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apologize first and foremost about the lecture time and date changing was something came up at the last minute that I had to attend to around 1:00 so do apologize for that all the other lecture should still happen at 1 a.m. or 1 p.m. rather not what I am but beyond that you know I do want to just go ahead and record this so I can upload it and everyone can kind of watch it whenever it works best for them also I wanted to make a quick note about the exam bonus points so basically how that's gonna work is if you attend the lecture live you can speak up to two times well you can speak really infinite times but you're able to get up to two points on each exam so for example if you spoke you know if I had a some sort of a discussion question or something you spoke up I'd write your name down and at the end of the lecture whatever I'd make sure to add the points and then also because this is a online class that really had a official universe or let me rephrase that without a university sanctioned time you can also of course you know put it inside of the comments and I'll make sure to give you a point on the exam for that so if you have any questions about that just drop it inside the team's or let me know and I'll certainly get to them but beyond that I do want to go ahead and start the lecture for chapter one so if you have any questions certainly let me know okay so the slides for a lecture one should be coming up here okay here we go so yeah today is all about introducing information systems telling what they are how they're used all that sort of stuff so you know the first thing to kind of do is to define what information systems are and we'll do that in just a little bit we'll talk about how organizations use them we'll also talk about how information systems the technology on the whole affects Society so we're gonna skip this survey for now but basically I don't ever like to have a lot of exam questions that focus on definitions that's more of a quiz thing you know in the exams I really like to see can you apply the concepts can you take what the concepts are talking about and apply them to business problems I say I don't like focus on definitions but definitions are still important because we don't understand what the concepts are be very challenging to apply them you know it's like at the very basic level you have to have the knowledge of what something is to be able to in apply it and be able to you know solve problems with it so let's just start by reading this definition for information system off is something that collects processes stores analyzes and disseminates information for specific purposes so basically it's just a system that is going to be involved with collecting information is gonna be involved with processing that information making sense of it that's what this is all about so probably the most famous example that is going to be an ERP which stands for an enterprise resource planning system and basically what this is this is a system that is basically all-encompassing within an organization so if we're a company it's going to encompass pretty much everything we do so at the basic level we have done here finance and accounting and that's going to be any sort of transaction that comes through we're going to have that all inside of one place there's gonna be very beneficial from that perspective to be able to kind of have all the financial information we can easily run analysis on stuff to see what are sales we could see which region is having those sales anything with that it's not just sales it's it's any sort of financial information is all within that place we can see where each dollar flows in the organization human resources that's a very important thing to have we need to know where employees are what they do how much we're paying them other information beyond that for example how much your competitors are paying their employees we get that information that could be good for us to have you look any good for recruiting aspects you know where do we need to have more employees where could we maybe have fewer employees you know how can we best utilize our human resources that's all encompassed within this ERP manufacturing so traditionally ERPs are designed for manufacturing companies however they're not exclusive to manufacturing firms a lot of firms don't do manufacturing but they still use ERP this is really whatever the primary business activity is so we will talk about the porters value chain in I believe chapter 10 but the whole idea is that we have primary business activity that's what is primarily driving our revenue and then we also have support activities that's everything else mostly stuff we have to do but it could be other things as well you know is in most cases is not going to be a primary business activity in most cases it's going to be a support activity but really I would like to think of instead of saying manufacturing we would instead say primary business activity this is gonna have things like inventories it's gonna have things like what do we need to do to basically generate value I also have supply chain management of course that is things like you know shipping times you know all that sort of stuff in the supply chain we have an entire chapter on supply chain so don't worry about it too much for now we have project management of course the difference when a project and a process is that in a project has a set start date and a set end date whereas a process is something that's gonna be ongoing it has neither a start they ignore an end date but the whole idea behind both is that you have something that's going to get done that's going to be not necessarily completely separate from your standard operations but typically we think of it as being separate from you know your standard primary and business activities and then