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Information%20Technology%20For%20Management%205th%20Edition

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Title: Information%20Technology%20For%20Management%205th%20Edition


1
Chapter 1
Information Technology Strategic Application in
a Digital Economy and Business Environment
  • Information Technology For Management 5th Edition
  • Turban, Leidner, McLean, Wetherbe
  • John Wiley Sons, Inc.

2
Digital Economy New Economy
  • The digital economy refers to an economy that is
    based on digital technologies, including digital
    communication networks, computers, and software.
  • The digital economy is also sometimes called the
    Internet economy, the New economy, or the Web
    economy.

3
Digital Economy New Economy
  • Collaboration People and Organizations interact,
    communicate, collaborate and search for
    information
  • Information Exchange Storing, processing and
    transmission of information.
  • E-Business The use of electronic technologies to
    transact business.

4
The Old Economy Taking Photos
  1. Buy film in a store
  2. Load your camera
  3. Take pictures
  4. Take roll of film to store for processing
  5. Pickup the film when ready
  6. Select specific photos for enlargement
  7. Mail to family and friends

5
The New Economy Taking Photos
  • 1st Generation Digital Photography
  • Old economy except 6 and 7 were replaced by using
    a scanner and emailing
  • 2nd Generation Digital Photography
  • Use a Digital Camera, no film, no processing.
  • 3rd Generation Digital Photography
  • Your Digital Camera is now your mobile phone, in
    your binoculars or a palmtop computer.

6
Question for Discussion
  • Review the examples of the new versus the old
    economy cases. In what way did IT make the
    difference?

7
Business Models
  • A business model is a method of doing business by
    which a company can generate revenue to sustain
    itself. The model spells out how the company adds
    value to create a product or service. (Value
    Chain)
  • Nokia makes and sells cell phones
  • A TV station provides free broadcasting. Its
    survival depends on a complex model involving
    advertisers and content providers.
  • Internet portals, such as Yahoo, also use a
    complex business model.

8
Digital Age Business Models
  • Name-Your-Own Price
  • Reverse Auctions
  • Affiliate Marketing
  • E-Marketplaces and Exchanges
  • Electronic aggregation (buying groups)

9
Information System
  • An information system (IS) collects, processes,
    stores, analyzes, and disseminates information
    for a specific purpose.
  • An information system includes inputs (data,
    instructions) and outputs (reports,
    calculations). It processes the inputs by using
    technology such as PCs and produces outputs that
    are sent to users or to other systems via
    electronic networks and a feedback mechanism that
    controls the operation.

10
Information System Is A System
11
Computer Based Information System
Application
Hardware
  • Hardware
  • Software
  • Data
  • Network
  • Procedures
  • People

Software
Data
People
More than hardware and software
12
Information Systems
  • Functional Perspective
  • Marketing
  • Identify customers
  • Determine what they want
  • Planning products
  • Advertising and promoting products
  • Determine prices for products

13
Information Systems
  • Functional Perspective
  • Sales
  • Contact customers
  • Sell the product
  • Take the order
  • Follow-up on the sale
  • 5 year sales forecast

14
Information Systems
  • Functional Perspective
  • Manufacturing
  • Control Equipment and machinery
  • Design new products
  • When and quantity of products to produce
  • New production facilities
  • Generate the work order

15
Information Systems
  • Functional Perspective
  • Purchasing
  • Which vendors
  • Quantity to purchase
  • Handle delivery discrepancies
  • Generate the purchase order

16
Information Systems
  • Functional Perspective
  • Finance
  • Financial Assets
  • Investment management
  • Banking
  • Long term budgets

17
Information Systems
  • Functional Perspective
  • Human Resources
  • Employee wages, salaries benefits
  • Long term labor requirements
  • Tracking vacation, sick
  • Track employee skills
  • Interview and review employees

18
Question for Discussion
  • Discuss why some information systems fail.

19
Trends in Technology
  • Cost-performance ratio of chips keeps improving.
    Moores Law, his prediction was that the
    processing power of silicon chips would double
    every 18 months.

20
Trends in Technology (continued)
The Networked Enterprise
  • The Network Computer
  • Optical Networks
  • Storage Area Networks
  • Intranets Extranets
  • The Internet
  • Critical mass threshold

21
MANAGERIAL ISSUES
  • How much IT? This is a critical issue related to
    IT planning. IT does not come free, but not
    having it may be much costlier.
  • How important is IT? In some cases, IT is the
    only approach that can help organizations. As
    time passes, the comparative advantage of IT
    increases.

22
MANAGERIAL ISSUES
  • Ethics and social issues. The implementation of
    IT involves many ethical and social issues that
    are constantly changing due to new developments
    in technologies and environments. These topics
    should be examined any time an IT project is
    undertaken.
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