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

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 This is the most connected generation in history We practice continuous computing We 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. YouTube “Did You Know? 3.0” video (4:56) Facebook – 3rd, Twitter, 6th

Information Systems/Technology – the planning for, development, management, and use of Information Technology tools to help people perform the tasks of information processing and management. Management Information System (MIS) Information Technology (IT) – any computer-based tool used to support needs of an organization Goal: Get the right information to the right people at the right time in the right amount and in the right format.

1.1 Business Processes – 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 Business Process Management – management technique that includes methods and tools to support the design, analysis, implementation, management, and optimization of business processes. Business process has inputs and outputs and can be measured. Measurement types include: customer satisfaction, cost reduction, cycle/fulfillment time, quality, differentiation, productivity. Benefits of BMP include: improved profitability & revenue, decreased costs, competitive advantage

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 – elementary description of things, events, activities and transactions that are recorded, classified and stored but are not organized to convey any specific meaning. Data Item Information – data organized so that they have meaning and value to the recipient. Data: student grade in a class Information: student’s name & GPA (calculated) What to do with this data and/or information?

1.2 Information Systems: Concepts and Definitions – data and/or information organized and processed to convey understanding, experience, accumulated learning and expertise as they apply to a current problem or activity. Knowledge Knowledge: CSB only admits students with a GPA above 2.7

1.2 Information Systems: Concepts and Definitions Data Information Knowledge What are examples of Data? Information? Knowledge? When in an airport??

Information Systems: Concepts and Definitions (continued) – 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 Architecture IT Architecture describes what’s NEEDED by an organization to: - gather and store data - construct, calculate, or organize data into information - manipulate and present information as or for use as knowledge

IT Architecture of Online Travel Agency

Information Systems: Concepts and Definitions (continued) – the physical facilities, IT components, IT services and IT management that support an entire organization. Information Technology Infrastructure IT Infrastructure describes what is CURRENTLY USED and available as - IT Components - IT Personnel - IT Services

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 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 is integration and interdependence of economic, social, cultural, and ecological facets of life, enabled by rapid advances in information technology. 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 3.0 2.0 1.0

1.4 Business Pressures, Organizational Responses, and IT Support Market Pressures Technology Pressures Societal Pressures Business Pressure 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 & Strong Competition The Changing Nature of the Workforce Powerful customers - Emergence of the global, Web-based platform - Increased world trade Increased global competition Cost of Labor IT makes changes much easier to implement GLOBALLY Diversification Ability to work from home/virtually Knowledgeable consumers the Internet

Technology Pressures Technological Innovation and Obsolescence Information Overload New and improved technologies (This is IT!) - laptop replaces typewriter - iPod replaces Walkman / Radio - others? Amount of information on Internet doubles every year Need to access, navigate, interpret and use VAST amounts of data, information, and knowledge Remember goal of IS: Get the right information to the right people at the right time in the right amount and in the right format.

Societal Pressures Social Responsibility Government Regulation and Deregulation Protection Against Terrorist Attacks Ethical Issues - State of the physical environment (garbage island, what happens to waste? Specifically e-waste?) Green IT Digital Divide – gap between those with access to information and communication technology and those who don’t Biometric screening All pressures are increasing IT helps provide controls and information for compliance

Organizational Responses Strategic Systems Customer Focus Make-to-Order and mass customization E-business and E-commerce Strategic Systems provide advantages 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 What business processes can you think of that directly affect you AND use information systems and/or technology? Potential jobs: programmers, business analysts, systems analysts, designers, e- and m- commerce, network security, multimedia. Others you may create yourself or may not exist yet!

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.