Developing a 21st-Century Organization CHAPTER 20 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

LEARNING OUTCOMES 1.List and describe the four 21st century trends that businesses are focusing on and rank them in order of business importance. 2.Explain how the integration of business and technology is shaping 21st century organizations. 20-2

DEVELOPING ORGANIZATIONS 21 ST century organizations must: –Recognize the immense power of technology –Carry out required organizational changes –Learn to operate in an entirely different way 20-3

DEVELOPING ORGANIZATIONS Industries that have changed due to technology: –Travel –Entertainment –Electronics –Financial Services –Retail –Automobiles –Education and Training 20-4

21 st CENTURY ORGANIZATIONAL TRENDS 21 st century business trends include: –Uncertainty in terms of future business scenarios and economic outlooks –Emphasis on strategic analysis for cost reduction and productivity enhancements –Focus on improved business resiliency via the applications of enhanced security 20-5

21 st CENTURY ORGANIZATIONAL TRENDS Four technology areas where organizations are focusing: 1.IT infrastructures 2.Security 3.Ebusiness 4.Integrations 20-6

INCREASED FOCUS ON IT INFRASTRUCTURE IT Infrastructure—The hardware, software, and telecommunications equipment that, when combined, provide the underlying foundation to support the organization's goals Organizations today are looking to Internet-based cross-functional systems such as CRM, SCM, and ERP to help drive their business success 20-7

INCREASED FOCUS ON SECURITY 20-8

INCREASED FOCUS ON EBUSINESS New ebusiness trends include: –Mobile Commerce—The ability to purchase goods and services through a wireless Internet-enabled device –Telematics—Blending computers and wireless telecommunications technologies with the goal of efficiently conveying information over vast networks to improve business operations –Electronic Tagging—A technique for identifying and tracking assets and individuals –Radio Frequency Identification (RFID)—Chips or smart labels that can store unique identifiers and relay this information to electronic readers 20-9

INCREASED FOCUS ON INTEGRATION 20-10

INCREASED FOCUS ON INTEGRATION Overall, core business relationships and models are changing: –Product-centricity to customer-centricity –Mass production to mass customization –The value in material things to the value of knowledge and intelligence 20-11

INCREASED FOCUS ON INTEGRATION A new series of business success factors and challenges are emerging: –Organization agility –Focus on core competencies and processes –Redefinition of the value chain –Instantaneous business response –Ability to scale resources and infrastructure across geographic boundaries 20-12

INCREASED FOCUS ON INTEGRATION The integration of business and technology has allowed organizations to increase their share of the global economy, transform the way they conduct business, and become more efficient and effective Never before have IT investments played such a critical role in business success As business strategies continue to evolve, the distinction between “the business” and “IT” will virtually disappear 20-13