SFU BUS 237 complete Midterm Notes for 2026
Introduction to Business Technology Management
Simon Fraser University
Chapter 1: MIS
• Management Information System
o Is the study of how organizations use information systems to collect, process,
store, and distribute information to support decision-making, coordination,
control, and competitive strategy.
o MIS is not just about technology. It focuses on how technology integrates with
business processes and people to create value. A firm can buy the same
hardware and software as competitors, but the way it integrates technology
into its operations determines whether it gains a competitive advantage.
• Information Technology (IT)
o IT refers to the technical components of computing, including hardware,
software, and networking infrastructure.
o IT is the toolset. MIS is the discipline of using the toolset strategically. IT is
technical; MIS is managerial and strategic.
• Information System (IS)
o A system of hardware, software, data, procedures, and people that produces
information.
o Technology alone is not an IS. People and procedures are critical. For
example, a CRM system is useless if employees don’t follow proper data-entry
procedures.
o Components (if one fails, the system fails):
▪ Hardware
▪ Software
▪ Data
▪ Procedures
▪ People
,• IT vs. IS
o IT = hardware + software + data
o IS = IT + procedures + people
o You can buy IT. You must design and manage IS.
o IT alone will not help an organization achieve goals; it must be embedded into
an IS to accomplish objectives.
▪ Technology must be combined with people and procedure components.
▪ IS makes IT useful.
• Moore’s Law
o The number of transistors per square inch doubles every 18-24 months.
o Moore’s Law is possible because the distance between the pathways inside
silicon chips gets smaller with each successive generation.
o Implications:
▪ Processing cost approaches zero.
▪ Storage becomes cheaper.
▪ More data is generated.
▪ Enables AI, cloud, and big data
o Limits:
▪ Heat
▪ Power
▪ Size
, • Waves of Computing
o First Wave – Mainframes
o Second Wave – Personal computers
o Third Wave – Internet computing
• Network Effects
o Value increases as the number of users increases.
o Creates:
▪ Switching costs
▪ Lock-in
▪ Barriers to entry
• Nonroutine Cognitive Skills
o Automation replaces routine tasks.
o Managers need:
▪ Abstract reasoning
▪ Systems thinking
▪ Collaboration
▪ Ability to experiment
• How will IT and IS affect the way we live and work?
o Changes in business because of advances in IS/IT.
o Mobility devices change the way we travel to work.
o Work will be portable and come to you.
o The ability to handle data will be an important new skill.
• Digital Transformation
o The integration of digital technologies into all business areas is fundamentally
changing how value is delivered.
o Why do firms fail?
▪ Lack of alignment with strategy
▪ Overinvestment in hype technologies
▪ Poor change management
▪ Cultural resistance
• Competitive advantage through technology
o Technology creates an advantage when it:
▪ Lower costs
▪ Differentiates products
▪ Creates switching costs
▪ Builds network effects
▪ Strengthen data assets
▪ Improves distribution channels
▪ Raise barriers
▪ Lock in suppliers
▪ Lock in customers
Introduction to Business Technology Management
Simon Fraser University
Chapter 1: MIS
• Management Information System
o Is the study of how organizations use information systems to collect, process,
store, and distribute information to support decision-making, coordination,
control, and competitive strategy.
o MIS is not just about technology. It focuses on how technology integrates with
business processes and people to create value. A firm can buy the same
hardware and software as competitors, but the way it integrates technology
into its operations determines whether it gains a competitive advantage.
• Information Technology (IT)
o IT refers to the technical components of computing, including hardware,
software, and networking infrastructure.
o IT is the toolset. MIS is the discipline of using the toolset strategically. IT is
technical; MIS is managerial and strategic.
• Information System (IS)
o A system of hardware, software, data, procedures, and people that produces
information.
o Technology alone is not an IS. People and procedures are critical. For
example, a CRM system is useless if employees don’t follow proper data-entry
procedures.
o Components (if one fails, the system fails):
▪ Hardware
▪ Software
▪ Data
▪ Procedures
▪ People
,• IT vs. IS
o IT = hardware + software + data
o IS = IT + procedures + people
o You can buy IT. You must design and manage IS.
o IT alone will not help an organization achieve goals; it must be embedded into
an IS to accomplish objectives.
▪ Technology must be combined with people and procedure components.
▪ IS makes IT useful.
• Moore’s Law
o The number of transistors per square inch doubles every 18-24 months.
o Moore’s Law is possible because the distance between the pathways inside
silicon chips gets smaller with each successive generation.
o Implications:
▪ Processing cost approaches zero.
▪ Storage becomes cheaper.
▪ More data is generated.
▪ Enables AI, cloud, and big data
o Limits:
▪ Heat
▪ Power
▪ Size
, • Waves of Computing
o First Wave – Mainframes
o Second Wave – Personal computers
o Third Wave – Internet computing
• Network Effects
o Value increases as the number of users increases.
o Creates:
▪ Switching costs
▪ Lock-in
▪ Barriers to entry
• Nonroutine Cognitive Skills
o Automation replaces routine tasks.
o Managers need:
▪ Abstract reasoning
▪ Systems thinking
▪ Collaboration
▪ Ability to experiment
• How will IT and IS affect the way we live and work?
o Changes in business because of advances in IS/IT.
o Mobility devices change the way we travel to work.
o Work will be portable and come to you.
o The ability to handle data will be an important new skill.
• Digital Transformation
o The integration of digital technologies into all business areas is fundamentally
changing how value is delivered.
o Why do firms fail?
▪ Lack of alignment with strategy
▪ Overinvestment in hype technologies
▪ Poor change management
▪ Cultural resistance
• Competitive advantage through technology
o Technology creates an advantage when it:
▪ Lower costs
▪ Differentiates products
▪ Creates switching costs
▪ Builds network effects
▪ Strengthen data assets
▪ Improves distribution channels
▪ Raise barriers
▪ Lock in suppliers
▪ Lock in customers
