowledge workers within it.
Define management information systems (MIS).
Describe key factors shaping todays economic environment.
Validate information as a key resource and describe both personal and organizational dimensions of
information.
5. Define how people are the most important organizational resource, their information and technology
literacy challenges, and their ethical responsibilities.
6. Describe the important characteristics of information technology (IT) as a key organizational resource.
7. List and describe the six roles and goals of information technology in any organization.

1-1

CHAPTER 1

LECTURE OUTLINE
INTRODUCTION (p. 4)
TODAYS ECONOMIC ENVIRONMENT (p. 5)
1. The E.conomy
2. The Now Economy
3. The Global Economy
4. The Arriving Digital Economy
INFORMATION AS A KEY RESOURCE (p. 9)
1. Data Versus Information
2. Personal Dimensions of Information
3. Organizational Dimensions of Information
PEOPLE AS A KEY RESOURCE (p. 13)
1. Information and Technology Literacy
2. Your Ethical Responsibilities
INFORMATION TECHNOLOGY AS A KEY RESOURCE (p. 17)
1. Key Technology Categories
2. Decentralized Computing and Shared Information
ROLES AND GOALS OF INFORMATION TECHNOLOGY (p. 21)
1. Increase Employee Productivity
2. Enhance Decision Making
3. Improve Team Collaboration
4. Create Business Partnerships and Alliances
5. Enable Global Reach
6. Facilitate Organizational Transformation
END OF CHAPTER (p. 29)
1. Summary: Student Learning Outcomes Revisited
2. Closing Case Study One
3. Closing Case Study Two
4. Key Terms and Concepts
5. Short-Answer Questions
6. Short-Question Answers
7. Assignments and Exercises
8. Discussion Questions
9. Real HOT Electronic Commerce

1-2

CHAPTER 1

KEY TERMS AND CONCEPTS

KEY TERMS AND CONCEPTS
Application software
Artificial intelligence (AI)
Banner ad
Central processing unit (CPU)
Collaboration system
Culture
Customer-integrated system (CIS)
Data
Decentralized computing
Digital economy
Electronic commerce
Electronic data interchange (EDI)
Ethics
Executive information system (EIS)
External information
Global economy
Group document database
Groupware
Hacker
Hardware
Information
Information age
Information granularity
Information-literate knowledge worker
Information technology (IT)
Input device
Internal information
Interorganizational system (IOS)
Intranet
Knowledge worker
Management information systems (MIS)
M-commerce
Neural network
Objective information
Online analytical processing (OLAP)
Online transaction processing (OLTP)
Operating system software
Operational management
Output device
RAM (random access memory)
Shared information
Software

TEXT PAGE
19
24
26
19
24
27
22
9
20
8
5
26
15
23
13
8
24
24
17
17
9
4
12
14
17
17
13
25
10
4
4
7
24
13
23
22
19
12
18
19
20
17
1-3

CHAPTER 1

KEY TERMS AND CONCEPTS

KEY TERMS AND CONCEPTS

TEXT PAGE
18
11
13
19
12
14
19
6
22
8
19
6

Storage device
Strategic management
Subjective information
System software
Tactical management
Technology-literate knowledge worker
Telecommunications device
Telecommuting
Transaction processing system (TPS)
Transnational firm
Utility software
Virtual workplace

1-4

CHAPTER 1
Introduction

OPENING CASE STUDY (p. 3)

Information Technology at Ritz-Carlton Hotels Helps Staff Deliver Excellent Service
QualityCan Technology Catch You Having an Affair?
The opening case study, while humorous,
technology.

is a powerful one to show the potential of information

It discusses how technology was inadvertently used to catch a man having an affair. Commerce City,
Colorado, had installed photo equipment at various stop lights to capture images of automobiles as they
ran through red lights. Those photos, along with a traffic citation, were sent to the home of the owner.
It discusses hot information technology was used by Ritz-Carlton to enhance customer service and
increase retention rate.
Well, our man was driving around with a woman with whom he was having an affair. The photo equipment
captured both him and his companion.
Key Points:
Technology is a very powerful toolcertainly both pervasive and invasive in our lives today.
Technology can be successfully applied within a firm and between firms and clients inadvertently be
used for bad purposes.
It can also be used with malicious intent for bad purposes.
Your goal is to use technology only for good purposes.

SUPPORT
Extended Learning Modules
XLM/CA if your students have little previous exposure to technology, cover this module which
introduces a variety of technology hardware and software terms.
XLM/B this is a great module to cover if your students need an introduction to the World Wide Web
and Internet.
XLM/C if you require your students to build a small database application as a class project, cover
this module on designing a database and entity-relationship (E-R) diagramming.
XLM/F if you require your students to build a Web site as a class project, cover this module on
creating a Web site with HTML.
XLM/I if your students already know how to build a Web site, consider covering this module which
teaches your students how to build an e-portfolio for the purpose of advertising themselves on the
Web.
Real HOT Group Projects (CD-ROM)
1: Assessing the Value of Information use spreadsheet software to redefine an auto mechanics shop.
A: Assessing the Value of Information use spreadsheet software to determine where to sell homes.
Web Support (www.mcgrawhill.ca/college/haag)

1-5

CHAPTER 1
Introduction

Job databases
Searching newspapers for job ads
Locating internships
Interviewing and negotiating tips
Organization sites and job postings
Employment opportunities with the government

1-6

CHAPTER 1
Introduction

INTRODUCTION
It truly is the information age a time when knowledge is power.
Key Points:
Knowledge workers dominate the information age by more than a four-to-one margin.
All business students are preparing to be knowledge workers.
What businesses dont know can put them out of business (in a very big hurry).
In the information age, MIS is key because it deals with the coordinated use of three very important
organizational resources information, information technology, and people.
Key Term: Information age - a time when knowledge is power.
Key Term: Knowledge worker - works with and produces information as a product.
Key Term: Management information systems (MIS) - deals with the planning for, development,
management, and use of information technology tools to help people perform all tasks related to
information processing and management.
Concept Reinforcement: Adding Value Class Participation
Ask your students to discuss how you, as a teacher, are a knowledge worker.
You create exams and assignments (these are information-based products).
Most importantly, you are a vehicle of knowledge through which your students learn. Learning is
an information-based activity.

