Trends in Management Information Systems

Business analytics can identify and analyse patterns but perhaps, more importantly, they can reveal the likelihood of an event. This information can be worth millions and even billions of dollars to companies, organisations, and governments.

In analysing big data, two trends in analyses have emerged. First, the typical statistical approach of relying on p values to establish the significance of a finding is becoming less trusted because, with extremely high sample sizes, almost everything becomes significant. In contrast, the focus of analysis is shifting more to the size and variance explained (ie examining for example R-squared).

Stepwise regression and cluster analysis are becoming more widely used to supplement traditional p-value analyses. Second, in analysing big data, there is a shift from focusing largely on aggregates or averages to focusing on outliers as outliers often reveal (predict) critical innovations, trends, disruptions, and revolutions on the horizon. In essence, knowing more about who is not your customer and why may be as (or more) important than knowing about your customer. Perceptual mapping and multidimensional scaling are being more widely used to explore outlier patterns. By 2018, global data analytics software is expected to reach $21.7 billion, a 64 percent increase from 2012.

Leading firms providing the software include IBM, SAP, Oracle, Microsoft, Qlik Technologies, Tibco Software, and Tableau Software. A management information system (MIS) receives raw material from both the external and internal evaluation of an organisation. It gathers data about marketing, finance, production, and personnel matters internally, and social, cultural, demographic, environmental, economic, political, governmental, legal, technological, and competitive factors externally. Data are integrated in ways needed to support managerial decision-making.

Source: Based on George, G., Haas, M., & Pentland, M. Big data and management. Academy of Management Journal. (321326).

Task:

Critically evaluate and discuss the implications of e-business and technology on the content, context, and infrastructure of companies in todays competitive business environment. Provide recommendations on how the new trends of MIS and e-business strategy can be improved to deliver competitive advantage.