Presentation on theme: "The Modern Organization in the Global, Web-Based Environment"— Presentation transcript:
1The Modern Organization in the Global, Web-Based Environment CHAPTER 1The Modern Organization in the Global, Web-Based EnvironmentHow the internet supports today’s business.
2Learning ObjectivesDifferentiate among data, information, and knowledge.Distinguish between information technology infrastructure and information technology architecture.Discuss the relationships among business pressures, organizational responses, and the role of information systems.
3Chapter Outline1.1 Information Systems: Concepts and Definitions 1.2 The Global, Web-Based Platform 1.3 Business Pressures, Organizational Responses, and IT Support 1.4 Why Are Information Systems Important to You? 1.5 The Plan of the Book
4Chapter Opening Case P. 4 Google servers in a server farm Google Headquarters
5Today we are … The most connected generation in history. Practicing continuous computing.Surrounded by a personal, movable information network.Our personal information network is created by constant cooperation between:the digital devices we carry;the wired and wireless networks that we access as we move about;Web-based tools for finding information and communicating and collaborating with other people.We can pull information from the Web and push ideas back to the Web.Your personal information network is created by constant cooperation between:the digital devices you carry;the wired and wireless networks that you access as you move about;Web-based tools for finding information and communicating and collaborating with other people.You can pull information from the Web and push your ideas back to the Web.
61.1 Information Systems: Concepts and Definitions Data ItemElementary description of things, events, activities and transactions that are recorded, classified and stored but are not organized to convey any specific meaning.InformationData organized so that they have meaning and value to the recipient.KnowledgeData and/or information organized and processed to convey understanding, experience, accumulated learning and expertise as they apply to a current problem or activity.Data Item. Elementary description of things, events, activities and transactions that are recorded, classified and stored but are not organized to convey any specific meaning.Information. Data organized so that they have meaning and value to the recipient.Knowledge. Data and/or information organized and processed to convey understanding, experience, accumulated learning and expertise as they apply to a current problem or activity.
71.1 Information Systems: Concepts and Definitions Information Technology Architecture.A high-level map or plan of the information assets in an organization, which guides current operations and is a blueprint for future directions.Information Technology Infrastructure.The physical facilities, IT components, IT services and IT personnel that support an entire organization.Information Technology Architecture. A high-level map or plan of the information assets in an organization, which guides current operations and is a blueprint for future directions.Information Technology Infrastructure. The physical facilities, IT components, IT services and IT management that support an entire organization.
91.1 Information Systems: Concepts and Definitions IT componentsconsist of hardware, software, telecommunications and networks, and wireless communications.IT components are basically synonymous with the IT platform.IT servicesconsist of data management, managing security and risk, and systems development.IT personnel use IT components to produce IT services.
101.2 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.
11The InternetThe cloud in this figure represents the Internet. Various companies’ data centers are connected to the Internet. When you make a query to Google, Yahoo, or Amazon (for example), your request travels over the Internet to one of their data centers. As many servers as are needed are brought to bear answering your query. The response is then sent back to you.
12IT Components, Services, Platform, and Infrastructure IT components consist of hardware, software, telecommunications and networks, and wireless communications.IT services consist of data management, managing security and risk, and systems development.IT personnel use IT components to produce IT services.IT components are basically synonymous with the IT platform.IT infrastructure consists of IT components, IT personnel, and IT services.
13The Stages of Globalization (From Thomas Friedman’s 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)For my notes on Friedman’s Flatteners, see:Globalization 1.0* 1492 to 1800* World went from large to medium-size* All about countries and muscles* Key agents of change: brawn and horsepowerGlobalization 2.0* 1800 to 2000* World has shrunk from medium to small-size* Key agent of change: multinational companies* First half: global integration powered by falling transportation costs(steam engine and railroad)* Second half: global integration powered by falling telecommunications costs(telephone, PC, satellites, fiber-optic cable)Globalization 3.0* 2000 – now* World is now tiny (everyone is everyone else’s close neighbor)* Competitive playing field is being leveled* Key agent of change: software, in conjunction with the global fiber-optic network* Enabling people to collaborate and compete globally3.02.01.0
14Globalization 1.0 1492 to 1800 World went from large to medium-size. All about countries the amount of muscle, horsepower, steam power, etc that they could deploy.Key agents of change: brawn and horsepower.Christopher ColumbusChristopher Columbus “discovering” the New World in 1492.