lastly customer relationship management having a database that keeps track of all of our customers and you know what they do what they purchased from us you know even information like who their family are because you want to know that stuff if you're going to be doing a lot of sales so you can better reach your customer so we have a whole chapter on that so I'm not going to focus too much on it from now let me know if there's any questions certainly feel free to interrupt me if you need to but there's some other types of information systems as well and these are very important you know you probably see an exam question or two on these I'd imagine you'll definitely see one on ERP so make sure you're worried what the components are and kind of why the components are there and just make sure you know that these are all integrated we did show this is one system that houses basically the entire organization's operations yeah some other types of information systems these are gonna be more specific to a purpose they're not for the entire organization but they they certainly serve a more distinct purpose so a decision support system it's gonna be an information system that is in place to provide support for different actions so a lot of times these are in the form of doing like a comparison between several different options it'll go ahead and tell you what the likely outcomes of this are so for example if you're a bank and you have a decision support system in place to tell whether someone should get a loan or should not get a loan well the thing with the decision support system is is that in the traditional sense it's not going to tell you this person cannot get a loan it's gonna suggest maybe a likelihood that this person will default on their loan and then of course factor in things like credit score you know their income you know maybe their other debts which I guess would technically be in credit score as well so maybe you'd have a little bit of multicollinearity there but certainly that's the whole premise is that it's not actually telling you what to do that's not a decision support system instead it's providing you with support and you know giving you one place to kind of have all that information and maybe giving you some likelihoods based on previous decisions that were made transaction processing systems can be used by organizations to so handle transactions well how am I getting off track here yeah so the entire concept with these is that you know you have transactions that are taking place a sale is happening you're buying something either way it's going to go through the transaction processing system and the entire concept with these is that they run very efficiently and allow you to have very many transactions if you didn't have transaction processing system it'd be a lot more difficult to have sales probably be a lot more cash based as well because transaction processing systems are used pretty heavily by credit cards and you know allowing for non-cash payments to take place just imagine if you're at a grocery store instead of scanning all the barcodes you know they they had a little calculator there and they added up the total and you paid in cash that'd be kind of difficult I would certainly be a lot slower I think it's fair to say I think what we have today where you know a lot of times you don't even have a cashier at all depending on which store you go to you know executive support systems SNA implies they're going to provide information that's relevant to executives so the primary audience is probably c-level executives this could be things like very large strategic decisions like a site selection stuff like that where it's gonna focus on the executive perspective and have things are heavily tied to you know what executives care about basically expert systems they're going to be systems that are designed and kind of put in place to provide very specific guidance and very specific information for one very specific role so these could be things like if you have you primary business activity let's say is making pizza so maybe your expert system would be things that have lots of pizza recipes lots of Pizza techniques to make good pizza it would also have things like how do you order the best ingredients for the lowest price that's all gonna be inside of an expert system it it typically is going to relate to your primary business activity but it doesn't have to knowledge management systems we actually have an entire chapter on this that we'll get to uh-huh probably not the most exciting chapter but it's a good chapter basically the whole concept behind this is that it's a information system that stores you know frequently asked questions maybe possibly as stores you know knowledgebase articles you know things about what your organization is doing and basically how to do them so these are great they really are beneficial if you have organization it's a lot of turnover or even one that doesn't have a lot of turnover but still maybe you know they aid in communication because if you can imagine an organization that has substantial amount of turnover there may be a lot of cases in which there is organizational knowledge that could be lost if the person leaves so if it's recorded inside a knowledge management system that knowledge is less likely to be lost and then lastly we have financial market systems and those are going to be systems that basically enable the trading of something so it could be trading of stock simply trading of exchange traded funds they could be trading of equity whatever the case may be sorry I dropped my pin there uh-huh but uh yeah so the whole concept is is that these are going to be something where you basically can have information about something that you want to purchase it's typically going to be something financial of course which is in the name there and yeah we have a lot