The Modern Organization in the Global, Web-Based Environment CHAPTER 1 The Modern Organization in the Global, Web-Based Environment

CHAPTER OUTLINE 1.1 Information Systems: Concepts and Definitions 1.2 The Global, Web-Based Platform 1.3 Business Pressures, Organizational Responses, and IT Support 1.4 Why Are Information Systems Important to You? 1.5 The Plan of the Book

LEARNING OBJECTIVES Differentiate among data, information, and knowledge Differentiate between information technology infrastructure and information technology architecture

LEARNING OBJECTIVES (continued) Describe the global business environment and the new information technology infrastructure Discuss the relationships among business pressures, organizational responses, and information systems

Chapter Opening Case Google servers in a server farm Google Headquarters

Homo Conexus You are the most connected generation in history You practice continuous computing You are surrounded by a personal, movable information network Your personal information network is created by constant cooperation between: the digital devices you carry; the wired and wireless networks that you access as you move about; Web-based tools for finding information and communicating and collaborating with other people. You can pull information from the Web and push your ideas back to the Web.

Personal movable information network And…..laptop in briefcase! Note: ** Cell phone in ear ** Multifunction watch on wrist ** Heart and respiration monitor on arm ** Laptop in briefcase

1.1 Information Systems: Concepts and Definitions Data Item Information Knowledge Data Item. Elementary description of things, events, activities and transactions that are recorded, classified and stored but are not organized to convey any specific meaning. Information. Data organized so that they have meaning and value to the recipient. Knowledge. Data and/or information organized and processed to convey understanding, experience, accumulated learning and expertise as they apply to a current problem or activity.

Information Systems: Concepts and Definitions (continued) Information Technology Architecture Information Technology Infrastructure Information Technology Architecture. A high-level map or plan of the information assets in an organization, which guides current operations and is a blueprint for future directions. Information Technology Infrastructure. The physical facilities, IT components, IT services and IT management that support an entire organization.

IT Architecture of Online Travel Agency

IT Components, IT Platform, IT Services, and IT Infrastructure IT components consist of hardware, software, telecommunications and networks, and wireless communications. IT services consist of data management, managing security and risk, and systems development. IT personnel use IT components to produce IT services. IT components are basically synonymous with the IT platform. IT infrastructure consists of IT components, IT personnel, and IT services.

1.2 The Global, Web-Based Platform Best represented by the Internet and the World Wide Web Enables us to connect, compute, communicate, collaborate, and compete everywhere and anytime Operates without regard to geography, time, distance, and language

The Global, Web-Based Platform The cloud in this figure represents the Internet. Various companies’ data centers are connected to the Internet. When you make a query to Google, Yahoo, or Amazon (for example), your request travels over the Internet to one of their data centers. As many servers as are needed are brought to bear answering your query. The response is then sent back to you.

The Stages of Globalization (From Thomas Friedman in The World is Flat) Globalization 1.0 (from 1492 to 1800) Globalization 2.0 (from 1800 to 2000) Globalization 3.0 (from 2000 to the present) For my notes on Friedman’s Flatteners, see: http://www.auburn.edu/~rainerk/world_is_flat.html Globalization 1.0 * 1492 to 1800 * World went from large to medium-size * All about countries and muscles * Key agents of change: brawn and horsepower Globalization 2.0 * 1800 to 2000 * World has shrunk from medium to small-size * Key agent of change: multinational companies * First half: global integration powered by falling transportation costs (steam engine and railroad) * Second half: global integration powered by falling telecommunications costs (telephone, PC, satellites, fiber-optic cable) Globalization 3.0 * 2000 – now * World is now tiny (everyone is everyone else’s close neighbor) * Competitive playing field is being leveled * Key agent of change: software, in conjunction with the global fiber-optic network * Enabling people to collaborate and compete globally

Globalization 1.0 Christopher Columbus Christopher Columbus “discovering” the New World in 1492.

