The Information Systems Revolution

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The Information Systems Revolution

• Transforming Business and Management

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Class Activity

• Break into groups of four and
• Introduce yourself to the members of your group
  and describe yourself to the members of your
  group
• Information technology can help companies to
• Identify five knowledge- and information-intense
  products

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VW Mexico and the Internet

• SAPs ERP system integrated with the web to
  reduce part ordering time from 10 to 5 days
• Enabled dealer to use a browser and get order
  information through an intranet on the worldwide
  web

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VW Mexico and the Internet

• SAPs ERP system integrated with the web to
  reduce part ordering time from 10 to 5 days
• Enabled dealer to use a browser and get order
  information through an intranet on the worldwide
  web

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Information Systems

• Can help companies to
• Extend their reach to faraway locations
• Offer new products and services
• Reshape jobs and work flows, and perhaps
  profoundly change the way they conduct business

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Three Powerful Worldwide Changes

1. Globalization
2. Transformation of industrial economies to
   knowledge and information-based economies
3. Transformation of the enterprise

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Globalization

• Management Control In A Global Marketplace
• Competition In World Markets
• Global Work Groups
• Global Delivery Systems

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Globalization

• Information systems are a powerful ally enabling
  businesses to
• Communicate with distributors, suppliers, and
  customers worldwide
• Operate 24/7
• Serve local and international reporting needs
• Compete globally by bringing your products and
  services to a global market

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Transformation of Industrial Economies

• To knowledge- and information-based service
  economies.
• Increase need for white-collar workers
• Manufacturing has moved to low-wage countries
• Knew knowledge- and information-intense products

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Transformation of Industrial Economies

• To knowledge- and information-based service
  economies.
• Increase need for white-collar workers
• Manufacturing has moved to low-wage countries.
• Knew knowledge- and information-intense products

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Transformation of Industrial Economies

• To knowledge- and information-based service
  economies.
• Increase need for white-collar workers
• Manufacturing has moved to low-wage countries.
  For how long?
• Knew knowledge- and information-intense products

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LABOR FORCE COMPOSITION 1900-1996
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Economic Transformation

• Knowledge-based Economies
• Productivity
• New Products Services
• Knowledge As An Asset
• Time-based Competition
• Shorter Product Life
• Turbulent Environment
• Limited Employee Knowledge Base

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Knowledge- and Information-Intense Products

• Credit cards
• Overnight package delivery
• Worldwide reservation systems

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Transformation Of The Enterprise

• Flattening
• Decentralization
• Flexibility
• Location Independence
• Low Transaction Costs
• Empowerment
• Collaborative Work

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What is an Information System

• A set of interrelated components that
• Collects data - INPUT
• Transforms data - PROCESS
• Disseminates information - OUTPUT

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SYSTEM
INPUT
OUTPUT
PROCESS
FEEDBACK
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FUNCTIONS OF AN INFORMATION SYSTEM
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What is an information system?

• An organizational and management solution, based
  on information technology, to a challenge posed
  by the environment.

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INFORMATION SYSTEMS
ORGANIZATIONS
TECHNOLOGY
MANAGEMENT
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The Key Elements of an Organization

• People
• Structure and operating procedures
• Politics
• Culture

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People

• Knowledge workers
• Product or service designers and knowledge
  creators
• Data workers
• The paper-pushers
• Production or service workers
• Producers/service providers

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Structure

• Sales and Marketing
• Manufacturing
• Finance
• Accounting
• Human Resources

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SOCIOTECHNICAL PERSPECTIVE

• Information systems are sociotechnical systems.
  Though they are composed of machines devices, and
  hard physical technology, they require
  substantial social, organizational, and
  intellectual investment to make them work
  properly

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APPROACHES TO INFO SYSTEMS
TECHNICAL APPROACHES
COMPUTER SCIENCE
OPERATIONS RESEARCH
MANAGEMENT SCIENCE
BEHAVIORAL APPROACHES
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Behavioral Approach

• Focuses on strategic business integration,
  design, implementation, and utilization
• Focuses on changes in
• Attitude
• Management and organizational policy
• Behavior

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SYSTEM INTERDEPENDENCE
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Information System Impacts

• What a business would like to do in five years is
  often dependent on what its systems will be able
  to do
• Becoming the high-quality or low-cost producer
• Developing new products
• Increasing employee productivity

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SCOPE OF INFO SYSTEMS

• 1950s TECHNICAL CHANGES
• 60s-70s MANAGERIAL CONTROL
• 80s-90s INSTITUTIONAL CORE ACTIVITIES
• GROWING IMPORTANCE

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Computing Power

• Doubling every 18 months
• The performance of the microprocessors have
  improved 25,000 times since their invention 25
  years ago
• Soaring power has spawned powerful communications
  networks the largest of which is

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What You Can Do On The Internet

• Communicate Collaborate
• e-mail
• Access Information
• Databases
• Discussions
• Chats
• Obtain Information
• FTP
• Entertainment
• Play, view, read, animate
• Business Transactions
• Advertise, sell, and purchase

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The Number of Internet Users

• Greater than 250 million today!

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New Options For Organizational Design

• Flattening Organizations
• Separating Work From Location
• Increasing Flexibility
• Refining Organizational Boundaries
• Reorganizing Work Flows

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The Changing Management Process

• Enterprise Resource Planning
• Electronic Commerce
• Electronic Business

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Enterprise Resource Planning

• Software Integrates All Facets
• Planning, Manufacturing, Inventory, Sales,
  Finance, Accounting
• Transactions Alert All Involved Factors
• Updates Files, Speeds Action, Cuts Cost

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Electronic Commerce

• Internet Links Buyers, Sellers
• Lowers Transaction Costs
• Goods Services Advertised, Bought, Exchanged
  Worldwide
• B2B Transactions Increasing

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Electronic Business

• Intranet Business Builds Private, Secure Network
• E-mail, Web Documents, Group Software Extends
  Effective Communication Control
• Virtual Organization

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VIRTUAL ORGANIZATION
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CHALLENGE OF INFO SYSTEMS

• STRATEGIC Maintaining a competitive edge
• GLOBALIZATIONIntegrated systems
• INFO ARCHITECTURE Development
• INVESTMENT What is the value?
• RESPONSIBILITY CONTROL Ethics

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