of examples of those you know we have Bloomberg for example if you're ever on a campus and you come into the McCool you've probably seen the strategic finance lab it's right there across from I think it's called the East Center or something I don't know but anyway I highly recommend you check out the Bloomberg terminals when you get a chance they're great tools I would highly recommend them for any business business major or even anyone's just interested in finance they have a ton of great information in there they actually have free training built into them so you can basically type in BMC Censored Bloomberg market concepts it's great training to do if you ever get a chance and that's something that if you take nothing away from this course other than that check out the Bloomberg terminals but also take a lot more away from the course than uh just that let's talk a little bit I T if there's any questions feel free to jump in here basically IT is comprised primarily of four things it's compressed hardware software databases and network and basically what this implies is that we have IT you know the hardware sense so we think of hardware hardware is basically just you know computers any sort of physical device is considered Hardware if it's a technological device so maybe even smartphones if they're owned by the organization or managed by the organization anything like that we're gonna have it's gonna be considered Hardware also things like video conferencing equipment it's probably also going to be hardware so things like that that organizations use to conduct their business to support the business however they use them software is gonna be of course the applications that are run by the organization to enable the hardware to do something if you have a computer sitting there that doesn't have any hardware on it in most cases it's not going to be very useful to an organization all right especially if you don't even have like an operating system and that's also software so basically software is what is you know enables the running of applications which of course are why we actually have the hardware in the first place databases are basically just a way to say I wouldn't necessarily use a term database here I would use a more generic term like file storage but that's just me the whole concept is that we have the hardware and the software and then we also have data associated with it so we don't just limit ourselves to having you know the software we also have maybe past performance theta all of our data is gonna be stored you know in some way so I wouldn't necessarily use a term data storage here our database I would instead use maybe data storage something doesn't imply that it's in a structured database because most of the data frankly is not gonna be inside a database and then last we have Network which of course is just a communication between these different different devices and this could be inner organization could be extra organization but we're not going to focus too much on network quite yet we do have to check this actually on a network we'll cover them both in the same day a pretty interrelated database as well we have a chapter on that and software we have a technology guide on and hardware I believe we also have a technology guide also each of these components are what make up IT and we have basically a chapter or at least a couple pages on each of them now information systems is all of those things and it's also people and processes so when we think of information technology in the definitional sense I should say it is basically technology but when we add in information systems we also add in the people that comprise the organization and we also add in the processes that those people go through to enable technology to be used in the organization so really the only difference between IT and is is that is is more more encompassing in its scope in that it includes both people and processes there will be a test question about that but I'll also say this and that is that in most organizations they have an IT department and the IT department in most organizations includes people and processes so I would say that most organizations don't actually make a distinction but there is a distinction and for the exam certainly know what that distinction is so I hope that's clear it's like a brief look at this chart I think this is very interesting chart here it's it might not be figure 1.5 in the book I really don't know but I know it is in the book somewhere so uh you know certainly it could b
different in your version of the book that you're using but this is a really interesting chart because what this shows this shows the organization and basically this is going to be an inner organizational information system we'll get to that I believe in chapter 10 but the whole concept is is that we have information that's flowing throughout an organization and it's flowing enabled by an information system so we have customers they're ordering stuff they're paying us and in return we're giving them product could be digital product could also be physical products but they're interfacing with us through an information system and then we have business business transactions happening in a similar way I don't need to make that distinction and it's sharp but you can so we also have orders and payments and products flowing and then we also have supply relationships so with suppliers we're getting information from them we're ordering from them and we're paying them and they're shipping us materials so we'll cover a supply chain management talk about you know tier 1 tier 2 to 3 suppliers but the whole concept is that we have relationships with suppliers and we need to purchase stuff from them in a business the business fashion so we're selling to people we're selling goods or services to businesses maybe for selling to customers but