1. Information Systems in Business:
Organizations, Management and Networked Enterprise
Term: 2009/2010 Week 2 ITU Management Faculty Management Information Systems N. YILDIRIM

2. ITU Management Faculty – MIS
Index – Information Systems in Business: Organizations, Management and the Networked Enterprise (1)
INTRODUCTION TO INFORMATION SYSTEMS
Terminology for Information
Data
Valuable Information
Information System
Manegement Information Systems
Role of Information Systems in Change
MANAGEMENT INFORMATION SYSTEMS
I) Information Systems in (Global) Business Today
Dimensions of and Influences on information systems
Content of Information Systems
Interrelations between BIS and Organisation
How Businesses Use Information Systems
Digital Economy, Digital Business and Business Models
Strategic business objectives of Information systems
Information Systems in Organizations and Strategy Making
IS Classifications by Functions and Organizational Structures of the Enterprise
Terminology for Information Systems
Information Systems in Social Concept
Contemporary Approaches
Information Society
Trends
ITU Management Faculty – MIS

3. ITU Management Faculty – MIS
Working with Systems
Systems development
The activity of creating or modifying an existing business system
Systems investigation and analysis
Defines the problems and opportunities of an existing system
Systems design
Determine how a new system will work to meet business needs
Systems implementation
Creating and acquiring system components defined in the design
Systems maintenance and review
Checks and modifies the system so that it continues to meet changing business needs
ITU Management Faculty – MIS

4. System Development Loop
Systems
development
DEFINING THE PROBLEM : Understanding the current system or need for the system – Requirements List, “Contract”, What is the Gap?
Systems
analysis
Corrective Actions
Preventive Actions
Revisions
Modifications
Systems
design
FINDING THE SOLUTION : Designing/Defining the “needed/required” system– Specifications, “How it should be?”
Systems
implementation
IMPLEMENTING THE SOLUTION : Building, Project, Hands-on work, “Closing the Gap”
Documentation
Training
Structural Change
(+Revision)
PERFORMANCE EVALUATION : Control, Check, “Measuring the Gap”
Systems
Review And Audit
Systems
maintenance
and improvement
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5. System Development Project
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6. ITU Management Faculty – MIS
Terminology
Data
Streams of raw facts
Distinct pieces of information, usually formatted in a special way
Elementary description of things, events, activities, and transactions that are recorded, classified, and stored, but not organized to convey any specific meeting
Information
Data that has been, processed, organized and shaped so that they have meaning, use and value to the recipient
A collection of facts organized in such a way that they have additional value beyond the value of the facts themselves
Knowledge
Information that has been organized and processed to convey understanding, experience and expertise as they apply to a current problem or activity
An awareness and understanding of a set of information and how that information can be made useful to support a specific task
concepts, experience, and insight that provide a framework for creating, evaluating, and using information.
Knowledge base
The collection of data, rules, procedures, and relationships that must be followed to achieve value or the proper outcome
Wisdom
the collective and individual experience of applying knowledge to the solution of problems.
ITU Management Faculty – MIS

7. System Development Project
PROBLEM
Measurement
Data
Processing
Information
Knowledge
Analysis
Decision
Action
First Outcomes
Follow up
ITU Management Faculty – MIS

8. System Development Project
Population
Census of Population
Each citizen
Computing
Population
Calculation of Population Growth
Comparing with objectives
High Population Growth
Pop.Planning
Public Training
Minor Decrease in Pop.
Population Records
Nr. Of new TC Ids
ITU Management Faculty – MIS

9. ITU Management Faculty – MIS
Terminology
Process
A set of logically related tasks performed to achieve a defined outcome
(n) An executing program. The term is used loosely as a synonym of task.
(v) To perform some useful operations on data.
ITU Management Faculty – MIS

10. Information Technology
Definition:
the hardware and software a business uses to achieve its objectives.
any machine technology that is controlled by or uses information for operation
Example: a programmable industrial robot receiving instructions from a computer-based database
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11. Information Systems Components: Data
Hardware
Telecommunications
People
Data
Software
The raw inputs for entry into information systems
Organized, processed and stored by an IS to support user information needs
Provides basis for qualitative/quantitative analysis
ITU Management Faculty – MIS

