The Importance of IS Management
The Organizational Environment
External forces cause firms to reexamine how they compete:
Internet Economy Globalization Business Ecosystems Deregulation Faster Business Cycles Greater Transparency and Accountability
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The Organizational Environment
Internal structural forces affect how companies operate:
Demand-pull Customer centricity Self-service Real-time working Team-based working Anytime/anyplace information work Outsourcing and strategic alliances The demise of hierarchy
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The Organizational Environment Goals of the New Work Environment
• Leveraging knowledge globally • Organizing for complexity • Working electronically • Handling continuous and discontinuous
change.
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The Technology Environment
Hardware Trends Moving Toward Wireless
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The Technology Environment
Software Trends Network-centric
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The Technology Environment
Data Trends Move Towards Content
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The Technology Environment
Communication Trends Internet-centric Telecom
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The Mission of Information Systems
The mission is to improve the performance of people in organizations through the use of information technology.
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A Simple Model
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A Better Model
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2. The Users
Clerical Managerial
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Where Is the IS Organization Headed? Escalating Benefits of IT
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Waves of Innovation
- Below the line (Saving $)
• Wave 1: Reducing costs
– Began in the ’60s – Focused on increasing the productivity of individuals and business areas by e.g. automating manual processes
• Wave 2: Leveraging Investments
– Began in the ’70s – Concentrated on more effective use of corporate assets – Systems justified on ROI, cash flow etc.
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Waves of Innovation
- Above the line (Making $)
• Wave 3: Enhancing Products & Services
– Began in the ’80s – Attention shifted to using IT to produce revenue by gaining strategic advantage or creating entirely new businesses
• Wave 4: Enhancing Executive Decision Making
– Began in the late ’80s – Changed fundamental structure of organizations – Created real-time business management systems
• Waves 1 & 2 = could be done at ‘any time’ (and are still being done!) • Waves 3 & 4 = must be implemented once an industry leader has set a
precedent
– Companies that don’t do = cease to be competitive
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Waves of Innovation
- Above the line (Making $) cont.
• Wave 5: Reaching the Consumer
– Began in the ’90s – Uses IT to communicate directly with consumers leading to new:
• Marketing • Distribution, and • Service strategies – Changes the rules of competition
• Management must be involved in guiding IT use once you
‘cross the line’
– Management must steer the company in the new (evolved) business environment
• Not the ‘techies’
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Where Is the IS Organization Headed?
CASE EXAMPLE: SABRE System
American extends its consumer reach : 1. EAASY SABRE computer reservation system 2. AAdvantage frequent flyers club 3. NetSaaver system
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