we're also purchasing stuff so all that can be enabled through an information system and it could be pretty seamless if done properly or done well kind of shift gears a little bit here talk about some benefits of Technology so of course there's a lot of things that technology does to help our society of course you can also read a lot of things that technology does to uh maybe not help Society but you know you can make of that what you will I'm not here to state my opinion on it but certainly having a technology to make things a lot more accessible so recently there was the GAA D Day and I don't remember exactly what that stands for but it has to do with something about accessibility I surely should know what that stands for sorry about that but anyway you know it was a big drive to have you know make sure that any document any website anything is published is accessible to people with disabilities so I think it stood for something about global accessibility Awareness Day I think that's what it stood for certainly probably want to double check me on that it's not only exam but uh certainly it's it's an exciting thing it's something that makes technology accessible - or make stuff accessible to people through the technology so for example if I make a PowerPoint slide and I have a graphic like this I should I should have added a caption to this I didn't but I should have and that way if someone were blind they could screen they could use a screen reader and they could still figure out what that caption what that image was I don't believe I have any blind students this semester so I I didn't do that is something I should do but it's not something I'd do this is built into Microsoft Office pretty much all the applications now you can use the accessibility checker and it'll tell you stuff like that and says suggest ways to improve your presentations or documents or whatever you're using that's something that can really be good of course you know devices also have you know things to assist people with various disabilities so that's something that's very good and it's something that through technology is far less costly than it would be through other means if you imagine having a you know having to have a personal assistant hired if you were blind for example I'd be quite costly whereas with technology maybe you don't need to have a personal assistant a technology plus of course their service center but you get the idea it certainly reduces the cost of accommodating which is a good thing and we also have you know having better understanding in analytics so if you think back to the financial market system that we talked about a couple slides ago this is something that really kind of factors in here and enables us to have a far better understanding than we could otherwise so if you think back you know thirty years it's not that long ago you couldn't just go get a 10k from a company its annual filing from a company in a matter of seconds you know and you couldn't just scan through it quickly and you know you'd have to read through it there would be no control if there would be no searching page so you know we can very rapidly understand things this goes well beyond you know picking stocks or whatever we do this extends into everything you know we can see a lot more information we can process it with you know power that wasn't possible 30 years ago you know if used to be if you wanted to look into a company's annual filings you probably got a mailed to you and if you had say ten different stocks it's not that many you know stock in ten different companies you'd probably get a lot of paper mailed to you you need talking about thousands of pages and you'd have to read through that if you were interested and you know it'd be a lot more difficult to make real-time decisions you know we talked about the efficient market hypothesis that's really enabled by technology and in a large sense because you know we can have very rapid changes if you're on the Bloomberg turbulence that's gonna be probably I would say one of the fastest platforms for this is you know having the ability to have understanding and only we can easily drill down into information we could do all kinds of things it's really beneficial from that perspective health and safety as well as benefited from technology we think about you know a lot of the hospital equipment is gonna be tied in to technology and it's going to really enable us to see real-time data you know to see how a patient's doing and we can in some senses and again I'm kind of getting out of my traditional wheelhouse here but I would imagine that with that we can probably staff our facilities more efficiently reduce cost because if we can know exactly how each patient is doing you know what their vital signs are at any given time we don't need to have it monitored as closely in person maybe we can have things more central of course I don't think the healthcare costs are going down but that's a completely different discussion we could that's something that technology can benefit you know security this is both physical security digital security something that benefits it greatly we think about a large organization you know imagine if we use physical security for an organization the size of let's use Walmart as an example you know imagine if they didn't have any sort of a cart access or they didn't have any sort of non-physical security well every time that they would let someone go they'd probably to change the locks that'd be quite difficult for an organization of Walmart's size of course I use them as an example I'm pretty sure they don't use a digital access but that's a different story imagine they did you know a hotel let's use a hotel that's probably a better example here because those organizations mostly I've been using you know sort of digital access for the past 20 years at least and you know