1. INFORMATION TECHNOLOGY FOR MANAGERS Dr. Qing Cao ISQS 5231 – Spring 2012

2. Agenda Syllabus Introduction

4. IT vs. IS Information Technology (IT) Vs. Information Systems (IS)

5. Information Technology IT deals with the use of electronic computers (hardware) and computer software to convert, store, protect, process, transmit, and securely retrieve information.

6. Information Systems The term information system (IS) refers to the interaction between people, processes, and information technology (IT).

7. 7 Information Systems

8. 8 Management Information Systems (MIS) Field of Study

9. The Challenges of Managing in a Network Economy IT spending: USA - $1,096,112,600,000 (1.1 trillion and about 8.8% of GDP) in 2005 (source: World Bank)World Bank) IT is a source of opportunity and advantage but also uncertainty & risk (e.g., Apple vs. HP, Walmart.com vs. Amazon.com) Chasm between viewpoints Business executives: View IT with apprehension Technical executives: Business leaders lack vision What is undeniable is the rapidity of change In system architecture and interfaces In business In work and the workforce

10. The Embedding of IT IT now embedded in: Definition and execution of strategy Organization and leadership of businesses Definitions of unique value propositions Every business definition is morphing before our eyes Markets Industries Strategies Firm designs Information is now a major economic good

11. Riding the IT Rollercoaster Mid 1990s: World Wide Web demonstrated IT potential Structural and technical hurdles remained in using IT Late 1990s Capital markets caught the fever VCs eager to spend on IT, regardless of long-term path to profitability Pop Quiz – What’s the major driver for IT expansion in late 1990s? 21 st Century Speculative bubble burst Downward spiral until 2003

12. No Silver-bullet or Panacea What is the correct IT approach?

13. No Silver-bullet or Panacea It depends on a host of factors… a company's history industry competitive situation financial position quality of IT management.

14. Two IT Strategies Defensive IT (Support) How much the company relies on cost-effective, uninterrupted, secure, smoothly operating technology systems. American Airline – SABRE System Offensive IT (Strategic) How much the company relies on IT for its competitive edge through systems that provide new value-added services and products or high responsiveness to customers. Walmart – RFID Dynamism of Strategies

15. Managing Information for Globalization and Innovation Thomas Friedman’s “The World Is Flat: A Brief History of 21 st Century” (Farrar, Straus & Giroux, 2005) Al Chandler’s, “A Nation Transformed by Information: How Information Has Shaped the United States from Colonial Times to Present,” (Oxford University Press, 2000)