The Power of Modern Information Systems

1. The Power of Modern Information Systems • Introduction to information systems • Achieving competitive advantage • Networks, Telecommunications, the Internet, WWW • The Personal Computer Industry and Dell • TransAlta • Quiz • Exercises

2. Day 1 – Module 1 Introduction to Modern Information Systems Text Materials Chapter 1 – The Information Age in Which You Live

3. Quotes “I think there is a world market for maybe five computers.” “There is no reason for any individual to have a computer in his home.” “Make your own products obsolete. Otherwise somebody else will do it.” Introduction to IS

4. Opportunities http://www.milliondollarhomepage.com/

5. Creativity Exercises

6. The Value Chain • The set of integrated internal processes that combine to deliver value to customers.

7. The Supply Chain • A set of business processes that allow multiple independent entities (suppliers, manufacturers, retailers, and so on) to function as one “virtual” organization.

8. The Big Picture

9. IT Adoption – Why? • Reduce Costs • Improve Efficiency • Improve Decision Making • Innovate • Gain Competitive Advantage • Survival Suppliers Your Company Customers Value Chain Supply Chain http://newyork.yankees.mlb.com/nyy/ticketing/seating_pricing.jsp

12. Huge Investments are Being Made • $2 trillion estimated in 2007 • $2 trillion in consulting and services Scource: Laudon & Laudon, “Essentials of Business Information Systems, Prentice Hall, 2007.

13. Some Ramifications • Major growth for package movement organizations. • Wireless growth. • Purchasing moving to the Internet. • Newspaper readership decline. Blog readership rise. • Internet advertising growth. • Growth of digital information storage. • Changes in jobs and careers.

14. Example - Walmart Sales per square foot

15. Example – JC Penny and TAL Apparel

16. An Information System is . . . a (hopefully) interrelated set of components that collect, process, store, and distribute information to support decision making and control in an organization.

17. Data and Information

18. System Software and Application Software Preprogrammed instructions that control and coordinate the computer hardware components in an information system. Computer Hardware System Software Application Software User

19. Some Common Browsers

20. Some Common Browsers

21. The Mainframe Era 1940’s-1950’s 1960’s

22. The PC Era 1976 1981 1984

23. The PC Era • 1985+

24. The Internet Era • 1993+

25. Day 1 – Module 2 Competitive Advantage with Information Technology Text Materials Chapter 2 – Major Business Initiatives

26. Achieving Competitive Advantage with IT • Off-line (store) Retail • Online Retail • Automotive • Online music • Music players • Web search • Personal computers • Software Competitive Advantage

27. Hello!? 2008 DJI MSFT 1990 DJI $5000 MSFT $5000 Market Capitalization, February 2007

28. Hello!?

29. Competitiveness How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services.

30. Competitiveness Our Philosophy PFSweb is an outsourcing solutions design firm with an extensive offering of world-class logistics, fulfillment, customer care and technology infrastructure that can be leveraged to create unique, client-specific business solutions. Our philosophy is not to fit your business model into our pre-existing infrastructure, but rather to develop our infrastructure around your unique needs. We are flexible, scalable, and adaptable so we can keep pace with your ever-changing needs, whether you are adding new sales channels, marketing initiatives, vendor managed inventory (VMI) programs or special projects. We realize that no two clients face the exact same challenges, and for that reason, we are always extending our technology and operations capabilities based directly on client needs. Our philosophy is that there is absolutely no favorable argument for you to consider outsourcing with PFSweb unless we can execute at a greater performance level than what you could achieve in-house or through an alternative partner.

31. Competitiveness

32. Outputs Productiv ity = Inputs Productivity Measures how well an organization is utilizing its resources.

33. Porter’s Competitive Advantage Model New Entrants Buyer Power Supplier Power Rivalry Among Competitors Suppliers Customers Substitutes

34. Porter’s Competitive Advantage Model • Impact of Internet on Competitive Forces • Reduces barriers to entry • Enables new substitute products and services • Shifts bargaining power to customer • Raises firm’s bargaining power over suppliers • Suppliers benefit from reduced barriers to entry and from elimination of intermediaries • Widens geographic market, increases number of competitors, reduces differentiation among competitors

35. Porter’s Competitive Advantage Model New Entrants Buyer Power Supplier Power Rivalry Among Competitors Suppliers Customers Substitutes

36. Porter’s Competitive Advantage Model Buyer Power Rivalry Among Competitors Customers

37. Porter’s Competitive Advantage Model New Entrants Rivalry Among Competitors

38. Porter’s Competitive Advantage Model Rivalry Among Competitors Substitutes

39. Porter’s Competitive Advantage Model Supplier Power Rivalry Among Competitors Suppliers

40. Porter’s Competitive Advantage Model

41. IT Systems can help in the areas of . . . • Low-cost leadership • Product differentiation • Customer and supplier intimacy • Focus on market niches • Increase your market reach

42. The Value Chain Model

43. Basic Value Chain for Federal Express Human Resources Build and Improve Distribution Centers Support Aircraft and Trucks Order Supplies Support Activities Service Customers Bill & Collect Collect Packages Sort Packages Ship Packages Core Activities (Hub)

44. Day 1 – Module 3 Networks and the Internet Text Materials Extended Learning Module E – Network Basics

45. A Modem M M 0 0 1 1 1 0 1 0 0 1 1 1 0 1 Networks, Internet, WWW

46. Data communications Sending messages/information between two or more computers.

47. Data communications media 5 Mbs 1.44 Mbs 10,000 Mbs .4 Mbs 1 Mbs

48. Data Communication • Network: two or more computers or devices linked by communication lines. • Each computer/device is a node • Transmitter and receiver are nodes • The network is the medium • Communication rules are defined by a protocol

49. Data Communication • Communication protocol • An agreed-upon format or procedure for transmitting data. • Implemented in hardware and/or software • Key issues • Deliver message efficiently • Detect errors • Correct errors Networks, Internet, WWW – 5 of 22

50. Messages and Packets Message A Trailer Body Header Packet A1 Packet A2 Packet A3