12. “Data” as an Information System Component
(1) Distinct pieces of information, usually formatted in a special way. All software is divided into two general categories: data and programs. Programs are collections of instructions for manipulating data.
Data can exist in a variety of forms -- as numbers or text on pieces of paper, as bits and bytes stored in electronic memory, or as facts stored in a person's mind.
Data is the plural of datum, a single piece of information. In practice, however, people use data as both the singular and plural form of the word.
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13. “Data” as an Information System Component
(2) The term data is often used to distinguish binary machine-readable information from textual human-readable information.
Some applications make a distinction between data files (files that contain binary data) and text files (files that contain ASCII data).
(3) In database management systems, data files are the files that store the database information, whereas other files, such as index files and data dictionaries, store administrative information, known as metadata.
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14. ITU Management Faculty – MIS
Types of Data
Data
Represented by
Alphanumeric data
Numbers, letters, and other characters
Image data
Graphic images or pictures
Audio data
Sound, noise, tones
Video data
Moving images or pictures
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15. ITU Management Faculty – MIS
Data  Information
Data
Transformation
Information
Processed Shaped meaningful data
Raw Facts
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16. Characteristics of Valuable Information
Accurate
Complete
Economical
Flexible
Reliable
Relevant
Simple
Timely
Verifiable
Accessible
Secure
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17. Information System – Definition and Purpose
An information system consists of components that support decision making and control, and help with analysis, visualization, and product creation.
An information system (IS) collects, processes, stores, analyzes, and disseminates information for a specific purpose “Application”.
Or Collects data, processes it into information then converts information into knowledge for a specific purpose.
A set of interrelated elements or components that collect (input), manipulate (process), and disseminate (output) data and information and provide a feedback mechanism to meet an objective.
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18. ITU Management Faculty – MIS
Information Systems
Procedures
- A combination of technical components
- Built and used by people to collect, create, and distribute useful data
- Used typically in organizational settings but are evolving for personal use
ITU Management Faculty – MIS

19. What is an Information System?
An information system (IS) collects, processes, stores, analyzes, and disseminates information for a specific purpose.
Like any other system, an information system includes inputs (data, instructions) and outputs (reports, calculations). It processes the inputs by using Information technology and produces outputs that are sent to users or to other systems via electronic networks and a feedback mechanism that controls the operation.
Feedback
Input
Processing
Output
Model of an information system
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20. Information System Is A System
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21. Input, Processing, Output,
The activity of gathering and capturing data
Whatever goes into the computer
Processing
Converting or transforming data into useful outputs
Output
Useful information, usually in the form of documents and/or reports
Anything that comes out of a computer
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22. ITU Management Faculty – MIS
Input
(n) Whatever goes into the computer. Input can take a variety of forms, from commands you enter on a keyboard to data from another computer or device. A device that feeds data into a computer, such as a keyboard or mouse, is called an input device.
(v) The act of entering data into a computer
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23. ITU Management Faculty – MIS
Output
(n) Anything that comes out of a computer. Output can be meaningful information or gibberish, and it can appear in a variety of forms -- as binary numbers, as characters, as pictures, and as printed pages. Output devices include display screens, loudspeakers, and printers.
(v) To give out. For example, display screens output images, printers output print, and loudspeakers output sounds.
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24. ITU Management Faculty – MIS
Feedback
Feedback
Output that is used to make changes to input or processing activities
Feedforward
A proactive approach to feedback
Use for estimating future sales or inventory needs
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25. ITU Management Faculty – MIS
Data  Information
Data
Transformation
Information
Information
System
Processed Shaped meaningful data
Raw Facts
331 Coca Cola 1lt 1,45
521 Lipton Ice Tea 1lt 1,20
332 Rodeo Bar 40gr 0,40
185 Vernel 3lt 5,25
Sales Region: Atasehir
Store : BIM
Item No Description Units Sold
Coca Cola 1lt
Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of Coke or the total sales revenue from Coke for a specific store or sales territory.
ITU Management Faculty – MIS