that's very beneficial it makes things a lot more secure because as guest leaves they can't make a copy of a key you know the key will not look well no longer be active and you know if they want to access the room later they have to you know thanks like booked it again or you know say hey I'll let something there can you let me in real fast you know that's something that uh is not really possible about technology now if you had to have a maintenance person change the locks on a door every single time someone left a hotel room be pretty pretty unfeasible and you know security goes well beyond this we also have secure cameras of course we have extremely high-resolution security cameras we can do facial recognition we can know exactly who was in a building at what time were they were what they were doing and you know there's certainly a lot of controversy surrounding that I'm not gonna go into that too much but it is something that is taking place and then also we have calls to standard of living so with many things with the advent of technology because has greatly diminished go back to the example of a financial market system I used to be you had a you know some sort of a stockbroker or something they were basically taking a very large Commission every time you did a transaction and now that that's kind of changed a lot we have trades that can happen at zero dollars many brokerages do that that was kind of a recent thing with a I'd probably say that Robin Hood started a lot of that but there are many other platforms now that have zero Commission trades and that's that's huge you know it certainly is very beneficial at day traders in particular they're not having to pay a commission every time they make a transaction you know a buyer sale that's one example of technology helping cause there's really a multitude of technology reducing the cost of goods and services now there's also examples of technology raising the cost against the services but I think that by and large you think that it's going to have an overall effect of moat in most cases reduce the cost of goods and services and also it affects a standard of living greatly so go back to my example you know fifty years ago what was life like well there was no internet he probably didn't have a personal computer you know you didn't have a smartphone probably didn't even have well you definitely didn't have a cell phone it wasn't invented you fast forward 30 years you might have had a cell phone maybe but you know you as we've progressed our senator living has increased pretty substantially and that's something that's very beneficial to society as a whole so we'll take just a moment here you want to throw in anything about technology and if it's beneficial or harmful you don't have to be like I say there I'll give you some points on exam one if you would like to add anything here or just about anything we've talked about that's certainly fine I like I say I don't require participation anything like that well not for I'm not for lectures but you know fourth group assignments we will but that's a different story so yeah I mean certainly you also had the opportunity of course if you're watching this later or if you're watching it now you can also of course share your thoughts in chapter 1 on that little discussion thing that I posted I just make sure you do it by midnight tonight that way I can you know add the points otherwise it will technically be late and I don't accept late assignments but again this is not really an assignment it's more of a bonus point so keep that in mind let's talk a little bit about how technology affects disciplines so accounting is one that has been greatly impacted by technology you know we have digital bookkeeping we have digital auditing you know in fact I think the four major accounting firms now I believe that they're all doing is auditing now they're auditing information systems in addition to auditing you know financial systems and of course we're doing that for several reasons they're doing that to look for any discrepancies and how transactions are handled but they're also doing that to ensure the security of systems they're doing that to ensure really a lot of different things so it's not just one purpose that they all do information systems for but it's not uncommon to have an accounting firm to an ISO I think that's kind of kind of funny in a way but yeah certainly you know having everything done digitally I can only imagine working for a huge huge firm talking like a fortune 500 firm as an accountant you know 50 years ago I don't think I could do it you know having all the paper transactions and the paper ledger and it would probably span you know a whole floor of a huge building a huge skyscraper it'd be something I don't think I could do but I mean you know certainly people did it and you know we did have large transactions we did have large companies back then not as large as they are today of course but still pretty large marketing you know we have digital marketing we have basically an entire medium of the internet you know we have things like how do we promote our company do we use social platforms do we use website ads do use newspaper ads you know these are decisions we didn't have to make you know 30 years ago basically we used either newspaper or something local and now you know we can also in addition to reaching a wider audience we can also do this more efficiently and we can get a lot more insight from who we reach in addition to that not only can we get more insight of data we can also of course sell our product globally at a very low cost to us that's something we could not do I really that long ago so finance and economics of course we've talked about those a good bit basically just getting a lot more information getting it a lot quicker and being able to more rapidly react to change that really supports the