Week 1 - Chapters 1-3

Chapter 1 - Organizations, Management, and the Networked Enterprise

The first chapter of Management Information Systems by Laudon and Laudon introduces the major themes of the textbook, exposing us to what is an information system and what are its associated management, organization, and technological dimensions.  The chapter highlights the increasing prevalence and reliance upon information systems in the business world.  A cited study notes that business capital investment in information technology has grown from 32 percent to 52 percent between 1980 and 2011.  I found this statistic to be quite interesting in terms of being a specific tangible measure of something that otherwise seems likely, if not obvious.  These trends are tied to an increasing worldwide commonality of the Internet, cell phones, texting, and other means of instantaneous communication.  These trends have tremendous impacts on businesses and how they operate while posing both challenges and opportunities.  They changes are interrelated and generally relate to emerging mobile platforms, big data (web traffic, social media content etc.) and its management, as well as the growth of cloud computing.  As a practical and identifiable example of the necessity and utility of an informational system, I found the highlights of the United Parcel Service (UPS) to be insightful (p. 23-24).  For one, the importance and purpose of the bar-coded label and the tangible benefits in customer convenience and cost savings that this technology provides (UPS estimates its delivery trucks save 28 million mile and burn 3 million fewer gallons of fuel each year).

Chapter 2 - Global E-business and Collaboration

Information systems can largely automate many steps of necessary functional business processes, including enhancing information flow, payment processing, and supplier and/or customer interactions.  Business intelligence a terms that describes the data and software tools for organizing, analyzing, and providing access to help managers and enterprise users make more informed decisions.  A non-routine type of business intelligence system are decision-support systems (DSS).  DSS focus on problems that are rapidly changing, one in which the procedure for arriving at a solution may not be fully predetermined in advance.  DSS is actually something that my organization (National Weather Service) has become increasingly mindful and forward thinking about over the past five years or so in terms of unique and adaptable services we can provide.  This is contrast to the longstanding one-size-fits-all means of information dissemination.  Collaboration serves an increasingly important role for businesses in terms of enhancing innovation, productivity, quality, and customer service.  Tools for such collaboration include e-mail, instant messaging, social networks such as Twitter/Facebook, wikis, and virtual meetings.  I am somewhat relieved that I have been at least exposed to, if not readily utilize, all of the tools and technologies mentioned within the chapter.

Chapter 3 - Information Systems, Organizations, and Strategy

The chapter begins with an interesting synopsis on Sears-Roebuck.  After being the longstanding (around 40 years) largest retailer in the United States, Sears has steadily lost ground to its competitors.  As something I would not have expected, it was interesting to read that at one time Sears spent more on information technology and networking than all other non-computer firms in the United States, except for Boeing Corporation.  Sears used its huge customer databases (60 million) to target its offers and promotions.  However, it is noted that these efforts did not translate into a competitive advantage because Sear's cost structure was one of the highest in its industry.  The company has struggled to escape from its rut and new technology strategies have generally failed including online shopping, mobile apps, and an Amazon.com-like marketplace.  Sears CEO Lou D'Ambrosio believes that an even more intensive use of technology and data mining is the answer in terms of potentially making promotions, merchandising, and selling more effective.  Through a rewards program, customers are offered free deals for repeat purchases if they agree to share their personal shopping data with the company.  Since I rarely if ever shop at Sears, it was interesting to learn about their program and leveraging of customer information.  These incentives are frankly not something that will likely change my (or my family's) shopping habits any time soon, but I look forward to watching the viability of these changes and what they hope will contribute to a revitalization for Sears.