Globalization 2.0 (first half) Railroads Global integration during the first half of Globalization 2.0 was driven by falling transportation costs (for example, steam engine and the railroads). Steam engine

Globalization 2.0 (second half) Satellites Fiber optics Global integration during the second half of Globalization 2.0 was driven by falling communications costs (e.g., satellites, fiber optics, the personal computer, and wireless smart phones). OpenMoko open source smart phone Apple Mac Pro

Globalization 3.0 Key agent of change: software, in conjunction with the global fiber-optic network enabling people to collaborate and compete globally 3.0 2.0 1.0

Globalization 3.0 (continued) Schematic Map of the Internet

Thomas Friedman’s Ten Flatteners Fall of the Berlin Wall Netscape goes public Development of work-flow software Uploading Outsourcing Offshoring Supply Chaining Insourcing Informing The Steroids We look at each flattener in the following slides.

Fall of the Berlin Wall

Rise of the European Union (a consequence of the Fall of the Berlin Wall)

Netscape Goes Public Marc Andreessen (wrote Mosaic browser and Netscape browser)

Workflow Software This image is an interesting juxtaposition of the old assembly line (on the right) and the integrated circuits of work-flow software (on the left).

Uploading Clicking on the Blogger, Wikipedia, or YouTube logos on this slide will take you to their respective home pages.

The Open Source Movement (essential ingredient of uploading) Apache Web server Clicking on the Linux logo takes you to the “Linux Headquarters” home page. Linux

The Open Source Movement (continued) Firefox Thunderbird The Mozilla Foundation has shifted its focus to its Firefox Web browser and Thunderbird e-mail package. Mozilla

The SeaMonkey Project Formerly the Mozilla Application Suite The SeaMonkey Project is a community effort to deliver production-quality releases of code derived from the application formerly known as "Mozilla Application Suite". The SeaMonkey Project has released its “all-in-one” Internet application suite, which contains a Web browser, e-mail and newsgroup client, IRC chat client, and HTML editing.

Outsourcing Outsourcing gained momentum and “took off” with Year 2000 (Y2K) problem

Offshoring Call center in India

Supply Chaining

Insourcing

Informing It’s not just There are MANY other interesting search engines as we see in Chapter 5

The Steroids Digital Mobile Virtual Personal Digital: all analog content and processes are being digitized Mobile: thanks to wireless technologies, computing, connecting, collaborating can be done anywhere Virtual: the process of shaping, manipulating, and transmitting digitized content can be done at very high speeds, so that users do not have to think about these processes Personal: Individuals can perform all these processes on their own computing devices

First Steroid: Computing (processing) TO Ultramobile personal computer Charles Babbage’s Difference Engine (1822)

Computing (continued – storage) Sony Micro Vault Thumb Drive Capacity: 2 gigabytes First disk storage unit by IBM (1956) Capacity: 5 megabytes Size: Refrigerator

Second Steroid: Instant Messaging and File Sharing Instant messaging (example) File sharing (example)

Third Steroid: Voice over Internet Protocol

Fourth Steroid: Videoconferencing This slide shows a telepresence system. A telepresence system is a sophisticated, high-bandwidth videoconferencing system with very large, high-definition screens and directional microphones. The objective is to make participants feel that they are in the same room. A telepresence system in a conference room

Videoconferencing (continued) An individual telepresence system

Videoconferencing and Medicine New Zealand used Polycom, a leading vendor of telepresence systems, to provide a telemedicine application for children. The telemedicine link will show a video of the New Zealand application. Clicking on the Polycom logo will take you to its homepage.

Fifth Steroid: Computer Graphics

Sixth Steroid: Wireless Technologies Using cell phone in motion Geostationary satellite Bluetooth phone sunglasses

The Great Convergence We are in a convergence of three powerful, technological forces: (1) Cheap and ubiquitous computing devices (2) Low-cost, high bandwidth (3) Open standards

The Great Convergence (continued) In essence, we have computing everywhere and anywhere, anytime and all the time, with access to limitless amounts of information, services, and entertainment.

