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Information Systems Today: Managing in the Digital World 1-1

1You cant just ask eo le !hat they !ant and then try

to gi"e it to them# $y the time you get it %uilt& theyll!ant something else'

Steve Jobs, Apple Computer (on pleasing customers)

Chapter

Managing in the Digital World

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Information Systems Today: Managing in the Digital World 1-2

Learning Objectives

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Information Systems Today: Managing in the Digital World 1-3

Learning Objectives

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Information Systems Today: Managing in the Digital World 1-4

Characteristics of the DigitalWorld

The Knowledge Worker o Term coined by Peter Drucker in 1959

o n indi!idu"l who i# rel"ti!ely well educ"ted"nd who cre"te#$ modi%ie# "nd&or#ynthe#i'e# knowledge "# " %und"ment"l("rt o% " )ob

Knowledge *ocietyo +ew ,conomy&Digit"l WorldDigit"l Di!ide

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Information Systems Today: Managing in the Digital World 1-5

The Knowledge Society

n%orm"tioni# now "#im(ort"nt "#l"nd$ l"bor"nd c"(it"l.

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Information Systems Today: Managing in the Digital World 1-/

Globalization

0lob"li'"tion m"ni%e#t# it#el% through ch"nge# in economy$ culture# "ndtechnology.

0lob"li'"tion i# the integr"tion o% economie# throughoutthe world$ en"bled by technologic"l (rogre##.

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Information Systems Today: Managing in the Digital World 1-

Globalization: cono!ic Changes

,conomic h"nge#o ncre"#e in intern"tion"l tr"de o% good# "nd

#er!ice#

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Information Systems Today: Managing in the Digital World 1-

Globalization: C"lt"ral Changes

ultur"l h"nge#o ncre"#ed "cce## to other culture# through

T $ nternet$ etc.6

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Information Systems Today: Managing in the Digital World 1-9

Globalization: Technological Changes

Technologic"l h"nge#o !"il"bility o% low co#t communic"tion

#y#tem#

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Information Systems Today: Managing in the Digital World 1-17

#nfor!ation Syste!s: De$nition ombin"tion o% %i!e

key element#8

o Peo(leo "rdw"reo *o%tw"reo D"t"

o Telecommunic"tion#network#

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Information Systems Today: Managing in the Digital World 1-11

Data: The %oot and &"r'ose of#nfor!ation Syste!s (#)

Di#tinction between8o Data : r"w$ un%orm"tted in%orm"tion ,.g.8 5433333353o Information : d"t" th"t i# tr"n#%ormed to

h"!e " me"ning

,.g.8 5436 333-3353o Knowledge : body o% go!erning (rocedure#u#ed to org"ni'e or m"ni(ul"te d"t"

o Wisdom : "ccumul"ted knowledge

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Information Systems Today: Managing in the Digital World 1-12

Data: The %oot and &"r'ose of#nfor!ation Syste!s (##)

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Information Systems Today: Managing in the Digital World 1-13

#T: The Co!'onents of #nfor!ationSyste!s

;el"tion#hi( o%com(uter-b"#edin%orm"tion#y#tem# toin%orm"tiontechnology "ndtechnology

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Information Systems Today: Managing in the Digital World 1-14

#T: The Co!'onents of #nfor!ationSyste!s * Technology

ny m"chine th"tc"n #u((lementor re(l"ce hum"nm"nu"l worko ,.g.8

e"ting #y#tem *urgic"l l"#er

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Information Systems Today: Managing in the Digital World 1-15

#T: The Co!'onents of #nfor!ationSyste!s + #nfor!ation Technology

ty(e o% technologyth"t i# controlled byor u#e# in%orm"tiono ,.g.$ m"nu%"cturing

robot

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Information Systems Today: Managing in the Digital World 1-1/

