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CHAPTER 1. THE CHAPTER 1. THE INFORMATION SYSTEMS INFORMATION SYSTEMS REVOLUTIONREVOLUTION

TRANSFORMING TRANSFORMING BUSINESS AND BUSINESS AND MANAGEMENTMANAGEMENT

EXPOSITOR:M.Sc. Víctor Pando Beltránvictorpando@yahoo.com

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Learning objectives (#1)Learning objectives (#1)

• Define information systemsDefine information systems

• COMPUTER LITERACY versus COMPUTER LITERACY versus INFORMATION SYSTEMS LITERACYINFORMATION SYSTEMS LITERACY

• Explain impact of information Explain impact of information systems on organization & systems on organization & managementmanagement

**

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Learning objectives (#2)Learning objectives (#2)

• Compare electronic commerce & Compare electronic commerce & electronic business, relationship to electronic business, relationship to internet & digital technologyinternet & digital technology

• Identify major management Identify major management challenges to building, using challenges to building, using information systemsinformation systems

**

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Management challenges Management challenges (Sections)(Sections)

• Why information systems?Why information systems?

• Contemporary approaches to Contemporary approaches to information systemsinformation systems

• New role of info systems in New role of info systems in organizationsorganizations

• Learning to use info systems: new Learning to use info systems: new opportunities with technologyopportunities with technology

**

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Business Environment Business Environment (sections)(sections)

•GlobalizationGlobalization

•Industrial economiesIndustrial economies

•Transformation of the Transformation of the enterpriseenterprise

**

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GlobalizationGlobalization

• Future Success Factor (Globalization)Future Success Factor (Globalization)

• Management & control (IT)Management & control (IT)

• Competition in world marketsCompetition in world markets

• Global work groups (SW Team)Global work groups (SW Team)

• Global delivery systems (Real and Global delivery systems (Real and Virtual)Virtual)

**

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Transformation of Industrial Transformation of Industrial EconomiesEconomies

• Knowledge- (Info-) based economiesKnowledge- (Info-) based economies

• Productivity (System Quality)Productivity (System Quality)

• New products & servicesNew products & services

• Knowledge as an assetKnowledge as an asset

• Time-based competitionTime-based competition

• Shorter product lifeShorter product life

• Turbulent environmentTurbulent environment

• Limited employee knowledge baseLimited employee knowledge base

**

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Transformation of Transformation of enterpriseenterprise• FlatteningFlattening

• DecentralizationDecentralization

• FlexibilityFlexibility

• Location independenceLocation independence

• Low transaction costsLow transaction costs

• Empowerment (Electric-Firms)Empowerment (Electric-Firms)

• Collaborative workCollaborative work

**

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Knowledge- and Knowledge- and information-intense information-intense productsproducts

• Products that require a great deal Products that require a great deal of learning & knowledge to produceof learning & knowledge to produce

• Employing Millions of PeopleEmploying Millions of People

• Optimize within Organization and Optimize within Organization and Maximize Firm’s Knowledge Maximize Firm’s Knowledge ResourcesResources

**

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LABOR FORCE COMPOSITION 1900-1996 LABOR FORCE COMPOSITION 1900-1996 (Figure 1-1)(Figure 1-1)

Source: Laudon & Laudon 2000

0%

10%

20%

30%

40%

50%

60%

70%

1900 1910 1920 1930 1940 1950 1960 1970 1980 1996

YEAR

% SERVICE

% WHITECOLLAR% BLUECOLLAR% FARMING

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INPUT OUTPUTPROCESS

FEEDBACK

What is SYSTEM ?What is SYSTEM ?

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FUNCTIONS OF AN INFORMATION SYSTEM (figure FUNCTIONS OF AN INFORMATION SYSTEM (figure 1-3)1-3)

INPUT OUTPUTPROCESS

FEEDBACK

INFORMATION SYSTEMINFORMATION SYSTEM

ENVIRONMENTENVIRONMENT

Customers Suppliers Customers Suppliers

Regulatory Regulatory Stockholders CompetitorsStockholders CompetitorsAgenciesAgencies

ORGANIZATIONORGANIZATION

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INFORMATION SYSTEMSINFORMATION SYSTEMS (Figure 1-4)(Figure 1-4)

ORGANIZATIONSORGANIZATIONS TECHNOLOGYTECHNOLOGY

MANAGEMENTMANAGEMENT

INFORMATIOINFORMATIONN

SYSTEMSSYSTEMS

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Computer-based information Computer-based information systems systems (CBIS)(CBIS)

• Formal systemsFormal systems

• Fixed definitions of data, proceduresFixed definitions of data, procedures

• Collecting, storing, processing, Collecting, storing, processing, disseminating, using datadisseminating, using data

**

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A Business Perspective on A Business Perspective on Information SystemsInformation Systems

• Organizational and Management Organizational and Management Solution, based on IT, posed by Env.Solution, based on IT, posed by Env.