The Great Convergence (continued) We have the creation of a global, Web-enabled playing field that allows for multiple forms of collaboration – the sharing of knowledge and work – in real time, without regard to geography, distance, or, in the near future, even language. The field now includes some 3 billion new people, formerly digitally disenfranchised.

And the result of all this? See the Power of Technology

1.3 Business Pressures, Organizational Responses, and IT Support Market Pressures Technology Pressures Societal Pressures Business Pressure - The business environment is the combination of social, legal, economic, physical, and political factors that affect business activities. Significant changes in any of these factor are likely to create business pressure on the organization. The three types of business pressures faced are: market, technology, and societal pressures.

Business Pressures, Organizational Responses, and IT Support

Market Pressures The Global Economy and Strong Competition The Changing Nature of the Workforce Powerful Customers

Technology Pressures Technological Innovation and Obsolescence Information Overload

Technological Innovation and Obsolescence Obsolescence: Slide Rule Innovation: Early calculator

Technological Innovation and Obsolescence (continued) Innovation: Telegraph Obsolescence: Pony Express

Technological Innovation and Obsolescence (continued) Innovation: iPod nano Obsolescence: old phonograph

Technological Innovation and Obsolescence (continued) Innovation: digital camera Innovation: “Credit card” digital camera Obsolescence: old analog camera

Technological Innovation and Obsolescence (continued) Horse and Buggy Innovation: Ford Model T

Technological Innovation and Obsolescence (continued) Obsolescence: Manual typewriter Your students can think of other technologies that have been obliterated by innovations. Innovation: Notebook computer with word processing software

Information Overload

Societal Pressures Social Responsibility Government Regulation and Deregulation Protection Against Terrorist Attacks Ethical Issues

Social Responsibility One Laptop per Child initiative Bridging the Digital Divide

Social Responsibility (continued) Bridging the Digital Divide with large satellite dish in rural hamlet Internet over satellite in developing nations

Social Responsibility (continued) Bridging the Digital Divide Getting the satellite dish to the rural hamlet * Interesting juxtaposition of Agricultural Age and Information Age

Social Responsibility (continued) Youth Computer Club in Cuba Bridging the Digital Divide with a Cuban Youth Computer Club

Social Responsibility (continued) Cuban Youth Computer Club mobile unit The Cuban Youth Computer Club on wheels

Organizational Responses Strategic Systems Customer Focus Make-to-Order and mass customization See Reebok See Bodymetrics video E-business and E-commerce Strategic Systems provide advantages that enable organizations to increase market share and/or profits, to better negotiate with suppliers, or prevent competitors from entering their markets. Customer Focus is the difference between attracting and keeping customers by providing superb customer service to losing them to competitors. Make-to-Order is a strategy of producing customized products and services. Mass Customization is producing a large quantity of items, but customizing them to fit the desire of each customer. Reebok and Bodymetrics provide excellent examples of mass customization. E-business and E-commerce: Buying and selling products and services electronically. E-business is a broader concept than e-commerce.

1.4 Why Are Information Systems Important to You? Information systems and information technologies are integral to your lives Information systems offer career opportunities Information systems are used by all functional areas in an organization

Misinformation about Information Systems Career Opportunities Myth #1: There are no computing jobs. Myth #2: There will be no IT jobs when I graduate. Myth #3: All IT-related jobs are moving offshore. Myth #4: IT salaries are lower due to cheap overseas labor.

1.5 The Plan of This Book The major objective of this book is to help you understand the roles of information technologies in today’s digital organizations. The book is designed to help you think strategically about information systems The book demonstrates how IT supports all of the functional areas of the organization Each chapter introduces a major topic in Information Technology

Chapter Closing Case