efficient market hypothesis and it allows us to basically react to changes real time this is something that is you know unprecedent in a lot of cases the ability to do that and its really benefited the financial markets pretty handily you know they've certainly been able to react to changes people have been able to not lose money where maybe they otherwise would have it's been very good management HR have also talked about this we have a whole chapter on this as well so I won't go too much into it but the whole concept is that with management in HR we can basically make sure that each employee is benefitting organization they're doing weather organization needs so there could be cases in which we would reassign employees from an area maybe we need to hire more employees for an area or maybe demand to shrunk and we need to look at reducing our workforce a little bit each of those are going to be benefited by is because we can a kind of bird's-eye view have an entire organization and what's happening with sales what's happening with production what's happening with you know support activities all that we can see in one place and then lastly production whatever our primary business activity is it's gonna be affected by information systems in some way and technology in some way so I do want to just kind of take a brief moment here to talk about the market capitalization of firms so on the left here I have 2019 so first quarter 2019 second quarter so on so forth and then 2020 on the right and let's face it we notice that something of course happened in 2020 pandemic unfortunately broke out and that affected a lot of companies pretty substantially affect a lot of people as well so with that in mind let's kind of take a look at some of these market caps so first quarter 2019 we have Microsoft Apple Amazon alphabet Berkshire Hathaway Facebook Alibaba $0.10 Johnson & Johnson and Visa and just I hear less I don't have only business majors and you know some people may have not taken a lot of classes yet what a market cap is is it's basically gonna be the common shares outstanding times the market price so the price first come and share basically and that gives us a valuation of what the firm is worth any this could be review for a lot of you but just kind of want to make sure that everyone's on the same page here so this is a great way to determine what investors believe a company is worth so this is a really measure that's used a lot it's not the only measure of company value it's not the only measure of course but it's certainly one that is commonly used to just kind of get that out of the way there so we see a pretty big trend here you know we look at an apple in 2020 second quarter Apple has a 1.5 trillion dollar market cap that's huge Microsoft has a 1.5 trillion dollar market cap effects we could actually round that up to one point six trillion Amazon has one point it's like they have one point four trillion and that's that's huge I mean they hit they did hit a one trillion market cap I believe in September 20 and 18 someone have to double-check me on that sometime but I'm pretty sure that amazon has hit a one trillion m
rket cap before but you know typically they have been below one trillion and most companies force a billow intro one trillion is a very large size for a firm to be alphabet is that nine point seven billion and yeah that's pretty large as well I mean we're talking you know hundreds of millions in just one billion you know and then we have trillions which is hundreds of billions I mean that's that's huge so you know we look at these though when we see a trend you know I'm not I'm not gonna you know say that it's technology firms the only firms that could be valuable well we look at what investors value most they tend to value technology firms Apple they're of course a technology firm they make and sell hardware and they also make some software that they sell but mostly they make it sell hardware Microsoft they do make and sell hardware but they primarily make and sell software and services Amazon they sell services and they also sell you know products and of course they're a huge e retailer alphabet they're the parent company at Google as well as many other companies and they primarily make himself or that primarily sell services in order to make a service but I mean you know this is certainly the trend here Facebook they sort of sell advertising and other things $0.10 that's Chinese company they're involved in a lot of technology firms in China and you know they they're not exclusive to technology though so I wouldn't call him a technology firm Alibaba is a large II retailer they're kind of similar to Amazon over here only pretty substantially different in terms of the goods that are sold berkshire hathaway of course is going to be a it's going to be a financial services firm primarily let me see I can't tell what this other company is right here it's covered up by the interface here whoops but anyway you know certainly we look at the top five companies it's pretty consistent that their IT firms that there's some exceptions but mostly we see that IT firms are heavily valued by investors and that's a good thing that means that we should focus on you know what technology is talk about IT generating firms versus IT using firms let's distinction I'm not gonna bore a with that too much right now but this is certainly a trend that we're seeing and you know we think about risk we're gonna talk about risk in another chapter ISM pretty much everything said another chapter it seems but uh yeah I mean we talk about risk and you know IT is something that can be very useful and things like a business continuity plan where maybe the government locks us all down and they say you can't leave your home unless it's an emergency well we can still work with technology in some cases so I mean that's gonna greatly benefit