TODAYS ECONOMIC ENVIRONMENT

To be successful today, your students must understand the dynamics of the business environment in
which they work.
In this section, we discuss the dynamic and changing business environment.
The E.conomy (p. 5-6)
Key Points:
We are certainly moving into an electronic economy.
Dont dwell too much on the past here many of your students have probably spent the better part
of their adulthood on the Internet, chatting with friends, buying products, etc.
The key to electronic commerce is not electronic, but rather the use of sound business principles
in an electronic environment (this is the commerce aspect).
Key Term: Electronic commerce - commerce, but it is commerce accelerated and enhanced by
information technology, in particular, the Internet. It enables customers, consumers, and companies to
form powerful new relationships that would not otherwise be possible without the enabling
technologies.
1-7

CHAPTER 1
Introduction
Key Points:
Commerce isnt just about buying and selling goods.
Its about going e in each and every phase of business.
This includes telecommuting and enabling the virtual workplace.
Today, more than 35 million people in the U.S. telecommute and more than 30% of Canadians
work at home for more than 20 hours per week.
That number is expected to grow by 20% over the next several years.
Figure 1.1 on page 6 is great for illustrating the growing importance and use of telecommuting.
Key Term: Telecommuting - the use of communications technologies (such as the Internet) to work in
a place other than a central location.
Key Term: Virtual workplace - a technology-enabled workplace. No walls. No boundaries. Work
anytime, anyplace, linked to other people and information you need, wherever they are.
Concept Reinforcement: Adding Value Class Participation
Take a quick informal survey in your class.
Ask your students the following questions:
1. How many of you use the Web on a daily basis?
2. Do you participate in chat rooms?
3. Do you buy physical products such as books and CDs?
4. Do you buy event tickets for concerts and the like?
5. Do you download software?
6. Has your amount of junk e-mail increased because of your use of the Web?
Based on their answers, show percentages on the board.
The Now Economy (p. 6-7)
Key Points:
People want immediate access to the ordering of products and services.
ATMs allow you access to your money anytime and anywhere.
B2C Web sites allow you to order almost anything at anytime (and usually have it within a couple of
days).
Closely related is the concept of a wants-based economy in which people buy based on wants and
not necessarily needs.
Technology can certainly facilitate a business achieving a strategic advantage by (1) offering
customers the ability to buy anything anytime anywhere (through m-commerce) and (2) providing
technologies that allow businesses to monitor and project customer wants-based spending habits.
Key Term: M-commerce - describes electronic commerce conducted over a wireless device such as a
cell phone or personal digital assistant.
Concept Reinforcement: Team Work I Want It! (p. 7)

1-8

CHAPTER 1
Introduction

This project requires your students to identify products that are purely wants-based such as
elaborate pet treats and tennis shoes with rear lights.
Break your class into groups of 4 to 6 and require this as a homework exercise.
What your students will quickly realize is that a large portion of consumer purchases are wantsbased.
Examples include rollerblades (and other types of fun-fitness equipment), Rolex watches, video
games, and so on.
The real point of this project is to get your students to think about (1) who would buy these
products, (2) why they would buy them, (3) how organizations can identify those consumer
segments, and (4) what role technology could play in identifying those consumer segments.
In conjunction with this project, talk about such key concepts as customer relationship
management, marketing mixes, and advertising strategies.

The Global Economy (p. 8)

Key Points:
The world of business is certainly global.
There are over 30287,000,000 consumers in Canadathe U.S.
But there are over 6.2 billion worldwide.
Businesses can be successful on a worldwide basis as transnational firms.
Figure 1.2 on page 8 shows the total import and export figures for 1998-2000 for Canada.gradual
increase in the number of non-U.S. based companies that comprise the worlds largest 50.
Key Term: Global economy - one in which customers, businesses, suppliers, distributors, and
manufacturers all operate without regard to physical and geographical boundaries.
Key Term: Transnational firm - a firm that produces and sells products and services in countries all
over the world.
Concept Reinforcement: Adding Value Class Participation
This is a great time to discuss with your students the need to learn a foreign language.
Your school may or may not have a foreign language requirement.
If it doesnt, encourage your students to take a foreign language as an elective.
You might also want to poll your class to determine how many students can speak more than one
language.
The Arriving Digital Economy (p. 8-9)
Key Points:
We are in the information age.
The next age will be the digital age.
In the digital age, we will move all forms of information (including physiological information) digitally.
This will usher in a whole new era of doing business.

1-9

CHAPTER 1
Introduction

Technologies in the digital age will include virtual reality, voice recognition systems (on a wide
scale), and 3-D holographic devices, just to name a few.

Key Term: Digital economy - will be one marked by the electronic movement of all types of
information, not limited to numbers, words, graphs, and photos but including physiological information
such as voice recognition and synthesization, biometrics (your retina scan and breath for example),
and 3-D holograms.
Concept Reinforcement: Adding Value Class Participation
Most, if not all, your students will be able to relate to the coming digital economy through the
movies.
Take some time and ask your students to identify movies that electronically move physiological
information.
Some movies include Star Trek (with the holodeck), Virtuosity (virtual reality), and The Matrix (a
wide and wild variety).

INFORMATION AS A KEY RESOURCE

Information is one of the three key components of MIS, along with people and information technology.
We are also in the information age, a time when knowledge is power. So, information is indeed
important even outside the context of MIS.
Data Versus Information (p. 9)
Key Points:
Data and information are quite different.
Data are raw facts while information has meaning within a specific context.
Key Term: Data - raw facts that describe a particular phenomenon.
Key Term: Information - simply data that have a particular meaning within a specific context.
Concept Reinforcement: Real HOT Group projects #1 and #A (CD-ROM)
Technology can certainly turn data into information.
To help your students understand this, assign either Real HOT Group project #1 or #A. Both deal
with using spreadsheet software to analyze information and require your students to differentiate
between data and useful information.
For example, project #A requires your students to use spreadsheet software to evaluate 600 real
estate transactions to determine where to focus sales efforts.
However, some of the data is just data and not important to the decision at hand, so it isnt
information.

1-10

CHAPTER 1
Introduction
Personal Dimensions of Information (p. 9-11)
Key Points:
There are three personal dimensions of information: time, location, and form.
Time encompasses two aspects: (1) having access to information when you need it and (2) having
information that describes the time period youre considering.
Location deals with having access to information no matter where you are.
Form encompasses two aspects: (1) having information in a form that is usable and (2) having
accurate information (i.e., free of errors).
Figure 1.3 on page 9 illustrates the three personal dimensions of information.
Key Term: Intranet - an internal organizational Internet that is guarded against outside access by a
special security feature called a firewall (which can be software, hardware, or a combination of the
two).
Concept Reinforcement: Global Perspective Overcoming Language Barriers on the Internet
(p. 10)
This Global Perspective broadly addresses the issue of overcoming language barriers on the
Internet.
Most importantly, it talks about SYSTRAN Enterprise, a suite of software that performs language
translations.
You should definitely take your students to SYSTRANs site (www.systransoft.com). There, you
can type in phrases and sentences in one language and have them translated into another
language. If you try idiomatic phrases, youll find that the software doesnt work that well.
The point is not that SYSTRANs software isnt any good it is some of the best on the market.
The point is that computers have a difficult time translating from one language to another.
Organizational Dimensions of Information (p. 11-13)
Key Points:
Organizations also have dimensions or perspectives of information, including information flows,
what information describes, information granularity, and how information is used (the latter is
discussed in the next section).
Information flows include upward, downward, horizontally, and outward as Figure 1.4 on page 11
illustrates.
Information granularity refers to the extent of detail within the information (from highly summarized
to very detailed).
Information can describe many aspects of a business internal (its operations), external (whats
going around the organization), objective (something that is known), and subjective (something that
is unknown).
Key Term: Strategic management - provides an organization with overall direction and guidance.
Key Term: Tactical management - develops goals and strategies outlined by strategic management.
Key Term: Operational management - manages and directs the day-to-day operations and
implementations of the goals and strategies.
1-11

CHAPTER 1
Introduction
Key Term: Information granularity - refers to the extent of detail within the information.
Key Term: Internal information - describes specific operational aspects of the organization.
Key Term: External information - describes the environment surrounding the organization.
Key Term: Objective information - quantifiably describes something that is known.
Key Term: Subjective information - attempts to describe something that is unknown.
Concept Reinforcement: Industry Perspective Michael Dell Preaches Immediate Information
Access (p. 13)
This industry perspective has some great quotes from Michael Dell, CEO and founder of Dell
Computer, concerning the need to have immediate access to information.
Because of immediate access to information, Dell carries only 3 to 4 days of inventory (the
standard is about 45 days).
Michael also states that having immediate access to information takes the guess work out of
running a business a goal for everyone.