#T: The Co!'onents of #nfor!ationSyste!s + Co!'"ter*based #S

*y#tem# u#ingcom(uter# to (ro!ideu#e%ul d"t" to (eo(leo ,.g.$ #(eci%ic #o%tw"re

u#ed to "n"ly'e d"t"

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Information Systems Today: Managing in the Digital World 1-1

Learning Objectives

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Information Systems Today: Managing in the Digital World 1-1

&eo'le: The ,"ilders and -anagers of #S "reer o((ortunitie# "re #trong "ndeedi"n e"rning# %or m"n"ger# ?172$3/7 >"y

27756

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Information Systems Today: Managing in the Digital World 1-19

,est .obs for the /e0t Decade

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Information Systems Today: Managing in the Digital World 1-27

Careers and Salaries in the #S1ield (/ational 2verage)

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Information Systems Today: Managing in the Digital World 1-21

Careers in #S: vol"tion of the C#O hie% n%orm"tion

@%%icer @6 : )ob

title bec"me(o(ul"r in 19 7#

,"rly 1997# :(eo(le )oked th"t

@ #t"nd# %orA "reer # @!erB

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Information Systems Today: Managing in the Digital World 1-22

The C#O Today >o#t l"rge "nd

mid#i'e

org"ni'"tion#h"!e " @

;ob "rter o%Ced,< : @o% the ye"r

277/6

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Information Systems Today: Managing in the Digital World 1-23

#S &ersonnel h"nging trend#o igher (re#tigeo >ore women

&2ST &% S /T

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Information Systems Today: Managing in the Digital World 1-24

What -a3es #S &ersonnel4al"able5 ntegr"ted knowledge "nd #kill# in three

"re"#8

o ec!nical Competenc" - #kill# in h"rdw"re$#o%tw"re$ networking "nd #ecurityo #usiness Competenc" : under#t"nding o% the

n"ture o% the bu#ine## thi# i# key in "ddition to the

technic"l com(etencyo S"stem Competenc" : under#t"nding o% how

to build "nd integr"te l"rge #c"le #y#tem#

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Information Systems Today: Managing in the Digital World 1-25

Organizations: The Conte0t of #S >"ny di%%erent ty(e# o% #y#tem# "re u#edin org"ni'"tion#o ,.g.8 tr"n#"ction (roce##ing #y#tem#$

deci#ion #u((ort #y#tem#$ intelligent #y#tem#$etc.

The#e #y#tem# u#ed to be cle"nlyc"tegori'ed : now the bound"rie# "re%"ding due to8o nternetworkingo *y#tem# integr"tion

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Information Systems Today: Managing in the Digital World 1-2/

Organizing the #S 1"nction ,"rly i#tory8 Poor *er!ice "nd Wor#e ttitude#o ,"rly #y#tem# were cumber#ome to u#e$ o!er budget

"nd l"te

The ;i#e "nd C"ll o% ,nd-E#er De!elo(mento E#er# de!elo(ing their own "((lic"tion# or im(ro!ee

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Information Systems Today: Managing in the Digital World 1-2

nd 6ser Develo'!ent

The "d!ent o%the G> P"nd e"rly"((lic"tion#("ck"ge# led

to end-u#erde!elo(ment

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Information Systems Today: Managing in the Digital World 1-2

Other #ss"es 1acing the #S1"nction The #(re"d o% technology in

org"ni'"tion# Down#i'ing right#i'ing6 "nd @ut#ourcing "reer (ro#(ect# "nd o((ortunitie#

o +eed %or (eo(le within org"ni'"tion# with"n"ly#t #kill#

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Learning Objectives

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Information Systems Today: Managing in the Digital World 1-37

The D"al /at"re of #S * c"n m"ke you or bre"k you E.*. +"!y : The %"ilure

o ? 1 billion w"#ted on 4 di%%erent ,;P"((lic"tion# Ced,< : The #ucce##

o ? 32 billion %"mily o% com("nie# : l"rge#te

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Information Systems Today: Managing in the Digital World 1-31

