Transcript Information Systems in a Changing Environment Session 1

Information Systems
in a Changing Environment
Session 1
With thanks to Laudon & Laudon
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Objectives
To discuss these questions:
1.
What is the role of information systems in today’s competitive
business environment?
2.
What exactly is an information system? What do managers need
to know about information systems?
3.
How are information systems transforming organizations and
management?
4.
How have the Internet and Internet technology transformed
business and government?
5.
What are the major management challenges to building and using
information systems?
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Topics
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3.
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8.
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
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Changing Business Environment
Four powerful worldwide changes that have
altered the business environment:
1. Globalization
2. Rise of the Information Economy
3. Transformation of the Business
Enterprise
4. Emergence of the Digital Firm
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Globalization
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Management and control in a global
marketplace
Competition in world markets
Global workgroups
Global delivery systems
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Rise of the Information Economy
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Knowledge- and information-based economies
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New products and services
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Knowledge: a central productive and strategic asset
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Time-based competition
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Shorter product life
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Turbulent environment
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Limited employee knowledge base
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Growth of the Information Economy
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Transformation of the Business
Enterprise
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Flattening
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Decentralization
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Flexibility
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Location independence
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Low transaction and coordination costs
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Empowerment
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Collaborative work and teamwork
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Information Technology Capital
Investment 1980-2003
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Emergence of the Digital Firm
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Digitally enabled relationships with customers,
suppliers, and employees
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Core business processes accomplished via networks
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Digital management of key corporate assets
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Rapid sensing and responding to environmental
changes
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New Options for Organization Design
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Flattening organizations
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Separating work from location
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Reorganizing workflows
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Increasing flexibility
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Redefining organizational boundaries
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Flattening Organizations
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Redesigned Workflow for Insurance
Underwriting
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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
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What is an Information System?
• Data: Streams of raw facts representing
events such as business transactions
• Information: Clusters of data that are
meaningful and useful to human beings
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Data and Information
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Data
Information
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Functions of an Information System
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Why Information Systems?
Case Study: UPS
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What are the inputs, processing, and outputs of
UPS’s package tracking system?
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What technologies are used?
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How are these technologies related to UPS’s
business strategy? How do they provide value for
the company?
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What would happen if these technologies were not
available?
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Information Systems are more than
Computers
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Knowledge and Understanding
• 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
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Contemporary Approaches to Information
Systems
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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
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Contemporary Approaches to Information
Systems
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Socio-technical Perspective
System performance optimized when technology and organization
adjust to each other for a satisfactory fit
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Widening Scope of Information Systems
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1950s: Technical changes
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1960s-70s: Managerial controls
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1980s-90s: Institutional core activities
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Today: Digital information webs extending
beyond the enterprise
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Widening Scope
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The Internet
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International network of networks
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Universal technology platform: Any computer
can communicate with any other computer
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World Wide Web and Web sites
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Using the Internet
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Communicate and collaborate
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Access information
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Participate in discussions
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Supply information
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Find entertainment
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Exchange business transactions
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Effects of the Internet
• What direct influence does the Internet
have on your work?
• What indirect influence does the Internet
have on your work?
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The Digital Firm
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Electronic Commerce (e-commerce): buying and selling
goods and services electronically
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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
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Electronic Business and Electronic
Commerce in the Emerging Digital Firm
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Management Challenges
1. Design competitive and effective systems.
2. Understand system requirements of global
business environment.
3. Create information architecture that supports
organization’s goal.
4. Determine business value of information
systems.
5. Design systems people can control, understand
and use in a socially, ethically responsible
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manner.
Positive Impacts of
Information Systems
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Faster calculations and paperwork
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Analysis of customer purchase patterns and
preferences
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More efficient business services
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Medical advances
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Instant global distribution of information
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Negative Impacts of
Information Systems
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Automation leading to job elimination
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Privacy concerns
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System outages and shutdowns
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Health problems, repetitive stress injury
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Illegal distribution of intellectual property
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Case Study: A&P
1. What problems did A&P have with its
business? What management, organization,
and technology factors contributed to these
problems?
2. 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?
3. How would implementing new systems change
the way A&P ran its business?
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