managing the digital firm - excelsoft technologies · 1.30 ©2002 by prentice hall & 2012...

AQU - Information Systems Fundamentals – Spring 2012

1.1© 2002 by Prentice Hall & 2012 Yacoub Sabatin

c h a p t e r

11111111MANAGING THEMANAGING THE

DIGITAL FIRMDIGITAL FIRM


• Analyze Role of Information Systems in

Business Environment

• Define Information System, Computer

Literacy, Information Systems Literacy

• Explain How Information Systems Transform

Organization & Management

*

LEARNING OBJECTIVES LEARNING OBJECTIVES 11//22



LEARNING OBJECTIVES LEARNING OBJECTIVES 22//22

• Assess Digital Firm, Electronic

Commerce, Electronic Business,

Internet Technology

• Identify Management Challenges to

Building, Using Information Systems

*


MANAGEMENT CHALLENGES MANAGEMENT CHALLENGES

11//33

• Why Information Systems?

• Contemporary Approaches to

Information Systems

• Role of Information Systems

• Using Information Systems

*




22//331. Design Competitive & Efficient Systems

2. Understand System Requirements of

Global Business Environment

3. Create Information Architecture that

Supports Organization’s Goals

*



33//334. Determine Business Value of

Information Systems

5. Design Systems People can Control,

Understand & Use in a Socially,

Ethically Responsible Manner

*



THE CHANGING BUSINESS THE CHANGING BUSINESS ENVIRONMENTENVIRONMENT

• GLOBALIZATION �

• INDUSTRIAL ECONOMIES �

• TRANSFORMATION OF

THE ENTERPRISE �

***


GLOBALIZATIONGLOBALIZATION

• MANAGEMENT & CONTROL

• COMPETITION IN WORLD MARKETS

• GLOBAL WORK GROUPS (Global Shift)

• GLOBAL DELIVERY SYSTEMS

(Suppliers

& Carriers are parts of your

extended enterprise)

*



INDUSTRIAL ECONOMIESINDUSTRIAL ECONOMIES

• KNOWLEDGE-BASED ECONOMIES

• PRODUCTIVITY

• NEW PRODUCTS & SERVICES

• KNOWLEDGE AS AN ASSET

• TIME-BASED COMPETITION

• SHORTER PRODUCT LIFE

• TURBULENT/FAST ENVIRONMENT

• LIMITED EMPLOYEE KNOWLEDGE BASE

*


TRANSFORMATION OF TRANSFORMATION OF

ENTERPRISEENTERPRISE

• FLATTENING (Horizontal Expansion)

• DECENTRALIZATION

• FLEXIBILITY

• LOCATION INDEPENDENCE

• LOW TRANSACTION COSTS

• EMPOWERMENT

• COLLABORATIVE WORK

(Location Irrelevant)

*



EMERGENCE OF THE EMERGENCE OF THE

DIGITAL FIRMDIGITAL FIRM

• DIGITALLY-ENABLED RELATIONSHIPS

WITH CUSTOMERS, SUPPLIERS,

EMPLOYEES

• CORE BUSINESS PROCESSES VIA

DIGITAL NETWORKS

• DIGITAL MANAGEMENT OF

KEY ASSETS

• RAPID SENSING &

RESPONDING TO CHANGE

*


0%

10%

20%

30%

40%

50%

60%

70%

YEAR

% SERVICE

% WHITE COLLAR

% BLUE COLLAR

% FARMING

LABOR FORCE COMPOSITION LABOR FORCE COMPOSITION 19001900--19971997



SYSTEMSYSTEM

INPUT OUTPUTPROCESS

FEEDBACK


FUNCTIONS OF AN INFORMATION SYSTEMFUNCTIONS OF AN INFORMATION SYSTEM

INPUT OUTPUTPROCESS

FEEDBACK

INFORMATION SYSTEMINFORMATION SYSTEM

ENVIRONMENTENVIRONMENT

Customers SuppliersCustomers Suppliers

Regulatory Stockholders CompetitorsRegulatory Stockholders CompetitorsAgenciesAgencies

ORGANIZATIONORGANIZATION



DATA & INFORMATIONDATA & INFORMATION

•• DATA:DATA: Streams of Raw Facts Representing Events such as Business

Transactions

•• INFORMATION:INFORMATION: Clusters of Facts Meaningful & Useful to Human Beings

In Processes Such as Making

Decisions

*


COMPUTERCOMPUTER--BASED BASED

INFORMATION SYSTEMS INFORMATION SYSTEMS (CBIS)(CBIS)

•• FORMAL SYSTEMSFORMAL SYSTEMS

•• FIXED DEFINITIONS OF DATA, FIXED DEFINITIONS OF DATA, PROCEDURESPROCEDURES

•• COLLECTING, STORING, COLLECTING, STORING, PROCESSING, DISSEMINATING (PROCESSING, DISSEMINATING (نشرنشر), ), USING DATAUSING DATA