#S for Co!'etitive 2dvantage Goth Ced,< "nd the E.*. +"!y were

de!elo(ing strategic in%orm"tion#y#tem#

@nly #tr"tegic in%orm"tion #y#tem# c"nhel( #u#t"in competitive advantage

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Information Systems Today: Managing in the Digital World 1-32

Why #nfor!ation Syste!s -atter +ichol"# "rr "rticle : IT Doesnt Matter' o T no longer " #ource o% "d!"nt"ge on the %irm le!elo om("nie# #hould %ocu# T on co#t reduction "nd

ri#k mitig"tion

>"ny e

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nd of Cha'ter Content

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Information Systems Today: Managing in the Digital World 1-34

O'ening Case ((le ch"nged

the w"y in whiche!eryd"y (eo(leu#e com(uter#

*ucce## o% iPodb"#ed on"!"il"bility o%cu#tomi'"ble%e"ture#

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Information Systems Today: Managing in the Digital World 1-35

Online %ights /ot 2lways6niversal 0 o!ernment# in #ome countrie# regul"te

"cce## to in%orm"tion on the web e.g. hin"6

;e(orter# Without Gorder# c"ll# thi# beh"!iorunethic"l

Wh"t i# the role o% com("nie# #uch "#>icro#o%t in de"ling with the#e go!ernment#J

Who own# Web-(o#ted d"t"J *hould the nternet cre"te it# own l"w#J

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Information Systems Today: Managing in the Digital World 1-3/

S'intronics ;ole o% #emiconductor# in com(uter chi(#o 7 or 1 re(re#ented by electronF# ch"rge

*(intronic# : "n "ltern"ti!e to #emiconductor#o ,lectron# c"n #(in Au(B or AdownB to re(re#ent 7#"nd 1#

o The electron#F A#(inB (ro(ertie# c"n hold their #t"te#

%or " longer (eriod o% time ,mergence o% new #tor"ge de!ice# E#e in embedded de!ice# m(ro!ed (er%orm"nce

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Information Systems Today: Managing in the Digital World 1-3

Steve .obs7 Cofo"nder andC O of 2''le Co!'"ters

A w"nt to (ut " ding inthe uni!er#e.B

A ou c"nFt )u#t "#k(eo(le wh"t they w"nt"nd then try to gi!e it to

them. Gy the time youget it built$ theyFll w"nt#omething el#e.B

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Information Systems Today: Managing in the Digital World 1-3

Worldwide #nternet 6sage n 277/ "bout 27L o% "cti!e nternet u#er# were loc"tedin the E*

The nternet u#"geo ighe#t - +orth meric"8 7L o% (o(ul"tiono Howe#t : %ric"8 2./L (enetr"tion o% u#e

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Information Systems Today: Managing in the Digital World 1-39

Choice&oint #nc8 dentity the%t : the crime o% the 21 #t century

o .9 million !ictim# in the %ir#t month# o% 277/

hoicePoint m"int"in# 19 billion (iece# o%in%orm"tion on !irtu"lly e!ery "dult in the E*o 2775 : identity thie!e# bought more th"n 177$777

record# %rom hoicePoint 57 o% the#e bec"me !ictim# o% identity the%t

o n 277/ hoicePoint w"# %ined ?17 million %or the#ecurity bre"ch ? 5 million w"# ("id to con#umer# "%%ected by thi# *ecurity "udit# im(lemented

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Information Systems Today: Managing in the Digital World 1-47

-T4 "ro'e The mo#tintern"tion"ltele!i#ion networkin the world +ow working tobre"k into " newmedium8 mobiletele!i#ion #creen#o >T -,uro(e8

te#ting ground

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,"siness Career O"tloo3 0lob"li'"tion trend i# incre"#ing the need %orA0lob"l *kill#B : Wh"t c"n you doJ

o 0"in intern"tion"l e