1-1 Chapter 1 THE INFORMATION AGE IN WHICH YOU LIVE Changing the Face of Business

1-2 Chapter 1 Overview Today’s Economic Environment Today’s Economic Environment Information as a Key Resource Information as a Key Resource People as a Key Resource People as a Key Resource Information Technology as a Key Resource Information Technology as a Key Resource Roles and Goals of Information Technology Roles and Goals of Information Technology

1-3 Opening Case Study Can Technology Catch You Having An Affair? Technology is pervasive, and often invasive. Technology is pervasive, and often invasive. How can technology be inadvertently used for “good” and “bad” purposes? How can technology be inadvertently used for “good” and “bad” purposes?

1-4 Information age – a time when knowledge and information are pervasive. Information age – a time when knowledge and information are pervasive. Knowledge worker – works with and produces information as a product. Knowledge worker – works with and produces information as a product. Management information systems (MIS) – deal with the planning for, development, management, and use of information technology tools to help people perform information processing and management tasks. Management information systems (MIS) – deal with the planning for, development, management, and use of information technology tools to help people perform information processing and management tasks. Introduction

1-5 Today’s Economic Environment The E.conomy Electronic commerce Electronic commerce Telecommuting Telecommuting Virtual workplace Virtual workplace % of Sites that Plan to Add Telecommuting

1-6 Today’s Economic Environment The “Now” Economy Requires immediate access. Requires immediate access. M-commerce – conducting e- commerce with a wireless device. M-commerce – conducting e- commerce with a wireless device. Team Work I Want It! (p. 7)

1-7 Today’s Economic Environment The Global Economy Global economy Global economy Transnational firms Transnational firms

1-8 Today’s Economic Environment The Arriving Digital Economy Digital economy – marked by the electronic movement of all types of information including physiological information such as: Digital economy – marked by the electronic movement of all types of information including physiological information such as:  Voice recognition  Synthesization  Biometrics  Holograms

1-9 Information as a Key Resource Data Versus Information Data – raw facts that describe a particular phenomenon. Data – raw facts that describe a particular phenomenon. Information – data that have a particular meaning within a specific context. Information – data that have a particular meaning within a specific context.

1-10 Information as a Key Resource Personal Dimensions of Information The three personal dimensions of information include: The three personal dimensions of information include:  Time  Location  Form

1-11 Information as a Key Resource Organizational Dimensions of Information Strategic management Strategic management Tactical management Tactical management Operational management Operational management Nonmanagement employees Nonmanagement employees

1-12 Information as a Key Resource Organizational Dimensions of Information Information flows Information flows  Upward  Downward  Horizontal  Outward Information granularity Information granularity Information describes: internal, external, objective, and subjective. Information describes: internal, external, objective, and subjective.

1-13 People as a Key Resource Information and Technology Literacy Technology-literate knowledge worker – a person who knows how and when to apply technology. Technology-literate knowledge worker – a person who knows how and when to apply technology. Information-literate knowledge workers: Information-literate knowledge workers:  Define what information they need.  Know how and where to obtain information.  Understand the information.  Act appropriately based on the information.

1-14 People as a Key Resource Your Ethical Responsibilities Ethics – principals and standards. Ethics – principals and standards. Ethics are different from laws. Ethics are different from laws. Ethics have a right and wrong outcome according to different people. Ethics have a right and wrong outcome according to different people. On Your Own Electronic Mail or Expensive Mail? (p. 16)

1-15 Information Technology as a Key Resource Information technology – any computer- based tool. Information technology – any computer- based tool. Hardware (physical devices) Hardware (physical devices)  Includes input devices, output devices, storage devices, CPU, RAM, telecommunications devices, and connecting devices. Software (instructions) Software (instructions)  Includes application, operating system, and utilities.

1-16 IT as a Key Resource Decentralized Computing and Shared Information Decentralized computing Decentralized computing Shared information Shared information On Your Own Identifying Hardware And Software (p. 19)

1-17 Roles and Goals of Information Technology 1.Increase employee productivity 2.Enhance decision making 3.Improve team collaboration 4.Create business partnerships and alliances 5.Enable global reach 6.Facilitate organizational transformation

1-18 Roles and Goals of IT 1 - Increase Employee Productivity Online transaction processing (OLTP) – Gathers, processes, and updates information. Online transaction processing (OLTP) – Gathers, processes, and updates information. Transaction processing system (TPS) – processes transactions. Transaction processing system (TPS) – processes transactions. Customer-integrated system (CIS) – Places technology in the customer’s hands. Customer-integrated system (CIS) – Places technology in the customer’s hands.

1-19 Roles and Goals of IT 2 - Enhance Decision Making Online analytical processing (OLAP) – the manipulation of information for decision making. Online analytical processing (OLAP) – the manipulation of information for decision making. Artificial intelligence – making machines imitate human thinking and behavior. Artificial intelligence – making machines imitate human thinking and behavior. Neural network – capable of finding and differentiating patterns. Neural network – capable of finding and differentiating patterns.

1-20 Roles and Goals of IT 2 - Enhance Decision Making Executive information system (EIS) –views highly summarized information and detailed information. Executive information system (EIS) –views highly summarized information and detailed information.

1-21 Roles and Goals of IT 3 - Improve Team Collaboration Collaboration system – supports the sharing and flow of information. Collaboration system – supports the sharing and flow of information. Groupware – supports the collaborative efforts of a team. Groupware contains support for: Groupware – supports the collaborative efforts of a team. Groupware contains support for:  Team dynamics  Document management Group document database Group document database  Applications development

1-22 Roles and Goals of IT 4 - Create Business Partnerships and Alliances Interorganizational system (IOS) – automates the flow of information between organizations. Interorganizational system (IOS) – automates the flow of information between organizations. Electronic data interchange (EDI) – the direct computer-to- computer transfer of information. Electronic data interchange (EDI) – the direct computer-to- computer transfer of information. Team Work Finding Business Partners and Alliances on The Web (p. 26)

1-23 Roles and Goals of IT 5 - Enable Global Reach Business today is global business. Business today is global business. Culture – the collective personality of a nation or society, encompassing language, traditions, currency, religion, history, music, and acceptable behavior, among other things. Culture – the collective personality of a nation or society, encompassing language, traditions, currency, religion, history, music, and acceptable behavior, among other things.

1-24 Roles and Goals of IT 6 - Facilitate Organizational Transformation Organizational transformation is necessary to respond to the ever-changing needs (and wants) of today’s marketplace. Organizational transformation is necessary to respond to the ever-changing needs (and wants) of today’s marketplace. Blockbuster now provides movies on a pay-per-view rental basis through cable. Blockbuster now provides movies on a pay-per-view rental basis through cable.

1-25 Closing Case Studies You and Your Information You and Your Information  Trust and accuracy of information is important.  Do you trust organizations with your information? How much of Your Personal Information Do You Want Businesses to Know? How much of Your Personal Information Do You Want Businesses to Know?  Businesses need information to provide quality.  How much of your information should businesses know?

1-26 RealHot E-Commerce Topics at Job databases Job databases Electronic resumes Electronic resumes Searching newspapers for job ads Searching newspapers for job ads Locating internships Locating internships Interviewing and negotiating tips Interviewing and negotiating tips Organization sites and job postings Organization sites and job postings Employment opportunities with the government Employment opportunities with the government