1. 1 MANAGING THE DIGITAL FIRM: CANADA AND BEYOND CANADA AND BEYOND CHAPTER 1

2. 2 Why Information Systems? Organizations need IS to survive and prosper New challenges in the Competitive environment –Emergence of the global economy –Transformation of industrial economies –Transformation of the enterprise –Emergence of the digital firm

3. 3 What is an Information System? A set of interrelated components that –collect (or retrieve), –process, –store, and –distribute information to support decision-making and control in an organization.

4. 4 DATA vs. INFORMATION Raw facts Represent events E.g. sales from a cash register Organized data Meaningful to people E.g. sales trends, comparison of brands

5. 5 Four activities in an IS 1. INPUT2.PROCESSING 3.OUTPUT 4. FEEDBACK

6. 6 A Business Perspective on IS Info Systems ORGANIZATIONSTECHNOLOGY MANAGEMENT

7. 7 Literacy Components Computer Literacy –Knowledge of technical dimensions (IT) Information Systems Literacy –Broad understanding of computer-based IS –Encompasses management & organizational dimensions –Includes technical dimensions (IT)

8. 8 Approaches to IS Technical Approach –Emphasizes mathematically based models to study IS Behavioural Approach

9. 9 Two Approaches to IS SOCIOLOGY ECONOMICS PSYCHOLOGY COMPUTERSCIENCE OPERATIONSRESEARCH MANAGEMENTSCIENCE TECHNICAL APPROACHES MIS BEHAVIOURAL APPROACHES

10. 10 The Preferred Approach to IS IS performance is optimized when both the organization and the technology adjust to each other, until a good fit is obtained The Sociotechnical Approach:

11. 11 The Impact of the Internet Communicate & Collaborate Access Information Participate in Discussions Supply Information Find Entertainment Exchange Business Transactions

12. 12 Digital Organizational Design Flattening organizations Separating work from location Reorganizing workflows Increasing organizational flexibility Changing management process Redefining organizational boundaries

13. 13 Internet-based technologies Intranet –An internal network based on Internet technologies Extranet –Private intranet that is accessible to authorized outsiders

14. 14 The Emerging Digital Firm Electronic market –A marketplace that is created by computer & communications technologies, linking buyers and sellers E-commerce –buying & selling goods and services electronically E-business –Organizational communication, coordination & management using Internet technologies

15. 15 The Emerging Digital Firm

16. 16 Key Management Issues Strategic Challenge: –How can business use IT to become competitive, effective and digitally enabled? Globalization Challenge Information Architecture & Infrastructure Challenge IS Investment Challenge Responsibility & Control Challenge

17. 17 Positive Impacts of IS Perform calculations & process paperwork faster than people Help companies learn about their customer’s preferences & purchases Provide new efficiencies (e.g. ATMs) Provide advances in medicine Internet allows distribution of information widely and quickly

18. 18 Negative Impacts of IS May replace people & eliminate jobs System outages can cause critical shutdowns Heavy users may experience health problems Internet can be used to distribute illegal copies of software and violate intellectual property regulations

19. 19 Case: SK Wheat Pool What were the reasons SK Lab had to change its business processes? Why Lotus? What mgnt, org, and tech issues did the lab have to address? What measures could you use for evaluation of success? Was it successful? Is SK Lab a digital organization?

20. 20 c h a p t e r 1 1 MANAGING THE DIGITAL FIRM: CANADA AND BEYOND CANADA AND BEYOND