• Information Systems Literacy – Information Systems Literacy – Computer LiteracyComputer Literacy

• SOPs (Standard Operation SOPs (Standard Operation Procedures)Procedures)

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Major organizational Major organizational functions (Table 1-2)functions (Table 1-2)

• Sales & marketingSales & marketing

• ManufacturingManufacturing

• FinanceFinance

• AccountingAccounting

• Human resourcesHuman resources

**

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Computer technologyComputer technology

• HardwareHardware

• SoftwareSoftware

• StorageStorage

• CommunicationsCommunications

• NetworkNetwork

**

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APPROACHES TO INFO SYSTEMS APPROACHES TO INFO SYSTEMS (#1) (Figure 1-5)(#1) (Figure 1-5)

SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

MISMIS

TECHNICAL APPROACHESTECHNICAL APPROACHES

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

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APPROACHES TO INFO APPROACHES TO INFO SYSTEMS (#2)SYSTEMS (#2)

• Techincal ApproachTechincal Approach– Computer scienceComputer science– Management ScienceManagement Science– Operations ResearchOperations Research

• Behavioral ApproachesBehavioral Approaches– SociologistsSociologists– PsychologistsPsychologists– EconomistsEconomists

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Sociotechnical perspective (#1)Sociotechnical perspective (#1)

Optimize system performance:Optimize system performance:

Technology & organization mutually Technology & organization mutually adjust to one anotheradjust to one another

Until fit is satisfactoryUntil fit is satisfactory

**

SOURCE: Liker, et al, 1987

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A Sociotechnical Perspective A Sociotechnical Perspective on IS (#2) (Figure 1-6)on IS (#2) (Figure 1-6)

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SYSTEM SYSTEM INTERDEPENDENCEINTERDEPENDENCE

BUSINESSBUSINESS

StrategyStrategy

RulesRules

ProceduresProcedures

ORGANIZATION ORGANIZATION INFORMATION SYSTEMINFORMATION SYSTEM

HARDWAREHARDWARE

SOFTWARESOFTWARE DATABASEDATABASE

TELE-TELE-COMMUNICATIONSCOMMUNICATIONS

INTERDEPENDENCEINTERDEPENDENCE

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• 1950s: TECHNICAL CHANGES1950s: TECHNICAL CHANGES

• 60s-70s: MANAGERIAL CONTROL60s-70s: MANAGERIAL CONTROL

• 80s-90s: INSTITUTIONAL CORE ACTIVITIES80s-90s: INSTITUTIONAL CORE ACTIVITIES

Growing importanceGrowing importance

**

Scope of info systemsScope of info systems

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Network Revolution & Network Revolution & InternetInternet

• NetworkNetwork

• Internet Internet Platform Platform

• New Business ModelsNew Business Models

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What you can do on the What you can do on the internetinternet

• Communicate & collaborateCommunicate & collaborate

• Access informationAccess information

• DiscussDiscuss

• Obtain informationObtain information

• EntertainmentEntertainment

• Transact business Transact business

**

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New options for organizational New options for organizational design (sections)design (sections)

• Flattening organizationsFlattening organizations

• Separating work from locationSeparating work from location

• Reorganizing work-flowsReorganizing work-flows

• Increasing flexibilityIncreasing flexibility

• Redefining organizational Redefining organizational boundariesboundaries

**

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Flattening OrganizationsFlattening Organizations

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SALES & MARKETING

COMPANY

FINANCE COMPANY

LOGISTICS

COMPANY

DESIGN

COMPANY

MANUFACTURING

COMPANY

VIRTUAL ORGANIZATIONVIRTUAL ORGANIZATION

CORECORE

COMPANYCOMPANY

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The changing management The changing management process (sections)process (sections)

• Electronic commerceElectronic commerce

• Electronic businessElectronic business

• Electronic marketElectronic market

**

1-1- 3030

Electronic MarketElectronic Market

• Exchange Information, Products, Exchange Information, Products, Services, and PaymentsServices, and Payments

• Retail (exp. AllBook.com.tw)Retail (exp. AllBook.com.tw)

• Wholesale (exp. ChinaSteel)Wholesale (exp. ChinaSteel)

1-1- 3131

Electronic commerceElectronic commerce

• Internet links buyers, sellersInternet links buyers, sellers

• Lowers transaction costsLowers transaction costs

• Goods & services Goods & services advertised, advertised, bought, exchanged worldwidebought, exchanged worldwide

• Business-to-business transactions Business-to-business transactions increasingincreasing

**

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Electronic businessElectronic business

• Intranet: business builds private, Intranet: business builds private, secure networksecure network

• E-mail, web documents, group E-mail, web documents, group software extends effective software extends effective

communication & communication & controlcontrol

• Virtual organizationVirtual organization

**

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EC & EB in Networked EC & EB in Networked EnterpriseEnterprise

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Challenge of info systemsChallenge of info systems

• Strategic: competitive & effectiveStrategic: competitive & effective

• Globalization: multinational infoGlobalization: multinational info

• Info architecture: support goalsInfo architecture: support goals

• Investment: value of informationInvestment: value of information

• Responsibility & control: ethicsResponsibility & control: ethics

**

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Connect to the Connect to the INTERNETINTERNET

© 2001 Laudon & Laudon, Essentials of Management Information Systems 4/e

Laudon/Laudon Web site: http://www.prenhall.com/laudon

Additional Internet Resources related to this chapter:http://www.dell.com

http://www.amazon.com http://www.firstunion.com

http://www.intel.com http://www.clemson.edu/ http://www.gatech.eduhttp://www.bath.ac.uk http://www.intranet.comhttp://www.ascusc.org/jcmc/vol1/issue1/index.html

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CHAPTER 1. THE CHAPTER 1. THE INFORMATION SYSTEMS INFORMATION SYSTEMS REVOLUTIONREVOLUTION

TRANSFORMING TRANSFORMING BUSINESS AND BUSINESS AND MANAGEMENTMANAGEMENT

EXPOSITOR:M.Sc. Víctor Pando Beltránvictorpando@yahoo.com