1. IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/10/2015 1-1 Steve Jobs, Apple Computer “If we'd given customers what they said they wanted, we'd have built a computer they'd have been happy with a year after we spoke to them—not something they'd want now…” Steve Jobs, Apple Computer Chapter 1 Managing in the Digital World

2. IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/10/2015 Information Systems Today 1-2 The Knowledge Worker  Term coined by Peter Drucker in 1959  An individual who is relatively well educated and who creates, modifies, and/or synthesizes knowledge as a fundamental part of a job Knowledge Society  Digital Divide Knowledge as an asset

3. IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/10/2015 Characteristics of the Digital World 1-3 Globalization Integration of world economies enabled by technology. Made possible by standards Improved by better patent and copyright laws Economic – international trade Cultural – Travel, TV, Movies Technological Global telecom infrastructure

4. IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/10/2015 Information Systems: Definition 1-4 Combination of five key elements:  People  Hardware  Software  Data  Telecommunications networks

5. IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/10/2015 Data: The Root and Purpose of Information Systems 1-5 Distinction between:  Data—raw, unformatted information  Example: 5433333353  Processing – Transformation of data  Information—data that is transformed to have a meaning  Example: (543) 333-3353  Knowledge—body of governing procedures used to organize or manipulate data  Wisdom—accumulated knowledge

6. IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/10/2015 IT: The Components of Information Systems—Technology 1-6 Technology  Machines that supplement or replace human manual labor.  Information Technology  Machine technology controlled by or using information  Computer Based Information System (CBIS) Systems using computers to provide useful data to people Ex. Spreadsheets, databases, web development tools

7. IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/10/2015 Careers in IS 1-7 Career opportunities are strong and expected to grow  Computer/IT analyst and Computer & IS Manager both in the top 10 best jobs for the next decade  Median earnings for managers $102,360 Chief Information Officer (CIO)  AKA – Director of Information Systems  Responsibility – Integrating new technologies into the organization’s business strategy  Innovation leaders  … but, use IS to provide strategic value Systems Analyst – fluent in business and technology  Integration of:  Technical – Hardware, software, networking, & security  Business – Nature of business and managing, people, projects  Systems – Understanding how functions are related to create system processes

8. IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/10/2015 Organizations: The Context of IS 1-8 Many different types of systems are used in organizations (Table 1.6 on page 21)  Examples: Transaction processing systems, decision support systems, intelligent systems, and so on. Melding together  Internetworking – connecting networks of computers  Systems integration (improved decision-making)  Connecting separate information systems and their data OTS or COTS  Off The Shelf or Customized Off the Shelf  Office automation systems  Collaboration systems (Ex. Lotus Notes, MS Exchange)

9. IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/10/2015 Organizing the IS Function 1-9 Early History: Poor Service and Worse Attitudes  Early systems - cumbersome to use, over budget, & late The Rise and Fall of End-User Development  Excel, Access & other end-user tools  Users developed their own applications or improved existing ones  Complex systems designed by professionals The Modern Information Systems Organization  Attitudes changed and service mentality emerged  Help desks, hot lines, FAQs, training centers, documentation  Working together; common goal – Company success

10. IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/10/2015 Other Issues Facing the IS Function 1-10 The spread of technology in organizations  Downsizing (rightsizing) via technology  Streamlining business functions Outsourcing- Routine jobs purchased from 3rd party  Off shoring –or another continent (China, India, Ireland, etc.)  Follow the sun  Near shoring – bordering country (Ex. Mexico, Canada) Career prospects and opportunities  Specialized business (acctg, mktg, finance) & technical skills  Need for people within organizations with analyst skills

11. IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/10/2015 The Dual Nature of IS 1-11 IS can make you or break you Strategic IS can help sustain competitive advantage London Heathrow—The failure  Automated baggage handling system  Original system cost of $500 million  $ 50 million added costs due to problems FedEx—The success  Extensive interconnected shipping system  $ 38 billion family of companies—largest express transportation company  “Information hub for business where managing information is the business”

12. IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/10/2015 Why Information Systems Matter 1-12 Nicholas Carr article— “IT Doesn’t Matter”  IT no longer a source of advantage on the firm level  Companies should focus IT on cost reduction and risk mitigation Many experts disagreed with his arguments  Many successful companies use IT to support a unique business strategy