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CHAPTER 1 The Modern Organization Functioning in a Global Environment.

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1 CHAPTER 1 The Modern Organization Functioning in a Global Environment

2 CHAPTER OUTLINE 1.1 Business Processes and Business Process Management 1.2 Information Systems: Concepts and Definitions 1.3 The Global, Web-Based Platform 1.4 Business Pressures, Organizational Responses, and IT Support 1.5 Why Are Information Systems Important to You? 1.6 The Plan of the Book

3 LEARNING OBJECTIVES Describe business processes and discuss business process management Differentiate among data, information, and knowledge Differentiate between information technology infrastructure and information technology architecture

4 LEARNING OBJECTIVES (continued) Describe the global business environment and the new information technology infrastructure Discuss the relationships among business pressures, organizational responses, and information systems

5 Chapter Opening Case Moai on Rapa Nui

6 Homo Conexus You are the most connected generation in history You practice continuous computing You are surrounded by a personal, movable information network

7 Personal movable information network And…..laptop in briefcase!

8 1.1 Business Processes Business Process Business Process Management

9 Example of Business Process (Figure 1.1) The next slide shows an example of a business process: Ordering an E-ticket from an airline Web site

10 Notify Traveler Receive Ticket Order Reserve Seats Charge Credit Card Confirm Flight(s) Issue e-Ticket Plan Trip Check Flights Submit Ticket Order Receive e-Ticket Seats Available Use Credit Card? Charge OK? Seats Available ? Notify Traveler Frequent Flyer Mileage Sufficient? Subtract Mileage NO YES NO YES NO YES NO YES Traveler Airline Web Site YES NO

11 1.2 Information Systems: Concepts and Definitions Data Item Information Knowledge

12 Data Information Knowledge Wisdom Next?

13 Information Systems: Concepts and Definitions (continued) Information Technology Architecture Information Technology Infrastructure

14 IT Architecture of Online Travel Agency

15 IT Components, IT Platform, IT Services, and IT Infrastructure

16 1.3 The Global, Web-Based Platform Best represented by the Internet and the World Wide Web Enables us to connect, compute, communicate, collaborate, and compete everywhere and anytime Operates without regard to geography, time, distance, and language

17 The Stages of Globalization (From Thomas Friedman in The World is Flat) Globalization 1.0 (from 1492 to 1800) Globalization 2.0 (from 1800 to 2000) Globalization 3.0 (from 2000 to the present)

18 Globalization 1.0 Christopher Columbus

19 Globalization 2.0 (first half) Steam engine Railroads

20 Globalization 2.0 (second half) OpenMoko open source smart phone Satellites Netbook Fiber optics

21 Globalization

22 Globalization 3.0 (continued) Schematic Map of the Internet

23 Thomas Friedman’s Ten Flatteners Fall of the Berlin Wall Netscape goes public Development of work-flow software Uploading Outsourcing Offshoring Supply Chaining Insourcing Informing The Steroids

24 Fall of the Berlin Wall

25 Rise of the European Union (a consequence of the Fall of the Berlin Wall)

26 Netscape Goes Public Marc Andreessen (wrote Mosaic browser and Netscape browser)

27 Workflow Software

28 Uploading

29 The Open Source Movement (essential ingredient of uploading) Linux Apache Web server

30 The Open Source Movement (continued) Mozilla Firefox Thunderbird

31 The SeaMonkey Project Formerly the Mozilla Application Suite

32 Outsourcing Outsourcing gained momentum and “took off” with Year 2000 (Y2K) problem

33 Offshoring Call center in India

34 Supply Chaining

35 Insourcing

36 Informing It’s not just There are MANY other interesting search engines as we see in Chapter 5

37 The Steroids Digital Mobile Virtual Personal

38 First Steroid: Computing (processing) TO Charles Babbage’s Difference Engine (1822) Ultramobile personal computer

39 Computing (continued – storage) TO First disk storage unit by IBM (1956) Capacity: 5 megabytes Size: Refrigerator Sony Micro Vault Thumb Drive Capacity: 2 gigabytes

