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© 2013, published by Flat World Knowledge 1-1
Information Systems: A Manager’s Guide to Harnessing
Technology, version 2.0John Gallaugher
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Published by:
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Chapter 1
Setting the Stage: Technology and the Modern
Enterprise
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Learning Objective
• Appreciate how in recent years, technology has helped bring about radical changes across industries and throughout societies
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Technology: Changing Business Landscapes
• Billions of people have access to computing and telecommunications
• Google, Twitter, and Facebook have changed the way firms advertise and people communicate – Open source software has lowered computing costs
• Cloud computing and software as a service – Turned high-powered computing into a utility
available to even the smallest businesses and nonprofits
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Technology: Changing Business Landscapes
• New technologies have: – Fueled globalization– Redefined concepts of software and computing– Crushed costs– Fueled data-driven decision making– Raised privacy and security concerns
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Learning Objective
• Identify firms across hardware, software, and Internet businesses that were founded by people in their twenties
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It’s a Young People’s Revolution
• Many of the world’s most successful technology firms were created by young people– Bill Gates - Undergraduate when he left college to
found Microsoft – Michael Dell - Sophomore when he began building
computers at the University of Texas
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Learning Objectives
• Understand the degree to which technology has permeated every management discipline
• Learn that tech careers are varied, richly rewarding, and poised for continued growth
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Technology: Growing Importance
• All modern managerial disciplines have been impacted by technology
• Tech knowledge has become a key differentiator for a job seeker
• With computing getting cheaper and faster, it is being used everywhere
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Finance
• Tech industry continually develops new businesses – Suited to IPO markets
• Tech firms are actively involved in mergers and acquisitions (M&A)
• Technology acts as an opportunity catalyst or a disruptive wealth destroyer
• Finance careers – Lending to tech firms– Evaluating the role of technology in firms in an
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Table 1.1 – 2012 Tech Deals by Sector
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Source: “US Technology M&A Insights 2013,” PwC, March 2013.
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Table 1.2 – Acquisition Deals by Firm
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Source: The Deal, May 7, 2012
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Accounting
• Reliability of any audit is tied to the reliability of the underlying technology
• Increased regulation has strengthened the link between accounting and technology – Sarbanes-Oxley Act: Raised the executive and board
responsibilities and ties criminal penalties to certain accounting and financial violations
• Major accounting firms have spawned tech-focused consulting practices
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Marketing
• Firms use online channels to track and monitor consumer activities
• Firms are shifting spending from traditional media to the Web because of its ability to:– Track customers– Analyze campaign results– Modify tactics
• Firms are using apps to develop location-based messages and services and for cashless payment
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Marketing
• Firms are using social media to:– Generate sales– Improve their reputations– Better serve customers– Innovate
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Marketing
• Central components of the new marketing toolkit – Search engine marketing (SEM)– Search engine optimization (SEO) – Customer relationship management (CRM)– Personalization systems– Managing the balance between gathering data and
respecting consumer privacy
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Operations
• Tech-centric operations– Quality programs – Process redesign– Supply chain management– Factory automation– Service operations
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Human Resources
• Knowledge management systems are transforming into social media technologies – Helps in organizing and leveraging teams of experts
• Technology is used for employee training, screening, and evaluation
• Recruiting has moved online– Grounded in information systems that search
databases for specific skill sets– Job seekers write resumes with key words as the first
cut can be made by a database search program
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Human Resources
• Professional social networks have put added pressure on employee satisfaction and retention
• Some students with their thoughtful blog posts, compelling LinkedIn presence, and Twitter activities set themselves apart from their counterparts
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Law
• Activity has increased in the areas of intellectual property, patents, piracy, and privacy
• Firms need legal teams with the skills to: – Determine whether a firm can legally do what it plans – Help them protect proprietary methods and content– Help enforce claims in the home country and abroad
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Information Systems Careers
• Programmers • Experts in user-interface design, process design, and
strategy• Consulting and field engineering • Chief information officer • Chief technology officer • C-level specialties in emerging areas – Chief information security officer (CISO)– Chief privacy officer (CPO)
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Future of Students
• Intersection of business and technology must be studied to develop critical-thinking skills– To evaluate new, emerging technologies
• Those not trained to evaluate and make decisions risk irrelevance, marginalization, and failure
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