Managing information systems 7th edition brow ch01

MANAGING INFORMATION TECHNOLOGY, 7eInformation Technology IT: Computer technology hardware and software for processing and storing information and Communications technology voice and d

MANAGEMENT INFORMATION SYSTEMS

CHAPTER 1

MANAGING IT IN A DIGITAL WORLD

1

MANAGING INFORMATION TECHNOLOGY, 7e

Information Technology (IT):

Computer technology (hardware and software)

for processing and storing information

and

Communications technology (voice and data networks)

for transmitting information

MANAGING INFORMATION TECHNOLOGY, 7e

Part I

• Technologies available today and emerging technology trends for hardware, software, networks and data

Part II

• Software applications to support business operations and business intelligence, as well as e-business applications

Part III

• “Best practices” for acquiring and implementing new systems and managing IT projects

Part IV

• Planning and managing an IS department’s resources, as well as

managing information security; social/ethical/legal issues

MANAGING IT IN A DIGITAL WORLD

• IT has become more pervasive

- IT is not used only by back-office workers, but also front-line workers

- More and more employees are reliant upon IT for accomplishing their work activities

• Business managers, not just IT managers, are responsible for IT

investments and effective system utilization

• By the Year 2000, the total annual cost of IT purchases was more than half of the annual capital expenditures of businesses in

developed countries

• IT is linking emerging, developing and developed economies,

which can help “level” the economic playing field

RECENT INFORMATION TECHNOLOGY TRENDS

• Computer Hardware: Faster, Cheaper, Mobile

- Computers have become smaller and faster

- Hardware prices have dropped

- High growth in small, mobile devices for communications and

access to the Internet

Microc

ompute

rs (1970’s)

IBM Personal Compute

r (1981)

Personal Digital Assistants [PDAs]

introduced (early 1990s)

Laptop Compute

rs outsell desktops (2005)

Smart Phones introduc

ed (2007)

RECENT INFORMATION TECHNOLOGY TRENDS

• But it can be hard to predict long-term IT trends….

RECENT INFORMATION TECHNOLOGY TRENDS

• Computer Software: Integrated, Downloadable, Social

• Integrated

- Standardization has enabled more integration

- Many “standards” are just de facto standards (Microsoft

Windows, Office, Internet Explorer)

- Many companies have benefitted from “Enterprise Systems” investments (e.g., electronic health records in hospitals)

Enterprise Systems:

Software packages with integrated modules that pass common business transactions across groups, divisions, and geographic locations in “real time”

RECENT INFORMATION TECHNOLOGY TRENDS

• Computer Software: Integrated, Downloadable, Social

• Downloadable

- Bit-size software programs for smart phones downloadable from App stores

- Download speeds have increased so that even large files can

be downloaded by users

• Social

- Growth of Web 2.0 (social media) applications (such as Facebook, LinkedIn)

- Used by companies for marketing and branding activities

- Collaboration tools connect employees across distance

RECENT INFORMATION TECHNOLOGY TRENDS

• Computer Networks: High Bandwidth, Wireless and Cloudy

- High demand for high speed Internet access

- Wireless technologies to replace hardwired lines; support for

mobile devices anytime/anywhere

- Use of Internet to access remote hosts, data storage, and other IT capabilities from the “Cloud”

ARPANE

T created

(late

1960s)

Introducti

on of the World Wide Web (early 1990s)

Consumer high-speed Internet connections widely available (early 2000s)

Number of Internet users tops

1 billion (2005)

Wireless Internet access common in many locations (today)

NEW WAYS TO COMPETE

• New ways for businesses to use IT to compete on:

• Low Cost – Competing with other businesses by being a

low-cost producer for a good or a service

• Automating transaction time

• Shortening order cycle time

• Providing operational information for decision making

• Differentiation – Competing with other businesses by offering

products or services that customers prefer due to superiority in product innovativeness, quality or customer service

• Giving sales personnel information to better serve customers

• Providing just-in-time supplies for customers

• Creating new information-based products

• Allowing product customization by the consumer

• OR Both Low Cost and Differentiation, enabled by IT

NEW WAYS TO WORK

• New ways for people to work using IT:

• Telecommuters: Individuals who use mobile technology

and/or network connections to work remotely

• Pros

- Flexibility

- Work-life balance

• Cons

- Feelings of being isolated

- Concerns about job promotion opportunities

NEW WAYS TO WORK

• New ways for people to work using IT, continued:

• Virtual Teams: Geographically separated work teams

whose members communicate through the use of IT

• Pros

- Workers can be located anywhere

- Teams can be composed of members with specialized skills from different business units or companies

• Cons

NEW WAYS TO WORK

• New ways for people to work using IT, continued :

• Free Agents: Individuals who choose to contract out their

services and are not tied to an organization

• Pros

- Work may change more than when an employee of a single organization

• Cons

- Lack of benefits

- Unpredictability in scheduling and work

MANAGING IT IN ORGANIZATIONS

• Information Systems departments can vary greatly across

businesses, depending on the organization’s dependency on IT for:

• reliable & secure business operations and

• competitive advantage based on new technologies

Information Systems (IS) Department:

The organizational unit or department that has the primary

responsibility for managing IT

MANAGING IT IN ORGANIZATIONS

• Example: IS Organization in Support

Mode

- Low Need for New Information

Technology for competing

- Low Need for Reliable & Secure

Information Technology for business operations

- IT used mostly to support back-office support functions

Support

MANAGING IT IN ORGANIZATIONS

• Example: IS Organization in

Strategic Mode

- High Need for New Information

Technology for competitive advantage

- High Need for Reliable & Secure

Information Technology for business operations

- Strategically dependent on IT to enable new business strategies Strategic

MANAGING IT IN ORGANIZATIONS

• Three Types of IT Resources (Figure 1.1 – based on Ross et al.)

- Technology Infrastructure: Computers, software and networks

that enable an organization to conduct business and share

information across organizational units as well as business partners

- Human Resources: IT professionals and managers who have the

needed mix of technology, business and interpersonal skills to plan for, design and manage the other IT resources

- Business/IT Relationships: Established relationships between

business and IT workers to ensure that the other IT resources are

aligned with the business needs

IT LEADERSHIP ROLES

• IT leaders have to work closely with the senior managers o keep the company’s IT resources aligned with the business goals

• Two primary responsibilities:

• - Computer and communication operations

• - Acquiring and maintaining applications software

Chief Information Officer (CIO):

A firm’s high-level general IT manager with both technology

and business leadership experience Together with the

organization’s executive management team the CIO ensures the

alignment of IT resources with business goals and plans for

integration of IT for strategic advantage

• In many organizations, the senior IT leader is a CIO.

IT LEADERSHIP ROLES

• Example: IS Organization Chart