The McGraw-Hill Companies, Inc Information Technology & Management Thompson Cats-Baril Chapter 1 Introduction to Information Technology & Management

The McGraw-Hill Companies, Inc Information Technology & Management Thompson Cats-Baril 2 Chapter Objectives To understand how rapid changes in the environment are forcing companies to be more responsive. To appreciate the Interplay between organizational strategy and informational technology capabilities. To understand how information technology is enabling organizations to broaden their perspectives to encompass global goals. To appreciate some of the ethical dilemmas raised through the use of information technology.

The McGraw-Hill Companies, Inc Information Technology & Management Thompson Cats-Baril 3 Introduction What is “Information Technology” Information Technology is the hardware and software that are packaged as a device for capturing, storing, processing, and outputting digital content.

The McGraw-Hill Companies, Inc Information Technology & Management Thompson Cats-Baril 4 Information Technology Information technology Continues to advance at a rapid pace Rate of advancement has slowed, doubling every 18 to 24 months Has played a substantial role in most organizations Has altered the concept of time and distance May have implications for managers May potentially impact society

The McGraw-Hill Companies, Inc Information Technology & Management Thompson Cats-Baril 5 Components of an Information System The purpose of an information system is to accomplish a task utilizing information technology Content --The data, graphics, sound, images, and video that are processed by information technology.

The McGraw-Hill Companies, Inc Information Technology & Management Thompson Cats-Baril 6 Communication Technologies Optional, but common to most Information Systems Are specialized Information Technology Subset of Information Technology used for transmitting content between devices over a distance.

The McGraw-Hill Companies, Inc Information Technology & Management Thompson Cats-Baril 7 Components of an Information System Purpose Information Technology Content Communication Technology Roles Procedures

The McGraw-Hill Companies, Inc Information Technology & Management Thompson Cats-Baril 8 Roles -- People interact with I/S in a variety of ways, including acting as user or developer. It is possible to have a system that does not require people (fully automated system) Procedures -- The instructions for users of an I/S; how the user role interacts with the I/T Components of an Information System

The McGraw-Hill Companies, Inc Information Technology & Management Thompson Cats-Baril 9 Information Technology Issues Advances in information technology are measured based on performance criteria Potential performance criteria for a given price level are: –Storage capacity –Data access speed –Data transfer rate

The McGraw-Hill Companies, Inc Information Technology & Management Thompson Cats-Baril 10 Computer and Processing Capacity Computer Capacity and Processing Capacity refer to the load that a computer system can manage. –Web site capacity issues How many user may access the site How much content is being requested by each user

The McGraw-Hill Companies, Inc Information Technology & Management Thompson Cats-Baril 11 Disruptive Technology A disruptive technology is an advancement in technology that was not expected to have an impact on the existing technology, but eventually surpasses the existing technology rendering it obsolete. –Examples include MP3, which is a format for digitizing music. The MP3 is commonly associated with file sharing on the internet. –MP3 was a potential disruptive technology to the music industry. Holographic data storage systems –Use a variety of technique

The McGraw-Hill Companies, Inc Information Technology & Management Thompson Cats-Baril 12 Wireless Technologies Telecommunications is a major area of technological advancement –Wireline Copper Telephone lines Fiber optic –Wireless Satellite Radio frequency More people have wireless devices than wired ones.

The McGraw-Hill Companies, Inc Information Technology & Management Thompson Cats-Baril 13 Wireless Technologies WAP, wireless application protocol is a standard for accessing the content on the Internet using wireless devices. 20% of the worlds population will have mobile devices by Many applications for wireless devices were originally targeted at consumers. Benefits of the mobile Internet are significant for most organizations.

The McGraw-Hill Companies, Inc Information Technology & Management Thompson Cats-Baril 14 IT Infrastructure The term information technology infrastructure is used to describe the combination of computers, networks, and software applications used to process and distribute information. Information technology can have wide ranging influences on organizations and individuals.

The McGraw-Hill Companies, Inc Information Technology & Management Thompson Cats-Baril 15 Music Industry Traditional Distribution channel –Music retailers, Rack jobbers, Music clubs, Direct Marketers Digitized music transmitted over the Internet –MP3 –Napster Stakeholders –Recording Artists Coalition –National Association of Recording Merchandisers –SDMI, Secure Digital Music Initiative

The McGraw-Hill Companies, Inc Information Technology & Management Thompson Cats-Baril 16 Organizational Responsiveness Organizational responsiveness implies being aware of environmental changes and doing something about them. –Organizational environment is turbulent –Organizations need to be responsive to critical elements Customers Suppliers Competitors Governing agencies and regulations

The McGraw-Hill Companies, Inc Information Technology & Management Thompson Cats-Baril 17 Competitive Strategy A Business Model is how a specific business is able to capture and retain monetary value. Business strategies are developed and implemented to ensure that the business can compete effectively. A competitive analysis is used to determine how well positioned the company is and how likely they are to succeed.

The McGraw-Hill Companies, Inc Information Technology & Management Thompson Cats-Baril 18 Global Perspective Many organizations are expanding their operations beyond national borders. Organizations do not have to a “head office” located in any one country. Information technology allows for communications and information dissemination. Networks and communications allow information to move around the globe unimpeded.

The McGraw-Hill Companies, Inc Information Technology & Management Thompson Cats-Baril 19 Ethical Issues IT has a tremendous impact on the issues surrounding the rights of the individual versus the rights of the organization. –Computerized monitoring –Individuals right to privacy –Intellectual property

The McGraw-Hill Companies, Inc Information Technology & Management Thompson Cats-Baril 20 ITs Impact on Careers Organizations no longer pay people to simply oversee others and pass along information. Information technology has impacted many jobs and created new ones. –CAD/CAM –Chief Privacy Officer –Lobbyist