PEOPLE AS A KEY RESOURCE

The single most important resource in any organization is people. Without people, business is nothing.
Information and Technology Literacy (p. 14-15)
Key Points:
Technology is important today because information is important.
Technology is a set of tools for working with information. If we didnt need to work with information,
we would have little use for technology.
So, its important to know how to work with technology so you can better work with information.
Key Term: Technology-literate knowledge worker - a person who knows how and when to apply
technology.
Concept Reinforcement: Industry Perspective Polaroid Is Polar-People (p. 15)
People are important because they posses intellectual capital.
Because of this, Polaroid has developed an elaborate and sophisticated HR system.
Polaroid uses it to forecast when current employees will retire and what intellectual capital they
will take with them.
This enables Polaroid to hire new people far in advance of others retiring.
Key Points:
Technology is, however, not a panacea.
1-12

CHAPTER 1
Introduction

You must still know what information you need and understand its meaning once you get it.

Key Term: Information-literate knowledge workers - can define what information they need, know
how and where to obtain that information, understand the information once they receive it, and can act
appropriately based on the information to help the organization achieve the greatest advantage.
Your Ethical Responsibilities (p. 15-17)
Key Points:
You simply cant use technology with reckless abandonment.
You must also use it in the best interests of society and those people that your actions will affect.
Key Term: Ethics - the principles and standards that guide our behaviour toward other people.
Key Term: Hacker - a very knowledgeable computer user who uses his or her knowledge to invade
other peoples computers.
Concept Reinforcement: On Your Own E-Mail: Electronic Mail or Expensive Mail? (p. 16)
This is a must do project, as it only takes a few minutes to complete but will generate
considerable class participation.
The project quickly details why Chevron paid $2 million in an out-of-court settlement because one
of its employees distributed an e-mail joke that offended someone.
Accompanying this project, your students are required to answer a couple of questions.
Most importantly, they must decide based on their own view of privacy and ethics whether or
not a company has the right to monitor e-mail.
If they decide the company has the right to monitor e-mail, then they must also be willing to let the
company monitor paper mail and phone calls.
If they decide the company does not have the right to monitor e-mail, then they must be prepared
to receive potentially offensive e-mail and not sue the company.
Youll have a great time leading your class through a debate surrounding this project.

INFORMATION TECHNOLOGY AS A KEY RESOURCE

Because information is so important, so is technology because it gives you the ability to work with
information.
Key Technology Categories (p. 17-20)
Key Points:
There are two basic categories of technology: hardware and software.
Hardware is the physical devices while software is the instructions that the hardware executes.
Hardware categories include input devices, output devices, storage devices, CPU and RAM,
telecommunications devices, and connecting devices.
Software categories include application and system.

1-13

CHAPTER 1
Introduction

Figure 1.6 on page 18 provides an overview of hardware and software categories.

Key Term: Information technology (IT) - any computer-based tool that people use to work with
information and support the information and information-processing needs of an organization.
Key Term: Hardware - the physical devices that make up a computer.
Key Term: Software - the set of instructions that your hardware executes to carry out a specific task
for you.
Key Term: Input device - a tool you use to capture information and commands.
Key Term: Output device - a tool you use to see, hear, or otherwise accepts the results of your
information-processing requests.
Key Term: Storage device - a tool you use to store information for use at a later time.
Key Term: Central processing unit (CPU) - the actual hardware that interprets and executes the
software instructions and coordinates how all the other hardware devices work together.
Key Term: RAM (random access memory) - temporary storage that holds the information youre
working with, the application software youre using, and the operating system software youre using.
Key Term: Telecommunications device - a tool you use to send information to and receive it from
another person or location.
Key Term: Application software - software that enables you to solve specific problems or perform
specific tasks.
Key Term: System software - handles tasks specific to technology management and coordinates the
interaction of all technology devices.
Key Term: Operating system software - system software that controls your application software and
manages how your hardware devices work together.
Key Term: Utility software - software that provides additional functionality to your operating system.
Concept Reinforcement: Extended Learning Module CA Computer Hardware and Software
As you review some basic key technology concepts and categories with your students, you might
want to consider covering Extended Learning Module CA Computer Hardware and Software.
If your students have had little or no previous exposure to basic technology concepts, module A is
a great one to cover.
You can also refer your students to module A for a review of technology if theyve already had a
previous computing concepts course.

1-14

CHAPTER 1
Introduction
Concept Reinforcement: On Your Own Identifying Hardware and Software (p. 19)
If your students have had little previous exposure to technology, this is a good project.
In this project, your students will find an ad for a computer system.
Then, they must identify all the various components hardware by category and software by
category.
When comparing it to a similar system on the Internet, some of your students will find the local
system more expensive while others will find the Internet system more expensive.
Decentralized Computing and Shared Information (p. 20)
Key Points:
To be successful in business, you need two things: (1) technology to work with information and (2)
access to the information you need.
Therefore, businesses have adopted decentralized computing which places technology in the
hands of those who need it.
Businesses also provide shared information which gives people the ability to access the
information they need.
Figure 1.7 on page 20 illustrates the concepts of decentralized computing and shared information.
Key Term: Decentralized computing - an environment in which an organization splits computing
power and locates it in functional business areas as well as on the desktops of knowledge workers.
Key Term: Shared information - an environment in which an organizations information is organized in
one central location, allowing anyone to access and use it as he or she needs to.
Concept Reinforcement: Adding Value Class Participation
This is an excellent time to reinforce the notion of ethics, as well as privacy and security.
The proliferation of technology through decentralized computing has made it easy for people to
access all kinds of information.
And, through the dissemination of information (shared information), people can once again access
almost any information they want.
Discuss with your students the pros and cons of decentralized computing and shared information
within the context of ethics and privacy.
To help your students organize their thoughts regarding information technology and MIS within an
organization, provide them with the following six (6) roles and goals of information technology.
We list these with IT tools examples and business benefits examples in Figure 1.8 on page 21.
ROLE/GOAL
1. Increase employee
productivity

IT TOOLS EXAMPLES

OLTP
TPS

1-15

BUSINESS BENEFITS
EXAMPLES
Reduce time
Reduce errors

CHAPTER 1
Introduction

2. Enhance decision making

3. Improve team collaboration

CIS

OLAP
DSS
GIS
EIS
AI
Data warehouses
Collaboration system
Groupware

4. Create business partnerships

and alliances

IOS
EDI

5. Enable global reach

Internet
Translation phones

Just any technology you can

name, depending on its use

6. Facilitate organizational
transformation

Reduce costs
Enable customers to process
their own transactions
Generate alternatives
Recommend solutions
Drill down through information

