1.1 CHAPTER 1. THE INFORMATION SYSTEMS REVOLUTION TRANSFORMING BUSINESS AND MANAGEMENT

1.2 LEARNING OBJECTIVES DEFINE INFORMATION SYSTEMSDEFINE INFORMATION SYSTEMS COMPUTER LITERACY versus INFORMATION SYSTEMS LITERACYCOMPUTER LITERACY versus INFORMATION SYSTEMS LITERACY EXPLAIN IMPACT OF INFORMATION SYSTEMS ON ORGANIZATION & MANAGEMENTEXPLAIN IMPACT OF INFORMATION SYSTEMS ON ORGANIZATION & MANAGEMENT*

1.3 LEARNING OBJECTIVES COMPARE ELECTRONIC COMMERCE & ELECTRONIC BUSINESS, RELATIONSHIP TO INTERNET & DIGITAL TECHNOLOGYCOMPARE ELECTRONIC COMMERCE & ELECTRONIC BUSINESS, RELATIONSHIP TO INTERNET & DIGITAL TECHNOLOGY IDENTIFY MAJOR MANAGEMENT CHALLENGES TO BUILDING, USING INFORMATION SYSTEMSIDENTIFY MAJOR MANAGEMENT CHALLENGES TO BUILDING, USING INFORMATION SYSTEMS*

1.4 MANAGEMENT CHALLENGES WHY INFORMATION SYSTEMS?WHY INFORMATION SYSTEMS? CONTEMPORARY APPROACHES TO INFORMATION SYSTEMSCONTEMPORARY APPROACHES TO INFORMATION SYSTEMS NEW ROLE OF INFO SYSTEMS IN ORGANIZATIONSNEW ROLE OF INFO SYSTEMS IN ORGANIZATIONS LEARNING TO USE INFO SYSTEMS: NEW OPPORTUNITIES WITH TECHNOLOGYLEARNING TO USE INFO SYSTEMS: NEW OPPORTUNITIES WITH TECHNOLOGY*

1.5 BUSINESS ENVIRONMENT GLOBALIZATIONGLOBALIZATION INDUSTRIAL ECONOMIESINDUSTRIAL ECONOMIES TRANSFORMATION OF THE ENTERPRISETRANSFORMATION OF THE ENTERPRISE*

1.6 GLOBALIZATION MANAGEMENT & CONTROLMANAGEMENT & CONTROL COMPETITION IN WORLD MARKETSCOMPETITION IN WORLD MARKETS GLOBAL WORK GROUPSGLOBAL WORK GROUPS GLOBAL DELIVERY SYSTEMSGLOBAL DELIVERY SYSTEMS*

1.7 TRANSFORMATION KNOWLEDGE-BASED ECONOMIESKNOWLEDGE-BASED ECONOMIES PRODUCTIVITYPRODUCTIVITY NEW PRODUCTS & SERVICESNEW PRODUCTS & SERVICES KNOWLEDGE AS AN ASSETKNOWLEDGE AS AN ASSET TIME-BASED COMPETITIONTIME-BASED COMPETITION SHORTER PRODUCT LIFESHORTER PRODUCT LIFE TURBULENT ENVIRONMENTTURBULENT ENVIRONMENT LIMITED EMPLOYEE KNOWLEDGE BASELIMITED EMPLOYEE KNOWLEDGE BASE*

1.8 TRANSFORMATION OF ENTERPRISE FLATTENINGFLATTENING DECENTRALIZATIONDECENTRALIZATION FLEXIBILITYFLEXIBILITY LOCATION INDEPENDENCELOCATION INDEPENDENCE LOW TRANSACTION COSTSLOW TRANSACTION COSTS EMPOWERMENTEMPOWERMENT COLLABORATIVE WORKCOLLABORATIVE WORK*

1.9 KNOWLEDGE- AND INFORMATION-INTENSE PRODUCTS PRODUCTS THAT REQUIRE A GREAT DEAL OF LEARNING & KNOWLEDGE TO PRODUCEPRODUCTS THAT REQUIRE A GREAT DEAL OF LEARNING & KNOWLEDGE TO PRODUCE*

1.10 LABOR FORCE COMPOSITION Source: Laudon & Laudon 2000

1.11 SYSTEM INPUTOUTPUTPROCESS FEEDBACK

1.12 FUNCTIONS OF AN INFORMATION SYSTEM INPUTOUTPUTPROCESS FEEDBACK INFORMATION SYSTEM ENVIRONMENT Customers Suppliers Regulatory Stockholders Competitors Agencies ORGANIZATION

1.13 COMPUTER-BASED INFORMATION SYSTEMS (CBIS) FORMAL SYSTEMSFORMAL SYSTEMS FIXED DEFINITIONS OF DATA, PROCEDURESFIXED DEFINITIONS OF DATA, PROCEDURES COLLECTING, STORING, PROCESSING, DISSEMINATING, USING DATACOLLECTING, STORING, PROCESSING, DISSEMINATING, USING DATA*

1.14 INFORMATION SYSTEMS ORGANIZATIONSTECHNOLOGY MANAGEMENT INFORMATION SYSTEMS SYSTEMS

1.15 MAJOR ORGANIZATIONAL FUNCTIONS SALES & MARKETINGSALES & MARKETING MANUFACTURINGMANUFACTURING FINANCEFINANCE ACCOUNTINGACCOUNTING HUMAN RESOURCESHUMAN RESOURCES*

