The Information Systems Revolution Transforming Business and Management

Class Activity Break into groups of four and Introduce yourself to the members of your group and describe yourself to the members of your group Information technology can help companies to… Identify five knowledge- and information-intense products

VW Mexico and the Internet SAP’s ERP system integrated with the web to reduce part ordering time from 10 to 5 days Enabled dealer to use a browser and get order information through an intranet on the worldwide web

VW Mexico and the Internet SAP’s ERP system integrated with the web to reduce part ordering time from 10 to 5 days Enabled dealer to use a browser and get order information through an intranet on the worldwide web

Information Systems… Can help companies to: Extend their reach to faraway locations Offer new products and services Reshape jobs and work flows, and perhaps profoundly change the way they conduct business

Three Powerful Worldwide Changes Globalization Transformation of industrial economies to knowledge and information-based economies Transformation of the enterprise

Globalization Management & Control In A Global Marketplace Competition In World Markets Global Work Groups Global Delivery Systems * 1.5

Globalization Information systems are a powerful ally enabling businesses to Communicate with distributors, suppliers, and customers worldwide Operate 24/7 Serve local and international reporting needs Compete globally by bringing your products and services to a global market

Transformation of Industrial Economies… To knowledge- and information-based service economies. Increase need for white-collar workers Manufacturing has moved to low-wage countries Knew knowledge- and information-intense products

Transformation of Industrial Economies… To knowledge- and information-based service economies. Increase need for white-collar workers Manufacturing has moved to low-wage countries. Knew knowledge- and information-intense products

Transformation of Industrial Economies… To knowledge- and information-based service economies. Increase need for white-collar workers Manufacturing has moved to low-wage countries. For how long? Knew knowledge- and information-intense products

LABOR FORCE COMPOSITION 1900-1996 1.9

Economic Transformation Knowledge-based Economies Productivity New Products & Services Knowledge As An Asset Time-based Competition Shorter Product Life Turbulent Environment Limited Employee Knowledge Base * 1.6

Knowledge- and Information-Intense Products Credit cards Overnight package delivery Worldwide reservation systems

Transformation Of The Enterprise Flattening Decentralization Flexibility Location Independence Low Transaction Costs Empowerment Collaborative Work * 1.7

What is an Information System A set of interrelated components that Collects data - INPUT Transforms data - PROCESS Disseminates information - OUTPUT

SYSTEM INPUT PROCESS OUTPUT FEEDBACK 1.10

ENVIRONMENT FUNCTIONS OF AN INFORMATION SYSTEM Customers Suppliers INPUT OUTPUT PROCESS FEEDBACK INFORMATION SYSTEM ENVIRONMENT Customers Suppliers Regulatory Stockholders Competitors Agencies ORGANIZATION 1.11

What is an information system? An organizational and management solution, based on information technology, to a challenge posed by the environment.

INFORMATION SYSTEMS INFORMATION SYSTEMS ORGANIZATIONS TECHNOLOGY MANAGEMENT

The Key Elements of an Organization People Structure and operating procedures Politics Culture

People Knowledge workers Data workers Production or service workers Product or service designers and knowledge creators Data workers The paper-pushers Production or service workers Producers/service providers

Structure Sales and Marketing Manufacturing Finance Accounting Human Resources

SOCIOTECHNICAL PERSPECTIVE Information systems are sociotechnical systems. Though they are composed of machines devices, and “hard” physical technology, they require substantial social, organizational, and intellectual investment to make them work properly *

APPROACHES TO INFO SYSTEMS TECHNICAL APPROACHES COMPUTER SCIENCE OPERATIONS RESEARCH SOCIOLOGY POLITICAL SCIENCE PSYCHOLOGY MIS MANAGEMENT SCIENCE BEHAVIORAL APPROACHES

Behavioral Approach Focuses on strategic business integration, design, implementation, and utilization Focuses on changes in Attitude Management and organizational policy Behavior

SYSTEM INTERDEPENDENCE BUSINESS Strategy Rules Procedures ORGANIZATION INFORMATION SYSTEM HARDWARE SOFTWARE DATABASE TELE-COMMUNICATIONS INTERDEPENDENCE 1.17

Information System Impacts What a business would like to do in five years is often dependent on what its systems will be able to do Becoming the high-quality or low-cost producer Developing new products Increasing employee productivity

SCOPE OF INFO SYSTEMS GROWING IMPORTANCE * 1950s: TECHNICAL CHANGES 60s-70s: MANAGERIAL CONTROL 80s-90s: INSTITUTIONAL CORE ACTIVITIES GROWING IMPORTANCE * 1.18

Computing Power Doubling every 18 months The performance of the microprocessors have improved 25,000 times since their invention 25 years ago Soaring power has spawned powerful communications networks the largest of which is…

What You Can Do On The Internet Communicate & Collaborate e-mail Access Information Databases Discussions Chats Obtain Information FTP Entertainment Play…, view…, read…, animate… Business Transactions Advertise, sell, and purchase * 1.19

The Number of Internet Users Greater than 250 million today!

New Options For Organizational Design Flattening Organizations Separating Work From Location Increasing Flexibility Refining Organizational Boundaries Reorganizing Work Flows * 1.20

The Changing Management Process Enterprise Resource Planning Electronic Commerce Electronic Business * 1.21

Enterprise Resource Planning Software Integrates All Facets: Planning, Manufacturing, Inventory, Sales, Finance, Accounting Transactions Alert All Involved Factors Updates Files, Speeds Action, Cuts Cost * 1.22

Electronic Commerce Internet Links Buyers, Sellers Lowers Transaction Costs Goods & Services Advertised, Bought, Exchanged Worldwide B2B Transactions Increasing * 1.23

Electronic Business Intranet: Business Builds Private, Secure Network E-mail, Web Documents, Group Software Extends Effective Communication & Control Virtual Organization * 1.24

VIRTUAL ORGANIZATION MANUFACTURING COMPANY DESIGN COMPANY CORE COMPANY SALES & MARKETING COMPANY LOGISTICS COMPANY FINANCE COMPANY 1.25

CHALLENGE OF INFO SYSTEMS STRATEGIC: Maintaining a competitive edge GLOBALIZATION:Integrated systems INFO ARCHITECTURE: Development INVESTMENT: What is the value? RESPONSIBILITY & CONTROL: Ethics * 1.26