technology firms let's go ahead and just get that out of the way there but it's not going to be beneficial to other types of firms there's some firms that are getting greatly impacted by something like that travel you know transportation industry so it's both gonna be pretty adversely impacted by a policy that says you can't leave your house or maybe there could be a natural disaster that happens doesn't have to be related to the current situation you know unfortunately natural disaster can do something very similar where people are unable to leave maybe an earthquake happens if people can't leave so certainly having the ability to work from home is a great factor in reducing corporate risk and that's something that we're going to see and likely continue to see the impact of that okay so now I want to kind of talk about automation and how it impacts your job or you know jobs in general not necessarily your specific job so the book takes this topic and in my opinion it doesn't present it in an unbiased way it says basically what it says is that IT will take a job and I don't think it's a fair thing to say you know that it's going to you know basically lead to unemployment I don't think it's the fair thing to say and you know it's not necessary I believe that it won't or that there aren't cases of it doing so I just don't like the idea that you're going to present something like that in such a definitive manner when it's really an opinion so I have this article here believe this is from 1946 I believe it's a New York Times piece where it says look what they're doing to your job and basically what this is saying is that you know with factories and you know things becoming more and more automated and more and more using economies of scale stuff like that that you probably won't have a job you know this is talking about this gonna lead to mass unemployment and stuff 1946 and then you know I looked at this this is also another New York Times article published in 2016 I should probably find a new one but I haven't yet basically what this saying is that you know automation is going to be a long term job killer it's going to reduce the amount of jobs that are in the country and you know I don't think there's a lot of evidence for that that's my opinion is that you know there's certainly at minimum there's another side to this argument and that is that it hasn't ever happened you know there have been periods of unemployment and there have been periods of you know people maybe having to change careers but there hasn't been at least not in my opinion not by my interpretation of the information it hasn't been a massive reduction in the amount of jobs available you know there have been temporarily yes we can see here so we have the early 2000s recession this is the dot-com bust and this is also post the events of 2001 and you know we can see there was certainly a rise in unemployment there a couple percentage you know in the 2008-2009 mortgage crisis there was a very substantial rise in unemployment there we're talking going from about 5 percent which is considered to be low unemployment to you know upwards of 10% and that's considered to be extremely high unemployment and you know baseball that's unemployment as they have come back down you know until recently they were you know about 3% which is considered extremely low unemployment however that's not the entire picture either we also look at the labor force participation rate which is basically the percentage of able-bodied adults who are participating in the labor force now you know this is a way to kind of see what is happening overall to the jobs so as we see here used to be about 67% participated then we had that recessionary period we're about I would say 2% of people our 2% more became unemployed and basically in that same time period it looks like we kind of fell about half a percent in labor force participation rate and then of course we had the 2008-2009 mortgage crisis and post that this has since risen a little bit to around 64 percent as of about March of course after March you know everything kind of happened unfortunately but you know there has been a couple percentage decrease in labor force participation rate so you know there's basically two sides to this argument you can look at it in the unemployment rate and say well know people are not not working you know people are in fact still working despite automation despite all this other stuff and you can also look at the labor force participation rate and say well that's not the entire picture so you know truthfully I don't think it's as simplistic as the book presents and I'm not here to say what I personally believe it will happen with you know automation anything that's not really my job as an instructor but I just want to make sure that you kind of have the kind of have what's going on you know basically the picture here okay this looks like I got a comment here do I think it's more possible with the current pandemic that automation is possible or that you know further unemployment is possible or less participation in labor force yeah I certainly think the automation will continue to rise you know I I'd hate to say this put up in some way I think the automation in food industries you know especially fast food in particular could be very beneficial to health as a whole I you know I hate the say that you know that would possibly lead to job loss but it's also possible it wouldn't lead to job loss you know those people would instead go work in another place you know Amazon is hiring hundreds of thousands of people Walmart's hiring hundreds of thousands of people you know long-term I don't know what will happen it's an interesting discussion certainly one that I think could be you know something that could happen we are saying though increasingly a fast-food place is becoming more focused on automation and