CHAPTER ONE INFORMATION SYSTEMS IN GLOBAL BUSINESS TODAY

Latest Trends (Technology) Mobile and mobile commerce For consumers, there is an app for everything For business, the mobile device becomes part of the corporate platform Use of big data for analytics Targeted advertising Health care Cloud computing Off presence / scalable compute power

Latest Trends (Management) Collaboration tools Go To Meeting / SharePoint / IBM (Lotus) Notes / … Business intelligence through near real time analytics

Latest Trends (Organizational) Social networking and groups are part of the organizational structure Telework and project work We are not just employees anymore Collaboration between us and suppliers and customer Boing 787 design Trans border processes

Friedman’s Trend The world is flat (Thomas Friedman) He describes 10 flattening forces I’ll mention those related to IT Netscape broadens the Internet’s reach Workflow software (ERPS) Supply-chaining Outsourcing supports more efficient production OpenSource

Disruptive Technology (1) A new technology that changes the accepted way of doing things Digital cameras disrupted Kodak (Film is but a niche market)

Disruptive Technology (2) The Web and online travel reservations disrupted travel agents Online stock trading disrupted the full-service stock broker Nobody carries change in a casino Netflix is disrupting media distribution Your phone disrupted the iPod (and the digital camera)

Sustaining Technology Using technology to improve a product or service Faster and larger phones Improvements in your bank’s Web site Faster wireless A bigger screen

The Socio-technical Trend (then) IT used to be in the domain of operations research (supply chain) Better inventory and production management And management science Forecasting (sales, production, procurement, etc… The focus was technical

The Socio-technical Trend (Now) Behavioral and cognitive sciences have entered the IT domain Psychology What causes people to use and accept technology? Sociology How does culture affect technology use and adoption?

UPS – An Example Synchronizing the World of commerce About 16.0 million packages per day in 2015 generating $51.5 billion in revenue for the year 101,000 vehicles 5620 Aircraft (14 hubs)

UPS Technology SCM Technology contributed over 9 Billion in revenue in 2012 Current technology investment is about 1.6 billion

Common IT Goals (1) Reduce costs Online transactions and statements Online content management Improve customer satisfaction Self-service applications and CRM Develop customer loyalty Rewards and loyalty programs Interactive marketing

Common IT Goals (2) Create a competitive advantage Amazon’s recommendations UPS shipment tracking Possess competitive intelligence Streamline and improve the supply chain Electronic data interchange Just-in-time production Growth in new and existing markets Clicks and bricks

Information Technology Defined The field concerned with managing information is called information technology Management information systems are a business function just as marketing is a business function

Information Technology (Terms) Data are raw facts A transaction, bank deposit, etc. Information is produced from raw data To be useful, information must be put in the hands of the person that needs it Information must appear in a useful form Timely, relevant, ACTIONABLE

Information System Functions (distilled) We take inputs from one or many sources We process them in some way To produce some output

Information Technology (Terms) Business intelligence refers to using technology to make better (fact based) decisions Involves the use of complex analytical tools More later in the business intelligence chapter

Information Technology (Terms) Knowledge refers to the experience and expertise of individuals and organization

Common Organizational Units Accounting Finance HR Sales and marketing Operations management Supply chain management Management information systems

Management Information Systems and the Organization Information must be shared and processed across functional units as business processes Sales quotation (vendor) (Marketing) Purchase order (customer) Shipping documents (vendor) (SCM) Invoice (vendor) (Accounting) Payment (customer)

IT Roles (History) Historically, IT was viewed as a necessary evil IT did not make a profit or contribute to an organization’s bottom line IT was just a cost center IT was not a strategic part of the organization In some cases IT has evolved into a profit center

IT Roles Strategic-level IT positions are becoming commonplace Chief Information Officer Chief Technology Officer Chief Knowledge Officer Chief Data Officer Chief Security Officer

Organizational Cultures and IT Information Discovery Seek radical new ways to do business Information Inquiring Understand trends and align business with them Information Sharing These cultures are not mutually exclusive Dysfunctional organizations?

The IT Dilemma IT must understand user and business needs Many failed IT projects are caused by human and organizational factors rather than technical factors Hershey (ERP) United’s baggage system at DIA

Success Metrics for IT Executives