26. Management Information Systems
MIS is an organized collection of ;
People,
Processes,
Hardware - Devices
Software,
Databases,
That are used to provide “information” to decision makers in all levels.
The vast majority of information systems are developed for and used by people in functional areas (e.g., manufacturing, human resources, accounting, finance and marketing).
To develop information systems that address the needs of the organization, MIS professionals must possess a solid mix of business and technical knowledge. They must understand;
organizational structures,
objectives,
operations (including processes and the flows of data between processes)
and the financial implications related to these factors.
* MIS managers and professionals must stay up-to-date with evolving information technologies and have a solid foundation of technical skills to select appropriate technologies and to implement computer-based information systems.
ITU Management Faculty – MIS

27. Information Systems: Turn Data into Information
Suppliers
ENVIRONMENT
Customers
ORGANIZATION
Data
Information
FEEDBACK
Stockholders
Competitors
Raw material
Unformatted information
Generally has no context
Classify
Arrange
Calculate
Processed material
Formatted information
Data given context
ITU Management Faculty – MIS

28. Dimensions of information systems
Organizations
– The key elements of an organization are its:
People
Structure
Business processes
Politics
Culture
􀂃 Management
􀂃 Technology
It isn’t just a technology: A Business perspective on information systems
Complementary assets: Organizational capital and the right business
ITU Management Faculty – MIS

29. Computer Based Information System
Hardware
Software
People
Data
Application
Hardware
Software
Data/Bases
Network/Telecom
Procedures
People
More than hardware and software
Together they are configured to collect, manipulate, store, and process data into information
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30. Influences on Information System
IS on the core – Building the Links
Using information systems effectively requires an understanding of the organization, management, and information technology shaping the systems.
An information system creates VALUE for the firm as an organizational and management solution to challenges posed by the environment.
ITU Management Faculty – MIS

31. Influences on Information System
IS on the core – Building the Links
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32. Content of Information System
Widening Scope and Evolution of Information Systems
There is a growing interdependence between a firm’s information systems and its business capabilities.
Changes in strategy, rules, and business processes increasingly require changes in hardware, software, databases, and telecommunications. Often, what the organization would like to do depends on what its systems will permit it to do.
ITU Management Faculty – MIS

33. Content of Information Systems
A Business Perspective on Information Systems – The business Information Value Chain
Supply Chain
Management
Enterprise
Customer
Knowledge
Business Processes
Management Activities
Information Processing Activities
Dissemination
Transformation
Into Business
Systems
Data
Collection
and Storage
Planning
Coordinating
Controlling
Modelling and
Decision Making
Business Value
Firm
Profitability
And
Strategic
Position
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34. Content of Information Systems – Extended Enterprise
As IT continue to deploy multiple complex, mobile and distributed systems, the processing and managing of information in enterprises becomes costly and complicated.
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35. Business Information Systems
The interactive relationships between the information systems and organizations, both technically and socially, and the business opportunities and challenges brought about by the BIS.
This describes information systems used to support the functional areas of business.
“ Since the advent of the mainframe in the 1950s, companies have dreamed of “using computers to manage their businesses”.
But early efforts came up short, with technology that was too costly or too clunky.
Now, thanks to the Net and dashboards, those dreams are starting to come true. Forrester Research Inc. estimates that 40% of the 2,000 largest companies use the technology.”
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36. Interrelations between BIS and Organisation
Impact of Information Systems on Organizations
Economic impacts
Organizational and behavioral impacts
IT flattens organizations
Postindustrial organizations
Understanding organizational resistance to change
The Internet and organizations
Implications for the design and understanding of information systems
Mediating Factors
Environment
Culture
Structure
Business Processes
Politics
MANAGEMENT DECISIONS
This complex two-way relationship is mediated by many factors.
ITU Management Faculty – MIS

37. Interrelations between BIS and Organisation
BUSINESS
Strategy
Rules
Procedures
ORGANIZATION
INFORMATION SYSTEM
HARDWARE
SOFTWARE
DATABASE
TELE-COMMUNICATIONS
INTERDEPENDENCE
ITU Management Faculty – MIS