1.16 COMPUTER TECHNOLOGY HARDWAREHARDWARE SOFTWARESOFTWARE STORAGESTORAGE COMMUNICATIONSCOMMUNICATIONS NETWORKNETWORK*

1.17 APPROACHES TO INFO SYSTEMS SOCIOLOGY POLITICAL SCIENCE PSYCHOLOGY COMPUTERSCIENCE OPERATIONSRESEARCH MANAGEMENTSCIENCE MIS TECHNICAL APPROACHES BEHAVIORAL APPROACHES

1.18 SOCIOTECHNICAL PERSPECTIVE OPTIMIZE SYSTEM PERFORMANCE: TECHNOLOGY & ORGANIZATION MUTUALLY ADJUST TO ONE ANOTHER UNTIL FIT IS SATISFACTORY * SOURCE: Liker, et al, 1987

1.19 SYSTEM INTERDEPENDENCE BUSINESS Strategy Strategy Rules Rules Procedures Procedures ORGANIZATION INFORMATION SYSTEM HARDWARE SOFTWAREDATABASE TELE- COMMUNICATIONS INTERDEPENDENCE

s: TECHNICAL CHANGES1950s: TECHNICAL CHANGES 60s-70s: MANAGERIAL CONTROL60s-70s: MANAGERIAL CONTROL 80s-90s: INSTITUTIONAL CORE ACTIVITIES80s-90s: INSTITUTIONAL CORE ACTIVITIES GROWING IMPORTANCE * SCOPE OF INFO SYSTEMS

1.21 What is the Internet?

1.22 WHAT YOU CAN DO ON THE INTERNET (1 of 2) “The Internet is creating a new “universal” technology platform on which to build all sorts of new products, services, strategies, and Organizations. It is reshaping the way information systems are used in business and daily life. By eliminating many technical, geographic, and cost barriers obstructing the global flow of information, the Internet is accelerating the information revolution, inspiring new uses of information systems and new business models.” Laudon & Laudon pg. 17

1.23 WHAT YOU CAN DO ON THE INTERNET (2 of 2) COMMUNICATE & COLLABORATECOMMUNICATE & COLLABORATE ACCESS INFORMATIONACCESS INFORMATION DISCUSSDISCUSS OBTAIN INFORMATIONOBTAIN INFORMATION ENTERTAINENTERTAIN TRANSACT BUSINESSTRANSACT BUSINESS*

1.24 NEW OPTIONS FOR ORGANIZATIONAL DESIGN FLATTENING ORGANIZATIONSFLATTENING ORGANIZATIONS SEPARATING WORK FROM LOCATIONSEPARATING WORK FROM LOCATION REORGANIZING WORK-FLOWSREORGANIZING WORK-FLOWS INCREASING FLEXIBILITYINCREASING FLEXIBILITY REDEFINING ORGANIZATIONAL BOUNDARIESREDEFINING ORGANIZATIONAL BOUNDARIES*

1.25 THE CHANGING MANAGEMENT PROCESS ELECTRONIC COMMERCEELECTRONIC COMMERCE ELECTRONIC BUSINESSELECTRONIC BUSINESS ELECTRONIC MARKETELECTRONIC MARKET*

1.26 ELECTRONIC COMMERCE INTERNET LINKS BUYERS, SELLERSINTERNET LINKS BUYERS, SELLERS LOWERS TRANSACTION COSTSLOWERS TRANSACTION COSTS GOODS & SERVICES ADVERTISED, BOUGHT, EXCHANGED WORLDWIDEGOODS & SERVICES ADVERTISED, BOUGHT, EXCHANGED WORLDWIDE BUSINESS-TO-BUSINESS TRANSACTIONS INCREASINGBUSINESS-TO-BUSINESS TRANSACTIONS INCREASING*

1.27 ELECTRONIC BUSINESS INTRANET: BUSINESS BUILDS PRIVATE, SECURE NETWORKINTRANET: BUSINESS BUILDS PRIVATE, SECURE NETWORK , WEB DOCUMENTS, GROUP SOFTWARE EXTENDS EFFECTIVE COMMUNICATION & CONTROL , WEB DOCUMENTS, GROUP SOFTWARE EXTENDS EFFECTIVE COMMUNICATION & CONTROL VIRTUAL ORGANIZATIONVIRTUAL ORGANIZATION*

1.28 SALES & MARKETING COMPANY FINANCE COMPANY LOGISTICS COMPANY DESIGN COMPANY MANUFACTURING COMPANY VIRTUAL ORGANIZATION CORE CO MPANY CORE CO MPANY

1.29 CHALLENGE OF INFO SYSTEMS STRATEGIC: COMPETITIVE & EFFECTIVESTRATEGIC: COMPETITIVE & EFFECTIVE GLOBALIZATION: MULTINATIONAL INFOGLOBALIZATION: MULTINATIONAL INFO INFO ARCHITECTURE: SUPPORT GOALS (see Figure 1-13)INFO ARCHITECTURE: SUPPORT GOALS (see Figure 1-13) INVESTMENT: VALUE OF INFORMATIONINVESTMENT: VALUE OF INFORMATION RESPONSIBILITY & CONTROL: ETHICSRESPONSIBILITY & CONTROL: ETHICS*

1.30

1.31 Connect to the INTERNET © 2001 Laudon & Laudon, Essentials of Management Information Systems 4/e Laudon/Laudon Web site: Additional Internet Resources related to this chapter:

1.32 CHAPTER 1. THE INFORMATION SYSTEMS REVOLUTION TRANSFORMING BUSINESS AND MANAGEMENT