15Globalization 2.0 (first half) 1800 – 2000Global integration during the first half of Globalization 2.0 was driven by falling transportation costs.steam enginerailroadsSteam engineRailroadsGlobal integration during the first half of Globalization 2.0 was driven by falling transportationcosts (for example, steam engine and the railroads).
16Globalization 2.0 (second half) Global integration during the second half of Globalization 2.0 was driven by falling communications costs.satellites,fiber optics,personal computer, andwireless smart phonesFiber opticsGlobal integration during the second half of Globalization 2.0 was driven by falling communicationscosts (e.g., satellites, fiber optics, the personal computer, and wireless smart phones).Satellites
17Globalization 3.0 2000 to the present. Driven by the convergence of ten forces (flatteners).Result: emergence of a global, web-based platform.Key agent of change:Software, in conjunction with the global internet enabling people to collaborate and compete globally.Key agent of change: software, in conjunction with the global fiber-optic network enabling people tocollaborate and compete globally3.02.01.0
18Globalization 3.0 (continued) Schematic Map of the Internet
191 - Fall of the Berlin Wall November 9, 1989Free market economies of Eastern Europe (1991) and Rise of the European Union.
202 - Netscape Goes Public August 9, 1995 Marc Andreessen (wrote Mosaic browser and Netscape browser)
213 - Workflow SoftwareEnables computer applications to interoperate or communicate and work with one another without human intervention.Standards such as Extensible Markup Language (XML) enable workflow communication.This image is an interesting juxtaposition of the old assembly line (on the right) and theintegrated circuits of work-flow software (on the left).
224 - Uploading Anyone can create and upload content to the web. Shift from static, passive approach to media to an active participatory approach.The Open Source Movement: an essential ingredient of uploading.Clicking on the Blogger, Wikipedia, or YouTube logos on this slide will take you totheir respective home pages.
23The Open Source Movement LinuxMozillaFirefoxThe Mozilla Foundation has shifted its focus to its Firefox Web browser and Thunderbird package.Thunderbird
245 - OutsourcingInvolves taking a specific function that a company was doing itself, having another company perform that same function and then integrating their work back into the original company.Outsourcing gained momentum and “took off” with Year 2000 (Y2K) problem.
256 - OffshoringOccurs when a company moves an entire operation, or certain tasks to another country.The operation and/or activities are performed the same way, but with cheaper labor, lower taxes, fewer benefits, etc.Call center in India
267 - Supply ChainingOccurs when companies, their suppliers, and their customers collaborate and share information.Requires common standards so each segment of the chain can efficiently interface/communicate.
278 - InsourcingDelegates operations or jobs within a business to another company, which specializes in those operations.Example: Dell hires FedEx to analyze Dell’s shipping process and then “take over” that process. FedEx employees work inside Dell but remain employed by Fed Ex.
289 - InformingAbility to search for information (e.g., search engines).Facilitates the formation of global communities.There are MANY other interesting search engines as we see in Chapter 5
2910 - The IT Steroids The IT Steroids amplify the other flatteners. They enable all forms of computing and collaboration to be digital, mobile, virtual, and personal.DigitalAll analog content and processes are being digitized.MobileThanks to wireless technologies, computing, connecting, collaborating can be done anywhere.VirtualThe process of shaping, manipulating, and transmitting digitized content can be done at very high speeds, so that users do not have to think about these processes.PersonalIndividuals can perform all the virtual processes on their own computing devices.Digital: all analog content and processes are being digitizedMobile: thanks to wireless technologies, computing, connecting, collaborating can be done anywhereVirtual: the process of shaping, manipulating, and transmitting digitized content can be done at very high speeds, so that users do not have to think about these processesPersonal: Individuals can perform all these processes on their own computing devices
30The IT Steroids Computing-Processing Computing-Storage Instant Messaging and File SharingWireless TechnologiesVoice over Internet ProtocolVideoconferencingComputer Graphics
31Computing - Processing TOUltramobile personal computerCharles Babbage’s Difference Engine (1822)
32Computing - Storage TO Sony Micro Vault Thumb Drive Capacity: 2 gigabytesFirst disk storage unit by IBM (1956)Capacity: 5 megabytesSize: Refrigerator
33Instant Messaging and File Sharing Instant messaging (example)File sharing (example)
34Wireless Technologies Using cell phone in motionGeostationary satelliteBluetooth phone sunglasses
36Videoconferencing An individual telepresence system A telepresence system in a conference room
37Videoconferencing and Medicine New Zealand used Polycom, a leading vendor of telepresence systems, to provide a telemedicine application for children.The telemedicine link will show a video of the New Zealand application.Clicking on the Polycom logo will take you to its homepage.