38. Digital Economy – “New” Economy
E-Business: The use of electronic technologies to transact business.
Collaboration: People and Organizations interact, communicate, collaborate and search for information
Information Exchange: Storing, processing and transmission of information.
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39. ITU Management Faculty – MIS
Digital Business
Telecommunications
Networks
Field Sales
Internet
In-office
Consumer
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40. The Old Economy – Taking Photo’s
Buy film in a store
Load your camera
Take pictures
Take roll of film to store for processing
Pickup the film when ready
Select specific photos for enlargement
Mail to family and friends
ITU Management Faculty – MIS

41. The New Economy – Taking Photo’s
1st Generation Digital Photography
Old economy except 6 and 7 were replaced by using a scanner and ing
2nd Generation Digital Photography
Use a Digital Camera, no film, no processing.
3rd Generation Digital Photography
Your Digital Camera is now your mobile phone, in your binoculars or a palmtop computer.
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42. ITU Management Faculty – MIS
Business Models
A business model is a method of doing business by which a company can generate revenue to sustain itself. The model spells out how the company adds value to create a product or service. (Value Chain)
Nokia makes and sells cell phones
A TV station provides free broadcasting. Its survival depends on a complex model involving advertisers and content providers.
Internet portals, such as Yahoo, also use a complex business model.
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43. Digital Age Business Models
Name-Your-Own Price
Reverse Auctions
Affiliate Marketing
E-Marketplaces and Exchanges
Electronic aggregation (buying groups)
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44. Drivers Forcing Changes In Business Models
Business Pressures
Environmental, organizational, and technological factors are creating a highly competitive business environment these factors or forces can change quickly, sometimes in an unpredictable manner.
Therefore, companies need to react frequently and quickly to both the threats and the opportunities resulting from this new business environment. A response can be a reaction to a pressure already in existence, an initiative intended to defend an organization against future pressures, or an activity that exploits an opportunity created by changing conditions.
Business Critical Response Activities
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45. Business Pressures on an Organization that force change.
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46. IT – enabled Organizational Responses to Business Pressures
Strategic Management & Systems
Continuous Improvement – Operational Efficiency
Restructuring business processes
Manufacturer to order, Mass-Customization
Customer Focus Strategy
Electronic business
Business Alliances
ITU Management Faculty – MIS

47. Strategic business objectives of information systems
Operational excellence: Achieve operational excellence through higher levels of efficiency and productivity
New products, services, and business models: Create new products, services, and business models
Customer and supplier intimacy: Raise revenue and profits while lowering costs by increasing customer and supplier intimacy
Improved decision making: Improve decision making for managers and employees
Competitive advantage: Increase competitive advantages
Survival: Insure survival caused by business environment changes
ITU Management Faculty – MIS

48. Strategic business objectives of information systems
Operational excellence:
Achieve operational excellence through higher levels of efficiency and productivity
Improved efficiency results in higher profitability
Information systems and technologies help to improve higher levels of efficiency and productivity
Case Study: Wal-Mart
the champion of combining information systems and best business practices to achieve operational efficiency—and $285 billion in sales in 2005
the most efficient store in the world as a result of digital links between its suppliers and stores
ITU Management Faculty – MIS

49. Strategic business objectives of information systems
Operational excellence: Case Study: Wal-Mart
It is all-purpose chain store all around America. They sell many products such as: electronics, movies, music, books, toys, jewelry, sporting goods, home appliances, garden and patio accessories, video games, apparel, gifts, pharmacy, and home craft/furniture.
uses on time shipments.  They don’t keep high inventory in their back rooms, saving on storage.  When inventory in the store starts running out, the system notifies them to order more stock.  Another business process that they use is sales. 
They save money with their inventory, faster customer service, using self check, and eliminating baggers saves on labor cost. Technology also helps the cashiering with better computer systems there will be fewer errors.
The Information Systems Division (ISD) supports the world’s largest non-governmental database
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50. Strategic business objectives of information systems
New products, services, and business models:
Create new products, services, and business models
Information systems and technologies enable firms to create new products, services, and business models
A business model includes how a company produces, delivers, and sells its products and services
Case Studies:
The music industry has seen drastic changes in business models in recent years
Apple has been very successful at introducing new products and adopting a new business model
ITU Management Faculty – MIS

