1.1 chapter 1. the information systems revolution transforming business and management
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1.1.11
CHAPTER 1. THE CHAPTER 1. THE INFORMATION SYSTEMS INFORMATION SYSTEMS
REVOLUTIONREVOLUTION
TRANSFORMING TRANSFORMING BUSINESS AND BUSINESS AND MANAGEMENTMANAGEMENT
1.1.22
LEARNING OBJECTIVESLEARNING OBJECTIVES
• DEFINE INFORMATION SYSTEMSDEFINE INFORMATION SYSTEMS
• COMPUTER LITERACY versus COMPUTER LITERACY versus INFORMATION SYSTEMS LITERACYINFORMATION SYSTEMS LITERACY
• EXPLAIN IMPACT OF INFORMATION EXPLAIN IMPACT OF INFORMATION SYSTEMS ON ORGANIZATION & SYSTEMS ON ORGANIZATION & MANAGEMENTMANAGEMENT
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LEARNING OBJECTIVESLEARNING OBJECTIVES
• COMPARE ELECTRONIC COMMERCE COMPARE ELECTRONIC COMMERCE & ELECTRONIC BUSINESS, & ELECTRONIC BUSINESS, RELATIONSHIP TO INTERNET & RELATIONSHIP TO INTERNET & DIGITAL TECHNOLOGYDIGITAL TECHNOLOGY
• IDENTIFY MAJOR MANAGEMENT IDENTIFY MAJOR MANAGEMENT CHALLENGES TO BUILDING, USING CHALLENGES TO BUILDING, USING INFORMATION SYSTEMSINFORMATION SYSTEMS
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MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES
• WHY INFORMATION SYSTEMS?WHY INFORMATION SYSTEMS?• CONTEMPORARY APPROACHES TO CONTEMPORARY APPROACHES TO
INFORMATION SYSTEMSINFORMATION SYSTEMS• NEW ROLE OF INFO SYSTEMS IN NEW ROLE OF INFO SYSTEMS IN
ORGANIZATIONSORGANIZATIONS• LEARNING TO USE INFO SYSTEMS: NEW LEARNING TO USE INFO SYSTEMS: NEW
OPPORTUNITIES WITH TECHNOLOGYOPPORTUNITIES WITH TECHNOLOGY
**
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BUSINESS ENVIRONMENTBUSINESS ENVIRONMENT
• GLOBALIZATIONGLOBALIZATION
• INDUSTRIAL ECONOMIESINDUSTRIAL ECONOMIES
• TRANSFORMATION OF THE TRANSFORMATION OF THE ENTERPRISEENTERPRISE
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GLOBALIZATIONGLOBALIZATION
• MANAGEMENT & CONTROLMANAGEMENT & CONTROL
• COMPETITION IN WORLD MARKETSCOMPETITION IN WORLD MARKETS
• GLOBAL WORK GROUPSGLOBAL WORK GROUPS
• GLOBAL DELIVERYGLOBAL DELIVERY SYSTEMSSYSTEMS
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TRANSFORMATIONTRANSFORMATION• KNOWLEDGE-BASED ECONOMIESKNOWLEDGE-BASED ECONOMIES• PRODUCTIVITYPRODUCTIVITY• NEW PRODUCTS & SERVICESNEW PRODUCTS & SERVICES• KNOWLEDGE AS AN ASSETKNOWLEDGE AS AN ASSET• TIME-BASED COMPETITIONTIME-BASED COMPETITION• SHORTER PRODUCT LIFESHORTER PRODUCT LIFE• TURBULENT ENVIRONMENTTURBULENT ENVIRONMENT• LIMITED EMPLOYEE LIMITED EMPLOYEE KNOWLEDGE BASEKNOWLEDGE BASE
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TRANSFORMATION OF TRANSFORMATION OF ENTERPRISEENTERPRISE• FLATTENINGFLATTENING• DECENTRALIZATIONDECENTRALIZATION• FLEXIBILITYFLEXIBILITY• LOCATION INDEPENDENCELOCATION INDEPENDENCE• LOW TRANSACTION COSTSLOW TRANSACTION COSTS• EMPOWERMENTEMPOWERMENT• COLLABORATIVE WORKCOLLABORATIVE WORK
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KNOWLEDGE- AND KNOWLEDGE- AND INFORMATION-INTENSE INFORMATION-INTENSE
PRODUCTSPRODUCTS• PRODUCTS THAT REQUIRE A PRODUCTS THAT REQUIRE A