Manage knowledge within the

organization
Support geographically
dispersed teams
Facilitate communications
Develop applications quickly
Manage supply chains
Share expertise and intellect
Enable B2B e-commerce
Take advantage of a
cheaper/larger workforce
Advertise locally-made
Tap into global intellectual
expertise
Stay competitive
Offer new customer interfaces
Enter new markets

Increase Employee Productivity (p. 21-23)

Key Points:
The most fundamental role of IT is to increase productivity.
Productivity can mean reducing time, reducing errors, reducing costs, etc.
This is simply about automation.
Productivity is achieved through online analytical processing (OLTP).
OLTP system types include transaction processing systems (TPSs) and customer-integrated
systems (CISs).
Key Term: Online transaction processing (OLTP) the gathering of input information, processing
that information, and updating existing information to reflect the gathered and processed information.
Payroll systems, inventory reordering systems, and class registration systems are examples.
Key Term: Transaction processing system (TPS) processes transaction that occur within an
organization.
1-16

CHAPTER 1
Introduction

Payroll systems and inventory reordering systems are examples.

Key Term: Customer-integrated system (CIS) extension of a TPS that places technology in the
hands of an organizations customers and allows them to process their own transactions (see Figure
1.9 on page 22).
ATMs, and most e-commerce Web sites are examples.
Empowers customers.
Reduces the cost of processing a transaction.
Concept Reinforcement: Adding Value Class Participation
Ask your students to identify the different systems they use that are CISs.
Examples could include your schools class registration system, pay-per-view movies, paying for
gas at the pump at the fuel station, self-scanning at the grocery store.
Also, ask them how each is a win-win situation for both the organization and the customer.
Enhance Decision Making (p. 23-24)
Key Points:
Technology can also aid in making decisions.
Sometimes it simply speeds the process of evaluating various alternatives.
At other times, it can actually make recommendations concerning what actions to take.
Key Term: Online analytical processing (OLAP) the manipulation of information to support
decision making.
Key Term: Executive information system (EIS) a highly interactive IT system that allows you to first
view highly summarized information and then choose how you would like to see greater detail, which
may alert you to potential problems or opportunities. See Figure 1.10 on page 23.
Key Term: Artificial intelligence (AI) the science of making machines imitate human thinking and
behaviour.
Key Term: Neural network an artificial intelligence system that is capable of finding and
differentiating patterns.
Concept Reinforcement: Real HOT Group projects #1 and #A (CD-ROM)
Technology can definitely aid in decision support.
To help your students understand the true productivity value of supporting decision-making,
assign either Real HOT Group project #1 or #A. Both deal with using spreadsheet software to
analyze information and make a decision.
For example, project #A requires your students to use spreadsheet software to evaluate 600 real
estate transactions to determine where to focus sales efforts.
600 may seem like a lot of transactions, but spreadsheet tools such as filtering, pivot tables, and

1-17

CHAPTER 1
Introduction

subtotals makes this project an easy one to complete.

This will give you the opportunity to demonstrate to your students just how valuable and
productive technology can be in supporting decision-making efforts.

Improve Team Collaboration (p. 24-25)

Key Points:
Teams are certainly a characteristic of todays business environments.
Teams need technology tools to support meetings.
Teams need technology tools to share information.
Teams need technology tools to quickly build applications.
Key Term: Collaboration system a system that is designed specifically to improve the performance
of teams by supporting the sharing and flow of information.
Key Term: Groupware the popular term for the software component that supports the collaborative
efforts of a team.
Key Term: Group document database a powerful storage facility for organizing and managing all
documents related to specific teams.
Concept Reinforcement: Industry Perspective Spar Aerospace Launches Information
Sharing IntranetTeams Groove with Groove on the Internet (p. 25)
Ray Ozzie, the creator of Lotus Notes, is creating new groupware called Groove.
It is Internet-based and is much like Napster in that it doesnt require a central server on which to
store information. Instead, team members use their own computers for storage and can access
information stored on other team members computers.
As Bill Gates describes it, Groove is, a deep and innovative software product that is a great
indicator of where the Internet is going.
Perhaps Microsoft will buy Groove.Spar Aerospace uses the Intranet to facilitate information
sharing between diefferent business units.
Each site is dedicated to different product lines
The Intranet facilitates the coordination of activities and the sharing of information.
Create Business Partnerships and Alliances (p. 25-26)
Key Points:
No business is an island.
That is, no business can be an expert at doing everything.
So, businesses need to build partnerships and alliances to take advantages of each others
expertise.
Wal-Mart and Vanity Fairs business partnership is certainly worth highlighting. Its on page 25.
Key Term: Interorganizational system (IOS) automates the flow of information between
organizations to support the planning, development, production, and delivery of products and services.

1-18

CHAPTER 1
Introduction
Key Term: Electronic data interchange (EDI) the direct computer-to-computer transfer of
transaction information contained in standard business documents, such as invoices and purchase
orders, in a standard format.
Concept Reinforcement: Team Work Finding Business Partners and Alliances on the Web (p.
26)
In this project, your students will identify business partners and alliances on the Web by searching
for sites with banner ads.
A banner ad is a small ad on one Web site that advertises the products and services of another
business, usually another dot-com business.
Banner ads represent a simple way in which businesses can team up to reach more customers.
Your students may even find reciprocal banner ads two organizations both posting banner ads
on each others sites.
For a good example of a banner ad, visit CNN at www.cnn.com.

Enable Global Reach (p. 26-27)

Key Points:
Once again, the business world is certainly global.
This is a good time to reinforce the notion of a global economy (discussed in an earlier section)
Honda actually produces more cars outside than inside Japan.
Honda also exports more cars from the U.S. than does GM, Ford, or Chrysler.
Businesses operating globally can take advantage of a cheaper labour force, gain significant
expertise, and advertise locally made.
Technology definitely facilitates global reach by eliminating time and location obstacles.
However, technology cannot help overcome many cultural issues.
Key Term: Culture - the collective personality of a nation or society, encompassing language,
traditions, currency, religion, history, music, and acceptable behaviours, among other things.
Facilitate Organizational Transformation (p. 27-28)
Key Points:
Finally, technology can facilitate organizational transformation in many ways.
Blockbuster still rents videos at its stores but also through pay-per-view thanks to technology.
Many technologies help here including customer-integrated systems, high-speed Internet
technologies, and object-oriented technologies (discussed at length in Extended Learning Module
G).
Concept Reinforcement: Industry Perspective Nokia From Paper, to Rubber, to Cell Phones
and Telecommunications (p. 28)
Nokia is a great example of a company that has undergone significant transformation, thanks in

1-19

CHAPTER 1
Introduction

part to technology.
It began as a paper producer over 150 years ago.
After a successful merger in the 1960s, it began its quest to dominate the wire-free telephone
market, producing its first cell phone in 1987.
Today, it is the dominant provider of cell phones worldwide.

1-20

CHAPTER 1
Summary: Student Learning Outcomes Revisited

SUMMARY: STUDENT LEARNING OUTCOMES REVISITED

In each chapter and module, we revisit the student learning outcomes as a mechanism and format for
summarizing the chapter.
Youll find this content for Chapter 1 on page 29-30.
Following the adage of, Tell them what youre going to tell them, tell them, and then tell them what you
told them, you should walk through the summary with your students.
You should also inform your students that the summary is great support for studying for exams.