**



INFORMATION SYSTEMSINFORMATION SYSTEMS

ORGANIZATIONSORGANIZATIONS TECHNOLOGYTECHNOLOGY

MANAGEMENTMANAGEMENT

INFORMATIONINFORMATION

SYSTEMSSYSTEMS


ORGANIZATIONS ORGANIZATIONS 11//22

•• PEOPLE:PEOPLE: Managers, knowledge workers, data workers, production or

service workers

•• STRUCTURE:STRUCTURE: Organization chart, groups of specialists, products,

geography

>>



ORGANIZATIONS ORGANIZATIONS 22//22

•• OPERATING PROCEDURES:OPERATING PROCEDURES: Standard Operating Procedures (SOP), rules for

action

•• POLITICS:POLITICS: Power to persuade, get things done

•• CULTURE:CULTURE: Customs of behavior

*


MAJOR MAJOR

BUSINESS FUNCTIONSBUSINESS FUNCTIONS

•• SALES & MARKETINGSALES & MARKETING

•• MANUFACTURINGMANUFACTURING

•• FINANCEFINANCE

•• ACCOUNTINGACCOUNTING

•• HUMAN RESOURCESHUMAN RESOURCES

**



COMPUTERCOMPUTER TECHNOLOGYTECHNOLOGY

•• HARDWAREHARDWARE

•• SOFTWARESOFTWARE

•• STORAGESTORAGE

•• COMMUNICATIONSCOMMUNICATIONS

•• NETWORKSNETWORKS

**


SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

APPROACHES TO INFO SYSTEMSAPPROACHES TO INFO SYSTEMS

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES



SOCIOTECHNICAL PERSPECTIVESOCIOTECHNICAL PERSPECTIVE

OPTIMIZE SYSTEM PERFORMANCE:OPTIMIZE SYSTEM PERFORMANCE:

TECHNOLOGY & ORGANIZATION

MUTUALLY ADJUST TO

ONE ANOTHER

UNTIL FIT IS SATISFACTORY

*

SOURCE: Liker, et al, 1987


SYSTEM INTERDEPENDENCESYSTEM INTERDEPENDENCE

BUSINESSBUSINESS

StrategyStrategy

RulesRules

ProceduresProcedures

ORGANIZATION ORGANIZATION INFORMATION SYSTEMINFORMATION SYSTEM

HARDWAREHARDWARE

SOFTWARESOFTWARE DATABASEDATABASE

TELETELE--COMMUNICATIONSCOMMUNICATIONS

INTERDEPENDENCEINTERDEPENDENCE



• 1950s: TECHNICAL CHANGES

• 60s-70s: MANAGERIAL CONTROL

• 80s-90s: INSTITUTIONAL CORE ACTIVITIES

GROWING IMPORTANCE

*

SCOPE OF INFO SYSTEMSSCOPE OF INFO SYSTEMS

(Historical Overview)(Historical Overview)


WHAT YOU CAN DO ON THE WHAT YOU CAN DO ON THE

INTERNETINTERNET

•• COMMUNICATE & COLLABORATECOMMUNICATE & COLLABORATE

•• ACCESS INFORMATIONACCESS INFORMATION

•• DISCUSSDISCUSS

•• OBTAIN INFORMATIONOBTAIN INFORMATION

•• ENTERTAINENTERTAIN

•• TRANSACT BUSINESS TRANSACT BUSINESS

**



NEW OPTIONS FOR NEW OPTIONS FOR

ORGANIZATIONAL DESIGNORGANIZATIONAL DESIGN

• FLATTENING ORGANIZATIONS

• SEPARATING WORK FROM LOCATION

• REORGANIZING WORK-FLOWS

• INCREASING FLEXIBILITY

• REDEFINING ORGANIZATIONAL

BOUNDARIES

*


THE DIGITAL FIRMTHE DIGITAL FIRM

•• ELECTRONIC COMMERCEELECTRONIC COMMERCE

•• ELECTRONIC BUSINESSELECTRONIC BUSINESS

•• ELECTRONIC MARKET: Information ELECTRONIC MARKET: Information system links buyers & sellers to system links buyers & sellers to exchange information, products, exchange information, products, services, paymentsservices, payments

**



ELECTRONIC COMMERCEELECTRONIC COMMERCE

•• Internet Links Buyers, SellersInternet Links Buyers, Sellers

•• Lowers Transaction CostsLowers Transaction Costs

•• Goods & Services Advertised, Bought, Goods & Services Advertised, Bought,

Exchanged WorldwideExchanged Worldwide

•• BusinessBusiness--toto--business Transactions business Transactions

IncreasingIncreasing

**


ELECTRONIC BUSINESSELECTRONIC BUSINESS

•• INTRANET:INTRANET: Business builds private, secure network

•• EE--MAIL, WEB DOCUMENTS, GROUP MAIL, WEB DOCUMENTS, GROUP SOFTWARE:SOFTWARE: Extends effective communication & control

•• EXTRANET:EXTRANET: Extension of Intranet to authorized external users

*

managing the digital firm - excelsoft technologies · 1.30 ©2002 by prentice hall & 2012...

Documents