Management Information Systems Week 1 Ip

Smart grids have plenty to offer and are very much different from the current electricity infrastructure that the United States runs on. The current grid is only a one way communication path which sends electricity from the power plant to the home or business (The smart grid, 2013). The new smart grid is a two way communicator which allows consumers to know how and where their electricity is being used vice versa for the electricity company they too know how the consumer utilizes their electricity. Having a smart grid it gives the company and clients to save energy, reduce costs, and increase reliability and transparency (Laudon & Laudon, 2012, p.36).

Having a smart grid will help the energy company gather data much quicker and easily than before. Before the smart grids the company had to send their employees to get data from the meters, make sure all is working correctly and if not get it fixed. Also, the smart grids will allow consumers to manage their electricity online which in turn will reduce energy consumption by 5 to 15% overall. With any new device on the market management issues will arise.

They are going to need to appeal to the consumers so that they feel switching to the smart grid will benefit them in the long run. Organizations will need to focus on the cost and profits that could be impacted even with government assistance. Energy companies will lose money as consumers will conserve their electricity. Technology issues will arise no matter what because technology is not perfect and will always have some sort of trouble. Updating or building up power plants to meet today’s electricity need is very costly as they will need networks and switches for power management, sensor and monitoring devices to track energy usage and distribution, communication systems to relay data and so forth.

All these are very expensive and time consuming when in the end consumers will save on energy (Laudon & Laudon, 2012).Challenges will always be present and the most obvious challenge to the development of smart grids is the cost. It is mentioned that energy companies will need to put out of pocket approximately $17 to $24 billion a year over the next two decades which of course that cost is not free for the consumers it will eventually be passed on to their clients (DiSavino, 2011).

The next obstacle would be the rebuilding the infrastructure as you can say it’s being rebuilt completely. Consumers may not like that their privacy to knowing how, when, and what is utilizing energy can play a big role. Other ways that they can utilize the smart grids would be to other utilities such as gas and water usage. The basic utilities that are needed in each household can and will eventually be on a smart grid by performing the same duties as the energy companies. Personally I would not like to be part of the smart grid community. Why would I want for any company to know how and when I use my electricity and on what appliance?

Those in charge want to know what your household entails and how to use it but they (those in charge) do not like to be told what to do so why should they be able to regulate or tell you how to use your energy when you’re paying for what is being used. I think it would be way too much and invading of privacy when using the smart grid and by the looks of it the world is evolving and so are the companies using up to date technology so that they can see how you spend your utilities and other items as time passes.

Article 2: Procter & GambleP&G’s business strategy is to maintain popularity of its current brands, develop new products under its existing brands, and innovate and create new brands from scratch (Laudon & Laudon, 2012, p.75). It is crucial that the company facilitate collaboration between researchers, marketers, and managers so that they can come up with a new product. The company approximately spends twice industry average of 1.6% on revenue innovation.

The team consists of 8,000 scientists that are over 30 sites globally. While it is very tough and competitive to come up with a new product P&G utilizes information systems to be able to communicate and collaborate among different locations worldwide. P&G transformed the way they communicate and how their IT department is handled by introducing new technology to be able to communicate across departments, countries and continents.

First installed was a Microsoft product that allows voice transmission, data transmission, instant messaging, e-mails, electronic conferencing, Microsoft live communications server functionality, web conferencing with live meeting, and content management with SharePoint. Cisco TelePresence was a great investment as they are saving $4 for every $1 invested because it is a system that allows to hold high-definition meetings from any P&G allowing savings in travel, more efficient flow of ideas and quicker decision making (Laudon & Laudon, 2012, p.76). The new information systems in place were very slow for employees to catch on to because employees did not use them.

These tools grow in usefulness when more and more employees contribute their information on these tools for all others to see. Being able to work together on the same software allows others to contribute and finally come up with new ideas and/or products. P&G was very outdated and their old ways of distributing information was to write them out in Microsoft applications, print them out and glue them page by page into notebooks (Laudon & Laudon, 2012).