CHAPTER 1
Closing Case Study One

CLOSING CASE STUDY ONE

You and Your Information (p. 30-32)
This is a very interactive closing case study in which your students will answer a variety of questions
related to:
How much your students trust organizations to maintain correct information about them
How much organizations trust your students to provide accurate information.
By answering the first set of questions, your students will probably come to understand that they rely
greatly on organizations to maintain correct information about them.
By answering the second set of questions, your students will also come to realize that organizations in no
way rely on individuals to provide accurate information.
Most of the questions surrounding this case study deal with your students personal views of information.
We recommend that you cover this as an in-class case study.
QUESTIONS
1. Should you really trust organizations to maintain accurate information about you? In many instances,
is it even worth your time and energy to verify the accuracy of that information?
DISCUSSION
Answers will be entirely up to your students.
2.

What other examples can you think of in which you simply trust that your information is accurate?
What other examples can you think of in which specific organizations dont assume that youre
providing accurate information?
DISCUSSION
There are numerous examples here in both instances.
Again, let your students generate these their answers may surprise you (e.g., do people in chat
rooms really tell the truth?).

CHAPTER 1
Closing Case Study One
3.

What sort of impact will cyberspace business have on the issues of trust and accuracy? Will it
become easier or more difficult for cyberspace business to assume that youre providing accurate
information? Will you trust cyberspace business to maintain your information more accurately than
traditional organizations?
DISCUSSION
This particular question has generated much debate in all walks of life private business,
government, education, etc.
The truth is we dont know what overall impact cyberspace will have on trust and accuracy.
We certainly have anecdotal evidence both ways but no solid statistical information.
That will come with time (perhaps 10 more years).

4.

What are the ethical issues involved in organizations sharing information about you? In some
instances it may be okay and in your best interest. But what if the shared information about you is
inaccurate? What damage could it cause? What recourse do you have, if any?
DISCUSSION
From a legal point of view, you can take an organization to court that provides inaccurate
information about you.
However, the court system has had a difficult time determining to what extent damage has been
done and how much should be compensated for the damage.

5.

Its a real dilemma: Most people think that credit card offerers charge extremely high interest rates.
But how many people do you know who actually go through the process of calculating their average
daily balances, applying the interest rates, and then verifying that the interest charged on their
accounts is correct? Why do people complain that they are being charged excessive interest rates
and then fail to check the accuracy of the interest calculations?
DISCUSSION
Interesting question no right or wrong answers.

6.

What about the future? As more organizations maintain even more information about you, should you
become more concerned about accuracy? Why or why not?
DISCUSSION
A great final discussion question.
Again, no right or wrong answers.

CHAPTER 1
Closing Case Study Two

CLOSING CASE STUDY TWO

How Much of Your Personal Information Do You Want Businesses to Know? (p. 32-33)
In this closing case study, your students will read about two organizations that use personal information to
better provide products and services. The first organization is Mitchells of Westport, an upscale clothing
retailer which uses information to provide more personalized service to its customers. Most of your
students want organizations that use information in this way.
The second organization is Acxiom which maintains information on more than 200 million Americans.
Acxiom sells this information to other organizations. For example, Allstate (an insurance company) buys
information from Acxiom including applicant credit reports, driving records, claims histories, and family
relationships. Many of your students will not be aware that Acxiom maintains so much information about
them, and they will probably not like the fact that Acxiom sells it to whoever has the money to pay for it.
QUESTIONS
1. What is the role of information technology at Acxiom? Could it still maintain and provide such a
wealth of information without using IT? Acxioms InfoBase holds 350 terabytes of information. How
much information is that? How many double-spaced pages of text would it take to hold all that
information?
DISCUSSION
Information technology is key at Acxiom. Acxiom uses technology to (1) organize and maintain its
huge InfoBase and (2) sift through the InfoBase to provide customized information to its customers.
Acxiom could still organize, maintain, and provide all this information without the use of technology,
but the tasks would be daunting and extremely expensive.
A terabyte is approximately 1 trillion bytes or characters, so Acxioms InfoBase hold 350 trillion
characters of information.
Considering that a double-spaced page of text holds approximately 2,000 characters, Acxioms
InfoBase contains 175 billion (thats 175,000,000,000) pages of information. Thats roughly 350
million (350,000,000) reams of paper (a ream has 500 pieces in it). A ream of paper is 2-inches
tall. So, 350 million stacked reams of paper is 700 million inches tall. Thats roughly 60 million feet
or slightly over 11,000 miles.
2.

How has Mitchells used information and information technology to enable organizational
transformation? Consider how Mitchells operated before it gathered and kept such a wealth of
information and how it operates now in the information age.
DISCUSSION
Mitchells, like many clothing retailers used to wait for customers to walk in the doors and state their
desires.
Now, Mitchells reaches out to its customers with special promotions based on their previous
purchases.
This allows Mitchells to provide high-quality one-to-one service to its customers.

CHAPTER 1
Closing Case Study Two
3.

Acxiom and Mitchells have two entirely different sets of business goals Acxiom uses information to
sell as a product (or commodity if you wish) to other businesses, while Mitchells uses information to
better serve individual consumers. For each, discuss the flows of information relative to upward,
downward, horizontal, and outward.
DISCUSSION
Acxioms main flow of information is outward to its customers. This makes sense because
information is the product its selling.
Mitchells flows of information are in all directions. Upward flows include what was purchased on a
daily basis to provide inventory. Downward flows include new directions for clothing. Horizontal
flows would include information moving from department to department (e.g., shoes to suits)
concerning customers. Outward flows would include advertisements Mitchells provides to its
customers.

4.

What are the ethical and legal issues relating to the fact that Acxiom may know your height and
weight and is certainly willing to sell that information to the highest bidder? Can Acxiom legally own
that information and sell it to any and every organization?
DISCUSSION
Acxiom can legally obtain such information and sell it to almost anyone.
How your students view this ethically will be entirely up to them.
For many, they will see no problem with it because they can rationalize getting better service and
product offerings.

5.

From where do you think Acxiom gathers its information? Could it establish a partnership with other
organizations such as Mitchells and buy personal information? How do you feel about this?
DISCUSSION
Acxiom gathers its information from both the public and private sectors.
It can obtain driving records from the Department of Motor Vehicles.
It can obtain lists of graduating students from colleges and universities.
And it can buy information from private businesses such as Mitchells (business partnership).
Again, how your students feel about this will be largely determined by their ethics.

CHAPTER 1
Closing Case Study Two
6.

Many people dream of having a close personal relationship with a clothing retailer such as Mitchells.
You simply walk in and the salesperson seems to know everything about you (and remembers you
well). However, Mitchells communicates extensively with its customers by e-mail. Would you ever
get tired of receiving e-mails that solicit your business? How many of those e-mails do you receive
now on a weekly basis? What steps can you take to avoid them?
DISCUSSION
This is a great class discussion question.
Most young people today dont mind be bombarded by e-mail solicitations. They are in fact great
filterers of information (and they do it with great speed).
Technologies to avoid solicitation e-mails include utilities you can add to your e-mail software and
Web-based companies that will work to ensure youre removed from e-mailing lists.

