The Modern Organization Functioning in a Global Environment Class 1 Dr. Zakariya Belkhamza

LEARNING OBJECTIVES Describe business processes and discuss business process management 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

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.

1.1 Business Processes Business Process Business Process Management A business process is a collection of related activities that produce a product or a service of value to the organization, its business partners, and/or its customers. Business process management is a management technique that includes methods and tools to support the design, analysis, implementation, management, and optimization of business processes.

Example of Business Process (Figure 1.1) The next slide shows an example of a business process: Ordering an E-ticket from an airline Web site

Frequent Flyer Mileage Sufficient? Receive Ticket Order Traveler Airline Web Site Seats Available NO Notify Traveler Plan Trip YES Reserve Seats Check Flights NO Frequent Flyer Mileage Sufficient? Use Credit Card? NO Seats Available? NO YES YES Charge Credit Card YES Subtract Mileage Submit Ticket Order Charge OK? NO Notify Traveler Receive e-Ticket YES Confirm Flight(s) Issue e-Ticket

1.2 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.

1.3 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 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 This is the latest video in the “Did You Know” series.

1.4 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

Technology Pressures Technological Innovation and Obsolescence Information Overload

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

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.

1.5 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.

1.6 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