In this chapter, the following content will be discussed: The organizational environment, goals of new work environment, technology environment, simple model vs better model, framework of is management, case study.
Organizational Environment Lecture Today’s Topics The Organizational Environment n Goals of new work Environment n Technology Environment n Simple Model Vs Better Model n Framework of IS Management n Case Study n The Organizational Environment n The way IT is used depends on the environment surrounding the organization that uses it n Simultaneously, technological advances affect the way IT is used 1-3 The Organizational Environment cont n The External Organizational Environment ă IT allows information to move faster, thus increasing the speed at which events take place and the pace at which individuals and organizations respond to events ă The Internet Economy n B2C, B2B etc n IT is a major underpinning of the way the ‘old’ and ‘new’ worlds interface 1-4 The Organizational Environment cont n The External Organizational Environment cont ă Global Marketplace The entire world has become the marketplace n The Internet allows companies to work globally n Globalization is a ‘two way street’ n Internet allows small firms to have a global reach n Business environment is now global, but local tastes still matter n 1-5 The Organizational Environment cont n The External Organizational Environment cont ă Business Ecosystems ă Decapitalization Tangible items, such as capital, equipment and buildings were the tenets of power in the industrial age n Today = power of ‘intangibles’ such as ideas and knowledge n ă Managing talent = as important as e.g managing finance 1-6 The Organizational Environment cont n The External Organizational Environment cont ă Faster n Business Cycles Rely on IT ă Accountability n Rise and fall of dot-coms probably should have been expected ă n and Transparency Many business plans could not make $$$ Debacle in Telco and business shenanigans have shaken investor confidence ă ă Call for greater transparency of corporate operations and greater accountability of corporate officers IT will play a significant role in implementing the ensuing regulations and fostering transparency 1-7 The Organizational Environment cont n The External Organizational Environment cont n Rising Societal Risks of IT ă IT has negatively affected millions of people § Network shutdowns § Computer viruses § Identity theft § Email scams § Movement of white collar jobs offshore ă Led to increasing calls for Government regulation and for vendors and corporations to take action 1-8 The Organizational Environment cont The Internal Organizational Environment The work environment is also changing, and the art of managing people is undergoing significant shifts n ă From n Old ă ă n Supply-Push to Demand-Pull Companies did their best to figure out what customers wanted Organized to build a supply of products or services and then ‘push’ them out to end customers on stores shelves, in catalogs etc New (Internet) ă ă Allows much closer and ‘one-to-one’ contact between customer and seller Offer customers the components of a product/service then the customer creates their own version by ‘pulling’ what they want 1-9 The Organizational Environment cont n The Internal Organizational Environment cont ¨ Self- Service n ATMs = early example n 1990s saw an increase in systems that let consumers access corporate computer systems to: Learn about products ă Purchase products ă Inquire about orders ă Communicate and business with the firm ă n Now = heaps e.g FedEx parcel tracking 1-10 A Better Model 1-44 Case Example: MeadWestvaco Corporation 1-45 MeadWestvaco Corporation MeadWestvaco Corporation is an American packaging company based in Richmond, Virginia n It has approximately 23,000 employees In February 2006, it moved its corporate headquarters to Richmond, Virginia n In March 2008 the company announced a change by which it would use "MWV" as its brand; however the legal name of the company remains MeadWestvaco n Mead… In 1968, Mead entered the information technology sector by acquiring a small company called Data Corporation for $6 million, and renamed it Mead Data Central n Mead was originally interested in an inkjet printing system developed by Data n Mead n However, Data had also been working on a full-text information retrieval system for the U.S Air Force, and by 1967 had adapted this product to the task of indexing and searching legal precedent as part of an experiment with the Ohio State Bar Mead n After an Arthur D Little study indicated that the information retrieval product had a promising future, Mead Data Central launched it as the LEXIS legal research system in 1973 In December 1994, Mead sold the LexisNexis system to Reed Elsevier for $1.5 billion Case Example: MeadWestvaco Corporation 1-50 Case Example: MeadWestvaco Corporation 1-51 Case Example: MeadWestvaco Corporation 1-52 Case Example: MeadWestvaco Corporation 1-53 Case Example: MeadWestvaco Corporation 1-54 Case Example: MeadWestvaco Corporation 1-55 Case Example: MeadWestvaco Corporation 1-56 Case Example: MeadWestvaco Corporation 1-57 A ‘Final Thought’ (Summary) “It is not the strongest species that survive, nor the most intelligent, but the ones responsive to change” - Charles Darwin 1-58 ... global reach n Business environment is now global, but local tastes still matter n 1-5 The Organizational Environment cont n The External Organizational Environment cont ă Business Ecosystems ¨ Decapitalization... Topics The Organizational Environment n Goals of new work Environment n Technology Environment n Simple Model Vs Better Model n Framework of IS Management n Case Study n The Organizational Environment. .. managing finance 1-6 The Organizational Environment cont n The External Organizational Environment cont ă Faster n Business Cycles Rely on IT ¨ Accountability n Rise and fall of dot-coms probably