GREAT DEAL OF LEARNING & GREAT DEAL OF LEARNING & KNOWLEDGE TO PRODUCEKNOWLEDGE TO PRODUCE
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LABOR FORCE COMPOSITION 1900-1996LABOR FORCE COMPOSITION 1900-1996
Source: Laudon & Laudon 2000
0%
10%
20%
30%
40%
50%
60%
70%
1900
1910
1920
1930
1940
1950
1960
1970
1980
1996
YEAR
% SERVICE
% WHITE COLLAR% BLUE COLLAR
% FARMING
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FUNCTIONS OF AN INFORMATION SYSTEMFUNCTIONS OF AN INFORMATION SYSTEM
INPUT OUTPUTPROCESS
FEEDBACK
INFORMATION SYSTEMINFORMATION SYSTEM
ENVIRONMENTENVIRONMENT
Customers Suppliers Customers Suppliers
Regulatory Regulatory Stockholders CompetitorsStockholders CompetitorsAgenciesAgencies
ORGANIZATIONORGANIZATION
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COMPUTER-BASED COMPUTER-BASED INFORMATION SYSTEMS INFORMATION SYSTEMS (CBIS)(CBIS)
• FORMAL SYSTEMSFORMAL SYSTEMS
• FIXED DEFINITIONS OF DATA, FIXED DEFINITIONS OF DATA, PROCEDURESPROCEDURES
• COLLECTING, STORING, COLLECTING, STORING, PROCESSING, DISSEMINATING, PROCESSING, DISSEMINATING, USING DATAUSING DATA
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INFORMATION SYSTEMSINFORMATION SYSTEMS
ORGANIZATIONSORGANIZATIONS TECHNOLOGYTECHNOLOGY
MANAGEMENTMANAGEMENT
INFORMATIOINFORMATIONN
SYSTEMSSYSTEMS
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MAJOR ORGANIZATIONAL MAJOR ORGANIZATIONAL FUNCTIONSFUNCTIONS
• SALES & MARKETINGSALES & MARKETING
• MANUFACTURINGMANUFACTURING
• FINANCEFINANCE
• ACCOUNTINGACCOUNTING
• HUMAN RESOURCESHUMAN RESOURCES
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COMPUTER TECHNOLOGYCOMPUTER TECHNOLOGY
• HARDWAREHARDWARE
• SOFTWARESOFTWARE
• STORAGESTORAGE
• COMMUNICATIONSCOMMUNICATIONS
• NETWORKNETWORK
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APPROACHES TO INFO SYSTEMSAPPROACHES TO INFO SYSTEMS
SOCIOLOGYSOCIOLOGY
POLITICAL POLITICAL SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTER COMPUTER
SCIENCESCIENCEOPERATIONS OPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
MISMIS
TECHNICAL APPROACHESTECHNICAL APPROACHES
BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES
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SOCIOTECHNICAL PERSPECTIVESOCIOTECHNICAL PERSPECTIVE
OPTIMIZE SYSTEM PERFORMANCE:OPTIMIZE SYSTEM PERFORMANCE:
TECHNOLOGY & ORGANIZATION TECHNOLOGY & ORGANIZATION MUTUALLY ADJUST TO ONE MUTUALLY ADJUST TO ONE
ANOTHERANOTHER
UNTIL FIT IS SATISFACTORYUNTIL FIT IS SATISFACTORY
**
SOURCE: Liker, et al, 1987
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SYSTEM INTERDEPENDENCESYSTEM INTERDEPENDENCE
BUSINESSBUSINESS
StrategyStrategy
RulesRules
ProceduresProcedures
ORGANIZATION ORGANIZATION INFORMATION SYSTEMINFORMATION SYSTEM
HARDWAREHARDWARE
SOFTWARESOFTWARE DATABASEDATABASE
TELE-TELE-COMMUNICATIONSCOMMUNICATIONS
INTERDEPENDENCEINTERDEPENDENCE
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• 1950s:1950s: TECHNICAL CHANGES TECHNICAL CHANGES• 60s-70s:60s-70s: MANAGERIAL CONTROL MANAGERIAL CONTROL• 80s-90s:80s-90s: INSTITUTIONAL CORE ACTIVITIES INSTITUTIONAL CORE ACTIVITIES
