CHAPTER 1 The Modern Organization in the Global, Web-Based Environment

CHAPTER OUTLINE 1.1 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?

LEARNING OBJECTIVES Differentiate among data, information, and knowledge BUSINESS OPPORTUNITIES: Information systems support the provision of knowledge about customers, allowing businesses to better target sales. BUSINESS RISKS: Incomplete data or information could result in inaccurate decisions.

LEARNING OBJECTIVES (continued) Differentiate between information technology infrastructure and information technology architecture BUSINESS OPPORTUNITIES: Rapid change is enabled by having flexible information technology infrastructure that can be increased, downsized, or modified as needed. BUSINESS RISKS: Infrastructure could be outdated or unwieldy, resulting in slow response times and an inability to change.

LEARNING OBJECTIVES (continued) Describe the global business environment and the new information technology infrastructure BUSINESS OPPORTUNITIES: New technologies assist in providing faster, more efficient services. BUSINESS RISKS: Customers are lost due to poor service or non-competitive prices.

LEARNING OBJECTIVES (continued) Discuss the relationships among business pressures, organizational responses, and information systems BUSINESS OPPORTUNITIES: Standardized information formats encourage sharing and consultation, and provide a wider interaction group. BUSINESS RISKS: Lack of knowledge of the global business environment can lead to poor service or non-competitive prices.

LEARNING OBJECTIVES (continued) Examine how information systems are used by different functional areas in an organization. BUSINESS OPPORTUNITIES: Current information technology skills will facilitate better decisions and more effective work. BUSINESS RISKS: Inadequate or dated information technology skills could cause job loss.

1.1 Information Systems: Concepts and Definitions Data: elementary description of transactions that are recorded, classified, and stored but not organized to convey any specific meaning. Information: refers to data that have been organized so that they have meaning and value to the recipient. Knowledge: data and/or information that has been organized and processed to convey understanding, experience, accumulated learning, and expertise.

1.2 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

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

Digital all analog content and processes are being digitized Mobile computing, connecting, collaborating can be done anywhere Virtual 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 processes Personal Individuals can perform all these processes on their own computing devices

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

1.3 Business Pressures, Organizational Responses, and IT Support Business Pressures : 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. There are three types of business pressures: Market Pressures Technology Pressures Social/Political/Legal Pressures

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

Technology Pressures Technological Innovation and Obsolescence Information Overload

Social/Political/Legal Pressures Social Responsibility Government Regulation and Deregulation Protection Against Terrorist Attacks Ethical Issues

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

1.4 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

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.

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