CHAPTER 1

1. CHAPTER 1 The Modern Organization in the Global, Web-Based Environment How the internet supports today’s business.

2. Learning Objectives • Differentiate among data, information, and knowledge. • Distinguish between information technology infrastructure and information technology architecture. • Discuss the relationships among business pressures, organizational responses, and the role of information systems.

3. Chapter Outline 1.1 Information Systems: Concepts and Definitions 1.2 The Global, Web-Based Platform 1.3 Business Pressures, Organizational Responses, and IT Support 1.4 Why Are Information Systems Important to You? 1.5 The Plan of the Book

4. Chapter Opening Case P. 4 Google servers in a server farm Google Headquarters

5. Today we are … • The most connected generation in history. • Practicing continuous computing. • Surrounded by a personal, movable information network. • Our personal information network is created by constant cooperation between: • the digital devices we carry; • the wired and wireless networks that we access as we move about; • Web-based tools for finding information and communicating and collaborating with other people. • We can pull information from the Web and push ideas back to the Web.

6. 1.1 Information Systems: Concepts and Definitions • Data Item • Elementary description of things, events, activities and transactions that are recorded, classified and stored but are not organized to convey any specific meaning. • Information • Data organized so that they have meaning and value to the recipient. • Knowledge • Data and/or information organized and processed to convey understanding, experience, accumulated learning and expertise as they apply to a current problem or activity.

7. 1.1 Information Systems: Concepts and Definitions • Information Technology Architecture. • A high-level map or plan of the information assets in an organization, which guides current operations and is a blueprint for future directions. • Information Technology Infrastructure. • The physical facilities, IT components, IT services and IT personnel that support an entire organization.

8. IT Architecture Example: Online Travel Agency

9. 1.1 Information Systems: Concepts and Definitions • IT components • consist of hardware, software, telecommunications and networks, and wireless communications. • IT components are basically synonymous with the IT platform. • IT services • consist of data management, managing security and risk, and systems development. • IT personnel use IT components to produce IT services.

10. 1.2 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.

11. The Internet

12. IT Components, Services, Platform, and Infrastructure

13. The Stages of Globalization (From Thomas Friedman’s 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) 3.0 2.0 1.0

14. Globalization 1.0 • 1492 to 1800 • World went from large to medium-size. • All about countries the amount of muscle, horsepower, steam power, etc that they could deploy. • Key agents of change: brawn and horsepower. Christopher Columbus

15. Globalization 2.0 (first half) • 1800 – 2000 • Global integration during the first half of Globalization 2.0 was driven by falling transportation costs. • steam engine • railroads Steam engine Railroads

16. Globalization 2.0 (second half) • Global integration during the second half of Globalization 2.0 was driven by falling communications costs. • satellites, • fiber optics, • personal computer, and • wireless smart phones Fiber optics Satellites

17. Globalization 3.0 Key agent of change: Software, in conjunction with the global internet enabling people to collaborate and compete globally. 3.0 2.0 1.0 2000 to the present. Driven by the convergence of ten forces (flatteners). Result: emergence of a global, web-based platform.

18. Globalization 3.0 (continued) Schematic Map of the Internet

19. 1 - Fall of the Berlin Wall November 9, 1989 Free market economies of Eastern Europe (1991) and Rise of the European Union.

20. 2 - Netscape Goes Public • August 9, 1995 Marc Andreessen (wrote Mosaic browser and Netscape browser)

21. 3 - Workflow Software • Enables computer applications to interoperate or communicate and work with one another without human intervention. • Standards such as Extensible Markup Language (XML) enable workflow communication.

22. 4 - Uploading • Anyone can create and upload content to the web. • Shift from static, passive approach to media to an active participatory approach. • The Open Source Movement: an essential ingredient of uploading.

23. The Open Source Movement Linux Firefox Mozilla Thunderbird

24. 5 - Outsourcing • Involves taking a specific function that a company was doing itself, having another company perform that same function and then integrating their work back into the original company. • Outsourcing gained momentum and “took off” with Year 2000 (Y2K) problem.