7.

Overall, whats your view of the information age in which we live? Are we better off because we have
access to a wealth of information, including personal information? Should organizations such as
Acxiom and Mitchells exploit their information for all its worth? Should they consider your feelings?
DISCUSSION
Again, another great discussion question.
This is an excellent opportunity for you to stress the importance of ethics and using technology in
the best interests of society and people your actions will affect.

CHAPTER 1
Short-Answer Questions

SHORT-ANSWER QUESTIONS (p. 34)

1.

How does a knowledge worker differ from other types of workers?

ANSWER: A knowledge worker works with and produces information as a product. This is different
from service workers that provide some sort of service (as opposed to information) or skilled workers
that work with their hands to produce a physical product. p. 4

2.

What is management information systems (MIS)?

ANSWER: Management information systems (MIS) deals with the planning for, development,
management, and use of information technology tools to help people perform all tasks related to
information processing and management. MIS deals with the coordination and use of three very
important organizational resources information, information technology and people. p. 4

3.

What is electronic commerce?

ANSWER: Electronic commerce is commerce, but it is commerce accelerated and enhanced by
information technology, in particular, the Internet. It enables customers, consumers, and companies
to form powerful new relationships that would not be possible without the enabling technologies. p. 5

4.

How are telecommuting and the virtual workplace related?

ANSWER: Telecommuting is the use of communications technologies to work in a place other than
a central location. The virtual workplace is a technology-enabled workplace with no walls or
boundaries (including geographic and time). So, telecommuting is one aspect of the virtual
workplace. p. 6

5.

How is todays economy wants-based?

ANSWER: In todays economy, people spend a great deal of money on things that they dont
necessarily need but rather want. Two examples are tennis shoes in which the heels light up with the
pressure of each footstep and dog birthday cakes (or any pet treat for that matter). p. 7

6.

What is a transnational firm?

ANSWER: A transnational firm is a firm that produces and sells products and services in countries
all over the world. p. 8

7.

What is the relationship between data and information?

ANSWER: Data are raw facts that describe a particular phenomenon (e.g., todays temperature).
Information is data that have a particular meaning within a specific context. p. 9

8.

What are the personal dimensions of information?

ANSWER: The personal dimensions of information include time (information when you need it and
describing the right time period), location (information wherever you need it), and form (in a usable
form and free or errors). p. 9

9.

What are the three levels of management in an organization?

ANSWER: The three levels of management are strategic (providing overall guidance and direction),
tactical (developing the goals and strategies outlined by strategic management), and operational
(managing and directing day-to-day operations). p. 11

CHAPTER 1
Short-Answer Questions
10. What is information granularity? How does it differ according to the levels of an organization?
ANSWER: Information granularity refers to the extent of detail within the information. Typically,
people at higher levels in the organization need highly summarized or a coarse level of granularity,
while people in the lower levels need highly detailed information. p. 12
11.

What is the difference between internal and external information?

ANSWER: Internal information describes specific operational aspects of the organization while
external information describes the environment surrounding the organization. p. 13

12. What are the six categories of information technology (IT) hardware?
ANSWER: The six categories of information technology hardware are: (1) input devices, (2) output
devices, (3) storage devices, (4) CPU and RAM, (5) telecommunications devices, and (6) connecting
devices. p. 18
13. How are decentralized computing and shared information related to each other?
ANSWER: Decentralized computing splits computing power and places it in functional business
areas as well as on the desktops of knowledge workers. Shared information stores information in
one central location so everyone has access to it when they need it. So, decentralized computing
gives people the technology tools so they can access the shared information. p. 20
14. What are the six roles and goals of information technology?
ANSWER: The six roles and goals of information technology are: (1) increase employee productivity,
(2) enhance decision making, (3) improve team collaboration, (4) create business partnerships and
alliances, (5) enable global reach, and (6) facilitate organizational transformation. p. 21

CHAPTER 1
Discussion Questions

SHORT-QUESTION ANSWERS (p. 34)

3.

The information age.

QUESTION: How would you characterize todays business environment? p. 4

4.

Information, information technology, and people.

QUESTION: What are the three important organizational resources that management information
systems deals with? p. 4

5.

M-commerce.
QUESTION: What is the term used to describe electronic commerce conducted over a wireless
device? p. 7

6.

Global economy.
QUESTION: What is the environment in which customers, businesses, suppliers, distributors, and
manufacturers all operate without regard to physical and geographical boundaries? p. 8

7.

Data.
QUESTION: What are raw facts that describe a particular phenomenon? p. 9

8.

An internal organizational Internet.

QUESTION: What is an intranet? p. 10

9.

The downward flow of information.

QUESTION: What flow of information describes the strategies, goals, and directives that originate at
one level in an organization and are then passed to lower levels? p. 12

10. Subjective information.

QUESTION: What information attempts to describe something that is unknown? p. 13
11.

A person who knows how and when to apply technology.

QUESTION: What is a technology-literate knowledge worker? p. 14

12. Your behavior toward other people.

QUESTION: What role do ethics play in your life? p. 15
13. CPU and RAM.
QUESTION: What category of technology hardware actually executes software instructions, tells all
the other devices what to do, and holds your information, application software, and operating system
software? p. 19
14. Decentralized computing.
QUESTION: What is an environment in which computing power is split in an organization and
located in functional business areas as well as on the desktops of knowledge workers? p. 20

CHAPTER 1
Discussion Questions
15. An extension of a transaction processing system.
QUESTION: What is a customer-integrated system? p. 22
16. The manipulation of information to support decision making.

SHORT-QUESTION ANSWERS
Although they are not included in the book, these Question-Answers can be used by the instructor as an
help to review the concepts covered in the chapter.
17. The information age.
QUESTION: How would you characterize todays business environment? p. 4
18. Information, information technology, and people.
QUESTION: What are the three important organizational resources that management information
systems deals with? p. 4
19. M-commerce.
QUESTION: What is the term used to describe electronic commerce conducted over a wireless
device? p. 7
20. Global economy.
QUESTION: What is the environment in which customers, businesses, suppliers, distributors, and
manufacturers all operate without regard to physical and geographical boundaries? p. 8
21. Data.
QUESTION: What are raw facts that describe a particular phenomenon? p. 9
22. An internal organizational Internet.
QUESTION: What is an intranet? p. 11
23. The downward flow of information.
QUESTION: What flow of information describes the strategies, goals, and directives that originate at
one level in an organization and are then passed to lower levels? p. 13
24. Subjective information.
QUESTION: What information attempts to describe something that is unknown? p. 13
25. A person who knows how and when to apply technology.
QUESTION: What is a technology-literate knowledge worker? p. 14
26. Your behaviour toward other people.
QUESTION: What role do ethics play in your life? p. 16
27. CPU and RAM.

