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

CHAPTER OUTLINE 1.1 Business Processes and Business Process Management 1.2 Information Systems: Concepts and Definitions 1.3 The Global, Web-Based Platform 1.4 Business Pressures, Organizational Responses, and IT Support 1.5 Why Are Information Systems Important to You? 1.6 The Plan of the Book

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

Chapter Opening Case Moai on Rapa Nui

Homo Conexus You are the most connected generation in history You practice continuous computing You are surrounded by a personal, movable information network

Personal movable information network And…..laptop in briefcase!

1.1 Business Processes Business Process Business Process Management

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

Information Systems: Concepts and Definitions (continued) Information Technology Architecture Information Technology Infrastructure

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 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)

Globalization 1.0 Christopher Columbus

Globalization 2.0 (first half) Railroads Steam engine

Globalization 2.0 (second half) Satellites Fiber optics OpenMoko open source smart phone Netbook

Globalization 3.0 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

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.

1.4 Business Pressures, Organizational Responses, and IT Support Market Pressures Technology Pressures Societal Pressures

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 Innovation: Early calculator Obsolescence: Slide Rule Innovation: Telegraph Obsolescence: Pony Express Innovation: iPod nano Obsolescence: old phonograph Innovation: digital camera Obsolescence: old analog camera Innovation: “Credit card” digital camera Innovation: Ford Model T Obsolescence: Horse and Buggy Innovation: Notebook computer with word processing software Obsolescence: Manual typewriter

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

Green IT

Social Responsibility Bridging the digital divide: One laptop per child initiative Internet over satellite in developing nations Youth computer club in Cuba

Microlenders (IT’s About Business 1.2)

Organizational Responses Strategic Systems Customer Focus Make-to-Order and mass customization E-business and 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

Build Your Own Multinational (IT’s About Business 1.4)

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