51. Strategic business objectives of information systems
New products, services, and business models: Case Study - Apple:
Apple has been very successful at introducing new products and adopting a new business model : Strong presence of networks. Launched its online store on 2003.
Apple created virtual supply chains that span several continents and numerous countries with almost instantly replenishable and inexhaustable inventory with very little scaling costs. It has further integrated the processes so that there is a seamless transaction between the end user and the provider (Apple) of the content, by Apple providing the hardware to use the content as well as the content itself.
Apple has managed to establish a network with all the major industry players to ensure a smoothly functioning supply chain for its digital content.
ITU Management Faculty – MIS

52. Strategic business objectives of information systems
Customer and supplier intimacy:
Raise revenue and profits while lowering costs by increasing customer and supplier intimacy
Customers who are served well become repeat customers who purchase more
Close relationships with suppliers result in lower costs
Case Studies:
The Mandarin Oriental in Manhattan uses information systems and technologies to foster an intimate relationship with its customers including keeping track of their preferences
JCPenney uses information systems to enhance its relationship with its supplier in Hong Kong
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53. Strategic business objectives of information systems
Customer and supplier intimacy- Case Study: The Mandarin Oriental in Manhattan
deployed Hotel Service Optimization System (HotSOS") to automate workflow and communications, wirelessly connect service staff to each other, guests, groups and meeting planners for unmatched personalized, prompt service. HotSOS is helping the hotel keep everyone "in the loop" in real time so service levels consistently can exceed the expectations of guests.
“ Before HotSOS, when our occupancies were high, say 90-percent-plus, it would take us more than six minutes to respond to a guest request and deliver on their needs. With HotSOS, a bellman or front desk staff, can instantly easily submit a service request to a department and all related managers based on customized business rules, and within minutes we have the guest request and notify all in the loop. Number of requests taking more than six minutes to fulfill has dropped 75%. This means more-loyal customers, more of their precious repeat business and referrals."
Reading :
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54. Strategic business objectives of information systems
Improved decision making:
Improve decision making for managers and employees
A company’s bottom line can be hurt by managers being swamped with data that are neither timely nor helpful, forcing them to use guesswork
Real-time data have improved the ability of managers to make decisions
Case Studies:
Verizon uses a Web-based digital dashboard to update managers with real-time data on customer complaints, network performance, and line outages
ITU Management Faculty – MIS

55. Strategic business objectives of information systems
Improved decision making: Case Study- Verizon
one of the world’s leading providers of communications services. Verizon’s domestic wireline telecommunications business provides local telephone services, including broadband, in 28 states and nationwide long-distance and other communications products and services. Verizon Wireless, provides wireless voice and data products and services across USA. Information Services operates directory publishing and electronic commerce services.
Uses a digital dashboard corporate intranet that gives employees up-to-the-minute data on company performance. It also offers a Web-based service allowing customers to decide which calls are routed to specific phones.
Reading:
"The dashboard puts me and more and more of our
executives in real-time touch with the business. The
more eyes that see the results we're obtaining every day,
the higher the quality of the decisions we can make." Ivan Seidenberg _ Verizon CEO
ITU Management Faculty – MIS

56. Strategic business objectives of information systems
Competitive advantage:
Increase competitive advantages
Achieving the previously mentioned business objectives often leads to competitive advantage
Advantages over competitors include charging less for superior products, better performance, and better response to suppliers and customers
Case Studies:
Dell Computer is one of the best examples of establishing competitive advantage as the company has continued to be profitable during a time when PC prices have been falling steadily
ITU Management Faculty – MIS

57. Strategic business objectives of information systems
Survival:
Insure survival caused by business environment changes
Businesses may need to invest in information systems out of necessity
Necessity arises from keeping up with competitors- necessity also arises from federal and state regulations
Case Studies:
Citibank introduced ATMs- the Toxic Substances Control Act and the Sarbanes-Oxley Act
ITU Management Faculty – MIS