CHAPTER 1
Discussion Questions
QUESTION: What category of technology hardware actually executes software instructions, tells all
the other devices what to do, and holds your information, application software, and operating system
software? p. 20
28. Decentralized computing.
QUESTION: What is an environment in which computing power is split in an organization and
located in functional business areas as well as on the desktops of knowledge workers? p. 21

CHAPTER 1
Discussion Questions
29. An extension of a transaction processing system.
QUESTION: What is a customer-integrated system? p. 23
30. The manipulation of information to support decision making.
QUESTION: What is online analytical processing (OLAP)? p. 23

CHAPTER 1
Discussion Questions

ASSIGNMENTS AND EXERCISES (p. 35)

1.

Surveying the Global Economy. Visit a local store in your area that sells clothing and perform a
small survey. Pick up 10 different pieces of clothing (shoes, shirts, pants, belts, etc.) and note the
country in which they were made. Based on just those 10 pieces of clothing, was percentage was
made outside the United States of Canada? What percentage was made in the United
StatesCanada? Do you think your results are typical of the distribution of clothes made within and
outside Canadathe United States? Do your results support or contradict our assertion that we now
live in a global economy? Why?
DISCUSSION
This assignment/project is ideal for small groups of students, usually 2 to 4.
Clothing is perhaps the single best product to survey to truly understand todays global
environment.
Dont be surprised if many of your students choose 10 pieces of clothing that are all made outside
the United States.
On the average, your students should find about 50-80% of their clothing pieces are made outside
the United States.
This certainly supports the fact that we live in a global economy.

2.

Finding Trust in TRUSTe. TRUSTe (www.truste.org) is an organization on the Web that has created
specific guidelines for the use of your private information by Web sites to whom you offer it. If a Web
site adheres to all of TRUSTes guidelines, that Web site can then display the TRUSTe logo on its
site. That way, you know your private information is protected. TRUSTe has four main guidelines or
principles that Web sites displaying its logo must follow. Connect to TRUSTe. What are the four
guidelines? Are any or all of these guidelines important to you as an individual? If so, which one or
ones and why? Should the government require that all Web sites follow these guidelines or a similar
set? Why or why not?
DISCUSSION
The four guidelines required by TRUSTe are:
1. Adopting and implementing a privacy policy that factors in the goals of your individual Web
site as well as consumer anxiety over sharing personal information online.
2. Posting notice and disclosure of collection and use practices regarding personally identifiable
information (data used to identify, contact, or locate a person), via a posted privacy statement.
3. Giving users choice and consent over how their personal information is used and shared.
4. Putting data security and quality, and access measures in place to safeguard, update, and
correct personally identifiable information.
Whether or not these guidelines are personally important to your students is an interesting
question. As young people continually grow up with technology, they are not nearly so concerned
about privacy as older groups of people.
Most of your students (if they are the typical college age) will not be in support of the government
intervention in these types of privacy policies. It makes for a great class discussion.

CHAPTER 1
Discussion Questions
3.

Reporting on Internet Statistics by Business Sector. NUA (www.nua.ie) claims to be the worlds
leading resource for Internet statistics and trends. Connect to NUA and choose one of the business
sectors located along the left side of the page. Pick a specific article discussing that particular
business sector and prepare a short report for your class. Which business sector did you choose?
What was the focus of the article you chose? Did some of the statistics surprise you? Considering
that you might be interested in working in a business sector on which NUA tracks Internet statistics,
would you find NUAs site useful in preparing to go into that business sector? Why or why not?
DISCUSSION
NUA is probably the leading site on the Internet for providing Internet statistics.
Its difficult to give you any concrete answers here as the site changes daily.
However, encourage your students to explore the Web site to learn more about the industry in
which they plan to work.

4.

Learning about an MIS Major. Using your schools catalogue of majors and courses (or the
catalogue of another school), briefly outline what classes you would have to take to major in
management information systems (MIS). Do any of the courses mention specific technology tools
such as Java or Oracle? If so, which technology tools are listed? Now, do some searching on the
Internet for salaries in the MIS field. What did you find? Does this particular major appeal to you?
Why or why not?
DISCUSSION
According to what your school offers, your students will develop their own correct answers.

5.

Reviewing the 100 Best Companies to Work for. Each year Fortune magazine devotes an issue to
the top 100 best companies to work for. Find the most recent issue of Fortune that does this. First,
develop a numerical summary that describes the 100 companies in terms of their respective
industries. Which industries are the most dominant? Pick on of the more dominant industries
(preferably one in which you would like to work) and choose a specific highlighted company. Prepare
a short class presentation on why that company is among the 100 best to work for.
DISCUSSION
Because youll be assigning this exercise at different times (and because we wrote this exercise in
mid 2002), we cant give you the correct answers for this project.
However, your students should find a considerable number of companies in the IT field that are the
best to work for according to Fortune.

6.

Redefining Business Operations through IT Innovation. Many businesses are building customerintegrated systems (CISs) as a way of redefining their operations through the use of information
technology. We discussed several in this chapter, with the most notable and obvious example
probably being that of banks offering ATMs. For the eight types of businesses below, identify how
they are using technology to offer customer-integrated systems. As you describe a CIS for each
business type, be sure to include what advantages you receive as a customer. Also describe how
you would have to interface with each type of business if it did not offer a CIS.
Airlines

CHAPTER 1
Discussion Questions

Grocery stores
Phone companies
Hotels
Fuel stations
Utility companies
Cable TV providers
Universities and colleges

DISCUSSION
We provide a couple of possible answers here.
Grocery stores self-scanning systems; major benefit to the customer is in getting through the
checkout process quickly when you have only a couple of items.
Hotels on demand-movies, express checkout, and Internet access; major benefits to the
customer include convenience and better hospitality.
Airlines e-tickets; major benefit to the customer is in not having to hold and maintain a paper
ticket.

CHAPTER 1
Discussion Questions

DISCUSSION QUESTIONS (p. 36)

1.

Knowledge workers dominate todays business environment. However, many industries still need
workers who do not fall into the category of knowledge workers. What industries still need skilled
workers? Can you see a time when these jobs will be replaced by knowledge workers? Can you
envision circumstances that would actually cause an economy to do an about face and begin
needing more skilled workers than knowledge workers?
DISCUSSION
The simple fact of the matter is that there are very few if any industries that still need nonknowledge workers (for lack of a better term). Clerks working at convenience store cash registers
can be considered knowledge workers. Perhaps in some industries such as construction and
manufacturing there are workers who solely work with their hands to produce a physical product. But
that is certainly changing as companies in these industries are empowering those employees to make
decisions and be innovative (within reason). Undoubtedly, very (very) few industries will ever do an
about face and begin needing more skilled workers than knowledge workers.

2.

Consider todays economic environmentwe have characterized it as the e.conomy, the now
economy, the global economy, and the arriving digital economy. For each of these characterizations,
identify why its an effect causing the remaining three. That is, how is the e causing the now,
global, and arriving digital economies, how is the now economy causing the e, global, and arriving
digital economies, etc.
DISCUSSION
Students can talk about access and speed to data and information
How has technology helped or hindered our economy?
How has society changed with digital economies?

31. The three key resources in management information systems (MIS) are information, information
technology, and people. Which of these three resources is the most important? Why? The least
important? Why?
DISCUSSION
The most important resource is people, plain and simple. People are the heart of any business,
regardless of its industry and regardless of the extent to which it uses technology.
The least important is really technology. We simply use technology to work with information. If
information were not so important, we would need much less technology.
32. Telecommuting is like all things: it has a good side and it has a bad side. What are some of the
disadvantages or pitfalls of telecommuting? How can these be avoided?
DISCUSSION
The most notable pitfall is that many people may not be as productive when away from the office.

