Introduction to Information Systems

ISOM 2010
Lecture 2: Digital Economy (I)
(Information, IT, Internet Bubble I)
Prof. Michael Zhang

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MacBook Pro
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Al Gore

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Obama

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Fasten Your Seat Belt

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Issues to be covered

The Digital World

Data, Information, and Information Systems
Information Systems in Organizations.
Working in the Digital World.
Ethics

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Conceptual foundations
Information
Useful, meaningful data for users (a person, an
organization) in a specific context

Information Technology (IT)

Technology for managing information
(hardware, software, networking, database)

Information System
A set of interrelated ITs that work together for a
common purpose

What is the simplest form of IS?

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Information
Is this information?

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Information
Integrated Circuit Card

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Magnetic Stripe

617577574

Bar Code

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Information

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Information

RFID

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Auto Toll

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MICHAEL X ZHANG
12 Dec 2015

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Information System

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Information Technology

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Internet Users: 2013

USA has 280 million Internet users
Europe has 410 million Internet users across 50
countries.
China has ___ million Internet users
A. >30
B. >160 C. >340 D. >640

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Internet Population and

Penetration

Internet penetration nears saturation in developed economies...

Internet Users: Early 2008

USA has 215 million Internet users
Europe has 308 million Internet users across 50
countries.
China has ___ million Internet users
A. 30
B. 60 C. 140 D. 210
With a growth rate of 30% year, it takes ____
years for China to catch USA.

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Smart Phone Growth

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Increasing Speed

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Mobile Usage Market Share

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Smartphone Market Share

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Growth Projection

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Nature of the digital economy

Globalization
Digitization
Speed

New markets

Merger of
products
Role of ideas

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DOWNLOAD: The True Story of

the Internet
In the video, which 2 companies introduced
the innovation that started the boom,
bubble, bust and resurrection?
Amazon and eBay

Where is the best place to look for high-tech

startups?
Garage
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Questions
Jeff Bezos or Pierre Omidyar, which one is a
data junky? Who is obsessed with analysis
and strategically planning?
Jeff Bezos

Did the success of the two companies go

unnoticed at the Wall street?
Wall street paid a lot of attention to them.
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 What is Moores law? Why is Moores law

important?
Computing power doubles every 18 month
The Journalist mentioned frenzies introduced by
railway, telegraph, canals, automobile, and
eventually the Internet to make what point?
Breakthroughs in technology bring financial bubble.

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 Jeff Bezos said his company has rising

revenue, but also rising costs. At one point of
time, his company actually made a profit for
a quarter, but nobody would like to admit it,
It was an accident.
because __________.
Any chance Bezos gets a chance, he lowers
the prices to boost the sales, which he
Get big fast
summarized with 3 words _______.
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 Encryption:
Whats the flaw in sending confidential
message?
Its difficult to transfer the password.
And the solution is for the receiver to send the lock first.

Omidyars companys issue price was $18, it

went up to $50. Bezos companys stock
price doubled within a few weeks, this
brought
response
from the market?
Wall what
street went
crazy.
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Outline
2 companies
Amazon + eBay

2 laws
Moores law + MetCalfes law

Public key encryption

Amazons secret
eBays IPO

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Survey Time

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The End