CHAPTER 1

The Modern Organization Functioning in a Global Environment

CHAPTER OUTLINE

1.1 Business Processes and Business Process Management

1.2 Information Systems: Concepts and Definitions

1.3 The Global, Web-Based Platform

1.4 Business Pressures, Organizational Responses, and IT Support

1.5 Why Are Information Systems Important to You?

1.6 The Plan of the Book

LEARNING OBJECTIVES

Describe business processes and discuss business process management

Differentiate among data, information, and knowledge

Differentiate between information technology infrastructure and information technology architecture

LEARNING OBJECTIVES (continued) Describe the global business environment

and the new information technology infrastructure

Discuss the relationships among business pressures, organizational responses, and information systems

Chapter Opening Case

Moai on Rapa Nui

Homo Conexus

You are the most connected generation in history

You practice continuous computing You are surrounded by a personal, movable

information network

Personal movable information network

And…..laptop in briefcase!

1.1 Business Processes

Business Process

Business Process Management

Example of Business Process (Figure 1.1)

The next slide shows an example of a business process: Ordering an E-ticket from an airline Web site

Notify TravelerNotify Traveler

Receive Ticket Order

Receive Ticket Order

Reserve SeatsReserve Seats

Charge Credit CardCharge Credit Card

Confirm Flight(s)Confirm Flight(s)

Issue e-TicketIssue e-Ticket

Plan TripPlan Trip

Check FlightsCheck Flights

Submit Ticket OrderSubmit Ticket Order

Receive e-TicketReceive e-Ticket

Seats Available

Seats Available

Use Credit Card?

Use Credit Card?

Charge OK?

Charge OK?

Seats Available

?

Seats Available

?

Notify TravelerNotify Traveler

Frequent Flyer

Mileage Sufficient?

Frequent Flyer

Mileage Sufficient?

Subtract MileageSubtract Mileage

NO

YES

NO

YES

NO

YES

NO

YES

Traveler Airline Web Site

YES

NO

1.2 Information Systems:Concepts and Definitions

Data Item

Information

Knowledge

DataInformation Knowledge

Wisdom

Next?

Information Systems: Concepts and Definitions (continued)

Information Technology Architecture

Information Technology Infrastructure

IT Architecture of Online Travel Agency

IT Components, IT Platform, IT Services, and IT Infrastructure

1.3 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

The Stages of Globalization (From Thomas Friedman in 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)

Globalization 1.0

Christopher Columbus

Globalization 2.0 (first half)

Steam engine

Railroads

Globalization 2.0 (second half)

OpenMoko open source smart phone

Satellites

Netbook

Fiber optics

Globalization 3.0

1.0

2.0

3.0

Globalization 3.0 (continued)

Schematic Map of the Internet

Thomas Friedman’s Ten Flatteners

Fall of the Berlin Wall Netscape goes public Development of work-flow software Uploading Outsourcing Offshoring Supply Chaining Insourcing Informing The Steroids

Fall of the Berlin Wall

Rise of the European Union (a consequence of the Fall of the Berlin Wall)

Netscape Goes Public

Marc Andreessen (wrote Mosaic browser and Netscape browser)

Workflow Software

Uploading

The Open Source Movement (essential ingredient of uploading)

Linux

Apache Web server

The Open Source Movement (continued)

Mozilla

Firefox

Thunderbird

The SeaMonkey Project

Formerly the Mozilla Application Suite

Outsourcing

Outsourcing gained momentum and “took off” with Year 2000 (Y2K) problem

Offshoring

Call center in India

Supply Chaining

Insourcing

Informing

It’s not just

There are MANY other interesting search engines as we see in Chapter 5

The Steroids

Digital Mobile Virtual Personal

First Steroid: Computing (processing)

TO

Charles Babbage’s Difference Engine (1822)

Ultramobile personal computer

Computing (continued – storage)

TO

First disk storage unit by IBM (1956)Capacity: 5 megabytesSize: Refrigerator

Sony Micro Vault Thumb DriveCapacity: 2 gigabytes

Second Steroid: Instant Messaging and File Sharing

Instant messaging (example)

File sharing (example)

Third Steroid: Voice over Internet Protocol

Fourth Steroid: Videoconferencing

A telepresence system in a conference room

Videoconferencing (continued)

An individual telepresence system

Videoconferencing and Medicine

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

Fifth Steroid: Computer Graphics

Sixth Steroid: Wireless Technologies

Using cell phone in motion

Geostationary satellite

Bluetooth phone sunglasses

The Great Convergence

We are in a convergence of three powerful, technological forces: (1) Cheap and ubiquitous computing devices (2) Low-cost, high bandwidth (3) Open standards

The Great Convergence (continued)

In essence, we have computing everywhere and anywhere, anytime and all the time, with access to limitless amounts of information, services, and entertainment.

The Great Convergence (continued)

We have the creation of a global, Web-enabled playing field that allows for multiple forms of collaboration – the sharing of knowledge and work – in real time, without regard to geography, distance, or, in the near future, even language. 

The field now includes some 3 billion new people, formerly digitally disenfranchised.

And the result of all this?

See the Power of Technology

1.4 Business Pressures, Organizational Responses, and IT Support

Business Pressures Market Pressures Technology Pressures Societal Pressures

Business Pressures, Organizational Responses, and IT Support

Market Pressures

The Global Economy and

Strong Competition

The Changing Nature of the Workforce

Powerful Customers

Technology Pressures

Technological Innovation and Obsolescence Information Overload

Technological Innovation and Obsolescence

Innovation: Early calculator

Obsolescence: Slide Rule

Technological Innovation and Obsolescence (continued)

Innovation: Telegraph

Obsolescence: Pony Express

Technological Innovation and Obsolescence (continued)

Obsolescence: old phonographInnovation: iPod nano

Technological Innovation and Obsolescence (continued)

Innovation: digital camera

Innovation: “Credit card” digital camera

Obsolescence: old analog camera

Technological Innovation and Obsolescence (continued)

Innovation: Ford Model T

Obsolescence: Horse and Buggy

Technological Innovation and Obsolescence (continued)

Innovation: Notebook computer with word processing software

Obsolescence: Manual typewriter

Information Overload

Societal Pressures

Social Responsibility Government Regulation and Deregulation Protection Against Terrorist Attacks Ethical Issues

Green IT

See CBS video on disposal of e-waste

Social Responsibility

One Laptop per Child initiative

Social Responsibility (continued)

Internet over satellite in developing nations

Social Responsibility (continued)

Bridging the Digital Divide

Social Responsibility (continued)

Youth Computer Club in Cuba

Social Responsibility (continued)

Cuban Youth Computer Club mobile unit

Microlenders (IT’s About Business 1.2)

Organizational Responses

Strategic Systems Customer Focus Make-to-Order and mass customization

See Reebok See Bodymetrics video

E-business and E-commerce

1.5 Why Are Information Systems Important to You?

Information systems and information technologies are integral to your lives

Information systems offer career opportunities

Information systems are used by all functional areas in an organization

Build Your Own Multinational (IT’s About Business 1.4)

Misinformation about Information Systems Career Opportunities

Myth #1: There are no computing jobs. Myth #2: There will be no IT jobs when I

graduate. Myth #3: All IT-related jobs are moving

offshore. Myth #4: IT salaries are lower due to cheap

overseas labor.

1.6 The Plan of This Book

The major objective of this book is to help you understand the roles of information technologies in today’s digital organizations.

The book is designed to help you think strategically about information systems

The book demonstrates how IT supports all of the functional areas of the organization

Each chapter introduces a major topic in Information Technology

Chapter Closing Case

The Blur XC Carbon