traditionally that has been you know place that hired one average to say between 100 and 150 employees at any given time to work and you know they were up in 24/7 well now they're not open 24/7 in a lot of cases the Walmart in Starkville leaves open like what like about I want to say it's like 11 p.m. they closed and they reopen it maybe 6 or 7 in the morning I'm not sure exactly but sorry possible what do you think about it do you think that it will lead to more automation you think that it'll be a pretty constant right do you think it will lead to less and that's kind of my thoughts on it so certainly yeah that's kind of what I view it could certainly lead to having less face-to-face interaction as well you know this is something that we could see fewer cashier jobs for example been to a lot of places and lately and they have the kind of plexiglass set up and I think it's very possible it's self checkout we'll see you know kind of her eyes or whatever you know maybe we'll have kind of situations to which stores can operate in a hybrid model Walmart's a great example of this where you can use their little app and you can have the Walmart associates pick out your groceries for you you know we also have services that do that think Kroger has something similar where they have course I think there's cost a little bit of money but I mean I think never starting to be some changes from it what those changes are I think it's too early to tell when long term but in the short term we're certainly seeing you know basically just a lot of our reduction and closures which are unfortunate you know I'm not I'm certainly not celebrating any of this don't get me wrong but certainly I think that some changes will probably happen I I think it's unlikely though that the labor force participation rate is gonna decrease more than two percent and the next I would probably say five years I think it's unlikely that we'll see that but something we could see and that'd be very unfortunate if we did so let's talk a little bit about salaries you know it's I'm not trying to make you change your what you're wanting to do in your career or anything like that but certainly is good to consider you know what different careers make so you know it's kind of a thing that you do you know I'm sure you're counting class this is something similar where they say accounting make great money you know some difference salaries here these are averages I pulled from looks like I pulled them from earnest so just kind of talk about these a little bit now this is Paul from cio.com some of the different salaries for different jobs with an IT that's a data analyst that's probably a little low I would say for data analyst particularly at a large firm if you're working at large City you could probably pull in quite a substantial not more than that particularly if you have a masters or and a lot of cases you need to have a PhD to do a lot of those jobs may be pretty involved certainly there gonna be some jobs like that where you wouldn't need a masters or PhD but to really do a lot of the more advanced things you know to kind of use a lot of the more advanced tests you probably that probably what they would require let's just say that did architect those might be a little on the higher end depending on what that involves did it work house engineer again those could be on the higher end you know different database analyst that's what dpi stands for I don't you know I think that those are possibly on the higher end as well but you know certainly once you get more experience in a job course your salary will rise or rise with experience see I mean just kind of keep that in mind that that's kind of how we see these taking place you'll be pretty high salaries bi analyst the AI architect developer you know things like that can be quite lucrative but it does depend on area you know certain areas cost less to live in and then the flip side is that you probably have less money it's you know kind of have economic works at the basic level you know if if everyone is working in an area and they make let's say the median salaries 150,000 that means they have a hundred fifty thousand a spent so the market is going to adjust to that they're gonna be more willing to spend money so things are gonna tend to cost more now the flip side is we have an area where the average median income rather is going to be say twenty five thousand it's gonna be a lot poorer of an area but it doesn't necessarily mean that you won't be able to purchase things you know certainly some things maybe would be priced at a national but some things to be priced at a more local level particularly things like food and shelter so that's why we look at big cities you know the rent tends to be quite a bit more than written say Starkville Mississippi or you know some other place in Mississippi or you know just any rural area typically gonna have a lot lower cost of living of course that's kind of a big thing so again you know I'm not gonna bore you with all these salaries but that's pretty much it you know today it's really just about defining what information systems are you know talking about how information systems are used by organizations and then also kind of looking forward you know looking at the societal impact you know thinking about what this could lead to in the future so certainly that's about all I had if you have any questions let me know otherwise I might get off here and get this posted on youtube thanks for attending by the way I do want to apologize to everyone again for having to change the time this is only for today next class and future classes will be at 1:00 p.m. again I just had something come up last minute that I had to attend to so any questions or other comments and I'll make sure to put the bonus points in as well I'll go ahead and stop the recording here if I can remember how there we go
