Business Pressures on an Organization that force change.
Market
Technology
Society
The Drivers of change Continued
Chapter 1
Business Pressures on an Organization.
Market
Society
Technology
Organizational Response to these Drivers
Chapter 1
Strategic Systems
Continuous Improvement – Operational Efficiency
Restructuring business processes
Manufacturer to order
Customer Focus Strategy
Employ E-business tools
Business Alliances
Technology is required to effectively implement these critical responses.
Information System
Chapter 1
An information system (IS) collects, processes, stores, analyzes, and disseminates information for a specific purpose. Like any other system, an information system includes inputs(data, instructions) and outputs (reports, calculations). It processes the inputs by using technology such as PCs and produces outputs that are sent to users or to other systems via electronic networks and a feedback mechanism that controls the operation.
Input
Output
Process
Feedback
Control
Information System as a sequence of processes
Chapter 1
Computer Based Information System
Chapter 1
Hardware
Software
Data
Network
Procedures
People
Hardware
Software
People
Data
Application
More than hardware and software
Applications and Operations
Chapter 1
Retail operations
Wholesale
Manufacturing
Human Resources
Marketing
Content management
…
Information Systems
Chapter 1
Functional Perspective
Marketing
Identify customers
Determine what they want
Planning products
Advertising and promoting products
Determine prices for products
Information System
s
Chapter 1
Functional Perspective
Sales
Contact customers
Sell the product
Take the order
Follow-up on the sale
1-2 year sales forecast
Information Systems
Chapter 1
Functional Perspective
Manufacturing
Control Equipment and machinery
Design new products
Quantity of components to produce
New production facilities
Generate the work order
Information Systems
Chapter 1
Functional Perspective
Purchasing ( procurement)
Which vendors
Quantity to purchase
Rebate tracking
Handle delivery mismatches
Generate the purchase order
Information Systems
Chapter 1
Functional Perspective
Finance
Financial Assets
Investment management
Banking
Long term budgets
Information Systems
Chapter 1
Functional Perspective
Accounting
Accounts Receivable
Disbursements
Payroll
Depreciation
Earned Rebates
…
Information Systems
Chapter 1
Functional Perspective
Human Resources
Employee wages, salaries & benefits
Long term labor requirements
Tracking vacation, sick,
Track employee skills
Interviewing employees
Trends in Technology
Chapter 1
Cost-performance ratio of chips keeps improving. Moore’s Law, his prediction was that the processing power of silicon chips would double every 18 months.
According to McGarvey & tenornetworks.com, states that the performance of optical communication networks is growing by a factor of 10 every three years
Several new devices and methods to increase storage capacity price performance
Object technology enables the development of self-contained units of software that can be shared
Networked and distributed computing is emerging rapidly Metcalfe’s Law.
Trends in Technology
Chapter 1
Internet
Mobile Computing and M-Commerce
Wireless networks
Ubiquitous Computing
Smart Devices
Trends in Moblie technology
Chapter 1
Trends in Technology (continued)
Chapter 1
The Network Computer
Optical Networks
Storage Area Networks
Intranets & Extranets
The Internet
The Networked Enterprise
Why Study Information Technology ?
Chapter 1
You will be more effective in your chosen career if you understand how successful information systems are built, used, and managed.
You also will be more effective if you know how to recognize and avoid unsuccessful systems and failures.
Developing “Computer” Literacy will only enhance your “Information” Literacy
The Outline
Chapter 1
MANAGERIAL ISSUES
Chapter 1
Recognizing opportunities for using IT and Web-based systems.
Who will build, operate, and maintain the information systems. This is a critical issue because management wants to minimize the cost of IT while maximizing its benefits. Some alternatives are to outsource portions, or even all, of the IT activities, and to divide the remaining work between the IS department and the end users.
How much IT? This is a critical issue related to IT planning. IT does not come free, but not having it may be much costlier.
How important is IT? In some cases, IT is the only approach that can help organizations. As time passes, the comparative advantage of IT increases.
Is the situation going to change? Yes, the pressures will be stronger as time passes. Therefore, the IT role will be even more important.
Globalization. Global competition will have an impact on many companies. However, globalization opens many opportunities, ranging from selling and buying products and services online in foreign markets, to conducting joint ventures or investing in them. IT supports communications, collaboration, and discovery of information regarding all the above.
MANAGERIAL ISSUES Continued
Chapter 1
Ethics and social issues. The implementation of IT involves many ethical and social issues that are constantly changing due to new developments in technologies and environments. These topics should be examined any time an IT project is undertaken.
Transforming the organization to the digital economy. The transformation can be done on several fronts. Management should study the opportunities, consider alternatives and prioritize them.
