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BUS 237 NOTES:
o MIS main components: Hardware, software, data, people, procedure.
o MIS is the development and use of information systems that help businesses reach
o Difference in IT and IS: IT is the raw technology and concerns only the hardware,
software and data components of an information system and how they are networked
o IS is a system of hardware, software, data and procedures and people that produce
information. IS includes PEOPLE.
o A business process: Network of activities, resources, facilities, and information.
o Information: knowledge derived from data. Data is recorded facts or figures.
o What is Good Information?
o Just barely sufficient.
o Worth its cost.
o Decisions Occur at three levels in organizations: Operational, managerial, and strategic.
Day to day activities. Transformational
Allocation and utilization of resources. MIS
Concern broader organizational issues. Executive
o Decisions vary by structure. Refer to the decision-making process.
o Structured decision: Understood and accepted method for making the decision.
o Unstructured decision: there is no agreed-upon decision-making method.
o Productivity paradox: “We see computers everywhere except in the productivity
o Response to paradox: the value that can be derived from IT investment.
o Increasing efficiency: business processes can be accomplished either more quickly or
with fewer resources . “ Doing things right”
o Increasing effectiveness: “ doing the right things” : offering new or improved goods or
services that the customer values.
o A value chain: network of activities that improve the effectiveness(value) of a good.
o Margin: difference between what customer pays and the cost the company incurs for
the finished good.
o Primary activities: Value is added directly to the product.
o Support activities: do not add value directly to the product but nonetheless necessary
for the company.
Organizational strategy and industry Structure:
o Organizations examine these five forces and determine how they intend to respond to
them. Examination leads to what is referred to as organization competitive strategy.
o Two types of innovations:
o Sustaining technologies: maintain the rate of improvement in customer value.
o Disruptive technologies: introduce a very new package of attributes to the accepted
o Diffusion of innovation: How quickly the innovation catches on. 5 steps
o Competitive advantage by creating new products or services, by enhancing existing
o Competitive advantage by business processes: Lock customers into contracts, hard for
them to leave. Ex phone companies.
o Long-term competitive advantage lies not with the technology but rather in with how
the company and people adopt then technology.
o Sustained competitive advantage comes from developing people and procedures that
are well supported by the technology.
o The First commercial digital computers were large room sized devices called
mainframes, and were mainly used by business and government.
o 1975-present: microcomputers were born.
o 1985-present: Networking personal computers.