CHAPTER 1

The Modern Organization in the Global, Web-Based Environment

CHAPTER OUTLINE

1.1 Business Processes and Business Process Management

1.2 Information Systems: Concepts and Definitions

1.3 The Global, Web-Based Platform1.4 Business Pressures, Organizational

Responses, and IT Support1.5 Why Are Information Systems Important to

You?1.6 The Plan of the Book

LEARNING OBJECTIVES

• Describe business processes and discuss business process management

• Differentiate among data, information, and knowledge

• Differentiate between information technology infrastructure and information technology architecture

LEARNING OBJECTIVES (continued)

• Describe the global business environment and the new information technology infrastructure

• Discuss the relationships among business pressures, organizational responses, and information systems

Chapter Opening Case

Moai on Rapa Nui

Homo Conexus

• You are the most connected generation in history

• You practice continuous computing• You are surrounded by a personal, movable

information network

Personal movable information network

And…..laptop in briefcase!

1.1 Business Processes

Business Process

Business Process Management

Example of Business Process (Figure 1.1)

The next slide shows an example of a business process: Ordering an E-ticket from an airline Web site

Notify TravelerNotify Traveler

Receive Ticket OrderReceive Ticket Order

Reserve SeatsReserve Seats

Charge Credit CardCharge Credit Card

Confirm Flight(s)Confirm Flight(s)

Issue e-TicketIssue e-Ticket

Plan TripPlan Trip

Check FlightsCheck Flights

Submit Ticket OrderSubmit Ticket Order

Receive e-TicketReceive e-Ticket

Seats Available

Seats Available

Use Credit Card?

Use Credit Card?

Charge OK?

Charge OK?

Seats Available?

Seats Available?

Notify TravelerNotify Traveler

Frequent Flyer Mileage

Sufficient?

Frequent Flyer Mileage

Sufficient?

Subtract MileageSubtract Mileage

NO

YES

NO

YES

NO

YES

NO

YES

Traveler Airline Web Site

YES

NO

1.2 Information Systems:Concepts and Definitions

Data ItemInformationKnowledge

Information Systems: Concepts and Definitions (continued)

Information Technology ArchitectureInformation Technology Infrastructure

1.3 The Global, Web-Based Platform

• Best represented by the Internet and the World Wide Web

• Enables us to connect, compute, communicate, collaborate, and compete everywhere and anytime

• Operates without regard to geography, time, distance, and language

The Stages of Globalization (From Thomas Friedman in The World is Flat)

• Globalization 1.0 (from 1492 to 1800)• Globalization 2.0 (from 1800 to 2000)• Globalization 3.0 (from 2000 to the

present)

Globalization 1.0

Christopher Columbus

Globalization 2.0 (first half)

Steam engine

Railroads

Globalization 2.0 (second half)

OpenMoko open source smart phone

Satellites

Netbook

Fiber optics

Globalization 3.0

1.0

2.0

3.0

Globalization 3.0 (continued)

Schematic Map of the Internet

Thomas Friedman’s Ten Flatteners

• Fall of the Berlin Wall• Netscape goes public• Development of work-flow software• Uploading• Outsourcing• Offshoring• Supply Chaining• Insourcing• Informing• The Steroids

The Great Convergence

We are in a convergence of three powerful, technological forces: (1) Cheap and ubiquitous computing devices (2) Low-cost, high bandwidth (3) Open standards

The Great Convergence (continued)

In essence, we have computing everywhere and anywhere, anytime and all the time, with access to limitless amounts of information, services, and entertainment.

The Great Convergence (continued)

We have the creation of a global, Web-enabled playing field that allows for multiple forms of collaboration – the sharing of knowledge and work – in real time, without regard to geography, distance, or, in the near future, even language.

The field now includes some 3 billion new people, formerly digitally disenfranchised.

1.4 Business Pressures, Organizational Responses, and IT Support

Business Pressures – Market Pressures– Technology Pressures– Societal Pressures

Market Pressures

The Global Economy and Strong Competition

The Changing Nature of the Workforce

Powerful Customers

Technology Pressures

• Technological Innovation and Obsolescence• Information Overload

Technological Innovation and Obsolescence

Innovation: Early calculator Obsolescence: Slide Rule

Innovation: Telegraph Obsolescence: Pony Express

Innovation: iPod nano Obsolescence: old phonograph

Innovation: digital cameraInnovation: “Credit card” digital camera

Obsolescence: old analog camera

Innovation: Ford Model T Obsolescence: Horse and Buggy

Innovation: Notebook computer with word processing software

Obsolescence: Manual typewriter

Societal Pressures

• Social Responsibility• Government Regulation and Deregulation• Protection Against Terrorist Attacks• Ethical Issues

Green IT

Social Responsibility

Bridging the digital divide:

One laptop per child initiative

Internet over satellite in developing nations

Youth computer club in Cuba

Microlenders (IT’s About Business 1.2)

Organizational Responses

• Strategic Systems• Customer Focus• Make-to-Order and mass customization• E-business and E-commerce

1.5 Why Are Information Systems Important to You?

• Information systems and information technologies are integral to your lives

• Information systems offer career opportunities

• Information systems are used by all functional areas in an organization

Build Your Own Multinational (IT’s About Business 1.4)

Misinformation about Information Systems Career Opportunities

• Myth #1: There are no computing jobs.• Myth #2: There will be no IT jobs when I

graduate.• Myth #3: All IT-related jobs are moving

offshore.• Myth #4: IT salaries are lower due to cheap

overseas labor.

1.6 The Plan of This Book

• The major objective of this book is to help you understand the roles of information technologies in today’s digital organizations.

• The book is designed to help you think strategically about information systems

• The book demonstrates how IT supports all of the functional areas of the organization

• Each chapter introduces a major topic in Information Technology