Chapter 1: The Enabling Role of Information Technology

The Information Age “The emergence of the Information Age and the sudden ubiquity of information technology are among the biggest -- no, they are the biggest -- stories of our time.” Thomas A. Stewart, 1997

Information Technology is ... Computers and Communications Computer technologies for processing, storing, and retrieving information Communications technologies for transmitting and receiving information Includes voicemail, FAX, transaction processing systems, expert systems, desktop videoconferencing, the Internet . . . where the basic underlying technology is the computer

IT Pervasiveness Computer Systems (Chapter 2) Computer Software (Chapter 3) Telecommunications/Networking (Ch. 4) If you were to pick one key aspect for the 1990s, what would it be?

IT Pervasiveness Computer Systems (Chapter 2) -- Microcomputer technology Computer Software (Chapter 3) -- Commercial software packages, including ERP Telecommunications/Networking (Ch. 4) -- The Internet and World Wide Web

Working in the Information Age Knowledge worker -- information and knowledge are the raw materials of his/her work Teamwork -- a new emphasis on collaborative work Anytime, anywhere work

Information Technology as a Strategic Enabler IT provides New Ways to Compete -- enabling lower costs, enabling product/ service differentiation, both of above, leveraging knowledge of employees IT enables New Organizational Forms -- reduced middle management, organize around processes, electronically link dispersed business units and separate companies

New Ways to Compete Cost: being a low cost provider Differentiation: competing on customer perceptions of quality and service -- Example: SABRE reservation system BOTH Cost and Differentiation

New Organizational Forms Small but connected Formal alliances Virtual organizations

Five IT Management Eras Accounting Era -- through early 1960s -- focus on accounting, batch transactions Operational Era -- mid 1960s to mid 1970s -- on-line systems dealing with critical operational transactions Information Era -- late 1970s to early 1980s -- focus on use of information for decision-making -- emergence of end-user computing

Five IT Management Eras (continued) The Wired Society -- mid 1980s to mid 1990s -- development of systems for competitive advantage, often including linkages to customers and suppliers The Global Wired Society -- late 1990s until ? -- using IT, especially the Internet, to link with customers and businesses around the world

What Needs to be Managed? IT assets that need to be managed well in order for IT to play a strategic role: Technology Asset Human Asset Relationship Asset

IT Management Roles IS Managers, including the Chief Information Officer, or CIO IS Professionals, including systems analysts and consultants User-Managers -- the internal customers of the IS organization End-Users -- non-IS specialists who use information technology

Design of the Textbook Part I: The technology asset of the IS organization Part II: Applying these technology assets -- types of IT applications and the issues associated with their use Part III: IT application acquisition Part IV: Effective management of an organization’s IT resources