40 Second Steroid: Instant Messaging and File Sharing Instant messaging (example) File sharing (example)

41 Third Steroid: Voice over Internet Protocol

42 Fourth Steroid: Videoconferencing A telepresence system in a conference room

43 Videoconferencing (continued) An individual telepresence system

44 Videoconferencing and Medicine New Zealand used Polycom, a leading vendor of telepresence systems, to provide a telemedicine application for children. telemedicine application

45 Fifth Steroid: Computer Graphics

46 Sixth Steroid: Wireless Technologies Using cell phone in motion Geostationary satellite Bluetooth phone sunglasses

47 The Great Convergence We are in a convergence of three powerful, technological forces: (1) Cheap and ubiquitous computing devices (2) Low-cost, high bandwidth (3) Open standards

48 The Great Convergence (continued) In essence, we have computing everywhere and anywhere, anytime and all the time, with access to limitless amounts of information, services, and entertainment.

49 The Great Convergence (continued) We have the creation of a global, Web-enabled playing field that allows for multiple forms of collaboration – the sharing of knowledge and work – in real time, without regard to geography, distance, or, in the near future, even language. The field now includes some 3 billion new people, formerly digitally disenfranchised.

50 And the result of all this? See the Power of TechnologyPower of Technology

51 1.4 Business Pressures, Organizational Responses, and IT Support Business Pressures Market Pressures Technology Pressures Societal Pressures

52 Business Pressures, Organizational Responses, and IT Support

53 Market Pressures The Global Economy and Strong Competition The Changing Nature of the Workforce Powerful Customers

54 Technology Pressures Technological Innovation and Obsolescence Information Overload

55 Technological Innovation and Obsolescence Innovation: Early calculator Obsolescence: Slide Rule

56 Technological Innovation and Obsolescence (continued) Innovation: Telegraph Obsolescence: Pony Express

57 Technological Innovation and Obsolescence (continued) Obsolescence: old phonographInnovation: iPod nano

58 Technological Innovation and Obsolescence (continued) Innovation: digital camera Innovation: “Credit card” digital camera Obsolescence: old analog camera

59 Technological Innovation and Obsolescence (continued) Innovation: Ford Model T Obsolescence: Horse and Buggy

60 Technological Innovation and Obsolescence (continued) Innovation: Notebook computer with word processing software Obsolescence: Manual typewriter

61 Information Overload

62 Societal Pressures Social Responsibility Government Regulation and Deregulation Protection Against Terrorist Attacks Ethical Issues

63 Green IT See CBS video on disposal of e-wastevideo

64 Social Responsibility One Laptop per Child initiative

65 Social Responsibility (continued) Internet over satellite in developing nations

66 Social Responsibility (continued) Bridging the Digital Divide

67 Social Responsibility (continued) Youth Computer Club in Cuba

68 Social Responsibility (continued) Cuban Youth Computer Club mobile unit

69 Microlenders (IT’s About Business 1.2)

70 Organizational Responses Strategic Systems Customer Focus Make-to-Order and mass customization See ReebokReebok See Bodymetrics videovideo E-business and E-commerce

71 1.5 Why Are Information Systems Important to You? Information systems and information technologies are integral to your lives Information systems offer career opportunities Information systems are used by all functional areas in an organization

72 Build Your Own Multinational (IT’s About Business 1.4)

73 Misinformation about Information Systems Career Opportunities Myth #1: There are no computing jobs. Myth #2: There will be no IT jobs when I graduate. Myth #3: All IT-related jobs are moving offshore. Myth #4: IT salaries are lower due to cheap overseas labor.

74 1.6 The Plan of This Book The major objective of this book is to help you understand the roles of information technologies in today’s digital organizations. The book is designed to help you think strategically about information systems The book demonstrates how IT supports all of the functional areas of the organization Each chapter introduces a major topic in Information Technology

75 Chapter Closing Case The Blur XC Carbon

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