391.3 Business Pressures, Organizational Responses, and IT Support The business environment is the combination of social, legal, economic, physical, and political factors that affect business activities.Significant changes in any of these factor are likely to create business pressure on the organization.The three types of business pressures faced are:Market PressuresTechnology PressuresSocietal PressuresBusiness Pressure - The business environment is the combination of social, legal, economic, physical, and political factors that affect business activities.Significant changes in any of these factor are likely to create business pressure on the organization.The three types of business pressures faced are: market, technology, and societal pressures.
40Market Pressures The Global Economy and Strong Competition European UnionNAFTALabor CostsThe Changing Nature of the WorkforceDiversifiedTelecommutingPowerful CustomersSophisticatedKnowledgeableCustomer Relationship Management (CRM)
41Technology Pressures Information Overload Amount of information on the internet doubles approximately every year.Technological Innovation and ObsolescenceToday’s state-of-the-art products may be obsolete tomorrow. e.g., CRT monitors vs LCD monitors
42Technological Innovation and Obsolescence Obsolescence: Slide RuleInnovation: Early calculator
43Technological Innovation and Obsolescence (continued) Innovation: TelegraphObsolescence: Pony Express
44Technological Innovation and Obsolescence (continued) Innovation: iPod nanoObsolescence: old phonograph
45Technological Innovation and Obsolescence (continued) Innovation: digital cameraInnovation: “Creditcard” digital cameraObsolescence: old analog camera
46Technological Innovation and Obsolescence (continued) Horse and BuggyInnovation: Ford Model T
47Technological Innovation and Obsolescence (continued) Obsolescence: Manual typewriterYour students can think of other technologies that have been obliterated by innovations.Innovation: Notebook computer with word processing software
48Societal Pressures-The Third Category Of Business Pressures Social ResponsibilityDigital devide – gap between those who have access to IT and those who do not.Government Regulation and DeregulationSarbanes –Oxley, Health Insurance Portability and Accountability Act (HIPAA)Protection Against Terrorist AttacksDept of Homeland Security – US-VISITEthical IssuesChina Olympics and foreign press access to internetNewspapers/governments editing photographs
49Social Responsibility One Laptop per Child initiativeBridging the Digital Divide
50Social Responsibility (continued) Bridging the Digital Divide with large satellite dish in rural hamletInternet over satellite in developing nations
51Social Responsibility (continued) Bridging the Digital DivideGetting the satellite dish to the rural hamlet* Interesting juxtaposition of Agricultural Age and Information Age
52Businesses are Responding to the Pressures by Implementing IT Solutions Strategic SystemsProvide advantages that enable organizations to increase market share and/or profits, to better negotiate with suppliers, or prevent competitors from entering their markets.Customer FocusIs the difference between attracting and keeping customers by providing superb customer service to losing them to competitors.Make-to-Order customized products and mass customizationMass Customization is producing a large quantity of items, but customizing them to fit the desire of each customer.Reebok and Bodymetrics provide excellent examples of mass customization. See Reebok See Bodymetrics videoE-business and E-commerceBuying and selling products and services electronically. E-business is a broader concept than e-commerce.Strategic Systems provide advantages that enable organizations to increase market share and/or profits, to better negotiate with suppliers, or prevent competitors from entering their markets.Customer Focus is the difference between attracting and keeping customers by providing superb customer service to losing them to competitors.Make-to-Order is a strategy of producing customized products and services.Mass Customization is producing a large quantity of items, but customizing them to fit the desire of each customer.Reebok and Bodymetrics provide excellent examples of mass customization.E-business and E-commerce: Buying and selling products and services electronically.E-business is a broader concept than e-commerce.
53Business Pressures, Organizational Responses, and IT Support (Summary)
541.4 Why Are Information Systems Important to You? Information systems and information technologies are integral to your lives. For example:Register for classesPay BillsSell stuff onlineJob searchetc.Information systems offer career opportunities.Being knowledgeable about IT will improve your chances of landing a good job.Information systems are used by all functional areas in an organization. “Pervasive”
55Misinformation 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.
571.5 The Plan of This ClassThe major objective of this class is to help you understand the roles of information technologies in today’s digital organizations.The class is designed to help you think strategically about information systems.The book documents how IT supports all of the functional areas of the organization.Each chapter introduces a major topic in Information Technology
58Summary: 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 standardsIn essence, we have computing everywhere and anywhere, anytime and all the time, with access to limitless amounts of information, services, and entertainment.
59The 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.