Information Systems in a Changing Environment

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					    Information Systems
in a Changing Environment

         Session 1


                With thanks to Laudon & Laudon   1
                         Objectives
To discuss these questions:

1.   What is the role of information systems in today’s competitive
     business environment?

2.   What exactly is an information system? What do managers need
     to know about information systems?

3.   How are information systems transforming organizations and
     management?

4.   How have the Internet and Internet technology transformed
     business and government?

5.   What are the major management challenges to building and using
     information systems?

                                                                      2
                    Topics
1.   Changing Business Environment
2.   Organisation Design
3.   What is an Information System?
4.   Information System is more than technology
5.   The Internet
6.   The Digital Firm
7.   Management Challenges
8.   Case Study – A&B Supermarkets

                                                  3
  Changing Business Environment

     Four powerful worldwide changes that have
         altered the business environment:
1. Globalization
2. Rise of the Information Economy
3. Transformation of the Business
   Enterprise
4. Emergence of the Digital Firm


                                                 4
                Globalization


•   Management and control in a global
    marketplace
•   Competition in world markets
•   Global workgroups
•   Global delivery systems




                                         5
    Rise of the Information Economy

•   Knowledge- and information-based economies

•   New products and services

•   Knowledge: a central productive and strategic asset

•   Time-based competition

•   Shorter product life

•   Turbulent environment

•   Limited employee knowledge base

                                                          6
Growth of the Information Economy




                                    7
    Transformation of the Business
             Enterprise
•   Flattening

•   Decentralization

•   Flexibility

•   Location independence

•   Low transaction and coordination costs

•   Empowerment

•   Collaborative work and teamwork

                                             8
Information Technology Capital
     Investment 1980-2003




                                 9
    Emergence of the Digital Firm
•   Digitally enabled relationships with customers,
    suppliers, and employees

•   Core business processes accomplished via networks

•   Digital management of key corporate assets

•   Rapid sensing and responding to environmental
    changes




                                                        10
New Options for Organization Design

•   Flattening organizations

•   Separating work from location

•   Reorganizing workflows

•   Increasing flexibility

•   Redefining organizational boundaries

                                           11
Flattening Organizations




                           12
Redesigned Workflow for Insurance
          Underwriting




                                13
  What is an Information System?


A set of interrelated components that collect
(or retrieve), process, store, and distribute
information to support decision making and
control in an organization



                                            14
   What is an Information System?

• Data: Streams of raw facts representing
     events such as business transactions

• Information: Clusters of data that are
  meaningful and useful to human beings




                                            15
                Data and Information


331 Brite Dish Soap 1.29
863 BL Hill Coffee 4.69
173 Meow Cat .79
331 Brite Dish Soap 1.29
663 Cntry Ham 3.29
524 Fiery Mustard 1.49
113 Ginger Root .85
331 Brite Dish Soap 1.29




      Data                    Information
                                            16
Functions of an Information System




                                 17
               Why Information Systems?
               Case Study: UPS

•   What are the inputs, processing, and outputs of
    UPS’s package tracking system?

•   What technologies are used?

•   How are these technologies related to UPS’s
    business strategy? How do they provide value for
    the company?

•   What would happen if these technologies were not
    available?

                                                       18
Information Systems are more than
            Computers




                                19
    Knowledge and Understanding


• Information systems literacy: Broad-based
  understanding of information systems that includes
  behavioral knowledge about organizations and
  individuals using information systems and technical
  knowledge about computers

• Computer literacy: Knowledge about
  information technology, focusing on understanding
  how computer-based technologies work

                                                   20
Contemporary Approaches to Information
              Systems

•   Technical approach: emphasizes
    mathematically based models, physical
    technology, and formal capabilities of systems

•   Behavioral approach: studies issues arising
    from development and maintenance of
    systems, such as business integration and
    utilization

                                                     21
Contemporary Approaches to Information
              Systems




                                    22
  Socio-technical Perspective
System performance optimized when technology and organization
            adjust to each other for a satisfactory fit




                                                                23
Widening Scope of Information Systems

 •   1950s: Technical changes

 •   1960s-70s: Managerial controls

 •   1980s-90s: Institutional core activities

 •   Today: Digital information webs extending
     beyond the enterprise

                                                 24
Widening Scope




                 25
                  The Internet

•   International network of networks

•   Universal technology platform: Any computer
    can communicate with any other computer

•   World Wide Web and Web sites




                                                  26
              Using the Internet
•   Communicate and collaborate

•   Access information

•   Participate in discussions

•   Supply information

•   Find entertainment

•   Exchange business transactions

                                     27
       Effects of the Internet
• What direct influence does the Internet
  have on your work?


• What indirect influence does the Internet
  have on your work?




                                              28
                  The Digital Firm

•   Electronic Commerce (e-commerce): buying and selling
    goods and services electronically

•   Electronic Business: executing all the firm’s business
    processes with Internet technology

•   Intranet: private, secure business network based on
    Internet technology

•   Extranet: extension of intranet to authorized external
    users


                                                             29
 Electronic Business and Electronic
Commerce in the Emerging Digital Firm




                                        30
        Management Challenges
1. Design competitive and effective systems.

2. Understand system requirements of global
   business environment.

3. Create information architecture that supports
   organization’s goal.

4. Determine business value of information
   systems.

5. Design systems people can control, understand
   and use in a socially, ethically responsible
                                                31
   manner.
             Positive Impacts of
            Information Systems
•   Faster calculations and paperwork

•   Analysis of customer purchase patterns and
    preferences

•   More efficient business services

•   Medical advances

•   Instant global distribution of information

                                                 32
             Negative Impacts of
            Information Systems
•   Automation leading to job elimination

•   Privacy concerns

•   System outages and shutdowns

•   Health problems, repetitive stress injury

•   Illegal distribution of intellectual property


                                                    33
          Case Study: A&P
1. What problems did A&P have with its
   business? What management, organization,
   and technology factors contributed to these
   problems?
2. To what extent was the Great Renewal project
   a solution to the company's problems? What
   problems could system modernization solve?
   What problems could it not solve?
3. How would implementing new systems change
   the way A&P ran its business?

                                              34

				
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posted:5/22/2012
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