Another way they would pass information was print out their Word documents or into PowerPoint slides then e-mail it to fellow employees. After implementing new processes such as SharePoint it is much easier to share information just a click away. Employees can upload their information to this section and each and every employee in all P&G’s companies can view the document which makes it a much easier and quicker process of passing information.

Telepresence is useful as it was mentioned before it saves time and money. It makes it possible to hold a high-definition meeting over long distances not just across the country but continents. Another way that P&G could use collaboration to bring innovation would be to have a database just for ideas. Be able to get ideas and thoughts from their users and outsiders would greatly help with innovation.

Article 3: Credit Card CompaniesThe two competitive strategies that are noticeable by credit card companies are that they implement customer and supplier intimacy and product differentiation. Customer and supplier intimacy because credit card companies profile their customers purchases and view what kind of client they are. They view if they are good customers and if they can pay their debts or not. If they loyal with good paying history then the credit card company can build a good relationship with them and offer incentives. Product differentiation because they target specific individuals with specific charges to provide them with a specific promotion that will interest them.

For example, in the article it stays that if you purchase airline tickets then the chances of receiving promotions for airlines or miles is quite high (Laudon & Laudon, 2012, p.100). Credit card companies benefits to analysis their customer’s purchases because they can distinguish their spending patterns, payment history, potential fraud, and over spending as well as if they can repay their debts.

Credit card companies do this so they will not lose out on a large sum of money as they have in the past. Now one may say credit card companies are violating privacy act and according to the article some credit card companies did violate the card holders’ privacy by modeling their behavior to identify customers with risky purchasing behaviors and lowering their credit limits.

This company was sued and settled. The Privacy Act of 1974 has been the most important of these laws, regulating the federal government’s collection, use, and disclosure of information (Laudon & Laudon, 2012, p. 132). In my opinion I think it is very unethical that they do screen and categorize their customers but from the business view they are trying to have a low risk by lending to those customers who will not pay back their debt.

Article 4: Cellular Phone TextingIn our 21st century the use of cell phones is like brushing your teeth in the morning. It is habits to always have your cell phone at all times and talk. Most people text like crazy and these are usually those between the ages of 18 to 29 years old. They not only text but drive while texting which is very dangerous as we have all seen. The one moral of information systems identified in this article is Quality of Life: equity, access, and boundaries. The cell phone usage was at one point seen as a positive information technology but now it is causing much more harm than good.

There are three issues that are raised in this article of texting while driving. The ethical issue is should those around the person texting and driving suffer their consequences because it is always the innocent that have to suffer if they survive such accident. The social issue is to all agree that something needs to be done in regards to reducing the danger on the streets by technology devices.

As the car makers see that by banning the talking while driving and texting while driving they are as we speak coming up with new ideas for drivers to do those things but hands free, i.e. Bluetooth hands free system. The political issue is for government get together and come up with an idea or just bans the texting while driving. Trying to put a stop on technology one person cannot and trying to put a stop on people texting while driving knowing the consequences is just not possible.

The ethical principals described in the article which are crucial to making a decision is that technology is not a want but a need for many people. The need to stay up to date with what is going on, what is the latest on the trend, and so on is very attractive especially to young people which makes them think that texting while driving is ok and nothing will happen to them. Seeing the rise in accidents and just by those texting and driving is ridiculous but banning will definitely not help if the government does not step in with the automakers as they are always trying to see how to cut the curb by allowing drivers to do things hands free. It’s not the hands that is causing the accidents if not it’s the distraction itself.

ReferencesDiSavino, Scott. (24, May, 2011). A planned modernization of the U.S. national power grid will cost up to $476 billion over the next 20 years but will provide up to $2 trillion in customer benefits over that time, according to industry experts. Retrieved from

Laudon, K., & Laudon, J. P. (2012). Management information systems: Managing the digital firm . (12 ed.). Upper Saddle River, NJ: Pearson Prentice Hall. Retrieved from

The Smart Grid. (2013) U.S.A. Gov Retrieved from