25. 6 - Offshoring • Occurs when a company moves an entire operation, or certain tasks to another country. • The operation and/or activities are performed the same way, but with cheaper labor, lower taxes, fewer benefits, etc. Call center in India

26. 7 - Supply Chaining • Occurs when companies, their suppliers, and their customers collaborate and share information. • Requires common standards so each segment of the chain can efficiently interface/communicate.

27. 8 - Insourcing • Delegates operations or jobs within a business to another company, which specializes in those operations. • Example: Dell hires FedEx to analyze Dell’s shipping process and then “take over” that process. FedEx employees work inside Dell but remain employed by Fed Ex.

28. 9 - Informing • Ability to search for information (e.g., search engines). • Facilitates the formation of global communities. • There are MANY other interesting search engines as we see in Chapter 5

29. 10 - The IT Steroids • The IT Steroids amplify the other flatteners. • They enable all forms of computing and collaboration to be digital, mobile, virtual, and personal. • Digital • All analog content and processes are being digitized. • Mobile • Thanks to wireless technologies, computing, connecting, collaborating can be done anywhere. • Virtual • The process of shaping, manipulating, and transmitting digitized content can be done at very high speeds, so that users do not have to think about these processes. • Personal • Individuals can perform all the virtual processes on their own computing devices.

30. The IT Steroids • Computing-Processing • Computing-Storage • Instant Messaging and File Sharing • Wireless Technologies • Voice over Internet Protocol • Videoconferencing • Computer Graphics

31. Computing - Processing TO Ultramobile personal computer Charles Babbage’s Difference Engine (1822)

32. Computing - Storage TO Sony Micro Vault Thumb Drive Capacity: 2 gigabytes First disk storage unit by IBM (1956) Capacity: 5 megabytes Size: Refrigerator

33. Instant Messaging and File Sharing Instant messaging (example) File sharing (example)

34. Wireless Technologies Using cell phone in motion Geostationary satellite Bluetooth phone sunglasses

35. Voice over Internet Protocol

36. Videoconferencing An individual telepresence system A telepresence system in a conference room

37. Videoconferencing and Medicine New Zealand used Polycom, a leading vendor of telepresence systems, to provide a telemedicine application for children.

38. Computer Graphics

39. 1.3 Business Pressures, Organizational Responses, and IT Support • Business Pressures • The business environment is the combination of social, legal, economic, physical, and political factors that affect business activities. • Significant changes in any of these factor are likely to create business pressure on the organization. • The three types of business pressures faced are: • Market Pressures • Technology Pressures • Societal Pressures

40. Market Pressures • The Global Economy and Strong Competition • European Union • NAFTA • Labor Costs • The Changing Nature of the Workforce • Diversified • Telecommuting • Powerful Customers • Sophisticated • Knowledgeable • Customer RelationshipManagement (CRM)

41. Technology Pressures • Information Overload • Amount of information on the internet doubles approximately every year. • Technological Innovation and Obsolescence • Today’s state-of-the-art products may be obsolete tomorrow. e.g., CRT monitors vs LCD monitors

42. Technological Innovation and Obsolescence Obsolescence: Slide Rule Innovation: Early calculator

43. Technological Innovation and Obsolescence (continued) Innovation: Telegraph Obsolescence: Pony Express

44. Technological Innovation and Obsolescence (continued) Innovation: iPod nano Obsolescence: old phonograph

45. Technological Innovation and Obsolescence (continued) Innovation: digital camera Innovation: “Credit card” digital camera Obsolescence: old analog camera

46. Technological Innovation and Obsolescence (continued) Obsolescence: Horse and Buggy Innovation: Ford Model T

47. Technological Innovation and Obsolescence (continued) Obsolescence: Manual typewriter Innovation: Notebook computer with word processing software

48. Societal Pressures-The Third Category Of Business Pressures • Social Responsibility • Digital devide – gap between those who have access to IT and those who do not. • Government Regulation and Deregulation • Sarbanes –Oxley, Health Insurance Portability and Accountability Act (HIPAA) • Protection Against Terrorist Attacks • Dept of Homeland Security – US-VISIT • Ethical Issues • China Olympics and foreign press access to internet • Newspapers/governments editing photographs

49. Social Responsibility One Laptop per Child initiative

50. Social Responsibility (continued) Internet over satellite in developing nations