1. Information Systems in Organizations 3.3 Digital Business Innovation

2. The Three Waves of Change
The Third Wave by Alvin Toffler describes three phases or “waves of changes”.
First wave
A civilization based on agriculture and handwork
Relatively primitive stage
Lasted thousands of years
Luddites opposed technology.

3. The Three Waves of Change (cont’d)
Second wave
The Industrial Revolution
Began at the end of the 18th century and lasted about 150 years
Third wave
The Information Age
Information becomes the currency
The printing press gave birth to the information age.

4. The Rise of the Information Age
Could the conventional wisdom of the day during the age of agriculture and handwork every prepare a young person to be successful during the industrial age? How would your parents and teachers tell you to prepare?
When you were trying to figure out what to study in college, who did you talk to to help you figure this out?
Copyright 2014 Pearson Education, Inc.

5. ?
How has technology been able to completely redefine the rules of business?
In your other classes (i.e. Marketing, Accounting, Finance, etc.) are you being educated in the rules from the last century or the next century?

6. What valuable skills will you bring to the table?
How important will IT skills be?

8. ? How do we calculate the value of an IT investment?
Capital expenditure?
What is the business case?
Depreciation?
Return on investment?
Increase my revenue?
NPV?
How do we calculate the value of an IT investment?
Required by regulations?
Balanced scorecard?
Discount rate?
Cash flow?
Operating expense?
Reduce my costs?

9. What is the next successful business model?

11. Hacking and Cracking
Hackers—individuals who are knowledgeable enough to gain access to computer systems without authorization.
Term first used in the 1960s at MIT
Often the motivation is curiosity, not crime
Crackers—those who break into computer systems with the intention of doing damage or committing a crime.
Hacktivists—Break into systems or deface Web sites to promote political or ideological goals

12. Threats to Information Security
Malware—short for “malicious software” such as viruses, worms, and Trojan horses.
Virus—a destructive program that disrupts the normal functioning of computer software.

13. Information Systems Security
All systems connected to a network are at risk.
Internal threats
External threats
Information systems security
Precautions to keep IS safe from unauthorized access and use
Increased need for good computer security with increased use of the Internet