CHAPTER 1
Discussion Questions
This can be avoided by choosing telecommuters according to work ethics, how motivated they are,
and whether or not they are self starters.
Another pitfall is that telecommuters often feel that they are not a part of the organization because
they get little or no time around the water cooler to informally network with other employees.
This can be avoided by having telecommuters come into the office frequently for formal office visits
and meetings.
33. As an information-literate knowledge worker for a local distributor of imported foods and spices,
youve been asked to prepare a customer mailing list that will be sold to international cuisine
restaurants in your area. If you do, would you be acting ethically? If you dont consider the proposal
ethical, what if your boss threatened to fire you if you didnt prepare the list? Do you believe you
would have any legal recourse if you didnt prepare the list and were subsequently fired?
DISCUSSION
Answers here will vary according to your students ethics.
It is legal for the distributor to sell a customer mailing list. So, depending on in which state you
work (and whether or not you work for a union), you may be subject to being fired.
34. How is your school helping you prepare to take advantage of information technology? What courses
have you taken that included teaching you how to use technology? What software packages were
taught? To best prepare to enter the job market, how can do you determine what software you need
to learn?
DISCUSSION
Answers here will depend on the extent to which your school uses and takes advantage of
technology in the classroom and the extent to which it teaches the use of technology.
You might get some good ideas from your students concerning how you could better use
technology to prepare them for the workplace.
35. Consider the ATM system that is now worldwide. How does it address your personal dimensions of
time, location, and form? Besides just tracking what transactions youve completed using an ATM,
what other information might your bank want to know and use concerning your use of the ATM
system?
DISCUSSION
Time you can use an ATM any time of the day, year around.
Location ATMs are all over the world, even in the most rural areas.
Form you can get the local currency if youre traveling abroad even if your bank is in the U.S.
Banks track a variety of information on people who use ATMs frequently time of day, location,
deposits versus withdrawals, number of account inquiries, etc.

CHAPTER 1
Discussion Questions
36. Information granularity changes according to the level of an organization. Consider your school, the
classes it offers, and the number of students who register in those classes. What sort of information
exhibiting coarse granularity would people at the highest levels of your school want to know? What
sort of information exhibiting fine granularity would people at the lower levels of your school want to
know? As a consumer (student), do you need fine or coarse information? Or perhaps both?
DISCUSSION
Coarse granularity number of students taking elective classes (for determining whether or not
your school should continue to offer them); number of students taking classes by time of day and
day of week (for optimal scheduling); number of students by major.
Fine granularity most notably, students by name taking a class (for the instructor).
As a student consumer, you need both. Coarse granularity would include the total number of
students in a class (i.e., has it reached its enrollment limit). Fine granularity would include a
detailed listing of classes being offered (time of day, instructor, location).
37. In addition to using neural networks to monitor credit card fraud, the same companies also use neural
networks to determine whether or not you are a creditworthy risk. By feeding in thousands of credit
card applications, the neural network develops a pattern of who is and what isnt a creditworthy risk?
Basically, the neural network compares your credit application to those of past ones and recommends
an action. What do you think about that? Should you be given or denied a credit card based on what
others have done (or failed to do)? Why or why not?
DISCUSSION
Answers here from your students will vary greatly.
The key is that these neural networks are not developing patterns based on such characteristics as
gender and race.
38. Many schools use groupware to offer distance learning classes. Instead of going to class, you
communicate with your instructors and classmates via technology. Would you like to take distance
learning classes? What are the advantages? Can you learn as much without going to class and
personally interacting with your instructor and classmates? What might be some of the
disadvantages of distance learning? Is there a happy medium how about going to school for only
one class session per week and then attending the other virtually via technology? Is this a good or
bad idea?
DISCUSSION
Again, answers here will vary greatly among your students.
Many students want to come to class because they enjoy the campus experience and being with
their friends.
Others will want distance learning so they wont have to drive, can live in other locations, etc.

CHAPTER 1
Discussion Questions
39. We often say that hardware is the physical interface to a technology system while software is the
intellectual interface. How is your hardware your physical interface to your computer? How is your
software your intellectual interface to your computer? Do you see technology progressing to the point
that we may no longer distinguish between hardware and software and thus no longer perceive
differing physical and intellectual interfaces?
DISCUSSION
Hardware is the physical interface because it is the physical devices that make up a computer.
Hardware is the also the set of devices we interact with physically typing on a keyboard, moving
a mouse, viewing something on the screen.
Software takes over steps that we would otherwise perform with our mind adding two numbers
together, creating a graph, etc. So, it is our intellectual interface.
Who knows if technology will ever progress to the point that we cant distinguish between hardware
and software.
However, our view of technology is changing. We see it as an integrated set of tools. That view
may make hardware and software indistinguishable.

CHAPTER 1
Real HOT Electronic Commerce

REAL HOT ELECTRONIC COMMERCE

Using the Internet as a Tool to Find a Job (p. 37-39)
This is a great starting e-commerce project to enable your students to better understand that the Internet is
not just a fun place to surf and meet people. Todays electronic job market is growing by leaps and
bounds.
Many organizations rely exclusively on the Internet to advertise job openings and accept applications from
potential employees.
We recommend that you create six groups of students, each one of which will address a different section in
this project. Ideally, there should be about 4 to 5 students per group. If your class is large, all of your
students dont have to complete this project you can assign the remaining students to the e-commerce
projects in other chapters.
Whatever the case, this project is worthy of a class demonstration of some of the findings of your students.
Job Databases
There are hundreds if not thousands of job databases on the Web.
You should encourage your students to become very good at searching various job database sites in
different ways by location, by job title, by key word, by industry, etc.
This is a valuable class demonstration consider having some of your students demonstrate how to
search various sites.
If you want, you can also ask your class to compile a list of job database sites that are particular to their
type of major (business, technical, service, etc.).
Creating and Posting an Electronic Resume
We devoted all of Extended Learning Module I to developing an e-portfolio, a much broader gallery than
a simple electronic resume.
Consider having your students look at that module.
When creating an electronic resume for a job database Web site, your students will most often fill in a
template with their personal information and be allowed to change it whenever they want to.
Searching Newspapers the New-Fashioned Way
This is a good section if your students want to find employment locally.
Most major newspapers also post jobs in other locations.
Most major newspapers have also developed business partnerships with some of the major job database
Web sites such as Monster.com.

CHAPTER 1
Real HOT Electronic Commerce
Locating That All Important Internship
You should have all of your students work through this section.
This is a growing employment area on the Web.
There are literally thousands and thousands of posted internships.
Have some of your students apply for some internships through these sites and monitor their progress
through the term.
Interviewing and Negotiating
Weve noticed that very few undergraduate students (and not that many more graduate students)
possess the appropriate interviewing and negotiating skills.
You might want to take some time in class and go over some of the better tips and suggestions on some
of the better sites your students find.
Going Right to the Source: The Organization You Want
Businesses are certainly posting employment opportunities on their Web sites.
Many are posting internships and summer employment as well.