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

2. LEARNING OBJECTIVES
Describe business processes and discuss business process management
Differentiate among data, information, and knowledge
Differentiate between information technology infrastructure and information technology architecture

3. LEARNING OBJECTIVES (continued)
Describe the global business environment and the new information technology infrastructure
Discuss the relationships among business pressures, organizational responses, and information systems

4. Homo Conexus This is the most connected generation in history
We practice continuous computing
We are surrounded by a personal, movable information network
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.
YouTube “Did You Know? 3.0” video (4:56)
Facebook – 3rd, Twitter, 6th

5. Information Systems/Technology
– the planning for, development, management, and use of Information Technology tools to help people perform the tasks of information processing and management.
Management Information System (MIS) Information Technology (IT)
– any computer-based tool used to support needs of an organization
Goal: Get the right information to the right people at the right time in the right amount and in the right format.

6. 1.1 Business Processes
– collection of related activities that produce a product or a service of value to the organization, its business partners, and/or its customers.
Business Process Business Process Management
– management technique that includes methods and tools to support the design, analysis, implementation, management, and optimization
of business processes.
Business process has inputs and outputs and can be measured.
Measurement types include: customer satisfaction, cost reduction, cycle/fulfillment time, quality, differentiation, productivity.
Benefits of BMP include: improved profitability & revenue, decreased costs, competitive advantage

7. Frequent Flyer Mileage Sufficient?
Receive Ticket Order
Traveler
Airline Web Site
Seats Available NO
Notify Traveler
Plan Trip
YES
Reserve Seats
Check Flights NO
Frequent Flyer Mileage Sufficient?
Use Credit Card? NO
Seats Available? NO
YES
YES
Charge Credit Card
YES
Subtract Mileage
Submit Ticket Order
Charge OK? NO
Notify Traveler
Receive e-Ticket
YES
Confirm Flight(s)
Issue e-Ticket

8. 1.2 Information Systems: Concepts and Definitions
– elementary description of things, events, activities and transactions that are recorded, classified and stored but are not organized to convey any specific meaning.
Data Item Information
– data organized so that they have meaning and value to the recipient.
Data: student grade in a class
Information: student’s name & GPA (calculated)
What to do with this data and/or information?

9. 1.2 Information Systems: Concepts and Definitions
– data and/or information organized and processed to convey understanding, experience, accumulated learning and expertise as they apply to a current problem or activity.
Knowledge
Knowledge: CSB only admits students with a GPA above 2.7

10. 1.2 Information Systems: Concepts and Definitions
Data
Information
Knowledge
What are examples of Data? Information? Knowledge? When in an airport??

11. Information Systems: Concepts and Definitions (continued)
– 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 Architecture
IT Architecture describes what’s NEEDED by an organization to:
- gather and store data
- construct, calculate, or organize data into information
- manipulate and present information as or for use as knowledge

12. IT Architecture of Online Travel Agency

13. Information Systems: Concepts and Definitions (continued)
– the physical facilities, IT components, IT services and IT management that support an entire organization.
Information Technology Infrastructure
IT Infrastructure describes what is CURRENTLY USED and available as
- IT Components
- IT Personnel
- IT Services

14. IT Components, IT Platform, IT Services, and IT 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.

15. 1.3 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

16. The Stages of Globalization (From Thomas Friedman in 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)
Globalization is integration and interdependence of economic, social, cultural, and ecological facets of life, enabled by rapid advances in information technology.
Globalization 1.0
to 1800
- World went from large to medium-size
- All about countries and muscles
- Key agents of change: brawn and horsepower
Globalization 2.0
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
– 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 globally
3.0
2.0
1.0

17. 1.4 Business Pressures, Organizational Responses, and IT Support
Market Pressures
Technology Pressures
Societal Pressures
Business Pressure 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.

18. Business Pressures, Organizational Responses, and IT Support

19. Market Pressures The Global Economy & Strong Competition
The Changing Nature of the Workforce
Powerful customers
- Emergence of the global, Web-based platform
- Increased world trade
Increased global competition
Cost of Labor
IT makes changes much easier to implement GLOBALLY
Diversification
Ability to work from home/virtually
Knowledgeable consumers
the Internet

20. Technology Pressures Technological Innovation and Obsolescence
Information Overload
New and improved technologies (This is IT!)
- laptop replaces typewriter
- iPod replaces Walkman / Radio
- others?
Amount of information on Internet doubles every year
Need to access, navigate, interpret and use VAST amounts of data, information, and knowledge
Remember goal of IS: Get the right information to the right people at the right time in the right amount and in the right format.

21. Societal Pressures Social Responsibility
Government Regulation and Deregulation
Protection Against Terrorist Attacks
Ethical Issues
- State of the physical environment (garbage island, what happens to waste? Specifically e-waste?)
Green IT
Digital Divide – gap between those with access to information and communication technology and those who don’t
Biometric screening
All pressures are increasing
IT helps provide controls and information for compliance

22. Organizational Responses
Strategic Systems
Customer Focus
Make-to-Order and mass customization
E-business and E-commerce
Strategic Systems provide advantages
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.

23. 1.5 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
What business processes can you think of that directly affect you AND use information systems and/or technology?
Potential jobs: programmers, business analysts, systems analysts, designers, e- and m- commerce, network security, multimedia.
Others you may create yourself or may not exist yet!

24. 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.