58. Strategic business objectives of information systems
TOYOTA CASE
Problem: Tough competition and demanding customers.
Solutions:
Redesigned order and production processes reduce costs, increase revenue, and improve customer service.
E-Business software makes it possible to build cars to order and forecast demand and production requirements more accurately.
• Demonstrates IT’s role in analyzing market trends and monitoring quality, efficiency, and costs.
• Illustrates the emerging digital firm landscape where
businesses can use tools to analyze critical data.
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59. Strategic business objectives of information systems
TOYOTA CASE
Reading: An Evaluation of Toyota Motor Company (TMC) Information Systems, Ryan Morris
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60. Strategic business objectives of information systems
TOYOTA CASE
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61. Information Technology Capital Investment
50%
34%
Between 1980 and 2004
IT investment (hardware inv.+ software inv.+ communications equipment inv.) grew from 34% to 50% in U.S.A.
In (Explore ! And Analyze!)
Source: Based on data in U.S. Department of Commerce, Bureau of Economic Analysis, National Income and Product Accounts, 2006.
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62. The emerging digital firm
ELECTRONIC COMMERCE- ELECTRONIC BUSINESS -ELECTRONIC MARKET
An organization where nearly all significant business processes and relationships with
- customers,
- suppliers,
- employees are enabled and key corporate assets are managed digitally.
• Information system links all parties to exchange information, products, services, payments
• Core business processes are accomplished through digital networks and span the entire organization or link multiple organizations.
• Key corporate assets — intellectual property, core competencies, and financial and human assets — are managed through digital means.
• Internal and external environments are quickly recognized and dealt with.
• Information technology is the “core of the business” and “the primary management tool”.
ITU Management Faculty – MIS

63. Information System – Classification By Organizational Structure
An information system (IS) can span departments, business units and corporations.
Departmental IS
Enterprise-Wide IS
Inter-Organizational IS
Information systems are usually connected by means of electronic networks
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64. Information System Classification By Organizational Structure
The various types of systems in the organization have interdependencies.
TPS are major producers of information that is required by many other systems in the firm, which, in turn, produce information for other systems. These different types of systems are loosely coupled in most business firms, but increasingly firms are using new technologies to integrate information that resides in many different systems.
BUSINESS
INTELLIGENCE
ITU Management Faculty – MIS

65. Information System - Classification By Function (Department)
An information system (IS) support each department in a corporation.
Operations
Accounting
Finance
Marketing
Human resources
Transaction Processing Systems (TPS): Automates routine and repetitive tasks that are critical to the operation of the organization
ITU Management Faculty – MIS

66. Information System - Classification By Function (Department)
An information system (IS) support each department in a corporation.
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67. Information System - Classification By Functional Perspectives
Sales
Contact customers
Sell the product
Take the order
Follow-up on the sale
5 year sales forecast
Marketing
Identify customers
Determine what they want
Planning products
Advertising and promoting products
Determine prices for products
Purchasing
Which vendors
Quantity to purchase
Coop, rebate tracking
Handle delivery discrepancies
Generate the purchase order
Manufacturing
Control Equipment and machinery
Design new products
When and quantity of products to produce
New production facilities
Generate the work order
Human Resources
Employee wages, salaries & benefits
Long term labor requirements
Tracking vacation, sick,
Track employee skills
Interview and review employees
Finance
Financial Assets
Investment management
Banking
Long term budgets
Accounting
Accounts Receivable
Disbursements
Payroll
Depreciation
Earned Coop and Rebates
ITU Management Faculty – MIS

68. Information System - Classification By Support Function
5-year sales trend
Profit Planning
5-year budget forecasting
Product development
Executive Support System
Strategic Level
Sales Management
Inventory Control
Annual budget
Production Scheduling
Cost Analysis
Pricing Analysis
Management Information System
Decision Support System
Intelligent Support Systems
Business Intelligence
Management Level
Simulation
Pgm coding
System support
Word Processing
Desktop Publishing
Knowledge Management System
Office Automation System
Knowledge Level
Order Processing
Fulfillment
Material Movement
A/R, A/P, GL
Payroll
POS
Transaction Processing System
W o r k e r s
Operational Level
ITU Management Faculty – MIS