GROWING IMPORTANCEGROWING IMPORTANCE
**
SCOPE OF INFO SYSTEMSSCOPE OF INFO SYSTEMS
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WHAT YOU CAN DO ON THE WHAT YOU CAN DO ON THE INTERNETINTERNET
• COMMUNICATE & COLLABORATECOMMUNICATE & COLLABORATE
• ACCESS INFORMATIONACCESS INFORMATION
• DISCUSSDISCUSS
• OBTAIN INFORMATIONOBTAIN INFORMATION
• ENTERTAINENTERTAIN
• TRANSACT BUSINESS TRANSACT BUSINESS
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NEW OPTIONS FOR NEW OPTIONS FOR ORGANIZATIONAL DESIGNORGANIZATIONAL DESIGN
• FLATTENING ORGANIZATIONSFLATTENING ORGANIZATIONS• SEPARATING WORK FROM LOCATIONSEPARATING WORK FROM LOCATION• REORGANIZING WORK-FLOWSREORGANIZING WORK-FLOWS• INCREASING FLEXIBILITYINCREASING FLEXIBILITY• REDEFINING REDEFINING
ORGANIZATIONAL ORGANIZATIONAL BOUNDARIESBOUNDARIES
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THE CHANGING THE CHANGING MANAGEMENT PROCESSMANAGEMENT PROCESS
• ELECTRONIC COMMERCEELECTRONIC COMMERCE
• ELECTRONIC BUSINESSELECTRONIC BUSINESS
• ELECTRONIC MARKETELECTRONIC MARKET
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ELECTRONIC COMMERCEELECTRONIC COMMERCE• INTERNET LINKS BUYERS, SELLERSINTERNET LINKS BUYERS, SELLERS
• LOWERS TRANSACTION COSTSLOWERS TRANSACTION COSTS
• GOODS & SERVICES GOODS & SERVICES ADVERTISED, BOUGHT, EXCHANGED ADVERTISED, BOUGHT, EXCHANGED WORLDWIDEWORLDWIDE
• BUSINESS-TO-BUSINESS BUSINESS-TO-BUSINESS TRANSACTIONS TRANSACTIONS INCREASINGINCREASING
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ELECTRONIC BUSINESSELECTRONIC BUSINESS
• INTRANET: BUSINESS BUILDS INTRANET: BUSINESS BUILDS PRIVATE, SECURE NETWORKPRIVATE, SECURE NETWORK
• E-MAIL, WEB DOCUMENTS, GROUP E-MAIL, WEB DOCUMENTS, GROUP SOFTWARE EXTENDS SOFTWARE EXTENDS EFFECTIVE EFFECTIVE
COMMUNICATION & COMMUNICATION & CONTROLCONTROL
• VIRTUAL ORGANIZATIONVIRTUAL ORGANIZATION
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SALES & MARKETING
COMPANY
FINANCE COMPANY
LOGISTICS
COMPANY
DESIGN
COMPANY
MANUFACTURING
COMPANY
VIRTUAL ORGANIZATIONVIRTUAL ORGANIZATION
CORECORECOMPANYCOMPANY
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CHALLENGE OF INFO SYSTEMSCHALLENGE OF INFO SYSTEMS
• STRATEGIC: COMPETITIVE & EFFECTIVESTRATEGIC: COMPETITIVE & EFFECTIVE• GLOBALIZATION: MULTINATIONAL INFOGLOBALIZATION: MULTINATIONAL INFO• INFO ARCHITECTURE: SUPPORT GOALSINFO ARCHITECTURE: SUPPORT GOALS• INVESTMENT: VALUE OF INFORMATIONINVESTMENT: VALUE OF INFORMATION• RESPONSIBILITY & CONTROL: ETHICSRESPONSIBILITY & CONTROL: ETHICS
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Connect to the INTERNETConnect to the INTERNET
© 2001 Laudon & Laudon, Essentials of Management Information Systems 4/e
Laudon/Laudon Web site: http://www.prenhall.com/laudon
Additional Internet Resources related to this chapter:http://www.dell.com
http://www.amazon.com http://www.firstunion.com
http://www.intel.com http://www.clemson.edu/ http://www.gatech.eduhttp://www.bath.ac.uk http://www.intranet.comhttp://www.ascusc.org/jcmc/vol1/issue1/index.html