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ISQS 5231 – Spring 2012. Information Technology for Managers Dr. Qing Cao. Agenda. Syllabus Introduction. Introduction. IT vs. IS. Information Technology (IT) Vs. Information Systems (IS). Information Technology.
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ISQS 5231 – Spring 2012 Information Technology for Managers Dr. Qing Cao
Agenda • Syllabus • Introduction
IT vs. IS • Information Technology (IT) Vs. Information Systems (IS)
Information Technology • IT deals with the use of electronic computers (hardware) and computer software to convert, store, protect, process, transmit, and securely retrieve information.
Information Systems • The term information system (IS) refers to the interaction between people, processes, and information technology (IT).
Management Information Systems (MIS) Field of Study
The Challenges of Managing in a Network Economy • IT spending: USA - $1,096,112,600,000 (1.1 trillion and about 8.8% of GDP) in 2005 (source: World Bank) • IT is a source of opportunity and advantage but also uncertainty & risk (e.g., Apple vs. HP, Walmart.com vs. Amazon.com) • Chasm between viewpoints • Business executives: View IT with apprehension • Technical executives: Business leaders lack vision • What is undeniable is the rapidity of change • In system architecture and interfaces • In business • In work and the workforce
The Embedding of IT • IT now embedded in: • Definition and execution of strategy • Organization and leadership of businesses • Definitions of unique value propositions • Every business definition is morphing before our eyes • Markets • Industries • Strategies • Firm designs • Information is now a major economic good
Riding the IT Rollercoaster • Mid 1990s: • World Wide Web demonstrated IT potential • Structural and technical hurdles remained in using IT • Late 1990s • Capital markets caught the fever • VCs eager to spend on IT, regardless of long-term path to profitability • Pop Quiz – What’s the major driver for IT expansion in late 1990s? • 21st Century • Speculative bubble burst • Downward spiral until 2003
No Silver-bullet or Panacea • What is the correct IT approach?
No Silver-bullet or Panacea • It depends on a host of factors… • a company's history • industry • competitive situation • financial position • quality of IT management.
Two IT Strategies • Defensive IT (Support) • How much the company relies on cost-effective, uninterrupted, secure, smoothly operating technology systems. • American Airline – SABRE System • Offensive IT (Strategic) • How much the company relies on IT for its competitive edge through systems that provide new value-added services and products or high responsiveness to customers. • Walmart – RFID • Dynamism of Strategies
Managing Information for Globalization and Innovation • Thomas Friedman’s “The World Is Flat: A Brief History of 21st Century” (Farrar, Straus & Giroux, 2005) • Al Chandler’s, “A Nation Transformed by Information: How Information Has Shaped the United States from Colonial Times to Present,” (Oxford University Press, 2000)