McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, All Rights Reserved Chapter 19 Developing a 21 st Century Organization

19-2 Learning Outcomes 19.1List and describe the four 21st century trends that businesses are focusing on and rank them in order of business importance 19.2 Explain how the integration of business and technology is shaping 21st century organizations

19-3 Developing Organizations 21 ST century organizations must: –Recognize the immense power of technology –Carry out required organizational changes –Learn to operate in an entirely different way

19-4 Developing Organizations Industries that have changed due to technology –Travel –Entertainment –Electronics –Financial services –Retail –Automobiles –Education and training

st Century Organizational Trends 21 st century business trends include: –Uncertainty in terms of future business scenarios and economic outlooks –Emphasis on strategic analysis for cost reduction and productivity enhancements –Focus on improved business resiliency via the applications of enhanced security

st Century Organizational Trends Four technology areas where organizations are focusing: 1.IT infrastructures 2.Security 3.E-business 4.Integrations

19-7 Increased Focus on IT Infrastructures IT infrastructure – the hardware, software, and telecommunications equipment that, when combined, provide the underlying foundation to support the organization's goals

19-8 Increased Focus on Security Physical security integration and best security practices

19-9 Increased Focus on E-Business New e-business trends include: –Mobile commerce – the ability to purchase goods and services through a wireless Internet-enabled device –Telematics – blending computers and wireless telecommunications technologies with the goal of efficiently conveying information over vast networks to improve business operations –Electronic tagging – a technique for identifying and tracking assets and individuals –Radio frequency identification (RFID) – chips or smart labels that can store unique identifiers and relay this information to electronic readers

19-10 Increased Focus on Integration The integration of business and technology

19-11 Increased Focus on Integration Overall, core business relationships and models are changing –Product-centricity to customer-centricity –Mass production to mass customization –The value in material things to the value of knowledge and intelligence

19-12 Increased Focus on Integration A new series of business success factors and challenges are emerging –Organization agility –Focus on core competencies and processes –Redefinition of the value chain –Instantaneous business response –Ability to scale resources and infrastructure across geographic boundaries

19-13 Increased Focus on Integration Never before have IT investments played such a critical role in business success As business strategies continue to evolve, the distinction between “the business” and “IT” will virtually disappear

19-14 CHAPTER NINETEEN Opening Case Study Questions 1.How might a hospital define its IT infrastructure when developing its 21st century strategy? 2.How might a hospital define security when developing its 21st century strategy? 3.How might a hospital define its e-business infrastructure when developing its 21st century strategy? 4.How might a hospital define its integrations when developing its 21st century strategy?

19-15 CHAPTER NINETEEN CASE Creating a Clearer Picture for PBS Andre Mendes, Chief Technology Integration Officer (CTIO) for PBS, oversees the company’s technology organization, a 50-person group PBS IT projects are getting bigger and bigger, with more and more collaboration, with a more global picture The broadcast environment is becoming an IT environment as the company uncovers new ways to improve quality of service and increase opportunities for innovation through new digitized formats

19-16 Chapter Nineteen Case Questions 1.Assess the impact to PBS’s business if it failed to focus on IT infrastructure when determining its 21st century business strategy 2.Assess the impact to PBS’s business if it failed to focus on security when determining its 21st century business strategy 3.Assess the impact to PBS’s business if it failed to focus on e-business when determining its 21st century business strategy 4.Assess the impact to PBS’s business if it failed to focus on integrations when determining its 21st century business strategy

McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, All Rights Reserved BUSINESS DRIVEN TECHNOLOGY UNIT FIVE CLOSING

19-18 UNIT CLOSING CASE ONE RFID – Future Tracking 1.What are some advantages and disadvantages of tagging students with RFID tags? 2.What are some advantages and disadvantages of tagging children’s pajamas with RFID tags? 3.Do you agree or disagree that tagging students with RFID tags is a violation of privacy rights? Explain why

19-19 UNIT CLOSING CASE ONE RFID – Future Tracking 4.Do you agree or disagree that tagging children’s pajamas with RFID tags is a violation of privacy rights? Explain why 5.Describe the relationship between privacy rights and RFID 6.Determine a way that schools could use RFID tags without violating privacy rights

19-20 UNIT CLOSING CASE TWO Mastering Innovation 1.Which one of the seven companies has the most disruptive technology that is capable of making the greatest impact on business? 2.How has Amazon used technology to change the bookselling industry in the 21st century? 3.Choose one of the seven companies and create a Porter’s Five Forces analysis to highlight potential issues the company might face in the 21st century 4.List and describe the seven phases in the systems development life cycle and determine which phase is most important to Cisco when it is developing software

19-21 UNIT CLOSING CASE TWO Mastering Innovation 5.Review the primary principles of successful software development and prioritize them in order of importance for Sony 6.Why is building agile software important for all seven companies? 7.What potential systems might Dell want to outsource? 8.Discuss the pitfalls Wal-Mart might encounter if it decided to outsource its SCM system