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Information Systems in a Changing Environment

Information Systems in a Changing Environment. Session 1. With thanks to Laudon & Laudon. To discuss these questions: What is the role of information systems in today’s competitive business environment?

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Information Systems in a Changing Environment

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  1. Information Systems in a Changing Environment Session 1 With thanks to Laudon & Laudon

  2. To discuss these questions: What is the role of information systems in today’s competitive business environment? What exactly is an information system? What do managers need to know about information systems? How are information systems transforming organizations and management? How have the Internet and Internet technology transformed business and government? What are the major management challenges to building and using information systems? Objectives

  3. Topics • Changing Business Environment • Organisation Design • What is an Information System? • Information System is more than technology • The Internet • The Digital Firm • Management Challenges • Case Study – A&B Supermarkets

  4. Four powerful worldwide changes that have altered the business environment: Globalization Rise of the Information Economy Transformation of the Business Enterprise Emergence of the Digital Firm Changing Business Environment

  5. Management and control in a global marketplace Competition in world markets Global workgroups Global delivery systems Globalization

  6. Knowledge- and information-based economies New products and services Knowledge: a central productive and strategic asset Time-based competition Shorter product life Turbulent environment Limited employee knowledge base Rise of the Information Economy

  7. Growth of the Information Economy

  8. Flattening Decentralization Flexibility Location independence Low transaction and coordination costs Empowerment Collaborative work and teamwork Transformation of the Business Enterprise

  9. Information Technology Capital Investment 1980-2003

  10. Digitally enabled relationships with customers, suppliers, and employees Core business processes accomplished via networks Digital management of key corporate assets Rapid sensing and responding to environmental changes Emergence of the Digital Firm

  11. New Options for Organization Design • Flattening organizations • Separating work from location • Reorganizing workflows • Increasing flexibility • Redefining organizational boundaries

  12. Flattening Organizations

  13. Redesigned Workflow for Insurance Underwriting

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

  15. Data:Streams of raw facts representing events such as business transactions Information: Clusters of data that are meaningful and useful to human beings What is an Information System?

  16. 331 Brite Dish Soap 1.29 863 BL Hill Coffee 4.69 173 Meow Cat .79 331 Brite Dish Soap 1.29 663 Cntry Ham 3.29 524 Fiery Mustard 1.49 113 Ginger Root .85 331 Brite Dish Soap 1.29 Information Data Data and Information

  17. Functions of an Information System

  18. What are the inputs, processing, and outputs of UPS’s package tracking system? What technologies are used? How are these technologies related to UPS’s business strategy? How do they provide value for the company? What would happen if these technologies were not available? Why Information Systems? Case Study: UPS

  19. Information Systems are more than Computers

  20. Information systems literacy:Broad-based understanding of information systems that includes behavioral knowledge about organizations and individuals using information systems and technical knowledge about computers Computer literacy:Knowledge about information technology, focusing on understanding how computer-based technologies work Knowledge and Understanding

  21. Contemporary Approaches to Information Systems • Technical approach: emphasizes mathematically based models, physical technology, and formal capabilities of systems • Behavioral approach: studies issues arising from development and maintenance of systems, such as business integration and utilization

  22. Contemporary Approaches to Information Systems

  23. Socio-technical Perspective System performance optimized when technology and organization adjust to each other for a satisfactory fit

  24. Widening Scope of Information Systems • 1950s: Technical changes • 1960s-70s: Managerial controls • 1980s-90s: Institutional core activities • Today: Digital information webs extending beyond the enterprise

  25. Widening Scope

  26. The Internet • International network of networks • Universal technology platform: Any computer can communicate with any other computer • World Wide Web and Web sites

  27. Using the Internet • Communicate and collaborate • Access information • Participate in discussions • Supply information • Find entertainment • Exchange business transactions

  28. Effects of the Internet • What direct influence does the Internet have on your work? • What indirect influence does the Internet have on your work?

  29. The Digital Firm • Electronic Commerce (e-commerce): buying and selling goods and services electronically • Electronic Business: executing all the firm’s business processes with Internet technology • Intranet: private, secure business network based on Internet technology • Extranet: extension of intranet to authorized external users

  30. Electronic Business and Electronic Commerce in the Emerging Digital Firm

  31. Design competitive and effective systems. Understand system requirements of global business environment. Create information architecture that supports organization’s goal. Determine business value of information systems. Design systems people can control, understand and use in a socially, ethically responsible manner. Management Challenges

  32. Positive Impacts of Information Systems • Faster calculations and paperwork • Analysis of customer purchase patterns and preferences • More efficient business services • Medical advances • Instant global distribution of information

  33. Negative Impacts of Information Systems • Automation leading to job elimination • Privacy concerns • System outages and shutdowns • Health problems, repetitive stress injury • Illegal distribution of intellectual property

  34. Case Study: A&P • What problems did A&P have with its business? What management, organization, and technology factors contributed to these problems? • To what extent was the Great Renewal project a solution to the company's problems? What problems could system modernization solve? What problems could it not solve? • How would implementing new systems change the way A&P ran its business?

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