69. Information System - Classification By Function (Department)
An information system (IS) support each department in a corporation.
Operations
Accounting
Finance
Marketing
Human resources
Transaction Processing Systems (TPS): Automates routine and repetitive tasks that are critical to the operation of the organization
ITU Management Faculty – MIS

70. From Information Technology to Information Systems
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71. Contemporary Approaches to Information Systems
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72. Contemporary Approaches to Information Systems
Sociotechnical systems
Information systems and the use of technology belong to everyone in an organization.
This concept is best carried out through a sociotechnical approach to viewing information systems, which allows both the technical and behavioral approaches to be combined for the good of the organization.
ITU Management Faculty – MIS

73. Information Society Evolution: Terms and Issues
1960
2000
Knowledge Society (Drucker )
Term invented to describe the next evolution of society
This evolution would be a result of the rise in the numbers and importance of knowledge workers in society
Education was described as the cornerstone of the knowledge society as it is core to the knowledge worker
Drucker was right again!
ITU Management Faculty – MIS

74. IS Role in Change: Trends and Terms
Downsizing (Sometimes called Rightsizing)
Reducing organizational headcount to meet the financial goals of the organization
IT is viewed as the lever to provide the systems necessary to increase productivity
Outsourcing
Transferring business functions outside the organization to increase service levels and/or reduce operating cost
IT is not immune to this trend. Certain commodity IT technical jobs will be increasingly transferred overseas
IT must find better methods to manage offshore work
ITU Management Faculty – MIS

75. Information Society Evolution: Periods of Change
Agricultural
Industrial
Informational
(Prior to 1890’s)
(1890’s to 1960’s)
(1960’s to Present)
ITU Management Faculty – MIS

76. Information Society Evolution: Terms and Issues
1960
2000
Knowledge Worker (Peter Drucker 1959)
A term invented to describe a future trend in the workforce
These will be professionals that create, modify and/or synthesize information as a fundamental part of their job
They will require higher education levels and received higher compensation than workers in agriculture or manufacturing
The term is still generally accepted today (Drucker was right!)
ITU Management Faculty – MIS

77. Information Society Evolution: Terms and Issues
1960
2000
New Economy (Wired Magazine - Late 1990s)
Similar to “knowledge society” but more descriptive
Describes a society where people use their brains more than their hands in their work and personal lives
Where communications technology and other IT systems will create global competition for all products and services
Other names: Digital Economy, Network Era, Internet Era
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78. The New Economy (NE): Social Perspectives
Perspective 1: Sims –Taylor
The new economy creates risks for Knowledge Workers
Knowledge workers will be the first to be replaced by automation with information technology
Perspective 2: Rikfin
The overreliance on information technology has caused society to act hastily (excess rapidity)
The result has been a loss of perspective
Perspective 3: THE DIGITAL DIVIDE
Those with access to information technology have great advantages over those that don’t
IT access will further polarize society
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79. ITU Management Faculty – MIS
Trends in Technology
Cost-performance ratio of chips keeps improving. Moore’s Law, his prediction was that the processing power of silicon chips would double every 18 months.
Several new devices and methods to increase storage capacity price performance
Object-oriented programming technology enables the development of self-contained units of software that can be shared
Networked and distributed computing is emerging rapidly (Metcalfe’s Law).
ITU Management Faculty – MIS

80. ITU Management Faculty – MIS
Trends in Technology
Internet
Mobile Computing and M-Commerce
Wireless networks
Pervasive Computing
Smart Devices
ITU Management Faculty – MIS

81. ITU Management Faculty – MIS
Trends in Technology
The Networked Enterprise
The Network Computer
Optical Networks
Storage Area Networks
Intranets & Extranets
The Internet
ITU Management Faculty – MIS

82. Article Readings and Case Studies
An Evaluation of Toyota Motor Company IS
Politics of the Future – How the Internet is changing and will change politics forever
How Obama’s Internet Campaign changed Politics (NY Times) ( Obama Everywhere)
How Information Technology is Revolutionizing the Field of Medicine
Nestle Struggles with Enterprise Systems
Please read and comment on “any” of these cases !
To be discussed in Week 3, opening session…
ITU Management Faculty – MIS