Managing information systems 7th edition brow ch01

MANAGEMENT INFORMATION SYSTEMS CHAPTER MANAGING IT IN A DIGITAL WORLD Copyright © 2011 Pearson Education, Inc publishing as 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 Copyright © 2011 Pearson Education, Inc publishing as 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 Copyright © 2011 Pearson Education, Inc publishing as 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 Copyright © 2011 Pearson Education, Inc publishing as 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 Copyright © 2011 Pearson Education, Inc publishing as RECENT INFORMATION TECHNOLOGY TRENDS • But it can be hard to predict long-term IT trends… Copyright © 2011 Pearson Education, Inc publishing as 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” Copyright © 2011 Pearson Education, Inc publishing as 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 Copyright © 2011 Pearson Education, Inc publishing as 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” Copyright © 2011 Pearson Education, Inc publishing as 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 Copyright © 2011 Pearson Education, Inc publishing as 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 Copyright © 2011 Pearson Education, Inc publishing as 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 - Coordination across team members more difficult Copyright © 2011 Pearson Education, Inc publishing as 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 Copyright © 2011 Pearson Education, Inc publishing as MANAGING IT IN ORGANIZATIONS Information Systems (IS) Department: The organizational unit or department that has the primary responsibility for managing IT • 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 Copyright © 2011 Pearson Education, Inc publishing as 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 Copyright © 2011 Pearson Education, Inc publishing as 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 Copyright © 2011 Pearson Education, Inc publishing as 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 Copyright © 2011 Pearson Education, Inc publishing as IT LEADERSHIP ROLES • • IT leaders have to work closely with the senior managers o keep the In many organizations, the senior IT leader is a CIO company’s IT resources aligned with the business goals 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 • Two primary responsibilities: • - Computer and communication operations • - Acquiring and maintaining applications software Copyright © 2011 Pearson Education, Inc publishing as IT LEADERSHIP ROLES • Example: IS Organization Chart Copyright © 2011 Pearson Education, Inc publishing as [...]... - Lack of benefits - Unpredictability in scheduling and work Copyright © 2011 Pearson Education, Inc publishing as MANAGING IT IN ORGANIZATIONS Information Systems (IS) Department: The organizational unit or department that has the primary responsibility for managing IT • Information Systems departments can vary greatly across businesses, depending on the organization’s dependency on IT for: • reliable... 2011 Pearson Education, Inc publishing as 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 Copyright © 2011 Pearson Education, Inc publishing as MANAGING IT IN ORGANIZATIONS • Example: IS... 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 Copyright © 2011 Pearson Education, Inc publishing as MANAGING IT IN ORGANIZATIONS • Three Types of IT Resources (Figure 1.1 – based... 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,... LEADERSHIP ROLES • • IT leaders have to work closely with the senior managers o keep the In many organizations, the senior IT leader is a CIO company’s IT resources aligned with the business goals 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